Symbiosis Institute of Management

Studies
Assignment of

Principles & Practices of Management

On
Anil Agarwal
Faculty –Dr.V.Sane
 Submitted
by-
PANKAJ GAHLAWAT

1 C – 31

PRN – 09020441142

Batch: 2009-2011

Anil Agarwal - Wheels of fortune

From the Patna lad, who left school at 15 to founder, chairman and majority
stakeholder of the $10 billion conglomerate Vedanta Resources, Agarwal
has travelled a long way.

Early life and background:

Name : Anil Agarwal

Gender : Male

Date of birth : Jul 02, 1954

City : Patna
State/Region : Bihar

Country : India
Age : 55 years
Children : 2
EducationalQualification: 10th (Matriculate)
Personal life:

Agarwal lives in London, Europe and Russia, and is married with two children.

Anil Agarwal was born in Patna, Bihar in 1954. His father was small businessman. His father was
into making aluminium conductors. Mr. Agarwal, who is a matriculate from Miller High School,
Patna. He went to the same school where Lalu Prasad Yadav also studied and he also claims to be
his great fan. He studied only till matriculation. In his initial years, Agarwal used to collect scrap
from most of the cable companies in other states and sell it in Mumbai. In 1975 he moved to
Mumbai on small business opportunity. Mr.Agarwal is strict vegetarian

One of the most thrilling moments of my life was the day I got my first cycle,” reminisces Anil
Agarwal, founder, chairman and, with his family, majority stakeholder of Vedanta Resources
Plc., the London Stock Exchange-listed mining and metals conglomerate with a market cap of
$10 billion (Rs39,400 crore).

The cycle was a gift from his father, a fabricator of grills and gates in small-town Patna in the
1960s. It meant the youngster could ride to his municipal school in style, instead of making the
daily 10km hike on foot. Much later, Agarwal graduated to a Vespa scooter, but never made it to
college.

His friend, Shishir Kumar and he often caught the overnight train from Patna to Varanasi, where
they would take in two shows, back-to-back, of the latest Bollywood releases. Sipping hot milk
from a matka at the station, they would then catch the train home.

A fellow cyclist and family friend, Kiran Gupta, became Agarwal’s bride when she was just 16
and he, 21. The couple still occasionally cycle in the summer sun in Hyde Park, just across from
their London Mayfair residence.

Kumar went on to become chief diabetologist at Bombay Hospital, Mumbai. And Agarwal came
to Mumbai as a scrap-metal dealer in 1976, going on to build an empire in copper, zinc,
aluminium and iron ore, recently venturing into power generation.

In November 1975, a 19-year-old young man was walking down Nariman Point in Mumbai. The
grand facade of the Oberoi Hotel impressed him so much that he wanted to stay there at least for
a day. But he was afraid to check in as he could not utter a word in English. So, he got hold of
somebody to help him check in the hotel. Once he checked in, the entrepreneur in him instantly
realized that the hotel could be a great address for his business. At Rs 200 a day, he stayed there
for almost three months, but made sure that his laundry and food were managed outside to keep
the cost to the minimum.

Now, 55-year-old Anil Agarwal, founder and chief executive officer of Vedanta Resources Plc,
does not make any fuss about eating at five-star places. The last three decades have changed him
dramatically. The scrap dealer of the 1970s is the uncrowned non-ferrous metal king of India with
At present:

A self-made Billionaire Anil Agarwal, founder and Chief Executive of the Vedanta Resources
Plc is the uncrowned king of non-ferrous metal king of India Anil Agarwal is an Indian
businessman and the founder and Executive Chairman of the UK-based Vedanta Resources
Corporation. These days, Agarwal travels by private plane, hopping from his mines in Zambia
and Tasmania to Agra and Mathura. There he slips back with ease into a rickshaw with his old
buddy Dr Kumar, for a darshan at the Krishna temple, riding through crowded lanes, savouring

their favourite hot milk drink.

While Agarwal’s earlier cycling routine has morphed largely into a stationary cycle workout at
the gym, holidays are different. Four winters ago, a group of old friends and the Agarwal clan
cycled and camped outdoors over four days from Jodhpur to Jaisalmer, with a replay in Bhutan
the following year. Ajay Anand, managing director, Faze Three, who was part of the group,
says: “It’s such fun to get away together. The landscape may have changed, but at heart Anil is
just the same.”

From the Patna lad who left school at 15 without knowing a word of English, to founder,
Vedanta Resources, Agarwal has travelled a long way. Vedanta Resources was the only Indian
group to go for a primary listing on the London Stock Exchange in 2003 and its subsidiary,
Sterlite Industries, was listed on NYSE in 2007 in the largest IPO in the US by an Indian
company.

News:

Sterlite's Anil Agarwal set to join Britain's elite

Sterlite Industries founder Anil Agarwal is set to become one of the wealthiest businessmen in
the United Kingdom when he lists his mining company 'Vedanta' on the London Stock
Exchange. Vedanta will be the holding company for Mumbai-based Sterlite Industries, be
domiciled in the UK and headquartered in London after the float. It will publish its pathfinder
prospectus on Thursday.

