Adani Group Brochure
Transcript of Adani Group Brochure
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2020
ADANI ENTERPRISES LIMITED.
BUSINESS-READY TODAY.
FOR AN EXCITING TOMORROW.
A
P R O D U C T • i n f o @ t r
i s y s c o m . c
o m
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THIS ISINDIA’S
FUTURETHIS ISINDIA’S MORE PEOPLE.
HIGHER INCOMES.
MORE AUTOMOBILES.
LARGER HOMES.
GREATER AFFLUENCE.
BIGGER FACTORIES.
INADEQUATE ENERGY.LESS FOOD.
A team of committed professionals in contact with the
communities are planning and implementing developmental
programmes, through the active involvement andparticipation of communities. We believe in holistic
development, which is why we simultaneously work on a
variety of issues in each community. Our participatory
approach ensured a sense of ownership for the services
provided and the community wealth created.
Education: With an objective to improve the quality of
education in the schools, Adani Foundation provides material,
infrastructure and programme support in village schools.
Functioning through educational volunteers appointed at
schools, more than 17,000 children are covered under various
activities/programmes with guidance from the UNICEF. To
improve the quality of education, we adopted a three-
pronged strategy: teachers’ effectiveness, school
infrastructure and community participation
With the objective to provide competent manpower to the
infrastructure sector reeling under a sizeable shortage of
intellectual capital, Adani set up Adani Institute of
Infrastructure Management (AIIM) in Ahmedabad, which
offers one and two-year programmes for budding talent
looking to establish a career in this field and short-duration
packages for existing practitioners.
Community health: Adani Foundation provides basic
healthcare services at its three rural clinics and through twomobile vans catering to over 20,000 people every month. The
Foundation organises various health camps like eye check-up
camps, general health camps, gynaecology check-up camps
and blood donation camps at regular intervals. With an
objective to create awareness among people about various
health issues, immunisation, importance of vaccination during
pregnancy and general hygiene, we celebrate ‘Mamta Divas’
in villages.
Under the ‘Kidney Stone Project – Prevention, Detection and
Intervention’, which is in pilot stage, the Foundation caters to
patients suffering from kidney stone problems. The problems
are a result of the high salinity of water in the region. The
project has innovative featuresawareness campaigns through
the folk mediums of Bhavai, Dairo and street plays; detection
camps at cluster level and free treatment of all identified
patients. In addition to improving the quality of potablewater and, in turn, avoiding such ailments, we installed a
reverse osmosis (RO) machine for water purification across a
large number of schools.
Similarly, with an objective to develop and promote
sustainable solutions to the problems of inadequate
sanitation and promote hygienic environment, this campaign
was started in the cluster villages of Mundra taluka. This
programme recognises the diverse needs and capacities of
the communities in rural area and strives towards ‘Nirmal
Gram-Clean and Healthy Village’. The Adani Foundation was
successful in helping 21 villages achieve 100% sanitation
coverage.
In collaboration with the Government of Gujarat, Adani set
up the Gujarat Adani Institute of Medical Sciences, Bhuj, a
medical college attached to a state-of-the-art G.K. General
Hospital with most sophisticated equipment and facilities.
Sustainable livelihood development: We strive to bring
about change in the quality of life of communities. We work
through sustainable livelihood activities. We undertake skill
development activities for specialised services and
entrepreneurship for rural youth – men and women. Persons
have been trained in diesel engine repair and maintenance,
automobile repair and maintenance, beauty parlour training,sewing and garment making and car driving, among other
activities. We support village institute development through
self-help groups for women, farmers, youth and cattle
owners. Cattle owners were gratified as their cattle were
saved from epidemic diseases with timely intervention
through vaccination and cattle health camps. Ma jor
intervention in water conservation work is being done
through drip irrigation, check dams, canal construction, pond
deepening and pitching.
Adani Foundation donates to various institutions to sustain
initiatives for the community and society.
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Adani Enterprises LimitedThe Adani Group (founded 1988) is one of India’s fastest-
growing business houses.
Adani metamorphosized from being a trusted trading house
into a multi-business conglomerate comprising commodity
trading on the one hand and the development of
infrastructure and energy business on the other.
Adani is among India’s top 10 business houses by market
capitalisation.
The Adani vision: To be a globally preferred business associate
– an entrepreneurial organisation having responsible concern
for employees, society, ecology and stakeholder value.
