The Directors have pleasure in presenting the 19th Annual Report of the Company together with its Audited Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date.
FINANCIAL RESULTS
Key aspects of your Companys consolidated financial performance andstandalone financial results for the year 2010-11 are tabulated below:
(Rs. in Crores)
Consolidated Results Standalone Results
Particulars 2010-11 2009-10 2010-11 2009-10
Sales and Other Income 26,826.74 26,019.48 3,454.51 11,756.09
Total Expenditure other than Finance Charges and Depreciation 22,312.27 24,200.82 3,053.22 11,010.24
Gross Profit before Depreciation, Finance charges and Tax 4,514.47 1,818.66 401.29 745.85
Tax on Dividend (including surcharge) 20.40 8.281 20.39 8.27
Dividend Cancelled Due to Cancellation of Cross Holding In Amalgamated Entity (5.56) - (5.56) -
Interim Dividend on Equity Shares 102.70 - - -
Transfer to General Reserve 150.40 55.25 50.00 50.00
Transfer to Debenture Redemption Reserve 110.24 - - -
Transfer to Capital Reserve 1.71 - - -
Balance carried to BalanceSheet 3,917.40 1,942.58 1,073.20 990.29
Total Appropriation 4,418.67 2,055.97 1,259.40 1,098.36
PERFORMANCE OF YOUR COMPANY
Your Company continued its focus on consolidation, reducing its overalldebt and posted yet another year of impressive performance with ahealthy topline growth and high earnings, reflecting robustness of itscorporate strategy of creating multiple drivers of growth over that ofprevious year as under:
- Consolidated Financial Results :
Your Companys total consolidated revenue for the year under reviewincreased to t 26,826.74 Crores from t 26,019.48 Crores in the previousyear. The profits after tax for the year under review increased to t2,476.09 Crores as against t 919.30 Crores in the previous yearregistering a growth of 170%. Growth in your Companys consolidated networth is 190% signifying robustness of your Companys emphasis onconsolidation and building shareholders value.
The Audited Consolidated Financial Statements, based on the financialstatements received from subsidiaries and associates, as approved bytheir respective Board of Directors have been prepared in accordancewith Accounting Standard (AS) 21 - Consolidated Financial Statements,Accounting Standard (AS) 23 - Accounting for Investments in Associatesand Accounting Standard (AS) 27 - Financial Reporting of interest inJoint Ventures in consolidated financial statement notified underSection 211(3C) of the Companies Act, 1956 read with the Companies(Accounting Standards) Rules, 2006 (as amended). The said consolidatedfinancial statements form part of this Annual Report and Accounts.
- Standalone financial Results :
On standalone basis, your Company registered gross revenue of Rs.3,454.51 Crores as compared to Rs. 11,756.09 Crores in the previous year.The net profit after tax stood at Rs. 269.11 Crores as against Rs. 254.41Crores in the previous year.
DIVIDEND ON EQUITY SHARES
Your Board of Directors recommended a dividend of 100% (Rs. 1 each perequity share of Rs. 1 each) to be appropriated from the profits of theyear 2010-11 subject to the approval of the shareholders at the ensuingAnnual General Meeting. (Previous year 100% i.e. Rs. 1 each per equityshare of Rs. 1 each)
SIGNIFICANT DEVELOPMENTS:
- Amalgamation
During the financial year 2010-11, certain promoter entities of M/sMundra Port & Special Economic Zone Ltd (MPSEZ) i.e AdaniInfrastructure Services Private Limited, Advance Tradex PrivateLimited, Adani Tradelinks Private Limited, Pride Trade and InvestmentPrivate Limited, Mauritius, Trident Trade and Investment PrivateLimited, Mauritius, Radiant Trade and Investment Private Limited,Mauritius and Ventura Trade and Investment Private Limited, Mauritius(hereinafter collectively referred to as "Transferor Companies") havebeen merged with your Company, pursuant to sanction of Scheme ofAmalgamation by the Honble High Court of Gujarat vide its order dated12th August, 2010.
The certified copy of the said order has been filed with the Registrarof Companies, Gujarat. As a result, the said scheme of amalgamation hasbecome effective from the appointed date (i.e. 1st April, 2010 in caseof all transferor companies other than Advance Tradex Private Limitedand 20th April, 2010 in case of Advance Tradex Private Limited). Sincethe scheme of Amalgamation has become effective, M/s MPSEZ has become asubsidiary of your Company with 77.49% shareholding by the Company.
- QIP Issue
In accordance with the approval accorded by the members by way ofpostal ballot process on 16th June, 2010, your Company has successfullyraised Rs. 4,000 Crores through an issue of 7,46,05,987 Equity Shares ofRs. 1 each issued at a price of Rs. 536.15/- per share (including premiumof Rs. 535.15/- per share) under Qualified Institutions Placement (QIP).These shares have been listed on Bombay Stock Exchange Limited (BSE)and National Stock Exchange of India Limited (NSE).
CHANGES IN SHARE CAPITAL
The paid-up share capital of your Company on 1st April, 2010 was at Rs.49,80,26,550/- divided 49,80,26,550 Equity Shares of Rs. 1 each. Add :During the year under report, further shares were issued and allottedas per following details:
- 3,11,26,659 Equity Shares of Rs. 1 each to the members of the Companyon Rights basis.
- 3,11,51,800 Equity Shares of Rs. 1 each upon conversion of 21,484Foreign Currency Convertible Bonds (FCCBs) of USD 10,000 as per
the terms of issuance of FCCBs. 7,46,05,987 Equity Shares of Rs. 1 eachunder Qualified Institutions Placement (QIP) issues.
- 46,48,99,087* Equity Shares of Rs. 1 each to the Shareholders of AdaniInfrastructure Services Private Limited, Advance Tradex
Private Limited, Adani Tradelinks Private Limited, Pride Trade andInvestment Private Limited, Mauritius, Trident Trade and InvestmentPrivate Limited, Mauritius, Radiant Trade and Investment PrivateLimited, Mauritius and Ventura Trade and Investment Private Limited,Mauritius pursuant to sanction of Scheme of Amalgamation by the HonbleHigh Court of Gujarat vide its order dated 12th August, 2010. (*Aftercancellation of 5,56,05,382 Equity Shares of Rs. 1 each on account ofcross holding.)
Thus, the issued and paid up share capital of your Company stoodincreased to Rs. 1,099,810,083/- divided into 1,099,810,083 Equity Sharesof Rs. 1 each as on 31st March, 2011 from Rs. 49,80,26,550/- divided49,80,26,550 Equity Shares of Rs. 1 each as on 31st March, 2010.
During the year under review, the Authorised Share Capital of yourCompany was increased to 325,32,00,000/- (Rupees Three Hundred TwentyFive Crores and Thirty Two Lacs Only) divided into 320,82,00,000 (ThreeHundred Twenty Crores and Eighty Two Lacs) Equity Shares of Rs. 1 (RupeeOne only) each and 45,00,000 (Forty Five Lacs) Preference Shares of Rs.10/- (Rupees Ten Only) each pursuant to the Amalgamation order passedby the Honble High Court of Gujarat dated 12th August, 2010.
FIXED DEPOSITS
Your Company does not accept or hold any fixed deposits within themeaning of Section 58A of the Companies Act, 1956 and the rules madethere under and as such, no amount on account of principal or intereston fixed deposits was outstanding as on date of the Balance Sheet.
CORPORATE GOVERNANCE
As required by Clause 49 of the listing agreement, a separate report onCorporate Governance together with a certificate of Statutory Auditorsof the Company forms part of this report as per Annexure IV.
FORMATION OF VARIOUS COMMITTEES
Details of various committees constituted by the Board of Directors asper the provisions of Clause 49 of the Listing Agreement and CompaniesAct, 1956 are given in the Corporate Governance Report annexed andforming part of this report.