Agarwal founded Sterlite Industries in 1976. It has substantial assets in copper, zinc and
aluminium and had earnings of $300 million this year. It is estimated to be worth between $1.3
billion (770 million pounds) and $1.4 billion. The proposed $700 million fundraising will dilute
Agarwal's stake to about 60 per cent leaving him with a paper fortune of least 800 million
pounds, The Sunday Times reported. Its float will be the biggest listing in the city this year and
will be the first primary listing of an Indian firm in the London market.

Agarwal, who has bought a 20 million pound home in London's Mayfair, is applying to become
a British resident. If all his assets are taken into account, he could be listed among Britain's 20
richest individuals. His advisers have spent seven months 'tidying up' the company so it can
comply with UK's corporate-governance rules. This involved stopping Agarwal's companies
paying for his jet, homes and servants. In India, he enjoyed a big pay package, but this has been
trimmed and brought in line with remuneration at other mining companies listed in London.

A progressive dividend policy has been put in place, which is unusual for a mining company but
reflects the group's low production costs and strong cash flow generated by its Indian and
Australian assets.

Recent news:

Anil Agarwal, $2.8b (£1.6b): According to Forbes, Agarwal, 55,

converted a scrap-metal business into a global business empire. He
reportedly started off reselling scrap metal. Today, his company, Vedanta
Resources ($1.3 billion in sales), is a metals and mining major which
recently picked up the state-owned Bharat Aluminum and Hindustan Zinc.

Lately, Agarwal has realized that Vedanta has opened up too many
fronts in the metals business. That the cyclical nature of business and
global consolidation could be suicidal. So, his recent moves have been
aimed at derisking. For instance, Sesa Goa, which can produce 207 million tonnes of iron ore to
make 6 mt of iron and steel for 50 years, will make steel for the domestic market. Since he is not
an expert in steel, he is trying to rope in a partner that would ... be a customer for Sesa Goa’s iron
ore.

Anil is Executive Chairman of Vedanta Resources, a listed company on the London Stock
Exchange. He is ... Chairman and Director of several other global mining and resource
companies. Anil has over 30 years of experience as an entrepreneur and industrialist. His firm,
the $1.8 billion Vedanta Resources, is listed on the London Stock Exchange and Agarwal
operates from a swanky office in London’s exclusive Mayfair district.

A year ago, on a close friend’s advice, Agarwal set up the 10,000-acre Vedanta University in
Orissa, dedicated to his father Dwaraka Prasad Agarwal. The billion-dollar institute will have the
Bay of Bengal on one side and the Mahanandi River on the other — an ideal environment for
research scholars to work on his pet subjects like development of alternative fuels.

Agarwal met Prime Minister Manmohan Singh to present the vision of the university and
obtain his inputs as an eminent educationist. The prime minister endorsed the need for such a
university and was fully supportive of the endeavour, the Vedanta statement said. The main
reason for the Armenian government's conflict with Agarwal is the concealment of the real
reserves of gold by the gold plant. Although on February 2, 2005, the Economic Court ruled to
uphold a settlement agreement signed between the Ararat Gold Recovery Company (AGRC) and
the Environmental Supervision Department of the Ministry of Ecology, many problems still
remain unsolved. We remind you that on June 3, 2004 the Ministry of Ecology's State
Environmental Supervision Department published its findings which stated: "In an inspection
carried out at the Sotk mine, 865.2 kg of gold, 3.3 tons of silver, 0.86 tons of selenium, and 7.18
tons of tellurium were discovered. An inspection of the Meghradzor goldmine in the Kotayk
Marz revealed hidden resources consisting of 143.4 kg of gold, 2.78 tons of silver and 3.38 tons
of tellurium." According to the ministry, the concealment of the metals cost the Republic of
Armenia 900 million drams (approximately $1,800,000 USD) in lost revenues.

Agarwal wouldn’t reveal the conversation during the ride, but by the time they biked from the
world’s most famous centre of learning to the most important financial hub, Gilberton was a
convert. He joined Vedanta as non-executive chairman for £2 million a year and sold the $825-
million issue.

Internall, executives admit that Hindustan Zinc's performance gave Anil the confidence to
make a strong case of the benefits of privatization a part of the Vedanta story. And that's why the
Chanderiya smelter matters so much!

Anil Agarwal is an Indian businessman and the founder-director and executive chairman of the
UK-based Vedanta Resources corporation, which owns mining and metal resources in India,
Australia and Zambia.

Having ranked eighth in 2003, as of November 2006, he is the eleventh-richest Indian, with a
personal fortune of US$4.5 billion. According to Forbes Magazine, on 8 March 2007, his net
worth was $3.8 billion, making him the 230th-richest person in the world. He lives in London,
Europe & Russia, and is married, with two children.
Anil Agarwal as of 6th October 2007, his net worth was estimated at $12.7 billion, making him
the 6th richest Indian.

