Adani arm sets up three hotel, real estate airport city units
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Adani Enterprises Ltd (AEL) said its step-down unit has incorporated three wholly-owned subsidiaries focused on hotel and real estate development as part of its airport city expansion strategy.
Adani Airport City Ltd, a step-down wholly-owned subsidiary of the company, has set up Adani Navi Mumbai Airport City Ltd, Adani Guwahati Airport City Ltd and Adani Ahmedabad Airport City Ltd.
The new entities will undertake real estate activities including construction, along with hotels featuring integrated restaurants, banquets and business centres, according to a regulatory filing by the company.
The newly incorporated entities "shall be engaged in the business of real estate activities with own or leased property, construction of buildings carried out on own - account basis or on a fee or contract basis - hotels with integrated restaurants, banquets and business centres," it said.
It however did not elaborate if the plan included construction of hotels within the vicinity of airports it operates.
Each subsidiary has been incorporated with a paid-up capital of Rs 10 lakh, with shares subscribed in cash at face value, and is fully owned by Adani Airport City Ltd.
Adani Airport Holdings Limited was incorporated in 2019 as a 100 per cent subsidiary of AEL and today it is the largest airport infrastructure company, with its eight airports accounting for 25 per cent of passenger footfalls and 33 per cent of India's air cargo traffic. It manages airports at Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.
It also holds 73 per cent in Mumbai International Airport Ltd, which, in turn, holds 74 per cent in Navi Mumbai International Airport Ltd.
Adani Airport City Ltd is a unit of Adani Airport Holdings Ltd.
The conglomerate has previously outlined a USD 15 billion expansion plan of its Indian airport portfolio by 2030, aiming to boost capacity to 200 million annual passengers.
The plan, which supports the upcoming IPO of its airport unit, focuses on expansion of existing, high-traffic airports, including Ahmedabad, Jaipur, Thiruvananthapuram, Lucknow, and Guwahati. It recently opened the Navi Mumbai airport with capacity to initially handle 20 million passengers.
The group's overall airport capacity is being targeted to be raised by over 60 per cent, positioning to manage rising air travel demand, which is projected to surpass 300 million passengers in India by 2030