Adani Group’s Ambitious Plan to Transform India’s Airport Infrastructure
Adani Enterprises, the flagship company of the Adani Group, is set to revolutionize India’s airport business with an investment of Rs 1.75 lakh crore ($21 billion) over the next decade. This ambitious move was revealed by Jugeshinder Singh, the group’s chief financial officer.
In an exclusive interview with ET, Singh disclosed that Adani Airport’s management is gearing up for city-side development at all airports under its umbrella. The company’s strategic focus is to boost revenue from the non-aero segment, aiming for a 75% contribution to overall revenue and operating profit. While no specific timeline was provided, this goal signifies a significant shift in the business model.
Currently, the aero to non-aero revenue ratio stands at 75:25 at six airports managed by Adani Airport Holdings. Interestingly, Mumbai airport maintains a 50:50 ratio, showcasing a balanced revenue stream.
Adani Group’s Flight Path
Adani Airport Holdings currently operates seven airports across India, including Mumbai, Lucknow, Ahmedabad, Jaipur, Guwahati, Thiruvananthapuram, and Mangalore. The company has embarked on Phase I of city-side development covering 98 acres at five key airports.
Adani Enterprises’ latest annual report highlights its vision to redefine India’s airport infrastructure sector through gateway development, regional expansion, enhanced customer focus, and deep-seated digital technology investments.
The impending growth trajectory for Adani Airport is buoyed by the government’s endorsement of the public-private partnership model and India’s projected ascent as the world’s third-largest aviation market. The company is embracing the concept of smart cities resembling GMR Aerocity in New Delhi, offering a mix of food joints, retail brands, hotels, and premium office spaces near airport terminals.
Furthermore, Adani Airport is tirelessly working on the Navi Mumbai International Airport project, slated for completion by the end of this year or early next year. Singh revealed plans for independent listing of the airport business by 2028, aligning with Adani Group’s demerger strategy for incubated businesses within Adani Enterprises.
