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Adani

Enterprises
• Company Introduction
• Vision and Value statements
• AEL Strategy
• Organizational structure
Contents • Analysis of the company
• Generic and business strategy analysis
• Financial analysis
• Future of the company
• Recommendations
Introduction

 AEL was founded on 2 March 1993


by Gautam Adani
 Headquartered in Ahmedabad
 The overall goal of AEL is to serve as an in-
house incubator for Adani Group's new
enterprises until they become self-
sustaining.  AEL focuses on integrated group
resource management, energy trading,
and independent natural resource
firms.
 Adani Enterprises Limited is India's
largest publicly traded business
incubator.
Introduction

Integrated
Water Mining Services Edible oil and foods
Resource Mangement

Solar manufacturing Agro products Airports Data centres

Road, metro and rail Defence and aerospace

*As business divisions, AEL directly holds IRM and Mining Services.
 Vision Statement and Values
Vision Statement
"To be a world class leader in businesses that enrich lives and contribute to nations in building
infrastructure through sustainable value creation."

To be an internationally preferred business associate — an entrepreneurial corporation that cares about its workers,
society, the environment, and stakeholder value.
Entrepreneurial - To think creatively about all parts of our business, including technology and commercial procedures.
Preferred Business Associate - To aim for maximum value for all of their associates via continuous innovation and the
implementation of universal best practices.
Responsible Concern — To align all their activities and reactions with the global environment, and to actively
endeavor to minimize the environmental load.

Values
"Commitment, Courage and Trust."

AEL is committed to embracing new ideas and enterprises. And it must have faith in its employees and other
stakeholders. Furthermore, it must keep its commitments and adhere to strong business standards. in order for them to
stay up with their vision
Organizational Structure
AEL and its
incubation
portfolio

2. Transports and
1. Resources 3. Utility 4. Strategic
Logistics

Mining Services IRM Airports Water Solar Mfg

Adani Global Adani Global Pte Adani Wilmar


Road Data Centre
Fze Ltd Ltd.

Carmichael mine Rail/Metro Defence

(Every business has its own organizational structure, complete with CEOs and CFOs.)
Organizational Structure 
General View

Managing Chairman of the Director Director Director


Director (Pranav Director (V.
Director (Rajesh board (Gautam (Vijaylaxmi (Narendra (Hemant
Adani) Subramanian)
Adani) Adani) Joshi) Mairpady) Nerurkar)

Managing
Director (Rajesh
Adani)

Mining & Technology Coal and Mining,


Communication CEO Projects (Jiwan Technical Services
Integrated Coal IT (Adul Midha) (Sanjay Indonesia (Vinay HR (Rajiv Arora)
(Roy Paul) (Sanjay Pugalia) Mukherjee) (Kumar Singh)
(Amit Gautam) Chakraborty) Prakash)

Mining &
Integrated Coal
(Pukhraj Sethiya)
 AEL Strategy
Environmental Social Governance
• Lessen carbon footprint • A huge workforce Code and values
• Biodiversity should be • Concentrate on • Code of Conduct
protected knowledge, experience • Whistle blower policy
• Usage of 5R’s (replace, re- and retention • Anti-bribery and anti-slavery policy
use, renewable, recycle and • Investment in training • Remuneration policy
reduce) • Establish a space of • ESG commitment 
• Keep up with highest passion • Employee care and fairness
environmental rating • Serving high-profile • Prevention of Sexual Harassment (POSH)
• Continuous auditing and clients • Code of Practices for Fair Disclosure
investments in • "Rs 15 crore expended • Code of Internal Procedures and Conduct for
environmental compliance  on CSR, FY 2020-21" Insider Trading
• Describe environment Structure and oversight
performance openly • Board of Directors with Significant
Independence 
"At the heart of our • Policy on Corporate Responsibility
incubation effectiveness lies a • Audit Committee is completely independent
robust ESG focus directed to • Policy on Risk Management
enhance value for all Transparency and reporting
stakeholders" - Annual Report • Policy on material event
FY21 • Transactions involving related parties
• Quarterly web-based self-declarations
Porter's Five Forces
1. Competition among existing players in the coal industry - When the competition is
intense it becomes difficult for existing players like Adani Enterprises to gain continued
profits.
2. Coal negotiating power suppliers - If suppliers have a strong negotiating power they will
issue higher prices to Adani Enterprises. It will impact Adani Enterprises' ability to maintain
excessive profits in the coal industry.
3. Newcomers to the coal industry - if there is a major threat to new entrants to the
coal industry current players will be willing to make lower incomes to reduce threats from
new players.
4. The threat of change in products and services in the coal sector - If the threat of
exchange is high then Adani Enterprises should continue to invest in R&D or risk losing the
disruptors in the industry.
5. Consumer negotiation capacity of the Adani Enterprises and Energy sector -
When consumers have a strong negotiating power they tend to lower the price thus reducing
Adani Enterprises' ability to achieve continuous profits.
Strengths Weakness
1. Market Leadership - AEL have a sturdy marketplace 1. Declining market percentage of AEL with growing revenues -
management position within the Coal industry. It has helped the the Coal industry is growing faster than the organization. In this kind
organization to hastily scale new products successes. of situation, it has to cautiously examine the diverse developments in
2. Presence - AEL have a great supplier community and the power region and figure out what it needs to do to force future
associates network that not only help in turning efficient services boom.
to the clients but additionally help in dealing with competitive 2. Business model of AEL can be easily imitated by means of the
challenges in the Coal industry. competition inside the company. To triumph over these challenges,
3. Acknowledgement - AEL products have sturdy emblem AEL has to build a platform version that can combine suppliers,
popularity inside the Coal industry. This has enabled the vendors, and end-users.
corporation to fee a top rate compare to its competition in the
Coal industry.

