Adani-Sirius Joint Venture Revolutionizes India's $175 Billion Digital Economy
Adani Enterprises Ltd (AEL) has officially announced its collaboration with Sirius, a subsidiary of International Holding Company (IHC) located in the United Arab Emirates (UAE), with the aim of investing in cutting-edge technologies to enhance India's digital economy. This strategic partnership has given rise to a novel joint venture (JV) named Sirius Digitech International, which will be headquartered in Abu Dhabi. The Sirius JV is set to investigate potential ventures in blockchain, artificial intelligence, and the Internet of Things (IoT) within the Indian market.
The newly established investment entity will concentrate on the sectors of finance, health, and environmental sustainability initiatives. Projects involved in these verticals and utilizing emerging technologies are expected to secure funding from the joint venture. However, specific details regarding the capital injection are currently undisclosed to the public.
Reports indicate that the company intends to leverage various digital platforms to access India's rapidly expanding digital economy. Analysts suggest that while the company may initiate new projects from the ground up, the preferred approach for the joint venture would be to invest in already established early-stage projects in India that leverage disruptive emerging technologies.
“Sirius JV will capitalize on the global digital transformation expertise of Sirius and Adani’s strategic insights to focus on leading the $175 billion opportunity in the digitalization of the Indian economy", read the statement. "This digital opportunity is rapidly evolving to become a $1 trillion market by 2030".
Executives at both Adani and Sirius are optimistic about the prospects of the joint venture, relying on the combination of both their strengths. The joint statement hinted at deploying sensor technologies with AI in key industries for “real-time decision making” while mulling opportunities stemming from incorporating blockchain in industrial applications.
Adani will own 49% of the joint venture, while Sirius will enjoy a majority stake of 51%, with Indian regulators required to give final approval before the commencement of business. With over 1.4 billion population, India has been touted as the next frontier for emerging technologies. Web3 and AI startups have set up shops in India despite the murky nature of regulations and harsh government policies.
The banking regulator in India put forth a proposal for AI-driven conversational payments; however, concerns about the potential misuse of generative AI have led officials to adopt a more cautious stance on the technology. In contrast, blockchain technology has witnessed an increasing number of applications in India, and Finance Minister Nirmala Sitharaman has anticipated an adoption rate of 46% by the end of the decade.
