Adani Enterprises Expands with New Hotel and Real Estate Units

Adani Enterprises Ltd (AEL) has announced the incorporation of three new wholly-owned subsidiaries focused on hotel and real estate development as part of its ambitious airport city expansion strategy. These new entities are Adani Navi Mumbai Airport City Ltd, Adani Guwahati Airport City Ltd, and Adani Ahmedabad Airport City Ltd.

Each of these subsidiaries will undertake a range of real estate activities, including construction, along with the development of hotels featuring integrated restaurants, banquets, and business centers. According to a regulatory filing by the company, the new entities will be engaged in the business of real estate activities with own or leased property, construction of buildings on an own-account basis or on a fee or contract basis, and the operation of hotels with integrated facilities.

While the company did not elaborate on whether the plan includes the construction of hotels within the vicinity of the airports it operates, the move is part of Adani's broader strategy to expand its presence in the airport sector. Each subsidiary has been incorporated with a paid-up capital of Rs 10 lakh, with shares subscribed in cash at face value, and is fully owned by Adani Airport City Ltd.

Adani Airport Holdings Limited, a 100 per cent subsidiary of AEL, was incorporated in 2019 and is now the largest airport infrastructure company in India. It manages eight airports, accounting for 25 per cent of passenger footfalls and 33 per cent of India's air cargo traffic. These airports are located in Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. Additionally, Adani Airport Holdings holds a 73 per cent stake in Mumbai International Airport Ltd, which, in turn, holds a 74 per cent stake in Navi Mumbai International Airport Ltd.

Adani Airport City Ltd, a unit of Adani Airport Holdings Ltd, is at the forefront of the conglomerate's USD 15 billion expansion plan for its Indian airport portfolio by 2030. The goal is to boost the capacity to handle 200 million annual passengers. This plan supports the upcoming IPO of its airport unit and focuses on the expansion of existing, high-traffic airports, including Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati. The group recently opened the Navi Mumbai airport, which has the initial capacity to handle 20 million passengers.

The overall airport capacity is targeted to be raised by over 60 per cent, positioning the Adani group to manage the rising air travel demand, which is projected to surpass 300 million passengers in India by 2030. This strategic move underscores Adani's commitment to enhancing its infrastructure and contributing to the growth of India's aviation sector.