DIRECTORS
- Appointment of Mr. S.K. Tuteja as a Director
During the year under review, Mr. S.K. Tuteja was appointed as anAdditional Director by the Board at its meeting held on 12th February,2011. In terms of Section 260 of the Companies Act, 1956, he holdsoffice upto the ensuing Annual General Meeting. The Company hasreceived requisite notice in writing from a member under Section 257 ofthe Companies Act, 1956 proposing his appointment as Director of theCompany liable to retire by rotation.
- Revision in remuneration of Executive Director
On review of the duties and responsibilities assigned to Mr. Devang S.Desai, Executive Director & CFO of the Company and looking to theincrease in the complexities and nature of activities of the Company,the Board of Directors of your Company on recommendation ofremuneration committee have subject to the approval of membersincreased the remuneration payable to him as detailed in theExplanatory Statement which is forming part of the Notice of theensuing Annual General Meeting.
- Retirement by Rotation
Pursuant to the requirements of the Companies Act, 1956 and Articles ofAssociation of the Company, Dr. A.C. Shah, Mr. Vasant S. Adani and Mr.Anil Ahuja, Directors of the Company retire by rotation at the ensuingAnnual General Meeting and being eligible, offer themselves forre-appointment.
Brief resume of the Directors proposed to be appointed / re-appointed,nature of their expertise and other details as stipulated under Clause49 of the Listing agreement are provided in the Notice for conveningthe Annual General Meeting forming part of this Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the CompaniesAct, 1956, with respect to Directors Responsibility Statement, theBoard of Directors of the Company hereby confirm that:
1. In preparation of the annual accounts for the financial year ended31st March, 2011, the applicable accounting standards have beenfollowed;
2. The Board of Directors of the Company have selected appropriate
accounting policies and applied them consistently and made judgmentsand estimates that are reasonable and prudent, so as to give a true andfair view of the state of affairs of the Company as at 31st March, 2011and of the profit and cash flow of the Company for the year ended onthat date;
3. Proper and sufficient care has been taken for the maintenance ofadequate accounting records in accordance with the provisions of theCompanies Act, 1956 for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities;
4. The annual accounts have been prepared on a going concern basis.
SUBSIDIARY COMPANIES
Your Company is a global corporation having diversified operationsacross the globe through its 89 subsidiaries. During the year underreview, all subsidiary Companies of your Company continued tocontribute to the overall growth of the Company.
Your Company had 50 subsidiaries at the beginning of the year.
The following Forty subsidiaries were set up / acquired during the year:
1. PT Coal Indonesia (Set up by PT Adani Global)
2. PT Mundra Coal (Set up by PT Adani Global)
3. PT Sumber Bara (Set up by PT Adani Global)
4. PT Energy Resources (Set up by PT Adani Global)
5. PT Adani Sumselon (Set up by PT Adani Global)
6. PT Sumber Dana Usaha (Set up by PT Coal Indonesia)
7. PT Setara Jasa (Set up by PT Coal Indonesia)
8. PT Niaga Antar Bangsa (Set up by PT Sumber Bara)
9. PT Niaga Lintas Samudra (Set up by PT Sumber Bara)
10. PT Andalas Bumi Persada (Set up by PT Sumber Dana Usaha)
11. PT Citra Persada Luhur (Set up by PT Sumber Dana Usaha)
12. PT Gemilang Pusaka Pertiwi (Set up by PT Sumber Dana Usaha)
13. PT Hasta Mundra (Set up by PT Sumber Dana Usaha)
14. PT Kapuas Coal Mining (Set up by PT Sumber Dana Usaha)
15. PT Karya Pernitis Sejati (Set up by PT Sumber Dana Usaha)
16. PT Pahala Buana Abadi (Set up by PT Sumber Dana Usaha)
17. PT Sumber Bumi Lestari (Set up by PT Sumber Dana Usaha)
18. PT Suar Harapan Bangsa (Set up by PT Sumber Dana Usaha)
19. PT Tambang Sejahtera Bersama (Set up by PT Sumber Dana Usaha)
20. PT Lamindo Inter Multikon (Set up by PT Niaga Antar Bangsa)
21. PT Mitra Naiga Mulia (Set up by PT Niaga Antar Bangsa)
22. Sarguja Rail Corridor Pvt. Ltd. (Set up by Adani Mining Pvt. Ltd.)
23. Adani Mining Pty Ltd. (Set up by Adani Global Pte. Ltd.)
24. Mundra Port and Special Economic Zone Ltd. (MPSEZ) [pursuant tosanction of Scheme of Amalgamation by the Honble High Court of Gujaratvide its order dated 12th August, 2010.]
25. Mundra SEZ Textile and Apparel Park Private Limited. (Subsidiaryof MPSEZ)
26. Karnavati Aviation Private Limited (Subsidiary of MPSEZ)
27. MPSEZ Utilities Private Limited (Subsidiary of MPSEZ)
28. Rajasthan SEZ Private Limited (Subsidiary of MPSEZ)
29. Adani Logistics Limited (Subsidiary of MPSEZ)
30. Mundra International Airport Private Limited (Subsidiary of MPSEZ)
31. Adani Murmugao Port Terminal Private Limited. (Subsidiary ofMPSEZ)
32. Adani Hazira Port Private Limited (Subsidiary of MPSEZ)
33. Adani Petronet (Dahej) Port Pvt. Ltd. (Subsidiary of MPSEZ)
34. Hazira Infrastructure Pvt. Ltd. (Subsidiary of MPSEZ)
35. Hazira Road Infrastructure Private Limited (Subsidiary of AdaniHazira Port Private Limited)
36. Chendipada Collieries Pvt. Ltd.
37. Adani Shipping (India) Pvt. Ltd.
38. Mundra LNG Ltd.
39. Chemoil Adani Pte. Ltd. (Set up by Adani Global Ltd.)
During the year under review, Adani Virginia Inc ceased as Subsidiaryof your Company.
In view of above, the total number of Subsidiaries as on 31st March,2011 was 89.
The Ministry of Corporate Affairs vide its General Circular No: 2/2011dated 8th February, 2011 exempted the Holding Companies from attachingAnnual Reports of Subsidiary Companies with the Balance Sheet of theHolding Company as per Section 212(8) of the Companies Act, 1956. Inview of the same, the individual Annual Reports of Subsidiary Companiesare not attached with the Balance Sheet of your Company.
A statement showing brief financial details of the Subsidiaries as perthe requirements of aforesaid General Circular is included in theAnnual Report.
Shareholders interested in obtaining the statement of Companysinterest in the subsidiaries or stand-alone financial statements of theSubsidiary Companies may obtain it by writing to the Asst. CompanySecretary of the Company. The same are also available for inspection byany member at the registered office of the Company.
CORPORATE SOCIAL RESPONSIBILITY
Adani Group carries on social welfare activities through a trustnamely, "Adani Foundation".
The Adani Foundation was established in 1996 with the vision to"accomplish passionate commitment to the social obligations towardscommunities, fostering sustainable and integrated development, thusimproving quality of life".
The Foundation is registered as a NGO and operates in Gujarat, HimachalPradesh, Maharashtra & Rajasthan. The Foundation is active in fourmajor areas for all sections of the society:
- Education
- Community Health
- Livelihood Development
- Rural Infrastructure Development
Adani Foundation strives to bring about change in quality of life of
communities by working through Sustainable Livelihood Activities andproviding quality education which otherwise has become unaffordable nowa days.
Adani Foundation also undertakes Skill Development Trainings forspecialized services and entrepreneurship for rural youth - men andwomen. Good number of Youth have been trained in Diesel Engine Repair& Maintenance, Automobile Repair & Maintenance, Beauty Parlor Trainingsand Sewing & Garment Making.
AUDITORS & AUDITORS REPORT
Your Companys Statutory Auditors, M/s. Dharmesh Parikh and Co.,Chartered Accountants retire at the conclusion of the ensuing AnnualGeneral Meeting. The Statutory Auditors have confirmed theireligibility and willingness to accept the office on re-appointment. Thenecessary resolution seeking your approval for re-appointment ofStatutory Auditors has been incorporated in the Notice convening theAnnual General Meeting.
