Adani

1. Presented by:
Swarupananda Deogharia
Jyoti Bhagchandani
Abhijeet Sharma
Krishna Mourya
Urvi Parekh
Amit Gala

2.  Adani Group is Gujarat based Indian conglomerate company
headquartered in Ahmedabad, Gujarat, India
 It was founded by Gautam Adani, in the year 1988.
 The core businesses of the group are commodities trading, edible
oil manufacturing, Mundra port operations and distribution of
natural gas
 Apart from its core businesses, the Adani Group has also
diversified into Real Estate, Ports, Special Economic Zones and IT
enabled services

4. Resources Logistics Energy

5. Trading activities
of Adani
Enterprises Ltd
Projects of Adani
Enterprises Ltd
Adani Agri Fresh Ltd
(100%)
Adani Agri Logistics Ltd
(100%)
Adani Wilmar Ltd (50%)
Adani Infrastructure and
Developers Pvt Ltd
(95%)
Adani Welspun
Exploration Ltd (65 %)
Adani Gas Ltd (100 %)
Adani Power Ltd (70.25
%)
Adani Mining Pvt Ltd
(100 %)
Adani Global
FZE,Dubai(100%)
Adani Global Pte Ltd.
Singapore (100%)
Controlled
Atmospheric
Storage Facility
Grain Silos
Edible Oil Refining
Mundra Port and
SEZ Ltd (MPSEZ)
Oil and Gas
Exploration
City Gas
Distribution
Power Generation
Coal Mining
Power Trading
Business of Adani
Enterprises Ltd
Coal Trading
Business of Adani
Enterprises Ltd

6.  Resources comprises coal mines and trading, and will include oil and gas in
future;
 Logistics denotes a large network of ports, SEZs and multi-modal logistics,
railways
 Energy involves power generation and transmission and gas distribution.

7.  Starting with the plastic polymer import, it gained a foothold in the
commodities trading business .This large scale trading business
provided Adani Exports with
 Ability to aggregate demand
 Access large Capital
 Well-oiled distribution mechanism
 Knowledge of international business
 Possible Political connections
 Experience in supply chain management

8. 0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2010 2011 2020
660
3960
20000
Power capacity (in MW)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2011
3694
1303
5210
16441
Market capitalisation (in $ million)

9. 0
5
10
15
20
25
30
35
2008 2009 2010 2011
10.99
22.25
28.76
31.48
Coal imported (in million MT)
0
0.5
1
1.5
2
2.5
3
2008 2009 2010 2011
0.64
1.22
2.32
2.52
Coal mined (in million MT)

10. Strength
•The diversified nature of the Adani Group
helps in the growth of Adani Power
•Strong Project - Execution record
•Since the largest supplier of coal is Adani
Enterprises, this reduces the cost of coal to
Adani Power
Weakness
Present only in very few states namely
Gujarat, Maharashtra and Haryana.
Opportunity:
• Can diversify into Hydro-electric
power generation.
• significant opportunity for Adani Power
to expand its operations and compete with
other contenders
• Opportunity to establish presence in
other parts of the country
Threat
• Changes in International prices of coal.
Changes in International policies regarding
import of coal.
Facing delay problem in security clearances
from GOVT in different ports

11.  Adani Enterprises Ltd
Mar 05, 2012: Adani Enterprises To Supply Coal To NTPC's Power Stations

Jan 19, 2012: Aries Completes Design, Supervision And Commissioning
Services On Solar PV Power Plant In Gujarat, India

Dec 26, 2011: Adani Enterprises Announces Tenders For Selection Of LSP
For Transportation And Delivery Of Coal From Mahaguj Collieries

Aug 10, 2011: Adani Enterprises Reports Net Sales Of INR95.96 Billion In
Fiscal 2011

Jan 25, 2011: Adani Group Signs MoU To Explore Possibility Of Lignite
Based Power Plant In Indonesia

