Adani will not have any competition with Ambani now! The Hindenburg Report did this amazing thing. Gautam Adani Group suspends Mukesh Ambani’s rival Rs 34,000-crore petrochemical project on Hindenburg report impact
Adani Group suspends petrochemical projects: Gautam Adani’s Adani Group has pulled out of its petrochemical projects. The cost of this project was around Rs 34,900 crore. At the same time, this segment also had the prospect of strong competition from Mukesh Ambani’s Reliance Industries.
Image credit source: Representative images
Billionaire industrialist Gautam Adani’s star has fallen after the Hindenburg Research report came out. The heavily indebted Adani Group continues to face credit crunch. At the same time, the group’s flagship company Adani Enterprises has put plans for the petrochemical business on hold.
Adani Group formed a new company ‘Mundra Petrochem Limited’ in 2021 for this project which presented a formidable challenge to Reliance Industries in the petrochemical segment. It is a wholly owned subsidiary of Adani Enterprises. But now the Rs 34,900 crore project is in trouble.
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The plant will be set up at Mundra port in Gujarat
Citing sources, PTI reported that the plant, which was set up at Mundra port in Kutch region of Gujarat, has stopped working. The plant will be set up on Adani Port and Special Economic Zone (APSEZ) land.
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The Adani Group is steadily consolidating its operations, fed up with the Hindenburg Research report. Thus he is trying to reduce the credit crunch among investors. Apart from this, he is also looking at reducing the debt burden.
The Hindenburg Research report arrived on 24 January. In it, the American short-selling firm accused the Adani Group of inflating its share price and 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 built from scratch, i.e. it is a greenfield project. The plant, which manufactures PVC from coal, is currently closed. The capacity of this plant is to produce 2000 kilo tons of PVC per annum. For this every year 31 lakh tons of coal has to be imported from Australia, Russia and other countries.
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The company said that the work will be interrupted until further instructions. Regarding the shutdown of plant operations, a company spokesperson said Adani Enterprises will review the growth status of primary sector industries in the coming months.
Dominance of Reliance Industries
Reliance Industries is dominant in the manufacture of petrochemical granules for plastics. It is the largest petrochemical company in India. Reliance Industries manufactures a variety of polymers and polyesters. It also contains PVC. In such a situation, as this plant of Adani Group is closed, its direct competition with Reliance Industries is not seen at the moment.
PVC is the third most used synthetic polymer plastic in the world. It is used to make house floor tiling, sewage pipes and other pipes. At the same time, it is used to make packaging and aprons, electrical wire covers and packaging materials.
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