Presented by:

Swarupananda Deogharia Jyoti Bhagchandani Abhijeet Sharma Krishna Mourya Urvi Parekh Amit Gala

 Adani Group is Gujarat based Indian conglomerate company headquartered in Ahmedabad, Gujarat, India It was founded by Gautam Adani, in the year 1988. The core businesses of the group are commodities trading, edible oil manufacturing, Mundra port operations and distribution of natural gas

Apart from its core businesses, the Adani Group has also diversified into Real Estate, Ports, Special Economic Zones and IT enabled services

Resources Logistics

Energy

Trading activities of Adani Enterprises Ltd

Coal Trading Business of Adani Enterprises Ltd Power Trading Business of Adani Enterprises Ltd Coal Mining Power Generation City Gas Distribution

Adani Global Pte Ltd. Singapore (100%) Adani Global FZE,Dubai(100%) Adani Mining Pvt Ltd (100 %) Adani Power Ltd (70.25 %) Adani Gas Ltd (100 %) Adani Welspun Exploration Ltd (65 %) Adani Infrastructure and Developers Pvt Ltd (95%) Adani Wilmar Ltd (50%) Adani Agri Logistics Ltd (100%) Adani Agri Fresh Ltd (100%)

Projects of Adani Enterprises Ltd

Oil and Gas Exploration

Mundra Port and SEZ Ltd (MPSEZ)

Edible Oil Refining

Grain Silos Controlled Atmospheric Storage Facility

 Resources comprises coal mines and trading, and will include oil and gas in

future;
Logistics denotes a large network of ports, SEZs and multi-modal logistics,

railways

Energy involves power generation and transmission and gas distribution.

 Starting with the plastic polymer import, it gained a foothold in the

commodities trading business .This large scale trading business provided Adani Exports with
Ability to aggregate demand Access large Capital

Well-oiled distribution mechanism

Knowledge of international business

Possible Political connections

Experience in supply chain management

Market capitalisation (in $ million)

16441
18000 16000 14000 12000 10000 8000 6000 4000 2000 0

5210 3694 1303

2008

2009

2010

2011

Power capacity (in MW) 20000

20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

3960 660

2010

2011

2020

Coal imported (in million MT)

35

31.48 28.76 22.25 10.99

30 25 20 15 10 5 0

2008

2009

2010

2011

Coal mined (in million MT)

3 2.5 2 1.5

2.52 2.32

1.22 0.64

1
0.5 0

2008

2009

2010

2011

Strength
The diversified nature of the Adani Group helps in the growth of Adani Power Strong Project - Execution record Since the largest supplier of coal is Adani Enterprises, this reduces the cost of coal to Adani Power

Opportunity:
Can diversify into Hydro-electric power generation. significant opportunity for Adani Power to expand its operations and compete with other contenders Opportunity to establish presence in other parts of the country

Weakness
Present only in very few states namely Gujarat, Maharashtra and Haryana.

Threat
Changes in International prices of coal.

Changes in International policies regarding import of coal.

Facing delay problem in security clearances from GOVT in different ports

 Adani Enterprises Ltd

Mar 05, 2012: Adani Enterprises To Supply Coal To NTPC's Power Stations

Jan 19, 2012: Aries Completes Design, Supervision And Commissioning Services On Solar PV Power Plant In Gujarat, India

Dec 26, 2011: Adani Enterprises Announces Tenders For Selection Of LSP For Transportation And Delivery Of Coal From Mahaguj Collieries

Aug 10, 2011: Adani Enterprises Reports Net Sales Of INR95.96 Billion In Fiscal 2011

Jan 25, 2011: Adani Group Signs MoU To Explore Possibility Of Lignite Based Power Plant In Indonesia

Adani Foundation

Mundra

Tiroda

Ahmedabad

Dahej

Shimla

Rural Development Rural Development Adani DAV public school Rural Development

Health and Sanitation

Education Community Health Sustainable Livelihood Rural Infrastructure Development

Education and medical grants

Adani Vidya Mandir

Competitive strategy how a firm competes within a particular market concerned with the use of resources and capabilities to create competitive advantages

Corporate strategy where a firm competes is the overall plan for a multi-business unit company. company adds value through the configuration and organization of its multi-market activities

Cost leadership Differentiation Focused differentiation Or Focused on Niche Market

What business the corporation should be in

How the corporate office should manage the array of business units

An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition..

cost advantage

ability to produce good or service at a lower cost

ability to sell its good or service at a lower price

generate a larger margin on sales

A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.

Providing something unique that is valuable to the buyer beyond simply offering a low price . (M. Porter) THE KEY IS TO CREATE VALUE FOR THE CUSTOMER

Mundra

Tiroda

Kawai

(APL) is implementing 4620 MW Power Plant Phase -1 : 2 x 330 MW Phase - 2 : 2 x 330MW Phase - 3 : 2 x 660 MW Phase - 4 : 3 x 660 MW

Adani Power Maharastra Limited (APML) is implementing 3300 MW Power Plant. Phase -1 : 2 x 660 MW Phase -2 : 3 x 660 MW

Adani Power Rajashthan Limited (APRL) is implementing 1320 MW Power Plant. Phase-1 :2 x 660 MW

Mundra - Dehgam transmission line of 430 Kms, which is the longest dedicated transmission line by private sector.
This will be the first HVDC transmission line by private sector in the

country. APL is also setting up another 1000 Kms 500 KV HVDC transmission system for supply of power to HPGCL.

