AR 2016-17

288 Pages·2017·4.29 MB·English

Thinking Big
Doing Better
Adani Enterprises Limited
Annual Report 2016-17
01-05 12-13 20-21
Corporate Snapshot Renewable Energy Managing Director’s Review
06-09 14-15 22-23
Coal mining and trading City Gas Distribution Financial Performance
10-11 16-19 24-31
Agri Business Chairman’s Statement Corporate Social Responsibility
Forward-looking statement
In this annual report, we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment
decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated
results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as
‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future
performance.
We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our assumptions. The
achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise,
or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should
bear this in mind.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
At Adani Enterprises Limited,
we are present in several
important national sectors
that help build the nation.
These sectors include coal
management, renewable energy,
edible oil, agri-storage and city
gas distribution.
These sectors are critical for the sustainable player in each of these businesses within just
growth of the economy even as they two decades of our incorporation. As India
represent the country’s backbone. As a result reinforces its position as the fastest growing
of our emphasis on large and timely capacity economy, we are driven by an even more
creation, we have emerged as the largest ambitious 2020 vision, reflected below.
Coal business Renewable energy Edible oil City gas distribution
200 MMT 10,000 MW 8 MMT 50 cities
by 2020 of solar power by by 2020 by 2021
2022
This ambition is encapsulated in our overarching
vision of ‘Thinking big. Doing better.’
Adani Enterprises is among
India’s most diversified
business conglomerates.
Coal mining Solar power Edible oil
Mineable reserves: 12 bn MT Generating capacity: 808 MW Refining capacity: 12,000 TPD
Locations: India, Australia and Location: India Locations: 16 locations in India
Indonesia Power generation, 2016-17: 787 MU Edible oil sales, 2016-17: 2.08 MMT
Production, 2016-17: 12 MMT KW/H
Agri-storage Gas distribution
Capacity: 8.5 lac MT Pipeline network: 5,350 kms
Locations: 13 locations in India Locations: Ahmedabad, Vadodara,
Grains handled: Take-or-pay Faridabad and Khurja
arrangement Gas distributed: 408 MMSCM
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Adani Enterprises Limited 25th Annual Report 2016-17
Adani Enterprises Limited is the flagship
entity of the Adani Group, one of India’s
largest business conglomerates.
Group overview
The US$ 12 bn Adani Group enjoys
significant interests across resources
(coal mining and trading), logistics
(ports and logistics, shipping and
rail), energy (power generation and
transmission) and ancillary industries.
Through these businesses, the Adani
Group is integrated into the core
of the world’s largest democracy,
touching millions of lives.
Corporate overview
Adani Enterprises is one of
India’s fastest growing diversified
conglomerates with business interests
across coal trading and mining,
Values Culture
renewable energy generation, agri-
Courage: We shall embrace new ideas Passion: Performing with enthusiasm
storage infrastructure and services as
and businesses and energy
well as edible oil and gas distribution.
This business mix - business-to- Trust: We shall believe in our Results: Consistently achieving goals
business and business-to-consumer employees and other stakeholders
Integration: Working across functions
– is directed at enhancing access to
Commitment: We shall stand by and businesses to create synergies
basic services (electricity through
our promises and adhere to a high
Dedication: Working with commitment
timely coal availability), creating a less
standard of business
in the pursuit of our aims
polluted world, delivering quality food
grain and providing healthy cooking Entrepreneurship: Seizing new
media. In doing so, the Company opportunities with initiative and
contributes to creating a better world. ownership
74.92% 20.96% 11,905
Promoter’s equity holding Institutional holding Enterprise value as on
(31st March 2017) (31st March 2017) 31st March 2017 (H in crore)
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Adani Enterprises Limited 25th Annual Report 2016-17
Adani Enterprises is a
conglomerate that addresses
diverse consumer needs, engaged
in holistic value creation for its
stakeholder ecosystem.