The Adani mission: To acquire, develop, assimilate and
manage knowledge; to profitably apply this across our
businesses for the benefit of stakeholders.
Acquire, develop, assimilate and manage knowledge: We
shall actively seek to become experts in our chosen domains.
Apply knowledge across our businesses: We shall apply our
domain expertise across businesses to deliver optimum valueto our stakeholders
THEADANI FOCUS.ENERGY SECURITY.FOOD SECURITY.SELF-RELIANT INDIA.
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Our businessesCoal: Adani is the largest importer and supplier of coal in India
and enjoys mining rights in Indonesia and Australia. Adani
supplies nearly 30 million tonnes of coal in India; it expects to
manage 200 million tonnes of coal by 2020.
Agro-products: Adani is also engaged in the business of agro-
products (wheat, pulses and edible oil); its ‘Fortune’ brand is thelargest edible oil brand in India today.
Infrastructure: Adani has been engaged in the creation of a
port and a special economic zone, logistic management
(shipping to container train movement), storage and movement
(food grain and orchard products) as well as realty development.
Adani established India’s largest private sector port and Special
Economic Zone at Mundra (Gujarat) and is engaged in
developing ports/terminals at Dahej, Hazira and Mormugao. The
Group handles about 40 million tonnes of cargo, expected to
increase to 200 million tonnes by 2020.
Power: Adani is implementing 18,500 MW of power generationprojects at seven locations in India with the objective of raising STRATEGIC OVERVIEW1 The strategic acquisition of input resources (India and abroad)
THE SWEEPING
ADANI STRATEGY.
Adani
Enterprises
Limited
Coal
mining
Coaltrading
Powertrading
Ports,shipping and
logistics
AgrocommoditiesCity gas
distribution
Oil and gasexploration
Powergeneration
andtransmission
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200million MT of coal resources (mined and managed) by 2020
200million MT of cargo handling capability by 2020
20,000MW of generation capacity to be commissioned by 2020
20 capsize ships with a 170,000 DWT capacity each by 2020
THE BIGADANI NUMBERS.
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A HOLISTIC
ADANI APPROACH
THINKING BIG
FOR INDIA
THINKING BIG
FOR INDIA
THINKING BIG
FOR INDIA
Adani’s coal throughput (owned and traded) will account for close to half of India’s projected requirement.
Adani’s port infrastructure will handle close to one-sixth of the total cargo handled by minor ports of India.
Adani’s power generation capacity will be one-twelfth of India’s projected capacity.
TRADING BUSINESSCoal
Power
Agricultural products
Petroleum products
A HOLISTIC APPROACH. A DYNAMIC REALITY.Proactive creation of a holding company with focused subsidiaries
Rapid transformation from a trading house into an asset-backed conglomerate
Timely extension from the ownership of Indian resource assets to global ownership
Effective graduation from standalone to integrated businesses across the value chain
Prudent derisking of the business model for safe, secure and sustainable returns
Building on our trading and domain expertise to develop an attractive portfolio of steady
infrastructure assets.
ASSET OWNERSHIP
Coal mining
Arrangement to mine coal in In donesia and Australia
Arrangement to operate and develop coal mines in India
Allocation of captive coal blocks
Power generation
1,980 MW operational
18,500 MW under implementation
800 KM transmission lines operational
2,400 KM transmission lines u nder implementation
Port and shipping
Full-fledged port with comprehensive inland connectivity and mechanised cargo handling at
Mundra with a capacity of 150 MMTPA
Terminals at Dahej with a capacity of 20 MMTPA; developing ports at Hazira and Mormugao
Owns two CAPEsize ships; creating a captive fleet comprising 20 CAPEsize vessels
SEZ
One of India’s largest SEZs with excellent inland connectivity, utilities and social and recreational
infrastructure
Real estateProjects under development in Ahmedabad and Mumbai aggregating a saleable area of around
45 million sq. ft
Agro
Refining capacity of 4,040 tpd; crushing capacity of 5,850 tpd and hydrogenation capacity of
1,375 tpd
Post-harvest preservation infrastructure
– About 18,000 MT of controlled atmospheric storage capacity (CASF) for fruits and vegetables
– State-of-the-art silos for 5,50,000 MT of food grain storage and specially designed wagons for
grain movement
