INTERNATIONAL BUSINESS

CIA 1.1

EPRG FRAMEWORK

Submitted By:

Kashish Aggarwal – 1820241

Saloni Jain – 1820343

Vagisha Singh - 1820347

TABLE OF CONTENTS

SL. No. Topics Page No.

1. History 1-2

2. Milestones 2

3. Products & Services 3-6

4. Stages of Development 7-10

5. Financials 11-15

6. EPRG Analysis 16-19

7. Conclusion 20

8. References 21
HISTORY

The Adani Group commenced as a commodity trading firm in 1988 and diversified into the
import and export of multi-basket commodities. With a capital of 5 lakhs, the company was
established as a partnership firm with the flagship company, Adani Enterprises Limited,
previously Adani Exports Limited. In 1990 the Adani Group developed its own port
in Mundra to provide a base for its trading operations. It began construction at Mundra in
1995. In 1998, it became the top net foreign exchange earner for India Inc. The company
began coal trading in 1999 followed by a joint venture in edible oil refining in 2000 with the
formation of Adani Willmar.

The group's second phase started with the creation of large infrastructure assets. The
company established a portfolio of ports, power plants, mines, ships and railway lines inside
and outside India.

Adani handled 4 million Metric Tonnes (MT) of cargo at Mundra in 2002, becoming the

largest private port in India. Later in 2006, the company became the largest coal importer in
India with 11 million MT of coal handling. The company expanded its business in 2008
purchasing Bunyu Mine in Indonesia which has 180 million MT of coal reserves. In 2009 the
firm began generating 330 MW of thermal power. It also built edible oil refining capacity in
India of 2.2 million MT per annum. Adani Enterprises became the largest trading house in
India importing coal with a market share 60%. It also supplies coal to NTPC Limited, India.
The Adani group became India's largest private coal mining company after Adani Enterprises
won the Orissa mine rights in 2010. Operations at the Port of Dahej commenced in 2011 and
capacity subsequently grew to 20 million MT. The company also bought Galilee Basin mine
in Australia with 10.4 billion MT of coal reserves. It also commissioned 60 million MT of
handling capacity for the coal import terminal in Mundra, making it the world's largest. In
addition, in the same year, the Adani group also bought Abbot Point port in Australia with 50
million MT of handling capacity. It commissioned India's largest solar power plant with a
capacity 40 MW. As the firm achieved 3960 MW capacity, it became the largest private
sector thermal power producer in India. In 2012 the company shifted its focus on three
business clusters – resources, logistics and energy.

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Adani Power emerged as India's largest private power producer in 2014. Adani Power's total
installed capacity then stood at 9,280 MW. The Mundra Port, Adani Ports and SEZ Ltd.
(APSEZ), handled 100 million metric tonnes in fiscal 2013–14. On 16 May of the same year,
Adani Ports acquired Dhamra Port on East coast of India for Rs 5,500 crore. The port began
operations in May 2011 and handled a total cargo of 14.3 million MT in 2013–14.With the
acquisition of Dhamra Port, the Group is planning to increase its capacity to over 200 million
MT by 2020.

In 2015 the Adani Group's Adani Renewable Energy Park signed a pact with
the Rajasthan Government for a 50:50 joint venture to set up India's largest solar park. In
November 2015, the Adani group began construction at the port in Vizhinjam, Kerala. On 22
December 2017 the Adani Group acquired reliance the power arm of Reliance Infrastructure
for Rs 18,800 crore.

MILESTONES AND ACHIEVEMENTS

 Adani Ports & SEZ Limited (APSEZ) received ‘India's Container Port of the Year
2016’ in Mumbai.
 The port developer and logistics arm of the Group was awarded the same at the 7th
edition of the All India Maritime and Logistics Awards (MALA).
 Adani Ports and Special Economic Zone (APSEZ) Limited won the ‘Non-Major Port
of the Year 2015’ by the All Time Maritime and Logistics Award (MALA).
 Adani Ports and Special Economic Zone (APSEZ) Limited won the Emerging
Company of the year 2014 at the Economic Time awards.
 Mundra Port was, recognized by The International Association of Ports and Harbors
(IAPH), among 55 top ports of the world, to commit to jointly reduce the threat of
global climate change.
 In January 2018, Adani Green Energy Limited, a division of Adani Group, entered
into the global top 15 list of solar power developers by GTM Research, the market
analysis and consulting arm of Greentech Media.
 The Adani Enterprises-Mining bagged the "India’s Great Place to Work 2019"
certification on 19 July in Mumbai. The Great Place to Work Institute awarded the
certification to the company in the category of the Mid-size Organisations.

