Adani Group

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Adani Group
Public
Industry Conglomerate
Founded 1988; 30 years ago (1988)
Founder Gautam Adani
Headquarters Ahmedabad, Gujarat, India
Area served
Global
Key people
Gautam Adani
(Chairman)
Services Resources, Logistics, Energy & Agribusiness
Revenue Increase US$ 11.357 Billion (FY2017) [1]
Total assets Increase US$ 27.032 billion (FY2017) [2]
Number of employees
11,000+ (FY2017) [1]
Divisions Adani Enterprises Limited, Adani Ports & SEZ Limited, Adani Power, Adani Transmission
Website www.adani.com

Adani Group is an Indian multinational conglomerate headquartered in Ahmedabad, Gujarat, India. It was founded by Gautam Adani in 1988 as a commodity trading business with the flagship company Adani Enterprises Limited (previously Adani Exports Limited). Gautam Adani is the chairman. The Group's diverse businesses include energy, resources, logistics, agribusiness, real estate, financial services, and defence and aerospace.[3]. Annual revenue over $11 billion with operations at 70 locations in 50 countries.[4][5] The Group is India's largest port developer and operator with ten ports and terminals including Mundra Port, its largest.[6] Through a joint venture with Wilmar International in Singapore, the Group co-owns India's largest edible oil brand Fortune.[7]

In April 2014, it added the fourth unit of 660 MW at its Tiroda Thermal Power Station, making Adani Power the largest private power producer of the country. In 2015, Adani was ranked India's most trusted infrastructure brand by The Brand Trust Report 2015.[8] The Group operates mines in India, Indonesia and Australia. It supplies coal to Bangladesh, China, and countries in Southeast Asia apart from India. The Group handled a total cargo of 168 million MT in 2016-17.[1]

The company has made significant contributions to the economy of Bunyu, North Kalimantan, Indonesia by producing 3.9 MMT of coal in 2016-17. The project employs 1600 people with 90% being locals. The Group has made the biggest investment by an Indian company in Australia at the Carmichael coal mine, Galilee Basin, Queensland. The mine is estimated to produce coal at a peak capacity of 60 MMTPA creating over 10,000 direct and indirect jobs. The Group is the first in India to build a High-Voltage Direct Current (HVDC) system.[9] In January, 2018, The Logistics and SEZ arm of the Group Adani Ports & SEZ Limited added equipment and machinery to render it the biggest dredger fleet in India.[10]

History[edit]

The Adani Group commenced as a commodity trading firm in 1988 and diversified into the import and export of multi-basket commodities. With a capital of 5 lacs, the company was established as a partnership firm with the flagship company – Adani Enterprises Limited, previously Adani Exports Limited.[11]

1990: It developed its own port in Mundra to provide a base for its trading operations.

1995: Adani started construction at Mundra. In 1998, it became the top net foreign exchange earner for India Inc. [12]

1999: The company commenced coal trading, followed by a joint venture in edible oil refining in 2000 by forming Adani Willmar.[7]

Second Phase

The group’s second phase started with the creation of large infrastructure assets. The company established a portfolio of ports, powerplants, mines, ships and railway lines within and outside India.

2002: Adani handled 4 million MT of cargo at Mundra, becoming the largest private port in India. Later in 2006, the company became the largest coal importer in India with 11 million MT of coal handling.[12] The company expanded its business in 2008 as they bought Bunyu Mine in Indonesia having 180 million MT of coal reserves.

2009: The firm started 330 MW thermal power generation, followed by 2.2 million MT per annum edible oil refining capacity in India.[12] Adani Enterprises is the largest trading house of India in importing coal with a market share 60%. It also supplies coal to NTPC Limited, India. Adani group became India's largest private coal mining company after Adani Enterprises won the Orissa mine rights.[13]

2011: Operations at the Port of Dahej commenced and subsequently it has a capacity of 20 million MT. The company also bought Galilee Basin mine in Australia with 10.4 billion MT of coal reserves. It also commissioned 60 million MT of handling capacity coal import terminal in Mundra, making it the world’s largest.[14] Further in the same year, the Adani group also bought Abbot Point port in Australia with 50 million MT of handling capacity.[11] It also commissioned India’s largest solar power plant of 40 MW. As the firm achieved 3960 MW capacity, it became the largest private sector thermal power producer in India.

