Adani Enterprises Limited - AceAnalyser Meet/112599_20091231.pdf · Adani. Enterprises . Limited. Coal » Power ... including those relating to general business plans and strategy

1lAdani Enterprises

Enterprises LimitedAdani

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2lAdani Enterprises

DisclaimerCertain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,”including those relating to general business plans and strategy of Adani Enterprises Limited (“AEL"), its future outlook and growth prospects,and future developments in its businesses and its competitive and regulatory environment. Actual results may differ materially from theseforward-looking statements due to a number of factors, including future changes or developments in AEL's business, its competitiveenvironment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatoryand social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or asolicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor shouldsubscribe for or purchase any of AEL's shares. Neither this presentation nor any other documentation or information (or any part thereof)delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of AEL.

AEL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respectto, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in thispresentation, unless otherwise specified is only current as of the date of this presentation. AEL assumes no responsibility to publicly amend,modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unlessotherwise stated in this document, the information contained herein is based on management information and estimates. The informationcontained herein is subject to change without notice and past performance is not indicative of future results. AEL may alter, modify orotherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. Thispresentation may not be copied and disseminated in any manner.

THE INFORMATION PRESENTED HERE IS NOT AN OFFER OR SOLICITATION OF ANY OFFER TO PURCHASE OR SELL ANY EQUITY SHARES OR ANYOTHER SECURITY OF AEL.

“The Company is proposing, subject to market conditions and other considerations, a rights issue of its equity shares and has filed a [DraftLetter of Offer with SEBI/ Letter of Offer with the Stock Exchanges, as the case may be]. The [Draft Letter of Offer/ Letter of Offer] isavailable on the website of SEBI at www.sebi.gov.in and the website of the Lead Managers at www.icicisecurities.com, www.enam.comand www.idfcsski.com”

This presentation is not for publication or distribution, directly or indirectly, in or into the United States, Canada or Japan.

These materials are not an offer or solicitation of any offer of securities for purchase or sale in or into the United States, Canada or Japan.

3lAdani Enterprises

3,8894,916 5,157

0

2,000

4,000

6,000

2006-07 2007-08 2008-09

40

92 99

0.0%

1.0%

2.0%

3.0%

0

50

100

150

2006-07 2007-08 2008-09

Adani Enterprises – An Introduction• Flagship listed company of the Adani Group

• Headquartered in Ahmedabad was founded as a partnership firm in

1988 under the leadership of Mr. Gautam S. Adani and currently

employs approx 3,000 people

High Quality Portfolio of Assets

• 6,600 MW of power generation assets under development &

implementation (1)

• 3,300 MW of power generation asset under planning (1)

• Mining operations in India and Indonesia.

• Over 45 mm sq. ft. real-estate development in Mumbai and Gujarat

• Largest coal importer in India with 18.7 MM MT imported in 2009.

• Wide-array of investments across high-growth businesses such as

oil & gas exploration, bunkering, city gas distribution, edible oil

manufacturing, agri-product storage and grain silos

• Shareholding pattern, as on September 30, 2009: Promoter

74.69%, FIIs 11.70%, Public 12.13%, MFs 1.48%

Market Capitalization INR MM $ MM(3)

Adani Enterprises (AEL)(4) 210,317 4,506

Adani Power (APL) (4) 210,155 4,502

Market Confidence

Consolidated Total Revenues(2)(3)

Profit After Tax(3)

(US$ MM)

(US$ MM) Margin (%)

Steady Growth in Revenues and Margins

CAGR (07-09): 70.7%

CAGR (07-09): 24.5%

Notes1.Under development & implementation includes Mundra 4,620 MW, Tiroda 1,980 MW & Under

planning includes Dahej 1,980 MW & Kawai 1,320 MW.2. Including other income3. Exchange rate of US$1 = INR43.59 on 31/03/2007, INR39.97 on 31/03/2008, INR50.95 on

31/03/2009 and INR46.68 on 16/11/2009 from RBI Website.4. Market cap – as on 16/11/2009

AEL Track RecordAEL : Snapshot AEL : The Businesses

Business Profile

4lAdani Enterprises 4l

Adani Enterprises Ltd.

