Adani to Invest ₹1 Lakh Crore in Airports; Eyes Aggressive Bids in Next Privatisation Round

Adani to Invest ₹1 Lakh Crore in Airports; Eyes Aggressive Bids in Next Privatisation Round

Mumbai: Adani Enterprises is set to make a massive ₹1 lakh crore investment in airport infrastructure over the next five years, targeting 11 airports that the Indian government plans to lease to private players. This forms part of the group’s $11 billion expansion strategy in aviation infrastructure.

Adani Group: India’s Largest Airport Operator

Through Adani Airport Holdings Ltd (AAHL), the Adani Group controls a significant portion of India’s air traffic: approximately 23% of passenger movements and 33% of cargo traffic nationwide.

Jeet Adani, Director at AAHL, confirmed in an interview, “We will be bidding for all 11 airports under the next round of privatisations.”

Currently, the group operates seven airports across India and is about to operationalise its first greenfield airport, Navi Mumbai International Airport, scheduled to open December 25.

Navi Mumbai Airport: Key Details

·         Developer: Navi Mumbai International Airport Ltd (NMIAL)

·         Adani Stake: 74%

·         Initial Investment: ₹19,650 crore

·         Phase 1 Capacity: 20 million passengers per year

·         Future Expansion: Up to 90 million passengers annually

The airport aims to ease congestion at Mumbai’s existing airport and strengthen long-term regional connectivity.

Expanding Portfolio & Privatisation Plans

Adani Group also operates airports at:

·         Ahmedabad, Lucknow, Guwahati, Thiruvananthapuram, Jaipur, Mangaluru

·         Mumbai Airport acquired from GVK Group in 2021

The group plans to bid aggressively in the upcoming airport privatisation round. In 2019, Adani won six airports in the previous round of privatisations, highlighting its dominance in the sector.

The Civil Aviation Ministry has identified 11 airports for the next public-private partnership (PPP), while the National Monetisation Pipeline plans to lease 25 airports operated by the Airports Authority of India between 2022 and 2025.

IPO and Financial Outlook

Jeet Adani said there is no fixed timeline for an IPO of AAHL. The listing or potential de-merger will depend on milestones like the company becoming cash positive. Currently, AAHL is largely EBITDA positive, though significant capital expenditure continues to support expansion.

Focus on Airport Assets, Not Airlines

While India’s air travel market is booming—174 million passengers flew domestically in 2024, a 10% rise from 2023—Adani Group does not plan to enter the airline business. Jeet Adani stated, “Our core competency is creating hard assets on the ground and running them efficiently. Airlines require a different mindset, which we are not pursuing.”

Market Implications

Adani’s aggressive investment in airports signals a strong bet on India’s aviation infrastructure, leveraging rising air travel demand, government privatisation policies, and long-term asset creation. Analysts see this as a strategic move to dominate the private airport sector in India, positioning the group for continued growth in passenger and cargo operations.