Adani Group Plans $100 Billion Investment in Green Energy and Digital Projects
The Adani Group, a major Indian conglomerate, has announced plans to invest $100 billion over the next decade. This investment will focus on energy transition projects and digital infrastructure to support the group’s growth.
Strong Financial Performance
In a recent investors’ meeting, the Adani Group reported a 27% compound annual growth rate (CAGR) over five years and a significantly improved leverage profile. The group’s EBITDA for FY24 was approximately $10 billion, with over 80% coming from infrastructure-related businesses.
Focus on Green Energy
Adani Enterprises is leading several ambitious projects, including the development of a Green Hydrogen (GH2) ecosystem. The company aims to produce up to 3 million metric tons of GH2 over the next decade. Additionally, Adani Green plans to increase its renewable energy capacity to 50 GW by FY30.
Digital Infrastructure Expansion
The Adani Group plans to leverage its extensive national footprint, which includes around 350 million users, to expand its digital infrastructure. This includes projects like smart metering and data centers.
Other Key Projects
Adani Enterprises is also working on new airport projects, a copper manufacturing facility, and a Coal-to-PVC plant. Adani Cement aims to achieve a production capacity of 140 million tons per annum by FY28, while Adani Energy Solutions plans to commission Rs 170 billion worth of transmission assets by FY26.
Financial Stability
The Adani Group has a healthy cash flow and sufficient funds to cover all debt maturities. The group’s leverage position has improved, with contracted EBITDA making up 80% of the total group EBITDA and cash reserves standing at over 20% of its borrowing.
Future Prospects
The Adani Group is confident that its net debt to EBITDA will remain below 5x during this extensive capital expenditure phase. The group is also exploring new growth areas like district cooling and battery storage solutions to complement its renewable energy projects.