Oil and gas
City gas distribution across eight cities
Bunkering
Oil and gas exploration across eight blocks
A HOLISTIC
ADANI APPROACH
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GROUP HOLDINGSTRUCTURE PROMOTER GROUP
Energy
Power generationAdani Power Ltd
(70.25% holding by AEL)
Oil and gas explorationAdani WelspunExploration Ltd
CASF for fruits andvegetables
Adani Agri-Fresh Ltd
DahejAdani Petronet (Dahej)
Port Pvt. Ltd
Gas distributionAdani Gas Ltd
Grain silos and wagonsAdani Agri-Logistics Ltd
HaziraAdani HaziraPort Pvt Ltd
Adani Township and RealEstate Company Pvt Ltd
Shantigram, Ahmedabad
BunkeringChemoil Adani Ltd
MormugaoAdani Mormugao Terminal
Port Pvt Ltd
Trading – power and coalTrading desk – AdaniEnterprises Ltd
Ship owningAdani Shipping Pte Ltd,Singapore
Integrated coalmanagement
Coal desk – AdaniEnterprises Ltd
LogisticsAdani Logistics Ltd
PortMundra Port and SEZ Ltd
(77.50% holding by AEL)
Real estatedevelopment
Adani Infrastructure
Developers Pvt Ltd
Bandra Kurla complex,
Mumbai
Khatau, Mumbai
Edible oil and agri-trading
Adani Wilmar Ltd
Agri-businesses Port and logistics Realty development
Holds 78% in AEL
Adani Enterprises Limited (AEL)
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THE ADANI GROUP.OUR COMPETITIVE
ADVANTAGE.
THE ADANI GROUP.OURCOMPETITIVE
ADVANTAGE.
BUSINESS STRATEGYOur strategy is to capture and enhance value
across our product chain. Hence, we have
gratuated from conventional trading to value-
enhancing businesses through asset ownership
and value-chain integration.
We prudently positioned our presence
in sectors of national priority, namely energy,
agriculture and infrastructure. Going forward,
our strategy is focused on deriving the maximum
value from integrated asset-heavy businesses
by leveraging our rich experience in commodity
trading.
SYNERGIC GROWTHOur trading business complements our relatively
new businesses, such as power generation and
transmission, coal mining, oil and gas
exploration, ports and shipping. In addition, our
new businesses are closely linked to each other:
Coal trading and coal mining complement
power, ports, shipping and internal logistics
Power, port and internal logistics position the
SEZ as a preferred industrial destination
Oil and gas exploration is linked to power
generation, bunkering and city gas distribution
Logistic infrastructure is our competitive
advantage when it comes to agri-businesses,
agri-trading and coal-trading
This ensures that the opportunities in one sector
can cascade into growth for multiple businesses.
Also, our diversified business presence
diminishes risks associated with specific sectoral
dynamics, namely seasonality/cyclicality of a
particular sector.
PROVEN SKILLSWe have a noteworthy track record of the
successful development and execution of large
ticket projects over a wide range of
infrastructure sectors. Our capabilities to access
financing sources, partners and industry
expertise enable us to identify and value newprojects effectively, assess risks and opt for an
out-of-the-box entrepreneurial approach. This is
reflected in the massive growth in our Group
earnings.
COMMITTED AND COMPETENTTEAMWe build entrepreneurs, we empower people to
take risks, experiment, set newer and higher
goals and provide them with the resources to
succeed. We encourage members to satiate their
hunger to learn, think laterally and experiment
with out-of-the box solutions which add value
to the individual and organisation. This helps
attract and retain superior intellectual capital.
We have grown into an over 8,500 member
team with a singular objective: create value for
our stakeholders.
PURSUIT OF OPPORTUNITIESWe understand that resources in India are
overstretched or inadequate to meet steep
infrastructure addition targets. To overcome this
barrier, we partnered with global and Indian
corporates, which enhanced our capabilities
and allowed us to emerge among the first to
address specific industry opportunities. We
demonstrated our ability to operate joint
ventures in diverse businesses, namely port,
power, coal mining (MDO), agri-business, oil
and gas exploration and bunkering.
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SO WHAT IS ADANI ENTERPRISES LIMITED?
2 LISTED SUBSIDIARIES ................... 3 MAJOR SECTORS
8,500+ PERSONS GAINFULLY EMPLOYED .............
70+ LOCATIONS........................... 50+ COUNTRIES
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WHAT MAKES OURBUSINESS MODELUNIQUE.