Energy

“Mfg. of Edible Oil”(50:50 JV with WilmarGroup of Singapore)

“CASF for Fruits & Vegetables”(3)

(100% holding)

Real Estate

“Shantigram” – Ahmedabad(71% holding)(2)

“BKC” – Mumbai(95% holding)(2)

“Khatau” - Mumbai(5)

(57% holding)(2)

“Oil & Gas”(65:35 JV with

Welspun Gujarat)

“Power Generation”

(70.25% holding)Public listed since Aug. 2009

“Indian Coal Mining” Operations(As MDO)(4)

“IndonesianCoal Mining”(100% holding)

“City Gas Distribution”

(100% holding)

Infrastructure Agro

Subs

idia

ries

/ Joi

nt V

entu

res

Soya CastorMeal & Oil

Grains & Pulses

Trading Operations(1)

“Bunkering”(50:50 JV with

Chemoil of Singapore)

“Grain Silos”(100% holding)

Backbone of AEL Businesses Ship Owning (70.25% holding)

Business Profile: Strong Diversified Portfolio

CoalPower

Notes1. AEL also has trading activities in metals and minerals2. Reflects economic ownership adjusted for AEL’s 95% ownership in the real estate subsidiary Adani Infrastructure Developers Pvt. Ltd. 3. CASF is Controlled Atmospheric Storage Facility4. MOD = Mine Developers & Operators5. Khatau Makanji Spinning & Weaving Mill’s property was acquired through BIFR. The property is in Borivalli & Byculla - Mumbai.

Business Profile


5lAdani Enterprises

AEL: Key Investment Highlights


Robust Growth Pipeline across

Business Verticals

Experienced and Dynamic

Management Team

Well-positioned to leverage India growth story

Proven Execution and Value-creation Track-record

Diversified Portfolio of High-quality Assets

6

1

2

35

Market Leadership position in Coal & Agri-trading and

Port business

4

Adani Enterprises

6lAdani Enterprises

Adani Enterprises - Strong Growth Fundamentals

Increasing Focus on Asset Based Businesses1

Proven Financial and Execution Track Capabilities3

Diversified Presence in Fast Growing Sectors2

Strong Fundamentals4

Business Profile


7lAdani Enterprises

1. Increasing Focus on Asset Based Businesses: AEL’s Strategic TransformationBusiness Profile


Trading Business

• Metals & Minerals

• Coal

• Power

• Oil & Petroleum Products

• Agricultural Products

Building on Trading and Domain Expertise to Develop Attractive Portfolio

of Steady Infrastructure Assets

Oil & Gas• City Gas Distribution : 8 Cities• Bunkering• Oil & Gas exploration : 6 Blocks

Real Estate• Projects proposed to be developed in

Ahmedabad & Mumbai aggregating a saleable area of approximately 45 MM Sq. Ft.

Agro• Refining capacity of c.3,590 tpd;

crushing capacity of c.5,650 tpd and hydrogenation capacity of c.525 tpd

• Controlled Atmospheric Storage Facility (CASF) for fruits and vegetables

• Grain silos

Power Generation• 6,600 MW under implementation• 3,300 MW planned• Captive Shipping Fleet

Coal Mining:• Arrangement to Mine Coal in Indonesia• Arrangement to Operate & Develop Coal

Mines in India• Allocation of captive coal blocks

Asset Ownership

8lAdani Enterprises

Source: Ministry of Coal Report for coal sector reforms and industry reports

2. Coal: Largest Importer of Coal in India

Supplier to Top Indian Energy PlayersAEL’s Increasing Thermal Coal Imports

AEL’s Market Shares Evolution

MM MT

7.7 8.110.2

18.7

0

7

14

21

FY06 FY07 FY08 FY09AEL’S Thermal Coal Imports

MM MT

FY06 FY07 FY08 FY09(1)

Infrastructure AgroEnergy

AEL39%

Others61%

Others68%

Others64% Others

51%

AEL32%

AEL36%

AEL49%


Note1. Based on total estimated non coking coal import of 38 MM MT in India in FY09 as per the industry research estimate

