On the back of years of experience and great expertise, the Adani Group is capable of offering better services while operating, developing and maintaining all its projects in a secured manner
In a recent development, the Adani Group has confirmed that its holding company, Adani Airport Holdings Limited (AAHL) is set to acquire 74 per cent controlling stake in Mumbai International Airport Limited (MIAL), from GVK Group and other partners. With this deal, Adani Group will become the largest player in the airport business with the most number of projects in this segment.
On 31st August, 2020, the Adani Group said that it has entered into an agreement to acquire the debt of GVK Airport Developers Limited (GVK ADL), which holds a 50.50 per cent equity stake in Mumbai International Airport Limited. Other than this, the firm will also be acquiring 10 per cent of Airport Company of South Africa and 13.5 per cent of Bidvest. The Airport Authority of India will hold the remaining 26 per cent of the stake.
Adani Group will also control 74 per cent stake in the Navi Mumbai airport project, as a part of the deal. After the acquisition of debt from GVK ADL, the group will follow the necessary steps to obtain customary and regulatory approvals to get the controlling interest in Mumbai International Airport. Adani Group has recently bagged the rights to operate, develop and maintain six new airports under the Public-Private Partnership (PPP) model and it is capable of offering better services in a secured manner.
The aviation industry has been impacted the most by Covid-19 pandemic. At this juncture, a strong firm like Adani Group is likely to play a crucial role, as it can prove to be a strong investor on the back of great expertise and years of experience across various sectors.
Likewise, it will be important to address the security concerns and streamline other safety measures after the acquisition to ensure seamless operations, since the industry was halted big time by the Covid-19 pandemic. Adani Group may consider firms like State Bank of India (SBI), Indian Oil Corporation Limited (IOCL), Larsen & Turbo (L&T) etc., to look after different verticals like finance, construction, among others, for their past association and experience with the Mumbai International Airport Limited.
Larsen and Turbo, a company that was tasked with overseeing the construction and operation of Mumbai International Airport Limited, could be in the reckoning for a similar project. On the other hand, companies like ACSG Corp could also be in the fray to bridge the gap pertaining to the security concerns like infrastructure protection. Such integration would work in synch with initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’ in the long run.
With this new deal, the Adani Airport Holdings Limited is intending to infuse funds into Mumbai International Airport to offer liquidity to Mumbai International Airport Limited. The agreement will also pave the way to achieve financial closure of Navi Mumbai International Airport and start the construction, as per the statement of Adani Enterprises.