The Board has duly reviewed the Statutory Auditors Report on theAccounts. The observations and comments, appearing in the AuditorsReport are self-explanatory and do not call for any further explanation/ clarification by the Board of Directors under Section 217(3) of theCompanies Act, 1956.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the year underreview, as stipulated under Clause 49 of the Listing Agreement ispresented in a separate section forming part of this report as perAnnexure III.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO.
The information relating to foreign exchange earnings and outgo areannexed hereto as Annexure-I and forms part of this report.
Since your Company does not own manufacturing facility, the otherparticulars relating to conservation of energy and technologyabsorption stipulated as per Section 217(1)(e) of the Companies Act,1956 read with the Companies (Disclosure of particulars in the Reportof Board of Directors) Rules, 1988, are not applicable.
GROUP
Pursuant to intimation from the Promoters, the names of the Promotersand entities comprising Group are disclosed in the Annual Report forthe purpose of the SEBI (Substantial Acquisition of Shares andTakeovers) Regulations, 1997.
PERSONNEL
In accordance with the provisions of Section 217(2A) of the CompaniesAct, 1956 read with the Companies (Particulars of Employees) Rules,1975 as amended up-to-date, the names and other particulars of theEmployees have been set out in the Annexure to this Directors Report.However, in terms of the provisions of Section 219(1)(b)(iv) of theCompanies Act, 1956, the Report and Accounts, as therein set out, arebeing sent to all the members of the Company excluding the aforesaidinformation about employees. Any member, who is interested in obtainingsuch particulars about employees, may write to the Asst. CompanySecretary at the Registered Office of the Company. The said informationis also available for inspection by any member at the Registered Officeof the Company.
The employee strength of your Company as on 31st March 2011 was 478 asagainst 391 as on 31st March, 2010.
During the year under review, the relationships of your Company withits employees remained cordial at all levels.
HUMAN RESOURCES
Your Company continuously invests in people development, indentifyingand grooming management talent and has a culture of harnessing peoplepower to the maximum.
ACHIEVEMENT
During the year under review, combined market capitalization of yourCompany and its two listed Subsidiary Companies namely, Mundra Port andSpecial Economic Zone Ltd. and Adani Power Ltd. fgured among top fveconglomerates in the country, going by the market capitalization oflisted Companies on Indian bourses.
APPRECIATION
Your Directors wish to express their sincere appreciation to theCentral Government, the State Governments, bankers and the businessassociates for their excellent support and look forward to continuedsupport in future. Your Directors wish to place on record theirappreciation to the employees at all levels for their hard work,dedication and commitment, which has enabled the Company to progress.
ManagementName DesignationA C Shah DirectorAnil Ahuja DirectorDevang S Desai Executive Director & CFOGautam S Adani Chairman / Chair PersonJay H Shah DirectorParthiv Parikh Asst. Co. Secretary & compl. OfficerParthiv Parikh SecretaryPravin P Shah DirectorRajesh S Adani CEORajesh S Adani Managing DirectorS K Tuteja DirectorTatsuo Fuke Alternate DirectorVasant S Adani DirectorYoshihiro Miwa Director
Adani Enterprises- Key FundamentalsMarket Cap (Rs Cr.):61,914EPS - TTM (Rs):2.98P/E Ratio (x):196.96Face Value (Rs):1.00
Ashwani GujralTuesday, September 06, 2011 10:36:24 AM HRS ISTsellWatch out for Adani Enterprises at 544-545 levels: Mitesh Thacker more » Mitesh ThackerFriday, September 02, 2011 12:46:24 PM HRS IST
Adani may move towards 580-600: Ashwani Gujral more » Ashwani GujralWednesday, August 03, 2011 10:33:54 AM HRS ISTDowntrendAdani Enterprises may rally after 675 level: Ashwani Gujral more » Ashwani GujralTuesday, August 02, 2011 10:24:14 AM HRS ISTWait & WatchA short term pullback possible in Adani Enterprises: CK Narayan more » CK NarayanFriday, July 29, 2011 02:31:56 PM HRS ISTsell
Adani Enterprises- AnnouncementsAdani Enterprises Ltd - Results Update, Quarter ended, 30-JUN-2011 (Standalone)10/08/2011Adani Enterprises Ltd has informed regarding the standalone Results for the quarter ended ...Adani Enter - Outcome of AGM10/08/2011Adani Enterprises Ltd has informed BSE that the 19th Annual General Meeting (AGM) of the C...
Adani Enterprises- Shareholding Pattern No. of Shares% Holding
Total Income Cr.EBIT Cr.PAT Cr.EPS (Rs.)1,18814195.863,2882282692.45
The Shareholding Pattern page of Adani Enterprises Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc. Shareholding pattern - Adani Enterprises Ltd.
Holder's Name No of Shares % Share HoldingPromoters 770388260 70.05%ForeignInstitutions 175551419 15.96%ForeignPromoter 90941484 8.27%OtherCompanies 19676400 1.79%ForeignOcb 14965933 1.36%GeneralPublic 12377314 1.13%FinancialInstitutions 9050406 0.82%ForeignNRI 5348473 0.49%NBanksMutualFunds 1396527 0.13%Others 103867 0.01%
Adani Enterprises Limited engages in trading, energy, ports and logistics, real estate, and agro
businesses in India and internationally. It engages in the trading of coal and power; generation of
power from coal; mining of coal properties in India, Indonesia, and Australia; supply and
distribution of natural gas to industrial, commercial, domestic, and CNG customers; operation of
Mundra port; and provision of logistic services. The company also develops commercial and
residential real estate properties. In addition, the company involves in the development storage,
handling, and transportation infrastructure facilities for fresh fruits and vegetables in India, as well
as develops and operates bulk food grain handling, storage, and transportation facilities. The
company, formerly known as Adani Exports Ltd., was founded in 1988 and is headquartered in
Ahmedabad, India.