2012: In the next phase, the group embarked on the third phase of development – an integration infrastructure business. It revamped its logo and developed a new identity. The company shifted its focus on three business clusters - resources, logistics and energy. [15]

2014: Adani Power emerged as India’s largest private power producer.[16] Adani Power's total installed capacity now stands at 9,280 MW.[17] Mundra Port, the flagship port of Adani Ports and SEZ Ltd. (APSEZ), has achieved a new landmark of handling 100 million metric tonnes in FY 13-14. On 16 May of the same year, Adani Ports acquired Dhamra Port on East coast of India for Rs 5,500 crore.[18] Dhamra Port was a 50:50 joint venture between Tata Steel and L&T Infrastructure Development Projects, which is now acquired by Adani Ports. The port commenced operations in May 2011 and handled a total cargo of 14.3 million tonnes (MT) in 2013-14.[19] With the acquisition of Dhamra Port, the Group aspires to increase its capacity to over 200 million tonne by 2020.[20][21]

2015: Adani Group’s Adani Renewable Energy Park signed a pact with Rajasthan Government for a 50:50 joint venture to set up India’s largest solar park with a capacity of 10,000 MW.[22] Vizhinjam Port In November, 2015, Adani group started construction at port in Vizhinjim, Kerala.[23]

2016: Adani Aero Defence signed a pact with Elbit-ISTAR and Alpha Design Technologies to work in the field of Unmanned Aircraft Systems (UAS) in India. In April, Adani Enterprises Limited secured approval from the Government of Gujarat to begin work on building a solar power equipment plant.

In September, Adani Green Energy (Tamil Nadu), the renewable wing of the Adani Group, kicked off operations in Kamuthi in Ramanathapuram in Tamil Nadu with a capacity of 648 megawatts (MW) at an estimated cost of Rs. 4,550 crore. In the same month, Adani Group inaugurated 648 MW singe-location solar power plant. It was the world’s largest solar power plant at the time of setting-up [24]

In December, Adani Group inaugurated 100 MW solar power plant in Bhatinda, the largest in Punjab. The plant is set up at a cost of Rs. 640 crore.

2017: On December 22, Adani Group acquired reliance the power arm of Reliance Infrastructure for Rs 18,800 crore.[25]

Listed Companies[edit]

Adani Enterprises Limited

The company started as Adani Exports Limited in 1988 with commodity trading. In March 1993, the partnership company M/s. Adani Exports was converted into a limited company – Adani Enterprises Limited. Originally into exporting dyes and intermediates, plastic products, agricultural products and frozen food to about 28 countries around the world, the company was promoted by Gautam Adani. Adani Management Consultancy Services was amalgamated to the company in 1994.[26] With major interests in logistics and energy, the enterprise handles the mining, trading, gas distribution, solar and agribusiness divisions of the Group. Adani Gas, a wholly owned subsidiary executes the gas distribution business. The real estate activities are managed by Adani Infrastructure & Developers Private Limited.[27][28]

Adani Ports & SEZ Limited

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest private port company and special economic zone in India. The company is headed by Karan Adani as CEO of APSEZ. The operations of the company include Port management, Logistics and Special Economic Zone. The company operates at the following ports:

  • Mundra, Gujarat
  • Dahej, Gujarat
  • Hazira, Gujarat
  • Dharma, Odish
  • Kattupalli, Tamil Nadu
  • Vizhinjam, Kerala