Anil Agarwal is in a piquant position. The refinery’s construction has already begun. While
Sterlite Industries declines to disclose precisely how much money has been spent separately on
the bauxite and refinery projects, Agarwal has spent at least 45 per cent of the project’s cost,
according to the environmentalists and confronts the prospect of the Supreme Court nixing the
project. Secondly, the project’s alumina, an intermediate product used to make aluminium, will
feed Balco’s expansion (half the alumina will go to the group’s captive aluminium plants and
about half would be sold to third parties, Agarwal recently told Vedanta shareholders).

Anil Agarwal is the founder director of UK-based Indian company Vedanta Resources
corporation, that owns mining and metal resources in India. He is the 11th richest Indian in the
world with a personal fortune of $4.5 billion. Agarwal has donated $1 billion to establish
Vedanta University in Orissa, India.

Anil Agarwal has written or edited numerous books and articles on the challenges of
sustainable development. He received several national and international awards for his work. He
educated a whole nation, from many of its top political leaders to its numerous rural activists,
about the importance of sustainable development. He created the Centre for Science and
Environment to carry out studies on environment and devlopment and to influence public policy.
The journal New Scientist said of CSE, “… for passion combined with forensic rigour nothing
touches the work of the Delhi-based Centre for Science and Environment, inspired by its founder
and director Anil Agarwal”.

It begins in 1974 when a young journalist of 27, Anil Agarwal discovered Chipko movement.
He noticed necessary correlation between environment & economic development which
prompted him to study multiple facets of environment. He went on to document India's
environment & wrote dozens of books. Soon he received title of Environment Guru by former
President K R Narayanan & was invited by various international forums to make presentations.

Anil Agarwal & Anr contented that their mark “Diet Whole Food” was different from the mark
‘Whole Food’ as adopted by Mrs. Ishi Khosla. It was further contented that in order to prove
passing off, the plaintiff had to establish prior use, distinctiveness and reputation of the mark.
They further, contented that the mark ‘Whole Food’ was an ordinary English word and ... was
descriptive of the character and quality of the goods. The expression Whole Foods is common to
the trade and used by various other businesses concerns. It was further contented that the mark
“Diet Whole Foods” was not identical or deceptively similar and hence no action could be
brought against them.

Anil Agarwal was firmly convinced that poor countries must shun the pathways to economic
development founded in the West, as this is an extremely toxic and costly model. He advocated
the idea of leapfrog models for poor countries to move into the forefront of environmental
management. He went on to demonstrate this through his campaign for clean air in the city of
New Delhi, where he put on course the switch from a highly polluting diesel-run public transport
system to one based on clean natural gas that brought about a visible improvement in New
Delhi’s air quality.

Agarwal's net worth has increased Rs 2,166 crore (rs 21.66 billion) to Rs 3,568 crore (Rs
35.68 billion) now. Bajaj's net worth leaped Rs 758 crore (Rs 7.58 billion) to Rs 2,859 crore (Rs
28.59 billion) between August and November 2003.

The official opening of the Agarwal Family Health Society Dental Clinic took place April 26,
2001. With a staff of four paid

KEY DEVELOPMENTS FOR VEDANTA RESOURCES PLC (VED)

Vedanta To Acquire Entire Stake In Balco, HZL By 2010

Anil Agarwal, the chairman of Vedanta Resources Plc, is certain of acquiring the remaining
stake of the government of India in Bharat Aluminum Company Limited (Balco) and Hindustan
Zinc Ltd. (HZL) by 2010, Business Standard reported. Vedanta Resources has about 51% stake
in Balco and 64% in HZL. Talking about copper prices, Agarwal said, “The prices will hover
around INR 5500 - INR 6000 per ton. It is very unlikely that the copper prices will return to the
level it was three years ago.”

Vedanta To Buy Government's Stake In Bharat Aluminium, Hindustan Zinc

In Three To Four Months
Naveen Agarwal, Vice-Chairman of Vedanta Resources Plc said that Vedanta hopes to buy out
the Indian government's minority equity in Bharat Aluminium Company Ltd. and Hindustan
Zinc Ltd. in the next three to four months. He added, “As far as our call options are concerned, in
case of Balco we are currently in arbitration, a couple of arbitration meetings have taken place,
and hopefully we believe that based on the arbitration proceedings, we should see a successful
closure of this in the next three to four months.” He said that he hopes that the company would
be able to acquire the minority stake of the government in Hindustan Zinc by the end of 2009.
He said, “We continue to be engaged with the government on this matter and we believe that in
view of the current environment on disinvestment, (the company) should see the closure during
the current year.”

Vedanta Resources plc Reports Earnings Results for the First Quarter of 2009
Vedanta Resources plc reported earnings results for the first quarter of 2009. For the quarter, the
company's revenue fell 32.8% to $1.36 billion. Earnings before interest, tax, depreciation and
amortization dropped 52% to $354.7 million. With lower commodity prices offsetting higher
volumes and lower production costs.

Learning from Anil Agarwal:

• He never defaulted in his life, be it to banks or business parties.

• He always honour his commitment.

• He is aggressive about his work.

• He diversified his business in different domains.

• He improved his shortcoming of not knowing English.

• He modified and improved himself and his company with latest knowledge and technical
skills according to the situations and market demand.