"DOUBT IS NOT A PLEASANT CONDITION BUT CERTAINTY IS ABSURD" WAS SAID BYVOLTAIRE THE FAMOUS FRENCH PHILOSOPHER. TODAY WHILE THE GLOBAL MARKETS SEEK SOME DEGREEOF CERTAINTY WITHIN A HIGHLY VOLATILE ENVIRONMENT INDIA HAS EMERGED AS A BEACON OF HOPEESPECIALLY AS THE OTHER BRIC NATIONS START TO SLOW DOWN OR STAY IN RECESSION. THE NEXTDECADE COULD WELL BE INDIA'S DECADE IN THE WORD
Adani Enterprises Limited was established with the objective to service sectors ofnational interest through presence in critical and often under penetrated spaces.
The businesses that currently constitute Adani Enterprise are coal trading and miningrenewable energy agristorage infrastructure and services edible oil and city gasdistribution. Adani Enterprises has focused on incubating businesses and driving the scalenecessary to make it self sustaining and at the right time unlock shareholder value byspinning it off into independent entities. Adani Ports Adani Power and Adani Transmissionare all successful examples of this strategy.
Today although anything related to coal stands on the wrong side of the commoditycycle and faces challenges from environmental groups there cannot be denying the fact thatcoal remains a critical commodity to serve our national interests to get competitivelypriced power to over 300 million people who do not have access to electricity. OurGovernment has done an outstanding job of putting appropriate policies in place toencourage the coal and the coal mining sector while balancing it with charges that helpsubsidise other greener sources of power generation as India leads a global transition tocontaining carbon foot-print.
Our coal trading and coal mining operations are efficient on account of our integratedcapabilities "pit to port to customer". Our coal trading arm and our coal minedevelopment and operations (MDO) businesses are the largest in the Indian private sector.
Over the past year solar power business has emerged as Adani Enterprise's newest andmost significant strategic area. We moved quickly and have just commissioned one of theworld's largest solar power plant of 648 MW (AC) capacity in Tamil Nadu. Besides this wehave a pipeline of over 1200 MW of wind and solar projects in different stages ofimplementation. To backward integrate with our generation capacity we are also buildingIndia's largest solar photovoltaic manufacturing facility with a capacity of 1.2 GW cellsand modules at Mundra SEZ. The first phase of this plant will get commissioned by Decemberof 2016. This is yet another testimony of our focus on building domestic capabilities tohelp reduce our nation's dependence on imports. Also in line with our ambition to becomeone of the largest renewable players in the world we have initiated a first-of- its-kindsolar power park project and have signed a joint venture agreement with the Rajasthangovernment to commission a 10000 MW solar park by 2022. The park is expected to attractinvestments of over RS 60000 crores.
Our Agri business continues to grow strongly and is a sector that we see of significantnational importance.
We are incorporating scientific methods for food storage and have commissioned inMadhya Pradesh an additional 3 lakh tonnes of agro storage capacity under a 30 yearconcession. We are also engaged in setting up a 75000 tonne storage facility for the FoodCorporation of India at two additional locations in Punjab and Bihar. The recommendationsof Shanta Kumar committee for the creation of 10 million tonnes of silo infrastructure toenhance India's food security is expected to provide additional opportunities for thisbusiness.
We also pioneered the storage of Apples under controlled atmospheric conditions andfundamentally altered the apple farming sector in Himachal Pradesh. The Company isincreasing this storage capacity by 15% in 2016-17.
Edible oil remains the largest contributor to our agri business vertical and wecontinue to be the market leader in this sector. The Company possesses the largestdistribution network amongst all branded edible oil players in India comprising of 93stock points over 5000 distributors and more than one million outlets pan-India. Withincreasing disposable incomes per capita oil consumption has more than doubled from 7 kgsin the mideighties to 16 kgs today. Edible oil imports are expected to increase by over 1million tonnes a year as India's oil seeds production continues to stagnate. We intend tocapitalise on this opportunity by continuing to expand our oilseeds refining capacities oncoastal locations. We are increasing capacities at our Mundra and Hazira refining units aswell as creating greenfield facilities at Hazira and Dhamra In addition to oil we arealso setting up a rice bran solvent extraction plant and a packing plant in Chhattisgarh.An essential part of this production will be to meet the soaring demand of the heath basededible oils Vivo for Diabetes care and Rice Bran Health for cardiac care).
Our city gas distribution business continues to expand aided by softening commoditycycle particularly in crude oil. The Company's existing network of pipelines (in excessof 5000 kms) provides piped natural gas (PNG) to residential commercial industrialcustomers and compressed natural gas (CNG) to the transport sector in Ahmedabad VadodaraFaridabad and Khurja. With the PNGRB expected to significantly increase city gasdistribution to 240 cities by 2022 from the current 44 geographical areas we areproactively creating the necessary infrastructure by building a network of pipelinesacross seven cities in a joint venture with Indian Oil Corporation. We are also drawing upplans to bid for another 10 cities with the objective to continue to improve profitabilityand market share.
While the business continues to perform strongly our proud moments come from thestories we hear about the lives we have the opportunity to influence. Adani Foundation'seducation programs have already touched the lives of over 150000 young students itshealthcare programs touch the lives of over 200000 people every year the sustainablelivelihood programs have made over 35000 people and their families self-reliant and theFoundation has improved the lives of over 500000 people across 177 villages by helpingprovide better roads drinking water and other basic facilities. We feel privileged tohave been the change agents.
The days ahead are exciting and I would like to thank our customers employeesshareholders government authorities bankers and the Board for making 2015-16 anotherexcellent year.
Chairman Adani Group