Adani Group is prioritizing significant domestic expansion over international airport plans, committing ₹1 lakh crore (approximately $12 billion) to grow its Indian airport business by three to four times in the next five to six years. The company's director, Jeet Adani, stated that opportunities within India are so substantial that they will re-evaluate international endeavors after four to five years. Previously explored international opportunities in regions like West Asia, Kenya, and Southeast Asia have been deferred. Adani Airports currently operates eight airports, handling approximately 88-90 million passengers last financial year, with projections to reach around 150 million passengers in the next three to five years even without new acquisitions.
The investment will be channeled into developing new airports, enhancing existing ones, and expanding infrastructure, including terminals, runways, and aircraft-handling facilities. A major part of this growth will come from the Navi Mumbai International Airport, expected to open on December 25, which will initially add 20 million passengers to their portfolio. The group also intends to aggressively bid for 11 government-identified airports slated for privatization, with an overall goal of leveraging the government's strategy of monetizing profitable airports and developing new ones in less commercially viable regions.
The funding for this expansion will primarily come from internal accruals, supplemented by project-level debt and some primary equity raises. The airports unit is currently EBITDA positive and is projected to become cash positive within 18-24 months, reducing its reliance on Adani Enterprises for growth capital. While a listing of the airports business is planned, possibly by around 2030, the method (IPO, demerger, or anchor investor) remains fluid. The company also plans to shift its revenue mix, with aeronautical revenues expected to shrink to about 10% of total revenues, while non-aeronautical businesses (retail, F&B, lounges) will contribute 40-50%, and city-side development 30-40%.
