INTRODUCTION Type : Public Traded as : BSE: 512599, NSE: ADANIENT Industry : Conglomerate Founded : 1988 Founder(s) : Gautam Adani Headquarters : Ahmedabad, Gujarat, India Area served : India Products : Petroleum, natural gas Services : Logistics, real estate, port services Revenue : 26,941 crore (US$5.37 billion)(2011) Profit : 2,492 crore (US$497.15 million)(2011) Total assets : 52,291 crore (US$10.43 billion)(2011) Employees : 8,500 (2011) Subsidiaries : Adani Gas Limited
Contd… Operator of the largest private port in India Developer of the largest multiproduct SEZ in India Owns the largest edible oil refining capacity in India One of the largest trading houses in India Largest Integrated Coal Management Firm in India Promoter of India’s first supercritical technology based power plant Operator of the world’s largest automated import Coal Terminal having 60 MnT capacity
VALUES Since inception, three values have driven all the activities of the Adani Group. These values are central to Adani’s operations worldwide and will continue to be at the core of all our businesses. Trust - We will deliver on all our promises - our word is our bond. Courage – We will support our decisions and actions with conviction. Innovation - We will think laterally and never fight shy of embracing big ideas.
Mundra Port, India’s largest private port, provides cargo handling and other value-added port services. The port offers a number of locational and logistical advantages. Largest, Notified and Functional Port based multi-product SEZ in India. Strategically positioned Port based location with effective access to major international sea ports. An Integrated Self sustained SEZ for setting up an Industrial Hub along with Social infrastructure needs.
Integrated Infrastructure and Utilities. Well developed commercial & social infrastructure for Living, Learning, Healthcare and Recreation Mundra Port is strategically located for global trade (Latitude: 22º 43’ 88’ N; Longitude: 69º 42’ 34’ E). Located on the northern coast of the Gulf of Kutch on the west coast of India, Mundra Port provides a convenient international trade gateway to Europe, Africa, America and the Middle East. Mundra has a deep draft (12.5 Meters – 17 Meters) which enables large vessels like panamax and super post panamax carriers to dock alongside its berth. Mundra Port is situated in Gujarat, one of India’s most industrialized, investor friendly and commercially successful states.
External Environment Definition: Conditions, entities, events, and factors surrounding an organization that influence its activities and choices, and determine its opportunities and risks.
The Firm’s External EnvironmentComprised of following Components: Remote environment Industry environment Operating environment
Remote environment Economic Factors Social Factors Political Factors Technological Factors Ecological Factors
Economic Factors Years of initially fast GDP growth was attributed to factors like sustainable income , increased demand for fmcg products and growth of retail sector along with that foreign direct investment, decrease on import duties increase demand of Indian goods in foreign markets. Changes in the interest rate affects its business. Inflation changes also affect its business. Employment is generated in the organization.
Social Factors Mundra SEZ is a self sustained SEZ. Along with the state of art developments of industrial infrastructure and facilities, Lifestyle has a new definition at Mundra SEZ Quality life with amenities like shopping mall, community centre, library, swimming pool, sports arena, resorts, golf course, eateries, hotels, hospitals and health care etc. Walk to Work Culture
Political Factors Fiscal advantages.:- Direct Tax Benefits – Income Tax 100% exemption for the first 5 years 50% exemption for the sixth to tenth (next 5) years 50% exemption on the ploughed back profits, for an additional 5 years, after ten years Indirect Tax Benefits - Perennial exemption in all taxes including Excise Duty Custom Duty Service Tax Value Added Tax (VAT) Stamp Duty / Lease Tax Entry Tax and various other State levies that would otherwise be applicable on operations
Technological FactorsSpecific areas in which R & D carried out by the company andbenefits arrived out of it.The year 2009-10 being the first year of the operation, followingexercises are being taken up to improve the performance of the plant(i) Pre-drying of high moisture Coal. (ii) Cathodic protection for water Box of Condenser.(iii) Reduction of Drift in Cooling Towers.(iv) Efficient operation of equipments in switchyards in the prevalentCostal conditions.(v) Sea water based Electro Chlorination Plant has been installed andcommissioned to generatehypo chloride solution for plant uses.f) Future plan of action.The abovementioned R&D activities are planned to be continued for
Contd…g) Technology absorption, Adaptation and Innovation. The technology absorbed/adapted FGD system based on Sea Water has been planned for Mundra Phase – IV to reduce SOx emission. Benefits derived as a result of the above efforts. Since this is the first year of operations, no effect on the cost of production can be identified.
Ecological Factors The Company attaches great importance to a healthy and safe working environment. The Company is committed to provide good physical working conditions and encourages high standards of hygiene and housekeeping. The Company is furthermore committed to comply with the rules and regulations applicable for protection of the environment in which it operates. Particular attention should be made to preserve the natural resources and minimize the impact of its business operations on environment
Industry analysis The growth rate of industry had been 20-25% above. Many companies in this industry diversify geographically by going in joint venture with foreign companies. Risks associated with industry is mainly change in government laws and regulations. Diversification helps in finding strategic investment and for substituting different suppliers
Entry Barriers High investment Natural Resources Govt. policy Brand Identity Maximum utilization of resources
Substitute AvailabilityThe different ports controlled by Adani group are :- Adani Mundra Port Adani Hazira Port Adani Murmugoa Coal Terminal Adani Vizag Coal Terminal Pvt. Ltd. Adani Abbot Point Terminal Pvt. Ltd.
Competitive Rivalry Growth of industry Unique brand identity Switching is not possible because of heavy investment The competitors are diversified in the form of other modes of transport.
Operating EnvironmentAlso called competitive or task environment. Includes following factors :- Competitors. Creditors. Customers. Labor. Supplier. Also includes suppliers & creditors and HRM.
Contd…. Competitors :- Market Share.(Inc By 0.08%) Location and age.(Est 1988) Experience. Financial Position. Advertising and promotion Effectiveness. Large employment opportunity.
Creditor’s & Customers :- They are fully committed to their Creditor’s and Customers . Company believe respectable profits will ensure allocation of resources for developing, assimilating and managing expertise.
Supplier’s :- Supplier’s provide attractive quantity discount and quick delivery. They provide minimum shipping charges. Suppliers are even dependent on the firm.
Labor:- Labor market usually dependent on four factors : Reputation. Availability of People. Labour Unions.