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Adani to invest $120 bn in capex over 5 years

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In short

The Indian conglomerate plans to channel the vast majority of its massive capital outlay into energy, transport, and logistics infrastructure. Flagship firm Adani Enterprises has separately outlined its own annual capital expenditure of 35,000 to 40,000 crore rupees over the next two years. Alongside doubling its asset base to 18 trillion rupees, the group anticipates generating between 2.6 trillion and 3 trillion rupees in core earnings over five years.

Key points

  • The five-year investment program is projected to double the conglomerate's asset base to…: The five-year investment program is projected to double the conglomerate's asset base to 18 trillion rupees.
  • The company anticipates generating between 2.6 trillion and 3 trillion rupees in core ear…: The company anticipates generating between 2.6 trillion and 3 trillion rupees in core earnings over the period.
  • Capital deployment will average more than $20 billion annually across the conglomerate's…: Capital deployment will average more than $20 billion annually across the conglomerate's diverse businesses.

Sources checked by our analysis pipeline: 1

Adani Group, one of India's largest conglomerates, has been expanding aggressively across infrastructure and energy, with investments spanning ports, airports, power, renewables and other sectors.

Also Read: Adani Enterprises plans Rs 35,000-40,000 crore annual capex in next two years

"Over the next five years, we plan to invest about $120 billion - over $20 billion a year - across all our businesses," Pranav Adani, a director at the group's flagship firm Adani Enterprises and the nephew of group chairman Gautam Adani, told Fortune India.

Broadly, about 70% of these investments will be in energy, about 20% in transport and logistics and 10% in business adjacencies such as cement, copper, and aluminium, the report said.

Also Read: Adani Ports makes $3.3 billion play for Evos Terminals

Adani Group did not immediately respond to Reuters' request for comment.

The report said the group estimates these investments will help double its asset base to 18 trillion rupees ($191.64 billion) and generate core earnings, or earnings before interest, taxes, depreciation and amortisation, of 2.6 trillion to 3 trillion rupees in five years.

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