Mumbai: Billionaire Industrialist Gautam Adani will consolidate all bottom train assets under one entity, which will remove duplication and build a scale, helping him bid on a higher net worth of projects.
He will bring six railroad assets (portfolio 690km in terms of long tracks, see graphs) Under Adani Tracks Management Services – 100% arms from registered Adani ports and special economic zones.
Consolidation will enable Adani, which targets to have a 2,000 km length portfolio in 2025, to participate in public-private partnership projects from the Indian train “without having to compete with similar businesses in the portfolio of Adani”, a statement from the group word .
According to the state train plan 2020, the Indian train will invest more than RS 3 Lakh Crore for 10 years to build a new railway line.
Furthermore, the government’s shift in the focus on the road to the train as the preferred mode of transportation, a clear choice both economically and the environment, will require significant participation from the private sector.
Adani has built a train portfolio, especially through public-private partnerships and acquisitions.
He bought 20% at Kutch Railway (the government holding the rest), including the length of the 301km track (the longest train track in its portfolio) and acquires the Krishnapatnam train company, which includes the length of the track of 113 km.
He obtained equity interest (around 13%) in the last after the acquisition of Port Krishnapatnam at Andhra Pradesh (the second largest private sector port in the country).
The balance (87%) in Krishnapatnam rail is held by the government.
Consolidating the railroad transportation business under Tracks Management Services Adani will help business tycoons to channel investments to this particular entity as to several entities that have games in the same segment.
It will also help adani to knock opportunities in adjacent areas such as participating in the General Destination Cart investment scheme (GPWIS) from the Indian train.
This scheme allows the private sector to invest in carriages and rakes to transfer certain commodities such as coal, iron ore and minerals.
Until four years ago, this commodity transportation was controlled by the Indian train.
There was a significant growth potential in the train transportation business because it was immature, Port Adani said in the presentation last March.