‘Middle class will help in creating a $15-tn economy’

MUMBAI: Despite Covid disruptions, middle-class consumption will help create a $15-trillion Indian economy in two decades, Adani group chairman Gautam Adani said, dismissing doubts on whether the $5 trillion target is achievable.

“India will be $5 trillion, and then go on to be a $15 trillionplus economy over the next two decades. India will emerge as one of the largest global markets, both in terms of consumption size and market cap,” he told shareholders at the annual general meeting of Adani Enterprises on Monday. “History has shown that out of every pandemic crisis, there emerge several learnings—and I believe that India and the world are wiser as we go through this pandemic.”

Adani also slammed reports about the company’s shareholding that hammered stocks of group companies, adding the group’s focus is on creating longterm sustainable value.

“Recently, a few media houses indulged in reckless and irresponsible reporting related to administrative actions of regulators. This caused unexpected fluctuations in the market prices of Adani stocks. Unfortunately, some of our small investors were affected by this twisted narrative in which some commentators and journalists seemed to imply that companies have regulatory powers over their shareholders and that companies can compel disclosure. In the long term, such diversions will not impact us,” he said.

In 2020-21, the consolidated Ebitda (earnings before interest, taxes, depreciation and amortization) of the group’s listed portfolio was over ₹32,000 crore: a year-on-year growth of 22%. “All the Adani stocks generated returns over 100%—and our businesses ensured that we returned close to ₹9,500 crore to you, our equity shareholders. This is a 166% increase in profit after tax on a year-on-year basis,” he said.

Adani Ports and Special Economic Zone (APSEZ) has become an integrated ports and logistics company. In FY21, it crossed a landmark after its share of India’s port-based cargo business rose to 25% and the container segment market share grew to 41%.

No other company in the world runs a port business of such scale and reach,” he said.

Adani Green Energy became the largest solar company in the world in 2020. Last month, following the acquisition of SB Energy’s 5GW portfolio at an enterprise valuation of about $3.5 billion, the company up to its renewables target of 25GW a full four years ahead of schedule.