Adani Enterprises hints at investing Rs 50,000 crores in the next 5 years

Flagship business of Gautam Adani, the Adani Enterprises Ltd (AEL), has hinted at an intention to invest a hefty amount of ₹50,000 crore in capital expenditure for its new business ventures in the upcoming five years

Flagship business of Gautam Adani, the Adani Enterprises Ltd (AEL), has hinted at an intention to invest a hefty amount of 50,000 crore in capital expenditure for its new business ventures in the upcoming five years. Of the proposed amount, over 35,000 crores will solely be invested into its airports’ sector.

“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,” CFO of  Adani Enterprises, Jugeshinder Singh commented on the earnings call.

“We will spend 14, 249 crores on the Mumbai and Navi Mumbai airports and about 15,000 crores on the other six. The total CapEx target for the airports’ division is 35,780 crores,” he added.

Adani Enterprises, which cultivated new business provisions and divisions within the group, plans to consider a demerger of the airports business after 2023, Singh stated. He also emphasised that the company is focusing on the expansion of airports, roads and data centre sector, with the total capital expenditure of about 50,000 crores they have planned to invest over a five-year period.

Adani Enterprises has also secured its foot in the ongoing commercial coal mining auctions held by the central government and consequently, a total of 38 coal mines have been put up for auction by the coal ministry and according to sources, AEL is aiming to consolidate Gare Palma 4/1, Chattisgarh and Urtan, Madhya Pradesh.

While Singh has not commented on any specific coal blocks, he has said that 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 proportions in the solar manufacturing and mining services have pushed Adani Enterprises’ net profit to 362 crores in the September quarter with a consolidated profit of ₹ 436 crores. Earlier, the company had reported a net profit of 50 crores in the subsequent year-ago period, including an exceptional write-off of 130 crores.

During the second quarter, the solar manufacturing proportions increased by 50 percent at 418 MW owing to the increased sales in domestic content requirement and the engineering, procurement and construction segment. On the way, AEL has signed five concession deals with NHAI under the Hybrid Annuity Model for the construction of roads aggregating to over 200 kilometres.

“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 centre parks, and airports including the addition of the Mumbai International Airport and the Navi Mumbai International Airport provide us with a transformational platform that will help us create several strategic and growth based adjacencies for our other businesses”Gautam Adani, Chairman of Adani Group, said, in a statement.

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