Adani Group to invest $150 billion to join elite $1 trillion club
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New Delhi: The Adani Group is planning to invest over $150 billion in fields ranging from green energy and data centres to airports and healthcare. The Indian businessman is trying to join the elite global club of companies with a $1 trillion valuation. Apple, Saudi Aramco, Microsoft, Google's parent Alphabet, and Amazon are some companies in the club.
Adani Group's Chief Financial Officer Jugeshinder 'Robbie' Singh revealed the plans on October 10. In the next 5-10 years, $50-70 billion will be invested in the green hydrogen business and another $23 billion will be diverted to green energy. The group is also going to invest $7 billion in electricity transmission, $12 billion in transport utilities, and $5 billion in the road sector.
Adani Group is partnering with EdgeConneX with an investment of $6.5 billion to enter the data centre business with cloud services. Another $9-10 billion is being invested in airports. Adani is also already the largest private operator in the sector. It is also entering the cement sector with the acquisition of ACC and Ambuja cement with $10 billion.
The Indian group is also planning to set up a 1 million tonnes per annum PVC manufacturing facility at an investment of $2 billion in the petrochemical business. It is also entering the copper sector with a 0.5 million tonnes a year smelter at an investment of $1 billion. An investment of $7-10 billion will be put into the healthcare sector which will include insurance, hospitals, diagnostic, and pharma.
Speaking at the investor meeting, Singh said these plans have been in the works since 2015. The group's market capitalisation was around USD 16 billion in 2015 and it is USD 260 billion in 2022. It is a surge of over 16 times in seven years. "Given what we had as a set of companies, we believed that if we had assets and companies of that type we should really be a USD 1 trillion group. So we went through the steps that we needed to take to get to the point," he added.
He announced that power will continue to be the core of Adani Group's future growth. Singh added that Adani is making the biggest bet by any Indian group in building the chain for producing hydrogen - the fuel of the future - as well as renewable energy plants.