Mumbai, March 8
Adani Enterprises, the flagship company of the Gautam Adani-controlled Adani Group, will make capital expenditure of more than ₹55,000 crore over the next few years in new energy, airport and road sectors.
Adani Enterprises (AEL) which defines itself as an ‘incubator on establishing diverse new businesses’ has four verticals – Resources, Transport and Logistics, Utility and Strategic – which also houses mining, rail and metro, water, data centre, edible oil and food.
The road segment, which is part of the company’s Transport and Logistics vertical, will see the maximum capex outlay over the next 5-6 years. “In terms of overall capex to 2027, for the next five to six years, is approximately ₹34,000 crore,” Robbie Singh, Chief Financial Officer, Adani Enterprises, said in an earning call.
The company has the largest share of the Phase 1 (594 km) of the six-lane greenfield Ganga Expressway from Meerut to Prayagraj. Adani Enterprises received the letter of acceptance of ₹17,100 crore for construction and maintenance of 464 km of the expressway project. AEL’s current portfolio comprises 13 road projects of more than 950 km with a majority of them in Uttar Pradesh.
Next in line is Adani New Industries (ANIL), the newly formed company engaged in new energy business. This is the second entity from the Adani Group, after the listed company Adani Green Energy, to venture into renewable energy business.
ANIL which focuses on generation of green hydrogen, including downstream products, green electricity generation, manufacture of electrolyzers and wind turbines, will witness a capex of around ₹20,000 crore. This investment will be part of the $50 billion investment announced by the group in green energy that would be made in the next 9-10 years.
“The total capex on manufacturing the ecosystem (for Adani New Industries) that we plan to have, will be approximately $2.4 billion which is somewhere around ₹18,000 crore to ₹20,000 crore depending upon the various ancillaries that develop,” Singh added.
As per disclosures made by Adani Enterprises, ANIL will focus on decarbonization of industry and mobility through generation of its own green power. “…and it will be end to end, from key components like electrolyzer etc., all the way to products like green ammonia, methane, green urea etc., and in between green hydrogen,” Singh added.
The airport business of AEL will see infusion of at least Rs 14,000 crore over the next three years. With eight airports under its wing, AEL took over Guwahati, Jaipur and Thiruvnanthapuram airports in the recently concluded quarter of December, 2021.
“Capex for the Navi Mumbai airport and other airports over the next three years will be approximately Rs 14,000 crore. We had a capex of Rs 6,000 crore this year (in the airport business),” Singh added.
According to AEL, passenger traffic at airports managed by it are now at 67 per cent of the pre-Covid numbers. The company expects the domestic traffic to recover fully this year.
“Once recovery from Covid is complete post 2023, we will have about 80 million passengers at our airports. We will also have about 200 million non-passengers to visit our airports, so it is a very large consumer platform,” Singh added.