Adani Looking to Build Ships at the Group's Flagship Port, Mundra in Gujarat; Largest in the Country Adani group is eyeing a potential market for ship-building in their Mundra port in Gujarat
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Adani Group is charting a new course in India's maritime landscape, with plans to launch shipbuilding operations at its flagship Mundra Port, the nation's largest. As global demand for new vessels outstrips capacity in traditional shipbuilding hubs like China, South Korea, and Japan, Adani Group is poised to capitalise on this opportunity, as per reports from ET. This strategic move aligns with India's ambitious vision to break into the top 10 global shipbuilding nations by 2030 and crack the top five by 2047. Currently, India ranks 20th in the world commercial shipbuilding market, but with Adani Group's entry, the country is set to make waves in the industry. The goal is to increase India's share of the global shipbuilding pie and reduce reliance on foreign vessels, with Indian-owned and flagged ships currently handling only 5 per cent of the country's overseas cargo needs.
Adani Group's stealthy foray into shipbuilding has been revealed with the ambitious INR 45,000 crore expansion plan for Mundra Port, which recently received the green light from environmental and coastal regulation authorities. According to the minutes of the Expert Appraisal Committee attached to the Ministry of Environment, Forest and Climate Change via ET, the proposal was approved on May 15, paving the way for Adani's shipbuilding dreams to set sail. This strategic move has gone under the radar until now, but it's clear that Adani is poised to make a significant splash in the shipbuilding industry, aligning with India's vision to become a major player in the global maritime landscape.
At present, India has six shipyards under the Central Public Sector and two under State Governments. As per finextra, the Indian shipbuilding industry, valued at $90 million in 2022, is projected to reach a staggering $8,120 million by 2033, exhibiting a remarkable (compound annual growth rate) CAGR of 60 per cent.
Adani implementing its trillion dollar plans
Adani Group is poised for a monumental leap in FY25, with a staggering INR 1.3 trillion investment pipeline spanning its diverse business empire. To power this ambitious growth spree, the conglomerate is targeting a significant equity infusion of up to $3 billion this financial year. This bold move demonstrates Adani's unwavering commitment to turbocharging its operations and propelling its various sectors to new heights.
Talking to Business Standard, CFO Jugeshinder Singh revealed the group's plans to inject a massive INR 34,000 crore into its portfolio, with Adani Green Energy spearheading the expansion charge in Gujarat's Khavda region. As Adani Group gears up for this unprecedented expansion, the industry watches with bated breath, eager to witness the transformative impact on India's business landscape. Read more