Coal Trading

9lAdani Enterprises

2. Coal Mining: Access to Quality Reserves

Notes

1. AEL has access to Bunyu coal mine at East Kalimantan, Indonesia for captive consumption for Adani Power Ltd

2. AEL has entered in to 74:26 JV with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for coal extraction in Parsa East and Kente Basan Coal Blocks

3. Received Letter of Intent (LoI) for Machhakatta Mine Block & Letter of Award (LoA) for Parsa Mine Block.

• Arrangement to mine coalin Indonesia.(1)

• Arrangement to operate &develop coal mines inIndia

Parsa - Kente(2) Machhakata(3) Parsa(3)

Location Chhattisgarh, India

Orissa,India

Chhattisgarh, India

Block Area(Sq Km) 27.67 20.43 12.52

Average Grade F Grade F Grade F Grade

Overall Stripping Ratio 5.16 2.5 6.25

Expected Commencement ofOperation

CY 2010 CY 2012 CY 2013

Coal Mining Operations

Machhakata

Parsa - Kente

Locations of Indian Coal Mining Operations


Parsa

Infrastructure AgroEnergyCoal Mining

10lAdani Enterprises

Location Map of Power Generation Assets Under Implementation Projects Pipeline

2. Power Generation: Capacity Ramp-up and PPA Arrangement

Utility PPA MW Expected Date(1)

Tariff Range INR/ KwH

GUVNL(2) 500 Feb. 2010 2.81 - 3.42

GUVNL(2) 500 June. 2010 2.81 - 3.42

GUVNL(2) 1,000 Feb. 2012 2.35

UHBVNL(3) and DHBVNL(4)

1,424(5) Feb. 2013 2.35 - 3.26

MSEDCL(6) 1,320 Sep. 2012 2.55 - 3.47

Under Development & Implementation

1,980 MW

Tiroda

Kawai

Under Development & Implementation

4,620 MW

Planned: 1,320 MW

Mundra

Planned: 1,980 MW

Dahej

Notes1. Expected date PPA start date2. GUVNL is Gujarat Urja Vikas Nigam Limited3. UHBVNL is Uttar Haryana Bijli Vitran Nigam Limited

4. DHBVNL is Dakshin Haryana Bijli Vitran Nigam Limited5. 712 MW each to UHBVNL and DHBVNL6. MSEDCL is Maharashtra State Electricity Distribution Company Limited


990

990

1,980

2,640

6,600

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY10E FY11E FY12E FY13E Peak Capacity

MW

Mundra Phase I - 660 Mundra Phase II - 330

Mundra Phase II – 330 Mundra Phase III - 660

Mundra Phase IV – 1,320

Tiroda Phase I – 660 & Phase II - 660

Infrastructure AgroEnergy

Mundra Phase III – 660

Mundra Phase IV – 660

Tiroda Phase I – 660

Power

Cumulative

990 MW

Cumulative

1,980 MW

Cumulative

3,960 MW

Cumulative

6.600 MW


1.81.3

2.8

0.0

2.0

4.0

FY07 FY08 FY09

2. Power Generation & Trading: Financial Closure and Physical Status

Notes1. To be sourced from captive coal mine in Indonesia2. Financial Closure achieved for Mundra Phase !, II, III , IV & Tiroda power plants

• Awarded category ‘I’ inter-state license for trading in power

Power Traded

Power Units Traded by AELBn Units

Power Generation – Projects under implementation Power Trading


Infrastructure AgroEnergyPower

Name, Location

Capacity (MW)

Cost (INR MM) (2)

Equity (INR MM)

Debt(INR MM)

Fuel Linkage Land and Water Tie-up

Off-take Arrangement

Transmission Network

MundraPhase I & II

1,320(4 x 330

MW)

43,500 7,060 36,440 • Agreement with AEL (1)

• Leased 294 hectacre at MPSEZ

• Sea-water intake channel. Setting up 27 MLD desalination plant

• 1,000 MW with GUVNL

• 433 km transmission line to PGCIL Gandhinagarstation completed

MundraPhase III

1,320(2 x 660

MW)


