The group had previously guided a $100 billion capex over the next 7-10 yrs. Most of this investment is going to go into group fast growing businesses — airports, renewable and green hydrogen.
Adani Group is gearing up to invest more than Rs 1.2 lakh crore (approximately USD 14 billion) across a diverse range of sectors including ports, energy, airports, commodities, cement, and media in the fiscal year commencing 1 April. This strategic move reinforces the company’s commitment to doubling down on its USD 100 billion investment vision over the next 7-10 years, sources indicate. The projected capital expenditure for the 2024-25 (April 2024 to March 2025) fiscal year marks a substantial 40% increase compared to estimates for FY24.
Analysts estimate that the portfolio incurred approximately USD 10 billion in capital expenditures during FY24, which concludes on March 31. Sources suggest that these investments will pave the way for significant profit expansion. Previously, the group outlined a USD 100 billion capital expenditure plan over the next 7-10 years, with a focus on its rapidly growing sectors: renewable energy, green hydrogen, and airports. A substantial 70% of the planned capital expenditure will be directed towards the group’s green portfolio, primarily targeting renewable power, green hydrogen, and green infrastructure development. The remaining 30% will be allocated to further bolster the group’s airports and ports businesses.
During the calendar year 2023, the portfolio achieved a robust USD 9.5 billion EBITDA, marking a significant 34.4% year-on-year increase. Additionally, the net debt exhibited a 4% reduction from March 2023 to September 2023, with balance sheet figures being disclosed semi-annually. In the December quarter, Adani’s portfolio witnessed remarkable EBITDA growth of 63.6%, elevating its 12-month EBITDA to a record-breaking high of USD 9.5 billion (equivalent to Rs 78,823 crore) for the year 2023.
Increasing cash flows from fast-growing profits have set the stage for mega-scale investments, sources said. Its net debt to EBITDA at the end of September was 2.5x, which is expected to decline by the end of FY24, sources said. In a media statement released in February, the group said increasing cash flows from strong growth and robust credit profile has set the stage for unrivalled ‘Green Investment’.
A school drop-out, group chairman Gautam Adani started as a commodities trader and rose to become Asia’s richest person with an empire spanning across ports, power generation, airports, mining, renewables, gas, data centres, media and cement.
Today, Adani Group is the world’s second-largest solar power company, it is the largest airport operator with 25% of passenger traffic and 40% of air cargo, the largest ports and logistics company with 30% of national market share, the largest integrated energy player, and the country’s second largest cement manufacturer.
India’s largest infrastructure conglomerate with showcase projects like Navi Mumbai Airport, Ganga Expressway, the world’s largest renewable park at Khavda in Gujarat and Mundra Port has committed a $100 billion investment over the next 7-10 years. This investment will play a pivotal role in transforming India’s energy and transportation landscape.
Sources said with a strong emphasis on green energy transition, it will be allocating more than 70% of this $100 billion to its green businesses including renewable power, green hydrogen, and green evacuation transmission lines. The conglomerate is building the world’s largest renewable park at Khavda, Gujarat, spanning over 530 square kilometres – an area five times the size of the city of Paris.
A large portion of total investments is earmarked for expansion and development of its fast-growing airports business and ports business, they said. With a portfolio boasting eight airports including the upcoming Navi Mumbai airport and 14 domestic ports, Adani wants to further solidify its presence in these sectors.