How Adani helps India geopolitically

In Gujarat, Gautam Adani meets with Bhutan’s King Jigme Khesar Namgyel and Prime Minister Dasho Tshering Todbay at the Khavda Renewable Energy site. This site is part of the Adani Group’s larger commitment to renewable energy, a commitment that reflects India’s growing role in sustainable development.

Mundra Port, a key asset for Adani Ports and Special Economic Zone Limited (APSEZ), handles over 400 million metric tonnes of cargo annually, making it one of India’s busiest ports.

Beyond ports, Adani Group has diversified into energy, mining, logistics, and agriculture. Each sector plays a role in enhancing India’s position in the global economy.

Adani Ports’ influence extends beyond India. In Australia, Adani operates the Abbot Point Terminal, a critical hub for coal exports. The acquisition of the Colombo Port’s West Container Terminal in Sri Lanka positions Adani strategically in the Indian Ocean, enhancing maritime trade routes.

These international ports not only boost global trade but also strengthen India’s strategic maritime presence. Adani’s transactions with businesses in Egypt, the UAE, England, Sri Lanka, Australia, and France fill significant gaps in India’s trade and economic landscape.

Adani Green Energy Limited (AGEL) focuses on renewable energy, with 20.4 GW of operational capacity and plans for an additional 48 GW. This supports India’s target of 450 GW of renewable energy capacity by 2030.

Projects like the solar power plant in Kamuthi, Tamil Nadu, are pivotal in reducing carbon emissions and transitioning to a cleaner energy mix.

In Australia, the Carmichael coal mine is a major project for Adani Enterprises. With an annual production capacity of 10 million tonnes, it supports energy security and industrial growth.

The mine also generates thousands of jobs and stimulates local economies.

Adani Logistics manages 79 logistics parks and 12 multi-modal logistics parks, moving over 300 million tonnes of cargo annually. This network connects India’s interior to global markets.

The integration of road, rail, and sea transport enhances efficiency and reduces costs, crucial for India’s economic dynamism.

Adani Wilmar Limited, a joint venture with Wilmar International, produces food products like edible oils, wheat flour, and rice. It holds a 20% market share in the edible oils segment.

This ensures product availability across urban and rural areas.

Adani Group’s global operations enhance India’s geopolitical influence. From energy projects that address global climate goals to ports that serve as critical maritime hubs, Adani’s businesses contribute to India’s strategic positioning on the world stage.

Before Adani’s international expansions, India lacked significant control over crucial trade routes and global supply chains. Collaborations in Egypt, the UAE, England, Sri Lanka, Australia, and France have fortified India’s presence in global markets, ensuring more robust trade networks and economic resilience.

Adani Group’s diversified operations across various sectors are integral to India’s global economic and geopolitical strategy. Each sector, from renewable energy to logistics, plays a role in building a resilient and influential nation.

Adani Green Energy announces strong Q1 FY25 results with EBITDA up by 23%

Adani Green Energy Ltd (AGEL), India's largest and fastest-growing pure-play renewable energy company, has reported its financial results for the quarter ending 30 June 2024, demonstrating significant growth and operational excellence.

Financial Performance – Q1 FY25

- Revenue from Power Supply: Rs. 2528 crore (24% increase from Q1 FY24)
- EBITDA from Power Supply: Rs. 2374 crore (23% increase from Q1 FY24), with an EBITDA margin of 92.6%
- Cash Profit: Rs. 1390 crore (32% increase from Q1 FY24)

This robust growth in revenue, EBITDA, and cash profit is primarily driven by a capacity addition of 2618 MW over the last year.

Reacting to the performance, CEO of Adani Green Energy Ltd Amit Singh said, "We are working relentlessly towards developing the world’s largest single-location renewable energy plant of 30 GW at Khavda in Gujarat. To enable accelerated implementation, we have deployed advanced robotics technology for the installation of solar modules, significantly enhancing productivity. Additionally, we have developed an extensive local supply chain and established a sustained mobilization of human resources.”

