Introduction
The Adani Group is one of India’s most powerful corporate entities, and is rapidly becoming one of the most influential in the world. Founded in 1988, the Group has grown into a global powerhouse. It is currently involved in the generation of power, trader and logistics, resources, minerals, and agribusiness sectors. This comprehensive overview of the business activities of the Adani Group has been compiled to better understand its claims of sustainability.
Early Beginnings
Adani Group began in 1988 as a trading company in Ahmedabad, India. Today, it is headquartered in Ahmedabad, with offices in 16 countries around the world. The Group has more than 20,000 employees across its various operations. It also has a major presence in the power and trading sectors, operating several ports, logistics companies, and power plants.
Adani Group’s chairman, Gautam Adani, has grown the Group to become a formidable force in the Indian economy. He holds the title of Asia’s sixth-richest person in 2019, with an estimated net worth of over $14.6 billion. Adani is an influential figure in Indian politics, and he has a loyal following among middle-class Indians.
Business Model
The Adani Group owns and operates several businesses across different sectors. Its primary businesses are in the energy, infrastructure, mining, and agribusiness spaces. For its energy sector activities, the Group has several power plants and is also involved in the construction of gas pipelines and other related infrastructure. In the mining sector, the Group has operations in India, Indonesia, and Australia, producing coal and other minerals. In the agribusiness space, the Adani Group has an agricultural division that operates various farms and sells various agricultural products.
Sustainability
Sustainability has been an integral goal for the Adani Group since its foundation. The Group states a “commitment to responsible practices that enhance the quality of life of people and communities.” This commitment is reflected in its engagement with various stakeholders, including customers, employees, governments, local communities, and the environment.
The Group works to promote environmental sustainability by incorporating environmental and social safeguards into its practices, operations, and business activities. This includes operations that focus on renewable energy sources, enabling the Group to become one of the top players in India’s renewable energy sector. In addition to this, the Adani Group actively promotes sustainability through a range of corporate social responsibility activities.
The Adani Group operates in a range of markets in India and internationally and for the financial year ended March 2019, it reported a net debt of US$12.7 billion and a total revenue of US$19.5 billion. During this period, operating profits also rose to US$2.5 billion and the Group achieved a return on equity of 12.4%, reflecting the strength of its balance sheet.
Conclusion
The Adani Group is a powerful corporate entity that has experienced rapid growth and is becoming increasingly influential in the international arena. It has a comprehensive business model that involves operations across many sectors, such as energy, infrastructure, and agribusiness. Moreover, its operations are conducted in accordance with the principles of sustainability. This report helps in better understanding the efforts of the Adani Group to promote sustainable practices and its performance across financials.
Also Read: Unveiling Adani Group: An in depth analysis
*****
Disclaimer: The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
Author Bio
Adani should contribute for the development of his
business and country by building new airports, constricting new cement factories etc and not by purchasing airports built by govt and factories already existing and operating by others.