12. Adani Foundation
Shimla
Health and
Sanitation
Adani Vidya
Mandir
Education and
medical grants
Rural
Development
Rural
Development
Education
Community Health
Rural Infrastructure Development
Sustainable Livelihood
Rural
Development
Adani DAV
public school
DahejAhmedabadTirodaMundra

13. Competitive strategy Corporate strategy
how a firm competes within a particular
market concerned with the use of
resources and capabilities to create
competitive advantages
where a firm competes is the overall plan
for a multi-business unit company.
company adds value through the
configuration and organization of its
multi-market activities
•Cost leadership
•Differentiation
•Focused
differentiation
Or
Focused on Niche
Market
What business the
corporation should
be in
How the corporate
office should
manage the array of
business units

14. An advantage that a firm has over its competitors, allowing it to generate greater sales
or margins and/or retain more customers than its competition..
A differential advantage is created when a firm's products or services differ from its
competitors and are seen as better than a competitor's products by customers.
“Providing something unique that is valuable to the
buyer beyond simply offering a low price.” (M. Porter)
THE KEY IS TO CREATE VALUE FOR THE CUSTOMER
cost advantage
ability to produce
good or service at
a lower cost
ability to sell its
good or service at
a lower price
generate a larger
margin on sales

16. Mundra Tiroda Kawai
(APL) is implementing
4620 MW Power Plant
Phase -1 : 2 x 330 MW
Phase - 2 : 2 x 330MW
Phase - 3 : 2 x 660 MW
Phase - 4 : 3 x 660 MW
Adani Power Maharastra
Limited (APML) is
implementing 3300 MW
Power Plant.
Phase -1 : 2 x 660 MW
Phase -2 : 3 x 660 MW
Adani Power Rajashthan
Limited (APRL) is
implementing 1320 MW
Power Plant.
Phase-1 :2 x 660 MW

17. 
Mundra - Dehgam transmission line of 430 Kms, which is the
longest dedicated transmission line by private sector.
 This will be the first HVDC transmission line by private sector in the
country. APL is also setting up another 1000 Kms ± 500 KV HVDC
transmission system for supply of power to HPGCL.
 50km 400kV Mohindergarh-Bhiwani transmission line for supply of
power to HPGCL.
 Adani Power Maharashtra Limited (APML), a subsidiary of APL, is
developing a 221km 400kV Tiroda-Warora Transmission Line

18.  2640 MW Coal based Thermal Power Project at Dahej, Gujarat through its
subsidiary company Adani Power Dahej Limited.
 1320 MW Coal based Thermal Power Project at Chhindwara, Madhya Pradesh
through its subsidiary company Adani Pench Power Limited
 3300 MW Coal based Termal Power Project at Bhadreshwar, Gujarat through its
subsidiary company Kutchh Power Generation Limited
 100 MW Solar Power Project at Surendranagar, Gujarat through its
subsidiary company Adani Renewable Energy LLP

19. Strengths
• Strong execution track record on
the back of the huge success of
Mundra Port
• The diversified nature of the Adani
Group
•Great distribution channel of raw
material handling system
•Coal mine resources
Weakness
• delays in coal supplies from Adani
Enterprises as it is Adani Power’s
holding company
• Other private owned companies are
also in power generation
Opportunities
• Adani group’s presence in domestic
coal mining will reduce coal cost as
currently Adani Enterprises is the
biggest supplier of coal to Adani Power
Threats
• The rising Maoist insurgency
could result in delays and higher costs
Increase in private sector power
generation

20. 20

21. Rivalry is very less
The major rivals of the
company are NTPC, Power
Grid Corp, Reliance Power,
Tata Power,
Price of electricity is more
or less same in the entire
industry
Industry growth is high
THREATS OF NEW ENTRANTS
LOW
High capital investment
Resource scarcity
regulatory approvals
BUYERS
BARGAINING
POWER
(LOW)
Buyers group is not
powerful
Shortage of
electricity supply
Less numbers of
suppliers
(electricity
producers)
Consumers are less
price sensitive
Majority of
consumers are
householdsTHREAT OF SUBSTITUTES
sources of renewable energy
Hydro and nuclear power producing
companies
and solar power
BARGAINING
POWEROF
SUPPLIERS
Bargaining power
of supplier is high
Company has also
gone for forward
integration
Suppliers can‘t
integrate forward
i.e. produce
electricity because
of the huge entry
barriers.

