Growing Power of the Adani Group in the Indian economy: Is Adani on his way to become the new Ambani?

People of the country had a fair idea that the coming time is going to be the time of these big private companies. What we did not know, however, was that time is now. Anybody who has the slightest idea of what is going on in the country knows that all we get to see in the news days is one or the other achievement of the very famous Mr Adani, who has now claimed his position as a household name in the country. The news of Gautam Adani earning more than any man of the planet last year feels like an old feat now, especially after all these new achievements coming across Mr Adani’s way, which we’ll talk about in the coming sections. Be it market capitalisation of Adani industries or the share values of their subsidiaries, the only way we’re witnessing them go is straight to the roof. Why?, You might ask. Well, let’s find it out together.
A recent development in one of the Adani industry subsidiaries- Adani Green Energy Ltd included a letter of award to the private company for 300-megawatt wind power projects. Keeping in view the fact that sustainable is the future, Adani Green Ltd has been a major contributor to the cause and has been the centre of attraction for investors, with the share rising over 500 per cent last year. With the recent achievement, the share staying true to its last year’s record has picked pace and hit an upper circuit of about 5 per cent and now stand at an all-time high of Rs 1,252.2 apiece. This recognition came from the deal made by the Adani Renewable Energy Holding Fifteen Ltd. With the Solar Energy Corporation of India. The deal included a project for setting up a 1,200-megawatt interstate transmission system connected to wind power projects. The fixed tariff for this project capacity is Rs 2.77 per kWh for a period of 25 years. With this, Adani Green’s total renewable capacity stood at 15,165 MW, of which 3,395 MW renewable plants are operational and 11,770 MW projects are under implementation.
Another feather in the hat of Adani Industry achievements is fetched by Adani Electricity Mumbai Infra Ltd who recently got the transmission license by the Maharashtra Electricity Regulatory Commission for 25 years that enabled the firm to bring 1000 megawatt, or in particular 33 per cent, more electricity to Mumbai in an attempt to cater the increasing energy demand of the state. Note that, however, this would lead to a 6 to 7 paise per unit cost increase for the consumer. Well, we said good news for the firm, we never really mentioned the good of the people, looks like nobody wants to talk about that anymore. Mumbai consumes 2,500-3,000MW during peak load, which goes up to 3,500 megawatts during peak season i.e. summers. With demand expected to increase in the coming months, it will help the city to have much more power. This high power is also said to come with fewer power cuts even if there is power outrage in MMR or anywhere else in the state. It is because the said license will help Adani industries establish a high voltage direct current link of 80 km between Maharashtra State Electricity Company’s 400 kilowatt Kudus and Adani Mumbai’s 220 kilowatt Aarey Substation. This will be the first with an underground HDVC cabled system.
Don’t get tired of the achievements already because there are more. Gangavaram Port Limited, which is a corporation that deals in handling of various types of dry bulk and breakbulk cargo, is all set to have its majority 58 per cent stake to be acquired by Adani Ports. The acquisition agreement got signed mere days ago and the news has also already caused hassle in the investor market, as was suspected. “The said acquisition is in line with the Company’s strategy of the east coast to west coast parity and will provide an access to growth from new hinterland markets as it has coverage in resource-rich and industrial belt in Eastern, Central and Southern India”, said the officials of Adani Port.  “With a master plan capacity for 250 MMTPA with 31 berths, Ganagvaram Port Limited (GPL) has sufficient headroom to support future growth,” the company said. With the acquisition said to be completed in the next 6 months, more developments in the matter can be expected. Handing over more and more water power to Adani Enterprises.
With all these achievements and acquisitions, Adani Enterprises witnessed a 10 per cent jump in its shares, with the amount of Rs 1,086.35 hitting a 52-week high. These high share values are being complemented with an increase in the share value of other subsidiaries too and the market capitalisation is also seeing an upward trend. Consider, for example, the fact that Adani Green recently became the first group Co to join Rs 2 trillion market capitalisation club. Not only that, in the past one year, Adani Total Gas has seen its market value appreciate by 908 per cent, while that of AGEL (Adani Green Enterprises Limited) has soared by 873 per cent. Apart from some recent ones mentioned above, other contributions like Adani Road Transport bagging a project in Gujarat under the Toll Operate Transfer mode has also played their part in soaring the wealth, valuation, popularity and power of the Adani Group. Collaborations with international organisation like the recent Adani enterprise team up with the Italian firm Maire Tecnimont S.p.A.’s arms NextChem, Stamicarbon and MET Development (MET DEV) for the development of green hydrogen power projects has been one of the major conversation starters for the enterprise. What more is there in store for Adani Enterprises is yet to be seen, however, we can guarantee that the impact is going to be very significant. Well, isn’t this exactly how once a common businessman and chairman of Reliance Industries- Mukesh Ambani, took over our day to day lives? Spreading his legs in every business opportunity available from e-commerce to telecom and not to forget- oil and fuel. Looks like Adani is walking on a similar trajectory and is soon going to battle head-to-head with the current market king- Ambani.