Adani Group plans to adorn $6b in next three years
Adani Group usually called Adani Enterprises Ltd. Is an Indian conglomerate company headquartered in Ahmedabad, Gujarat, India. It was founded by Gautam Adani who is the chairman of Adani Group. The core business of the group is Commodities Trading, edible oil Manufacturing, Mundra port operations and distribution of Natural Gas. The group is the largest importer and supplier of coal and owns mining and development rights for 130-million tonne coal mining in India.
Adani Group, having grown to be a Rs.29,580 crore ($6 billion) enterprise in two decades with global footprints, has embarked on a business restructuring exercise and will now focus on three clusters of its businesses-resources, logistics and energy. The company’s land bank in Ahmadabad, National Capital Region (NCR) and Mumbai is valued at over $1 billion, of which the Mumbai property alone is estimated at over $400 million. Most of the expansion will happen in its already existing countries such as Australia and Indonesia, in the next three years. In India, the group is eyeing large-scale investment in port facilities.
Resources comprising coal mines and trading will include oil and gas. Till 2015, it will continue to expand it coal mining business after which it could venture into iron ore mining. The Adani group is biding for British Gas’ domestic gas assets in Gujarat and it has several projects at the exploration stage in India and abroad. The project also involves construction of a 400-500 km railway track and redevelopment of a port.
The group plans to use coal sourced from Australia to run its own power stations and also for trading, primarily in India where a shortage of the dry fuel is hurting power generation. Demand for coal is rising in India as many new power stations are coal based, but complicated environmental clearances and problems in land acquisition are delaying domestic mining projects.
To stick to core activities, the group has decided to exit real estate and this business would be gradually divested to promoters’ families. The company aims to scale up its power generation capacity to 20,000 megawatt (mw) by 2020 from 4,000mw.
“We have begun coal mine exploration programme in the Galilee Basin in Queensland in Australia. We are now India’s largest power producer in the private sector. And we have developed a new brand to symbolize an integrated infrastructure business model,” Adani said.
