Adani Group

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Adani Group
Public
ISININE423A01024 Edit this on Wikidata
IndustryConglomerate
Founded20 July 1988; 31 years ago (20 July 1988)
FounderGautam Adani
Headquarters,
India
Area served
Global
Key people
Gautam Adani
(Chairman)
Karan Adani
(CEO,APSEZ)
ServicesResources, Logistics, Energy & Agribusiness
RevenueUS$ 13 Billion[1]
DivisionsAdani Enterprises Limited
Adani Ports & SEZ Limited
Adani Power
Adani Transmission
Websitewww.adani.com

Adani Group is an Indian multinational conglomerate headquartered in Ahmedabad, Gujarat. 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, defence and aerospace.[2] The group has annual revenue of over $13 billion[3] with operations at 70 locations in 50 countries.[4][5] It 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 India's largest private power producer. 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 and supplies coal to Bangladesh, China, and countries in Southeast Asia. The Group handled a total cargo of 200 million MT in 2018-19.[9]

The company has contributed to the economy of Bunyu, North Kalimantan, Indonesia by producing 3.9 MMT of coal in 2016–17. The Group has made the largest investment by an Indian company in Australia at the controversial Carmichael coal mine, Galilee Basin, Queensland. It is estimated to produce coal at a peak capacity of 60 million metric tonnes per annum (MMTPA).[citation needed] The Group is the first in India to build a high-voltage direct current (HVDC) system.[10] In January 2018, the logistics and SEZ arm of the Group, Adani Ports & SEZ Limited, added equipment and machinery to become the largest dredger fleet in India.[11]

History[edit]

First phase[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 lakhs, the company was established as a partnership firm with the flagship company, Adani Enterprises Limited, previously Adani Exports Limited.[12] In 1990 the Adani Group developed its own port in Mundra to provide a base for its trading operations. It began construction at Mundra in 1995. In 1998, it became the top net foreign exchange earner for India Inc.[13] The company began coal trading in 1999 followed by a joint venture in edible oil refining in 2000 with the formation of Adani Willmar.[7]

Second phase[edit]

The group's second phase started with the creation of large infrastructure assets. The company established a portfolio of ports, power plants, mines, ships and railway lines inside and outside India.

Adani handled 4 million Metric Tonnes (MT) of cargo at Mundra in 2002, 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.[13] The company expanded its business in 2008 purchasing Bunyu Mine in Indonesia which has 180 million MT of coal reserves. In 2009 the firm began generating 330 MW of thermal power. It also built edible oil refining capacity in India of 2.2 million MT per annum.[13] Adani Enterprises became the largest trading house in India importing coal with a market share 60%. It also supplies coal to NTPC Limited, India. The Adani group became India's largest private coal mining company after Adani Enterprises won the Orissa mine rights in 2010.[14] Operations at the Port of Dahej commenced in 2011 and ts capacity subsequently grew to 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 for the coal import terminal in Mundra, making it the world's largest.[15][dead link] In addition, in the same year, the Adani group also bought Abbot Point port in Australia with 50 million MT of handling capacity. It commissioned India's largest solar power plant with a capacity 40 MW. As the firm achieved 3960 MW capacity, it became the largest private sector thermal power producer in India. In 2012 The company shifted its focus on three business clusters – resources, logistics and energy. [16]

Adani Power emerged as India's largest private power producer in 2014.[17] Adani Power's total installed capacity then stood at 9,280 MW.[18] The Mundra Port, Adani Ports and SEZ Ltd. (APSEZ), handled 100 million metric tonnes in fiscal 2013–14.[citation needed] On 16 May of the same year, Adani Ports acquired Dhamra Port on East coast of India for Rs 5,500 crore.[19] Dhamra Port was a 50:50 joint venture between Tata Steel and L&T Infrastructure Development Projects, which has now been acquired by Adani Ports. The port began operations in May 2011 and handled a total cargo of 14.3 million MT in 2013–14.[20] With the acquisition of Dhamra Port, the Group is planning to increase its capacity to over 200 million MT by 2020.[21][22]

