Gautam Adani On How Diversifying Across Sectors Will Drive Growth

Gautam Adani. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Gautam Adani On How Diversifying Across Sectors Will Drive Growth

Billionaire Gautam Adani said his group’s bets to diversify across sectors and expand in related segments in each of those businesses will drive growth.

“Whatever businesses we are now in — seaports, airports, logistics, natural resources, thermal and renewable power generation, transmission, distribution, data centres, defence, agri and food, real estate, city gas utilities, and several others — I believe all of them are individually high growth businesses,” Gautam Adani, chairman of Adani Group, said during the annual general meeting of Adani Ports & Special Economic Zones Ltd.

The group has a distinctive ‘Adani Model’ that combines the power of adjacencies and bridges business-to-business-to-consumer capability, he said, referring to expansion into related sectors and building an integrated model that covers entire chain from origin to end user. That, he said, has put the company on a path to “infinite possibilities”.

“I know of no other such growth model that offers unprecedented and ever-increasing access to an unlimited B2B (business-to-business) and B2C (business-to-consumer) market for the next several decades,” he said.

Pandemic Impact

Adani said the past year was an extraordinarily strong period for businesses that innovated their way through these unprecedented conditions. The performance of his listed entities, according to him, crossed $100 billion, or Rs 7.4 lakh crore, in market cap in the first week of FY22.

“This valuation milestone is a first for a first-generation Indian company.”

For the financial year 2021, consolidated Ebitda for the group’s listed portfolio was more than Rs 32,000 crore, a year-on-year growth of 22%, Adani said.

He also said that some of the media reports on the group companies caused unexpected fluctuations in the market prices of Adani stocks.

Other Highlights

  • Market share of Adani Ports & SEZ’s port-based cargo business rose to 25%, while container market share grew to 41%.

  • Adani Green Ltd. achieved targeted 25 GW capacity, four years ahead of schedule.

  • One in every four passengers in India flies through an Adani airport. No airport business in any large country has achieved a 25% share of the total passenger traffic.

  • Adani Enterprises Ltd. remains unrivalled and continues to operate as one of the world's largest proving grounds for new ideas and business models.

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