Adani Group suspends PVC project

Recently, according to Indian media reports, India's Adani Group has suspended a polyvinyl chloride (PVC) project with an investment of 349 billion rupees in Mundra, western Gujarat. The group has asked its suppliers to suspend all activities at the 2 million t/yr PVC project and suspend all obligations until further notice.

Adani Enterprises Limited (AEL), one of the group's flagship companies, originally planned to implement the coal-to-PVC project. The project is expected to produce grades of suspension PVC resin, chlorinated PVC and emulsion PVC, AEL said. The company originally planned to build and start production within four years after obtaining all necessary approvals, with the goal of being put into use in 2025-2026. Earlier, Jugeshinder Singh, Chief Financial Officer of Adani Group, announced in the post-earnings conference call on February 15 that the group would review its plan to build a PVC factory in Mundra.

Hindenburg Research, an investment company headquartered in the United States, released a report on January 24 accusing Adani of stock manipulation and improper tax avoidance. Since then, the group's market value has evaporated by more than 145 billion US dollars within a month. Hindenburg Research also reported on Adani Group's mounting debt. As a result of the report, the group has embarked on aggressive debt reduction to regain the confidence of market participants.