adani power presentation of MBA

1. Thinking big Doing better

2. Presented By….
Ashay Kothawale
Diptee Karatkar
Kavita D’souza
Neel Kumar
Prashob Menon
Rakesh Mishra
Roshan Joshi
Thinking Big, Doing Better

3.  Adani Enterprises is Indian conglomerate based in
Ahmedabad, Gujarat, India
 It was founded by Mr. Gautam Adani, in the year
Thinking Big, Doing Better
1988.
 The core businesses of the group is Power, Global
Trading, Logistics, Energy, Port & SEZ and Mining.
 Apart from the core businesses, the Group has
expanded into Oil & Gas, Agri Business, FMCG
products and Real Estate Development.

4. Vision Values Culture
Courage: We shall
embrace new ideas
and businesses
Trust:We shall believe
in our employees and
other stakeholders
Commitment : We shall
stand by our promises
and adhere to high
standards of business
Thinking Big, Doing Better
P - Passion
R - Results
I - Integration
D - Dedication
E - Entrepreneurship
To be the admired
leader in integrated
infrastructure
businesses with a
deep commitment to
nation building.
To be known for the
scale of our ambition,
speed of execution
and quality of our
operation

5. End-to-End integrated solution which will contribute to accelerate the economic
growth of India
Resources:
Owning and importing
coal from mines
(including trading in
coal), oil and gas
product ion.
Logistics:
A large network of ports,
Special Economic Zone
(SEZ) and mult i- model
logistics – railways
Thinking Big, Doing Better
Energy:
Power generation &
t ransmission and gas
dist ribution.

6. MINING PORT POWER
Largest international
coal linkage in India
with over 33% of
market share in
India
Largest port in India
with a growth rate of
4 times faster than
the Industry average
Thinking Big, Doing Better
One of the largest
world's largest single
location thermal
power plant

7. Thinking Big, Doing Better

8. • Your company was originally incorporated in 22 August 1996and
started of as a Power trading company.
• After rising 3016 cores through IPO in August 2009, it started
generation in July 2009 by implementation of its first 330MW of
4620 MW at Mundra.
• Mundra power plant being a super mega project is the largest
coal based power project of India and fifth largest in the world.
• Earlier this year your company emerged as the largest private
power producer in India with an overall installed capacity of 8,620
MW after commissioning of the fourth unit of 660 megawatts
(MW) at its power plant at Tiroda in Maharashtra.
Thinking Big, Doing Better

9. • Though your company is mostly in Thermal power generation, we
are in advanced stage of implementation of 100MW of solar
power station at Surendranagar in Gujarat out of which 40MW is
already commissioned.
• Recently, your company has acquired Lanco Infratech's Udipi
thermal power plant for Rs 6000 crore deal. This would add
another 1200MW installed capacity to the existing capacity .
Thinking Big, Doing Better

10. Gautam Adani
Chairman -Adani Group
Rajesh Adani
Managing Director
Thinking Big, Doing Better
Vneet S Jaain
Executive
Director & CEO

11. National Award for “Meritorious Performance in Power Sector” in
recognition of outstanding performance during 2011-12 for early completion
of the 5th unit of Mundra Thermal Power Plant by Ministry of Power,
Government of India
The National Energy Conservation Award 2012 in Thermal Power
Station Sector” by Ministry of Power (Bureau of Energy Efficiency)
“Quality Excellence Award for Fastest Product Development” by
National Quality Excellence Award, 2012
Thinking Big, Doing Better

12. “Quality Excellence Award for Fastest Growing Company” by National
Quality Excellence Award, 2012
“Infrastructure Excellence Award 2011” by CNBC TV18 &Essar Steel
Award for “Spearheading the Infra Power sector”
“National Energy Conservation Award 2011: First Prize in Thermal
Power Station Sector” by Ministry of Power (Bureau of Energy Efficiency)
"The Most Admired Developer in Power Sector“: Two consecutive
years (2010 & 2011) by KPMG & Infrastructure Today
Clean Development Certification from the United Nations Framework
Convention on Climate Change (UNFCCC) for being the first power
company in India to use ‘supercritical’ technology to reduce CO2
emissions
Thinking Big, Doing Better