In 2015 the Adani Group's Adani Renewable Energy Park signed a pact with the Rajasthan Government for a 50:50 joint venture to set up India's largest solar park with a capacity of 10,000 MW.[23] In November 2015, the Adani group began construction at the port in Vizhinjam, Kerala.[24]

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 2016. 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, began operations in Kamuthi in Ramanathapuram, Tamil Nadu with a capacity of 648 megawatts (MW) at an estimated cost of Rs. 4,550 crore. In the same month, the Adani Group inaugurated a 648 MW single-location solar power plant. It was the world's largest solar power plant at the time in was set up [25] In December, the Adani Group inaugurated a 100 MW solar power plant in Bhatinda, the largest in Punjab. The plant was built at a cost of Rs. 640 crore.

On 22 December 2017 the Adani Group acquired reliance the power arm of Reliance Infrastructure for Rs 18,800 crore.[26]

Listed companies[edit]

Adani Enterprises Limited

The company began as Adani Exports Limited in 1988 trading commodities. In March 1993, the partnership company M/s. Adani Exports was converted into a limited company – Adani Enterprises Limited. Run by Gautam Adani the company originally exported dyes and intermediates, plastic products, agricultural products and frozen food to about 28 countries around the world. Adani Management Consultancy Services was amalgamated with the company in 1994.[27] 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. Its real estate activities are managed by Adani Infrastructure & Developers Private Limited.[28][29] The Adani Enterprises-Mining is the only mining company in the list of top 50 organisations that has bagged the India’s Great Place to Work certification two years in a row.[30]

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, CEO of APSEZ. The company's operations include Port management, logistics and the special economic zone. The company operates at the following ports: Mundra, Dahej, and Hazira, Gujarat; Dhamra, Odisha; Kattupalli, Tamil Nadu; and Vizhinjam, Kerala.

In addition, the Adani Group manages terminals at the ports of Mormugao, Ennore, Vishakhapatnam and Kandla (Tuna Takra). [31] The logistics arm was initially promoted by the Mundra Port Infrastructure Development Company Limited, an enterprise of the Government of Gujarat and Adani Port Limited. The company began operations at the Mundra Port in October 1998. With a Concession Agreement with the Government of Gujarat and the Gujarat Maritime Board in February 2001I, the group was granted the right to operate and develop the Mundra Port situated at the Navinal Island in the Kutch region for 30 years.[32]

Adani Power Limited

Established in August 1996 as Adani Power Limited, the company gained a certificate of commence business in September of the same year. The company is run by Gautam Adani, Rajesh S. Adani[33] and Adani Enterprises Limited. The company develops and maintains 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 subsidiaries: Adani Power Maharashtra Limited, Adani Power Rajasthan Limited, Adani Power Dahej Limited, Mundra Power SEZ Limited and Adani Power (Overseas) Limited [34][35] In 2014, Adani Power overtook Tata Power to become India's largest power producer.[36] 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) [37] Adani Power's Udupi Power Plant has been conferred with the Power Award by the Government of Karnataka.[38]

Adani Transmission Limited

Integrated in 2013, Adani Transmission Limited handles the commissioning, operations and maintenance of electric power transmission systems.[39] The holding company holds, operates and maintains 8511[40] circuit kilometers of transmission lines that range from 400 to 765 kilovolts. The total transmission capacity of the company is 16,200 megavolt amperes.[41] The company has the following subsidiaries: Maharashtra Eastern Grid Power Transmission Company Limited, Maru Transmission Service Company Limited, Adani Transmission (India) Limited, Hadoti Power Transmission Service Limited, Raipur-Rajnandgaon-Warora Transmission Limited, Sipat Transmission Limited, and Chhattisgarh-WR Transmission Limited.

