Presentation

on

Infrastructure & Power

The 2nd Annual Euromoney India Europe Investment Forum

July 2008
1
Safe Harbour

Except for the historical information contained herein, statements in this presentation and the

subsequent discussions, which include words or phrases such as “will”, “aim”, “will likely

result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,

“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”, “should”,

“potential”, “will pursue” and similar expressions or variations of such expressions may

constitute "forward-looking statements". These forward-looking statements involve a number

of risks, uncertainties and other factors that could cause actual results to differ materially

from those suggested by the forward-looking statements. These risks and uncertainties

include, but are not limited to our ability to successfully implement our strategy, our growth

and expansion plans, obtain regulatory approvals, our provisioning policies, technological

changes, investment and business income, cash flow projections, our exposure to market

risks as well as other risks. The Company does not undertake any obligation to update

forward-looking statements to reflect events or circumstances after the date thereof.

2
 Adani Group
2 Listed entities : Combined Market Cap of USD 9.3 Bn as of 26th June’ 08

AEL MPSEZL

Power Real Port SEZ

Generation Estate

Energy Agro ICD’s Logistics

Power : Thermal Power Plant - 9900 MW Port: Mundra Port & Dahej Port

Realty: Commercial + Residential – 38 Mn Sq. Ft. SEZ: Special Economic Zone - Mundra

Energy: Oil & Gas Exploration 2 On Shore Blocks (Thailand) &

2 On Shore Blocks (India) + City Gas Distribution + Mining ICD’s : Dry Port Network

Agro: Edible Oil Refinery, Grain Silos, CA Storage Logistics: Container Train Operations

3
Port Sector - Overview

4
 Indian Ports

ƒ Indian Ports growing at a CAGR of 11% for last 5 Years

ƒ 07-08 Total Cargo Handled ~ 704 mmt (Major: 519 mmt & Non

Major: 185 mmt) YoY – 11.9%

ƒ Only 2 privately owned fully operational land lord ports:

CAGR : 11%
Mundra & Pipavav – Cargo Handled 32.9 mmt (18%)
~55
ƒ Current Capacity 765 mmt – Operating at 92%
%
~45
ƒ Existing Capacity Shortfall of 150 mmt % CAGR: 9%

ƒ Planned Capacity addition 1575 mmt by FY 2012

Source: National Maritime Development Programme, Indian Ports Association, India infrastructure report 5
 Cargo at Indian Ports – 2008
I V
II
65 65
57 57 57 56 III IV

42
36 35
mn tonnes

29
21
15 12

I II III IV V VI VII VIII IX X XI XII XIII

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Source: Individual Port Web Sites 6

 Mundra Port – The Preferred Destination
MUNDRA

DAHEJ

Deept Draft Multimodal Hinterland Connectivity Diversified Cargo Profile

7
Mundra Port – Then and Now

Mundra Port – 1993 Mundra Port – 2008

8
Mundra Port Connectivity :

Not just Road

also

Rail, Air & …… Pipeline

9
Mundra Port: Rail Linkage

Advantages

ƒ Mundra – Delhi vis a vis Mumbai - Delhi

218 Km Distance Advantage

ƒ With Bhildi – Luni; Mundra vis a vis Mumbai

from Bhatinda – 438 Km

ƒ Bhildi – Luni Gauge Conversion expected to

be completed by Mar 09

ƒ Double stacking on trains from Mundra

10
 SPM - Crude and POL Pipe Line Network

Bhatinda Panipat
Delhi Single Point Mooring
Barmer Mathura Digboi
Bongaigaon Naharkatia
Chaksu Numaligarh
Sidhpur Guwahati
Barauni Katihar
Viramgam Bina
Mundra Navagan
Kandla Koyali
Ankleshwar Haldia
Bombay
High Mumbai Paradip

Heera IOCL Crude Pipe Line From Mundra to Panipat

HPCL Mundra - Delhi Product Pipe - Line
HPCL Proposed Crude Pipeline

IOCL’s earlier Crude Pipe Line From Vadinar to

Mathura – Panipat

Mundra Port emerging as the Port Hub for Oil and Gas Industry

11
Mundra Port: Air Connectivity

Private Commercial Airport – A Reality in Making

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 Facilities
BULK (DRY & LIQUID) – 8 Berths CONTAINER – 4 Berths CRUDE – 1 SPM

