The Adani Group, India's fifth-largest business conglomerate by market value, has unveiled an ambitious plan to invest a staggering Rs 1 lakh crore in the country's aviation infrastructure over the next five years. A central part of this massive outlay is the group's intention to bid for nearly a dozen airports that the government has slated for privatisation.
Massive Investment for Expansion and Bids
Jeet Adani, director at Adani Group who oversees its vast private airport network, confirmed the investment strategy. He stated that a portion of the Rs 1 lakh crore fund has been specifically earmarked for the upcoming round of airport bidding. This follows the Indian government's announcement earlier this year to lease out 11 airports, including key ones in cities like Amritsar and Varanasi.
The colossal investment will be financed through a combination of debt and equity. The funds are earmarked not just for acquiring new airports, but also for constructing new terminals, upgrading aircraft-handling facilities, and enhancing passenger amenities across the group's existing airport portfolio.
From Six Airports to a Potential Listing
The conglomerate's foray into the airport business began in 2019 when it won six airports in the government's initial privatisation drive. Its footprint expanded significantly two years later with the acquisition of the prestigious Mumbai International Airport from the GVK Group. The group is now on the cusp of operationalising its first greenfield project, the Navi Mumbai airport, scheduled to commence operations next week.
Jeet Adani, the 28-year-old younger son of chairman Gautam Adani, is also steering the airport business towards a significant corporate milestone: a potential stock market listing by 2030. The plan involves a demerger strategy, a route the group has successfully used before to list businesses like power transmission and renewable energy, bypassing traditional IPOs.
Path to Financial Self-Sufficiency
Before a public listing can happen, the airport unit must achieve key financial targets, most notably turning cash positive. Currently housed under the flagship Adani Enterprises, the airport business is already EBITDA positive, having reported an operating profit of Rs 3,480 crore in FY25.
Jeet Adani explained that the business is expected to become cash positive once the heavy capital expenditure cycle slows and revenues begin to flow from new assets. Key revenue streams will include operations from the Navi Mumbai airport, city-side developments like retail, food and beverage outlets, hotels, and ongoing terminal expansions. Achieving this would mean the unit no longer requires financial support from its parent company.
A Focused Domestic Strategy
For the immediate future, the group's airport ambitions are firmly concentrated within India. Jeet Adani stated that the group will focus on the domestic market for the next five years. This decision comes in the wake of the cancellation of an airport contract in Kenya last year, which faced criticism over transparency issues, leading the group to recalibrate its international strategy.
The Adani Group's planned mega-investment underscores its deep commitment to shaping the future of India's aviation infrastructure, aiming to build a network that rivals the best in the world while capitalising on the country's growing air travel demand.
