Now there will be no competition of Adani with Ambani! Hindenburg Report did this amazing. Hindenburg Report Impact Gautam Adani Group Suspends Rs 34K Cr Petrochem Project Rival For Mukesh Ambani
Adani Group Suspends Petrochem Project: Gautam Adani’s Adani Group has pulled out of its petrochemical project. This project was worth about Rs 34,900 crore. At the same time, there was also a possibility of strong competition with Mukesh Ambani’s Reliance Industries in this segment.
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Billionaire industrialist Gautam Adani’s stars are in decline after the Hindenburg Research report came out. Burdened under the burden of heavy debt, the Adani group is constantly facing a credit crunch. At the same time, Adani Enterprises, the flagship company of the group, has put the plan of petrochemical business in cold storage.
Adani Group formed a new company ‘Mundra Petrochem Limited’ in 2021 itself for this project which presented a strong challenge to Reliance Industries in the petrochemical segment. It is a wholly owned subsidiary of Adani Enterprises. But now this Rs 34,900 crore project is in trouble.
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Plant to be set up at Mundra Port in Gujarat
PTI has reported quoting sources that the work of this plant to be set up at Mundra Port in Kutch area of Gujarat has stopped. This plant is to be set up on the land of Adani Port and Special Economic Zone (APSEZ).
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Disturbed by the report of Hindenburg Research, Adani Group is continuously consolidating its operations. In this way, he is trying to reduce the credit crunch created among the investors. Along with this, his focus is also on reducing the debt burden.
The report of Hindenburg Research came on 24 January. In this, the American short seller company had accused the Adani Group of inflating the value of its shares and committing accounting fraud. Since then Adani Group is facing credit crunch. Investors’ confidence was shaken, which he is constantly trying to get back.
Plan to make PVC from coal
This petrochemical plant of the company is being developed from scratch, that is, it is a greenfield project. The work of this plant which makes PVC from coal has stopped at the moment. The capacity of this plant is to make 2000 kilo tonnes of PVC annually. For this, every year 31 lakh tonnes of coal will have to be imported from Australia, Russia and other countries.
The company says that the interruption in work will remain till further notice. Regarding the stoppage of plant work, a company spokesperson says that Adani Enterprises will review the growth status of primary sector industries in the coming months.