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 PRODUCTS AND SERVICES
1. Trading
 Coal Trading
In the past few years, they have transformed from a coal trading and importing
company to a comprehensive integrated coal management company. They have a
diversified trading portfolio and are involved in Coal and Coke trading. In keeping
with their commitment to stay ahead of the competition, they aim to achieve our
target of 100 MMT volumes in their trading business by 2020.
 Power Trading
Aim at addressing the vast potential in India’s transmission sector and their ambitious
target is to set up 20,000 circuit kms of transmission lines by 2022. They currently
operate more than 8500 circuit kms of transmission lines and around 14000 MVA
of power transformation capacity.
2. Energy
 Power
Adani Electricity Mumbai Ltd (AEML), a 100% subsidiary of Adani Transmission
Ltd. is into Power Generation, Transmission and Retail Electricity Distribution. It
serves over three million consumers spread across 400 sq. kms in Mumbai and its
suburbs with 99.99% reliability, one among the highest in the country.
 City Gas Distribution
They have network of over 6000 kms of pipeline distributing gas to kitchens of the
country. With over 1200 industrial units, over 3, 00,000 households, over 2,400
commercial units and more than 80 CNG stations, Adani Gas Ltd. is the largest
Private Sector CGD in India.
 Coal Mining
In the past few years, we have transformed from a coal trading and importing
company to a comprehensive integrated coal management company. We have a
diversified trading portfolio and are involved in Coal and Coke trading. In keeping
with our commitment to stay ahead of the competition, we aim to achieve our target
of 100 MMT volume in our trading business by 2020.
 Bunkering
Supported by the strong infrastructure setup at their ports, they are India’s largest
bunker supplier. In line with their vision to become a major global player, they are

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 expanding across geographies to increase their footprint as the top bunker fuel
supplier, transforming ourselves into a “one-stop fuel solution” with diversified
service offerings for their customers. They have presence in over 80 ports across
the globe and are a trusted brand known for quality products and services.

3. Ports & Logistics

 Mundra Port and Special Economic Zone Ltd. (MPSEZ)
Its spread across 10 domestic ports in six maritime states – Gujarat, Goa, Kerala,
Andhra Pradesh, Tamil Nadu, and Odisha – lend it a national presence. The port
facilities are equipped with the latest cargo-handling infrastructure which is not
only best-in-class, but also capable of handling the largest vessels calling at Indian
shores. Their ports are equipped to handle diverse cargos – dry cargo, liquid cargo,
crude and containers.

4. Real Estate
 Shantigram
Adani Realty has been developing residential, commercial and social club projects of
over 64 lac sq. mtrs. (69 million sq. ft. approx.) in Ahmedabad, Mumbai, Gurgaon,
Kochi and Mundra with an aim to revolutionise real estate; keeping in mind the
varied aspirations and lifestyles of new age India.

5. Agro
 Agro: Fruits & Vegetables: Adani Agri Fresh Ltd.
Adani established its presence in the horticulture sector through world-class packaging
operations and storage facilities. These services ensure selection of only the highest
grade of horticulture products for storage and consumption. It pioneered the
controlled atmosphere storage technology for apples, transforming the apple
growing and storage ecosystem of Himachal Pradesh, while creating a popular
‘Farm-Pik’ brand.
 Agro Edible Oil: Adani Wilmar Ltd.
Through a joint venture with Wilmar International Ltd (Singapore) and Adani
Enterprises Ltd- Adani Wilmar Limited is one of the largest food companies in
India contributing towards a healthier nation. The company’s portfolio entails its

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 flagship ‘Fortune’ cooking oil brand which offers the largest variety of oils ranging
from soya, rice bran, groundnut and cottonseed. The brand has also introduced
Vivo, India’s first oil for diabetes care.
 Agro Supply Chain - Adani Agri Logistics Ltd.
Adani Agri Logistics is a pioneer in bulk handling, storage and transportation
(distribution) of food grains, and in providing an end-to-end bulk supply chain
solution to Food Corporation of India and various state governments. The company
commissioned India’s first modern grain storage infrastructure for Food
Corporation of India in 2007. It commissioned in Punjab and Kaithal to store
grains, and established receiving silos in Mumbai, Chennai, Bengaluru, Kolkata
and Coimbatore.