50km 400kV Mohindergarh-Bhiwani transmission line for supply of

power to HPGCL.
Adani Power Maharashtra Limited (APML), a subsidiary of APL, is

developing a 221km 400kV Tiroda-Warora Transmission Line

 2640 MW Coal based Thermal Power Project at

Dahej, Gujarat through its

subsidiary company Adani Power Dahej Limited.

1320 MW Coal based Thermal Power Project at

Chhindwara, Madhya Pradesh

through its subsidiary company Adani Pench Power Limited

3300 MW Coal based Termal Power Project at Bhadreshwar, Gujarat through its

subsidiary company Kutchh Power Generation Limited

100 MW Solar

Power Project at Surendranagar, Gujarat through its

subsidiary company Adani Renewable Energy LLP

Strengths
Strong execution track record on the back of the huge success of Mundra Port The diversified nature of the Adani Group Great distribution channel of raw material handling system Coal mine resources

Weakness
delays in coal supplies from Adani Enterprises as it is Adani Powers holding company Other private owned companies are also in power generation

Opportunities Adani groups presence in domestic

coal mining will reduce coal cost as currently Adani Enterprises is the biggest supplier of coal to Adani Power

Threats The rising Maoist

insurgency could result in delays and higher costs

Increase in private sector power generation

20

THREATS OF NEW ENTRANTS LOW High capital investment Resource scarcity

BARGAINING POWEROF SUPPLIERS Bargaining power of supplier is high

regulatory approvals

Company has also gone for forward integration

Suppliers cant integrate forward i.e. produce electricity because of the huge entry barriers.

Rivalry is very less The major rivals of the company are NTPC, Power Grid Corp, Reliance Power, Tata Power, Price of electricity is more or less same in the entire industry Industry growth is high

BUYERS BARGAINING POWER (LOW) Buyers group is not powerful

Shortage of electricity supply

Less numbers of suppliers (electricity producers)

Consumers are less price sensitive

Majority of consumers are households

THREAT OF SUBSTITUTES sources of renewable energy Hydro and nuclear power producing companies and solar power

Operational capacity(MW)

APL

JSWEL

FY10

1320

1295

FY11

1980

3140

FY12

6600

3140

Corporate Strategy is the way a company adds value through the configuration and organization of its multi-market activities The definition has three important aspects: Value Addition - the generation of superior financial performance from multi-market activities that create corporate advantage Configuration - the multi-market scope of the corporation (product/market diversification, geographic focus, and vertical boundaries) Organization - the management of the inter-linkages between businesses and the head office The goal of corporate strategy is to build corporate Advantage so as to earn above normal returns

 A firm is diversified if it is in two or more lines

when certain stages of the value

chains fit each other, we consider such diversification related No or little strategic fit = unrelated

Vertical Integration Diversification (product lines)

of business Degree of relatedness between the business units is often determined by comparing their value chains

 With the increased export and import, Adani group

was facing port infrastructure problems that affected its business negatively.
This prompted Adani group to undertake private port

development in Mundra.

 Adani group undertook another related diversification in SEZ

by developing an integrated SEZ in Mundra so that the Mundra port could be utilized to the full capacity.
The Adani power plant is located very close to a coal-jetty

which lowers the transportation cost of the raw material. Close proximity to the sea ensures water for steam generation and cooling.

Diversification

Port and SEZ

Increased export and import Private port development in Mundra Adani group undertook another related" diversification in SEZ The key success factors in setting up a port include tie-ups with major container lines a balanced import and export cargo mix
The Mundra port adopted modern cargo handling facilities which are more operationally efficient

Edible Oil
Leverage its own distribution network to give them a competitive advantage One of the major areas where one could get a competitive advantage was in managing the supply chain Transportation accounted for about 70% of the total supply chain cost Consumption patterns of various edible oils differ from region to region

Power Generation
Availability of costeffective fuel sources One of the major commodities Adani group imports is coal The coal imported through the Mundra port is being used by Adani power Currently, coal powers more than half of Indias electricity plants Adani Power had twin aims exploit growth potential in the power sector satisfy the energy needs of Mundra SEZ.

Reasons For Diversification

Edible Oil:
Huge market potential, AWL has more than 45% of market share India the largest importer of edible oils in the world more than 4 mn tonnes.

Ports
Indian ports(Kandla and Mumbai ports )were getting congested which in turn affected exports and imports through Adani Exports. State government came up with a policy on port privatization in 1995 To facilitate trading to make smooth and well integrated supply chain Providing strategic competitive advantage over competitors in related businesses

Adani Energy
cost-effective fuel sources throughout the lifetime of the project The coal imported through the Mundra port is being used by Adani power. Currently, coal powers more than half of Indias electricity plants . The power plant is located very close to a coal-jetty which lowers Generation the Power transportation cost of the raw material. Av Close proximity to the sea will ensure water for steam generation and cooling

A growing population, increasing rate of consumption increase the demand for edible oil.
Transportation accounted for 70% of total supply chain cost.

What businesses that we are not in, but should be in?

What businesses that we are in, but should not be in?

ADANI OIL & GAS EXPLORATION ADANI RETAIL ADANI STEEL

ADANI REAL ESTATE