Philanthropy[edit]

  • Education

The Foundation has established free of cost schools named the Adani Vidya Mandir for underprivileged children in Ahmedabad and Bhadreshwar, Gujarat and Surguja in Chhattisgarh. The Adani Public School, Adani DAV Public School, Adani Vidyalayas and Navchetan Vidyalaya provide subsidised education to 2400 students. The Foundation also supports 300 government schools that educate more than 100,000 children. The Foundation operates in 13 Indian states.[42]

  • Community health

The Gujarat Adani Institute of Medical Sciences runs the GK General Hospital with 750 beds in Bhuj which offers complimentary treatment to the underprivileged. 15 mobile healthcare units are commissioned by the Foundation that provide healthcare services to 25,000 villagers at their doorstep. Moreover, the rural clinics attend to around 6000 patients each month.[43]

  • Rural infrastructure management

The Foundation has increased the water storage capacity to 688,969 cubic metres by constructing 21 check dams and 223 ponds. It constructed 361 Aavas for below poverty line families and 365 housing shelters along with 335 portable water facilities for villagers.[43]

  • Sustainable livelihood development

The Foundation introduced the System of Rice Intensification (SRI) technique to 2,700 farmers who practice agriculture across 4,400 acres of land. Consequently, production increased by half and costs went down by 35%. Numerous fishermen have been allotted equipment like nets and anchors. Moreover, around 600 farmers are supported by drip irrigation.[44][43]

  • Sports

The Adani Group has multiple initiatives in sports.

Launched in 2016 to prepare athletes for Rio Olympics, Garv Hai is a nationwide programme to promote sports and support athletes in India. It has been re-launched for a second time to groom athletes for 2020 Tokyo Olympics, 2022 Asian Games and Commonwealth Games. The programme focuses on archery, shooting, athletics, boxing, and wrestling. Beneficiaries of the Garv Hai pilot project in 2016 include Ankita Raina (tennis), Pinki Raina (boxing), Shiva Thapa (boxing), Khushbir Kaur (athletics), Inderjeet Singh (athletics), Mandeep Jangra (boxing), Malaika Goel (shooting), and Sanjeevani Jadhav (athletics).[45][46][47]

Another initiative is the Surguja Football Academy in Chhattisgarh. Till date, 11 players from Surguja were selected to play for national Indian football team.[48]

Scandal[edit]

On 27 February 2010, Central Bureau of Investigation arrested Rajesh Adani, Managing Director of Adani Enterprises Ltd on charges of custom duty evasion to the tune of Rs. 80 lakh.[49]

In August 2017, Indian customs alleged the Adani Group was diverting millions of funds from the company's books to Adani family tax havens overseas. Adani was accused of using a Dubai shell company to divert the funds.[50] The details of US$235m diversion were obtained and published by The Guardian.[51] 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.[52]

Controversy over mining projects in Australia[edit]

Carmichael Coal Mine Project[edit]

The Adani Group launched in 2014, with the support of a part of the Australian Government and Queensland, a mining and rail project (Carmichael coal mine) in Carmichael in Queensland’s Galilee Basin for 21.5 billion euros[53] (over the life of the project, i.e. 60 years [53]).

This controversial mine [54], if implemented, would be the largest coalmine in Australia and the world.

Its annual capacity will be 60 million tonnes of coal corresponding to the emission of 127 million tonnes of CO2, the equivalent of the total emissions of Belgium. This project will occupy an area of 35000 hectares and will consume 297 million m3 of water taken from the aquifers of the region, which will have consequences for the environment and the local population. In view of the suggested environmental consequences of this project, most international banks refused to finance it [55], taking into account risks of flooding and/or induced earthquakes that may occur when working at such scale. [56]

In 2018 several international banks declined approaches to finance the project, and the conclusions of the environmental report for the authorization of the project are postponed until 2019, following promises of local job creation by the Adani group [57].

Great Barrier Reef Project[edit]

In 2014, the Adani group also launched a project to dig a channel through the Great Barrier Reef of Australia to facilitate the export of coal with dredging of 38 million m3 reef sand [58]. This controversial project with dubious financing has aroused international opposition[56].

