Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. The group is a diversified organisation in India comprising 10 publicly traded companies. It has created a world class transport and utility infrastructure portfolio that has a pan-India presence.
Here is a list of few Adani Group firms embarking on Capital Expenditure initiatives:
Adani Wilmar Ltd.
Adani Wilmar Ltd. is a major FMCG food company in India, providing a wide range of essential kitchen commodities including edible oil, wheat flour, rice, pulses, and sugar. The company sells most of its products under the ‘Fortune’ brand.
Capacity Enhancement
Adani Wilmar Ltd plans to invest approximately Rs.600 crore this fiscal year to expand its edible oil processing capacities for oilseeds like sunflower and cotton seeds, aiming for increased volume growth, as stated by MD & CEO Angshu Malick.
In addition to ongoing expansion programs worth around Rs.3,400 crore, the company will enhance processing capacities and boost solar power generation from 8 MW to 15 MW, according to CFO Mr.Shrikant Kanhere.
The company will also introduce new specialty products for institutional buyers and consumer items such as noodles and pasta.
Financials
The share price of Adani Wilmar closed at Rs.383 per share on Friday, and hit a 10 percent upper circuit limit from its previous close.
For the quarter ending June 2024, Adani Wilmar Ltd. reported an 11 percent year-over-year increase in revenue from operations and achieved a net profit of Rs.324 crores, compared to a net loss of Rs.38 crores in the same period last year.
Adani Ports & Special Economic Zone Ltd.
Adani Ports & Special Economic Zone Ltd. specialises in the development, operation, and maintenance of port infrastructure and related services. The company manages a multi-product Special Economic Zone (SEZ) and associated infrastructure adjacent to the port at Mundra.
Capacity Expansion
Adani Group has planned to invest over $2 Billion in Lien Chieu port, located in Danang, Vietnam, according to a statement on the Vietnamese government’s website.
The Adani Group has outlined a major investment plan to build a full logistics ecosystem in Danang and allocate approximately $2.8 Billion to the Vinh Tan 3 Thermal Power project in Binh Thuan.
Additionally, the group aims to partner with Vietnamese firms on aviation and logistics projects, including expanding Long Thanh and Chu Lai airports.
The Adani Group’s investment in Lien Chieu port will significantly enhance Adani Ports’ operational capacity and logistics capabilities in Southeast Asia, positioning it as a key player in regional trade. This strategic move will also facilitate partnerships in aviation and logistics, further strengthening its market presence in Vietnam and beyond.
Financials
On Thursday, Adani Ports & Special Economic Zone Ltd. closed at Rs.1,587.85 per share, down by 0.1 percent from the previous close. In Q1 FY25, the company reported a 21 percent year-over-year increase in revenue and a 47 percent rise in net profits.
Adani Power Ltd.
Adani Power (APL), a key entity within the Adani Group, is the largest private thermal power producer in India. The company and its subsidiaries sell electricity generated from these projects through a mix of long-term Power Purchase Agreements (PPAs), short-term PPAs, and on a merchant basis.
Capacity development
Adani Power Ltd. plans to increase its aggregate power generation capacity from 445 GW to 900 GW by FY32. The company aims for non-fossil generation to reach 500 GW by FY30, requiring 253 GW from coal.
APL’s subsidiary, Mirzapur Thermal Energy (UP) Pvt. Ltd, is developing a new 1,600 MW Ultra-supercritical thermal power project (2×800 MW) in Mirzapur, Uttar Pradesh.
Adani Power is expected to invest approximately ₹14,000 crore in the project, based on an estimated cost of ₹8-9 crore per MW for establishing a greenfield thermal power plant.
Peak demand projections have been revised to 390 GW by FY32, necessitating 290 GW of coal-based capacity. There is scope to add 80-90 GW of coal-based capacity by FY32, up from the current 217 GW.
Adani Power Ltd. is undertaking a 4,800 MW brownfield expansion, which involves increasing the capacity of existing power plants.
APL is expanding its Raipur, Chhattisgarh facility with a new 1,600 MW Ultra-supercritical thermal power project (2×800 MW) as Phase-II, augmenting its current 1,370 MW capacity.
Financials
On Thursday, Adani Power Ltd. closed at Rs.726.4 per share, down by 1.54 percent from the previous close. In Q1 FY25, revenue increased by 36 percent year-over-year, but profit after tax fell sharply from Rs.8,759 crores to a net profit of Rs.3,913 crores.
Adani Energy Solutions Ltd.
Adani Energy Solutions Ltd., part of the Adani portfolio, is a multidimensional organisation with presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. AESL is India’s largest private transmission company.
Capacity Extension
AESL, a key player in India’s power transmission sector, has set ambitious targets to establish 30,000 circuit kilometers (CKM) of transmission lines by 2030.
AESL is executing nine contracts to install 22.8 million smart meters, with a total capital expenditure of Rs.12,300 crore.
The company has acquired a 100 percent stake in Essar Transco for $227.5 million, enhancing its transmission capabilities. The acquisition includes a 400kV, 673 km interstate transmission line connecting Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.
In May 2024, AESL secured a 20-year power purchase agreement with Sri Lanka and, following a February 2023 approval, is investing $442 million in wind projects with a total capacity of 484 MW.
Adani Electricity launched a new “Network Operations Center (NOC)” powered by India’s first fully functional Advanced Distribution Management System (ADMS) and SCADA (Supervisory Control and Data Acquisition) technology to ensure reliable power supply to over 1.2 crore consumers.
Financials
On Thursday, Adani Energy Solutions Ltd. closed at Rs.1,261 per share, down by 1.06 percent from the previous close. In Q1 FY25, revenue increased by 47 percent year-over-year, but profit after tax fell sharply from Rs.182 crores to a net loss of Rs.1,191 crores.
Written by Siddesh S
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