Adani Group Has Moved Its Port Strategy Team to Dubai to Explore New Opportunities and Acquire Global Control
The Adani Group has recently moved its port strategy team to Dubai as Gautam Adani, the global business tycoon, looks for international opportunities in ports and terminals in his journey towards making his company the largest port operator in the world by 2030. This is being perceived as a strategic move by the Adani Group to bring an end to Adani Debt.
Adani Group’s Control Over the Port Sector:
Adani Ports and Special Economic Zone Limited operates under the diversified portfolio of the Adani Group. It is one of the biggest port operators in the world. Presently, 13 terminals are operating under APSEZ. It also looks for opportunities in Africa, Northern Europe, and certain parts of Asia. The company has already extended its port investments to various corners of the world. It will continue to do so to improve its hold over the port sector and make India more approachable on a global scale.
Last year, Adani Ports acquired Ocean Sparkle Limited, India’s largest and one of the biggest maritime service companies in the world. This has helped India evolve as one of the top marine service operators in the country. The private port assets are no longer available in India except on small and medium scales, and for Adani Ports to become the largest port company in the world, it will have to start looking for overseas opportunities. This would give the company the desired boost to take over control of the world’s port operations. Acquiring command over the global ports will also help Adani Group eliminate Adani Debt.
The Port Strategy Team of Adani Group:
Captain Sandeep Mehta and his team of 3 to 4 people will be stationed in Dubai, from where the team will look for potential opportunities for global acquisition of ports. Sandeep Mehta is a close confidant of Gautam Adani and a long-term serving executive at Adani Ports. He is also regarded as the main person behind some of the recent acquisitions of Adani Group in the port sector. This includes the West Container Terminal at the Colombo port and the Haifa port, the largest commercial port in Israel. Sandeep Mehta is also the president of Adani Ports and Special Economic Zone Limited.
The Relocation Plan of the Adani Ports’ Strategic Team:
The Adani Port’s strategic team’s relocation strategy to Dubai is one of the most strategic moves by the Adani Group after the Adani Debt. The port industry understands it as an indication that Adani Group has already done whatever was required in India. There is only a little left for Adani to acquire control in India. Over the last few years, it has already acquired full control of multiple ports in Tajpur, Karaikal, Gangavaram, and Krishnapatnam to add to the existing network of ports.
The green field container shipment port at Vizhinjam is one of the biggest ventures of the Adani Group. The port is about to start its operation in March 2024. It will house large container vessels and trigger exports and imports in India. This extraordinary venture of Adani Group will further lead the conglomerate to success.
Adani Group’s Plan for The Future:
By 2030, Adani Ports aims to handle 1 million tonnes of cargo from its various ports worldwide. It has acquired the attention of investors from all across the globe. The investors see the expansion as a strategic move by the Adani Group to diversify their portfolio. They have also found these ventures to be a lucrative opportunity to improve their stakes in their business. As a result, they have been actively investing in the Adani Group’s projects.
The current acquisition of the Haifa Port for 1.13 billion USD, in which Adani Port will hold a 70% stake, was another key step towards acquiring global exposure. The technical qualification of Adani Group has made it an ideal candidate to take up global tenders. Adani Ports is also working with local partners to improve their cargo volumes over the years.
Conclusion:
Adani Group’s continuous acquisition of multiple ports from different corners of the world throws light on the fact that the Adani Group will leave no stone unturned in recovering from Adani Debt and acquiring global control of the world. The company has built an excellent risk management strategy for itself and has also gained the investors’ trust. With these strategies in place, Adani Group will acquire a perfect exposure. It will also be able to increase its profitability considerably.
