This Is Gautam Adani's Magic Mantra For Successful Infrastructure Execution
In many ways, Adani group has influenced the larger working culture in the infrastructure sector, he said.
By leveraging the Indian banking system and improving credit ratings, the Adani group has successfully executed infrastructure projects while other companies are struggling, said billionaire Gautam Adani.
"In my mind, infra development is the most challenging business, not only in India but anywhere in the world," the Adani Group founder and chairman said at a private event.
The three reasons for infrastructure failure in India are the lack of a planned systemic reform with a long-term roadmap, structural deficiencies in infra-project financing, and the role of the regulator, he said.
"Because of these three structural problems that I mentioned, many of the great infra companies in India either could not survive or decided to exit the sector."
As part of its long-term financial strategy, the Adani group decided to leverage the Indian banking system, he said. "To get good ratings, I tightened disclosure as well as our governance and benchmarked it to the international standard." That helped the company increase exposure from Indian financial institutions to global, Adani said.
"Today, we have a balanced portfolio of debt, with 29% domestic banks, 30% global banks, 34% through global bonds and 7% others."
In many ways, Adani Group has influenced the larger working culture in the infrastructure sector, he said. "The ‘chalta hai’ attitude of development in the infra space, with huge time and cost overruns, is being replaced by a new sense of purpose and urgency. To use a cricket analogy, the Adani Group has influenced the infrastructure sector in the same way as T20 has affected test cricket."
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