Thinking Big Doing Better Adani Power Limited Annual Report 2016-17 At 10,440 MW, Adani Power Limited owns and operates India’s largest thermal power capacity in the private sector. Some of the Company’s large and modern power plant assets include the 4,620 MW power plant in Mundra, which is the largest single-location private coal-based power plant in the world, the 3,300 MW Tiroda power plant, the 1,320 MW Kawai power plant and the 1,200 MW Udupi power plant. With an economic growth that is primed to be among the fastest in the world, India’s growing requirement for power is unquestionable. With the aspiration to ‘Think Big, Do Better’, Adani Power has a well-articulated growth plan to increase power capacity to 20,000 MW by 2020 and contribute to the country’s growth and progress. Adani Power is a part of the USD 12 billion Adani Group, which has interests in resources, logistics and energy. One vision, one brand As part of preparing the Adani Group for the next phase of our growth, we have re-formulated our 2020 vision: To be the globally-admired leader in integrated infrastructure businesses with a deep commitment to nation-building. We shall be known for the scale of our ambition, speed of execution and quality of operation. Our values Courage: We shall embrace new ideas and businesses. Trust: We shall believe in our employees and other stakeholders. Commitment: We shall stand by our promises and adhere to high standards of business. Our culture Passion: Performance with enthusiasm and energy Results: Integration: Dedication: Consistently Working across Working with achieving goals functions and commitment in businesses to the pursuit of create synergies our aims Entrepreneurship: Seizing new opportunities with initiative and ownership Resources Dhamra Port in Odisha, Mormugao Terminal in Goa and Vizag Terminal The resources business deals with in Andhra Pradesh. Mundra Port, obtaining coal from mines and which is the largest port in India, trading. In the future, this business benefits from a deep draft, state- will also include oil and gas of-the-art infrastructure and SEZ production. About the Adani Group status. It crossed the 169 MMT-mark The Adani Group is one of India’s The Group is developing and of cargo handling in FY 2016-17. The leading business houses with operating mines in India, Indonesia Group is also developing a terminal revenues of over USD 10 billion. and Australia. It is also importing at Ennore in Tamil Nadu and a mega Founded in 1988, the Group and trading coal from many other transhipment terminal at Vizhinjam, has grown to become a global countries. Currently, we are the Kerala. integrated infrastructure player largest coal importers in India. Our with businesses in key industry extractive capacity has increased Energy verticals: threefold to 5 MMT in 2015 and we The energy business involves power aim to extract 200 MMT per annum generation, transmission and gas Resources Logistics Energy by 2020, making Adani one of the distribution. largest mining groups in the world. Adani is the largest thermal power Logistics producer in India’s private sector with an installed capacity of 10,480 The logistics business comprises MW including a 40 MW solar plant a large network of ports, special at Bitta, Gujarat. Four of our power The Group has also made significant economic zones (SEZ) and multi- projects are spread across Gujarat, strides in the agri-infrastructure modal logistics – railways and ships. Maharashtra, Karnataka and business by setting up grain storage The Group owns and operates Rajasthan. We also provide a range silos and cold storage facilities. It seven ports and terminals in India of reliable and environment-friendly is also a market leader in edible oils – Mundra Port, Dahej Port, Kandla energy solutions in the form of CNG through the Fortune brand. Terminal and Hazira Port in Gujarat, and PNG. At 10,440 MW, Adani Power owns and operates India’s largest thermal power capacity in the private sector. Origin Adani Power was listed through an IPO in 2009. The first unit of 330 MW at Mundra was commissioned on 4th August, 2009. We also commissioned India’s first supercritical 660 MW unit at Mundra on 4th March, 2011. Units 5 and 6 at Mundra are the world’s first supercritical technology-based thermal power project to be registered as a ‘Clean Development Mechanism (CDM) Project’ with the United Nations Framework Convention on Climate Change (UNFCCC). Moreover, the Mundra power plant is the largest single-location coal-based thermal power plant in India and one of the top five in the world. Assets and Asset Asset Asset Asset capacities 4,620 MW 3,300 MW 1,320 MW 1,200 MW Location Location Location Location Mundra, Tiroda, Kawai, Udupi, Gujarat