6. Aerospace
Adani Defence and Aerospace leads the Adani Group's foray into defence and
aerospace manufacturing to play an instrumental role in helping transform India into
a destination for world class defence and aerospace manufacturing, aligned to the
Make in India initiative. Driven by our values of Commitment, Trust and Courage,
we are enhancing India's defence and industrial capabilities and helping build a
secure nation.

7. Financial Service
The non-banking financial company (NBFC) arm of Adani Group, Adani Capital, aims
to become the foremost financial services firm with a focus on ‘Entrepreneurship’ to
give every dream an opportunity by freeing it from the clutches of judgements and
prejudice. Adani Capital aims to play a pivotal role in bringing about an inclusive
growth by focusing on rural development and supporting medium and small
enterprises through capital and industry best practices.

8. Housing Finance
The housing finance arm of Adani group, Adani Housing Finance Pvt. Ltd is,
incorporated in 2017 with an aim to hold a pioneering role in furthering the national
objective of ‘Housing for All’ coupled with its objective of Nation Building by

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 providing customised financing solutions to customers in the affordable housing
segment and simplifying the lending process for all.

9. Logistics
PAN India end-to-end logistics services provider – asset and service based – across
Container, Bulk, Break-bulk, Chemical, Auto and Liquid industries. Also operate
three logistics parks located at Patli in Haryana, Kila-Raipur in Punjab and
Kishangarh in Rajasthan. With the ability to handle 500,000 twenty-foot equivalent
units (TEUs) annually, the Adani logistics business is growing at a rapid pace.

10.Renewables
Adani Renewables (Adani Green Energy Limited) is one of the largest renewable
energy companies in India, with a pioneering effort to help India’s transition to
renewable power generation.
 Thermal
Adani's thermal power portfolio comprises 12,410 MW. This includes a power plant
each in Mundra (Gujarat), Tiroda (Maharashtra), Kawai (Rajasthan), Udupi
(Karnataka) and, Korba and Raikheda (Chhattisgarh).This makes the company
India’s largest private sector power player.
 Solar
Adani Solar - Mundra Solar PV Ltd, is the solar PV manufacturing arm, the first
Indian company to vertically integrate businesses that offer services across the
spectrum of photo voltaic manufacturing. The state-of-the-art manufacturing
facility with multi-level infrastructure is optimised for scaling up to 3 GW of
modules and cells under a single roof. The unit is located at one of the world's
largest Special Economic Zone at Mundra, Gujarat.

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STAGES OF DEVELOPMENT

1988

 Adani Group commenced business as commodity trading and diversified into the import
and export of multi-basket commodities.

 The company was established as a partnership firm with the flagship company, Adani
Enterprises Limited.

1994

 Listed on Bombay Stock Exchange and National Stock Exchange.

 The listing share price was Rs. 150 per share at the close.

 The company subscribed 25% of its authorized share capital.

1995-1998

 The company developed its own port in Mundra to provide base for its trading operations.

 It became the top net foreign exchange earner for India.

 The company made a bonus issue to its shareholders in the ratio of 1:1.

 Adani Power Ltd. was founded as a subsidiary of Indian conglomerate Adani Group.

 Adani Ports and Special Economic Zone ( India’s largest multi-port operator) became a
part of Adani Infrastructure unit.

 Miraj Impex Private Limited was established as a private incorporated

1999

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 Commencement of Indian Coal Manufacturing business in India, which is a subsidiary of
the conglomerate Adani Group.

 The company signed a Joint Venture with Wilmar, Singapore and was established as
Adani Wilmar Limited.

 The company made a second bonus issue in the year 1999-2000, this was because of lack
of cash reserves with the company.

2001

 It started its city gas distribution business.

 The 1st CNG station in Ahmedabad.

2005-2006

 Awarded India’s first mine and development operator.

 The company had undergone a stock split of AEL into 10:1.

 Adani Transmission Limited was listed on the Bombay Stock Exchange.

2007

 Adani Ports and Special Economic Zone Limited subscribed for its Initial Public Offer at
116x.

 The company also made an issue of foreign currency convertible bond of $250 million
dollars.

 The group commissioned its Green Silo Depot at 7 locations.

