Ahmedabad, June 12, 2025: The Gautam Adani-led Adani Group has announced a groundbreaking $100 billion capital expenditure (capex) plan, the largest by any private conglomerate in India’s history, to be executed over the next six years. This ambitious greenfield initiative, focused on organic growth rather than acquisitions, will significantly expand the group’s operations in energy, construction materials, and mining, reinforcing its position as a leader in India’s infrastructure and energy sectors.
Breakdown of the Investment
The $100 billion capex, equivalent to approximately Rs 8.4 lakh crore, will be allocated across three key sectors, with the energy sector commanding the lion’s share:
- Energy (83-85%): The bulk of the investment, roughly $83-85 billion, will target energy projects, with a strong emphasis on renewable energy capacity and storage. This includes scaling up Adani Green Energy’s operational capacity, which stood at 14.2 GW as of March 2025, by sevenfold. Conventional energy capacity, managed by Adani Power (16.54 GW as of March 2025), is also set to double, balancing renewable and thermal growth to meet India’s energy demands.
- Construction Materials (10%): Approximately $10 billion will be directed toward expanding the group’s cement and construction businesses, including subsidiaries like Ambuja Cements and ACC Ltd., to strengthen its market presence in India’s infrastructure boom.
- Mining and Metals (6-7%): Around $6-7 billion will be invested in mining operations, including coal and other minerals, to support the group’s resource-driven ventures both domestically and internationally.
The group plans to ramp up its annual investment to Rs 1.5-1.6 lakh crore ($18-19 billion) from Rs 1.1-1.2 lakh crore last year, reflecting a significant escalation in its growth strategy.
Financing the Ambitious Plan
Adani Group’s Chief Financial Officer, Jugshinder (Robbie) Singh, outlined a robust funding strategy to support this massive capex. Approximately Rs 80,000 crore of the annual budget will be generated through internal cash flows, with Rs 15,000 crore coming from settlement payments and Rs 12,000-14,000 crore from the group’s engineering, procurement, and construction (EPC) profits. This leaves an external funding requirement of Rs 40,000-50,000 crore annually. With an average debt repayment of Rs 24,000 crore per year, the net debt increase is projected at Rs 25,000 crore annually, ensuring that debt growth remains significantly lower than the group’s overall expansion.
The debt structure is diversified, with 40% sourced from domestic banks, 40% from global banks and financial institutions, and 20% from domestic capital markets, providing flexibility and resilience in financing. Singh emphasized that the group expects a $16 billion return on capital over the six-year period, underscoring the plan’s potential for sustainable profitability.
Strategic Goals and Sectoral Impact
The capex plan is designed to achieve three core objectives: enhancing organizational capabilities, advancing technological innovation, and developing a robust vendor ecosystem. In the energy sector, the focus on renewables aligns with India’s ambitious target of 500 GW of renewable energy capacity by 2030, which requires annual investments exceeding $150 billion. Adani Green Energy’s projects, such as the world’s largest renewable energy park at Khavda, Gujarat (targeting 17 GW), will play a pivotal role in this transition. The group’s investments in green hydrogen, including a planned 10 GW solar panel manufacturing facility, a 10 GW wind turbine factory, and a 5 GW hydrogen electrolyzer plant, aim to position India as a potential net energy exporter.
In construction, the group’s acquisitions of Ambuja Cements and ACC Ltd., valued at $10.5 billion, have bolstered its position in India’s cement industry, with over 90% of production now using blended cement to recycle waste materials like fly ash and slag. The mining segment, though smaller, includes controversial projects like the Carmichael coal mine in Australia, fully financed by Adani Group resources despite environmental criticism over its impact on the Great Barrier Reef.
Market and Governance Context
The announcement, made by Singh in an exclusive interview, triggered a mixed response in the stock market, with Adani Ports and Adani Enterprises gaining 0.57% and 0.72% respectively on June 12, 2025, while other group stocks showed varied performance. The plan comes amid heightened scrutiny of the Adani Group following allegations of fraud and bribery in a U.S. Securities and Exchange Commission (SEC) case, which led to a 16% drop in Adani Green Energy shares on November 20, 2024. Despite these challenges, Singh defended the group’s governance, stating, “Our compliance frameworks are robust and non-negotiable,” and highlighted a healthy net debt-to-EBITDA ratio of 2.6x in FY25.
Looking Ahead
The $100 billion capex plan underscores Adani Group’s commitment to driving India’s infrastructure and energy transition, with a focus on sustainable growth and technological innovation. By prioritizing greenfield projects and leveraging internal cash flows, the group aims to minimize reliance on external debt while achieving significant scale. However, ongoing regulatory challenges and environmental concerns, particularly around coal-related ventures, may test the group’s ability to execute this vision seamlessly. As India’s infrastructure landscape evolves, Adani’s investments are poised to reshape the energy, construction, and mining sectors, aligning with national goals for decarbonization and economic growth.
Last Updated on: Thursday, June 12, 2025 3:38 pm by Lokram Chittiboina | Published by: Lokram Chittiboina on Thursday, June 12, 2025 3:38 pm | News Categories: News
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