Our Bureau
Ahmedabad
The Adani group is planning a big expansion over the coming years. Jugshinder (Robbie) Singh who is the Chief Financial Officer of the Adani Group has stated that the group is looking into a six year window in which the company is looking at a capital expenditure plan of $100 billion. This will be the largest expansion project in the history of any private group in India.
According to Mr. Singh, the Gautam Adani-led Adani Group is planning the capex through three sectors majorly – Energy business, Construction material business and Mining and Metal business. The energy business is going to take up a major chunk in the capex as it will have 83-85% of the total investment. Around 10% of the capex will be used by construction material business and the rest 6-7% will go to the mining and metal business.
Singh stated that the majority of the investments in the energy business will go towards developing more renewable energy capacity and storage. They have envisioned that the renewable energy capacity of the group will grow seven times its size as of now. This doesn’t mean that the conventional energy capacity will go unnoticed. The group has planned to double the capacity for that as well.
The CFO of Adani Group has informed that the group is looking to increase the investments of the group to climb to Rs 1.5-1.6 lakh crore every year from Rs 1.1-1.2 lakh crore last year. Rs. 80,000 crore which is basically half of the capital expenditure plan will be generated through internal cash flows. Around Rs. 15,000 crore will be generated through settlement payments whereas Rs. 12,000-14,000 crores will be generated through the profits by EPC.
