Adani Group to invest Rs 1.3 trillion in portfolio companies

The Adani Group has plans to invest around Rs 1.3 trillion in portfolio companies this fiscal year, Group CFO Jugeshinder Singh told the press in Ahmedabad on Tuesday. A capital expenditure, or capex, worth Rs 1.3 trillion in FY25 would be 40 per cent higher for the ports-to-power conglomerate, from Rs 700 billion in the previous fiscal year.

Singh told reporters that the renewable energy firm Adani Green Energy has plans to add a capacity of 6 gigawatts that would cost nearly Rs 340 billion and, refuting rumours that the Adani Group planned to own a stake in Paytm, said that the group would “evaluate any opportunities” to enter the fintech market. He added that the new airport in Mumbai would be completed.

Singh’s media briefing happened a day after the group’s billionaire Chairman, Gautam Adani, addressed investors at the annual general meeting of the flagship company. Adani Enterprises Ltd (AEL).

Gautam Adani told shareholders on Monday that India was marching towards becoming a $10 trillion economy by 2032, and the country’s infrastructure sector could be expected to grow at 20-25 per cent to reach $2.5 trillion. As an infrastructure company “at the very core”, the Adani Group was “well positioned to capitalise on the upcoming opportunities”, he added about his empire, which is a frontrunner in businesses as varied as green energy, renewable power, transmission, cement, coal, infrastructure, airports, ports and special economic zones (SEZ) among others.

A day later, during his media interaction, CFO Jugeshinder Singh elaborated that 70 per cent of the investment in portfolio companies of the group would be done through internal cash generation while debt would take care of the rest.

Around 70 per cent of the capex would be invested in the group’s green portfolio that includes green hydrogen, green evacuation and renewable power. Of the 30 per cent that remains, most of the funds would go into developing ports, airports and infrastructure, Singh said.

Overall, the Adani Group registered a record 45 per cent rise in Earnings Before Interest, Taxes, Depreciation and Amortization (Ebitda) in FY24, Singh said. Among the group’s highlight upcoming projects is the world’s largest renewable park at Khavda in Gujarat, spanning over 530 square kilometres, five times the size of Paris.