Adani Group Plans Major Investment in Airports Sector
Operating seven airports across India, the Adani Group is set to invest nearly ₹1 lakh crore in its airport business over the next five years. This substantial investment will focus on infrastructure and real estate development, with significant projects planned for Mumbai and Navi Mumbai airports. Jeet Adani, the head of the airport division and son of the group’s founder, emphasized the vast potential within India, indicating no immediate plans for international expansion.
Investment Plans and Future Projects
The Adani Group has outlined an ambitious investment strategy for its airport ecosystem, planning to allocate approximately ₹95,000 to ₹96,000 crore over the next five years. The majority of this capital expenditure (capex) will be directed towards the development of the Navi Mumbai Airport and enhancements at the existing Mumbai Airport. Additionally, the group plans to construct new terminals at airports in Ahmedabad, Jaipur, and Thiruvananthapuram within the next four years. The recently completed terminal in Lucknow is also set for expansion, while a new terminal in Guwahati is expected to be operational by October or November.
Jeet Adani highlighted that the upcoming Navi Mumbai International Airport (NMIA) will initially accommodate two crore passengers annually, with a total investment of ₹19,000 crore for its first two phases. Future expansions could see the airport’s capacity increase to either three or five crore passengers, with projected costs ranging from ₹30,000 to ₹45,000 crore. The overall investment for NMIA, aiming for a maximum capacity of nine crore passengers, is estimated to reach ₹1 lakh crore.
Focus on Domestic Growth
Despite receiving inquiries about potential airport projects abroad, Jeet Adani stated that the group is prioritizing opportunities within India. He expressed confidence in the country’s aviation sector, predicting significant growth over the next decade. With 26 airports identified for development through public-private partnerships (PPP), the Adani Group aims to deepen its presence in the Indian market rather than diverting resources internationally. This strategy reflects a commitment to enhancing the domestic aviation landscape and capitalizing on the anticipated economic growth in the cities where they operate.
Funding and Financial Strategy
To finance its extensive capex plans, the Adani Group intends to utilize its own equity while also refinancing existing projects. Jeet Adani mentioned that lenders have shown a willingness to participate in future funding rounds. The group’s philosophy centers on pre-investing in infrastructure, demonstrating a strong belief in the growth potential of the aviation sector and the broader economy. This proactive approach aims to establish a robust foundation for the aviation ecosystem in India.
Building Relationships in the Aviation Ecosystem
Jeet Adani emphasized the importance of collaboration within the aviation sector, stating that the group is not merely an airport operator but is committed to advancing the entire aviation ecosystem. He noted the need for better integration between airports and airlines to capture traffic that currently transits through nearby international hubs. The Adani Group has fostered strong relationships with major airlines, including IndiGo and Tata Group, and is actively engaging them in planning discussions to enhance operational synergy. This collaborative approach aims to position the Adani Group as a key player in transforming India’s aviation landscape.
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