In addition, the Adani Group manages terminals at Mormugao, Ennore, Vishakhapatnam and Kandla (Tuna Takra) ports. [29] The logistics arm was initially promoted by Mundra Port Infrastructure Development Company Limited, an enterprise of the Government of Gujarat and Adani Port Limited. The company began operations in October 1998 at the Mundra Port. The company was granted the rights for 30 years to operate and develop the Mundra Port situated at the Navinal Island in the Kutch region post a Concession Agreement with the Government of Gujarat and the Gujarat Maritime Board in February, 2001.[30]

Adani Power Limited

Established in August 1996 as Adani Power Limited, the company gained a certificate of commencement of business in September of the same year. It is promoted by Gautam Adani, Rajesh S. Adani[31] and Adani Enterprises Limited. The company is the power project development arm of Adani Group with development and maintenance of power projects in India. The firm has a combined installed capacity of 10,440 MW with four thermal power projects across India. The company runs the following 5 subsidiaries:

  • Adani Power Maharashtra Limited
  • Adani Power Rajasthan Limited
  • Adani Power Dahej Limited
  • Mundra Power SEZ Limited
  • Adani Power (Overseas) Limited [32][33]

In 2014, Adani Power overtook Tata Power to become the India’s largest power producer.[34] The third phase of Adani Power Ltd’s (APL) thermal power plant at Mundra in Gujarat is the world’s first coal-fired plant to receive carbon credits from the United Nations’ Framework Convention on Climate Change (UNFCCC) [35] Adani Power’s Udupi Power Plant has been conferred with Power Award by the Government of Karnataka.[36]

Adani Transmission Limited

Integrated in 2013, Adani Transmission Limited handles the commissioning, operations and the maintenance of systems in electric power transmission.[37] The holding company holds, operates and maintains 8511[38] circuit kilometers of transmission lines that range from 400 to 765 kilovolts. The total transmission capacity of the company is 16,200 megavolt amperes.[39] The company has the following subsidiaries:

  • Maru Transmission Service Company Limited
  • Adani Transmission (India) Limited
  • Hadoti Power Transmission Service Limited
  • Raipur-Rajnandgaon-Warora Transmission Limited
  • Sipat Transmission Limited
  • Chhattisgarh-WR Transmission Limited


Adani Group companies according to the business modules:

Resources

  • Adani Enterprises Limited

Logistics

  • Adani Ports
  • Adani Logistics

Energy

  • Adani Enterpises
  • Adani Power
  • Adani Green Energy
  • Adani Transmission
  • Adani Gas
  • Adani Solar
  • AIMSL

Agriculture

  • Adani Wilmar
  • Adani Agri Logistics
  • Adani Agrifresh

Real Estate

  • Adani Realty

Financial Services

  • Adani Capital

Scandal[edit]

In August 2017, Adani Group was accused of diverting millions of funds from company’s books into Adani family tax havens overseas. Adani was accused of using a Dubai shell company to divert the funds, this allegations were made by Indian customs.[40] The details of US$235m were obtained and published by The Guardian.[41] In 2014, the directorate of revenue intelligence mapped out a complex money trail from India through South Korea and Dubai, and eventually to an offshore company in Mauritius allegedly owned by Vinod Shantilal Adani, the older brother of Gautam Adani.[42]

Awards & Recognition[edit]

  • Adani Wilmar Limited received the Great Place to Work Certification for December 2017- November 2018 period under the Large-size Oragnisation category with 1841 employees.
  • Adani Enterrpises Limited received the Great Place to Work Certification for May 2017- April 2018 period under the Small & Mid-size Organisation Category with 246 employees.
  • Adani Gas Limited received the Great Place to Work Certification for February 2017 – January 2018 period under the Small & Mid-size Organisation Category with 234 employees.

