A new chart has been released that maps out the debt pile of the Gautam Adani group, a conglomerate with interests in sectors such as ports, power, and infrastructure. The chart shows that the group has increased its reliance on global banks for funding.
The chart, created by Financial Times, shows that the group’s total debt has surged over the past five years, from $6 billion in 2016 to $31.7 billion in 2021. The majority of the debt is denominated in foreign currencies, making the group vulnerable to fluctuations in exchange rates.
More About The Chart
Furthermore, the chart reveals that the group’s reliance on global banks for funding has increased significantly. In 2016, only 22% of the group’s debt was owed to international banks, whereas in 2021, this figure has risen to 53%.
This increased reliance on foreign funding comes at a time when the group is expanding rapidly. The group has recently made significant acquisitions in sectors such as airports, data centers, and renewable energy. This expansion has led to concerns about the group’s ability to service its debt.
The Adani group has responded to the chart by stating that the debt figures are not accurate and that the group’s debt is manageable. The group has also pointed out that it has a strong track record of servicing its debt obligations and that it has never defaulted on any of its loans.
Despite the group’s assurances, the chart has raised concerns among investors and analysts. Some experts have warned that the group’s debt could become unsustainable if the global economic environment changes, or if the group’s expansion plans do not go as planned.
The chart has also raised questions about the group’s transparency and governance practices. The Adani group has been criticized in the past for its lack of transparency and its close ties to the Indian government.