¾ Terminal – 1 & 2: 8 cargo berths & 1 barge berth - handling both dry & liquid bulk

¾ Mechanised System for cargo handling: Storage ~ 800,000 sq.mts. ; 342,000 Kilo Ltrs liquid storage

¾ Container Terminal – 1: Two berths Capacity 1.25 million TEUs p.a

¾ Container Terminal – 2: Two berths Capacity 1.25 million TEUs p.a; capable of handling Car Exports

¾ Single Point Mooring: Panipat refinery being expanded to 15MT from 12 MT by June 2009.

¾ Marine Operations: 8 Tugs for marine operations ;

¾ Railway facilities: For bulk & container cargo

¾ Storage Facility: Bulk – 8 Lac Sq. mtrs of Open Storage & 1.37 Lac Sq. mtrs Closed Warehouse & 81
Tanks Farms with capacity of 3.45 Lac Kilo Litres

Effective handling capacity of about 50 – 55 Mn Tons

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Highlights 2007-08
07- 08 C o al
C o nt a ine r 14 %
29% F e rt ilis e r
¾ Revenue – Rs. 846 Crs (Rs. 587 Crs)*; YoY : 44.1% 7%

M e t a ls &
¾ EBIDTA – Rs. 562 Crs (Rs. 319 Crs)*; YoY : 76.3% M ine ra l
12 %

¾ EBIDTA Margin – 66.4% (54.2%)* F o o dgra in

6%
Liquid
C rude O il
2%
¾ PBT – Rs 355 Crs (Rs 175 Crs)*; YoY : 103.0% 24% P OL
6%

¾ Tax provision – Rs. 149 Crs – Incl. Deferred Tax of Rs 130 Crs Total Volume: 28.8 mmt

(Rs. -12 Crs due to reversal of deferred tax)*

¾ PAT – Rs. 213 Crs (Rs.187 Crs)* ; YoY : 13.9%

¾ EPS (Post IPO on fully diluted basis) – Rs. 5.69 (Rs. 5.20)*

*Figures in brackets for the year 06-07 14

Power : Sector Overview

15
 Overview – Indian Power Sector & Availability of Coal Reserves

¾ India: 5th Largest Electricity Producer & 7th Largest Consumer – But Lowest Per Capita Consumption

¾ Total Generation Capacity : 1,41,500 MW (Central: 33% ; State 53% ; Private 14%)

¾ Consumers : Industry 35.6%; Domestic 25.8% ; Agriculture 22.4%

¾ Transmission & Distribution Loss as of 2005-06 : 34.54%

¾ Coal continues to play important role in the energy mix for India

¾ Around 68% of the capacity addition in the XI Plan to be through Coal as a primary fuel

¾ India enjoys world’s third largest coal reserves ; ~ 287 Bn Tonnes as of Jan 07

Source: CEA, Power Scenario at a Glance, Mar. 08 & www.eia.doe.gov 16

 Power – Potential on Hand

¾ As per planning commission additional capacity required 85 – 98 GW by 2012 & about 290 – 353 GW by

2022 Plan to Replicate in next 5 Yrs more than what has been accomplished in last 25 Years

¾ Average capacity addition target achieved for last 10 Five Year Plans ~ 66%

Investments Required:

¾ USD 270 Bn Investment Required for achieving the target set for 2012 (Power for All):

ƒ Generation : USD 160 Bn

ƒ Transmission & Distribution : USD 100 Bn

ƒ Renovation & Modernization : USD 10 Bn

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 Indian Power Sector : Under - Served India China

Installed Capacity 140 GW 622 GW

Lowest Per Capita Consumption Population 1.134 Bn 1.313 Bn

18408

14240
Capacity added in last 7 Yrs 30 GW 303 GW
8459 8231
7442 6756 6425

2340
1684 Target Per Capita Consumption
618
of 1000 Kwh by 2012
Canada United Japan France Germany UK Russia Brazil China India
States

