Billionaire Gautam Adani
Credit: Reuters photo
New Delhi: Adani Group has formed a subsidiary in China to carry out business of providing supply chain solutions and project management services, according to a regulatory filing.
Adani Enterprises, the group's flagship firm, in the filing said a Singapore-based step-down subsidiary incorporated a wholly-owned subsidiary, Adani Energy Resources (Shanghai) Co. (AERCL), domiciled in Shanghai, China on September 2, 2024.
"AERCL is incorporated to carry out business of providing supply chain solutions and project management services," it said without providing details.
The subsidiary was incorporated by Adani Global Pte (AGPTE), Singapore - a step-down subsidiary of Adani Enterprises Ltd (AEL).
AEL houses the conglomerate's mining, roads, airports, data center and water infrastructure businesses.
"AERCL has been incorporated and registered under the laws of Company Law of the People's Republic of China on September 2, 2024," the filing said. AERCL is yet to commence its business operations.
The new unit comes days after AEL set up a subsidiary in Kenya, Airports Infrastructure PLC (AIP) "to take over, operate, maintain, develop, design, construct, upgrade, modernize and manage the airports" in the African nation.
The group, which currently operates seven airports in the country, is looking to expand overseas.
AEL had previously incorporated Global Airports Operator L.L.C., Abu Dhabi, to handle investment, acquisition, construction, operation, and maintenance of airports outside India. This unit has now set up the Kennian subsidiary.
Adani Group had reportedly submitted a proposal to the Kenyan government for investing in its main airport, the Jomo Kenyatta International Airport (JKIA) in Nairobi. It has proposed to invest USD 750 million for a new terminal and taxiway system by 2029 and an USD 92 million for improvements by 2035.
JKIA, which would be Adani's first airport outside of India, is a major hub in East Africa but has a crumbling infrastructure. It could provide Adani with a strategic advantage in the region, enhancing connectivity and trade routes.
Talks with the Kenyan government are ongoing.
"AIP has been incorporated and registered under the laws of Kenya Companies Act, 2015 on August 30, 2024," AEL said. AIP is yet to commence its business operations.