CASE STUDY ON ADANI GROUP

INTRODUCTION
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. Annual
revenue over $11 billion with operations at 70 locations in 50 countries.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 controversial Carmichael coal mine, Galilee Basin, Queensland.
The mine is estimated to produce coal at a peak capacity of 60 MMTPA creating over 1,500
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
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]
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. 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: 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 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 single-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
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
Dhamra, Odisha
Kattupalli, Tamil Nadu
Vizhinjam, Kerala