An Article On Entrepreneur Mr. Gautam S. Adani Chairman, Adani Group

An Article On Entrepreneur Mr. Gautam S. Adani Chairman, Adani Group

Submitted To: Prof. Revati Deshpanday Faculty Member , S. V. Institute of Management Kadi.

Submitted By: Ashwin Chaudhary (05 F) Mohsinkhan Belim (02 F)

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About Gautam Adani Gautam Adani (born June 24, 1962 in Ahmedabad, India) is an Indian businessman. He is the chairman of the Adani Group, a leading trading and Export Company of India. On November 16, 2007, Forbes magazine announced that Adani was the 13th richest person in India with a personal wealth of US$6.7 billion, making him the first billionaire from the city of Ahmedabad.

Biography

Gautam Adani was born on June 24, 1962, to Shantilal and Shantaben Adani in a Gujarati Jain family. He had seven siblings. Adani's parents had migrated from the town of Tharad in northern Gujarat in search of livelihood. Adani was born in the Seth ni Pol are located in Ratanpol in Ahmedabad. He set out for Mumbai to make a living with only a few hundred rupees at a young age of 18 only.He studied at the Seth C. N. Vidyalya school in Ahmedabad and later on at Gujarat University. Adani is University dropout, he studied till second year for his Bachelor's Degree in Commerce. He worked in Mumbai as a diamond sorter at Mahindra Bros. After working there for two years, Adani, 20 at the time, set up his own diamond brokerage outfit at Zaveri Bazaar and made his first lakh. In 1981, 1 year later, his elder brother Mansukhbhai, bought a plastics unit in Ahmedabad and asked Gautam to run it. This marked the beginning of Adani's foray into global trading by beginning to import polyvinyl chloride (PVC), a key raw material for manufacturing plastics. After the economic liberalisation, the import duty on various goods was slashed, and profits of Adani Exports, then his flagship company, grew immensely. Adani is married to Priti Adani. She is a dentist and heads the Adani Foundation, of which she is the managing trustee. They have 2 sons. Karan Adani, 20, is pursuing his BS 2

in Management from Purdue University, USA. Jeet Adani, their younger son is 10 years old. Gautam Adani owns 2 private jets - a Beechcraft jet purchased in 2005 and a Hawker purchased in 2008 Indian Entrepreneur and Self Made Billionaire Gautam Adani, 46, is the Chairman of the Adani Group, one of the top diversified conglomerates of India. According to Forbes’ 2009 Gautam Adani has the net worth of $ 1.6 Billion. Gautam Adani was born on the 24th of June, year 1962 in Ahmedabad. Adani a college dropout, was only in his teens when he came to Mumbai where he got the job of a diamond sorter. After some time, he started a diamond brokerage business. In the early 80s he returned to Ahemedabad to enter the plastic business. After that Adani began to import PVC. (a raw material required for manufacturing of plastics). This is when he ventured into global trading. Economic liberalisation in India had a positive impact on his business. In the late 90s Gautam Adani diversified into infrastructure. Today Adani Group has transformed into a multi billion dollar businees empire. Gautam Adani’s Business Interests include the following: Power, Infrastructure, Trading, Power, Energy Logistics, SEZs, and Oil and Gas Exploration. Gautam Adani is the man behind Mundra Port, the largest private sector port in India. Adani Foundation, started in 1996, manages the Corporate Social Responsibility (CSR) activities of the Adani Group. The foundation is involved in various activities such as rural developmemt, education, and health.

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History The Adani Group, despite a humble beginning in 1988, is one of the fastest growing professionally owned enterprises in India and in the global arena. The flagship company, Adani Enterprises Ltd. (formerly known as Adani Exports Ltd.), was established by Mr. Gautam S Adani in 1988 as a partnership firm with a seed capital of Rs. 5 lacs. An entrepreneurial vision coupled with lofty ambitions and hard work set the pace for the growth of the company. Adherence to world-class quality standards and a customer centric approach has helped the Adani Group touch revenues of INR 262 billion (as on March 31, 2009.) The journey from a being a India’s most trusted trading house to a diversified conglomerate is fast, yet memorable. Today, the Adani business portfolio is a diverse, yet profitable assortment of Edible Oil, Logistics, Power Generation, Coal, Oil and Gas Exploration, Gas distribution, Real Estate, Ports, Special Economic Zones and IT enabled services. Its growth has been organic leading to a synergy among its business units, making them more productive and competitive together.