AMONG INDIA’S TOP FIVE PLAYERS IN THE
POWER SECTOR ............................................
AMONG INDIA’S LEADING PRIVATE SECTOR
PLAYERS IN THE PORT SECTOR ..................
ONE OF INDIA’S LEADING RESOURCE
MANAGEMENT COMPANIES ........................
ALL BUNCHED INTO ONE.
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PIT-HEAD TOPLUG-POINT POWERPLAYIntegrated yet independent (captive and commercial use).
BUSINESS MODEL BUSINESS MODEL
The Adani Enterprises integration comprises resources at one end and power
transmission at the other. This integration chain is the most extensive in India’sprivate power sector. This will translate into cost-competitiveness, derisking andsustainability.
TradingMining
Power
Coal
procurementPower
generationPower
transmission
Logistics
for coal
transportation
Port
Coal mines
Coal
Imports
Coal
MDO
}Long-term
PPA
agreements
Power
trading
In-house
consumption
Assured
revenue
visibility
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COALINTEGRATION LOGISTICS
Four coal
mines for MDO
operations
(access to 3.36
billion MT)
Coal imports
(29 million MT
in FY 2010)
Coal
in hand
Coal to
designated
power plants of
SEBs
Coal for in-
house powergeneration
Increased trading
volumes at Mundra,
Dahej, Mormugao and
other Indian ports –
grows revenues
exponentially
Coal marketed
to other users
Two captive
mines with 8
billion MT proven
reserves
(Indonesia and
Australia)
Private
operational railway lines
Mundra-Adipur
(connectivity with the
port and SEZ): 64 kms
(being doubled)
Mundra port-power
plants: 22 kms
License for
container train
operations across
India
Movement of
material to and
from the SEZ
plants
Movement of any
material from
Mundra or any other
Indian port to any
market in India
BenefitsTimely and cost effective
delivery of coal to captive
power plantsDifferentiates the SEZ from
other SEZs in the hinterland
Positions Mundra Port as
the preferred trading
destination on the west
coast of India.
Movement of any
material from
anywhere in India to
Mundra or any otherIndian port for
exports
Owns rakes
and customised
wagons for
material
management
Logistic
infrastructure and
management
Operational inland
container depots (ICDs)
at Patli (Haryana) and
Kishangarh (Rajasthan);
many more are under
development across
the country
Movement
of coal to the
power plants
BUSINESS MODEL BUSINESS MODEL
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THE PORT WAYTHE PORTWAYThe port infrastructure business of Adani Enterprise will not only service thegrowing volumes of resources required for its captive group consumption butalso service the widening needs of industries located in the hinterland, catalysingnational economic progress.
THE TRADING BASEAdani Enterprises is leveraging its knowledge in thebusinesses of resources, coal and power through agrowing trading presence, resulting in a real-timeknowledge of industry realities and consequently, amore effective capture of the business value chain.
The combined benefits of port + SEZ + logistics drew Thermax
and Kalyani Forge-ABB Alstom to establish a large fabrication unit at
Mundra for its odd-size equipment and heavy power generation equipment,
a revenue spinner for the SEZ, the port and the Gujarat government.
A diverse
product
mix includes coal,
food grains, soya
meal, castor meal,
minerals and
fertilisers
POWER
MUNDRA PORT
LOGISTICS
World’s largest
coal terminal
For coal imports for
Adani Power, Tata
Power and trading
purposes
Power business
Provides large and
growing coal
volumes for the port
SEZ
Symbiotic relation
between ports and SEZ
which feed into the success
of each other especially
when provided power and
multiple connectivity
options with the port
and the hinterland
Crude oil and
petroleum products
The logistic
infrastructure (IOCL and
HPCL) provides assured
volumes for the port.