22. Operational capacity(MW) APL JSWEL
FY10 1320 1295
FY11 1980 3140
FY12 6600 3140

23. Corporate Strategy is the way a company adds value through the
configuration and organization of its multi-market activities
The definition has three important aspects:
 Value Addition - the generation of superior financial performance from
multi-market activities that create corporate advantage
 Configuration - the multi-market scope of the corporation
(product/market diversification, geographic focus, and vertical boundaries)
 Organization - the management of the inter-linkages between businesses
and the head office
The goal of corporate strategy is to build corporate Advantage so as to
earn above normal returns

24.  A firm is diversified if it is in two or more lines
of business
Degree of relatedness between the business units
is often determined by comparing their value
chains
 when certain stages of the value
chains “fit” each other, we consider
such diversification related
 No or little strategic fit = unrelated
Diversification
(product lines)
VerticalIntegration

25.  With the increased export and import, Adani group
was facing port infrastructure problems that affected
its business negatively.
 This prompted Adani group to undertake private port
development in Mundra.

26.  Adani group undertook another “related” diversification in SEZ
by developing an integrated SEZ in Mundra so that the Mundra
port could be utilized to the full capacity.
 The Adani power plant is located very close to a coal-jetty
which lowers the transportation cost of the raw material. Close
proximity to the sea ensures water for steam generation and
cooling.

27. Diversification
Port and SEZ Edible Oil Power Generation
•Increased export and import
• Private port development in
Mundra
• Adani group undertook
another “related"
diversification in SEZ
• The key success factors in
setting up a port include –
 tie-ups with major
container lines
 a balanced import and
export cargo mix
• The Mundra port adopted
modern cargo handling
facilities which are more
operationally efficient
• Leverage its own
distribution network to
give them a competitive
advantage
• One of the major areas
where one could get a
competitive advantage was
in managing the supply
chain
• Transportation accounted
for about 70% of the total
supply chain cost
• Consumption patterns of
various edible oils differ
from region to region
• Availability of cost-
effective fuel sources
• One of the major
commodities Adani
group imports is coal
• The coal imported
through the Mundra port
is being used by Adani
power
• Currently, coal powers
more than half of India’s
electricity plants
• Adani Power had twin
aims–
 exploit growth potential
in the power sector
 satisfy the energy needs
of Mundra SEZ.

28. Reasons For Diversification
Power Generation
• Av
Ports
Indian ports(Kandla and
Mumbai ports )were
getting congested which in
turn affected exports and
imports through Adani
Exports.
 State government came
up with a policy on port
privatization in 1995
 To facilitate trading to
make smooth and well
integrated supply chain
 Providing strategic
competitive advantage
over competitors in
related businesses
Edible Oil:
Huge market potential,
AWL has more than 45%
of market share
India the largest importer
of edible oils in the world
more than 4 mn tonnes.
A growing population,
increasing rate of
consumption increase the
demand for edible oil.
Transportation accounted
for 70% of total supply
chain cost.
Adani Energy
cost-effective fuel sources
throughout the lifetime of
the project
The coal imported through
the Mundra port is being
used by Adani power.
Currently, coal powers more
than half of India’s
electricity plants
.
The power plant is located
very close to a coal-jetty
which lowers the
transportation cost of the
raw material.
Close proximity to the sea
will ensure water for steam
generation and cooling

29. What businesses that
we are not in, but
should be in?
What businesses that
we are in, but
should not be in?

30. ADANI OIL & GAS
EXPLORATION
ADANI RETAIL
ADANI STEEL
ADANI REAL ESTATE