APSEZ

  • Adani Ports & SEZ Limited (APSEZ) received ‘India’s Container Port of the Year 2016’ in Mumbai. The port developer and logistics arm of the Group was awarded the same at the 7th edition of the All India Maritime and Logistics Awards (MALA).[43][44]
  • Adani Ports and Special Economic Zone (APSEZ) Limited won the ‘Non-Major Port of the Year 2015’ by the All Time Maritime and Logistics Award (MALA).[45]
  • Adani Ports and Special Economic Zone (APSEZ) Limited won the Emerging Company of the year 2014 at the Economic Time awards.[46]
  • Super Brands 8th Edition - Among the exclusive winners
  • Private Port of the Year by Gateway Awards of Excellence- Ports & Shipping
  • D&B - Axis Bank Infra Award for Port Development
  • IAPH Busan Open Award (Mundra Port), making it one of C-40 Best Green Ports in the World
  • Mundra Port was, recognized by The International Association of Ports and Harbors (IAPH), among 55 top ports of the world, to commit to jointly reduce the threat of global climate change.[47]

Adani Green Energy Limited

  • In January 2018, Adani Green Enegry Limited, a division of Adani Group, entered into the global top 15 list of solar power developers by GTM Research, the market analysis and consulting arm of Greentech Media.[48]

References[edit]

  1. ^ a b c https://www.adani.com/docs/CorporatePresentation
  2. ^ "Balance sheet 2015". 
  3. ^ "After ADAG, Adani enters defence sector, signs up with Israeli firm". Retrieved 25 June 2018. 
  4. ^ https://www.adani.com/businesses
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  6. ^ "APSEZ set to become top container port operator". Retrieved 25 June 2018. 
  7. ^ a b "Adani to bring Wilmar products to India". 23 November 2012. Retrieved 25 June 2018. 
  8. ^ Chandramouli (2015). The Brand Trust Report 2015. TRA. p. 152. ISBN 978-81-920823-8-7. 
  9. ^ https://www.adani.com/docs/CorporatePresentation
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  12. ^ a b c http://www.superbrandsindia.com/images/brand_pdf/business_3rd_edition_2011/ADANI.pdf
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  14. ^ http://thepropertytimes.in/management/press-release/203-adani-group?start=2
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  17. ^ http://articles.economictimes.indiatimes.com/2014-04-04/news/48866632_1_power-generation-capacity-power-sector-adani-power
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  32. ^ "Adani Power: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Adani Power - NDTV". profit.ndtv.com. Retrieved 25 June 2018. 
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  34. ^ Thakkar, Mitul (4 April 2014). "Adani Power becomes India's largest private power producer". Retrieved 25 June 2018 – via The Economic Times. 
  35. ^ "Adanis' coal-fired plant at Mundra to earn Rs 600 cr in carbon credits". Retrieved 25 June 2018. 
  36. ^ "Udupi: Adani UPCL honoured with Power Awards". Retrieved 25 June 2018. 
  37. ^ "Adani Transmission Ltd". Retrieved 25 June 2018 – via Business Standard. 
  38. ^ PTI (1 November 2017). "Adani Transmission buys Reliance Infrastructure WRSSS assets for Rs1,000 crore". Retrieved 25 June 2018. 
  39. ^ Editorial, Reuters. "Company Profile for ${Instrument_CompanyName}". IN. Retrieved 25 June 2018. 
  40. ^ Safi, Michael (2018-02-21). "Adani mining giant facing renewed claims of $600m fraud in India". the Guardian. Retrieved 2018-06-25. 
  41. ^ "Adani document". Scribd. Retrieved 2018-06-25. 
  42. ^ Safi, Michael (2017-08-15). "Adani mining giant faces financial fraud claims as it bids for Australian coal loan". the Guardian. Retrieved 2018-06-25. 
  43. ^ "MALA 2016". mala-awards.com. Retrieved 25 June 2018. 
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  45. ^ http://mala-awards.com/Mala15-winners.aspx
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  47. ^ http://www.adaniports.com/about-us
  48. ^ "Adani arm breaks into global top 15 list of solar power developers". Retrieved 25 June 2018. 

External links[edit]