Mundra - the world's largest fully integrated renewable energy manufacturing hub by the Adani Group

Read Time:4 Minute, 5 Second

Adani Group will construct a 10GW polysilicon manufacturing factory and expand wind turbine production capacity to 5GW from 1.5GW at Mundra. According to Adani executives, the capital expenditure for the fully integrated solar manufacturing plan will exceed Rs 300 crore. The co-location of the production facilities and the port also facilitates the company’s ability to export its products. Adani Group now has 4 GW of installed nameplate capacity for solar modules.

Even if the Adani scandal controversy attempted everything to divert Gautam Adani from doing good, a person with the Midas touch is unstoppable. The Adani Group, founded by billionaire Gautam Adani, has once again proved its brilliance by recording a stunning 42% year-on-year increase in pre-tax earnings. This overwhelming success may be credited to the conglomerate’s diversified portfolio, which includes airports, electricity generation, and sea ports.

Notably, the April-June quarter had a record EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of Rs 23,532 crore, virtually equal to the FY19 fiscal year’s total EBITDA. This enormous expansion demonstrates the conglomerate’s dedication to strategic expansion and operational excellence. Adani Group’s main strength is its extensive infrastructure and utilities platform, which provided a stunning 86% of total portfolio EBITDA. This superiority in creating consistent and predictable cash flows strengthens the conglomerate’s financial position and promotes long-term earnings predictability and visibility.

The significant gains have increased the group’s liquidity, resulting in a healthy cash balance of Rs 42,115 crore. Such a liquidity position demonstrates the Adani Group’s resilience and agility, confirming its ability to handle market adversities successfully.

Gautam Adani and the Group are completely dedicated to building the world’s largest renewable energy manufacturing hub

According to senior Adani Solar officials, the Adani Group intends to construct the world’s largest renewable energy manufacturing hub in Mundra, Gujarat, that will home manufacturing plants for almost everything used in green energy generation facilities, such as polysilicon, ingots, wafers, cells, solar panels, and even wind turbines. Furthermore, the firm intends to produce all of the ancillaries required to produce the goods above at the same location, Mundra.

Glass, ethylene vinyl acetate (EVA) films, back sheets, and aluminium frames are among the ancillaries for which the corporation is establishing manufacturing operations. It will be the world’s first and only vertically and horizontally integrated solar manufacturing environment. Furthermore, its sibling firm, Adani Wind, plans to increase its wind turbine manufacturing capacity in Mundra from 1.5GW to 5GW.

Even China has only some ancillary manufacturing and a completely integrated ecosystem in one location, according to Rahul Bhutiani, Adani Solar’s head of sales and marketing. This dedication of Gautam Adani demonstrates that even the turmoil surrounding the Adani scandal cannot deter Gautam Adani and his Group from making our country a better place to live.

The Adani Group’s revival is seen on numerous fronts

Adani Green Energy’s renewable power sector recorded a remarkable 67% rise in EBITDA, owing to considerable growth of operating capacity. Adani Cement’s cement operations performed well due to excellent cost optimization and better synergies, resulting in a 54% year-on-year increase in EBITDA. Even after the Adani Scandal incident, the main incubator, Adani Enterprises Ltd., saw a remarkable tripling of revenues across multiple businesses, including airports and green hydrogen programs.

The outstanding achievements of the Adani Group are not limited to a single industry. Adani Ports and SEZ set a new record by registering its highest-ever quarterly cargo volume. Furthermore, Adani Power completed a huge 1,600 MW ultra-supercritical power plant, considerably adding to the conglomerate’s overall growth trajectory. These achievements demonstrate the group’s capacity to thrive in various industries, assuring a well-rounded and long-term expansion plan.

Adani Solar

The solar export commitment by the government prompted private companies, such as Adani, to boost their investment in the solar manufacturing sector. Adani Group made significant progress in aligning and incubating solar PV production with Adani Solar in 2015. Previously, Adani Green Energy Limited (AGEL), a listed renewable energy-producing corporation, had succeeded in the conventional energy industry. Adani Solar commenced manufacturing in 2016, with a capacity of 1.2 GW for cell and module production.

In less than six years, the firm more than tripled its solar power production capacity to 4 GW modules and 4 GW cells. Adani also operates India’s largest solar PV capacity for cells and modules in the Mundra SEZ. Adani Solar has sold approximately 7 GW of modules, since its beginning, meeting Indian and worldwide demand. Adani Solar was one of the top three solar module providers in 2022.

Conclusion

Adani Group is a diversified conglomerate performing exceptionally well despite the Adani scandal controversy. The group’s revenue and EBITDA have increased significantly year-on-year, driven by strong growth across multiple businesses. Notably, the group is now focused on building the world’s largest renewable energy manufacturing hub in Mundra, Gujarat.