Increased crude volumes
at Mundra providingstrong revenue
visibility
Single point
mooring
Second one under
construction for
managing crude of
GGSRL Bhatinda
Coal trading
Power trading
Long-term supply
arrangements with
miners in Indonesia,
Australia and South
Africa
1) Mundra Port gets more business volumes
2) Logistic business revenue grows
3) The cash cow business will fund future asset-heavy business initiatives
1) Profitability of the power business to increase significantly
2) A cash cow business will fund future asset-heavy business initiatives
Trading done through
divisions Adani Dubai
and Adani Singapore
Healthy business
relations for supply to
large consumers namely
state utilities and large
power generation
companies
Coal throughput to
account for about 50%
of India’s coal
requirement by 2020
More than six years
in this space with
over 10 billion kWh
traded between
FY2004 and FY2010
Designated as a
Category I power trader
allowing it uncapped
trading volumes
Obtained membership on
first power exchange of
India creating more
trading volumes
Trading volumes to
multiply as availability of
merchant power to
increase multi-fold
Integration
expected to
accelerate growth
of synergic
businesses
BUSINESS MODEL BUSINESS MODEL
THETRADING BASE
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RESOURCESWhat a nation achieves above the ground
will be influenced by how the countryleverages resources below it.
Most energy companies areresponding to declining coalavailability with mining coal ortrading coal.
Adani is responding to this realitywith a strategy that goes further.Through mining, developing and
operations.
O u r b u s i n e s s RESOURCES
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Adani, India’s largest coal trading house, entered into the coal-mining business as a value-
capturing proposition. It proactively invested to acquire 8 billion MT of thermal coal assets
globally. Its mining, developing and operations (MDO) model provides end-to-end
solutions, namely mine planning, mining and railway siding creation to facilitate timely
resource evacuation and delivery leading to logistic efficiency. AEL also tied up with various
state governments to develop coal blocks awarded to state electricity boards by the
Government of India. The coal will be mined, washed and delivered to designated plants
being set up by SEB.
Arrangement to mine coal in Indonesia t hrough its 100% subsidiary to feed Adani
Power’s Mundra plant
Arrangement to operate and develop coal mines in India
Allocation of captive coal blocks
Acquisition of a 100% interest in Galilee tenement in Queensland, Australia, the largest
investment by an Indian company in Australia
MININGINITIATIVES
OUR COAL MINING OPERATIONS
Parsa-Kente Macchakata Parsa Chendi pada Bunyu Galilee
tenement
L oc ati on C hh att isg ar h, O ri ssa , C hh att isg ar h, O ri ss a, I nd one si a Q ueen sl an d,
India India India India Australia
Mineable 452 1,244 170 1,500 150 7,800
reserve(MM MT)
Average F grade F grade F grade E/F grade F grade D/E/F grade
grade
Capacity 15 50 5 40 11 60
p.a. at peak
level (MM MT)
MININGINITIATIVES
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A GROWINGSECURED ACCESS
TO COAL RESULTEDIN TWO BIG ADANIACHIEVEMENTS.
One: Adani emerged as a trusted supplier to largethermal coal users like state utilities and largepower generating companies.
The result: We account for nearly half of all thethermal coal imported into India.
Two: Adani has sufficed for all its resourcerequirements for the time it has 20,000 MW ofpower generating assets on stream.
The result: Complete resource derisking.
A GROWINGSECURED ACCESS
TO COAL RESULTEDIN TWO BIG ADANIACHIEVEMENTS.
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POWERPOWERMore power will mean faster growthfor company and country
O u r b u s i n e s s
India suffers from a huge powerdeficit.Adani is investing today to create 20,000 MW of power generating
capacity by 2020, one of the largest in the Indian private sector.
Adani is currently engaged in developing 18,500 MW of power
generation capacity across seven projects in India. It is also engaged in
power transmission and trading. It is expected that Adani will
contribute 32% of the incremental capacity added by nine key private
power generating companies in India in 2010-12.
POWER
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POWERGENERATION
POWERTRANSMISSION
India suffers from one of the world’s
lowest per capita power consumption
figures. A mere 612 kWh compared with
14,240 kWh in the US and 18,408 kWhin Canada.
Adani Enterprises is creating power
generating plants across seven locations
with a sense of urgency before 2020.
India’s emerging power
generating capacities could
be potentially constrained by
inadequate fuel linkages.
Adani progressively secured
its fuel linkages, which will
lead to uninterrupted power
generation at peak capacity.
Adani is also developing transmission lines to carry power to
the nearest sub-stations.
POWERTRADINGAdani entered the business of power trading in 2003; it had traded over 10 billion kWh till March 31, 2010. Adani is a
Category 1 power trader as designated by CERC and can trade any volume of electricity throughout India except Jammu and
Kashmir. It also obtained membership of the first power exchange.