Opportunities SWOT Threats


1. Fast growth of economic system - As the US economic 1. Converting Demographics - as the baby boomers are retiring and
system is enhancing quicker than some other evolved financial the new generation is finding it tough to replace their shopping
system, it will offer AEL an opportunity to amplify into the energy. This may lead to higher income in the brief run for AEL how
American market. AEL has already got realize-a way to operate ever lowering margins over the long term as the younger generation i
in the competitive US marketplace. s less loyal and greater open to experimentation.
2, Elevated technological innovations and advances are 2. Developing technological know-how of nearby players in the
improving commercial productiveness, permitting suppliers to export marketplace - considered one of the most important danger
manufacture giant array of products and services. This may of tie-up with the nearby gamers within the export marketplace for
assist AEL to significantly project into adjacent products. Adani firms is chance of losing IPR. The IPR isn't very sturdy in
3. Increasing government policies make it difficult for rising markets like China.
unorganized players to perform within the Coal enterprise. It
Financial Analysis

Because of the Covid


19, the volume of IRM
(Integrated Resources
Management) was
reduced by 20%, Despite a drop in
resulting in a fall in income, EBIDTA
revenues. increased. It was due to
the expansion of solar
The revenue loss was manufacturing segment. 
offset by gains in solar
manufacturing and other
industries.
Financial Analysis

₹150 (November 1994) 25% CAGR ₹75000 (March


2020)
Financial Analysis
Financial Analysis
Financial Analysis
Stock Market Connect

AEL's tremendous performance and wealth generation for stakeholders has


attracted numerous investors, including G.O.S.I, TATA Mutual Fund, Manulife
AM, and others. 

AEL's market performance not only trailed other indices, but it also delivered a 9x
times return to its shareholders when compared to the Nifty 50. 
Generic Analysis

AEL and its subsidiaries mostly supply goods and services. Since its foundation in 1994, when it was
listed, AEL has also served as an incubator, focusing on the establishment of new segments in the
energy and infrastructure sectors. Following then, several commercial areas such as ports and special
economic zones, power, and so on were added to the list. 

Using the same strategy as AEL, the corporation has separated the Green Energy and Gas divisions as
well. That is to say, AEL has focused heavily on one essential element, namely the implementation of
their incubation approach, which has directly resulted in increased momentum of various segments over
time and exponential growth. 
Generic Analysis
AEL's Airports business division began
with six airports in its portfolio. Took
Started a data centre collaboration
over and built and administered the
with EdgeConneX, AdaniConneX, to
airports of Ahmedabad, Lucknow, and
construct a gigantic data centre
Mangalore. And, as a result, they
capacity in the following decade. 
received "Airport Health Accreditation"
for safe travel.

AEL understands the consumer mindset PLR Systems is majorly owned by


and effectively uses its network, AEL. And it is currently the only firm
resulting in the formation of a consumer that is equipped with small arm
base of 200 million or more in its manufacturing know-how. 
Airport portfolio. 
AEL provided installation
recommendations for solar
pumps in states such as MP, UP,
and Rajasthan. 
Future of AEL
AEL's primary emphasis, which is to reinforce share-holder wealth generation, will be maintained
through cutting costs and boosting margins while investing in utility and infrastructure divisions that
can stand alone as independent companies. 
AEL will continue to expand its operations with an emphasis on national development in the future. Its
goal will be to continue volume growth in its core operations while producing strong results in its
strategic areas. As in the case of 'Make in India,' where AEL is truly committed and has accomplished a
key milestone PLR systems (defense).
AEL is optimistic on the Data Centre sector as data consumption in India continues to rise inexorably
as internet-based business and personal habits become more prevalent. It aspires to make India a
regional hub for data centres.

"Adani Enterprises has seeded today’s


space with related businesses that
will be increasingly relevant
in tomorrow’s world." - Annual Report
FY21
Recommendations And
Strategic Decisions
AEL must continue to follow the same procedure as an incubator, which is to locate new promising
businesses and enhance their performance. 

AEL's 'natural resource' business segment, which has succeeded well, has to be heavily reinforced in
order for the company to maintain its market leadership. 

The Indian frozen foods industry is worth INR 42.7 billion in 2021 and is expected to grow to INR 93.8
billion by 2025, providing an opportunity for Adani Wilmar, which is incubated under AEL, to develop
its product range. 
The telecom sector in India is on the verge of becoming a duopoly; Adani Enterprise may enter the
market by incubating another company category, but this would need significant investment planning
and potential. 
•https://www.adanienterprises.com/-/media/Proj
ect/Enterprises/Investors/corporate-governance/
Others-Dynamic/Adani-Enterprises-Presentatio
n.pdf
•https://www.adanienterprises.com/about-us
References •https://www.theofficialboard.com/org-chart/ada
ni-enterprises-3
#
•https://en.wikipedia.org/wiki/Adani_Enterprise
s
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