Adani's key rival plans $2 bn boost for two airports

GMR Airports Ltd., Adani Group's main rival in India's airports industry, is planning a massive $2 billion investment over the next five to seven years to expand its facilities in New Delhi and Hyderabad. This significant boost in spending reflects optimism for India's aviation market, which is expected to see passenger traffic surge six-fold by 2035, reaching nearly 1.1 billion passengers annually.

The company's executive director for finance and strategy, Saurabh Chawla, revealed that $138 billion will be allocated to Hyderabad's Rajiv Gandhi International Airport and up to $56 billion toward upgrading New Delhi's airport. These modernization efforts aim to accommodate around 80 million passengers at Hyderabad and more than double current traffic at New Delhi, which currently handles 34 million passengers per year.

The funds for these projects will come from a combination of debt and equity, not directly tied to GMR Airports, the holding company. GMR Airports, the largest airport operator in India by passenger volume, currently manages six airports across India, including one in the Philippines and another under construction in Greece. The company is also exploring potential bids for local airport projects that the Indian government plans to auction.

However, GMR Airports, which has a 26.5% stake in France's Aeroports de Paris SA, has no plans to venture into airline operations despite government discussions about allowing airport operators to run airlines.