Daijiworld Media Network - Mumbai
Mumbai, Dec 20: The Adani Group has decided to put its international airport expansion plans on hold, opting instead to expand its domestic airport business 3–4 times over the next 5–6 years with investments of around Rs 1 lakh crore, said Jeet Adani, Director of Adani Airport Holdings.
Speaking exclusively to Economic Times ahead of the Navi Mumbai International Airport inauguration on Dec?25, Jeet Adani said, “Right now, there is so much opportunity in India that we just want to invest here. We'll re-evaluate international plans after four to five years.” Earlier, the group had explored airports in West Asia, Kenya, and Southeast Asia, but those plans are now deferred.
The group is also exploring listing options for its airport business, including an IPO, demerger, or induction of an anchor investor, likely around 2030, he added, while ruling out any plans to enter the airline business.
Currently, Adani Airports operates eight airports, handling about 88–90 million passengers in the last financial year. Passenger traffic across the portfolio is expected to reach 150 million over the next 3–5 years, driven by capacity expansions and rising air travel demand. The Navi Mumbai International Airport alone is expected to contribute an incremental 20 million passengers.
Navi Mumbai is already nearing capacity, Jeet noted, with expansion underway at Ahmedabad, Jaipur, and the upcoming inauguration of Guwahati airport. The group plans to aggressively pursue new privatisation opportunities, with the government having identified 24 airports for monetisation.
The Rs 1 lakh crore investment over the next five years will be funded primarily through internal accruals, with project-level debt and selective equity raises supplementing growth. The airport business is EBITDA positive and is expected to become cash positive within 18–24 months, reducing reliance on Adani Enterprises for capital.
Revenue composition is shifting, with aeronautical income declining to 10% of total revenue, while city-side development contributes 30–40% and non-aero businesses such as retail, F&B, lounges, and services make up 40–50%. Non-aero revenues stood at Rs 2,500 crore last year, generating returns above 20%, compared to a 12% return on aeronautical investments.
Jeet Adani highlighted that the focus is on transactions per passenger, aiming to increase current engagement from one in three passengers to one in two or more. The group’s strategy of owning and operating retail, F&B, lounges, and ground handling ensures tighter control over customer experience and cross-selling opportunities.
City-side development is underway at Ahmedabad, Mumbai, Navi Mumbai, and Lucknow, with Guwahati starting soon. Navi Mumbai is being positioned as a full-fledged urban destination, combining hospitality, retail, offices, entertainment, and a 25,000-seat arena alongside aviation infrastructure.
The group is also narrowing its digital focus to airports, moving away from a single super app strategy, driven by concerns around data protection and compliance.