Adani Power Limited

Nature of the business

Adani Power Limited (“Adani Power”) is the power generation company within the Adani Group. It achieved a landmark IPO in August 2009 and is now one of the leading Indian independent power developers listed on the primary Indian stock exchanges. Its first project is the construction and operation of a 2,640MW coal plant in the state of Gujarat (Mundra). Since this initial project, the company has increased its total planned capacity to 9,240MW, of which 5,280MW is now operational.

Investment rationale

The market fundamentals for the business are attractive. Demand for power in India is expected to grow substantially, with the peak power deficit currently standing at c. 10%.

The business benefits from a vertically integrated supply chain for its Mundra 1 & 2 units. Mining, shipping and port handling are all undertaken by experienced Adani Group entities on terms advantageous to Adani Power.

The backing of the Adani Group has been positive for the business. The Adani Group has a strong track record of delivering projects on time and to budget.