STUDY ON THE ADANI GROUP

Subject: BAL9.3 Entrepreneurship Development

Academic Year: 2023-2024

Semester: 5th Year - 9th Semester

Submitted by:

Kartik Solanki

UID: UG2019-56

Under the Supervision of:

Dr. Sushant Kishore Waghmare

(Assistant Professor of Management)

July – 2023

MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR

1. Founding Year of the Company
The Adani Group is a conglomerate headquartered in India that operates in various industries
such as energy, agribusiness, resources, logistics, and real estate. They are known for their
large-scale infrastructure projects, including developing ports, airports, and power plants.

It is a highly diversified company interested in ports, agribusiness, logistics, power, solar and
renewable energy. The group was founded by Gautam Adani in 1988 and has since grown to
become one of the largest conglomerates in India. Adani Group’s significant projects include
the Mundra Port, the largest private port in India, and the Adani Power Ltd, the largest
private thermal power producer in India.

2. Founders of the company

Gautam Shantilal Adani (born 24 June 1962) is an Indian billionaire industrialist who is the
founder and chairman of Adani Group.

3. Qualifications of the Founder

The richest person in India did not even complete his degree. He completed his schooling
from Sheth Chimanlal Nagindas Vidyalaya in Gujarat. Later, he joined a bachelor’s degree in
commerce. However, he discontinued it after the second year as he was keen on business.
After discontinuing his studies, he started his career as a diamond sorter for Mahendra
Brothers in Mumbai.

4. Board of Directors
- Gautam Adani (Chairman)
- Rajesh Adani (Managing Director)
- Pranav Adani (Director)
- Vinay Prakash (Director)
- Hemant Nerurkar (Independent and Non-Executive Director)
- V. Subramanian (Independent and Non-Executive Director)
- Vijaylaxmi Joshi (Independent and Non-Executive Director)
- Narendra Mairpady (Independent and Non-Executive Director)
- Dr. Omkar Goswami (Independent and Non-Executive Director)
5. Adani Group Target Sector
The Adani Group is a diversified conglomerate with interests in various sectors, including
infrastructure, logistics, energy, ports, and agribusiness. Its primary needs and objectives may
vary depending on the specific business segment. Generally, the company aims to drive

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economic growth, develop infrastructure, facilitate trade and logistics, and contribute to
India’s development.

The primary needs that the Adani Group is trying to satisfy can be summarized as follows:

Infrastructure Development: The Adani Group is actively involved in the development and
management of critical infrastructure projects such as ports, airports, roads, and railways. By
investing in these projects, the group aims to facilitate economic growth and improve
transportation and connectivity across India.

Energy Generation and Distribution: The group has a significant presence in the energy
sector, including coal-fired, solar, wind, and thermal power plants. By providing a reliable
energy supply, Adani contributes to meeting the increasing energy demands of the country
and promoting sustainable energy sources.

Logistics and Trade Facilitation: Adani’s involvement in ports and logistics enables
efficient movement of goods, facilitating international trade and boosting India’s position in
global commerce.

Agribusiness and Food Security: The Adani Group is engaged in agribusiness, including
the trading and processing of agricultural commodities. By participating in this sector, the
group contributes to food security and supports farmers and rural communities.

Renewable Energy Initiatives: As part of its commitment to sustainable development,

Adani has been investing in renewable energy projects like solar and wind power to reduce
the carbon footprint and promote clean energy solutions.

Employment Generation: Through its diverse businesses, the Adani Group creates job
opportunities and contributes to the socioeconomic development of the regions where its
operations are located.

Economic Growth and Nation-Building: Overall, the Adani Group aims to contribute to
India’s economic growth and development by investing in strategic sectors that are vital for
the country’s progress.

It is important to note that these needs may evolve over time, and the group’s focus might
expand into new areas or industries based on market opportunities and changing national
priorities.