Maharashtra Rajasthan Karnataka Specifications Specifications Specifications Specifications 4x330 MW 5x660 MW 2x660 MW 2x600 MW and 5x660 MW 6.38% 0.38% Shareholding, as on 31st March 2017 25.16% Promoters Foreign – Bodies corporate Public shareholding NRIs – individuals 68.08% (Consolidated) Financial performance Revenue ( Revenue 2012-13 6,970 H 2013-14 16,005 crore) 2014-15 19,791 2015-16 25,734 2016-17 23,203 EBIDTA ( EBIDTA 2012-13 1,150 H 2013-14 5,211 crore) 2014-15 6,083 2015-16 9,004 2016-17 6,391 Net worth ( Net worth 2012-13 4,293 2013-14 6,543 H crore) 2014-15 5,725 2015-16 7,468 2016-17 3,000 Net fixed assets( Net fixed 2012-13 48,058 Note: Figures for FY 2015-16 and 2016-17 are basedonIndAS FY 2015-16and2016-17 are for Figures Note: 2013-14 50,017 2014-15 45,264 H crore) 2015-16 57,209 2016-17 54,516 EBIDTA margin (%) margin EBIDTA 2012-13 17 2013-14 33 2014-15 31 2015-16 35 2016-17 28 Chairman’s statement We strongly believe that the visionary reforms undertaken by the government, coupled with robust economic growth and renewed focus on the manufacturing sector as well as the Power for all goal, will drive consumption growth over the next few years. Dear Shareholders, The private sector has contributed greatly to building India’s power generation and transmission capability over the last decade, thus energising the nation’s economic growth engine, and providing access to reliable power supply to a large number of hitherto underserved citizens. The nation is today largely free of the crippling problems of power shortages and unreliable supply, which plagued economic growth in the past. Thermal power generation capacity, which stood at 82.4 GW in FY 2006-07, has grown rapidly during the last decade, to 218.3 GW. Of this, 99 GW has been added during the 12th Five Year Plan, outstripping the Plan target of 88 GW installations. Investments made by the private sector have played a key role in this capacity expansion, aided by enabling legislation. From a mere 9.6 GW, which was 12% of the total thermal power capacity in FY 2005-06, the private sector accounted for 84.2 GW or 39% of the total thermal power capacity at the end of FY 2016-17. On the other hand, despite the focus on the manufacturing sector commendable growth in generation as well as the Power for All goals, The Company sold and transmission capacity, will drive consumption growth over the growth in consumption of the next few years. 60.2 billion units electricity has fallen short of on a consolidated projections. This has led to a Our Performance basis, and recorded situation nearing oversupply in As the largest private sector power total revenues the electricity market in the near producer, we maintained our term. Along with this, there have emphasis on operational efficiency of H23,203 been persistent challenges in terms and cost control, while working crores. Of this, of fuel shortages, non-availability relentlessly to solve persistent the Standalone of long-term PPAs, and policy challenges. During FY 2016-17, we uncertainties that have impacted continued to see the impact of the business private sector investments, and overcapacity situation in the form accounted for created a stress on the banking of reduced demand for short-term sales of 27.6 billion system. contracts, low merchant prices and reduced offtake by some long- units and H11,753 It is imperative that the government term customers. However, with a crores of revenues. as well as regulatory bodies take major portion of our capacity tied concrete steps towards resolving under long-term PPAs, and our these challenges, by improving ability to maintain high availability coal supply, signing fresh PPAs, and of our plants, we have been able Business Outlook expeditiously addressing petitions. to withstand the vagaries of the The recently-announced SHAKTI The Central Government has market. policy will allow power plants to already initiated several reforms in source domestic coal reliably. We During FY 2016-17, your Company this direction, such as addressing believe that the performance of sold 60.2 billion units on a the deteriorating financial health our domestic coal-based power consolidated basis, and recorded of DISCOMs through the UDAY plants at Kawai and Tiroda plants total revenues of H23,203 crores. scheme, alleviating the shortage in will improve further with an assured Of this, the Standalone business supply of domestic coal by setting supply of fuel. We will continue to accounted for sales of 27.6 billion a target of doubling domestic focus on resource management as units and H11,753 crores of revenues. production to one billion tons by well as efficient operations of our Among subsidiaries, the Tiroda plant 2020, and announcing the new capacities.