Details
Index Membership: N/A
Sector: Conglomerates
Industry: Conglomerates
Full Time Employees: 478
Adani Enterprises Ltd. Fundamental Company Report IncludingFinancial, SWOT, Competitors and Industry AnalysisBusiness Analytic Center (BAC)Date: Sep, 2011Pages: 50Price: US$ 499.00ID: A073E71A11EENAdani Enterprises Ltd. Fundamental Company Report provides a complete overview of the company’saffairs. All available data is presented in a comprehensive and easily accessed format. The report includesfinancial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecastsmade by stock market experts. The report also enables direct comparison to be made between AdaniEnterprises Ltd. and its competitors. This provides our Clients with a clear understanding of AdaniEnterprises Ltd. position in the Wholesale and Distribution Industry.ScopeThe report contains the company’s profile and data about the owners, senior executives, locations,subsidiaries, markets, products, and company history.The SWOT-analysis provides information about the company’s strengths, weaknesses,opportunities, and possible threats against it.The report outlines the main financial ratios pertaining to profitability, margin analysis, assetturnover, credit ratios, and company’s long-term solvency.It also shows the company’s income statement and ratio trend-charts, with balance sheets andcash flows presented on an annual and quarterly basis.Company’s financial ratios are directly compared with those of its competitors through industryaverages.The report provides relevant news, an analysis of PR-activity, and stock price movements.The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts
are given by a variety of experts and market research firms.The benefits of buying the Report are as follows:Readers will gain an unrivalled in-depth knowledge about the company.The report will help the management of your business environment. This will be achieved throughthe report’s unique analysis of both the market and company’s competitors, and by providingdetailed information about the internal and external factors that affect the relevant industry.Your company’s business and sales activities will be boosted by gaining an insight into yourcompetitors’ businesses.The report will help you to find prospective partners and suppliers.The annual profitability data provided in the report will assist and strengthen your company’sdecision-making processes.About Adani Enterprises Ltd.Adani Enterprises Limited primarily engages in trading, energy, real estate and agro-related operations. Itinvolves in trading edible oils; and agro-commodities, including food grains, castor oils, pulses, soya meals,rapeseed meals, and castor meals, as well as involves in edible oil refining business. The company alsooffers integrated storage, handling, and transportation infrastructure for food products. In addition, itengages in developing integrated townships, and commercial and residential properties; and providesPhone: +44 20 8123 2220http://marketpublishers.comAdani Enterprises Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis 2
logistics solutions for handling a range of cargos through a network of container terminal and ICD’s.Further, the company involves in oil and gas exploration, power trading and transmission, coal mining, andcoal trading activities. Additionally, it engages in the supply of natural gas to industrial, commercial,domestic, and CNG customers; provision of port based logistics services for cargos and vessels; anddevelopment of port based special economic zones, as well as provides IT enabled services. The companywas formerly known as Adani Exports Limited. Adani Enterprises Limited was founded in 1988 and isheadquartered in Ahmedabad, India.Table of ContentRESEARCH METHODOLOGYDISCLAIMER1. ADANI ENTERPRISES LTD. COMPANY PROFILE1.1. Key facts1.2. Financial Performance1.3. Key Executives1.4. Ownership and Major Holders1.5. Company History2. ADANI ENTERPRISES LTD. BUSINESS OVERVIEW2.1. Business Description2.2. Major Products and Services2.3. Markets and Sales Activities2.4. Locations, Subsidiaries, Operating Units3. ADANI ENTERPRISES LTD. SWOT ANALYSIS3.1. Overview3.2. Strengths3.3. Weaknesses
5. ADANI ENTERPRISES LTD. COMPETITORS AND INDUSTRY ANALYSIS5.1. Adani Enterprises Ltd. Direct Competitors5.2. Comparison of Adani Enterprises Ltd. and Direct Competitors Financial Ratios5.3. Comparison of Adani Enterprises Ltd. and Direct Competitors Stock Charts5.4. Adani Enterprises Ltd. Industry Analysis5.4.1. Wholesale and Distribution Industry Snapshot5.4.2. Adani Enterprises Ltd. Industry Position Analysis6. ADANI ENTERPRISES LTD. NEWS & EVENTS6.1. News & PR Activity Analysis6.2. IR Corporate News6.3. Marketing News6.4. Corporate Events7. ADANI ENTERPRISES LTD. EXPERTS REVIEW7.1. Experts Opinion7.2. Experts EstimatesAPPENDIX 1: RATIO DEFINITIONSLIST OF TABLESTable 1. Adani Enterprises Ltd. Key FactsTable 2. Adani Enterprises Ltd. ProfitabilityTable 3. Adani Enterprises Ltd. Management EffectivenessTable 4. Adani Enterprises Ltd. Income Statement Key FiguresTable 5. Adani Enterprises Ltd. Balance Sheet Key FiguresTable 6. Adani Enterprises Ltd. Cash Flow Statement Key FiguresTable 7. Financial Performance Abbreviation GuideTable 8. Adani Enterprises Ltd. Key ExecutivesTable 9. Adani Enterprises Ltd. Key Executives Biographies *Table 10. Adani Enterprises Ltd. Key Executives Compensations *Table 11. Adani Enterprises Ltd. Key Executives Stock Options *Table 12. Adani Enterprises Ltd. Major Direct HoldersTable 13. Adani Enterprises Ltd. Major Direct Holders: BreakdownTable 14. Adani Enterprises Ltd. Top Institutional Holders *Table 15. Adani Enterprises Ltd. Top Mutual Fund Holders *Table 16. Adani Enterprises Ltd. HistoryTable 17. Adani Enterprises Ltd. ProductsTable 18. Adani Enterprises Ltd. Revenues by ProductTable 19. Adani Enterprises Ltd. Revenues by RegionTable 20. Adani Enterprises Ltd. Offices and Representations
Table 21. Adani Enterprises Ltd. SWOT AnalysisTable 22. Adani Enterprises Ltd. Income Statement 2007-2010 Including 4-years TrendsTable 23. Adani Enterprises Ltd. Income Statement Latest 4 Quarters Including TrendsTable 24. Adani Enterprises Ltd. Balance Sheet 2007-2010 Including TrendsTable 25. Adani Enterprises Ltd. Balance Sheet Latest 4 Quarters Including TrendsTable 26. Adani Enterprises Ltd. Cash Flow 2007-2010 Including TrendsTable 27. Adani Enterprises Ltd. Cash Flow Latest 4 Quarters Including TrendsTable 28. Adani Enterprises Ltd. Profitability RatiosTable 29. Adani Enterprises Ltd. Margin Analysis RatiosTable 30. Adani Enterprises Ltd. Asset Turnover RatiosPhone: +44 20 8123 2220http://marketpublishers.comAdani Enterprises Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis 4
Table 31. Adani Enterprises Ltd. Credit RatiosTable 32. Adani Enterprises Ltd. Long-Term Solvency RatiosTable 33. Adani Enterprises Ltd. Financial Ratios Growth Over Prior YearTable 34. Adani Enterprises Ltd. Capital Market SnapshotTable 35. Adani Enterprises Ltd. Direct Competitors Key FactsTable 36. Adani Enterprises Ltd. Direct Competitors Profitability RatiosTable 37. Adani Enterprises Ltd. Direct Competitors Margin Analysis RatiosTable 38. Adani Enterprises Ltd. Direct Competitors Asset Turnover RatiosTable 39. Adani Enterprises Ltd. Direct Competitors Credit RatiosTable 40. Adani Enterprises Ltd. Direct Competitors Long-Term Solvency RatiosTable 41. Wholesale and Distribution Industry StatisticsTable 42. Adani Enterprises Ltd. Industry PositionTable 43. Adani Enterprises Ltd. vs. Industry Income Statement AnalysisTable 44. Adani Enterprises Ltd. vs. Industry Balance Sheet AnalysisTable 45. Adani Enterprises Ltd. vs. Industry Cash Flow AnalysisTable 46. Adani Enterprises Ltd. vs. Industry Ratios ComparisonTable 47. Analyst Recommendation Summary *Table 48. Adani Enterprises Ltd. Price Target Summary *Table 49. Experts Opinion Upgrades & Downgrades History *Table 50. Experts Recommendation Trends *Table 51. Adani Enterprises Ltd. Earnings Estimates *Table 52. Adani Enterprises Ltd. Revenue Estimates *Table 53. Adani Enterprises Ltd. EPS Trends *Table 54. Adani Enterprises Ltd. EPS Revisions *Table 55. Adani Enterprises Ltd. Growth Estimates *LIST OF FIGURESFigure 1. Adani Enterprises Ltd. Annual Revenues in Comparison with Cost of Goods Sold and Gross ProfitFigure 2. Adani Enterprises Ltd. Profit Margin ChartFigure 3. Adani Enterprises Ltd. Operating Margin ChartFigure 4. Adani Enterprises Ltd. Return on Equity (ROE) ChartFigure 5. Adani Enterprises Ltd. Return on Assets (ROA) ChartFigure 6. Adani Enterprises Ltd. Debt to Equity ChartFigure 7. Adani Enterprises Ltd. Current Ratio ChartFigure 8. Adani Enterprises Ltd. 1-year Stock ChartsFigure 9. Adani Enterprises Ltd. 5-year Stock ChartsFigure 10. Adani Enterprises Ltd. vs. Main Indexes 1-year Stock ChartFigure 11. Adani Enterprises Ltd. vs. Direct Competitors 1-year Stock ChartsFigure 12. Wholesale and Distribution Industry Performance ChartFigure 13. Adani Enterprises Ltd. Article Density Chart* – Data availability depends on company’s security policy.The complete financial data is available for public traded companies.The above Company Fundamental Report is a half-ready report.It means that we have all necessary data in our database to prepare the report but need 2-3 days to complete it. During this time we are also updating the report
with respect to the current moment. So, you can get up-to-date version for the same price.
