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Adani Enterprises Ltd.

BSE: 512599 Sector: Others
NSE: ADANIENT ISIN Code: INE423A01024
BSE 00:00 | 12 Aug 2864.35 31.10
(1.10%)
OPEN

2845.95

HIGH

2870.45

LOW

2834.60

NSE 05:30 | 01 Jan Adani Enterprises Ltd
OPEN 2845.95
PREVIOUS CLOSE 2833.25
VOLUME 24320
52-Week high 2870.45
52-Week low 1344.60
P/E 359.84
Mkt Cap.(Rs cr) 326,536
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2845.95
CLOSE 2833.25
VOLUME 24320
52-Week high 2870.45
52-Week low 1344.60
P/E 359.84
Mkt Cap.(Rs cr) 326,536
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Adani Enterprises Ltd. (ADANIENT) - Chairman Speech

Company chairman speech

Optimism comes from Resilience. Resilience comes from Belief. Belief is

Optimism uncharted waters would be

To say the world is in an understatement.

The adverse impact of a mix of the pandemic armed conflict and climatechange has exposed the fragility of the global system that we had largely considered ashaving competently learned how to manage itself. It has now dawned on governments acrossthe world that the implications of this multidimensional crisis are hard to predict maycomplicate further and that signs of its damaging effects — uncontrolled inflationdisrupted food supplies increased human displacement exposed healthcare machinerystalled education levels and faltering job creation ecosystems

— are evident and testing the resilience of every nation.

Resilience is defined as the characteristic that makes it possible torebound into shape; it is the ability to withstand crises; it is the ability to faceuncertainties with curiosity and optimism. This capacity to rebound is becoming harder tomodel or predict as the crises drivers are becoming harder to anticipate and increasinglyintermingled. While there is always room for debate there can be no denying that lookingback

India has emerged far better in its handling of the Covid-19 crisisfrom the humanitarian and economic perspectives than most developed economies. India hasbeen able to take a mature approach to the ongoing conflict and has been one of the mostaggressive nations in terms of establishing a renewable energy target for itself; whiledoing all of this India has also emerged as the fastest growing major economy.

The overarching takeaway is that despite global instability India hasfared better than almost any other major nation. While there were situations over the past24 months when it appeared that events were getting out of control we must give creditwhere credit is due India was able to bounce back each time a testimony to ournation's resilience. In my view utopian as some may call it India's resiliencecomes from its historic culture that has been shaped across thousands of years a model ofco-existence that actually works and the philosophy of ‘vasudhaiva kutumbakam'which means that the world is one family.

A culture of resilience

It is India's inherent resilience that provides our nation itsunderlying optimism. My belief in our nation has never been higher. To use a cricketinganalogy we are now playing on one of the strongest home grounds and on one of the firmestpitches that has ever existed. This pitch is expected to remain firm for several decades.

Optimism comes from resilience.

Resilience comes from belief. And belief is optimism.

In our case it is this resilience optimism and belief that drives us.The primary reason for the success of the Adani Group comes from our alignment with theIndia growth story. Never have we shied from investing in India never have we slowed ourinvestments and never have we feared to enter adjacent sectors – our resiliencecomes from this unshakeable belief and confidenceinthe our fellow Indians and the futureof India.

During the journey of more than 25 years there were uncharted waterswe entered and multidimensional crises that we faced. While we may have stumbled a fewtimes we were always able to get back on our feet. Our ability to rise after everystumble meant we grew bigger and stronger by drawing on our experience. It is theseexperiences that have enriched us with resilience and laid the foundation of our optimism.

At a fundamental level our strategy is linked to the strategy of thenation. Over the past decades we have always believed in the policies announced by theGovernment have continued to invest through all economic cycles watched for emergingsectors critical for the country's growth and entered new sectors with a confidencein our learning and operating abilities.

We have grown adjacency by adjacency without getting hung up ontextbook business models.

We have built infrastructure anticipating a far larger and greaterIndia; this confidence has paid dividends.

The sum of these investments of the past empowered us to address thepresent crisis and set us up stronger to handle any new crisis in the future. It is thisfuture that unfolded over the period

2021-22. This was a year when we announced ourselves to the world. In2021-22 our confidence in our ability was validated. Our belief in our past defines ourability to believe in our future translating into the big bets that we make.

Preparing to go ‘green'

The best recent evidence for our confidence and belief in the futurehas been the USD 70 billion investment we announced in facilitating India's‘green' transition. We are already one of the world's largest developers ofsolar power. Our strength in renewables will empower us enormously in our effort to make‘green' hydrogen the fuel of the future; it will equip us to produce the leastexpensive ‘green' electron and the least expensive hydrogen. We are leading therace to transform India from a country that is over-reliant on imported oil and gas to acountry that can become a net exporter of clean energy. This would be a‘never-done-before' transformation in fortunes in a stunningly short period oftime across the largest scale. This transformation will help reshape India's energyfootprint in an extraordinary way. While we are now a major global renewable energyplayer we made remarkable progress in several other industries. In one stroke we havebecome the largest airport operator in India.

