Thu, April 25, 2024

Adani Group directs 70 pc of investments towards green energy

B360 March 18, 2024, 4:08 pm
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NEW DELHI: India's Adani Group is projected to direct over 70% of its total investments towards green energy, encompassing renewable power, green hydrogen, and green evacuation transmission lines, according to sources.

The conglomerate is in the process of constructing the world's largest renewable park at Khavda, Gujarat, covering an area of over 530 square kilometres.

Sources indicate that the Adani Group plans to invest $14 billion (INR 1.16 trillion) in the 2024-25 financial year through its portfolio of 11 listed companies, to develop the country's infrastructure.

The anticipated capital expenditure represents a 40% increase compared to the current financial year 2023-24, which is estimated at $10 billion.

India's largest infrastructure conglomerate, with flagship projects such as the Navi Mumbai Airport, Ganga Expressway, the world's largest renewable park at Khavda, and Mundra Port, has committed to a $100 billion investment over the next 7-10 years.

This investment is predicted to play an important role in transforming India's energy and transportation landscape.

A significant portion of the total investments is allocated for the expansion and development of its rapidly growing airports and ports businesses, added the sources.

With a portfolio that includes eight airports, including the forthcoming Navi Mumbai airport, and 14 domestic ports, the Adani Group aims to further strengthen its presence in these sectors.

In the December quarter, it reported a record quarterly EBITDA growth of 63.6% year-on-year, taking its 12-month EBITDA to an all-time high of $9.5 billion (INRs 78,8.23 billion) in the calendar year 2023, driven by its investments in previous years.

The net debt to EBITDA at the end of September was 2.5x, which is expected to further decrease by the end of 2023-24, due to robust growth. With higher investments, it is paving the way for exponential growth in the coming years, a source said.

In a media statement released in February, the group stated that increasing cash flows and its robust credit profile have set the stage for unparalleled 'Green Investment.'


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MARCH 2024

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