The Indian economy is set into climb to a higher growth orbit onaccount of the government's far-reaching policy actions including demonetizationwhich delegalized almost 85% of the currency in the system in November 2016 and theimplementation of the Goods and Services Act (GST) that will have a far-reaching impact onthe economy through a unified tax regime. These structural resets are expected tostrengthen India's economic growth by at least 100-150 bps over the next 2-3 years.
Adani Enterprises was established with the singular objective to caterto the needs of sectors whose growth would directly fuel the development of the nation.The basket of businesses that are held by Adani Enterprises include coal trading andmining renewable energy agri-storage infrastructure and services edible oil and citygas distribution.
Anchored by a strong vision for the future each of these businesseshas been created on a strong foundation that will consequently facilitate rapid scale-up.This will be especially important to cater to the growing needs of a nation poised toretain its position as the fastest growing in the world.
Though coal is considered to have a negative impact especially amongenvironmental groups the case for the resource is unquestioned in reaching power to thedarkest corners of the country. The government is embarking on sweeping reforms thatinclude distribution utility re-energization through UDAY and giving an impetus toinfrastructure creation that will lead to a sustainable growth in then demand for power.The Government accomplished milestones to encourage the coal and the coal mining sectorwhile balancing it with charges that subsidise other greener sources of power generationas India begins to moderate its carbon footprint.
Over the past few years we have created a robust coal trading and coalmining business with integrated pit-to-port-to-customer capabilities'. Our coaltrading arm and our coal mine development and operations
(MDO) businesses are the largest in the Indian private sector. In asignificant achievement in 2016-17 we successfully conducted a public hearingfacilitated the expansion of our Parsa-Kente basin in Chhattisgarh following strongcommunity support. This validates our commitment to local development and spreadingprosperity beyond our factory gates. We also completed the groundwork for the potential30-year award of Mahagenco's GP II block that will add reserves of 24 MT coal.
Over the past year solar power has gained significant traction withthe result that power purchase costs through solar are lower than conventional energycosts. The Government's ambitious thrust on solar is visible in its Jawaharlal NehruNational Solar Mission (JNNSM) that was launched in 2009 and targets grid-connected solarprojects at 100000 MW by 2022 the country progressively generating 40% power fromrenewable energy by 2030 as per the Paris Accord.
I am proud to mention that Adani Power is India's largestrenewable energy IPP with a consolidated renewable portfolio exceeding 2.2 GW and withtargets of achieving 10 GW by 2021. During 2016-17 we took this vision ahead bycommissioning the world's largest solar plant with a capacity of 648 MW in Tamil Naduin a record eight months we also commissioned India's largest single-locationsingle-axis tracker solar plant of 100 MW capacity in Punjab.
In our agri-business we are proud to have established India'sfirst integrated bulk handling storage and logistics system for food grain. Aimed atminimizing post-harvest losses and improving operational efficiencies we provide aseamless end-to-end bulk supply chain to Food Corporation of India. With state-of-the-artsilos and rail terminals in major cities Adani is changing the future of food security inIndia. The rail infrastructure and bulk loading facility developed for this project hasset world-class standards for the country. Besides maintaining nutritional quality of foodgrain and reducing losses Adani silo terminals have benefitted farmers the governmentand end consumers across the public distribution system value chain. The overwhelmingsuccess of this model has led the Government to accept it as a future
The Government's ambitious thrust on solar is visible in itsJawaharlal Nehru National Solar Mission (JNNSM) that was launched in 2009 and targetsgrid-connected solar projects at 100000 MW by 2022 the country progressively generating40% power from renewable energy by 2030 as per the Paris Accord.
mode of storage and transportation of food grain. Apart from servingFood Corporation of India our agri business is also committed to modernise storageinfrastructure in the States by creating silo terminals. The Company has set upstate-of-the-art silo terminals in various parts of Madhya Pradesh benefitting numerousfarmers and generating savings for the Government of Madhya Pradesh. Farmers are linkeddirectly to these terminals where they deliver their crop. While extending this model toother parts of the country we established a wholly-owned subsidiary Adani Agri Logistics(Panipat) Limited to develop operate and maintain silos for the storage of wheat inPanipat Punjab the wheat bowl of the country on a DBFOO(design-build-finance-own-operate) basis under the public-private partnership (PPP) mode.We also pioneered the storage of apples under controlled atmospheric conditions and helpedstructurally alter the apple farming sector in Himachal Pradesh.
Our edible oil business under Adani Wilmar remains the largestcontributor to our agri business vertical; we continue to be the market leader in thissector. In a business where distribution is the key to reach out to as many customers aspossible the Company possesses the largest distribution network amongst all brandededible oil players in India touching more than one million outlets pan-India. Based on apreference for branded products in matters of health rising disposable incomes andgrowing per capita edible oil consumption the country's edible oil industry outlookappears bright. Adani Wilmar which entered the edible oil business in 1999-2000 is thelargest edible oil company in the country with a share of 19.5%. We are looking atreplicating this success in other branded food items such as rice and dal which arebigger categories. This growth plan will be met by the expansion of some of the existingunits based on their locational advantages particularly those close to the portsexpanding some contract units and entering into new arrangements at new locations. In theSouth which accounts for about 33% of the total branded market Adani Wilmar is aiming ata bigger market share by teaming up with some local mills. Importantly the country'sedible oil market size is worth Rs. 100000 crore and of this 55% is accounted by thebranded market. By diversifying and adding other branded food items the Company is primedto witness a big jump in its revenues over the next few years.
Our city gas distribution business continues to expand aided bysoftening crude oil prices. The Company's existing network of pipelines (in excess of5000 kms) provides piped natural gas to residential commercial industrial customers andcompressed natural gas to the transport sector in Ahmedabad Vadodara Faridabad andKhurja. With the Petroleum and Natural Gas Regulatory Board expected to augment the citygas distribution network to cover 240 cities by 2022 from the current 44 geographicalareas we are creating the necessary infrastructure by building a network of pipelinesacross
In a business where distribution is the key to reach out to as manycustomers as possible the Company possesses the largest distribution network amongst allbranded edible oil players in India with more than one million outlets pan-India.
seven cities in a joint venture with Indian Oil Corporation. We arealso drawing up plans to bid for another 10 cities with the objective to improveprofitability and market share.
At our Company social responsibility takes centre-stage. AdaniFoundation's core programs of education healthcare and livelihood touch a number oflives every day even as we build strong community goodwill and support. We feelprivileged to have been change agents in India's grassroots development.
Going into the future we are excited at the unfolding opportunitieswithin our range of nationally-important businesses. We are optimistic of businesssustainability and invite you to be a part of our journey.
With my best wishes