14% 13%
Increasing Shortage Over Yrs 12%
12%

10% 9%
8%
8%

6%

4%

2%

0%
End 9th Plan (1997-2002) End 10th Plan (2002 - 2007)

Energy Shortage Peak Shortage 18

 Adani Group Forays into Power
9,900 MW by 2012 – 13 : Integrated in Power Sector Value Chain

Disclaimer Clause:
Adani Power Limited is proposing subject to receipt of requisite approvals, market conditions and certain other consideration, a public issue of its equity shares and has filed a Draft Red
Herring Prospectus with the Securities and Exchange Board of India. A copy of the Draft Red Herring Prospectus is available on the website of Adani Power Limited at
www.adanipower.com, on the website of Securities and Exchange Board of India at www.sebi.gov.in and the website of Global Co-Ordinator and Book Running Lead Manager at
www.dspml.com and the respective websites of Book Running Lead Managers at www.enam.com, www.sbicaps.com, www.icicisecurities.com, www.sski.co.in, www.jmfinancial.in,
www.kotak.com and www.morganstanley.com. This presentation is not an offer of equity shares or any other security of Adani Power Ltd., for sale in the United States. Any equity
shares or other security of Adani Power Limited may not be offered or sold in the United States absent registration under applicable U.S. Securities laws or an exemption from
registration requirements under such laws. The proposed offering of equity shares has not been and will not be registered under United States Securities Act of 1933, as amended (the
“Act”), and accordingly any offer or sale of these securities may be made only in reliance on an available exemption from, or in a transaction not subject to, the registration requirements
of the Act.
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 Rationale For Entry into Thermal Power Generation

Power
Ship Generation Transmission
Coal Mining Coal Trading Owning Power Trading

¾Mundra:
¾Exclusive Mining ¾One of the largest ¾2 capesize Thermal Power Plants: ¾Third largest
ƒ 413 Kms 400 KV DC
Contracts in trader of coal in India vessels power trader in
¾ 4620 MW : Mundra
¾Tiroda:
Importing 7.24 mMT ordered India for FY 07,
Indonesia
¾ 1980 MW : Tiroda ƒ 225 Kms 400 KV DC
during FY 2007 to be 1.84 Bn Units
¾Mining Blocks - ƒ 140 Kms 400 KV DC
delivered by ¾1980 MW : Dahej Traded
in India ¾Dahej:
2010 ¾ 1320 MW : Kawai
ƒ 75 Kms 220 KV DC
ƒ 275 Kms 400 KV DC
¾Kawai:
ƒ 100 Kms 400 KV DC
ƒ 200 Kms 400 KV DC

20
Projects – An Overview

1320 MW
Kawai
4620 MW Mundra

Dahej
1980 MW
Tiroda 1980 MW

21
 Key Project Components - Status

Location Water Fuel Supply Off take

Land

Mundra PPA done for 2000 MW with

(4620 MW) Agreement signed
Land in Possession Sea Water with AEL Gujarat State Utility
Ph I: 660 MW &
Ph II: 660 MW (Backed by Mining
Ph III: 1320 MW Submitted bid to Haryana State
Ph IV: 1980 MW Contracts)
Utility : 1425 MW
Tiroda Plant Land in Possession River Water Coal Mine allocated Submitted bid to Maharashtra
(1980 MW) at Lohara West &
+
Extension for 1000 State Utility : 1420 MW
Applied for additional Land
MW
Dahej Sea Water & River Agreement signed
(1980 MW) Applied For Long Term PPA’s & Merchant
Water with AEL
(Backed by Mining Sales to be arranged.
Contracts)
Kawai River Water MOU signed with
Applied For & MOU with
(1320 MW)
AEL for Govt. Support Rajasthan Govt.*

*In terms of the MOU the Rajasthan Government will use best possible efforts to facilitate the provision of coal.
22
Projects Funding Arrangement

Particulars Rs Crs
Total Project Cost 43,139
Debt 34,504
Debt Tied Up 27,316
Balance Debt Required 7,188
Equity 8,635
Equity Brought In 1,800
Balance Equity Required 6,835

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Thank You

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