The Adani Group has announced an ambitious capital expenditure (capex) plan exceeding ₹1.2 lakh crore (approximately $14 billion) for the fiscal year 2024–25. This marks a significant 40% increase from the estimated $10 billion spent in FY24, underscoring the conglomerate's commitment to expanding its diverse business portfolio .
Strategic Allocation of Investments
Approximately 70% of the FY25 investment will be directed towards the group's green energy initiatives. This includes renewable power projects, green hydrogen production, and the development of green evacuation transmission lines. The remaining 30% will focus on enhancing infrastructure in sectors such as airports, ports, cement, and media .
Green Energy Expansion
A cornerstone of Adani's strategy is the expansion of its renewable energy capacity. The company is constructing the world's largest renewable energy park in Khavda, Gujarat, spanning over 530 square kilometers—five times the size of Paris. This project aligns with India's ambitious renewable energy targets and positions Adani as a key player in the global green energy transition .
Infrastructure and Cement Sectors
In addition to its green energy focus, Adani plans substantial investments in its infrastructure and cement sectors. The group operates eight airports, including the upcoming Navi Mumbai airport, and 14 domestic ports. These investments aim to solidify Adani's dominance in India's transportation and logistics networks .
Financial Performance and Outlook
In 2023, Adani's portfolio achieved a record EBITDA of $9.5 billion, marking a 34.4% year-on-year increase. The group's net debt has decreased by 4% from March 2023 to September 2023, reflecting improved financial health and the capacity to support expansive investments .
Long-Term Vision
Looking ahead, Adani has committed to a $100 billion investment over the next 7–10 years. This long-term strategy emphasizes sustainable growth, with a significant portion allocated to green businesses, including renewable power, green hydrogen, and green evacuation transmission lines .
Adani Group's $14 billion investment plan for FY25 underscores its strategic focus on sustainable energy and infrastructure development. By allocating substantial resources to green initiatives and expanding its presence in key sectors, the conglomerate aims to drive long-term growth and contribute to India's economic transformation