The name Gautam Adani has been creating headlines for quite a long time. In Kerala, he was noticed after Vizhinjam port. But now, he is getting recognized not for ports but for airports.
In 1988, at the age of 32, he started his Ahmedabad – based venture and soon reached below Mukesh Ambani in the Forbes list of richest. Although Adani Enterprises Limited started off with a commodity trading business, today there are very few areas where they are not involved. The list goes on and on with energy, resources, logistics, agribusiness, real estate, financial services, defense and aerospace. They collaborated with Singapore based Vimal International and produces edible oil under the brand Fortune. With a capacity of 660 megawatts, Tiroda Thermal Power Station in Maharashtra has made Adani the largest power producer in the country. Adani Green Energy recently won the contract for the world’s largest solar power project. The 8 gigawatt solar plant construction project is expected to be completed in five years. Mining in India, Indonesia and Australia. Coal exports to Bangladesh, China and Southeast Asia. There is still a long list of ventures and business empires for Adani to claim.
Adani Group is the largest port developer and operator in India. The Adani Group is responsible for ten ports, including Mundra Port in Gujarat. The current situation is such that there is no one else to beat the Adani Group in the aviation sector. Adani Enterprises Limited acquired six airports. With the acquisition of a 74% in Mumbai Airport, the second largest airport in the country, the Adani Group has become the largest private operator in the aviation sector. According to experts, India’s airport retail market is expected to grow by $ 9.3 billion by 2030. The real estate potential of airport operators is estimated at $ 1.6 billion.
When it comes to the acquisition of Thiruvananthapuram Airport, The purpose of the 50-year lease is to carry out Operation, management and development of the airport in the Public Private Partnership model. The lease stipulates that the highest revenue-per-passenger can be shared with the Airports Authority of India. Ownership of the airport and land, responsibilities of air traffic control, security, customs and immigration are all vested in various government agencies. In short, it is an operational contract. The main areas of revenue associated with the airport are aeronautical revenues such as land fees, user development fees, cargo and ground handling, parking and housing fees, aircraft fueling and non-aeronautical revenues such as duty-free shops, retail licenses, food and beverage, advertising, space rentals, car parking and airport related land development. Adani Enterprises Ltd.’s policy is to generate more revenue from non-aeronautical revenue sectors.
When Adani Group, which has experience in airport operations, takes over, the face of the airport itself may change. International standard operation and maintenance will attract passengers. Commuters will avail world-class facilities. Passengers expect airport terminals to be clean and luggage handling to be facilitated. The Ahmedabad Airport, taken over by Adani, is cited as an example. Efforts will be made to use new technologies for infrastructure development and increase labor productivity. The Adani Group had demanded a delay in the acquisition process at a time when the aviation sector was facing a crisis due to Covid. The acquisition is expected to be completed by November.
