How will the new business of Adani Group brighten Uttar Pradesh? | Gautam Adani plans to bring the Adani Group on the path of rapid growth.

 

How will the new business of Adani Group brighten Uttar Pradesh?

 

Even after the business shock of 2023, Gautam Adani is ready to venture into new businesses with the Adani Group. Even though the investigation is going on in the country and abroad regarding the Adani Group, the company is working with full vigor for its growth. The new business of the company will work to make Uttar Pradesh shine. 

Gautam Adani's Adani Group is going to build a big data center in Noida, Uttar Pradesh. According to the information, Adani ConneX has taken a loan of $ 213 million from the International Bank to build the data center. This project is a joint venture between Adani and EdgeConneX. 

According to the information given by Adani, the company will use this money to build data centers in Chennai and Noida. With a Chennai data center capacity of 17 MW and a Noida data center capacity of 50 MW, the company plans to build a 1000 MW data center in 10 years, which will almost double the current size of the overall industry, considering the growing demand. 

The capacity of the data center is measured based on the electricity used in it. The Adani company plans to make a double data center from it. Sanjay Bhutani, Senior Vice President and Head of Data Center Business, at Adani Connex, said, “We are building 1000 MW data centers. Today India's industry is 550 MW. Our business plan is to build a 1000 MW data center in the next decade". 

The company's first seven data centers will open in Mumbai, Chennai, Hyderabad, Delhi, Bangalore, and Pune. The six cities that will get the first seven data centers will have a total capacity of 450 MW in the next three years, while 550 MW will be in Tier II and III cities. 

According to marketing research firm  Erosion, India's data center market size was 447 MW in 2021, valued at US$ 10.9 billion, but is expected to grow to 550 MW now. According to the report, the government has given the status of digital infrastructure to data centers and seven states have already come out with data center policies.

 

Earlier, this joint venture Adani and EdgeConneX had announced plans to set up data centers in Chennai, Navi Mumbai, Noida, Visakhapatnam, and Hyderabad.  Adani Group had last year invested ₹ 2,500 crore to set up a data center in Noida Sector 80. 

The application was given to the UP government for the same. Now preparations are being made to work on it soon. With this, Adani will be seen making a mark in another sector in the coming times.

 

Gautam Adani plans to bring the Adani Group on the path of rapid growth:

 

The Adani Group is yet to fully recover from the crisis triggered by the Hindenburg Research report earlier this year. The biggest challenge for billionaire businessman Gautam Adani is to get his business back on track, and now in this effort, Gautam Adani has prepared a big plan. Gautam Adani plans to bring the Adani Group on the path of rapid growth.

 

Adani Group has set a target of achieving 20% annual growth in its pre-tax profit. The group plans to reach an EBITDA of 90 thousand crore rupees within the next 2 to 3 years. Adani Group told in an investor presentation that due to the rapid growth of its business from airport to energy, it will be able to reach this high level of pre-tax profit.

Earlier this month, the Adani Group repaid about $2.65 billion in debt. Gautam Adani has adopted a big strategy to reduce its debt to restore the confidence of investors after the shock after the Hindenburg report came out and the group has been largely successful in this strategy.

 

Gautam Adani, who has a presence in various businesses ranging from ports to energy, is now eyeing rapid growth in businesses like airports, cement, renewable energy, solar panels, transportation and logistics, power, and transmission. Adani Group's presentation said that many of Adani's new infrastructure investments will also start earning in the coming years. 

In the coming years, Adani expects an EBITDA growth of over 20%. The group's target is to reach an Ebitda of more than ₹90,000 crore in the next few years. In recent times, Gautam Adani has invested extensively in ports and has also completed projects like renewable transportation. 

Adani Group is expected to get good cash flow from businesses like airports and renewables. Its strong asset base has helped it create critical infrastructure and deliver strong asset performance over the past three decades. The Ebitda of the listed companies of Adani Group increased by 36% to ₹ 57,219 crore in the financial year 2023. 

Adani Group's core infrastructure business posted a robust 30% growth during this period and posted an EBITDA of ₹47,386 crore. Adani Group's coal infrastructure business comprises the energy, transport, logistics, and infrastructure ventures of Adani Enterprises.

 

The current business of Adani Enterprises has delivered Ebitda of ₹5466 crore registering a YoY growth of 59%. Based on this strong performance, Gautam Adani hopes that his growth will achieve 20% growth in the coming years and its Ebitda will cross the high level of 90 thousand crore rupees.

 

Since the report of Hindenburg Research, the market cap of Adani Group has come down by about $ 153 billion. Since then Gautam Adani has been busy handling his entire business. How successful Adani's efforts to achieve higher business goals will be remains to be seen.