Adani Ports Monitors Israel Conflict, Assures Business Continuity Plan
Shares of Adani Ports And Economic Zone, owned by billionaire Gautam Adani, experienced a decline of up to 4.5% on Monday as concerns grew over the escalating conflict in Israel, where the company operates a major port. Adani Ports has reassured investors that it is closely monitoring the situation and has implemented a robust business continuity plan to address any potential challenges.
In a statement, the company highlighted that the ongoing conflict is primarily concentrated in South Israel, while the Haifa port, owned by Adani Ports, is situated in the North. Adani Ports emphasized that it remains fully alert and prepared to respond effectively to any eventuality. The Haifa port’s contribution to Adani Ports’ overall cargo volume is relatively small, accounting for only 3%.
Adani Ports acquired the Haifa Port in January for 4 billion shekels ($1.03 billion) and has continued to invest in Israel, as stated by Gautam Adani, the founder and chairman of the Adani Group. Haifa is a significant trading hub on the Mediterranean, located north of the present conflict zone.
Investor concerns have arisen due to the recent military assault launched by Palestinian Islamist group Hamas, resulting in the loss of lives on both sides. However, Adani Ports’ shares have experienced a decline of 2.1% this year, compared to the broader Nifty 50 index, which has gained nearly 8%.
Avinash Gorakshakar, head of research at Profitmart Securities, commented that the next few months may be volatile for Adani Ports due to the ongoing conflict and potential impacts on commodity prices. Additionally, the shares of other listed Adani Group companies also witnessed a decline of 1-4% on Monday.
Adani Ports’ business continuity plan and its focus on the Haifa port’s relatively small contribution to its overall operations provide reassurance to investors. The company remains committed to closely monitoring the situation and ensuring the smooth functioning of its operations amidst the conflict.