The Adani Group has been branching out beyond its initial focus on coal, ports and terminals. Image Credit: Reuters

Dubai: Abu Dhabi investment giant IHC has completed one of its biggest forays into India, through a Dh7.3 billion deal in three Adani Group’s portfolio of companies. It also marks the first investment since the CEPA deal between UAE and India went live.

“The deal represents 4.87 per cent of the total trade between the UAE and India, which has reached $41 billion between 2020-21,” said Syed Basar Shueb, CEO and Managing Director of IHC. “The partnership between IHC and Adani Group greatly reflects the economic ties between the UAE and India beyond the oil sector."

IHC’s billions will go into Adani Green Energy Ltd, Adani Transmission Ltd. and Adani Enterprises Ltd., all of which are listed on the Bombay Stock Exchange and National Stock Exchange (NSE) in India. The investments will be routed through the preferential allotment route.

The Adani Group, meanwhile, has just made an investment in the UAE's nascent T20 cricket championship.

Plugging into India's power needs

India's total electricity generating capacity is more than 390 GW, and renewables exceed 100 GW. Last year at the UN Climate Change Conference, the Indian government announced that by 2030 India's non-fossil fuel capacity would be 500G W. IHC’s investment will support and accelerate Adani Group’s growth plan to supply the country with 45 GW (9 per cent of India's non-fossil energy) by 2030.

According to Sagar Adani, Executive Director of Adani Green Energy, “We value IHC’s pioneering role as a strategic investor in sustainable energy, healthcare, food, infrastructure and energy transition in the UAE. This transaction marks the further strengthening of the India–UAE relationship and highlights the long history of business and trust between our peoples. We share IHC’s strategic vision for India, Middle East and Africa as we embark on this inter-generational relationship.”

  1. Adani Electricity Mumbai Ltd. is the distribution arm of Adani Transmission, which has legally covenanted targets to increase the renewable energy penetration from 3% in FY2021-22 to 60% by FY27. IHC’s investment will support ATL in this transformational journey.
  2. Adani Enterprises Ltd., through its wholly owned subsidiary Adani New Industries Ltd. will invest $50 billion over the next 9 years forming a new 'green hydrogen' vertical focussed on decarbonisation of industrial energy and mobility.