Adani Group

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Adani Group
Public
IndustryConglomerate
Founded20 July 1988; 30 years ago (20 July 1988)
FounderGautam Adani
Headquarters,
India
Area served
Global
Key people
Gautam Adani
(Chairman)
ServicesResources, Logistics, Energy & Agribusiness
RevenueIncrease US$ 11.357 Billion (FY2017) [1]
Total assetsIncrease US$ 27.032 billion (FY2017) [2]
Number of employees
11,000+ (FY2017) [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, 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] The group has annual revenue of 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 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 168 million MT in 2016-17.[1]

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.[1] 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.[9]

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.[10] 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.[11] 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.[11] 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.[11] 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.[12] 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.[13][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. [14]

Adani Power emerged as India's largest private power producer in 2014.[15] Adani Power's total installed capacity then stood at 9,280 MW.[16] 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.[17] 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.[18] With the acquisition of Dhamra Port, the Group is planning to increase its capacity to over 200 million MT by 2020.[19][20]

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.[21] In November, 2015, the Adani group began construction at the port in Vizhinjam, Kerala.[22]

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 [23] 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.[24]

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.[25] 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.[26][27]

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). [28] 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.[29]

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[30] 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 [31][32] In 2014, Adani Power overtook Tata Power to become India's largest power producer.[33] 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) [34] Adani Power's Udupi Power Plant has been conferred with the Power Award by the Government of Karnataka.[35]

Adani Transmission Limited

Integrated in 2013, Adani Transmission Limited handles the commissioning, operations and maintenance of electric power transmission systems.[36] The holding company holds, operates and maintains 8511[37] circuit kilometers of transmission lines that range from 400 to 765 kilovolts. The total transmission capacity of the company is 16,200 megavolt amperes.[38] 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, 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.[39]

  • 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.[40]

  • 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.[40]

  • 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.[41][40]

Scandal[edit]

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.[42] The details of US$235m diversion were obtained and published by The Guardian.[43] 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.[44]

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).[45][46]
  • 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).[47]
  • Adani Ports and Special Economic Zone (APSEZ) Limited won the Emerging Company of the year 2014 at the Economic Time awards.[48]
  • 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.[49]

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.[50]

References[edit]

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External links[edit]