Adani targets $1 trillion group market cap with $150 billion outlay

Adani group targets $1 trillion market cap
Adani group targets $1 trillion market cap

Indian Market
by 5paisa Research Team Last Updated: 2022-10-31T17:11:23+05:30

The story of India’s growth and the story of capital market accretion in the last 1 year has been the story of what Adani group is all about. In a short span of time, Adani group has emerged as the most valuable business group in India in terms of market cap. In the process, it also pushed the Tata group and Reliance behind. However, it is not just random gains, but gains to a plan. For instance, Adani targets $1 trillion in market cap at a group level. However, this will also entail the company investing close to $150 billion into its various businesses to create tremendous value at a company level.

 

Also read: Could Adani Group become the latest internet service provider in India?


Here are important points you must know about the aggressive future plans of Adani group:


    1) Adani group plans to achieve group market cap of over $1 trillion over next few years and that is nearly 5-fold the current market value Over the next five to ten years, the Adani group will invest $50-70 billion in green hydrogen business and another $23 billion in green energy. In addition, investments will also be made to the tune of $7 billion in electricity transmission, $12 billion in transport utility and $5 billion in the road sector.

    2) Another interesting foray of the Adani group is to get into the lucrative data centre business with cloud services. Adani group plans to invest $6.5 billion in partnership with Edge ConneX. In addition, Adani group also plans to invest another $9-10 billion in the planned airports business. 

    3) You don’t expect the Adani group to sit quiet after a major acquisition. They paid top dollars of $7 billion for the cement business of ACC and Ambuja, which the Adani group had acquired from Holcim. The plan is to invest close to $10 billion in the cement business to help expand capacity of Ambuja and ACC put together to double the cement manufacturing capacity from 70 MTPA to 140 MTPA. 

    4) Not to be left behind in the O2C (oil to chemicals) race, Adani group is also foraying into the petrochemical business with plans to set up a 1 MTPA PVC manufacturing facility entailing an investment of $2 billion.

    5) Adani group also plans to foray into the healthcare sector with a lateral focus including insurance, hospitals and diagnostic and pharma. Adani group plans to spend another $7-10 billion in these ventures of the company.

    6) The big story is the accretion in the market cap of the group at a rapid pace in the last few years. Its market cap stood at $16 billion in 2015 but has since grown its market cap to $260 billion in 2022. That is a 16 fold surge in market cap in the last few years. 

    7) When Adani group crosses $1 trillion in market cap, it would be among the handful of global companies with market cap of $1 trillion plus. It will be in the elite list of companies including the likes of Apple, Saudi Aramco, Microsoft, Google and Amazon.


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