SMART Annual Report 2020-21
The 2-minute Annual Report
Adani Enterprises Ltd Adani Enterprises Limited is India’s largest listed incubator of tomorrow’s businesses. One of the world’s most successful business incubation specialists
Mining Solar manufacturing Airports
Roads and highway construction Water management Data centres
Packaged and branded edible oils Agro products Defence sector AEL. Consistent out-performer
32% 10% CAGR of shareholder CAGR growth of BSE returns since Sensex in 27 years the Company’s FY 2020-21 inception in 1994 Adani Enterprises. Our key consolidated financials, FY 2020-21
Revenues EBIDTA Normalised PAT* Exceptional Item
(H crore) (H crore) (H crore) (H crore)
44,086 40,291 2,968 3,259 939 1,182 199 (259)
FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21
• Reduction in revenue • EBIDTA growth of 10% • Profit Attributable to mainly due to volumes despite lower revenues Owners (Excluding impact lower by 20% in the IRM • EBIDTA growth of exceptional items) segment following the derived from the solar COVID-19 impact in Q1 manufacturing business FY 2020-21 • Revenue decline partly compensated by increased revenues from the solar manufacturing and other businesses IRM: Integrated Resources Management Chairman Gautam S Adani’s overview
COVID-19 is a wakeup call for all of us to Mumbai International Airport Limited (NMIAL) transform ourselves. There cannot be a airports. better time for us to commence the journey While we can look back and feel satisfied about towards true self-reliance (Atmanirbharta) for our results, I believe that the real phase of accelerating the building of our nation in the accelerated growth of the Adani Group as an post-COVID-19 world. entity that benefits from having a portfolio of Capacity addition, sweating of assets, and a companies with several strategic adjacencies, is relentless focus on operational excellence and only now gathering momentum. efficiency ensured that the EBITDA of our listed What we have built over the past two decades portfolio registered a year-on-year growth of 22% is India’s largest integrated and yet diversified (H32,337 crore in FY 2020-21). infrastructure business that is now manifesting Adani Enterprises Limited (AEL) took over itself as an integrated ‘platform of platforms’ and operations of airports at Ahmedabad, Lucknow moving us closer to unprecedented access to the and Mangalore, signed concession agreements Indian end consumer. for Guwahati, Jaipur & Thiruvananthapuram, I know of no business model akin to ours with and is in the process of acquiring Mumbai access to an unlimited B2B and B2C market over International Airports Limited (MIAL) and Navi the next several decades. Managing Director’s message Rajesh S Adani
We continued to identify and invest in new businesses is being completed within the agreed timeline and and recorded improved performance in our core achieved ~ 70% completion supported by sustained businesses. Our natural resources business continued to revenue inflows from the NHAI. We ended the year under remain one of our fastest growing where we continued review with ten projects in hand; two projects (Suryapet- to reinforce our market leadership. Khammam and Mancherial-Repallewada) had been completed to the extent of ~20% by the year end. Our Parsa East & Kente Basan (PEKB) mine, the first and the only captive open cast coal mine with washeries in We signed a concession agreement for the the country, continued to operate at its peak capacity of Thiruvananthapuram, Jaipur and Guwahati Airports and 15 MMT per annum. acquired a 23.50% stake in Mumbai International Airport Limited. During FY 2020-21, we operationalised the Talabira mine of Neyvell Lignite Coal India Ltd. (20 MMT) and We signed a joint venture agreement with EdgeConneX operationalised the Kurmitar iron ore mine of Odisha to develop and operate data centers throughout India, Mining Corporation Limited (6 MMT) on 1st April, 2021. leveraging the complementary capabilities of the We also won auctions for the Gondulpara mine in promoters. Jharkhand and for the Dhirauli mine in Madhya Pradesh, venturing into the area of commercial mining. We believe that sustainability is not only a responsibility, but an essential part of our personality, integrated into We acquired PLR Systems Pvt. Ltd., a leading company our business model. Going forward, we will continue to involved manufacturing world-class small arms in India. grow our business with a focus on nation building. A major road infrastructure project, Bilaspur-Pathrapalli, How we grew our business in a challenging FY 2020-21
Financial 26 3.6 2.4 %, growth in PAT to x, debt-to-EBIDTA x, interest coverage H1,182 crore ratio ratio
Operational 63.4 17 13 8+ 450+ Mn tonnes, volume of %, Increase in solar %, Increase in mining Mn, consumers Kms, road order book Integrated Resource module volumes to services volumes served across its Management 1158 MW airports
