By bigbreakingwire 
The Adani Group, known for its continuous global expansion, has now made a strategic entry into China. According to the company’s regulatory filings, its flagship entity, Adani Enterprises Limited (AEL), has established a wholly-owned subsidiary, Adani Energy Resources Company Limited (AERCL), in Shanghai. This new venture was formed through a subsidiary of Adani Global PTE Ltd., based in Singapore, which is a step-down subsidiary of AEL.
New Company in China to Provide Key Services
As per the regulatory filings, AERCL was officially registered in Shanghai on September 2, 2024, under the company laws of the People’s Republic of China. Although the company has yet to begin commercial operations, its primary focus will be providing supply chain solutions and project management services within China. This move marks a significant step in expanding Adani Group’s footprint in Asia’s largest economy.
Continued Global Expansion by Adani Group
Under AEL, the Adani Group operates a diverse portfolio that includes mining, roads, airports, data centers, and water infrastructure. The group, which already operates seven airports within India, has been actively expanding its international presence, particularly in sectors like airports and infrastructure.
Adani Group’s Recent Move in Kenya
In addition to its China expansion, AEL recently formed a subsidiary company in Kenya called Airports Infrastructure (AIP). This Kenyan entity, established on August 30, 2024, will focus on the acquisition, operation, development, and management of airports in the East African nation.
Adani Group has already submitted a proposal to the Kenyan government to invest in the country’s main airport, Jomo Kenyatta International Airport (JKIA) in Nairobi. The group has proposed a $750 million investment by 2029 for a new terminal and taxiway system, along with an additional $92 million by 2035 for further infrastructure upgrades.
JKIA, which will be Adani’s first airport outside of India, is a critical aviation hub in East Africa, although it faces significant infrastructure challenges. Talks between the Adani Group and the Kenyan government are ongoing regarding the airport’s redevelopment.
Conclusion
Adani Group’s entry into China with the formation of AERCL represents another major step in its global expansion strategy, particularly in supply chain and project management services. Additionally, the group’s ventures in Kenya further demonstrate its ambitions in the airport infrastructure sector, marking a significant chapter in its international growth story.
These expansions highlight the Adani Group’s continued efforts to grow its presence outside India, tapping into global markets with strategic investments in critical infrastructure projects.
This move is aligned with Adani’s broader vision of becoming a key player in the global infrastructure and energy sectors. As the group continues to make strides in both China and Kenya, it positions itself as a dominant force in international markets.
Update
Kenya’s High Court has temporarily blocked the government’s plan to hand over the management of Jomo Kenyatta International Airport (JKIA) to India’s Adani Group. This decision delays the government’s proposal to lease the airport, East Africa’s largest aviation hub, to Adani for 30 years. The court’s intervention comes as legal proceedings unfold regarding the controversial deal.
The Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC) petitioned the court, arguing that Kenya could independently secure the $1.85 billion required to upgrade the Nairobi airport without involving foreign companies. They raised concerns that the 30-year lease could lead to job losses, pose a fiscal risk, and fail to deliver value to taxpayers. As a result, the court issued a stay order, suspending any further actions related to the Adani agreement until the case is fully addressed.
The proposal, initially intended to attract foreign investment, has faced significant backlash since it was leaked in July by a whistleblower. Critics have questioned the transparency of the no-bid contract and expressed fears of potential corruption. Adani’s growing presence in Africa, particularly in infrastructure, has already faced scrutiny due to allegations of corruption in other regions.
For President William Ruto’s government, this ruling is a setback in its push to secure foreign direct investment and shift away from debt-driven economic strategies. The outcome of this case is expected to influence future international partnerships and could reshape Kenya’s approach to economic development and investment policies.
Update
Kenya’s trade union leader announced that airport workers have agreed to return to work after a day-long strike. Both the workers and the government have reached an agreement that no employee will face punishment for participating in the strike. Additionally, no deal will be made with Adani concerning the airport without the union’s approval. The strike is officially over.
Update, 21st November, 2024
Kenyan President William Ruto announced on Nov 21 the cancellation of two Adani Group deals. The first was an airport expansion proposal, and the second was a $736M power transmission line contract signed in October. A court had already suspended the power deal last month.
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