Adani’s Gift City division to achieve break-even in nine years

Adani Ports’ subsidiary, Udanvat Leasing IFSC Ltd, is entering the aircraft leasing market with an ambitious plan to achieve net foreign exchange positivity within nine years. The company has outlined a 10-year roadmap and aims to break even in terms of net foreign exchange outgo by year nine, after an initial five-year projected outflow of ₹250 crore.

Udanvat plans to invest ₹555 crore over the next five years, with funding coming from a loan provided by its parent company, Adani Ports. The company’s primary focus will be on acquiring aircraft and leasing them through operating lease agreements, allowing airlines to access aircraft without incurring full ownership costs.

To lead their operations, Udanvat has recruited three seasoned professionals from Adani Group companies. These professionals bring diverse expertise in aviation, finance, and legal aspects, ensuring a smooth takeoff for the new venture.

The company aspires to compete in the global aircraft leasing market and hopes to establish itself as a key player, aligning with the Indian government’s efforts to position GIFT City as a global aviation hub. This comes as other major Indian players like Tata Group’s Air India and IndiGo are also announcing plans for similar ventures in GIFT City, indicating growing confidence in the Indian aviation market and the potential of GIFT City as a key aviation hub.

Adani’s foray into the aircraft leasing space marks another step in the group’s continuous expansion within the aviation sector. With a significant 23% share in India’s airport passenger traffic and the recent establishment of Adani Aviation Fuels in 2022, Udanvat Leasing further solidifies their presence in the aviation ecosystem. The company aims to leverage GIFT City’s potential and contribute to the growth of the Indian aviation market.

This move by Adani comes at a time when other major players are also looking to make similar investments in the aviation space, creating a buzzing atmosphere for the Indian aviation market.