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Adani Enterprises' PAT increases 1% at Rs. 570 cr in Q1, FY 12 Adani Enterprises Q1 profit rises to Rs. 569 crore Adani Power posts 54% rise in Q1 profit Widening iron ore scandal hurts Adani, JSW Adani Group stocks settle up on bourses
Jun 2010 Sep 2010 Dec 2010 Mar 2011Non promoter holding shares 140609102.00238480339.00238480339.00238480339.00Reserve surplus 0.00 0.00 0.00 0.00Calculated EPS current unit Extra Ordinary Items 0.00 0.00 0.04 3.27Deferred Tax -1.71 4.09 2.65 -22.40Tax PBDIT 135.50 169.00 31.35 15.95Calculated EPS adj ann current unit
Book value current unit 0.00 0.00 0.00 0.00Calculated EPS ann current unit
6.24 4.84 0.40 1.88
Depreciation 2.58 2.63 3.91 4.15Other Income 99.45 229.32 52.55 149.65PATM 10.11 19.36 1.56 6.38EPS current unit 1.56 1.21 0.10 0.47Reported Profit After Tax 84.16 124.92 10.34 49.68Interest 30.43 19.80 11.95 12.44Net Sales 832.10 645.10 664.19 778.99Excise Duty 0.00 0.00 0.00 0.00PBTDM Equity 53.70 109.98 109.98 109.98EPS Adj current unit PBDT
Face value 1.00 1.00 1.00 1.00Dividend 0.00 0.00 0.00 0.00Total Expenditure 798.19 707.00 687.18 913.65Total Income 933.69 876.00 718.53 929.60Adjusted Profit After Extra Ordinary Item
84.16 124.92 10.30 46.41
PBIDM Gross Sales 832.10 645.10 664.19 778.99
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Adani Enterprises Ltd. is engaged in trading commodity products mainly Power, Oil & Gas, Real Estate, Agro & Metals and Minerals, with shipping
acting as backbone to its various businesses
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ADANI ENTERPRISES LIMITEDThe Company was incorporated on March 2, 1993 as Adani Exports Limited, under the Companies Act, 1956. Pursuant to the change of name of theCompany to Adani Enterprises Limited, the Company was issued a fresh certificate of incorporation on August 10, 2006. For details of change of name ofthe Company, please see the section “History and Corporate Structure” on page [].Registered Office: “Adani House”, Near Mithakhali Six Roads, Navrangpura, Ahmedabad 380 009, GujaratTel No: (91 79) 2656 5555 Fax No: (91 79) 2656 5500Contact Person: Parthiv Parikh, Assistant Company Secretary and Compliance OfficerEmail: [email protected] Website: www.adanigroup.comTel No: (91 79) 2656 5555 Fax No: (91 79) 2656 5500FOR PRIVATE CIRCULATION TO THE EQUITY SHAREHOLDERS OF THE COMPANY ONLYDRAFT LETTER OF OFFERISSUE OF [] EQUITY SHARES OF RE. 1 EACH (“EQUITY SHARES”) FOR CASH AT A PREMIUM OF RS. [] PER EQUITY SHAREAGGREGATING TO AN AMOUNT NOT EXCEEDING RS. 1,500 CRORES BY ADANI ENTERPRISES LIMITED (THE “COMPANY” OR THE
“ISSUER”)TO THE EXISTING EQUITY SHAREHOLDERS OF THE COMPANY ON RIGHTS BASIS IN THE RATIO OF [] EQUITY SHARESFOR EVERY [] EQUITY SHARES HELD ON THE RECORD DATE I.E. [] (“ISSUE”). THE ISSUE PRICE FOR THE EQUITY SHARES IS []TIMES OF THE FACE VALUE OF THE EQUITY SHARES.GENERAL RISKSInvestments in equity and equity related securities involve a degree of risk and Investors should not invest any funds in this Issue unless they can afford to take therisk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investmentdecision, Investors must rely on their own examination of the Company and the Issue including the risks involved. The securities being offered in this Issue havenot been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document.Investors are advised to refer to “Risk Factors” on page [] before making an investment in this Issue.ISSUER’S ABSOLUTE RESPONSIBILITYThe Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Letter of Offer contains all information with regard tothe Company and the Issue, which is material in the context of this Issue, that the information contained in this Draft Letter of Offer is true and correct in allmaterial aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts,the omission of which makes this Draft Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in anymaterial respect.LISTINGThe existing Equity Shares of the Company are listed on the Bombay Stock Exchange Limited (“BSE”) and The National Stock Exchange of India Limited(“NSE”). The Equity Shares offered through this Draft Letter of Offer are proposed to be listed on the BSE and the NSE. The Company has received “inprinciple”approvals from BSE and NSE for listing the Equity Shares to be allotted pursuant to the Issue vide letters dated [] and [] respectively. For thepurposes of the Issue, the Designated Stock Exchange shall be [].LEAD MANAGERS TO THE ISSUE REGISTRAR TO THE ISSUEICICI SECURITIES LIMITEDICICI Centre , H.T. Parekh MargChurchgateMumbai 400 020Tel: (91 22) 2288 2460/70Fax: (91 22) 2282 6580E-mail: [email protected] Grievance Id:[email protected]: www.icicisecurities.comSEBI Registration No.: INM000011179Contact Person: Rajiv PoddarENAM SECURITIESPRIVATE LIMITED801/ 802, Dalamal TowersNariman PointMumbai 400 021Tel: (91 22) 6638 1800Fax: (91 22) 2284 6824E-mail: [email protected] Grievance Email:[email protected]: www.enam.comContact Person: Dipali DalalSEBI Registration No.INM000006856IDFC - SSKI LIMITED803/4, Tulsiani Chambers8th Floor, Nariman PointMumbai - 400 021, IndiaTel: (91 22) 6638 3333Fax: (91 22) 2204 0282E-mail: [email protected] Grievance E-mail:
[email protected] Person: Hiren RaipancholiaWebsite: www.idfcsski.comSEBI Registration No.:INM000011336KARVY COMPUTERSHAREPRIVATE LIMITEDPlot No. 17-24Vittal Rao NagarMadhapurHyderabad 500 081Tel: (91 40) 2342 0815 / 2342 0816Fax: (91 40) 2342 0859Email: [email protected]: www.karisma.karvy.comSEBI Registration Number:INR000000221Contact Person: Murali KrishnaISSUE PROGRAMMEISSUE OPENS ON LAST DATE FOR REQUEST FOR SPLITAPPLICATION FORMS ISSUE CLOSES ON[] [] []
Business Description:Adani Enterprises Limited (“Adani”) is an India-based company. The Company isan export house, with operations covering a range of commodity groups, suchas agro, energy, metals and minerals and others. It is engaged in export/importof goods. Some of its subsidiaries include AdaniAgri Logistics ; AdaniAgri Fresh ;Adani Power ; Adani Power Maharashtra ; Adani Power Rajasthan ; Adani PowerDahej ; Mundra Power SEZ ; Aaloka Real Estate Pvt. ; Adani Global , Mauritius;Adani Global Pte. , Singapore; Adani Global FZE, Dubai and Adani Shipping Pte.Ltd, Singapore; Adani Virginia Inc, United States; Adani Power (Overseas) , Dubai;Adani Infrastructure and Developers Pvt.; PT Adani Global Indonesia and AdaniEstates Pvt. In September 2010, Mundra Port And Special Eco Zone became asubsidiary company of Adani Enterprises.