Around the airports where we operate we are engaged in the adjacentbusiness of building aerotropolises and creating localised community-based economiccentres. We have made entries in sectors ranging from data centres super apps andindustrial clouds to defence and aerospace metals and materials – all aligned withthe Government's vision of an Atmanirbhar Bharat. We continue to grow as builders ofIndia's infrastructure winning some of the largest road contracts in the nation andgrowing our already substantial market share in businesses like ports logisticstransmission and distribution city gas and piped natural gas. The successful IPO of

Adani Wilmar made us the largest

FMCG company in the country and we are now the second largest cementmanufacturer in

India. This year our combined Group market capitalisation exceeded USD200 billion. We raised billions of dollars from the international markets a validation ofconfidence in the India and Adani growth stories. This growth and success have beenrecognised around the world. Foreign governments now come to us with proposals to work intheir geographies and help build their infrastructure.

The result is that in 2022 we laid the foundation to seek a broaderexpansion beyond India's boundaries.

Robust results record numbers

The growth in our market capitalisation has been supported by a robustand sustained growth in our cash flows. Our focus on operational excellence and accretivecapacity addition delivered across our portfolio an

EBITDA growth of 26%. Portfolio EBITDA stood at H42623 crore. Thisgrowth was diversified and reflected across our businesses the results speaking forthemselves.

Group highlights

• • Our Utilities portfolio grew 26%

Our Transport and Logistics portfolio grew 19%

Our FMCG portfolio grew 34%; and

Our Incubator business represented by AEL grew 45%

The high growth of our incubator AEL provides the group with a robustfoundation for the continued development of new businesses for yet another big decade.AEL's unique business model has no parallel and we intend to leverage this further.

Segment highlights

AGEL

Adani Green Energy Limited added 1940 MW operationalcapacity in FY 21-22 (greenfield commissioning 200 MW and inorganic addition 1740 MW)

Adani Green Energy Limited's solar capacity utilisationfactor (CUF) improved 130 bps YoY to 23.8% and wind CUF improved 400 bps YoY to 30.8% inFY 21-22

ATL

Adani Transmission Limited added 1104 ckm to its networkreaching 18795 ckm and sold a record 7972 million units during the year.

APSEZ

Adani Ports and Special Economic Zone Limited cargo volumegrew 26% to 312 MMT in FY 21-22; the journey from

200 MMT to 300 MMT in cargo volume was achieved in the record time ofjust three years.

Adani Ports and Special Economic Zone Limited also handledrecord container volume of 8.2 million TEUs a growth of

14%

ATGL

Adani Total Gas Limited added 117 CNG stations 556commercial 154 industrial and 85840 domestic customers a combined volume of 697 MMSCM

(CNG+PNG)

Strategic highlights

Adani Green Energy Limited completed the acquisition of

Softbank's 5 GW renewable energy portfolio

Adani Enterprises Limited commenced operations of its

Bravus mine in Australia.

Adani Enterprises Limited took over operations of theGuwahati

Jaipur and Thiruvananthapuram airports and completed the acquisitionsof MIAL and NMIAL. While we can look back and feel content we are only now gatheringmomentum. What we have built over two decades is India's largest integratedinfrastructure business based on a rapid extension into adjacent businesses. The result isthat this is now being transformed into an integrated ‘platform of platforms'that combines energy with logistics. This is moving us closer to an unprecedented accessto the Indian consumer. I know of no company that has such a business model with potentialaccess to an unlimited B2B and

B2C market for the next several decades.

A landmark year

It is here that I also want to take a moment to reflect on 2022 as ayear with special personal meanings. It represents the

100th birth anniversary of my inspiring and role model father

Shri Shantilal Adani and my 60th birthday. To mark this milestone theAdani family came together and decided to contribute H60000 crore towards charitableactivities related to healthcare education and skill development especially for ruralIndia. These three areas should be seen holistically rather than separately because theycollectively form the drivers for an equitable and future-ready India. We have anopportunity in India to decisively lift tens of millions of people permanently out ofpoverty. We owe it to ourselves and our country to do everything we can to catalyse thatprocess. Our experience in large project planning and execution and the learnings from theongoing work done by the Adani Foundation will help us uniquely accelerate and implementthese programmes across societies that need them the most.

The road ahead

Getting back to the theme of optimism as a driving force for a societyMartin Seligman often referred to as the ‘father of positive psychology' wrotein the Harvard Business Review that he came to his insights into the power of optimism‘the long hard way through many years of research on failure andhelplessness.' Essentially he discovered over several years of studies thatresilient people develop the courage of interpreting setbacks as temporary local andchangeable. A quote attributed to Winston

Churchill echoes Seligman's findings on resilience. "Successis not final" Churchill is supposed to have said "failure is not fatal: it isthe courage to continue that counts." The reason I have always been inspired bywriting and thinking around resilience is because as an entrepreneur my philosophy hasalways been to keep trying. I am an incurable optimist. My optimism is founded on mybelief in our ability to create a better future. This is why I always argue that India hasbecome one of the greatest countries in which to be an entrepreneur. The prospects andpotential for the future are dazzlingly bright. In India I see a real relish to finallyreclaim our former economic stature and our position as a pivotal force in global affairs.There will be bumps along the road as has been the case in the past and is expected tobe the case in the future. However there cannot be any doubt that the largestmiddle-class that will ever exist augmented by an increase in the working age andconsuming population share will have a positive impact on India's growth rates muchin line with the demographic dividend that India enjoys.

I have no reason to believe that over the next two decades we will notsuitably address this challenge. It is a virtuous cycle that is driven by the growth inthe middle-class population and India today enjoys the world's firmest pitch on whichto bat.

Gautam Adani
Chairman

.