Adani Enterprises plans to invest about Rs 1 lakh crore (around $11 billion) in its airports infrastructure business as the conglomerate looks to expand its footprint across India.The group will bid for all 11 airports that the central government plans to lease out to private players, Jeet Adani, director at Adani Airport Holdings(AAHL), told news agency PTI
Expansion push amid airport privatisation
India is accelerating airport privatisation as it aims to increase the total number of airports to 350–400 by 2047 from the current 163. As part of this push, the government plans to lease out 11 airports, including those in Amritsar and Varanasi.
“We will be bidding for all (11) of them,” Jeet Adani said.
Adani Airports currently operates seven airports, including Mumbai and Ahmedabad, making it the largest airport operator in India by number.
Rs 1 lakh crore capex planned over five years
Jeet Adani said the company will spend around Rs 1 lakh crore over the next five years on terminals, runways, aircraft-handling facilities and passenger amenities.
“On the airport side, Rs 1 lakh crore in the next five years,” he told news agency PTI.
When asked about entering the airline business, Jeet Adani said the Adani Group has no plans to launch an airline, a space currently dominated by IndiGo and Air India.
IPO plans, demerger seen as preferred route
While the investment numbers are significant, Jeet Adani did not specify how the expansion will be funded. He said Adani Airports is preparing for an initial public offering by the year ending March 2028.
He added that a demerger from flagship Adani Enterprises would be the preferred route.
“I personally believe a demerger is the better route as it unlocks greater value for Adani Enterprises shareholders,” he said, adding that the option of bringing in strategic investors remains open, although no formal discussions have begun.
Navi Mumbai airport key to growth strategy
A major focus of Adani Airports’ expansion strategy is the Navi Mumbai International Airport, which is scheduled to begin commercial operations on December 25.
The first phase of the project represents an investment of around Rs 200 billion, while the second phase will involve an additional Rs 300 billion.
By 2030, the airport is expected to feature a Rs 50 billion “Aero City” comprising hotels, premium and budget dining options, and advanced passenger facilities, including a baggage-tracing system.
IPO linked to three milestones
Jeet Adani said the timing of the IPO will depend on three key milestones: successful operations at Navi Mumbai airport, completion of surrounding commercial development, and achieving financial self-sustainability.
AAHL is currently EBITDA positive but has yet to turn cash-flow positive. The company expects to reach cash-flow positivity within the next three years.
Foray into aviation services
Beyond airport operations, the Adani Group is also looking to expand into aviation services. It plans to bid for state-owned engineering services firms to capture heavy maintenance and engine overhaul work that is currently outsourced overseas.
“Right now, India only does very basic line maintenance,” Jeet Adani said. “The meatier part of the business like heavy maintenance and engine checks today flows out and that is something we want to focus on.”