At the end of 2024, the US authorities claimed that the Adani Group chairman Gautam Adani, together with other senior employees, was involved in a scheme to pay bribes to protect power supply contracts in India, making investors in the United States mislead.
Adani and some other colleagues remain in the United States and it is not clear how the situation will develop in 2025. The charges can hinder the attempts of Adani Group to attract capital, in particular internationally. Nevertheless, India’s leading integrated energy and infrastructure conglomerate said, which reported a strong year in 2024, that the performance will continue.
“Capital is no longer a restriction. Our true challenge lies in the effective use of capital, ”the chairman told the staff in the center of the allegations in his New Year’s message. “To overcome this, we must give priority to technology and talent.”
Adani said that the company was crushing the financial data in 2024 – a year in which it also stood for extraordinary challenges. The chairman added that the financial position of the group has never been so more robust.
His message seemed to be aimed at removing concern about the project financing challenges of Adani Group, after the US indictment of Adani and others in the alleged bribery case.
The US indictment accuses the Adani chairman and others of leading a scheme to buy Indian officials to protect solar energy contracts and from hiding those actions while looking for capital to the US established and global investors.
Adani Group has called the bribery accusations ‘unfounded’ and promised to pursue ‘all possible legal studies’. However, there are already cases of the allegations. The French energy giant-giant-totaleenergies-a shareholder of 19.75% of Adani Green Energy LTD (Agel) and a 50% joint ventilation partner in project companies with Agel-announced that it would not make new financial contributions as part of his investment in the investment In the Adani Group of Companies to the accusations against the Adani individuals and their consequences had been clarified.
Agel said it is not in discussion with Totaleenergies for new investments. That is why the declaration from to DenEnergies would not have a material impact on the activities of the company or the growing plan, claimed it.
Adani Group is one of the most ambitious players in the Indian industry in India, with plans for solar production that are integrated vertically from polysilicon to module assembly and PV project development. With the plans that it has already announced, Adani could reach about 10% of the 2030 goal of 500 GW of power generation capacity from sources with non-fossil fuels. The group currently has an operational portfolio of capacity for renewable energy from more than 11 GW, which wants to increase it to 50 GW to 50 GW.
It develops what the world’s largest renewable energy project calls, with a capacity of 30 GW, in Khavda in Kutch, Gujarat. The project footprint is built over 538 km² and is almost as large as Mumbai. Agel recently announced the commissioning of 2.4 GW of mixed solar and wind generation capacity at the location. Once completed, Agel said that the site will be the world’s largest power plant.
Financial influence
Adani Group has promised to invest $ 100 billion to 2035 in the energy transition and to further expand its integrated value chain for renewable energy.
Adani New Industries Ltd., the green hydrogen unit of Adani Enterprises, is building a huge, integrated production ecosystem for generating cheap green hydrogen. That plan will include metallurgical quality silicon, polysilicon, ingrot, waffles, cells and modules 10 GW per year, as well as wind turbines, electrolyzers and supporting components. Scale benefits are intended to facilitate the cheapest green hydrogen.
Of the announced annual production capacity, 2 GW of Ingot and Wafer production lines have been operational since March 2024. Achter cell (perc) cell and module capacity. The sale of the solar module of the group in April to September 2024 struck 2.38 GW, of which 1,082 MW of Domestic and 1,298 MW were exported. That marked 91% growth on an annual basis.
Agel booked an consolidated net profit of INR 5.1 billion ($ 58.9 million) in the quarter of July 2024 in July, an increase of 39% year by year. Consolidated turnover of activities rose by 16.33%, year after year to Inr 23.1 billion.
The American charge came shortly after Gautam Adani announced in November 2024 his group to invest $ 10 billion in American energy breach and infrastructure projects, creating up to 15,000 jobs in America. As a result of the indictment, Adani Group can be confronted with an increased investigation abroad, because it strives to raise money for his projects, asking questions about whether this will delay the group, domestic and abroad.
The recent announcement of the company that the intention is to increase in 71.4 billion of the sale of a maximum of 20% of the food and beverage activities Adani Wilmar was seen as a fundraising of green energy and infrastructure based on leaving others , non-core sectors. The group generated around 48.5 billion of the initial, 13.5% sale of the food industry.
With regard to his debts, Adani Group announced on November 25, 2024 that each of his portfolio companies had sufficient liquidity to meet all the debts for at least the following 12 months.
“The cash reserves of the group are now on INR 53,024 Crore [INR 530.24 billion] – 20.53% of the gross debt, “the company said. “This amount is sufficient to cover [the] Next 28 months of the requirements for debt service. “
The group has also found support from the American investor GQG Partners, who has interests at Adani Group Companies. GQG said it does not see the American charge as a material impact on the operations of the Adani Group. It claimed that the companies were well positioned for the future, because their basic principles remained healthy.
Despite the indictment, Green Energy will probably remain central in the growth plans of Adani Group. To finance its ambitious projects for renewable energy consumption, the group has adopted the strategy to diversify its financing sources. This means that it must be able to bank in the short term on the domestic debt route and investments of non-American markets.
“The group tends to seek debt financing for most of their projects through international banks and capital markets, both of which are probably a bit careful until we see a clear solution of the SEC [US Securities and Exchange Commission] Case, “said independent consultant Vinay Rustagi. “In the interim period, the company can use the Domestic Debtroute, which still remains open and has sufficient appetite for the sector.”
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