OUR COMPETITIVE STRENGTHS INTHIS BUSINESSLand: Adani acquired sufficient land for its
20,000-MW capacity, paying adequate compensation
to land owners.
Coal linkages: Adani secured adequate domestic coal
resources for its envisioned power generation
programme. It bought coal mines in Australia
(estimated reserves of 7.8 billion tonnes) and Indonesia
(estimated reserves of 150 million tonnes), providing
coal supply security for its generation capacities.
Backward and forward linkages: Adani enjoys
synergies in coal mining, coal trading, shipping and
power trading. Power generation and transmission help
complete the value chain.
Power purchase agreements (PPA): Adani secured
PPA for 6,144 MW capacity with various state utilities
and is exploring opportunities for finalising new PPA
deals.
POWER GENERATING LOCATIONS
Location Capacity (MW)
Mundra, Gujarat 4,620
Tiroda, Maharashtra 3,300
Kawai, Rajasthan 1,320
Dahej, Gujarat 2,640
Chhindwara, Madhya Pradesh 1,320
Bhadreshwar, Gujarat 3,300
Chendipada, Odissha 2,000
TOTAL 18,500
Currently, 1,980 MW of power generation capacity is on stream at Mundra.
Connecting location Connecting sub-station Configuration Capacity
Mundra phase I & II Dehgam, Gandhinagar PGCIl 400 kv 1,000 MW
Mundra phase II I (866-km line)
Mundra phase IV Mah indragarh, Haryana Haryana S ta te Uti li ty 500 kv HVDC 2,500 MW
(2,000-km line under
construction)
Tiroda Waroda, Maharashtra MSETCL2 400 kv 1,000 MW
(400-km line under
construction)
The lines for Mundra Phase I, II and III are operational.
POWERTRANSMISSION
POWERTRADINGAdani entered the business of power trading in 2003; it had traded over 10 billion kWh till March 31, 2010. Adani is a
Category 1 power trader as designated by CERC and can trade any volume of electricity throughout India except Jammu and
Kashmir. It also obtained membership of the first power exchange.
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PORTSPorts will not only provide standalonerevenues but also grow our theresources business. O
u r b u s i n e s s
Ports take a long time to becommissioned and mature.Adani built India’s largest private and multi-product port-
based SEZ under Mundra Port and SEZ Limited. The port
grew at a CAGR of 50%-plus between 2004 and 2010.
And reported the third-largest container cargo
throughput in India in 2009-10.
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THIS IS OUR
COMPETITIVE EDGE.
THIS IS OUR
COMPETITIVE EDGE.Capacity: Capable of handling about 150 million tonnes ofcargo per annum at Mundra
THE MUNDRAADVANTAGE
Adequate: Comprehensive facilities to facilitate a quick
turnaround
- Terminal 1 and 2: Eight cargo berths handling dry and
liquid bulk
- Dedicated container terminal; dedicated ‘ Ro-Ro’ terminal;
world’s largest dedicated coal import terminal (60 million MT
tonne capacity)
- Single point mooring: Handles large crude carriers
- Storage capacity 800,000 sq. metres including liquid
storage
- Tug fleet for 24x7 operations; dredger fleet for capital and
maintenance dredging
- Private railway lines
Strategic location: A 322-km advantage in reaching Delhi
over Mumbai; 392-km advantage in reaching Bhatinda over
Mumbai.
Linkages: IOCL created a crude pipeline from Mundra Port to
Panipat; HPCL created a Mundra-Delhi petroleum product
pipeline.
Storage: Impressive locational storage infrastructure (liquid
3,42,000 KL, crude oil 7,00,000 KL and PoL 3,00,000 KL).
Other advantages: Mundra’s draft of 17 m and 32 m isdeeper than most ports in India, ideal for large vessels.
Edge: Bunkering facilities, currently being expanded
Rail linkages: Linkages being established with key
consumption centres:
The 64-km Mundra-Adipur line is being double-lined and
22-km line between the port and power plant (all private
lines).
Gandhidham-Bhildi-Palanpur to be double-lined. Bhildi-Luni
conversion completed. Double stacking on trains from
Mundra (all public lines).
Multi-service: Cargo basket comprising cars, fertilisers,
bunker fuel and other liquid cargo, coal and containers.
FACTS
Mundra is the best location in India; Gujarat is the most
progressive state in India; cargo handling at Mundra
Port grew at a CAGR of close to 50% between 2004
and 2010.
