Gautam Adani puts plan to take Group valuation to $1 trillion😳🧐

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The value of the group’s listed entities has zoomed from $16 bn in 2015 to $240 bn in 2022,

But billionaire Gautam Adani’s ambition is to take his group’s value to $1 trillion.

Adani Group will play to its strengths and focus on its core verticals – mining, infrastructure, and utilities.

Businesses that fit well into the group’s superstructure will become adjacencies like cement, copper, and aluminum.

The Group is looking at new businesses like new energy, airports, and roads over the next 2-4 years.

On 10 October, Chief Financial Officer Jugeshinder ‘Robbie’ Singh,

He said: “Whatever you see today, it might look like it has just happened in the last one or two years, but in reality what we have done – Both GSA (Gautam Shantilal Adani) and myself – we discussed this in 2015.

we believed that if we had assets and companies of that type we should really be a $1 trillion group.

He building its infrastructure and logistics portfolio in a manner that it could emerge as the top five globally and not just India’s largest player.

In 2020, Adani Green became the largest solar company in the world.

Adani Green, Adani Ports, Adani Total, Adani Transmission, and Adani Power are in total among the world’s top five infra portfolios. It is the fastest-growing portfolio.

According to Gautam Adani in his AGM speech, “The financial year 2021 was a transformational year.

No company runs a port business of such scale and reach.” The company added LNG and LPG businesses to the portfolio.

In all, Adani’s ports business moves $100 bn worth of trade every year.

Most businesses of the Adani Group enjoy the best-in-class margins.

The businesses are profitable and efficient and generate high levels of free cash flows.

The group currently generates earnings before interest, tax, depreciation and amortization of $8 bn.

Of this $8 bn, approximately $3.6 bn is spent on servicing debt (interest and principal).

Of the remaining $4.4 bn, the group spends $700 mn towards tax.

Businesses spend $1.8 bn towards CAPEX, while the remaining group is unable to deploy.

While in absolute terms the Group’s debt has gone up, but so has its EBITDA, explains Singh. Over the last nine years, the Group’s EBITDA has grown 23% CAGR, while debt has grown by 12%.

Total Energies has invested $4 bn across Adani Group companies and it is the French company’s largest single minority position in the world. IHC has also invested $2 bn across group companies.

The group has not only raised $16 bn capital in the last three years to fuel growth but has also run one of the largest equity capital programs, which is almost the same size as that of Reliance Jio.



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