In an email, the Adani Group said its ability to execute mega infrastructure projects fast and at a low cost has helped drive growth and margins. “The return on capital is steady and has little risk because ultimately, these assets will see increasing usage and thus cash flows with the growth of India.” “These are not boom and bust industries,” said Nirmalya Kumar, Lee Kong Chian professor of marketing at Singapore Management University, who has served on the boards of several Indian companies. So even as regulatory uncertainties loom, the Indian economy’s dependence on Adani could allow his profits to keep growing. The conglomerate’s influence is also growing dramatically in the renewable energy space, where it’s the leading player and is outshining even state-owned enterprises. Any stoppages by Adani Power’s plants could put the lights off in some areas, affecting homes and also factories. Amazon packages might pass through Adani transportation systems. These numbers - based on government data and the group’s financial reports - describe a ports-to-power conglomerate that’s running vast swathes of the world’s fastest-growing major economy.Ĭomponents for Apple products could make their way through Adani ports. His airports help move nearly 75 million people annually, more than the population of France, and his ambitions are now expanding to doorstep delivery and logistics. Adani companies handled about 43% of all shipping containers in this nation of 1.4 billion, a third of all coal transported, about 22% of private thermal power capacity, the largest number of solar and wind plants, and 51% of India’s private electricity transmission. Key findings are expected in coming weeks.Īn overarching question lingers: What are Adani’s long-term prospects after its Hindenburg crisis?ĭata compiled by Bloomberg show that Adani has the highest market share within the private sector in most of the Indian sectors in which it operates. The short seller’s January report knocked as much as $153 billion off the Adani Group’s value, and set off regulatory probes in India. That control over parts of the country’s transport links, coal production and private electricity supply has proved a trump card for the Adani Group as it attempts to recover from the fallout of fraud allegations by Hindenburg Research. Over three decades, billionaire Gautam Adani built a vast infrastructure network across India that’s become indispensable for both local businesses and foreign firms like Apple Inc.
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