Adani builds cement factories, data center in Andhra Pradesh

The Adani Group will build two new cement manufacturing plants, 15,000MW renewable energy projects and a data center in Andhra Pradesh to double its presence in the state, Karan Adani, scion of the founding family, said on Friday.

The Apples-to-Airport group plans to double the capacity of the two seaports it operates in Krishnapatnam and Gangavaram in the state, he said at the Andhra Pradesh Global Investors Summit here, but gave no investment figures.

The investments add to the Rs 20,000 crore already invested in the state which has created more than 18,000 direct and 54,000 indirect jobs.

Adani, CEO of the group’s port company, Adani Ports and SEZ Ltd, and son of group founder and chairman Gautam Adani, said the group will build cement plants with a total capacity of 10 million tons per year in Kadappa and Nadikudi state, as well as a 400 MW Data center in Visakhapatnam.

This is the Adani family’s first public appearance in the country since a damning report by a US short seller sent shares in the group’s $140 billion public companies fleeing.

Senior Adani was a notable absentee from a similar investor summit organized by the Uttar Pradesh government in Lucknow last month. Gautam Adani attended the previous UP Investor Summit.

According to Karan Adani, the Adani Group currently operates two largest private ports in Andhra Pradesh – Krishnapatnam and Gangavaram – with a total capacity of 100 million tons per year.

“Over the next five years, not only do we want to double that capacity, we want to turn those ports into industrial port cities,” he said.

“By developing industrial clusters in Krishnapatnam and Gangavaram and locating industries, we will be able to drastically reduce logistics costs, making these industries far more competitive globally.”

The group is also developing 15,000 MW of renewable energy projects in the five districts of Anantapur, Kadappa, Kurnool, Visakhapatnam and Vizianagaram over the next few years.

“Our other investments in the state include cement manufacturing units and data centers. Currently we have no cement manufacturing capacity in Andhra Pradesh. Therefore, as part of our expansion plans, we will build cement plants in Kadapa and Nadikudi with a total capacity of 10 million tons per year,” he said.

Also, the group is working on the development of a 400 MW data center in Visakhapatnam.

“These projects will bring further job opportunities and demonstrate our commitment to the sustainable growth of the state of Andhra Pradesh,” he said.

He praised Andhra Pradesh for its “excellent infrastructure, large manufacturing base, talented youth and a business-friendly environment”.

With the second longest coastline in India, the state has been recognized by the World Bank as #1 in implementing energy efficiency and energy saving programs.

Regarding the Adani Foundation’s CSR work, he said, “Our presence in the state of Andhra Pradesh is growing as I speak on this occasion.”

“We are investing in education, health care, nutrition, access to safe water, sports and building an ecosystem of skills and sustainable livelihoods in the state. Our teams run programs in Nellore, Tirupati and Visakhapatnam districts. Currently we have invested over Rs. 4,200 crore and touching over 180,000 lives in the state and counting,” he added.

Its social intervention and outreach programs in 74 villages include educational programs that span schools, 32 evening education centers with scholarship programs, and educational kit distribution.

“We will continue to work with the government to transform lives and livelihoods in the state. We are honored to be part of the sustainable development of the state of Andhra Pradesh,” he added.

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