Ahmedabad, June 25 – Adani Group intends to invest approximately Rs 1.3 lakh crore across its portfolio companies in the current fiscal year as part of its commitment to expand businesses and achieve its USD 100 billion investment goal over the next 7-10 years, stated group CFO Jugeshinder ‘Robbie’ Singh on Tuesday.
The investment will encompass a wide spectrum of sectors including ports, energy, airports, commodities, cement, and media. Singh mentioned that 70 per cent of this investment will be financed through internal cash generation, with the remaining 30 per cent through debt. Additionally, the group plans to refinance USD 3-4 billion of maturing debt and raise USD 1 billion in project financing. An annual equity infusion of USD 2-2.5 billion by attracting new investors is also anticipated.
“This year will primarily focus on completing existing assets,” Singh emphasized. Adani Green is set to complete 6-7 GW of renewable energy projects, alongside scaling up its solar wafer manufacturing unit. Furthermore, the construction of the new Mumbai airport will also be finalized.
The projected capital expenditure for the fiscal year 2024-25 represents a 40 per cent increase compared to the previous fiscal year. The group had previously outlined a USD 100 billion capex plan over the next decade, with a significant portion directed towards renewable energy, green hydrogen, airports, and infrastructure.
Over 70 per cent of the planned capex will be allocated to green initiatives such as renewable power, green hydrogen, and green evacuation transmission lines. The remainder will largely support the expansion of airports and ports businesses.
Singh highlighted that Adani Group’s companies achieved a remarkable 45 per cent increase in pre-tax profit (EBITDA) to Rs 82,917 crore (approximately USD 10 billion) in FY24. Despite challenges including a critical report from a US short seller, the group focused on debt containment, reducing founder share pledges, and consolidating its core businesses, achieving a five-year CAGR of 54 per cent in profit growth.
Gautam Adani, the group chairman who started his journey as a commodities trader, has expanded the conglomerate into a global powerhouse spanning ports, power generation, airports, mining, renewables, gas, data centers, media, and cement. Adani Group is now the world’s second-largest solar power company, largest airport operator by passenger traffic, and a dominant player in ports, logistics, integrated energy, and cement sectors in India.
With a strong commitment to green energy, Adani Group is earmarking a substantial portion of its USD 100 billion investment for green initiatives, including the development of the world’s largest renewable park in Khavda, Gujarat, covering an area five times the size of Paris.
The conglomerate aims to bolster its airports business, which includes eight airports currently and the upcoming Navi Mumbai airport, as well as expand its presence in the ports sector with 14 domestic ports nationwide.
