Hindenburg: Now Adani cannot compete with Ambani, Hindenburg’s report did wonders
Adani Group Suspends Petrochem Project: Billionaire industrialist Gautam Adani’s stars are fading after the Hindenburg Research report came out. The heavily indebted Adani Group continues to face credit crunch. While the group’s parent company, Adani Enterprises, has put plans for a petrochemical business on the backburner.
Adani Group formed a new company ‘Mundra Petrochem Limited’ in 2021 itself for this project. Which gave a tough challenge to Reliance Industries in the petrochemical segment. It is a wholly owned subsidiary of Adani Enterprises. But now this 34,900 crore project is in trouble.
The plant will be set up at Mundra port in Gujarat
Quoting sources, PTI has informed that the work of this plant to be set up at Mundra port in Kutch region of Gujarat has stopped. The plant is to be set up on the land of Adani Port and Special Economic Zone (APSEZ). Distressed by the report of Hindenburg Research, Adani Group is continuously strengthening its operations. In this way he is trying to reduce the credit crunch that has arisen among the investors. Along with this, his focus is also on reducing the debt burden.
The Hindenburg Research report came out on 24 January. In which the American short seller company accused the Adani Group of increasing its share price and committing accounting fraud. Since then the Adani group has been facing a credit crunch. Investors’ confidence was shaken, which he is constantly trying to regain.
Plan to make PVC from coal
This petrochemical plant of the company is being developed afresh. That is, it is a greenfield project. The plant making PVC from coal has now stopped functioning. The plant has the capacity to produce 2000 kg tonnes of PVC per annum. For this, 31 lakh tonnes of coal has to be imported every year from Australia, Russia and other countries.
According to the company, the work will be interrupted till further notice. Regarding the closure of the plant, a company spokesperson said, Adani Enterprises will review the growth status of priority sector industries in the coming months.
The dominance of Reliance Industries
Reliance Industries dominates the manufacturing of petrochemical granules for plastics. It is the largest petrochemicals company in India. Reliance Industries manufactures a variety of polymers and polyesters. It also contains PVC. In such a situation, due to the closure of this plant of Adani Group, its direct competition with Reliance Industries has now faded.
PVC is the third most widely used synthetic polymer plastic in the world. It is used for laying tiles on the floor of houses, making sewage pipes and other pipes. While it is used in packaging and manufacturing of aprons, covers and packaging materials for electrical cables.