• Leased 294 acre at MPSEZ


• 1,000 MW with GUVNL

• 433 km transmission line to PGCIL Gandhinagarstation completed

Mundra Phase IV

1,980(3 x 660

MW)


• Coal linkage for 1,366 MW received from MCL

• Leased 294 acre at MPSEZ


• 1424 MW with (712 MW with UHBVNL & DHBVNL each)

• 800 km transmission line to Mohindergarhin Harayanaunder construction

Tiroda 1,980(3 x 660

MW)

92,630 18,526 74,104 • Coal Linkage for 1180 MW Received from SECL & WCL

• Leased 210 hectare and applied for 192 hectare additionally

• Water from Waiganga river, 20 kms from site

• 1320 MW with MSEDCL

• 140 km tranmission line to Koradi in Maharashtra and 210 km line to Wardha in Maharashtra under construction

Aggregate 6,600 283,690 56,926 226,764


• Awarded two onshore blocks through a consortium with majority stake in Nelp VI (Area of 75 Sq. Km at Bharuchand Vadodara, Gujarat and area of 95 Sq. Km located at Marghreita, Assam)

• Also been awarded two onshore blocks by Govt. of Thailand with total surface area of 3,975 Sq. Km and 3,947 Sq. Km respectively

• New off shore block located at northwestern part of the Surat depression of Mumbai Offshore Basin (Area: 1,191 Sq. Km)

• A block awarded at Gulf of Suez, Egypt, in partnership with GSPC (60:40)(1)

Oil & Gas Exploration (65:35 JV with Welspun group of Gujarat)

2. Energy: Additional Growth Drivers

• Current Business Operation : Distributing compressed and piped natural gas in Ahmedabad, Vadodara and Faridabad

• Future Ramp Up : Operations to be expanded in the cities of Khurja, Noida, Lucknow, Jaipur, & Udaipur

• Total Planned Steel Ring Network of 498 kms and 97 CNG stations across 8 cities

• Present Status: 56 CNG Stations; 58,000 Domestic; 400 Industrial and 510 Commercial connections. Steel Ring Network of over 313 kms and PE network of over 1600 kms.

City Gas Distribution


• Planning bunkering on pan India basis, starting with Mundra Port

• Existing bunker fuel business from Mundra Port

• Strategically located at Gulf of Kutch, which marks presence of leading oil companies including Reliance Petro,

IOCL, BPCL, HPCL, Essar

Ship Fuelling (50:50 JV with Chemoil Energy Ltd of Singapore)

Infrastructure AgroEnergyOther ventures

Note:

1. In the block of Egypt AWEL is a non operator & 40% stake owner


• Prime commercial asset in Central Business District of Mumbai

• Proximity to MIDC-Andheri, Domestic and International Airports

• Approx 17,743 Sq. Mt. of land out of 22,534Sq. Mt received. 1.5 MM Sq. Ft. of development

• Hafeez Contractor appointed as architect

• Excavation and Piling work completed and the Structural work has started

Bandra-Kurla Complex (BKC) - Mumbai, Maharashtra

• 60:40 sharing with Marathon Group

• Development: Borivali 1.2 MM Sq. Ft. & Byculla 0.7 MM Sq. Ft

• Received municipal clearances to start demolition of existing structure

Khatau - Mumbai, Maharashtra

2. Real Estate Portfolio

• 75:25 sharing with Saumya Construction

• Strategically located at a distance of approximately 10 kms. from Ahmedabad

• Approx 41.6 MM Sq. Ft. of development

• Residential and commercial units to be constructed including Golf course, Cricket field, Athletic field, Socialclub, Bus terminals, Schools, Hospitals, Residential Bungalows and Commercial Office Space

“Shantigram”, Integrated Township at Ahmedabad, Gujarat


Infrastructure AgroEnergyReal estate


• Developed an integrated controlled atmosphere storage facility (CASF)

• 3 locations at Rohru, Sainj & Rampur in Himachal Pradesh (Total storage capacity of 18,000 MT)

• “FARM-PIK”, the B2B and B2C retail brand of Adani Agri Fresh is a procurer of apples from Himachal Pradesh