2008-2009

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 The company acquired Bunyu Coal mine Indonesia.

 Adani Power Ltd subscribed for its Initial Public Offer at 21x.

 The company made a third bonus issue in the year 1999-2000, this was because of lack of
cash reserves with the company.

 The first transmission line was commissioned.

2010

 The company raised a Qualified Institutional Promoters of $850 million.

 The company won first mine developer and operator contract.

 The company also acquired Carmichael coal mine Australia.

2015

 The company completed the demerger of Adani Port and Special Economic Zone
Limited, Adani Port Limited and Adani Trade wing Lip.

2017

 The company started the manufacturing of Solar VP panels.

 The company was able to establish world’s largest single location Solar Power Plant.

2018

 The company completed the demerger of Adani Green Energy and Adani Gas Limited.

 Fortune became the largest food FMCG brand in India.

 The company acquired Mumbai GTD acquisition.

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2019

 The company became the 2nd largest Integrated Coal Management in the world.

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FINANCIALS

COMPOUND ANNUAL GROWTH RATE (1994-2018) :

 Adani Enterprises through its diverse business operations and rapid expansion into
different sectors of the market has shown a Compound Annual growth rate of 36% since
its listing on the Bombay Stock Exchange.

 The company has been able to grow and diversify its business in domestic market as well
as globally which has resulted in a growth rate which has lead Adani Group to become
one of the biggest conglomerate company in India. The company aims to become global
leaders and with its growth rate and strategies the company would soon be a global
leader.

 The company also has a Nifty Compound Annual Growth Rate of 9.6%.

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EARNINGS MIX (EBITDA):

 The group has shown a huge growth in its Coal Management unit which has expanded
from 28% of its contribution to company’s earnings in 2012 to 50% of the earnings in
2018. The company has become the 2nd largest Integrated Coal Management in the world.

 The company has also diversified into Adani Green Energy Limited which now
contributed around 25% of the company’s earnings.

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 The company was able to establish world’s largest single location Solar Power Plant,
which now accounts for 9% of the company’s earnings.

 The company also started its operation in the Gas Distribution Business which accounted
for 11% of its earnings in the year 2018.

 In the year 2012 Adani Port and Special Economic Zone accounted for most of the
company’s earnings of 38% which now accounts for less than 5% of the earnings.

NETWORTH (2014-2018):

 The company has seen tremendous growth since its incorporation. This chart illustrates
the net worth of the company from the year 2014-2018.

 The company has a net worth of 1655 Crore in 2018 against 776 Crore in 2014. The
company has rose more than 50% in its net worth over a period of 4 years.

 The company has shown an annual growth of almost 20% in its net worth over the
operation.

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 REVENUE (2014-2018):

 The company has seen tremendous growth since its incorporation. This chart
illustrates the revenue of the company over the years 2014- 2018.

 The company has a revenue of 26435 Crore in 2018 which has almost doubled in over
the period of 4 years.

VOLUME (2014-2018):

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  The company has seen tremendous growth since its incorporation. This chart
illustrates the volume of the company over the years 2014- 2018.

 The company has a volume of 4.27 million metric tonnes in 2018 which has risen
from 2.78 million metric tonnes.

 The company has seen a surge in its volume in the year 2015, but after that it has seen
high growth years.

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EPRG FRAMEWORK

Ethnocentric Orientation:

 The practices and policies of headquarters and of the operating company in the home
country become the default standard to which all subsidiaries need to comply. There
are no changes in product specification, price and promotion measures between native
market and overseas markets.

 The general attitude of a company's senior management team is that nationals from
the company's native country are more capable to drive international activities
forward as compared to non-native employees working at its subsidiaries.

 This is practiced by the company since most of the products of the company are
business to business products. Hence, there is no need of a separate market strategy. It

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 values the home country more than the international customer; the company operates
in accordance with the home country.

 Adani Group has grown to become a giant Indian brand due to its ethnocentric
strategies.

 Condor Footwear, a subsidiary of Adani Group has ethnocentric orientation.

 Products from Adani Group that are ruling the market:

o Fortune Edible oil (largest in India) Adani Group controls the 20% of entire
edible oil market in India

o Refined and mustard oils

o Spices and chili

 Adani Group is an indigenous company hence prices are quite competitive. There are
products where the prices dip and give foreign brands the much-needed competition.
One-liter packet of refined oil from Adani Group costs somewhere between 70-80
INR while the cost of chilly and spices are equally competitive.

