Rank 030 Adani Enterprises Ltd
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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 2 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 timely coal availability), creating a less Dedication: Working with commitment standard of business polluted world, delivering quality food in the pursuit of our aims 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) 3 4 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 Adani Enterprises is India’s most edible oil space. successful and only profitable Adani Enterprises pioneered mine developer and operator. bulk food grain handling, Adani Enterprises operates one storage and controlled- of the country’s largest edible atmosphere apple storage oil refineries. technology. 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. 5 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 relationships and proximity through 81 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 and regulatory glare we are proactively engaging in business transformation to progressively emerge as a 4% 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. For instance, our tree plantation rate at the level of 24 99,589 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. 6 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 7 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 integrated business model that spans Key highlights, 2016-17 Became L1 bidder for Gare Palma I, full mine development to coal supply Enhanced shipments to 7.3 MMT, II & III, Talabira II and III and Pachwara chain. The Company enjoys a long- higher by 32% despite a near 70- South, with an aggregated peak term contract as mine developer km road haulage required from capacity of about 74 MMTPA. and operator for coal mining in the pithead to rail; in doing so, we have Parsa East-Kente Basan mine (PEKB) demonstrated strong operational Leveraged the increasing use of in Chhattisgarh (estimated reserves and logistical efficiencies for hauling technology with a view to preserve of 452 MMT). It provides the full- large coal volumes over lengthy road the environment, build social service range – right from seeking stretches infrastructure, enhance mine area productivity and benchmark our various approvals, land acquisition, Conducted 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 and transportation to designated across inaccessible areas. 8 Adani Enterprises Limited