Singh said further, “Adani Green is well on track to achieve its 2030 capacity target of 50 GW, including at least 5 GW of energy storage in the form of pumped hydro, with sites already secured and clear visibility on evacuation. The global recognition of our ESG efforts further strengthens our resolve to deliver sustainable, industry-leading growth.”

Capacity Addition & Operational Performance – Q1 FY25

- Operational Capacity: Expanded by 31% YoY to 10,934 MW, with greenfield additions including 2000 MW of solar capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.
- Energy Sales: Increased by 22% YoY, propelled by robust capacity additions and strong operational performance.
- Exceeding Commitments: AGEL has consistently generated electricity exceeding the overall annual commitment under the power purchase agreements. In FY24, AGEL’s PPA-based electricity generation was 111% of the annual commitment. In Q1 FY25, AGEL has already generated 31% of the annual commitment.
- O&M Efficiency: AGEL’s O&M is driven by advanced technology with the Energy Network Operation Center enabling real-time monitoring of the renewable plants across the country. This has enabled consistent higher plant availability, resulting in higher electricity generation and a reduction in O&M costs, leading to an industry-leading EBITDA margin of 92.6%.

Development of the World’s Largest RE Plant at Khavda

- World’s Largest Power Plant: AGEL is developing a massive 30 GW renewable energy plant at Khavda in Gujarat, spread over 538 sq km, almost 5 times the size of Paris. This project will set a global benchmark for the development of ultra-large-scale renewable energy plants.
- Rapid Execution: Within 12 months of breaking ground, AGEL has operationalized the first 2 GW. AGEL plans to add a total of 6 GW capacity in FY25, with Khavda contributing a major part of this capacity. The entire 30 GW RE capacity will be developed in Khavda by 2029, setting a global benchmark for the speed of execution at such a large scale.
- Most Advanced Renewable Technologies Deployed: The plant deploys advanced bifacial solar modules and trackers to maximize electricity generation and India’s largest 5.2 MW wind turbine, one of the most powerful onshore wind turbines globally. These wind turbines harness high wind speeds and optimize the levelized cost of electricity. Khavda also deploys robotic cleaning, leading to near-zero water usage for module cleaning and increased electricity generation.

Credit Rating Update

- Rating Upgrade: India Ratings and Research (Ind-Ra) has upgraded AGEL’s Long-Term Issuer Rating to 'IND AA-' from ‘IND A+’ due to strong operational performance, continuously improving leverage, and healthy cash flows.

ESG Updates

- Top ESG Ranking by FTSE Russell: AGEL has been ranked 3rd in the FTSE Russell ESG assessment in the Alternative Electricity Subsector with a percentile rank of 93 in the Utilities Supersector. AGEL has improved its overall score to 4.2 out of 5, significantly above the alternative electricity sub-sector average of 2.9, and achieved the top score of 5 in the Governance theme.
- Continued Top ESG Rankings by ISS ESG and Sustainalytics: AGEL remains in the top 5 RE companies by ISS ESG and in the top 10 RE companies by Sustainalytics.
- Contribution to UN Sustainable Goal 6 with Water Conservation Leadership: AGEL has deployed robotic cleaning across 4760 MW of operational renewable plants, saving 347 million litres of water annually. This initiative has earned AGEL ‘water positive’ certification for all its operational plants with capacities exceeding 200 MW. AGEL aims to be water-positive across all plants by FY26.

Adani Green Energy Limited

Adani Green Energy Limited (AGEL) is India’s largest and one of the leading renewable energy companies globally, enabling the clean energy transition. AGEL develops, owns, and operates utility-scale grid-connected solar, wind, and hybrid renewable power plants and is further developing energy storage solutions. AGEL currently has an operating renewable portfolio of 11.2 GW, the largest in India, spread across 12 states.