Adani group plans $100 billion capex over next decade to expand businesses

The Adani group is planning to make investments of the order of $100 billion in the next decade across its businesses to scale up capacities, with a major portion of the outlays on energy transition projects, green energy components and digital infrastructure.

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Companies in the group were hosted for investor meetings by Jefferies in Ahmedabad.

The group’s leverage was in the best position in many years and there was no refinancing risk at the group level, the management said at the meetings.

The group has a big play in digital infrastructure planned and is looking to capitalise on the 350 million user base on its core infrastructure platform.

Green hydrogen

The flagship and incubating company Adani Enterprises will be gradually rolling out the green hydrogen ecosystem, which will be the group’s most capex-heavy venture. A test facility is also being set up and for the first 20 GW of green hydrogen production it has already identified land in Kutch. The company is also planning to bid for more airports under the central government’s airport privatisation plan.

• Also read: Adani Group plans $100 billion investment in energy transition

In the case of Adani Cement, comprising Ambuja Cements and its subsidiary ACC, the management indicated that the expansion timelines were on track to reach 140 million tonnes per annum (mtpa) by FY28 and to achieve an EBITDA of ₹1,500 per tonne. It has acquired a number of cement companies and was looking to consolidate them all under one head in the medium term.

Adani Energy Solutions would be commissioning its under-construction transmission assets by FY26. The company had a 16 per cent market share competitive bids in the sector where the management indicated a ₹1.1-lakh crore bid pipeline in 12-15 months. The company is focusing on renewable energy mix to manage tariffs. It was executing smart meter projects worth ₹27,000 crore and guided for ₹1,000-2,000 crore capex in this segment. Overall, the company plans to spend ₹6,000 crore in FY25.

Adani Green, with an installed capacity of 10.9 GW in March 2024, has another 11 GW projects under execution. It would add 6-8 GW annually to reach 50 GW by FY30. It is  developing 30-GW renewable energy projects in Khavda  of which 2 GW has been commissioned.