Investment Thesis:1. Well capitalized with strong sources of growing, recurring cashflows.• The Company has successfully tapped the public markets for equity capitalfor Adani Enterprises Limited as well as subsidiaries, Mundra Port and SpecialEconomic Zone and Adani Power Ltd.• Once developed, these capital intensive businesses earn high operatingmargins and generate substantial free cash flow.2. An integrated infrastructure player with significant synergiescapitalizing on India’s large infrastructure development needs.• Adani is an integrated infrastructure player encompassing the value chain fromcoal mining, shipping, port logistics, power generation and trading.• India currently has deficits in coal supply, port capacity and power generation.
These deficits, combined with estimated 7-10% real GDP growth, will providegrowth drivers for the Adani Group.3. Management has proven its execution capability at developing andscaling businesses.• Mundra Port and Special Economic Zone was transformed from a fishing villageinto a large port that has been called a “city in the making”.• Adani Power Ltd. has already implemented two 330 MW sub-critical coalplants in a timely fashion.4. Synergies between the group companies facilitate growth andreduce risks.• Power generation provides predictable demand for the coal mining businessand the coal mining business provides secure fuel supply for the powergeneration business. Imported coal provides stable volume for the portbusiness. The port business provided available land and water for the powergeneration business and the power generation business is attracting moreindustry to the port, thereby creating demand for land as well as traffic for theport.5. Strong alignment of management and shareholder interest.
Business Segments:1. Ports: In this segment, Adani owns and operates Mundra Port and SpecialEconomic Zone and is developing other ports in India. Mundra possessesphysical advantages of long coastline, deep draft, proximity to majormarkets and approximately 130 square kilometers of contiguous land. Inaddition, Mundra has developed road/rail/air connections and coal/oilterminals.2. Energy: In this segment, Adani’s main activities are in coal mining, powergeneration, power transmission, city gas distribution, oil and gas explorationand bunkering businesses.3. Trading: Activities covered in this segment are coal and power trading.Adani secured their position as the largest private sector coal importerthrough acquisitions and long-term Power Purchase Agreements forcontinuous supply of coal from Indonesia and Australia.4. Real Estate: Adani carries out commercial and residential development inMumbai and Ahmedabad.5. Agro-related businesses: Adani is one of the leading trading housesin agro commodities. The business is focused on trading various agroproducts in India and Internationally, including grains, pulses, castor andsoya. The Company is present in virtually every aspect of trade in bulk agrocommodities from importing and selling domestically to exporting andparticipating in third country trade.
Industry Growth Drivers / Trends:1. Ports: GDP growth combined with growth of exports/imports as apercentage of GDP.2. Energy: India requires incremental power capacity of approximately 90 GWover the next 5 years to meet the current shortfall (assuming power demandgrowth is 10% p.a.). Private players are expected to take the lead by adding30 GW by 2015. This is facilitated by the government’s fast track measures -land acquisition, fuel linkages, regulatory clearances, and Ultra Mega PowerPlants policy.3. Trading: Coal is one of the primary fuels in India and met 52.4% of India’stotal energy needs in 2009 and will continue to be crucial to India’s futureenergy needs. India is a net importer of Coal - approximately 60 metrictonnes in 2009. Based on requirements and estimated supply, India shouldremain a net coal importer for the foreseeable future.
4. Real Estate & Infrastructure: India’s infrastructure (roads, ports,electricity, and real estate) is developing at a rapid pace driven by strongeconomic growth and increasing per capita wealth. There is a projectedrequirement for US$475 billion of infrastructure investment by 2012 andUS$2.5 trillion over the next 15 years. With scarce residential space to caterto an ever increasing population and dwindling commercial area in theevent of enhanced economic activity, this segment will provide growth foryears to come.
Competitive Advantages:• Proven execution capability• Synergies across group business segments
Barriers to Entry:• Access to coal supply• Superior port location and transportation connections• Regulated concessions• Financial StrengthADANIENT-IN
ADANI ENTERPRISES LimitedJUNE 2011This research and information, including any opinion, is based on various sources believed to be reliable but it cannot be guaranteed to be current accurate or complete. It is for information only, and issubject to change without notice. The financial highlights reflect the different assumptions, views and analytical methods of the analysts who prepared them. This Business Brief is not an offer to sell ora solicitation of an offer to buy the security. The security discussed in the Business Brief may not be eligible for sale in some jurisdictions. If you are not a Canadian resident, this material should not havebeen delivered to you. The information presented in the Business Brief should not be considered personal investment advice. As each individual’s situation is different, you should consult with your ownprofessional investment, accounting, legal and/or tax advisers prior to acting on the basis of the material in the Business Brief. Information presented in this material should be considered for backgroundinformation only and should not be construed as investment or financial advice. Please consult a Financial Advisor. Every effort has been made to ensure the utmost accuracy of the information provided.Information provided is believed to be reliable when posted. All information is subject to modification from time to time without notice. Consent is required for any reproduction, in whole or in part, ofthis piece and/or of its images and concepts. PORTLAND INVESTMENT COUNSEL and the Clock Tower Design are trademarks of Portland Holdings Inc.Certain statements included in this document constitute forward-looking statements, including those identified by the expressions “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend” and similarexpressions to the extent they relate to the business. The forward-looking statements are not historical facts, but reflect the Portfolio Management team’s current expectations regarding future resultsor events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The PortfolioManagement team has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise. Any opinions expressed are those of Portland
Investment Counsel Inc. and do not necessarily state or reflect the views of ADANI ENTERPRISES LIMITED. Publication in this document should not be considered an endorsement by ADANI ENTERPRISESLIMITEDPortland Investment Counsel Inc., 1375 Kerns Road, Suite 100, Burlington, Ontario L7P 4V7 Tel.:1-888-710-4242 • Fax: 1-866-722-4242 • www.portlandic.com • [email protected](07/11)ADANIENT-IN
GICS Industry : Trading Comp & Dist. | Sub Industry : Trading Comp & Dist. | Website : www.adani.in
Adani Enterprises Ltd.Key Stock IndicatorsNSE Ticker : ADANIENT CMP as on 19 May 2011Rs/share : 625.9 Shares outstanding (mn) : 1,099.8Bloomberg Ticker : ADE:IN 52 week range up to 19 May 2011 (Rs)(H/L) : 786.0/505.0 Free Float (%) : 21.7Face value per share : 1.0 Market Cap as on 19 May 2011 (Rs mn) : 688,371 Average daily volumes (12 months) : 846,520Div.Yield (%): 0.2 Enterprise Value as on 19 May 2011 (Rs mn) : 833,572 Beta (2 year) : 1.0Adani Enterprises Ltd (AEL), the flagship company of the Adani Group was incorporated as a partnershipfirm in 1988, was converted into a joint stock company in 1993 and made its IPO in 1994. AEL is primarilyengaged in trading, energy, real estate and agrorelatedoperations. It also offers integrated storage,handling, and transportation infrastructure for food products.Largest importer and supplier of coal in IndiaAEL is the largest importer and supplier of coal in India and enjoys mining rights in Indonesia andAustralia. The company supplies nearly 30 million tonnes of coal in India and it expects to manage 200million tonnes of coal by 2020. AEL is the largest integrated coal manager (ICM) for a large body of powerproducers and other users. The company has entered into longtermarrangement for uninterrupted supplyof imported coal with some of the biggest suppliers in Indonesia. The company undertakes coal tradingbusiness directly and through its subsidiaries, Adani Global FZE, Dubai and Adani Global Pte. Ltd.,Singapore. The company sources coal mainly from suppliers in Indonesia, South Africa and Australia andsupply it to various states within India.Distributes PNG and CNG through its subsidiary Adani Gas LtdAEL city gas distribution business is undertaken through Adani Gas Limited (AGL) with an objective to