Strategic Forayed into the Airports business with a Acquired a 23.5% stake in the Mumbai and The Company acquired a controlling stake portfolio of six airports. Navi Mumbai airports. in PLR Systems, India’s first and only private sector company possessing small arms Assumed control of the operations, Created AdaniConneX, a Data Center joint manufacturing capabilities. management and development of venture between AEL and EdgeConneX, to Ahmedabad, Lucknow and Mangaluru airports. develop 1 GW of data centre capacity over the The Company’s modules were supplied for coming decade. solar pump installations in Punjab, Haryana, Signed a concession agreement for the Uttar Pradesh, Rajasthan, Gujarat, Madhya Guwahati, Jaipur and Thiruvananthapuram The Company received LoA from NHAI for Pradesh and Maharashtra. airports on 19th January 2021. All three four projects related to the construction and operational airports – Ahmedabad, Mangaluru maintenance of roads in Telangana, Odisha, and Lucknow – were awarded Airports Council West Bengal and Gujarat. Of the four projects International’s Airport Health Accreditation for received, two are under HAM, one under Build safe travel. Operate Transfer (BOT) and one under Toll Operate Transfer (TOT) model. AEL. Successful value-accretive incubator
Rich track record Market value to shareholders Capital management
• Created five • Delivered 32% CAGR • Robust structure; infrastructure in market value since debt-to-equity ratio of unicorns since listing in 1994 0.8x as on 31 March inception • Delivered 113% 2021 • Demerged ATGL CAGR in market value • Comfortable and AGEL in the in the three years external debt-to- three years ending FY ending FY 2020-21 EBIDTA ratio of 3.6x 2020-21 as on 31 March 2021
ATGL: Adani Total Gas Ltd, AGEL: Adani Green Energy Ltd. How we have enhanced our culture of operational excellence
Core portfolio Solar manufacturing business ESG
• IRM continues to • India’s largest • Embedded ESG maintain national manufacturing facility framework; value leadership position (1.2 GW capacity) driver • 50%+ market share • Focus on in the mining services sustainability space initiatives
IRM: Integrated Resources Management How we are developing our businesses
Natural resources Business incubator B2C segment entry
• Mining portfolio of • Road construction • Won bids for six 127.2 MMT order book of 450+ airports • End-to-end logistics kms • Acquired provider • Significant progress Mangaluru, Lucknow in Water Management and Ahmedabad and Data Center airports domains • Acquired MIAL operations with 23.50% stake Adani Wilmar Limited (part of AEL)
Adani Wilmar (50:50 joint venture and The Company possesses one of the consolidated based on equity method) largest domestic distribution networks increased revenues 25% from H29,767 comprising 95 stock points, 5000+ crore in FY 2019-20 to H37,182 crore in distributors and 10% retail penetration, FY 2020-21. covering approximately 1.5 Mn outlets. The Fortune brand continued to lead the The joint venture was certified as a domestic retail consumer pack market Great Place to Work by Great Place with a 20% market share. to Work Institute India for the fourth consecutive year. The joint venture operated eight seed crushing plants with oil processing The Company launched Fortune Marts cumulative capacities of 7425 TPD and in eight cities and introduced Fortune 17 refineries with a cumulative capacity Online Application in ten cities to of 16285 TPD. facilitate online grocery purchase. The Company possesses a diversified Wilmar brands include Fortune, King’s, products portfolio comprising rice, soya, Raag, Bullet, Aadhar, Avsar, Jubilee, pulses, besan, castor, soya and oleo Fryola, Alpha, Alife. value-added products. Our incubation competence: Access to Adani Group strengths
Organisational Business vision Recruitment architecture
Global Project execution Funding pipeline competitiveness
Operational Capital Management High asset utilization monitoring Plan
Our incubation lifecycle
Conceive Fund Fuse Develop Hold Demerge Our incubation pedigree
Value Creation since 2015 Value Creation till 31st Mar, 20
935 340
189 86 CAGR 12% 51
519 CAGR 45% 354 116
112
340 138
22 January 2015 Value as on 31 March 2020 01 April 2017 31 March 2020
AEL Value APSEZ Value APL Value ATL Value AEL Value AGEL Value AGL Value
H 150 ~25% CAGR H 75,000 in November 1994 in March 2020 We are not just focused on emerging better but cleaner as well.
Energy intensity Emission intensity Become carbon- reduction by 30% reduction by 35% neutral (2025) (2025) (2025)
100% waste Water recycling consumption Maintain zero liquid through landfilling intensity reduction discharge (2025) for reclamation of by 33% (2025) excavated area (2025) We continued to touch the lives of the marginalised
0.5 2,250 18 Mn families Villages touched States
Areas of engagement
Sustainable Community Community Education Livelihoods Infrastructure Health Development Development The world, the future and Adani Enterprises Adani Enterprises Limited is more than a company; it is a snapshot of the world as it is likely to be in the future.
A world that will A world that will A world that will seek to invest seek to invest in gravitate towards in renewable energy-efficient food hygiene resources resources
A world that A world A world where will invest where agri will companies will more extensively gain exponential need to build in efficient and productivity national internet convenient mass through infrastructure mobility digitisation
Adani Enterprises has seeded today’s space with related businesses that will be increasingly relevant in tomorrow’s world. To read the full AEL Annual Report 2020-21, click here: https://reports.adani.com/Adani-Enterprises-Limited-Annual-Report/index.html This is an extra investor initiative that extends beyond the exhaustive disclosures of the Company’s Annual Report 2020-21