DOING BETTER Adani Ports and Special Economic Zone Limited
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THINKING BIG DOING BETTER Adani Ports and Special Economic Zone Limited Annual Report 2016-17 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani Ports and Special Economic Zone Limited is India’s largest and fastest growing private sector port developer and operator with a pan-India logistics reach. Our entrepreneurial spirit, execution capabilities and sustainable business have once again given us the opportunity to deliver superior value to our stakeholders. Along with our expertise in providing end-to-end logistics solutions, operational excellence, low cost operations and synergies through our acquisitions, we are backed by a young and dynamic workforce that propels us to greater heights. Contents 08 10 14 Chairman’s Chief Executive’s Financial statement Review Performance 16 24 84 Corporate Social Statutory Financial Responsibility Section Section WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Engineered for the future APSEZ in 2016-17 – A snapshot 169 MMT 9,479 Cargo Consolidated Total Income handled (H crore) 11% growth over 21% growth over 2015-16 2015-16 5,692 3,920 EBIDTA Consolidated net profit (H crore) (H crore) 24% growth over 35% growth over 2015-16 2015-16 18.89 18.59 Earnings per Return on share (H) assets (%) 35% growth over 18% growth over 2015-16 2015-16 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Scale: APSEZ is India’s largest ports developer and operator, with a portfolio of ten ports, logistics network and an SEZ. Speed: APSEZ is one of the fastest growing port infrastructure companies in the world, taking the India growth story global Quality: APSEZ specializes in providing quality end-to-end logistics solutions backed by its ever-increasing capacity, widening global footprint, quick commissioning tenures and low cost operations. 02 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani Ports and Special Economic Zone Limited 18th Annual Report 2016-17 Group overview Company overview Adani Ports and Special Ours is the leading ports Economic Zone Limited business in India. We are (APSEZ) is promoted by the largest commercial port the Adani Group, one of operator and integrated India’s largest business logistic player in the country. conglomerates. Our presence across ten domestic ports forms a The USD 12 bn Group has strategic ‘string of pearls’ interests across resources around the Indian coastline. (coal mining and trading), We have been rated logistics (ports, logistics, Investment Grade by Moody’s, shipping and rail), energy S&P and Fitch. (renewable, thermal power generation and transmission), agro commodities and ancillary industries. 03 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani’s strategic ring of ports and ICDs KANDLA MUNDRA DAHEJ HAZIRA KATTUPALLI (OPERATORSHIP) MORMUGAO ENNORE VIZHINJAM 04 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani Ports and Special Economic Zone Limited 18th Annual Report 2016-17 PATLI KILARAIPUR Adani Ports: Pioneer KISHANGARH on multiple fronts Number one commercial port company of India Owns and operates one of the longest private railway lines of India for seamless cargo evacuation Only port company with a captive dredging model comprising the largest number of dredgers (17) DHAMRA Largest port-based Special Economic Zone in India Only Indian port company to be included in C40 ports for responsible carbon emission & environment conservation VIZAG Multipurpose Terminals Bulk Terminals Coal Terminals Container Terminals Kattupalli (Operatorship) Inland Container Depot (ICD) 05 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Vision To be the globally admired leader in integrated infrastructure businesses with a deep commitment to nation building. We shall be known for our scale of ambition, speed of execution and quality of operation. Values Courage Encourage employees to turn We shall embrace new ideas disappointments into learning and businesses opportunities Take calculated risks in Listen to and include pursuing new and big business the perspectives of our opportunities vendors, investors and other Dare to achieve stakeholders Own up to our decisions Commitment We shall stand by our promises Trust and adhere to high standards We shall believe in our of business employees and other stakeholders Be Reliable – ‘Do what you say’ and ‘Say what you will do’ Show faith in the capability of our employees Consistently deliver on business goals and targets Empower our employees to go beyond the call of duty to Consistently demonstrate high deliver results standards of professionalism Culture Passion: Performing with Dedication: Working with enthusiasm and energy commitment in the pursuit of our aims Results: Consistently achieving goals Entrepreneurship: Seizing new opportunities with initiative and Integration: Working across ownership functions and businesses to create synergies 06 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani Ports and Special Economic Zone Limited 18th Annual Report 2016-17 10 335 Number of ports, Capacity, 2016-17 2016-17 (MMTPA) >90% 42 India’s Berths hinterland access 16 2 Terminals Single-point mooring facilities 3 1 Inland SEZ container depots 8481 61% Notified SEZ Promoter’s holding Land (Ha) (March 31, 2017) 34% 5% Institutional holding Public holding (March 31, 2017) (March 31, 2017) 07 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Chairman’s statement Dear shareholders “Infinite patience, infinite purity, and infinite perseverance are the secret of success in a good cause.” said the great ascetic Swami Vivekananda. At a time when the world is opportunities for partnership looking at India with a greater at a time when our economy hope than at any time in the appears decoupled from global past, the philosophy of the uncertainties; the world is great visionary becomes our also seeing India as a catalyst guiding light. that will have a definite role in lifting the global economy out The world sees in India of a multi-year slump. 08 WorldReginfo - ee588807-a2c5-4deb-96a9-127c8b91ee9c Adani Ports and Special Economic Zone Limited 18th Annual Report 2016-17 The great Indian story represents driven organization rather than Adani Ports is one of the most a beacon of hope. The accelerated merely of passive infrastructure. This attractive proxies of India’s ports pace of economic reforms in India is differentiation has had across-the- sector. With its diversity across possibly the fastest across the world. business implications: Adani Ports locations, commodities handled The size, speed and implications of is not engaged in business with the and services offered, Adani Ports the structural shifts could not have singular objective to capture market represents the Great Indian been contemplated even as recently share; the company is driven by the Opportunity: a resilient economy as a few years ago. With reference prospect of expanding the market. with consumption aspirations and to the giant strides made, India has Adani Ports is not a single-location competitiveness. demonstrated creditable resilience infrastructure firm; the company At Adani Ports, we believe that in the most challenging of times for is a multi-location complement of community welfare and environment the global economy in recent history. ten ports driven by the vision of responsibility go hand in hand with India, in fact, is the finest asset class shifting the world’s gravity towards corporate growth. This commitment across the globe today. This resilience India. Adani Ports has not merely is reflected in a consistent spending has meant that India reported GDP invested in cranes, concrete and of a proportion of our post-tax profit growth of 7.1 per cent during the land; the company has invested in in CSR activities higher than the last financial year, an honourable a platform that provides global and stipulated 2 per cent of bottomline headline concurring with one of Indian companies an opportunity spending. As a matter of fact, we the most dramatic macroeconomic to profitably grow their businesses. began doing this more than a decade shifts: an attempt to formalise a Adani Ports does more than what ahead of it becoming mandatory. largely unorganised economy into a normal port would engage in; Today, while we are proud of what an organised one following currency the company has progressively we have achieved within our demonetisation. diversified from ports to allied core business, we draw a deeper services (logistics, SEZ and strategic In the era of open economies, robust satisfaction from the ways in we partnership opportunities); from one ports have a critical role in driving have transformed destinies across port to ten ports across India’s east, economic growth. The ports sector 1 lac students, 6 lac healthcare west and south coast; from largely facilitates India’s interaction with beneficiaries, and more than 11 a coal importer to one engaged in the world; it provides a gateway of lac people across 1,470 villages handling (import and export) of multi- products into and out of the country. through better physical and social commodity (containers, liquid and dry At Adani Ports, we believe that India’s infrastructure. bulk cargos). ports need to play a bigger role than At Adani Ports, the outlook appears just providing physical infrastructure; I proudly observe that Adani Ports attractive and I would like to they need to help moderate logistic has translated this vision into an thank our customers, employees, costs from 6-10% of the average retail operational engine that makes it shareholders, bankers, governments