Adani Group forges AI joint venture with Middle East backer IHC

Published Thu, Dec 28, 2023 · 06:02 PM

The Adani Group, led by Gautam Adani, has formed a joint venture (JV) with a unit of the United Arab Emirates’ International Holding Co (IHC) to explore artificial intelligence (AI) and other technologies, signalling deepening ties between the Indian conglomerate and its Middle East backers.

Adani Global and IHC’s Sirius International Holding will own 49 per cent and 51 per cent, respectively, in Sirius Digitech International, which will be based in Abu Dhabi, according to an exchange filing on Thursday (Dec 28). Both partners will have an equal representation on the board of new entity, which will also explore the Internet of Things and blockchain, besides AI, it added.

Adani Global is a wholly owned subsidiary of flagship Adani Enterprises, which has a track record of incubating new businesses within the ports-to-power conglomerate. The JV aims to tap the US$175 billion India digitisation opportunity across areas including fintech, healthtech and greentech, the filing said.

The collaboration with IHC – Adani also raised its stake in the flagship to almost 5 per cent in October – shows how the billionaire’s conglomerate is getting renewed support and returning to its aggressive expansion plans, after being battered by a short seller attack in January.

Adani Group has been clawing back lost ground in recent months, regaining investor and lender confidence after denying Hindenburg Research’s scathing allegations of corporate fraud.

IHC is a US$239 billion conglomerate led by UAE National Security Adviser Sheikh Tahnoun bin Zayed Al Nahyan. Sheikh Tahnoun oversees a US$1.5 trillion empire that also includes G42 – an Abu Dhabi firm that has been at the forefront of the UAE’s push into AI. Bloomberg