Gautam Adani’s group to invest $150 billion in pursuit of $1 trillion valuation

Recently, Adani Group Chief Financial Officer Jugeshinder ‘Robby’ Singh detailed the development plans of the group, which started as a trader in 1988 and covered ports, airports, roads, power, renewable energy, power Transmission, gas distribution expanded rapidly. and FMCG and recently in data centres, airports, petrochemicals, cement and media at an investor meet organized by Ventura Securities Ltd. in New Delhi.

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

He said an investment of $7 billion would be for power transmission, $12 billion for the transport utility sector and $5 billion in the road sector.

The group’s data center business with cloud services will see an investment of $6.5 billion in partnership with Edge ConEx and another $9-10 billion is planned for airports. Its foray into the cement sector with the acquisition of ACC and Ambuja Cement brought in a $10 billion investment. He said it is entering the petrochemical business with plans to set up a 1 million tonne per annum PVC manufacturing facility at an investment of $2 billion and will enter the copper sector with a 0.5 million tonne per annum smelter at an investment of $1 billion. . , The healthcare sector, which will include insurance, hospitals and diagnostic and pharma, will see investments of $7-10 billion, some of which will come from the Adani Foundation.

Singh said on Investor, “Whatever you see today, it may seem that it has happened in the last one or two years, but what we have actually done, GSA (Gautam Shantilal Adani) and I have done this in 2015. had discussed.” The group linking meeting is the result of a well thought out business plan that goes into the adjacencies of the existing business.

Recently, Bloomberg news agency reported that Asia’s richest man could raise at least $10 billion in new debt next year as his group seeks to refinance its high-cost lending and fund projects in the pipeline.

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

Last week, the Adani Group agreed to the acquisition Air WorksOne of the major centers in India for Maintenance, Repair and Overhaul (MRO) of Aircraft.

The group is also in talks with people who are in debt Jaiprakash Power Ventures Ltd. to buy its cement unit. The group has already bought Ambuja Cements Ltd and ACC Ltd.

The market capitalization of the Adani Group was around $16 billion in 2015 and has grown to $260 billion in 2022 – an increase of more than 16 times in seven years.

“Looking at what we had as a group of companies, we believed that if we had that type of assets and companies we really should be a $1 trillion conglomerate. So we We went through the steps we needed to get to this point.” Robbie of Adani Group added.

Globally, there are only a small number of companies that are worth a trillion dollars or more. These include Apple, Saudi Aramco, Microsoft, Google’s parent Alphabet and Amazon. Singh said the Adani Group has built its infrastructure and logistics portfolio in such a way that it can emerge as not only the biggest player in India but also the top five globally.