 Adani Group understands the power of Internet and they have built platforms for
selling their products online. The brand has also undertaken partnerships where they
can collaborate with other people and let them earn profit out of their products.

 Adani Group has grown to become a giant Indian brand. They have enrolled
celebrities like Ajay Devgan and Kajol for marketing their products. Adani has
always believed in keeping the brand game strong, they have spent quite some time
and money building a brand and now they are adamant about making it sustain.

Polycentric Orientation:

 In this approach, a company gives equal importance to every country’s domestic

market. Every participating country is treated solely, and individual strategies are
carried out. This approach is especially suitable for countries with certain financial,
political and cultural constraints.

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  This perception mitigates the chance of cultural myopia and is often less expensive to
execute when compared to ethnocentricity. This is because it does not need to send
skilled managers out to maintain centralized policies.

 The major disadvantage of this nature is that it can restrict career mobility for both
local as well as foreign nationals, neglect headquarters of foreign subsidiaries and it
can also bring down the chances of achieving synergy.

 The company uses a polycentric approach for the human capital management in
various countries.

 This not only improves the image of the company but also generates employment in
the operating country.

 For example, Pt Suar Harapan Bangsa, a subsidiary of Adani Group, is an Indonesian

company that operates according to the norms and traditions of the country it operates
in.

 Adani Global FZE is another subsidiary of Adani Group functioning in accordance

with the norms and traditions of the operating country Tanzania.

Geocentric Orientation:

 Geocentric approach encourages global marketing. This does not equate superiority
with nationality. Irrespective of the nationality, the company tries to seek the best men
and the problems are solved globally within the legal and political limits. Thus,
ensuring efficient use of human resources by building strong culture and informal
management channels.

 The company doesn’t differentiate among the global customers and there is
uniformity in the global strategy of the company.

 The company majorly deals in B2B services requiring less changes in the global
marketing of its product. The examples of Geocentric orientation are

o Adani Power

o Adani Ports and Special Economic Zone Ltd.

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 o Adani Shipping PTE Ltd.

o Adani Infra India Ltd.

o Adani Cementation Ltd.

o Adani Agri fresh Ltd.

o Adani Defense System and Technologies Ltd.

o Adani Township and Real Estate Company

o Adani Infrastructure Management Ltd.

o Mirage Impex Ltd.

o Adani Gas Holding Ltd.

o Adani Global

Regio centric Orientation:

 Regio centric Orientation is an approach adopted by a firm wherein it adopts a

marketing strategy across a group of countries, which have been grouped based on
their market characteristics; i.e., the market characteristics of these countries would be
similar.

 The similarities based on economic, cultural and political characteristics are

considered while grouping these countries to form regions. Here, the basic assumption
is that the needs of the potential customers in these countries would be similar.

 Adani Wilmar is one such subsidiary that focuses on the regio-centric orientation by
focusing and aiming the countries that are like the home country and capturing the
market.

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CONCLUSION:

The Adani Group has recently emerged as one of the major Indian conglomerates but at the
same time has witnessed immense growth from 2014 onwards. While infrastructure
companies are shedding their assets in order to survive, the Adani Group is growing despite
small profits.

In September and October 2018, Modi government awarded 126 gas contracts, to firms to set
up and operate piped natural gas stations and fuel stations across India. Adani group was the
largest winner of the bidding process – winning 25 bids – 15 on its own and 10 in a joint
venture with government-owned Indian Oil Corporation.

Not only the company is the country’s largest private port operator, coal importer, coal miner,
private power producer, city gas distributor and importer of edible oils, it has also expanded
into airports, urban water management, small and medium sector lending, power transmission
and distribution, data centers, aerospace and defense.

In 2013, Adani group had 44 projects in India, the number had grown to 92 by 2018. Between
these years, the group entered new sectors, acquired multiple projects and kept investing its
existing businesses. From its modest beginning, the group is now present in more than 260
cities across India. The growth witnessed is contrary to those of its competitors. Currently,
the company plays a major role in the Indian market but is still developing in the international
market. It doesn’t hold a major market base in the international market.

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REFERENCES

https://www.adani.com/

https://www.proptiger.com/Adani/Elysium

https://www.adanipower.com/

https://www.adanielectricity.com/

https://www.adanicapital.in

https://www.adaniwilmar.com/

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