This is who we are
Adani Enterprises is India’s Adani Enterprises’ Fortune
largest thermal coal importer. brand is a market leader in the
edible oil space.
Adani Enterprises is India’s most
successful and only profitable Adani Enterprises pioneered
mine developer and operator. bulk food grain handling,
storage and controlled-
Adani Enterprises operates one
atmosphere apple storage
of the country’s largest edible
technology.
oil refineries.
Adani Enterprises is one of
the largest renewable power
producers in India.
Adani Enterprises is a leading
Indian player in the area of city
gas distribution.
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Coal mining
and trading
Adani Enterprises has been India’s largest
coal importer for nearly a decade. This
entrenched market leadership has been
the result of a strong and well-knit
team with high levels of productivity,
together with robust multi-year customer
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relationships and proximity through
multiple satellite offices, branches and
Coal trading volumes,
global offices.
2016-17 (MT)
The Company sources coal primarily from suppliers in
Indonesia and Africa, among others, fulfilling the role of a
critical supply chain partner for a number of customers in
the private and public sector in India.
With coal increasingly coming under the environmental
4%
and regulatory glare we are proactively engaging in
business transformation to progressively emerge as a
green, environment-respecting, responsible and integrated Growth in coal trading
mining enterprise. In this transformation, we are volumes, 2016-17 (%)
increasingly leveraging global best practices with respect
to technology, training, safety, environment-consciousness
and operating culture to enhance our financial and
operational sustainability on the one hand and sustain
investments in environment replacement at a far greater
level than that we take from it on the other.
99,589
For instance, our tree plantation rate at the level of 24
trees planted for every tree cut and a near 88% success
Trees planted/
rate in replanting trees from impacted areas reflects our
replanted, 2016-17
seriousness to more than give back what we take from
natural resources and ensure that our environmental
compliance transcends beyond regulatory requirements.
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Adani Enterprises Limited 25th Annual Report 2016-17
This is our calling card
• Among the top three global coal
traders
• Largest importer of thermal coal from
Indonesia and South Africa
• Largest coal handling merchant in
India
• Multiple winner of ‘Coal Importer of
the Year’ award at different forums
• Successfully operating MDO contract
in the Surguja cluster at Parsa with a
rated annual capacity of 27 MMT
• Bunyu operations recognised
by Wood McKenzie as the lowest
operating cost coal mine in Indonesia
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Mine development and consumption points. The Company annum, an outcome of the efficacy
operations also enjoys long-term contracts of our consistent and exhaustive CSR
Adani Enterprises Limited is the for two other MDO blocks to be practices, facilitating the expansion
pioneer of the Mine Developer and progressively commissioned. of Parsa-Kente mine in Chhattisgarh
Operator concept in India with an through strong community support
Key highlights, 2016-17
integrated business model that spans
ŸŸBecame L1 bidder for Gare Palma I,
ŸŸEnhanced shipments to 7.3 MMT,
full mine development to coal supply
II & III, Talabira II and III and Pachwara
higher by 32% despite a near 70-
chain. The Company enjoys a long-
South, with an aggregated peak
km road haulage required from
term contract as mine developer
capacity of about 74 MMTPA.
pithead to rail; in doing so, we have
and operator for coal mining in the
demonstrated strong operational ŸŸLeveraged the increasing use of
Parsa East-Kente Basan mine (PEKB)
and logistical efficiencies for hauling technology with a view to preserve
in Chhattisgarh (estimated reserves
large coal volumes over lengthy road the environment, build social
of 452 MMT). It provides the full-
stretches infrastructure, enhance mine area
service range – right from seeking
productivity and benchmark our
various approvals, land acquisition, ŸŸConducted a successful public
efficiencies with global best practices;
rehabilitation and resettlement, hearing for ramp-up of the Parsa
also used drones for increasing
developing required infrastructure, Kente mine capacity from 10 million
surveys and surveillance, especially
mining, beneficiation (on-site) tonne to 15 million tonnes per
across inaccessible areas.
and transportation to designated
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