At Mundra in Gujarat, Adani Group suspended work on a Rs 34,900 crore petrochemical project, focusing on funds to unite operations and report investor concerns following a US-based short seller report.

In 2021, the group’s flagship Adani Enterprises Limited (AEL) incorporated a wholly owned subsidiary, Mundra Petrochem, for setting up a Greenfield coal-to-PVC plant at the Adani Ports. Besides, a Special Economic Zone (APSEZ) land was set up in the Kutch district of Gujarat.

Post Hindenburg’s January 24 report accusing accounting fraud, stock manipulations, and other corporate governance lapses decayed $140 billion from Gautam Adani Empire’s market value, the apples-to-airport group calms nervous investors and lenders with a comeback strategy. It outlines addressing investor concerns’ debt by repaying some loans, combining operations, and fighting off allegations.

The enterprise denied all allegations raised by Hindenburg. Projects are being re-evaluated based on cash flow and finance available. Media reports said the group planned not to pursue the 1 million tons per annum Green PVC project. The group emailed vendors and suppliers to “suspend all activities” immediately.

Adani Group premeditated the project as PVC demand in India at around 3.5 MTPA rose 7% year-on-year. With near-stagnant domestic production of PVC at 1.4 million tons, India relies on imports to pace demand.

As part of the comeback strategy, it cancelled a Rs 7,000 crore coal plant buying and shelved plans in power trader PTC to save expenses. It has repaid debt and pre-paid finances raised by pledging promoter stakes in group firms.