Agri Product Storage Facilities: Agri Fresh and Agri Logistics

• Agri Logistics to develop vertical silos to store grains and bulk movement in top loading / bottom dischargewagons on BOO basis for Food Corporation of India (FCI) over a long term contract of 20 years from 2004

• Total storage capacity of 550,000 MT (400,000 MT at base depot & 150,000 MT at distribution depot) forgrain silos

• Leading trader in diversified agro commodities with emphasis on entire range of food grains, pulses & castor

• Leading importer of pulses and leading exporter of castor oil from India. Handled over [1 MM MT] of cargo inFY 2009

Grain Silos and Agro Trading

2. Established Agro Platform

• 50:50 sharing with Wilmar Group of Singapore

• India’s largest selling Edible Oil brand (“Fortune”) commands 11.55% Market Share (Mar -09, Nielsen Report )

• Refining capacity of c.3,590 tpd; crushing capacity of c.5,650 tpd and hydrogenation capacity of c.525 tpd

• All India Refined Oil Market Share of 19% with Highest Retail Penetration of 41%

• Our other brands include “Raag”, “Jubilee”, “Avsar”, “Sania”, “King’s”, “Bullet” and “Ivory” etc.

Manufacturing of Edible Oil

Note1. As per the Nielsen Advisor Share report


Real Estate AgroEnergyAgro businesses


Leveraging Our Strengths….


Real Estate AgroEnergyMundra Port

Mundra Port & Special Economic Zone Limited.

Bulk (Dry & Liquid) – 8 Berths

Container – 4 Berths Crude – 1 SPM

Note : The Board of Directors have approved the proposal to evaluate the possibility of merging the promoter entities of Mundra Port and Special

Economic Zone Ltd (MPSEZ) with Adani Enterprises, subject to various approvals.

Efficient Cargo Handling

• India’s largest private sector multi-product port (deepest draft ~ 17

MT on western coast) with multiproduct SEZ and logistics facilities

at Mundra.

• 800,000 sq m of dry bulk storage area and tank farms with storage

capacity of 342,000 KL helps AEL in easier movement of coal, agro

& bunkering cargo.

• Developing ports at Dahej, Murmugao & Hazira(*)

• Excellent road, rail, air & pipeline connectivity to key markets in

North and West India.

• Multiproduct SEZ with clients such as Suzuki, Thermex, Renuka

Agri-Venture, Textile Park & Adani Power. Envisaged to spread

over 32,000 acres of land.

• Cargo handled in FY 2008 – 09 is 36 MMT

• Addition of 50 MTPA coal terminal capacity to handle coal for Adani

Power’s 4,620 MW and Tata’s Mundra UMPP 4,000 MW power

plants to be operationalized by Oct, 2010

* Letter of Intent has been received from Hazira port


3. Proven Financial and Operating Execution Capabilities


Financial MilestonesOperational Milestones1994

IPO AEL

2007 IPO MPSEZ

2009IPO APL

IPO History

Note:

(1) Received LoI for Machhakatta Mine Block & LoA for Parsa Mine Block

(2) AEL has issued a bonus shares to the equity share holders in the ratio of one equity share for every

one equity share held with a record date of 11th December 2009

Coal Business Commenced1998

Edible Oil Refinery Commenced2001

1994 IPO of AEL

50:50 JV with ChemoilGrain Silos Operationalised2008 One O&G block in India, Thailand & Egypt

Allotted Parsa - Kente Mine Blocks2007 FCCB USD 250 MM Two O&G block in India & One in Thailand

Initiated Indonesian Mining Operations Initiated CASF Operations2006

Allotted Machhakata & Parsa Mine Block (1)2009 IPO of APL Bonus Issue in the ratio of 1:1 (2)



