Adani Group's ambitious capital expenditure plan, targeting ₹2.1 lakh crore for the current financial year, is reshaping the Indian market landscape. Companies like Hitachi Energy India, Cemindia Projects, and PSP Projects are witnessing significant growth as they align with Adani's infrastructure expansion, which aims to invest nearly $125 billion over five years.
Shares of Hitachi Energy India have surged 197% over two years, while Cemindia Projects and GE Vernova T&D India have gained 152% and 147%, respectively. This growth reflects the increasing investor interest in companies poised to benefit from Adani's extensive capital expenditure pipeline. In the last year alone, BHEL's shares have advanced 79%, and PSP Projects is up 39%.
Adani's strategy involves transforming its relationship with suppliers, viewing them as 'strategic partners' rather than mere vendors. This approach aims to support these companies in becoming world-class enterprises, capable of scaling into large businesses. The model leverages Adani's access to capital and project pipeline with the engineering, manufacturing, and technological capabilities of specialist companies.
PSP Projects, for instance, has seen its order book jump 85% to ₹13,447 crore in FY26, with Adani-linked projects representing 67% of its order book. However, the surge in orders has not yet translated into a comparable improvement in profitability, highlighting the execution challenges that accompany rapid expansion.
Cemindia Projects, acquired by Adani promoter entity Renew Exim, has increased its order book by 34% to ₹24,545 crore in FY26. Its return on capital employed improved to 34%, indicating stronger capital efficiency. Meanwhile, Adani Energy Solutions has raised significant funds through various channels, providing suppliers with greater certainty when committing resources to major projects.
The ecosystem extends beyond companies with direct Adani stakes, with GE Vernova T&D India and others benefiting from Adani-linked contracts. This approach mirrors Apple's extended enterprise model, offering partners access to funded projects and the possibility of scaling revenue and capabilities.
Background
Adani Group's strategy of viewing suppliers as strategic partners is reminiscent of Apple's extended enterprise model, where the company retains control over design and technology while suppliers provide manufacturing capabilities. This approach allows Adani to execute its vast capital program without building every capability internally.
Adani's capital expenditure plan is already reshaping revenue pipelines across various sectors. If the group and its partners can convert these orders into cash and earnings, the $125 billion capex boom could continue producing winners well beyond Adani's own listed companies.
