INDIVIDUAL ASSIGNMENT

The conglomerate chosen for analysis for this assignment is Adani Group.
Introduction:

The Adani Group is an integrated business conglomerate in India which consists of 6

publicly traded companies with a combined revenue of $13 billion.

Founded in 1988, Adani has grown to become a global infrastructure player with
businesses in key verticals – resources, energy, logistics and agriculture.

Adani has a presence in Australia, Bangladesh, China, Dubai, Indonesia, Myanmar,

Singapore and the United States.

Its mission is to enrich lives and contribute by building infrastructure through sustainable
value creation.
Business Divisions:
Adani Enterprises Limited:

The company originally exported dyes and intermediates, plastic products, agricultural
products and frozen food to about 28 countries globally.

It has major interests in logistics and energy and handles the mining, trading, gas
distribution, solar and agribusiness divisions of the group.

Adani Enterprises – Mining is the only mining company that has been awarded India’s
great place to work certification 2 years in a row.

Adani Ports and SEZ Limited:

This is the largest private port company and special economic zone in India. The
company’s operations include port management, logistics and special economic zone.

It provides dredging and reclamation solutions, primarily for port and harbour
construction. It started in developing a dredging fleet in 2005. Currently it operates 19
dredgers which is the largest in India.

APSEZ has undertaken mangrove afforestation with a survival rate of 85%. In 2016, the
company announced that all ports and townships are being prepared to run on 100%
renewable energy – a mix of solar and wind.

According to a Morgan Stanley analysis, APSEZ is expected to be in the top quartile

across various operating metrics.

Adani Power Limited:

This company develops and maintains power projects in India. It is India’s largest private
thermal power producer, with capacity of 12,410 MW. It is India’s first company to
achieve the supercritical technology.
It also operates a mega solar plant of 40 MW at Naliya, Bitta, Kutch, Gujarat.

The plant is the only thermal power plant in India to be certified by United Nations
Framework Convention on Climate Change (UNFCC) under clean development
mechanism.

Adani Transmission Limited:

This company handles the commissioning, operations and maintenance of electric power
transmission systems.

The holding company, operates and maintains 8511 circuit kilometres of transmission lines
that range from 400 to 765 kilowatts. The total transmission capacity of the company is
16,200 megavolt amperes.

It aims at addressing the vast potential in India’s transmission sector and has set an
ambitious target to set up 20,000 circuit km of transmission lines by 2022.

Adani Group vision and mission statement:

Vision:

To accomplish a passionate commitment to social obligations towards communities,

fostering sustainable and integrated development, thus improving quality of life.
Mission:

To play the role of a facilitator for the benefit of the people without distinction of caste or
community, sector, religion, class or creed, in the fields of education, community health,
and promotion of social and economic welfare and upliftment of the people in general.

Any recommendations on mergers/acquisitions would be in tune with the vision and the
mission statement.

Discard:

From the annual report of 2019 all the subsidiaries of Adani Group have generated
positive after-tax income. It is a market leader in all its business divisions and hence it does
not make any sense to discard any division as its mission is to promote economic welfare.

Mergers and Acquisitions:

Adani enterprises limited is a big company and handles various departments of the group
and is a market leader in its segment. It does not make sense to merge or acquire any
other company as it will not lead to any additional synergy to the firm.
Being a market leader, its market share is very huge and acquiring another company may
lead to a monopoly and the company might face regulatory issues from the government.
Adani Ports and SEZ limited does not need to merge with or acquire any other company
as it is the largest private port company and special economic zone in India. According
to a Morgan Stanley report it is in the 1st quartile and is performing well. It should focus on
its strengths and not worry about the competition.

Adani power limited has overtaken Tata as the leading thermal power producer in India
and therefore should focus on itself and keep performing the way it has and should not
be worried about other players in the market.

Adani Transmission limited has recently acquired Reliance Infrastructure’s power business
and has moved into large scale power distribution. This will help Adani group position itself
as a fully integrated power utility. This also helps the firm enter the large-scale electricity
distribution sector which is the most vital function in the power supply chain. This is a win-
win situation as this will be a big boost to many banks who were seeking to clean up
stressed power loans in line with new RBI policy.