The Adani Group has unveiled plans to invest approximately ₹60,000 crore in expanding its existing airport portfolio over the next 5-10 years. This announcement was made by Karan Adani, the Managing Director of Adani Ports and Special Economic Zone Ltd, during an event.
The investment strategy entails allocating around half of the total amount to enhance terminal and runway capacities over the initial five years. The remaining funds will be channeled into the city-side development of these airports over a ten-year period. This massive infusion of capital comes in addition to the group’s already planned ₹18,000 crore investment in the upcoming Navi Mumbai airport project.
Speaking at the event, Karan Adani highlighted that the funding for these expansions will be sourced from the internal accruals of the parent company, Adani Enterprises Ltd. As of now, the group has not finalized any concrete plans regarding the listing of its airport subsidiary, Adani Airport Holdings Limited.
The Adani Group presently operates airports in key cities such as Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. With the exception of Mumbai airport, acquired from the GVK group in 2021, the rights to upgrade and operate the remaining six airports were secured between 2020 and 2021 for a duration of 50 years.
The inauguration of a new terminal at Lucknow airport by Prime Minister Narendra Modi marked the backdrop for Karan Adani’s statements. Over the weekend, PM Modi also inaugurated airport projects worth ₹9,800 crore from Azamgarh in Uttar Pradesh. These projects include new terminal buildings for several airports across the country, with foundation stones laid for upcoming terminals in other cities.
Karan Adani outlined the group’s strategic vision for the airport business, emphasizing the role of airports in smaller cities as future hubs for international passengers. In alignment with this vision, the Adani Group aims to more than double its airport capacity by 2040.
Currently, the combined capacity of the group’s airports stands at 110 million passengers annually (MPA). This capacity is slated to expand up to three times, with a target of approximately 300 MPA by 2040. The growth will occur in phases, with Lucknow Airport’s new terminal capacity set to increase from 8 million passengers per annum to 13 million in the next phase, ultimately reaching 38 million annually by 2035.
In addition to expanding passenger capacities, the Adani Group is also focusing on developing the city-side infrastructure of airports to boost ancillary revenues. The group plans to develop over 160 acres at Mumbai airport, 100 acres in Lucknow, 200 acres in Navi Mumbai, 17 acres in Jaipur, and 2 acres in Thiruvananthapuram for aviation-related businesses such as hotels and offices.
The ambitious investment plan unveiled by the Adani Group signals a substantial commitment towards India’s aviation sector, with a clear vision for enhanced passenger capacities and airport infrastructure development in the coming years.