The absence of pricing control for minor ports puts
Mundra at an advantage; as pricing is not capped by
the Central Government’s ruling like the major ports.
Mundra Port’s alongside draft of 17 m and 32 m (short
distance from the shore) is larger than that of most
ports in India and comparable with that of Chinese
ports.
The symbiotic relation between the port and SEZ will
complement the success of both. The SEZ provides
captive traffic and Mundra Port differentiates this SEZ
from others in the hinterland.
Globally, shippers moving larger vessels require deep-
water berths, making Mundra a preferred destination
on the Indian coastline.
ESTIMATES
The deep-draft, high level of mechanisation and
adequate capacity to manage additional load is
expected to attract shippers willing to pay a premium
over the pricing at major ports in India.
Revenue growth from this business is expected to grow
significantly for an important reason: captive traffic
(based on long-term agreements) is expected to rise
significantly.
The Planning Commission estimates a shortage of 50
million tonnes of coal in 2012; but the shortage is
expected to scale to 85 million tonnes considering
optimistic assumptions; this increases the incidence of
coal imports and benefits to the Group, which accounts
for 50% of coal imports into India.
The commissioning of the new coal terminal and coal
imports beginning from Adani Power and Tata Power is
expected to boost cargo throughput at Mundra
significantly.
PORTS
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PORTSMundra: India’s largest private sector multi-user
port
Dahej: Bulk berths with sub-concession from
Petronet LNG Limited
Mormugao: Developing a coal handling berth
at this port
Hazira: Developing a multi-cargo terminal
SEZMundra SEZ: Multi-product SEZ at Mundra; the
only facility of its kind in India
LOGISTICSAdani Logistics: Six rakes of container trains and
two inland container depots (ICDs) at Patli and
Kishangarh are operational. Adani is involved in
the business of export-import and domestic
cargo movement including automobile cargo
movement.
MUNDRA PORT AND SEZ LIMITED
TOTAL LOGISTICSOLUTIONS
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OUR OTHERPORT COMPANIESOUR OTHERPORT COMPANIES
ADANI PETRONET (DAHEJ) PORT PVT. LTD.Mechanised solid cargo port terminal of 20 million tonnes and two
berths with a 16-metre draft
Strategic location in terms of proximity to good rail linkages and road
connectivity
Port open for commercial operations from August 2010
ADANI HAZIRA PORT PVT. LTD.Initial developments: 3 berths (1,500 metres berth length); potential
to develop up to 13 berths
Average draft: 15 metres
ADANI MORMUGAO TERMINAL PORT PVT. LTD.Signed concession to operate coal berth at Mormugao Port
Strategic location to cater to South Maharashtra and Bellary, Hospet
area
Around 300-metre berth length with back-up facility; 14.5-metre draft
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ENERGYADDITIONAL GROWTH DRIVERS
CITY GAS DISTRIBUTION
Current business operation: Distributing compressed and piped natural
gas in Ahmedabad, Vadodara, and Faridabad
Current status: 60 CNG stations; 90,000 domestic; 450 industrial and
600 commercial connections. Steel ring network of over 330 km and PE
network of over 1,800 km
Ramp up: Operations to be expanded in the cities of Noida, Khurja,
Lucknow, Jaipur and Udaipur
Total planned steel ring network of 500 km and 97 CNG stations across
8 cities
OIL AND GAS EXPLORATION (JV WITH WELSPUNGROUP OF GUJARAT)
Awarded two onshore blocks through a consortium with majority stake
in NELP VI (at Bharuch, Gujarat and at Marghreita, Assam)
Operators in two onshore blocks in the Khorat Basin by the Government
of Thailand
Awarded a new offshore block in the north-west part of the Surat
depression of the Mumbai off-shore basin
Awarded a block in the Gulf of Suez, Egypt, in partnership with GSPC
Awarded two off-shore blocks in the Gulf of Kutch in NELP IX, in
consortium with Oil and Natural Gas Corporation Ltd, Indian Oil
Corporation Ltd and Gujarat State Petroleum Corporation Ltd.
SHIP FUELLING (JV WITH CHEMOIL ENERGYLTD OF SINGAPORE)
Bunkering operations commenced at Mundra Port; planning
bunkering on a pan-India basis
Strategically located in the Gulf of Kutch.
