News Brief
After Kenya Airport Venture, Adani Group Sets Up China Subsidiary for Supply Chain and Project Management
Adani Group. (Representative image).
The Adani Group has set up a new subsidiary in China to carry out the business of supply chain solutions and project management services, according to a regulatory filing.
Adani Enterprises, the group's flagship company, said in the filing that tis Singapore-based step-down subsidiary has incorporated a wholly-owned subsidiary Adani Energy Resources (Shanghai) Co. (AERCL), which is domiciled in Shanghai, China, on 2 September.
"AERCL is incorporated to carry out business of providing supply chain solutions and project management services," the company said, without providing additional details.
Adani Global Pte (AGPTE), Singapore, a step-down subsidiary of Adani Enterprises Ltd (AEL), incorporated the AERCL.
AEL handles the conglomerate’s ventures in mining, roads, airports, data centers, and water infrastructure.
"AERCL has been incorporated and registered under the laws of the People's Republic of China on September 2, 2024," the company said in the filing.
The new Chinese subsidiary of the Adani Group is yet to commence its business operations.
Adani Group, which currently operates seven airports in India, is now seeking to expand its footprint globally.
Earlier, AEL had established Global Airports Operator L.L.C. in Abu Dhabi to handle investments, acquisitions, and operations of airports outside. This entity has now set up the Kenyan subsidiary.
The Adani Group had reportedly submitted a proposal to the Kenyan government, aiming to invest $750 million to develop a new terminal and taxiway system at Nairobi's Jomo Kenyatta International Airport (JKIA) by 2029, along with a further $92 million for upgrades by 2035.
JKIA, which would be Adani's first airport outside India, is a major hub in East Africa but has crumbling infrastructure.
The airport presents an opportunity for Adani to secure a strategic position in the region, boosting trade routes and connectivity.
Discussions between the Adani Group and the Kenyan government are still underway over the proposal.
