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Adani Enterprises is preparing to bid for all 11 airports that the Indian government plans to lease to private operators, aligning with its USD 11 billion airport infrastructure expansion planned over the next five years. Through Adani Airports Holdings Limited, the group already manages seven airports and is set to begin operations at a new airport developed near Mumbai. While the airport business is largely EBITDA positive, a public listing will depend on achieving cash-positive status. The group has ruled out entering airline operations, focusing instead on long-term infrastructure assets.
Adani Enterprises has outlined plans to aggressively expand its airport portfolio by bidding for 11 airports that the central government intends to lease to private players. This move forms part of the group's broader USD 11 billion investment plan for airport infrastructure over the next five years, aimed at strengthening its presence in India's fast-growing aviation sector. Advertisement
Led by billionaire Gautam Adani, the conglomerate has expanded rapidly across infrastructure segments in recent years. Its airport arm, Adani Airports Holdings Limited (AAHL), has emerged as the country's largest airport operator by number of airports. In comparison, GMR Group remains the largest by passenger traffic handled, highlighting the competitive nature of India's airport operations market.
The government's airport leasing programme is part of a wider push to modernise aviation infrastructure and expand regional connectivity. India currently has 163 operational airports and aims to increase this number to between 350 and 400 by 2047. As part of this initiative, authorities earlier outlined plans to lease 11 airports, including those located in Amritsar and Varanasi, to private operators for long-term development and management.
AAHL currently manages seven airports across India and is preparing to operationalise the first airport it has developed from the ground up. The new airport, located near Mumbai, is expected to begin operations shortly, marking a significant milestone for the group as it transitions from operator to developer as well.
On the company's listing plans, AAHL director Jeet Adani said there is no fixed timeline for an initial public offering. He explained that any IPO or potential demerger would be considered only after the business achieves specific milestones, including becoming cash positive. While the airport unit is largely EBITDA positive at present, continued capital expenditure linked to expansion means further cash deployment is required.
He also noted that the valuation of the airport business has not been finalised and would be assessed using comparable industry multiples at the appropriate time. This reflects a cautious approach as the group balances growth ambitions with financial discipline.
India's aviation sector has been witnessing strong demand, driven by rising incomes and improved connectivity. Passenger traffic continues to grow, with air travel volumes rising steadily over the past year. Indian airlines have also placed large aircraft orders since 2023, signalling confidence in long-term demand and adding pressure on airport infrastructure to scale up capacity.
Despite this growth, Adani Airports has no plans to enter the airline business. The company has acknowledged that airline operations involve thin margins and require a different operational mindset. Instead, its focus remains on developing and managing long-gestation infrastructure assets and operating them efficiently over the long term.
Source Reuters
5th Jun, 2025
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