provide piped natural gas (PNG) to household and industrial consumers and compressed natural gas(CNG) for use in automobiles. AGL has set up a gas distribution network of approximately 328 km of steelpipeline network and approximately 1800 km of polyethylene pipelines spread across Ahmedabad andVadodara in Gujarat and Faridabad in Haryana, Noida, Khurja and Lucknow in Uttar Pradesh and Jaipurand Udaipur in Rajasthan, and 58 CNG stations in Ahmedabad and Vadodara in Gujarat and Faridabad inHaryana. AGL is also serving approximately 450 industrial units, 75,000 households and 600 commercialunits in these cities through its infrastructure network.AEL inks MOU with Carbon Energy Ltd in FY11AEL signed a memorandum of understanding (MOU) with Australia’s Carbon Energy Ltd in February 2011to set up a joint venture to explore opportunities in the Underground Coal Gasification (UCG) assets inIndia. AEL and Carbon Energy will jointly bid for staterunCoal India Ltd’s UCG tender in which it hassought UCG technology partners for development of UCG across its coal mining assets in India.l Changes government rules and regulationl Foreign exchange fluctuations as exports contributed ~62% of total revenue in FY10l Intense competition from domestic and international playersKEY HIGHLIGHTSKEY RISKSStock Performances visÃvismarketReturnsYTD 1m3m12mADANIENT 31 20 8NIFTY 3 5210Note:1) YTD returns are since Apr 1, 2010 to May 19, 2011.2) 1m,
3mand 12mreturns are up to May 19, 2011Key Financial IndicatorsMAR08MAR09MAR10Revenue (Rs mn) 195,814.5 262,525.5 258,915.8EBITDA margins (%) 3.5 3.8 6.5PAT (Rs mn) 3,745.4 5,054.4 9,340.9PAT margins (%) 1.9 1.9 3.6Gearing (x) 3.0 3.8 2.3EPS (Rs/share) 15.2 20.5 18.8PE (x) 39.5 13.1 33.4P/BV (x) 6.1 1.9 4.0RoCE (%) 10.8 8.1 7.7RoE (%) 21.1 17.1 16.6EV/EBITDA (x) 28.0 16.1 27.0n.m. : Not meaningfulShareholding (As on March 31, 2011)Indexed price chartCRISIL COMPANY REPORT |1AEL primarily engaged in trading, energy, real estate and agrorelatedoperations. It is involved in trading edible oils; and agrocommodities,including food grains, castor oils, pulses,soya meals, rapeseed meals, and castor meals, as well as involved in edible oil refining business. The company also offers integrated storage, handling, and transportationinfrastructure for food products. In addition, it engages in developing integrated townships, and commercial and residential properties; and provides logistics solutions for handling arange of cargos through a network of container terminal and ICD’s. Further, the company is involved in oil and gas exploration, power trading and transmission, coal mining, and coaltrading activities. Additionally, it engages in the supply of natural gas to industrial, commercial, domestic, and CNG customers; provision of port based logistics services for cargosand vessels; and development of port based special economic zones, as well as provides IT enabled services. The company’s fortune brand products are available in a range of edibleoils, including soya oil, sunflower oil, groundnut oil, nonrefined
mustard oil and cotton seed oil. AEL through its 100% subsidiary Adani Power Limited has initiated coal basedpower plant development in three phases to reach overall capacity of 2640 MW by end of 2010 in a phased manner. AEL has over the years transformed itself into a diversified assetbacked commodities trader, sourcing, producing, marketing and transporting nearly 70 commodities across more than 60 countries. The company operates through 30 officesincluding eight overseas offices in USA, UAE, China, Singapore, Indonesia, Mauritius and Myanmar. Exports contributed ~62% of total revenues in FY10.BACKGROUNDCOMPETITIVE POSITIONPeer ComparisonAdaniEnterprisesLtd.Mar10KSK EnergyVentures Ltd..Mar10RelianceInfrastructureLtd.Mar10Tata PowerCo. Ltd.Mar10Revenue (Rs mn) 258,915.8 4,666.6 143,702.0 188,915.5EBITDA margins (%) 6.5 57.9 9.4 20.1PAT (Rs mn) 9,340.9 1,801.5 15,192.1 19,430.1PAT margins (%) 3.6 38.6 10.6 10.3Gearing (x) 2.3 2.0 0.4 2.1EPS (Rs/share) 18.8 4.8 62.0 81.9PE (x) 33.4 23.1 8.9 14.8P/BV (x) 3.9 1.5 0.7 3.2RoCE (%) 7.7 5.5 8.0 12.5RoE (%) 16.6 7.8 8.5 27.9EV/EBITDA (x) 27.0 30.8 14.2 11.8n.m: Not meaningfulRevenue declines in FY10; bottomlineimproves significantly
Revenue degrewmarginally by 1.4% to Rs 258 bn in FY10 from Rs 262 bn in FY09, mainly onaccount of fall in domestic sales which declined by ~16% on yearonyear(yoy)basis.However exports increased by ~15% on yoybasis, therebyoffsettingthe overall revenuegrowth. Trading revenues from agro products, precious metal and power trading declined by51%, ~14% and ~69% respectively on yoybasis.The operating margins increased by ~270 basis points to 6.5% in FY10 from 3.8% in FY09,primarily due to decrease in trading expenses and manufacturing costs as a percentage of salesNet profit grew by ~84% and stood at Rs 9.3 bn in FY10 as compared to Rs 5 bn in FY09.Higher profitability was largely attributed to overall increase in operating profits, strong performance from subsidiaries and reduction in tax expense.Key Financial IndicatorsUnits Mar08Mar09Mar10Revenue Rs million 195,814.5 262,525.5 258,915.8EBITDA margins Per cent 3.5 3.8 6.5PAT Rs million 3,745.4 5,054.4 9,340.9PAT margins Per cent 1.9 1.9 3.6Revenue growth Per cent 15.6 34.1 1.4EBITDA growth Per cent 50.7 45.2 68.7PAT growth Per cent 115.4 34.9 84.8Gearing Times 3.0 3.8 2.3RoCE Per cent 10.8 8.1 7.7RoE Per cent 21.1 17.1 16.6FINANCIAL PROFILECoalThe demand for coal primarily arises from the power and steel sectors. While the power sector requires noncoking
coal for heating purposes to generate electricity, the steel sectorneeds coking coal to be converted into coke which is used in steel making. Sectors like cement, fertilizers and steel production through sponge iron route also require noncokingcoal. Power sector accounts for more than 75 per cent of the total coal demand while steel sector accounts for around 7 per cent. In India, Coal India Ltd (CIL) is the primary producerof coal and accounts for 82 per cent of total coal production. Singareni Collieries Company Ltd (SCCL) and other private sector players account for rest of the production. As demandfor coal has been growing at a higher rate of about 9 per cent compared to a supply growth of around 7 per cent, imports of both coking and noncokingcoal have increasedsubstantially.PowerIn India, power supply growth has lagged demand growth resulting in the country reeling under power deficit. In 200910,the base load deficit stood at 10 per cent while the peak loaddeficit was 12 per cent. The power sector comprises of three segments viz – generation, transmission and distribution (T&D). The generation segment is controlled by all the sectorssectors – central, state and private, while the T&D segment is primarily controlled by central and state sector utilities. Post the Electricity Act 2003, the sector has witnessed increasedinterest from private players especially in the generation segment. Generation capacity additions have gained traction with 9.6 GW of capacities being added in 200910,taking thetotal installed capacity to 159 GW. However, the T&D segment continues to be the weak link on account of high losses of around 30 per cent. The high T&D losses and inability toincrease tariffs have led to the abysmal financial health of SEBs, which has become the biggest risk for the sector.INDUSTRY PROFILE
Adani Enterprises Ltd.CRISIL COMPANY REPORT |3FOCUS CHARTS AND TABLESShareholding pattern (Per cent)Jun 2010 Sep 2010 Dec 2010 Mar 2011Promoters 73.8 78.3 78.3 78.3Fll 11.9 13.6 14.9 15.8Dll 3.0 1.7 1.2 1.0Others 11.3 6.3 5.6 4.9Board of Directors
Directors Name DesignationGautam Shantilal Adani Executive Chairman, PromoterDirectorRajesh Shantilal Adani Managing Director, PromoterDirectorVasant Shantilal Adani PromoterDirectorAnil Satya Paul Ahuja NonExecutiveDirectorDevang Sanat Desai NonExecutiveDirectorYoshihiro Takayasu Miwa NonExecutiveDirectorAmritlal Chunilal Shah NonExecutiveDirectorJay Himatlal Shah NonExecutiveDirectorPravin Pranlal Shah NonExecutiveDirectorSurender Kumar Tuteja NonExecutiveDirectorTatsuo Masanoubu Fuke Alternate DirectorAdditional DisclosureThis report has been sponsored by NSE InvestorProtection Fund Trust (NSEIPFT).DisclaimerThis report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such.The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal,accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liabilitywhatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed orcommunicated directly or indirectly in any form to any other person especiallyoutside India or published or copied in whole or in part, for any purpose.CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact'Client Servicing' at +912233423561,or via email:[email protected].