Indian Coal Mining Operations

Operational Track Record Financial Track Record




Indonesian Coal Mining Operations





Power Generation and Transmission





Manufacturing of Edible Oil




Agri Product Storage Facilities: Agri Fresh





Agri Product Storage Facilities: Agri Logistics






Mundra Port




4. Delivering Steady Growth in Revenue and Margins(1)



7.31

14.12

19.16

7.9010.42

0

8

16

24

2006-07 2007-08 2008-09 H1 FY09 H1 FY10

2,7603,697

1,733

5,047

2,070

0

2,000

4,000

6,000

2006-07 2007-08 2008-09 H1 FY09 H1 FY100.0%

1.5%

3.0%

4.5%

4,744

7,547

10,166

4,872

6,861

0.0%

2.5%

5.0%

7.5%

0

4,000

8,000

12,000

2006-07 2007-08 2008-09 H1 FY09 H1 FY10

CAGR (07-09): 46.4%

CAGR (05-09): 70.7%

Earnings Per Share (Diluted)(3)

EBITDA

Profit After Tax(INR)(INR MM) PAT Margin (%)

(INR MM) EBITDA Margin (%)

169,532196,487

262,729

109,300 116,920

0

100,000

200,000

300,000

2006-07 2007-08 2008-09 H1 FY09 H1 FY10

Consolidated Total Revenues(2)

(INR MM)

0.16 0.35 0.37US Cents

3889 4,916 5,157US $ MM 108.8 188.8 199.5

39.7 92.4 99.0US $ MMNotes1. Exchange rate of US$1 = INR43.59 on 31/03/2007, INR39.97 on 31/03/2008, INR50.95 on 31/03/2009, INR46.94 on 30/09/2008 and INR

48.04 on 30/09/2009 from RBI Website.2. Including other income3. Diluted numbers of shares calculated, assuming outstanding FCCB conversion for respective year

CAGR (07-09): 24.5%

CAGR (05-09): 37.9%

2,329 2,434 103.7 142.8

44.1 57.4 0.16 0.21


Consolidated Balance Sheet as at March 31, 2009

Sources of Funds Amount (INR MM) Amount (US$ MM) (1)

Net-worth 30,189 595

Minority Interest 4,769 94

Secured & Unsecured Loans 120,842 2,382 (2)

Deferred Tax Liabilities 522 10

Total 156,322 3,081

Uses of Funds Amount (INR MM) Amount (US$ MM)(1)

Fixed Assets 88,704 1,748

Investments 4,647 91

Cash 25,832 509

Other Current Assets 82,028 1,617

Less: Current Liabilities 45,128 889

Miscellaneous Expenditure 239 5

Total 156,322 3,081

Notes1. Using exchange rate of US$1 = INR50.73 as on March 31, 2009 from FactSet2. Including Adani Power loans

4. Strengthened Balance Sheet




Going Forward…


Note1. Expected year for completion of construction / start of revenue generation2. Proposed Rights Issue & QIP are subject to approval.

Expected Financial MilestonesExpected Operational Milestones

Khatau Real Estate Project Operationalised(1)2011Mundra Phase II Unit – II (330 MW) Phase III Unit – I (660 MW) Power Projects Operational

Proposed merger of MPSEZ promoter companies with AEL

Mundra Phase I (660 MW) & Phase II Unit – I (330 MW) Power Projects Operational

Mining Operations in Parsa - Kente2010Proposed Rights Issue & QIP(2)

Shantigram Integrated Township Operationalised(1)

Mining Operations in Machhakata Bandra-Kurla Complex Commercial Project Operationalised(1)2012Mundra Phase III Unit – II (660 MW), Phase IV Unit – I (660 MW) & Tiroda Phase I Unit – I (660 MW) Operational


For further details, please contact:

Dhirav H Shah

Adani Group

Tel.: +91 - 79 - 2555 - 5376

Mob.: +91 - 98252 - 11482

Email: [email protected]

Kaushal G Shah

Adani Group

Tel.: +91 - 79 - 2555 - 5035

Mob.: +91 - 98796 - 10144

Email : [email protected]

“Adani House”Nr. Mithakhali Six Roads,Navrangpura,Ahmedabad - 380 009.Gujarat - India.Phone : + 91 - 79 - 2656 - 5555 Fax : +91-79 - 2656 - 5614 Website: www.adani.in

Documents

Adani Enterprises Limited - AceAnalyser Meet/112599_20091231.pdf · Adani. Enterprises . Limited. Coal » Power ... including those relating to general business plans and strategy