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Adani Group revives Mundra PVC project, gets credit line worth Rs 14,000 cr

June 07, 2023

After a four-month suspension, Adani Group has revived its investment plan for India's largest polyvinyl chloride (PVC) plant, Mundra Petrochem Ltd, Mint reported on Wednesday. For this, it has received in-principle approval for a credit line of up to Rs 14,000 crore from several banks. The project's total cost is expected to be around Rs 35,000 crore.

A person aware of the matter was cited in the report as saying that at least half a dozen local banks are part of the consortium that has approved lending money to the group. Most of the funds may come from state-run lenders, and private lenders will lend at least Rs 4,500 crore. The group will seek an additional $2 billion for the Mundra project after fully utilizing the initial $2 billion sanctioned.

Earlier this year, Adani Group announced that it was putting major equipment procurement and site construction activities for the Rs 34,900 crore petrochemical project at Mundra on hold as the project had "not yet tied up finances".

The group's flagship Adani Enterprises Ltd (AEL), incorporated a wholly-owned subsidiary, Mundra Petrochem Ltd, in 2021 to set up a greenfield coal-to-PVC plant at Adani Ports and Special Economic Zone (APSEZ) land in the Kutch district of Gujarat.

"The financial closure of the Green PVC project of Mundra Petrochemicals Limited ( MPL) is pending with the financial institutions and it is in their active consideration," Adani Enterprises had said in a regulatory filing.

Due to recent market developments, the management has decided to continue with the engineering design and other activities, including financial closure in an accelerated mode, it added.

"Pending the above, it has been decided to keep the major equipment procurement and site construction activities on hold," AEL said. "We are hopeful to obtain financial closure for the project in the next six months post which full-fledged procurement and construction activities at the site will commence. We are committed to completing the project in an expeditious manner so as to meet the original timelines."

After Hindenburg Research's January 24 report alleged accounting fraud, stock manipulations and other corporate governance lapses, chopping off about $140 billion from the market value of Gautam Adani's empire, the apples-to-airport group has drawn a comeback strategy to claw back and calm jittery investors and lenders by repaying some loans to address concerns around debt and consolidating operations.

The group has denied all allegations levelled by Hindenburg.

The main goal of the Mundra unit was to have a PVC production capacity of 2,000 kilo tonne per annum (KTPA), requiring 3.1 million tonnes per annum (MTPA) of coal to be imported from Australia, Russia and other countries.

Gautam Adani says will invest $4 bn in petrochemical complex, launch 'super app': Report

November 25, 2022

Source: Business Today

Billionaire Gautam Adani is planning to invest more than $4 billion in a petrochemical complex in Gujarat, he said in an interview with the Financial Times on Friday.

Adani, Asia's richest person, plans to launch a "super app" in the next three to six months to connect Adani airport passengers with other Adani Group services, according to the report.

Adani denied that entering the petrochemical industry would put fellow billionaire Mukesh Ambani in direct competition. “There is no competition. India is a huge growth market and everybody is welcome," he added.

Speaking on NDTV acquisition, Adani said he viewed it as a "responsibility" rather than a business opportunity.

According to Gautam Adani, India's economy is expected to grow to $30 trillion by 2050, a nearly 10-fold increase from its current size, as a result of increased consumption and social and economic reforms.

Within the next ten years, the country's gross domestic product may begin to increase by $1 trillion every 12 to 18 months, increasing its appeal as a location for investments, the billionaire predicted at a recent conference in Mumbai. By 2050, he predicted that India's share of the global GDP will be higher than 20 per cent.

The coal-to-ports billionaire reiterated his group's dedication to investing $70 billion in a value chain for clean energy. By 2050, India's energy consumption is predicted to increase by 400 per cent due to economic growth, and the nation will go through an "unprecedented" energy transition to meet this demand, he said.

Adani group to invest $ 100 billion by 2022.

September 28, 2022

Source: Livemint

Billionaire Gautam Adani, the second richest person in the world, on Tuesday said his group would invest $100 billion over the next decade, primarily in energy transition and digital opportunities, as well as sectors such as aerospace and defence, metals and petrochemicals.

Adani has been aggressively expanding into new sectors, with his latest foray into the cement sector through a $6.5 billion acquisition of Ambuja Cements Ltd and ACC Ltd, instantly making the group the second-largest cement maker in the country.

The group also announced entry into the alumina and iron ore business with an investment of up to ₹57,575 crore. Starting as a commodities trading company in the late 1980s, the Adani group has, over the years, added ports, airports, power, renewable energy, gas distribution and data centre business to its portfolio.

“As a group, we will invest over $100 billion of capital in the next decade. We have earmarked 70% of this investment for the energy transition space. We are already the world’s largest solar player and intend to do far more. In this context, Adani New Industries is the manifestation of the bet we are making in the energy transition space. It is our commitment to investing $70 billion in an integrated hydrogen-based value chain," Adani said at The Forbes Global CEO Conference 2022 in Singapore.

Adani’s plans in the energy transition space include adding 45 gigawatts (GW) of hybrid renewable power generation capacity to augment its current capacity of 20GW.

He added that this would lead to the commercialization of three million metric tonnes of green hydrogen, with the group building three gigafactories in India.

The group is also building a 10GW silicon-based photo-voltaic value chain that will be backwards-integrated from raw silicon to solar panels, a 10GW integrated wind-turbine manufacturing facility, and a 5GW hydrogen electrolyzer factory.

“Today, we can confidently state that we have a line of sight to first—become one of the least expensive producers of the green electron—and thereafter—the least expensive producer of green hydrogen. It is an absolute game changer for India and opens up the unprecedented possibility that India could one day become a net energy exporter," Adani said.

Adani added that the group’s ambitions in digital transformation also seek to benefit from the energy transition adjacency.

“The Indian data centre market is witnessing explosive growth. This sector consumes more energy than any other industry in the world, and therefore, our move to build green data centres is a game-changing differentiator," he said.

The group plans to interconnect these data centres through a series of terrestrial and globally linked undersea cables drawn at its ports and build consumer-based super-apps that will bring hundreds of millions of Adani’s B2C consumers into one common digital platform.

“Once done, the monetization possibilities are endless. We also just finished building the world’s largest sustainability cloud that already has a hundred of our solar and wind sites running on it—all off a single giant command and control centre that will soon be augmented by a global A-I lab. These are just a few of the adjacencies that are being mainstreamed at our digital businesses at Adani," he said.

Adani added that India is set to witness multi-decade growth tailwinds, making it a relatively bright spot in the global economy amid the current turbulent environment.

“The real India growth story is just starting. This is the best window for companies to embrace India’s economic resurgence and the incredible multi-decade tailwind the world’s largest and most youthful democracy offers," the billionaire said.