Awards and recognition[edit]

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).[59][60]
  • 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).[61]
  • Adani Ports and Special Economic Zone (APSEZ) Limited won the Emerging Company of the year 2014 at the Economic Time awards.[62]
  • 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.[63]

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.[64]

AEL-Mining

  • The Adani Enterprises-Mining bagged the "India’s Great Place to Work 2019" certification on 19 July in Mumbai. The Great Place to Work Institute awarded the certification to the company in the category of the Mid-size Organisations.[65]

References[edit]

  1. ^ "Empowering India, Shaping a new future" (PDF).
  2. ^ "After ADAG, Adani enters defence sector, signs up with Israeli firm". Retrieved 25 June 2018.
  3. ^ "Empowering India, Shaping a new future" (PDF).
  4. ^ "Adani Group likely to operate 6 airports by July'19".
  5. ^ "Gautam Adani – "The Gujrati Billionaire" – Made In India". 1 June 2013. Archived from the original on 1 June 2013. Retrieved 25 June 2018.
  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. ^ "APSEZ handles 200 mt of cargo in FY 19".
  10. ^ "Adanis dedicates to nation 1,000-km power transmission system".
  11. ^ "Adani Ports dredging fleet emerges as India's largest: APSEZ". 25 June 2018. Retrieved 25 June 2018 – via The Economic Times.
  12. ^ "Gautam Adani Biography- About family, children, education, wife, age, and more". business.mapsofindia.com. Retrieved 25 June 2018.
  13. ^ a b c "Adandi: Business of Success" (PDF). superbrandsindia.com. Retrieved 16 December 2018.
  14. ^ "Adani bags rights to develop Orissa coal block". economictimes.indiatimes.com. 27 October 2010. Archived from the original on 15 October 2012. Retrieved 16 December 2018.
  15. ^ http://thepropertytimes.in/management/press-release/203-adani-group?start=2
  16. ^ "Adani Group to have new identity, logo". Retrieved 25 June 2018.
  17. ^ Gadgil, Makarand (3 April 2014). "Adani Power commissions 4th unit of Tiroda power plant in Gujarat". Retrieved 25 June 2018.
  18. ^ "Adani Power becomes India's largest private power producer". articles.economictimes.indiatimes.com. 4 April 2014. Archived from the original on 7 April 2014. Retrieved 16 December 2018.
  19. ^ Mandavia, Megha; Barman, Arijit (17 May 2014). "Adani Ports acquires Dhamra Port on east coast of India for Rs 5,500 crore". Retrieved 25 June 2018 – via The Economic Times.
  20. ^ Reporter, B. S. (17 May 2014). "Adani acquires Dhamra Port for Rs 5,500 crore". Retrieved 25 June 2018 – via Business Standard.
  21. ^ "Adani Ports acquires Dhamra Port for Rs.5,500 cr". 16 May 2014. Retrieved 25 June 2018 – via www.thehindu.com.
  22. ^ "Adani Ports buys Dhamra Port from Tata Steel, L&T for Rs 5,500 crore". www.businesstoday.in. Retrieved 25 June 2018.
  23. ^ "Adani to set up country's largest solar park of 10,000 MW in Rajasthan". 16 June 2015. Retrieved 25 June 2018.
  24. ^ "Adani in Pact with Kerala for Vizhinjam Port". 18 August 2015. Retrieved 25 June 2018.
  25. ^ Scott, D. j Walter; Scott, D. j Walter (22 September 2016). "Adani's 648-MW solar plant inaugurated". Retrieved 25 June 2018 – via www.thehindu.com.
  26. ^ Patra, Shakti (21 December 2017). "Reliance Infrastructure sells Mumbai power business to Adani Transmission for Rs18,800 crore". Retrieved 25 June 2018.
  27. ^ "Adani Enterprises History – Adani Enterprises Information – The Economic Times". economictimes.indiatimes.com. Retrieved 25 June 2018.
  28. ^ "Adani Enterprises Ltd". Retrieved 25 June 2018 – via Business Standard.
  29. ^ "Adani Enterprises: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Adani Enterprises – NDTV". www.ndtv.com. Retrieved 25 June 2018.
