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Chaudhary Charan Singh International Airport comes under the control of Adani Group, in Lucknow. (ANI)
Chaudhary Charan Singh International Airport comes under the control of Adani Group, in Lucknow. (ANI)

Adani Enterprises plans 50,000 crore capex over 5 years

  • In roads, Adani Enterprises Ltd(AEL) signed five concession agreements with NHAI under Hybrid Annuity Model for construction of roads aggregating to over 200 km
  • Adani Enterprises has also thrown its hat in the ring in the ongoing commercial coal mining auctions held by the central government

MUMBAI : Adani Enterprises Ltd (AEL), the flagship business of billionaire Gautam Adani’s group, intends to invest as much as 50,000 crore in capital expenditure in its new businesses over the next five years, a senior executive said. Of this, over 35,000 crore will go solely into its airports division.

“We took over two (Lucknow and Mangaluru) of the six airports so far and will take over operating control of Ahmedabad airport in the coming weeks. The acquisition of Mumbai and Navi Mumbai airports will be finalised in the next few months, and latest by March 2021," Jugeshinder Singh, CFO, Adani Enterprises, told journalists on the earnings call.

“We will spend 14, 249 crore on the Mumbai and Navi Mumbai airports and about 15,000 crore on the other six. The total capex target for the airports division is 35,780 crore."

Adani Enterprises, which incubates new business divisions within the group, will consider a demerger of the airports business after 2023, Singh said. Singh said the company’s expansion focus is on airports, roads and data centre sector, with the total capital expenditure of about 50,000 crore planned over a five-year period.

Adani Enterprises has also thrown its hat in the ring in the ongoing commercial coal mining auctions held by the central government. A total of 38 coal mines have been put up for auction by the coal ministry. There have been 76 bids from 42 companies for 23 coal mines, with the remaining 15 mines failing to get any offers. Mint has reported that AEL is vying for Gare Palma 4/1 in Chattisgarh and Urtan North in Madhya Pradesh.

While Singh didn’t comment on specific coal blocks, he said the company “continues to work with government programme in coal auction. We have a large profitable mining services business and are in a good position to exploit this opportunity."

Higher volumes in solar manufacturing and mining services pushed Adani Enterprises’ net profit up to 362 crore in Q2FY21 on consolidated income of 9312 crore. The company had reported a net profit of 50 crore in the year-ago period, including an exceptional write-off of 130 crore.

During the quarter, solar manufacturing volume increased by 50% at 418 MW due to increased sales in domestic content requirement and the engineering, procurement and construction segment. In roads, AEL signed five concession agreements with NHAI under Hybrid Annuity Model for construction of roads aggregating to over 200 km.

Gautam Adani, Chairman Adani Group, said, in a statement: “The ability to incubate, innovate and scale effectively and rapidly has been a defining philosophy of Adani Enterprises and we continue to learn and further improve this model. Our move into roads and water infrastructure, data center parks, and airports including the addition of the Mumbai International Airport and the Navi Mumbai International Airport provides us with a transformational platform that will help us create several strategic and growth based adjacencies for our other businesses."

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