Adani Group Announces ₹60,000 Crore Investment in Airport Sector

The Adani Group has announced a significant investment of ₹60,000 crore over the next decade aimed at developing its airports into vibrant aviation hubs and commercial destinations for city residents.

Presently, the conglomerate operates seven airports across India, with one under construction in Navi Mumbai. Combined, these airports boast an annual passenger handling capacity of 100-110 million. By 2040, the group aims to amplify this capacity by 2.5-3 times.

A substantial portion of the investment, totaling ₹30,000 crore, will be allocated towards enhancing airport terminals and airside facilities across the group's airports in the next five years. This financial commitment is in addition to the ₹18,000 crore already invested in the initial phase of the Navi Mumbai airport project.

Arun Bansal, CEO of Adani Airport Holdings Limited, highlighted ongoing projects, stating, "We are constructing a new terminal in Guwahati and have plans for a new terminal in Ahmedabad. The Navi Mumbai airport, slated to commence operations early next year, will have a capacity of 20 million passengers per year."

Karan Adani, Managing Director of Adani Ports and SEZ Limited, emphasized the strategic vision for airports in Ahmedabad and Lucknow to evolve into aviation hubs with direct connectivity to Europe and the US. He noted that currently, residents from these cities typically travel to Europe or the US via West Asia, Delhi, or Mumbai, but direct connections will streamline travel.

Additionally, the group intends to invest another ₹30,000 crore in city-side developments at eight airports over the next decade. These developments will include the construction of hotels, multiplexes, and other amenities. Anticipating substantial revenue growth from commercial ventures, Adani Group foresees these investments materializing over time, subject to various approvals.

Bansal confirmed that the investments would be self-funded by the group internally. While declining to comment on reports of a $2.6 billion fundraise for the airport and green hydrogen business, he emphasized the immediate focus on operationalizing the Navi Mumbai airport and initiating city-side development at airports. He mentioned that the group might consider an IPO for its airport business at a later stage.

Furthermore, Bansal outlined the group's international strategy, expressing interest in participating in airport development opportunities in countries where it aligns with the group's broader interests. He hinted at exploring opportunities in ports, transmission, and other sectors, with a particular focus on a specific country currently under consideration.

HBL