13. Thinking Big, Doing Better
One of world’s largest
single locat ion thermal
power plant at Mundra
Largest Single
Locat ion
Solar plant at Bitta
2640
1320
Bhadreshwar
3300
Kawai
Dahej
Chhindware
4620
40
(All f igures in MW)
1320
1320 1980
Commissioned
Tiroda
Transmission
Lines
Transmission Adani Power Transmission
plant
Under
Implementat ion
Point Line
Length
(Km)
Mundra - Dehgam
1000 MW, 400 KV
433
Tiroda - Warora
2000 MW, 400 KV
200
Mundra -
Mohindergarh
2500 MW, 500 KV
HVDC
1,000
Tiroda -
Aurangabad
4500 MW, 765 KV
1,290
Total 2,923

14. During the year, your Company (along
with subsidiaries) emerged has largest
private power producer with
installed capacity of 8580 MW.
Your Company has also set a record in
power generation by achieving full load
of 4620 MW at Mundra power plant.
Recently, your company has acquired
Lanco Infratech's 1200 MW Udipi
thermal power plant. After completion of
the acquisition your company would
have an installed capacity of 10480MW
Thinking Big, Doing Better
8580
5940
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
FY13-14 FY12-13
INSTALLED CAPACITY ( MW)

15. • The consolidated total revenue of
your Company for FY 2013-14
stood at ₹ 15,954.40 Crores as
against ₹ 6,970.01 Crores for FY
2012-13 showing an increase of
129%.
• The consolidated Net Loss for
the year has reduced from (₹
2,295.01) Crores in FY 2012-13
to (₹ 290.55) Crores in FY 2013-
14.
15500
13500
11500
Thinking Big, Doing Better
15768.08
6779.39
4129
1332
-290.55 -2295.01
9500
7500
5500
3500
1500
-500
-2500
FY13-14 FY12-13 FY13-14 FY12-13 FY13-14 FY12-13
Revenue EBIDTA PAT
in Crores

16. 250000000
200000000
150000000
100000000
50000000
Thinking Big, Doing Better
70
60
50
40
30
20
10
0
0
Total Turnover High (Inr) Low (Inr)
• During the year the
company share did the low
of ₹ 31.60 and high of ₹
62.45.
• During the year, the
Company made preferential
issue of 47,86,50,000 equity
shares to the Promoter group
at a premium of ₹ 43.11/- per
share.

17. STRENGTHS
We t ransport coal from our mine pits via our rails & ships – from and to our
ports – to our power plants – to generate power –which reaches our
customer ’s plug point through our t ransmission lines
Mines Port Railways Power Plant Transmission
Assured Revenue
Thinking big Doing better
Power
Trading
Long Term Power Purchase
Agreements(PPA)
In-house
Consumpt ion
1 2 3

18. STRENGTHS
• The diversified nature of the group helps in the growth of Adani Power
• Since the largest supplier of coal is Adani Enterprises, this reduces the
cost of coal to Adani Power
• Efficient workforce of apx. 2000 employees.
• Operating Profit to sales ratio for Adani Power is higher than National
average, indicating higher operational effiency.
Thinking Big, Doing Better

19. STRENGTHS
• Adani Power Plant is located very close to coal jetty which lowers the
transportation cost of the raw material.
• Close proximity to the sea ensures water for steam generation and
Thinking Big, Doing Better
cooling.
• The integrated supply-chain model of the group, provides much required
leverage and cost effectiveness to the company
• Excellent execution track record and good relations with the existing state
bureaucracy.

20. WEAKNESSES
• We are present only in very few states namely Gujarat,
Maharashtra, Haryana and Karnataka.
• Our power plants use Chinese Equipment.
• Non-payment of dues by the state distribution arm, leads to delay
in receipt of money impacting cash flow.
• Litigation with state distribution arm over PPA and Tariffs.
Thinking big Doing better

21. India’s Installed Thermal
Capacity (in GW)
315
275
Thinking big Doing better
208
2020
2017
2012
India - Energy Mix (2012)
------------ Total Energy Need -----------
67% 19% 12% 2%
Renewable – Solar,Wind
India currently faces a deficit of 7556 MW
32
Thermal
Renewable – Hydro
Nuclear
OPPORTUNITIES

22. OPPORTUNITIES
• India has substantial non-conventional energy resource base and
technologies to meet growing power requirements by tapping this
energy.
• 100% FDI in all sectors allowed
• Opportunity to sell generation to Trading company
• 50,000 MW Hydro initiative launched
• Ultra Mega Power Project .
Thinking Big, Doing Better

23. OPPORTUNITIES
• Hydro-electric power generation.
• Expand its operations and compete with other contenders
• Opportunity to establish presence in other parts of the country
• Opportunity in distribution .
• Conducive Policy & Regulatory frame work for renewable energy
Thinking Big, Doing Better
domestically .
• Technology break-through .