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6. Primary Needs Addressed by Adani Group

7. New Avenues Explored by Adani Group

8. Recent news around Adani Group

9. Adani Group’s Competitors

he main competitors of the Adani Group varied depending on the specific industry and
business segment. The Adani Group is a diversified conglomerate with interests in various
sectors, so its competitors differ for each industry. Here are some of the key competitors in
some of the major sectors in which Adani operates:

Ports and Logistics:

- PSA International (Port of Singapore Authority)

- DP World
- APM Terminals (part of A.P. Moller-Maersk Group)
- JM Baxi & Co.
- Essar Ports
Energy and Power:

- Tata Power
- Reliance Industries Limited (RIL)
- NTPC Limited
- Essar Power
- JSW Energy
- Agribusiness and Trading:
- Cargill
- Louis Dreyfus Company (LDC)
- Glencore Agriculture
- Olam International
Renewable Energy:

- Tata Power Renewable Energy Limited

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- Greenko Energy Holdings
- ReNew Power
- Suzlon Energy
Infrastructure Development:

- Larsen & Toubro (L&T)

- GMR Infrastructure
- IRB Infrastructure Developers
- Reliance Infrastructure
10. Adani Group’s Sources of funding
Some major sources of funding for the Adani Group include:

Equity Capital: The Adani Group raises funds through the issuance of shares to investors,
both through initial public offerings (IPOs) and private placements. Equity capital involves
selling ownership stakes in the company in exchange for investment.

Debt Financing: Like many corporations, the Adani Group takes loans from banks and
financial institutions to finance its projects and operations. Debt financing allows them to
access significant amounts of capital and repay it over time with interest.

International Bonds: The Adani Group has issued bonds in international markets to raise
funds. These bonds are debt securities that investors purchase, and the company commits to
pay interest and return the principal amount at maturity.

Bank Loans: Apart from debt financing, the Adani Group also secures loans from domestic
and international banks to finance specific projects or to meet its working capital
requirements.

Infrastructure Investment Trusts (InvITs): InvITs are investment vehicles that allow
infrastructure developers to monetize their completed projects. Adani Group might have
raised funds through InvITs by selling completed infrastructure assets to investors.

Public-Private Partnerships (PPPs): In some cases, the Adani Group participates in PPPs
with government bodies for infrastructure projects. These partnerships involve sharing the
funding responsibilities between the private sector and the government.

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Internal Accruals: Successful businesses generate profits, and these profits can be reinvested
into the company for further expansion and development. The Adani Group might use its
internal accruals to fund various projects.

Asset Sales: At times, the Adani Group may sell non-core assets or businesses to raise funds
for strategic investments or to reduce debt.

It’s essential to recognize that the Adani Group has diverse businesses, including ports,
logistics, power generation, renewable energy, mining, and more. Consequently, the sources
of funding may vary based on the specific requirements of each business segment.

11. Current Valuation of the Group

The eight companies in the Adani Group have a combined value of ₹9.5 lakh crore and
constitute 4.5 per cent of the total value of 500 top companies.

12. Potential for Growth

Adani Group is poised for significant growth due to its diversified businesses and ambitious
expansion plans. It’s important to note that the potential for growth can be influenced by
various factors. In assessing the potential for growth of the Adani Group, following factors
can be considered:

Diversification: The Adani Group has a diverse portfolio of businesses ranging from ports,
logistics, power generation, and renewable energy to mining and agribusiness. This
diversification allows them to capitalize on opportunities in different sectors and mitigate
risks associated with dependence on a single industry.

Infrastructure Development: India’s continued focus on infrastructure development

presents growth opportunities for the Adani Group. They have been actively involved in
various large-scale infrastructure projects, including ports, airports, and roads.

Renewable Energy: The Adani Group has been rapidly expanding its renewable energy
portfolio, including solar and wind power projects. Given the increasing global emphasis on
clean energy, this sector could drive substantial growth for the group.

International Expansion: The Adani Group has been exploring international opportunities,
particularly in countries with growing economies and infrastructure needs. Expanding their
operations abroad could open up new revenue streams and markets.

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Government Policies: The group’s growth potential could be influenced by favourable
government policies, both in India and other countries where they operate. Supportive
policies can facilitate business expansion and investment.

Technological Advancements: Embracing and investing in new technologies can enhance

the efficiency and competitiveness of the Adani Group's businesses, leading to further
growth.

Global Commodity Demand: As a significant player in the mining sector, the Adani
Group’s growth potential might be influenced by global demand and prices for commodities
such as coal.

It’s important to recognize that the potential for growth depends on various external factors,
including the economic environment, regulatory landscape, and geopolitical developments.
Additionally, the Adani Group’s ability to manage risks and execute its expansion plans will
also play a crucial role in determining its growth trajectory.