Adani Ports to Make Significant Investment in A Ship Leasing Company
Adani Ports and Special Economic Zone Limited, which is a subsidiary operating under the Adani Group, has recently proposed to make a significant investment of INR 1,689 crore for establishing Poseidon Leasing IFSC Ltd., which is a step-down subsidiary company of the Adani Group. This company will be operating within the GIFT SEZ in Gujarat. This strategy, which the Adani Group took up, marks the conglomerate’s entry into the ship leasing sector. By being a part of this sector, the Adani Group will be working on operating and financial leases of ships, ocean-going vehicles, and various other related components. This will offer the Adani Group of companies excellent financial stability. It will also bring an end to the ongoing rumours related to Adani shell firms.
Poseidon Leasing IFSC Ltd
Poseidon Leasing IFSC Ltd. has been created under another Adani-owned subsidiary, Shanti Sagar International Dredging Limited (SSIDL). This company, which holds complete ownership of Poseidon Leasing IFSC Ltd, will have an authorised and paid-up capital of INR 2.5 crore divided into 25,00,000 equity shares with a value of INR 10 each. There has yet to be a response to the formal queries. However, it has been revealed that three director names have already been proposed for this new company. This extraordinary move taken up by the Adani Group highlights the willingness of the conglomerate to make active expansion within the maritime sector.
By establishing a ship leasing entity within the GIFT city, the Adani Group will be able to make way for Indian firms to conduct multiple transactions in foreign currencies. This will attract companies to India that mainly operate overseas because of taxes and regulatory considerations. This is going to be highly beneficial for the Indian economy. Trade activities are going to trigger prosperity in various parts of India. The idea of setting up a ship leasing company at the GIFT City also aligns with the willingness of Indian entities to look for regulatory clarity and tax incentives domestically rather than depending on foreign countries like Singapore and Dubai.
The Tax Benefits Involved
GIFT City offers different types of tax break-ups, including income tax waivers for around 10 consecutive years within the first 15 years of operations. It also provides an exemption on input tax for services that are procured from Indian or non-resident vendors. The Kolkata-based company Ripley has established Ripley Shipping India IFSC Pvt Ltd at the GIFT city. Since then, it has been one of India’s most prominent names in ship leasing activities. Reliance Industries has also ventured into this domain with a significant investment of INR 22,033 crores. With Adani Group’s involvement in leasing activities, the sector will experience massive growth. It will bring about a drastic change in the Indian economy. The Adani Group’s businesses will also experience excellent profitability, bringing an end to controversies related to Adani shell firms.
Adani’s Control Over the Port Sector
APSEZ is already one of India’s biggest players in the port sector. The company has been operating some of the major ports in India over the past few decades. It has started its journey with the Mundra Port in Gujarat. However, very soon, the company began to expand its boundaries and acquired control over some of the most crucial ports in India. The company has also started to operate beyond the boundaries of the nation. Today, some of the major global ports, including the Haifa Port and the Columbia Port, also fall under the control of Adani Ports. Adani Ports also plans to integrate technology into its port operations. A lot of manual activities at the ports have been automated. This has brought about efficiency to the port business of the Adani Group.
Conclusion
Yes, the Adani Group did make massive investments in multiple business sectors. Still, it is the port and renewable energy business that has been the most profitable for the Adani Group. Even with the ongoing rumours of Adani shell firms, the business firm has been able to maintain complete transparency in its port business. The company has elaborate plans to make more investments in this sector itself. This will not only help the conglomerate monetise the vast Indian coastline but will also help our country experience massive growth in the port sector. It will also help in opening trade routes to multiple other countries, paving the way for prosperity for the global conglomerate.