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Time of India
5 days ago
- Business
- Time of India
Why Adani's $1.2 billion stake in Haifa Port is more than just business
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A strategic asset in a sensitive region Tired of too many ads? Remove Ads A long history of commercial and military significance India's stake in the IMEC corridor Regional rivalry and security concerns Adani's broader presence in Israel The port's multiplier effect A small asset with high symbolic value Israel's largest oil refinery, Bazan, suspended all operations at its Haifa Port facilities following significant damage from an Iranian missile strike late Monday attack claimed the lives of three employees and triggered large fires across the strategic energy complex. Visuals from the site showed flames raging at the facility, while firefighting teams continued efforts to bring the situation under control, according to Israeli daily Ha' refinery shutdown came after a barrage of Iranian ballistic missiles rained down on Israel's Tel Aviv and the northern port city of Haifa on Monday, killing at least eight people and reducing homes to attack, one of the most direct escalations between Tehran and Tel Aviv in recent years, prompted a chilling response from Israeli Defence Minister Yoav Gallant: the people of Tehran 'will pay the price and soon.'As the conflict intensifies, one of India's most prominent commercial footholds in the region, Haifa Port in northern Israel, is facing renewed by the Adani Group in early 2023, the port is now operating under the shadow of Economic Times reported on June 14 that Iranian ballistic missiles had targeted Haifa and a nearby oil refinery amid heightened hostilities between the two countries. Shrapnel reportedly hit parts of a chemical terminal and refinery close to the the Adani Group denied any damage to port operations. 'False,' said Jugeshinder 'Robbie' Singh, Group CFO , rejecting claims that the facility had been the immediate denial, the situation highlights the growing uncertainty around Adani's investment in the port, valued at approximately $1.2 billion, and the broader risks of commercial activity in a conflict January 2023, Adani Ports and Special Economic Zone Ltd (APSEZ), along with Israel's Gadot Group, completed the purchase of a 70% stake in Haifa Port Company. The consortium had won the Israeli government tender in July 2022, part of a larger effort to privatise the country's port Ports and Gadot Group hold 70%-30% shares respectively in the port handles close to 20 million tonnes of cargo annually, according to its official website, and remains the busiest and most efficient port in Israel. In 2023, it processed 11.7 million tonnes of cargo and 736,138 TEUs, employing around 750 people. It also handled over 410,000 cruise contributes around 3% of Adani Ports' cargo volumes and 5% of its revenue. While these are modest figures in business terms, the port's strategic location, outside Israel's most volatile southern regions, with direct rail and road links to major industrial hubs, gives it geopolitical also provides deep-water access to large vessels and plays a central role in over 30% of Israel's seaborne trade. Crucially, Haifa is adjacent to key Israeli naval installations and has historically served as a base for its submarine port was originally developed by the British in the early 20th century, with construction beginning in 1920 and formal inauguration in 1933. Haifa played an important role during the British Mandate and the early years of Israeli statehood. It has since remained a core part of the country's logistics and naval it sits at the intersection of Israel's economic and military networks, bordering an oil refinery, serving industrial exports, and supporting naval operations. These dual-use characteristics raise the stakes for any foreign Haifa acquisition aligns with India's interest in the proposed India-Middle East-Europe Economic Corridor (IMEC), a multinational initiative involving India, Israel, the UAE, Saudi Arabia, the EU, and the US. The corridor aims to connect Indian ports to Europe via the Arabian Peninsula and Israel, offering a potential alternative to the Red Sea–Suez Canal Prime Minister Benjamin Netanyahu has described Haifa as a critical link in this corridor. For India, a direct stake in the port could help streamline trade with Europe, strengthen logistics infrastructure, and deepen strategic coordination with regional James M. Dorsey, a senior fellow at the S. Rajaratnam School of International Studies, characterised the port acquisition as 'I2U2's first success,' referring to the grouping of India, Israel, the UAE, and the is also a site of competition between global powers. China's Shanghai International Port Group (SIPG) operates a separate terminal in Haifa Bay under a 25-year contract signed in 2015. According to The Times of Israel, the terminal, completed