24. THREATS
• The rising Maoist insurgency (with its greatest influence in states
having the largest coal resources) could result coal shortage
leading to higher costs.
• Changes in International prices of coal and International policies
on import of coal.
• Any tariff hike delay or reduction by the CERC or state regulatory
body, will impact the revenues and profitability
• Increase in private sector power generation could lead to
compressed rates of merchant power.
• Continuation of high subsidies for diesel & kerosene.
Thinking Big, Doing Better

25. THREATS
• The improving trend in T&D losses due to rising investment in T&D
could result in the fading of India’s power deficit at a quicker pace
than expected.
• Ability to maintain cost competitiveness vis-à-vis international
Thinking Big, Doing Better
markets .
• Political support at the state government level/institutions vary
widely .
• Presence of more players supplying power selling power at
cheaper rates than Adani .

26. Thinking Big, Doing Better
Tata Power has a presence
in all Segments - Thermal,
Hydro, Solar, Wind,
Transmission & Distribution.
They moving towards
national presence in the
power sector as well as
communication.
They are implementing cost
reduction strategies to
emerge as a low cost power
producer.

27. Thinking Big, Doing Better
Reliance power is the only
power generation company in
India to have bagged three Ultra
Mega Power Projects (UMPP)
awarded by the Government of
India.
It has presence in most region
and is also poised to have more
than 10,000 mw of installed
capacity.
Recently, they acquired Hydro
power projects from Jaypee
Associates.

28. Thinking Big, Doing Better
It is the Largest PSU power
company with presence in
the entire value chain of the
power generation business,
backed by the Government
of India, which has a
shareholding of 84.5%.
They have diversified power
projects comprising 56%
coal, 16% Gas, 11% Nuclear
and 17% Renewable Energy
Sources.

29. With success comes responsibility
Adani Foundation
Our inclusive & progressive way of life
Thinking Big, Doing Better

30. Thinking Big, Doing Better
Our responsibility lies in making
sure that India flourishes and
prospers.
We aim to touch and t ransform
lives of people living in
underprivileged and neglected
regions.
We seek to achieve this through
accessible healthcare, good
education, rural infrast ructure
development and facilitating a
means to a sustainable
livelihood in communities that
need it the most .

31. Thinking Big, Doing Better
Education
Empower a generat ion, and
then the next with quality
educat ion
-------------------------------------------
Ignit ing spark in over
100,000 young minds

32. Thinking Big, Doing Better
Community Healthcare
Every life is precious
-------------------------------------------
Facilitating a healthier life to
150,000 people every year

33. Thinking Big, Doing Better
Sustainable Livelihood
Development
A livelihood is not just a pay
check, it gives you dignity, a
sense of purpose and true
freedom
-------------------------------------------
Transformed more than
25,000 lives by providing
better opportunities to create
self reliant life

34. Thinking Big, Doing Better
Rural Infrastructure
Development
It is a misconception that
infrastructure is urban led.
Rural regions need it just the
same.
-------------------------------------------
Improving life of over
300,000 people in 90 cities
& village by developing
quality infrastructure

35. • Enter in distribution business, which would be long term
revenue accretive
• Acquire or install projects in renewable energy (solar and wind).
• To enter or bid for Hydro power generation.
• Enter in Carbon Credit trading.
• Bid for Nuclear power projects, as when the government policy
Thinking Big, Doing Better
is conducive
• Bid for International power projects.
• To De-risk the current model, your company intends to have
long-term coal linkages or acquire new mines internationally.
• To expand bid for projects in various states for having a pan
India presence.

36. Powering India's Progress.
We are
Thinking Big, Doing Better