  30. ^ "Adani Enterprises-Mining recognized amongst Top 50 Great Mid-size Workplaces in India".
  31. ^ "Adani Ports & Special Economic Zone Ltd". Retrieved 25 June 2018 – via Business Standard.
  32. ^ "Adani Ports & Special Economic Zone History – Adani Ports & Special Economic Zone Information – The Economic Times". economictimes.indiatimes.com. Retrieved 25 June 2018.
  33. ^ "Rajesh Adani: The Journey from Ahmedabad to Adani Group". Pressroom Today. Archived from the original on 4 May 2018. Retrieved 20 April 2018.
  34. ^ "Adani Power: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Adani Power – NDTV". profit.ndtv.com. Retrieved 25 June 2018.
  35. ^ "Adani Power History – Adani Power Information – The Economic Times". Retrieved 25 June 2018.
  36. ^ Thakkar, Mitul (4 April 2014). "Adani Power becomes India's largest private power producer". Retrieved 25 June 2018 – via The Economic Times.
  37. ^ "Adanis' coal-fired plant at Mundra to earn Rs 600 cr in carbon credits". Retrieved 25 June 2018.
  38. ^ "Udupi: Adani UPCL honoured with Power Awards". daijiworld.com. Retrieved 25 June 2018.
  39. ^ "Adani Transmission Ltd". Retrieved 25 June 2018 – via Business Standard.
  40. ^ PTI (1 November 2017). "Adani Transmission buys Reliance Infrastructure WRSSS assets for Rs1,000 crore". Mint. Retrieved 25 June 2018.
  41. ^ Editorial, Reuters. "Company Profile for ${Instrument_CompanyName}". IN. Retrieved 25 June 2018.
  42. ^ "Adani Foundation Udaan project". ANI. 15 January 2018.
  43. ^ a b c "Adani Foundation's 'Udaan'project benefiting Indian students". ANI. 15 January 2018.
  44. ^ "Adani Foundation". Adani. 7 December 2017.
  45. ^ "Adani Group announces training aid for hidden sports talents".
  46. ^ "Adani Group announces training aid for hidden sports talents".
  47. ^ "These initiatives to improve grassroots sports in India will make you feel proud".
  48. ^ "These initiatives to improve grassroots sports in India will make you feel proud".
  49. ^ "Adani Enterprises MD arrested for custom duty evasion – Times of India ►". The Times of India. Retrieved 7 April 2019.
  50. ^ Safi, Michael (21 February 2018). "Adani mining giant facing renewed claims of $600m fraud in India". the Guardian. Retrieved 25 June 2018.
  51. ^ "Adani document". Scribd. Retrieved 25 June 2018.
  52. ^ Safi, Michael (15 August 2017). "Adani mining giant faces financial fraud claims as it bids for Australian coal loan". The Guardian. Retrieved 25 June 2018.
  53. ^ a b ADANI, "Description of the mine project" by the Adani, PDF, 110 pages (version projecting a 90-year exploitation)
  54. ^ Australia approves controversial Carmichael coal mine, 15 October 2015
  55. ^ Carmichael mine – environmental impact will be unknown for years. The Guardian, November 17, 2014
  56. ^ a b Carmichael project: Visiting Australia's controversial Adani mine. BBC, 29 November 2018
  57. ^ Carmichael Coal Mine and Rail Project. The State of Queensland (Department of State Development, Manufacturing, Infrastructure and Planning, 2018
  58. ^ En Australie, la Grande Barrière de corail accueillera des déchets. Le Monde, 3 February 2014
  59. ^ "MALA 2016". mala-awards.com. Retrieved 25 June 2018.
  60. ^ "Adani Ports wins "India's Container Port of the year" award". 8 October 2016. Retrieved 25 June 2018.
  61. ^ http://mala-awards.com/Mala15-winners.aspx
  62. ^ "ET Awards 2014: Meet the winners". The Economic Times. Retrieved 25 June 2018.
  63. ^ http://www.adaniports.com/about-us
  64. ^ "Adani arm breaks into global top 15 list of solar power developers". Retrieved 25 June 2018.
  65. ^ "Adani Enterprises-Mining recognized amongst Top 50 Great Mid-size Workplaces in India".

External links[edit]