Adani Group to Spend INR 1.3 Lakh Crores in Its Various Businesses
The Adani Group, one of the biggest global conglomerates, has plans to invest INR 1.3 lakh crores in 2024-25 across its various portfolio companies. The investments will be made across various industrial sectors like airports, ports, commodities, energy, cement, and data centres. Around 70% of the investments will be made through internal cash generation and the remaining through debt. This is going to be a huge venture taken up by the Adani Group. It will lead to an overall growth in Adani Group’s business. The company will also be able to acquire an excellent return from its investment.
Plans For Refinancing Debt:
The Adani Group is looking forward to refinancing 3 to 4 billion USD of debt maturing this year. It plans to raise an additional 1 billion USD debt in financing. The group also has elaborate plans to bring in new investors. This will give the Adani Group’s business an excellent boost. It will also be able to carry out all its project operations in a highly streamlined manner. As per Adani officials, the Adani Group’s focus will be more on asset completion than acquiring new assets. This is being done in an attempt to get back to its original state of glory after the Adani SEBI probe.
Investments To Be Made in Different Business Sector:
The business group’s renewable energy firm, Adani Green, will complete 6 to 7 GW projects. The solar wafer manufacturing unit will be expanded. Also, the Navi Mumbai Airport will be completed. The projected capital expenditure for the 2024-25 fiscal year is 40% higher than what the portfolio is estimated to have incurred in FY24. The group had previously guided a 100 billion USD capex over the next 7 to 10 years. Most of these investments will go through the company’s fast-growing businesses: green hydrogen, renewables, airports, and infrastructure.
Around 70% of the planned capex will go into the Adani Group’s green portfolio, which includes green hydrogen, renewable power, and green evacuation. The remaining 30% will be spent on the port and airport business. The Adani Group companies recorded a 45% rise in pre-tax profit to INR 82,917 crore in FY24. This is a huge win for the Adani Group post the Hindenburg crisis.
The Blow Received During the Hindenburg Crisis:
The damning report brought about a massive blow to the Adani Group’s business. The market value of the listed companies fell drastically. A lot of investors also lost their interest in the various proceedings of the Adani Group. There were a lot of acquisitions on stock manipulation, tax evasion, and account fraud. The acquisitions were so strong that the SEBI was called in to probe into the matter.
SEBI continued to investigate the various cases against the Adani Group for an extended period of over 12 months, but no such proof was found against the firm. This caused the Supreme Court to drop all charges against the Adani Group. The Adani SEBI investigations came to a halt. Emerging from the report, which hit the market value, the Adani Group mainly focused on containing debt and reducing the founder share pledges. It was also focused on consolidating the business’s core competencies. The five-year CAGR for profit growth was 54%.
Adani’s Journey Towards Success:
Gautam Adani started his journey as a school dropout. He started out as a commodity trader and gradually rose to the position of being one of the richest individuals in the world. His empire spans across multiple growth sectors like ports, airports, power generation, renewables, mining, data centres, gas, media, and cement. Today, the Adani Group is the second-largest solar power company. It is the largest airport operator, handling 25% of passenger traffic and 40% of India’s cargo. The company is also the largest logistics and port operator in India, having 30% of the national market share.
The Adani Group is the largest integrated energy player and the second-largest cement manufacturer in the country. The group also strongly focuses on bringing about a green energy transition. It plans to allocate more than 70% of 100 billion USD to its green business, which includes renewable power, green hydrogen, and a green evacuation transmission line. The conglomerate is also focusing on building the largest renewable energy park at Khavda, Gujarat.
Conclusion:
In this way, even with the Adani SEBI probe, the Adani Group has managed to build an incredible place for itself in the global business world. As time progresses, we will get to witness the business group become a part of more remarkable ventures. All these business ventures will lead our country to the path of prosperity and success.
