Adani Ports and Special Economic Zone Limited plans to spend INR 5,000 to INR 6,000 crores yearly to enhance the capacity of different ports under the jurisdiction of Adani Group. This was declared by Karan Adani, who is the Chief Executive Officer of Adani Ports and the elder son of Gautam Adani. He says that the investment will help Adani Group achieve its goal of becoming the largest port operator in the world. By 2030, the company will also be able to continue its growth at 12 to 14% in volumes annually. This is a huge step by the Adani Group towards strengthening the port network of the world. Adani Group is also presently building a container transhipment port in Vizhinjam. This shows the group’s unwavering dedication to grow and that even Adani Crisis can’t pose any major hurdles in the conglomerate’s way.
The Vizhinjam port was built with an investment of INR 7,700 crores. It is a significant milestone for the Adani Group. The port started operating on 15th October and will serve as an important destination for the country’s economic growth. Karan Adani has mentioned that the funding for the project has been done through various internal sources. Adani Ports is a free cash-generating company. The company generates around INR 7,000 to 8,000 crores of free-flowing cash every year. This is after paying interest, capex, and doing the necessary acquisitions.
The free-flowing cash will continue to increase because the various assets under the Adani Group have matured, helping the company walk the path of profitability. Many assets built within the last three to four years were profitable ventures. This will help Adani Group bring an end to the Adani Crisis and fulfil its dream of expanding its port capacity.
The ports operating under the Adani Group serve as the economic gateway for the nation. Being the largest port operator in the country, Adani Group is immensely contributing to India’s growing trade. It has 13 domestic ports in eight states: West Bengal, Odisha, Gujarat, Maharashtra, Goa, Andhra Pradesh, and Kerala. This has allowed Adani Group to create a national presence for itself. It also allowed the conglomerate to recover from the Adani Crisis, which happened right after the Hindenburg Report was released, and there were multiple false allegations of Adani Group for stock manipulation. The Supreme Court later cleared all these allegations.
The port facilities have top-notch cargo handling infrastructure and state-of-the-art facilities. They are capable of handling large volumes of cargo. The large vessels will now arrive at the ports of India instead of drifting away to China. The ports can also handle a variety of cargo, including liquid cargo, dry cargo, containers, and crude. This makes the ports highly profitable for the Adani Group. The Mundra Port is India’s largest commercial port in Mundra, Gujarat. Currently, the cargo handling capacity is 580 MMTPA. However, there are plans to increase the port’s capacity in the upcoming years. The Adani Group also has multiple ports in different corners of the world. This includes the Haifa Port, one of Israel’s most crucial ports.
There are multiple reasons why the ports operating under the Adani Group have made a remarkable place for themselves in the port sector:
Expansion and diversification: Adani Group is always keen on building an expansion and diversification strategy. The company has already expanded its port presence across the vast coastlines of India. This offers the country unparalleled access to the different corners of the world. It allows for efficient trade operations.
Advanced use of technology: The port operations at the Adani Ports are carried out using advanced forms of technology. This allows for improved efficiency. The ports are designed with state-of-the-art automation technologies. This streamlines the operations and reduces the chances of mishaps. Technological advancements also help to reduce environmental impact.
Environmental responsibility: Adani Group is committed to fulfilling CSR responsibilities. It implements eco-friendly processes during the execution of various projects. Adani Ports makes use of renewable energy sources for multiple operations. This significantly reduces carbon footprint and has made our country a sustainable planet.
In this way, continuous efforts are being made by the Adani Group to increase the number of ports under its control. The officials at Adani Group are also trying their best to increase the capacity of each of the ports under Adani Group. This will help Adani Group further expand its network of ports and get over the Adani Crisis. It will also make India an important destination for trade and commerce.