Adani Sets Up Subsidiary in Abu Dhabi for International Airport Operations

Adani Airport Holdings Ltd., a key player in the Indian aviation sector, is making significant strides towards global expansion. Recently, the company announced the incorporation of a wholly-owned subsidiary, Global Airports Operator LLC, in Abu Dhabi. This move is aimed at acquiring and investing in airports outside India, underscoring the company’s ambition to become a major global airport operator.

Expansion into International Markets

Adani Airport Holdings Ltd. currently owns and operates eight airports in India, seven of which are fully operational. These airports include Mangaluru, Lucknow, Ahmedabad, Guwahati, Jaipur, Thiruvananthapuram, and Mumbai, collectively accounting for about 25% of passenger traffic and approximately 33% of cargo capacity in the country. Additionally, Adani Airport holds a 73% stake in Mumbai International Airport Ltd., which itself has a 74% stake in Navi Mumbai International Airport Ltd. 

The establishment of Global Airports Operator LLC in Abu Dhabi is a strategic step towards expanding Adani Airport’s footprint in the global aviation market. This subsidiary will be responsible for carrying out acquisitions and investments in airports outside India, facilitating the company’s global growth objectives.

Future Listing Plans

Adani Enterprises Ltd., the flagship company of the Adani Group, has outlined plans to list its airport business on the stock exchanges by the financial year ending March 2028. Group Chief Financial Officer Jugeshinder Singh confirmed this timeline in June, highlighting the company’s long-term vision for its airport operations.

In January, Vice President Jeet Adani had indicated that the listing of the airports vertical could occur in the near future, contingent upon certain key milestones. The primary triggers for the listing include the operationalization of the upcoming Navi Mumbai airport and achieving a record first stable year of operations. These developments are expected to bolster the company’s valuation and market presence ahead of the planned listing.

Conclusion:  Adani Airport Holdings Ltd.’s incorporation of Global Airports Operator LLC in Abu Dhabi marks a significant step in its journey towards becoming a global leader in airport management and operations. With a robust portfolio of airports in India and strategic plans for international expansion, the company is well-positioned for future growth. The anticipated listing of its airports business by March 2028 further reflects its commitment to unlocking value for its stakeholders and enhancing its market presence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.