Adani Power

Gautam Adani Group to invest $150 billion in pursuit of $1 trillion valuation | Rare Techy


Gautam Adani Group will invest more than $150 billion across businesses ranging from green energy to data centers as it chases the dream of joining the elite global club of companies with valuations of $1 trillion, according to a report by news agency PTI.

Recently, Adani Group Chief Financial Officer Jugeshinder ‘Robbie’ Singh revealed details of the group’s growth plans, which started as a trader in 1988 and quickly expanded into ports, airports, roads, electricity, renewable energy, power transmission, gas distribution , and FMCG and more recently into data centers, airports, petrochemicals, cement, and media, in an investor meeting organized by Ventura Securities Ltd in New Delhi.

Adani Group plans to invest $50-70 billion in green hydrogen business and $23 billion in green energy over the next 5-10 years, the CFO said.

He added, investing $7 billion in electricity transmission, $12 billion in the transport utility sector, and $5 billion in the road sector respectively.

The Group’s data center business and cloud services will require an investment of $6.5 billion in partnership with Edge ConneX and another $9-10 billion is planned for the airport. His foray into the cement sector with the acquisition of ACC and Ambuja cement required an investment of $10 billion. It is foraying into the petrochemical business and plans to set up a 1 million ton per annum PVC manufacturing facility in an investment of $2 billion and will enter the copper sector with 0.5 million tons of smelter a year in an investment of $1 billion, he said. . The healthcare sector which will include insurance, hospitals, and diagnostics and pharmaceuticals will see an investment of $7-10 billion, with some coming from the Adani Foundation.

“Whatever you see now, it may seem that it just happened in the last one or two years, but the fact is what we are doing, both GSA (Gautam Shantilal Adani) and myself discussed this in 2015,” said Singh at investors. The conglomerate increase meeting is the result of a well-thought-out business plan that entailed foraying into existing business adjacencies.

Recently, the Bloomberg news agency reported that Asia’s richest man could collect at least $10 billion in new debt next year as his conglomerate seeks to refinance loans and finance expensive projects.

Citing sources, the report said the conglomerate is confident of securing low-cost loans due to its large asset base now.

Last week, Adani Group agreed to acquire Air Works, one of India’s main centers for maintenance, repair, and overhaul (MRO) of aircraft.

The group is also in advanced talks with debt-laden Jaiprakash Power Ventures Ltd to buy its cement unit. The group has bought Ambuja Cements Ltd and ACC Ltd.

Adani Group’s market capitalization was around $16 billion in 2015 and, has grown to $260 billion by 2022 – an increase of more than 16x in seven years.

“Given what we had as a set of companies, we believe that if we have assets and companies of the type that we should really become a $1 trillion group. So we go through the steps that we need to take to the point,” Robbie Adani Group added.

Globally, only a few companies are worth a trillion dollars or more. These include Apple, Saudi Aramco, Microsoft, Google parent Alphabet, and Amazon. Singh said the Adani Group has set out to build its infrastructure and logistics portfolio in such a way that it can emerge as a top five globally and not just the largest player in India.

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