Richest Indian Gautam Adani’s group, which has grown on acquisitions, has fairly solid fundamentals but debt-funded future acquisitions can start putting pressure on ratings, S&P Global Ratings said on Thursday.
Starting out as a commodities trader in 1988, the Adani group has diversified from mines, ports and power plants into airports, data centres and defence.
It recently forayed into the cement sector with a USD 10.5 billion acquisition of Holcim’s India units and is also looking to set up an aluminium factory. Most of this expansion has been funded by debt.
S&P Global Ratings Senior Director (Infrastructure Ratings) Abhishek Dangra said the growth ambitions for most of the group entities are fairly high and they have also grown through acquisitions across multiple entities.
