The Adani Group, led by Gautam Adani, is set to embark on an ambitious $100 billion capital expenditure plan over the next six years. This is the largest capex plan by any private group in India, according to Jugshinder (Robbie) Singh, the group’s Chief Financial Officer. The investment will be focused on greenfield projects, with no acquisitions planned. The group aims to increase its annual investment to Rs 1.5-1.6 lakh crore, up from Rs 1.1-1.2 lakh crore last year.
The capex will be allocated across three key sectors: energy, construction materials, and mining and metal. The energy sector will receive the bulk of the investment, accounting for 83-85% of the total plan. Within the energy sector, the majority of the investment will go towards developing renewable energy capacity and storage, with the goal of increasing the group’s renewable capacity and storage by seven times. Additionally, the conventional energy capacity will also double.
Adani Green Energy, the group’s renewable energy arm, currently has an operational capacity of 14.2 GW, while Adani Power, the conventional energy company, has a capacity of 16.54 GW. The significant investment in renewable energy is expected to bolster the group’s position in the clean energy space. The construction materials sector will receive around 10% of the capex, while the mining and metal business will receive 6-7%.
The Adani Group’s massive capex plan is expected to drive significant growth and expansion across its various businesses. With a focus on renewable energy, the group is poised to play a major role in India’s transition to a more sustainable energy mix. The investment will also create new opportunities for the group, both in terms of business expansion and job creation. As the Adani Group embarks on this ambitious plan, it will be closely watched by investors, industry observers, and stakeholders alike.