Adani Group To Invest Rs 1.3 Lakh Crore In FY24, Focuses On Green Energy And Infrastructure
Adani Group also plans to refinance $3-4 billion of maturing debt and secure an additional $1 billion for project financing
Adani Group plans to invest approximately Rs 1.3 lakh crore across its portfolio companies in the current fiscal year, reinforcing its commitment to a $100 billion investment roadmap over the next 7-10 years, according to the Group's CFO, Jugeshinder 'Robbie' Singh. The diversified conglomerate's investments will span sectors such as ports, energy, airports, commodities, cement, and media. Singh detailed that 70 per cent of the funding will come from internal cash generation, with the remaining 30 per cent financed through debt.
The group also plans to refinance $3-4 billion of maturing debt and secure an additional $1 billion for project financing. The practice of annual equity infusions, amounting to $2-2.5 billion by attracting new investors, is expected to continue.
"This year will be more about asset completion," Singh said, highlighting that Adani Green will finish 6-7 GW of renewable energy projects, and its solar wafer manufacturing unit will reach significant scale. Additionally, the new Mumbai airport is slated for completion within the fiscal year.
The projected capital expenditure for FY24-25 is 40 per cent higher than the estimated expenditure for FY23-24. The group's strategic focus includes substantial investments in renewable energy, green hydrogen, and infrastructure, particularly in the fast-growing sectors of renewable power, green hydrogen, and airport development.
Of the planned capex, 70 per cent is dedicated to green initiatives—primarily renewable energy, green hydrogen, and green evacuation infrastructure. The remaining 30 per cent will focus on expanding the airports and ports businesses.
Adani Group companies reported a record 45 per cent increase in pre-tax profit (Ebitda) to Rs 82,917 crore (around $10 billion) for FY24. After facing challenges from a critical report by a US short seller that impacted its market value, the group has concentrated on debt containment, reducing founder share pledges, and consolidating its core business areas. The group's five-year CAGR for profit growth stands at 54 per cent.
Founded by Gautam Adani, a school drop-out who began his career as a commodities trader, the group has grown into a global powerhouse. Adani Group is now the world’s second-largest solar power company, the largest airport operator in India with 25 per cent of passenger traffic and 40 per cent of air cargo, the largest ports and logistics company with 30 per cent of the national market share, the largest integrated energy player, and the country’s second-largest cement manufacturer.
Adani Group is allocating over 70 per cent of its $100 billion investment plan to green businesses, including renewable power, green hydrogen, and green evacuation transmission lines. The conglomerate is constructing the world's largest renewable energy park in Khavda, Gujarat, covering 530 square kilometers—five times the size of Paris.
Significant investments are also earmarked for expanding its airports and ports businesses, with a portfolio that includes eight airports, such as the upcoming Navi Mumbai airport, and 14 domestic ports, aiming to further strengthen its market presence in these sectors.
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