Adani Enterprises Ltd.CRISIL COMPANY REPORT |4
Promoter's 81% in Mundra Port to be merged with AELMoneycontrol.com, 11 Nov 09In an interview with CNBC-TV18, Devang Desai, Chief Financial Officer, Adani Enterprises, spoke aboutthe latest happenings in the company and his outlook on the sector.Here is a verbatim transcript.Q: I believe that you are thinking of merging the promoter entities of Mundra Port and SEZ withAdani Enterprises. Can you take us through what level of consideration it has reached and whyyou are contemplating that?A: Adani Enterprises has been positioning itself for the last two-three years from a pure trading companyinto a much more asset structure in the last transformation that has happened. This is a continuingexercise. What we had done was, we had consciously put all our businesses under enterprises, meaningour existing trading portfolio including all the new businesses, power generation included which wasalready resting in Adani Enterprises Ltd.Mundra Port was an asset which was not part of Adani Enterprises. This was being debated in terms ofwhether it would make sense to bring everything under one umbrella. Finally, in the last board meetingwhat we have done is we have brought in all the entities of the group under Adani Enterprises Ltd.What it means is that the promoter holds 81% stake in Mundra Enterprises, that 81% gets merged withAdani Enterprises and that is how Mundra Port becomes the subsidiary of Adani Enterprises Ltd. It ofcourse, does not affect the shareholders of Mundra Port. It is essentially an internal structuring. But itgiven a tremendous amount of signal totally in four ways; one is that we have simplified the structure, infuture all the ventures of Adani will come through Adani Enterprises only. So that means an investor hasa choice to either get into a specific business which will get listed over a period of time, whether it ispower, Mundra, mining, etc, or you can be a part with the promoter in the parent company, which has itsown trading profits and it has its continuing development initiative that it takes. It is a broader signal.
Q: Now it is happening with the promoter holding but is it a prelude to a proper merger happeningwhich will affect shareholders of Adani then?A: The process of Adani promoter entity is getting merged will take place in the next three-four months.So the Mundra Port becomes the subsidiary of Adani Enterprises. That is process that has to be gonethrough the court merger. Then finally the whole structuring will have effect.The major rational also is that we have a lot synergy between the assets of Mundra. Mundra is a catalystfor all our businesses in the enterprises. We have the coal trading which is the largest today; we do about20 million tonne of coal trading every year. We have edible oil refinery in the agriculture sector. We havepower generation, our biggest initiative that is also located in Mundra. So there is tremendous synergy interms of commonalty of processes in terms of value driver for these entities also. So that made sense forus to from a synergy angle. Then of course, enterprises is transforming, it will get into a very differentscale, size and visibility. You would have a very different market cap possibly an F&O candidate or anindex of sorts and it will improve liquidity over a period of time.Q: What is the full restructuring plan? Is it an option to merge Mundra and Adani?A: No, it is only the Mundra Port’s promoter entities. So we have entities which hold Mundra Port that is81%, those entities will get merge with Adani Enterprises. So Mundra Port shareholders are not affectedby it.Q: But is it something that the management could consider in the coming few months—mergingboth the companies?A: No, it would remain as a subsidiary. If you see the structure, Adani Enterprises holds 70% of AdaniPower, it holds 100% of Adani Mining, it will now hold 81% of Mundra Port—that is the structure. Eachone would be separately listed as and when required and they would continue that way.Q: You are looking at doing a QIP as well we believe. How large it might be?A: What we are seeing that in terms of the overall plan, mining is the next big thrust area for the group.Adani Enterprises holds 100% of Adani Mining. We have a 75 million tonne of mining various contracts onhand today, which would be unfolded over the next three-five years in terms of the optimum size scalethat we will reach.We have more initiatives in the mining, this is what we are talking about the Indian coal mining sector andwe feel that is an area which is the next big thing after power that we have done. So that would require anadditional capital.We have other subsidiaries in the form of agriculture, oil and gas and that you would require someamount of contribution there too. We would retire some of the debt in the enterprises which is a shorttermdebt, which we would like to reduce it at this stage, reduce the leverage in Adani Enterprises.
So in the next three-six months, we are talking about two programs; one is rights issue that we areplanning upto Rs 1,500 crore and we are talking about Rs 4,000 crore we have enhanced from a Rs1,500 crore QIP earlier and now it is Rs 4,000 crore. The total programme will be about Rs 5,500 crore. Inthe overall process with the Mundra promoter entity being merged, we feel that the overall stake which istoday at 75% of the promoter, we would come back to about 75% after these programmes are done. So itshould also be dilution neutral for promoters also.Q: You will do a QIP and a Rs 1,500 crore rights issue?A: Yes, we will also do a rights issue for which we have taken the boards approval. This committee hasbeen formed to analyze the pricing.Q: By when?A: We should be doing it in by next 15 days.Q: Both of them?A: The committee would announce what sort of pricing is there in the rights. QIP of course is marketlinked, so that also the bankers are being appointed. They will decide in terms of the timing when tolaunch. That also we would want to complete in the next six months.Q: But rights first?A: Yes rights first.
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Adani Enterprises
Adani Enterprises or Adani Enterprises Ltd. is an India based multinational company operating in the global trading business. Adani Enterprises is the main company
of the industry conglomerate, the Adani Group was established in 1988.
Adani Enterprises head office is located at Ahmedabad, India and its Indian branch offices are located at Delhi, Mumbai, Kolkata, Chennai, Mundra,
Vadodara, Surat, Goa, Belekeri, Bangalore, Indore, Coimbatore, Hospet, Jamshedpur, and Joda Barbil. Further, AEL has offices at international locations such as US, UAE, and Singapore to coordinate its business activities across the globe. Adani Enterprises
Limited deals with more than 70 commodities across 60 nations around the world. Adani Enterprises operates in 4 business sectors – energy, agro, metals and minerals, and
infrastructure and logistics. Adani Enterprises, the premier trading company of India, is developing a minor Port at Belekeri, North Karnataka, to handle iron-ore and other bulk
cargo.
Business verticals of Adani Enterprises are –
Energy business is into the production of Coal, Coke, Iron ore, Petroleum, and Petrochemicals Agro business is into varied agricultural products like wheat, rice, oilseed
meal, pulses, groundnuts Metals and minerals business is into iron-ore, ferrous scrap, precious metals, and diamonds Infrastructure and logistics business is into the
development of various townships and real estate projects in India and shipping projects in Singapore
Adani Enterprises trading product lines includes –
Agro products – Sugar, Pulses, Grain Wheat
Fertilizers Steel scrap Petrochem
stones Hydrocarbon
Coal and coke products Castor
Oil meals and de-oiled cakes
Adani Enterprises diversified into power trading business and in September, 2003 and obtained the provisional license from Central Electricity Regulatory Commission. The company started its operation from November, 2003 and till March, 2007 the company
has traded 5,730 MUs of power. This division has plans to increase its trading capacity to 5000 MUs over next few years in phased manner.
DOMESTIC OFFICES
Adani Enterprises Ltd.“Adani House”, Shrimali Society