ENERGYADDITIONAL GROWTH DRIVERS O u r b u s i n e s s
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Adani’s agri-commodity portfoliocomprises providing post-harvestpreservation and logisticonfrastructure, agri-processingand agri-trading.Agri-processing business
Manufacturing, storage, transportation and retailing in India
Significant presence in the Indian edible oil industry; operates 11
fully integrated refineries
Agri-logistic businessEstablished modern controlled atmospheric storage facilities,
with a capacity of 18,000 MTPA for fruit and vegetable storage at
three locations in Himachal Pradesh
Entered into a 20-year contract with the Food Corporation of
India for storage of 550,000 MT grains and related logistic
solutions
Agri-trading business
Trading in agro-commodities with a diverse product mix
ADDITIONALBUSINESS DRIVERS
Adani diversified into realtydevelopment as a value-addedproposition for developing socialinfrastructure in its SpecialEconomic Zone.
Developed a fully integrated and self-sufficient township project
‘Samudra’ at Mundra
Developing a premier township project, Shantigram, near
Ahmedabad, Gujarat, covering 41.60 million square feet
Developing a 1.2-million sq ft residential project in Borivali,
Mumbai, and a 0.70-million sq ft residential-cum-commercial
project in Byculla, Mumbai
Plans to develop 1.50 million sq ft of commercial office space in
Mumbai’s Bandra-Kurla complex
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PROJECT EXECUTION RISK MANAGEMENTAdani’s prowess in project management is reflected in the
timely commercialisation of big-ticket infrastructure projects.The most recent showcase of its execution capabilities was in
the record completion of two important projects:
It successfully synchronised India’s first supercritical
technology-based power generating unit (660 MW) at
Mundra in only 36 months – a new sectoral benchmark for
India
It successfully commenced operations at its 60 million
tonnes, fully-mechanised coal-handling terminal at Mundra –
the world’s largest coal receiving terminal – in a record time
of 30 months.
RESOURCE INADEQUACY RISKMANAGEMENTAdani is India’s largest coal importer, accounting for over
50% of coal imports into the country. This decade-long
international trading exposure helped it identify globalresources. It expects to draw in coal from diverse global
sources to feed its own or customer requirements.
Additionally, the MDO business will only strengthen its input
security. Further, each of Adani’s businesses comprises
forward and backward integration facilitating as critical
support infrastructure for other businesses as well. This
strengthens the robustness of all businesses and effectively
counters the risk arising out of a standalone business.
LAND ACQUISITION RISK MANAGEMENTAdani acquired adequate land through a three-step process:
identification of area, direct contact with landowners andcommunity development initiatives that unlock value for
erstwhile landowners. Adani has to its credit one of India’s
largest land acquisitions around Mundra to develop the SEZ.
MANPOWER RISK MANAGEMENTThe complement of Adani’s ‘entrepreneurial model’, flat
management structure and open-door communication
approach helped enhance employee retention. In a single
year (2009-10), Adani added 25% to its workforce
CURRENCY RISK MANAGEMENTAdani’s centralised treasury hedges foreign exchange
fluctuations following the advice of specialists and resident
knowledge experts. Its import-export policy acts as a natural
hedge against forex fluctuations.
FUNDING RISK MANAGEMENTAdani achieved financial closure for its various projects across
all business verticals. Its large consortium of bankers facilitate
in garnering adequate funds for undertaking large-ticket
projects. It mobilised Rs. 10,000 crore in the three years
leading to 2010 through IPOs and QIPs. The highlight of the
fund raising is the strength of the Adani brand in the
financial space clearly reflected in an important reality – its
recent QIP for Rs 25 billion resulted in the mobilisation of
funds totalling Rs. 40 billion.
HOW WE AREMINIMISING RISKS
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FOR A BETTERTOMORROW
Adani Foundation, an arm of Adani, strives to develop the regions in and
around its Group operations. Adani Foundation works across four core areas –
education, community health, sustainable livelihood development and rural
infrastructure development – contributing towards the fulfilment of the
Millennium Development Goals pledged by the United Nations member states.
The Foundation works with a cluster-based approach in 30 villages of Mundra
taluka and six fishermen settlements with people’s participation through the
Cluster Development Advisory Committee (CDAC). The CDAC formed in each
cluster facilitates and guides the activities undertaken in the cluster. The micro
planning and execution is monitored with day-to-day involvement of the
Village Development Committee (VDC) which functions at each village level.