This is to clarify that the FPIs in question have been investors in Adani Enterprises Ltd for more than a decade. Demergers (discussed below) have resulted in the ownership mirroring in the portfolio companies.
All our businesses were incubated by the Adani Enterprises Ltd. the flagship company, established in 1994, and during the last seven years Adani Ports, Adani Transmission, Adani Green Energy and Adani Gas Ltd were demerged and listed on Indian Exchanges.
The Adani Group’s focus is the business performances of its listed portfolio
In FY 21 Adani Ports & Special Economic Zones Ltd. handled 247 MMT of cargo, thus registering a CAGR of 3 times higher than industry growth. It has best in class EBITDA margin (70%) and has registered volume CAGR of 10 % during the last five years.
In the renewable space, Adani Green Energy Ltd (AGEL) has today contracted capacity of 25 GW and is ranked the largest solar power developer in the world with a best in class EBITDA margin of 89%.
In the transmission business, Adani Transmission Ltd operates the largest private transmission network in India of over 17,000 ckm with more than 99.9 % availability. Its consumer-facing arm, Adani Electricity Mumbai Ltd., touches more than 3 million homes and 12 million customers in Mumbai.
Likewise, Adani Total Gas Ltd., currently has presence across 38 Geographical Areas registering 41% EBITDA which again is the best in the industry.
Adani Enterprises Limited, continues to nurture new businesses such as Airports, Roads, Data Centre, Solar manufacturing and offers immense value to the investors when these entities get listed separately.
Long-term strategic partners
The Adani Group portfolio continues to attract investors and strategic partners both at primary and secondary level.
- APSEZ: JV partners namely MSC and CMA-CGM at Mundra port
- AGEL: French energy giant Total Energies both in operational and equity (over $3Bn)
- ATL: Qatar Investment Authority Qatar's sovereign wealth fund, invested close to USD 430 Mn in Adani Electricity Mumbai Ltd, a 100% subsidiary of Adani Transmission Ltd.
- ATGL: French energy giant, Total Energies taking 37.4% equity
- AEL: 50% JV with Wilmar Group
Performance of Adani Group portfolio during COVID 19 – A snapshot
FY 2020: EBITDA Rs. 26,400 Cr
FY 2021 EBITDA Rs. 32,300 Cr (Growth of 22%)
Based on the current announcements and disclosures, similar growth is expected in March 2022. While Adani Ports has guided for a 11 to 12 % cargo volume growth, AGEL operational capacity will increase by over 5 times from under 2 GW in FY20 to nearly 10 GW in FY22. Similarly, Adani Transmission ltd., will add 2500 ckm and cross 20,000 ckm of transmission assets. This will ensure continued outperformance by Adani listed entities in FY22 and beyond.
ConclusionsAdani portfolio continues its journey of exponential growth across all verticals thus ensuring immense value to its stakeholders. We urge all our stakeholders not to be perturbed by market speculations.