at a cost of $1.7 billion (NIS 5.5 billion), sparked controversy over its proximity to Israel's nuclear submarine base and to US Navy vessels, including the Sixth deal reportedly went ahead without review by Israel's cabinet or National Security Council. US officials, including President Donald Trump, warned that Chinese control of critical infrastructure could jeopardise intelligence sharing and defence cooperation. Under American pressure, Israel abandoned earlier plans to allow further Chinese involvement in port the tender for the older Haifa terminal was awarded to the Adani-Gadot consortium, a decision seen as more acceptable to both Israel and its Western the port, the Adani Group also has interests in Israel's defence sector. In 2018, Adani Enterprises formed a joint venture with Elbit Systems to manufacture Hermes 900 drones at a facility in Hyderabad. These UAVs are actively used by the Israel Defense Systems, according to its 2022 annual report, derives roughly 90% of its revenue from defence and ranks among the world's 25 largest arms manufacturers. As the regional conflict escalates, demand for such drones may rise, but the strategic exposure of Indian firms to foreign defence partnerships in conflict zones remains a complex to Israel Ports Company, maritime transport accounts for nearly 98% of the country's foreign trade, and Haifa is a central hub in that system. The port has a effect on employment, logistics and tourism. Industry estimates suggest each job at Haifa Port supports up to seven jobs in related Blumenthal, CEO of Israel Ports Company, called the opening of the new Haifa Bay terminal 'one of the most important infrastructure projects for Israel's future,' according to The Times of Israel. The entry of private operators is expected to increase competition among Israel's three main ports — Haifa, Ashdod, and Eilat — and improve service the Adani Group, Haifa is a small part of a much larger logistics empire. The company operates 13 ports in India and handles 24% of the country's maritime cargo. But Haifa's importance lies not in volume but in what it represents: a shift in India's global port is a test case for India's ability to invest, operate and maintain critical infrastructure in geopolitically sensitive regions. The challenges are significant. As regional dynamics shift amid a raging conflict, the security of Indian assets in West Asia is no longer for now, the port remains operational, and Adani's investment continues to signal India's willingness to take calculated risks abroad in pursuit of longer-term strategic and economic goals.
India.com
14-06-2025
- Business
- India.com
Iran Israel war: Bad news for Gautam Adani due to...
Gautam Adani has extensive investments in Israel. (File) Iran-Israel War: The recent escalation in the Iran-Israel war has brought major concerns for Gautam Adani, India's second richest man, as the Adani Group boss has made huge investments in Israel, which are now under a major threat as the conflict in the Middle East is likely to boil over into a major military confrontation between Iran and Israel. As per details, Gautam Adani-led Adani Group has extensive investments in Israel, ranging from high-stakes defense ventures with Israeli defense firms, to the Haifa port, in which the group, in partnership with Israel's Gadot Group, purchased a 70 percent stake in 2023 for $1.2 billion. Adani Ports has major stake in Israel's Haifa Port The Haifa Port is one of key trade ports for Israel, and also accounts for around 3 percent of the total cargo volume of Adani Ports. However, Gautam Adani's investment in the Israeli port is now under serious threat due to escalation in the Iran-Israel war. According, regional stability has drastically declined amid the raging Iran-Israel war, and could result in delays in cargo delivery at the Haifa Port and changes in shipping routes. Iran launched a barrage of drones and missiles at Israel on the intervening night of Friday and Saturday in response to the latter airstrikes in the country, that killed several top Iranian military commanders and nuclear scientists. The Haifa Port remained untouched in the Iranian assault as it located in northern Israel, while the attack took place in the southern part. However, future Iranian attacks may not spare's Israel's north, and also threatens to affect Mediterranean trade routes. Adani Group's joint defense ventures in Israel Notably, Gautam Adani's investments in Israel are not limited to ports, but extend to significant joint defense ventures in the Jewish state. In 2018, Adani Enterprises partnered with Israel's Elbit Systems, establishing the Adani Elbit Advanced Systems India, which manufactures Hermes 900 drones in Hyderabad, that are extensively used by the Israeli Defense Forces (IDF). While Adani's defense venture is likely to benefit from the ongoing conflict, his investment in Haifa Port faces a major threat as tensions escalate.