Personnel Information Date of birth: •

Jun 24, 1962 (age 47 years)

Profession: •

Businessperson

Country of nationality: •

India

Company board memberships: Chair person Adani Group 4

Place of birth: •

Ahmedabad, India

Gender: •

Male

Parents: •

Shantaben Adani

•

Shantilal Adani

Children: •

Jeet Adani

•

Karan Adani

Siblings: •

Mansukhbhai Adani

Spouse (or domestic partner): •

Priti Adani

Employment history: • •

Employer Adani Group Mahindra Bros.

• •

Title Owner Diamond Sorter

From • 1988

Education: • •

Institution Gujarat University Seth C. N. Vidhyalay

Major/Field Of Study Commerce • High school 5

Places lived: •

Ahmedabad

•

Asia

•

Australia

The Organization Organisation Structure  Formal 3-tiered Governance structure •

Board of Directors

•

Corporate Management Committee

•

Executive Committee

 Value creation in businesses through EVA 6

 Strategic business review meets Quarterly / Half yearly / Yearly basis  Quantified target setting & linking to rewards  Strong process orientation through SOPs  Investment in futuristic IT infrastructure

The Leadership Gautam S. Adaniis the Company’s Executive Chairman and founder of the Adani Group. He has completed his education up to matriculation. He has over 20 years of varied experience in business and trading with Adani. He is responsible for the Company’s new business initiatives and strategic plans. Under his leadership, Adani Group has emerged as a diversified conglomerate with interests in international trading, infrastructure development, power generation and distribution, development of special economic zones, gas distribution, trading and business process outsourcing. He has been instrumental in the diversification of the Adani Group into the power sector. Rajesh S. Adani is the Managing Director of the Company. He holds a bachelor’s degree in commerce from the Gujarat University. He has been associated with Adani Enterprises Limited since its incorporation. He is in charge of day to day operations of the Company and has been responsible for developing the business relationships of the Company. He also handles the marketing and finance aspects of the Company.

Vasant S. Adani is a Non-Independent and Non-Executive Director of the Company. He holds a bachelor’s degree in Arts. Vasant S. Adani looks into the administrative aspects of the Adani Group. He has more than 25 years experience in management and real estate development.

Amratlal C. Shah is an Independent Non-Executive Director of the Company. He holds a doctorate in economics and has over three decades of banking experience and has served as the chairman and managing director of Bank of Baroda. Dr. Shah has also served on the board of various reputed companies, such as UTI Bank Limited, Reliance 7

Capital Limited, Jet Airways Limited, S. Kumar Nationwide Limited, Elecon Engineering Company Limited, Gujarat Petro Synthesis Limited, Goldcrest (India) Limited and Gujarat Lease Finance Limited. Dr. A.C. Shah has also chaired several committees on banking, the most recent one being the RBI Committee on the functioning of Non-Banking Finance Companies. Pravin P. Shah is an Independent Non-Executive Director of the Company. He is a chartered accountant and has a doctorate in Finance. He is a partner of the chartered accountants firm, Pravin P. Shah & Co. and is the proprietor of the chartered accountancy firm, Pravin P. Shah & Associates. Dr. Shah has over 40 years of experience in areas of financial consultancy, taxation, valuation, property matters, accounting, auditing, corporate laws and FEMA. He has also authored seven books on costing, management strategies, billion dollar companies and taxation. Jay H. Shah is an Independent Non-Executive Director of the Company. He holds degrees in commerce and law. Jay H. Shah has been with the Company since its inception. He has wide experience of the Indian petrochemicals sector. Yoshihiro Miwa is an Independent Non-Executive Director of the Company. He holds a master’s degree in commerce. He has wide experience in Commercial Science and Business Administration. He is also the chairman of Kowa Company Limited, Japan. Anil Ahuja is an Independent Non-Executive Director of the Company. He holds bachelor’s degree in Mechanical Engineering from Indian Institute of Technology (IIT), New Delhi and a Post Graduate Diploma in Business Management from the Indian Institute of Management (IIM), Ahmedabad. He has more than 20 years of experience in international financial services. Anil Ahuja is one of the earliest private equity investors in India, with over 10 years of investment experience. In the past, he has worked with 3i Group Plc., JP Morgan Partners Asia and Citibank, Mumbai.

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Citizen Adani Genesis of Adani Foundation Adani Foundation was established in May 1996. Situated in Ahmedabad, it is a part of the prestigious Adani Group and looks after the Corporate Social Responsibility related activities of the Group, which has now become synonymous with creating wealth for the people. Adani Foundation was established with the vision to “accomplish passionate commitment to the social obligations towards communities, fostering sustainable and integrated development, thus improving quality of life". We began in a small way by working with a few rural communities around our Port at Mundra. 9

Through its grant, the Foundation supports efforts in the development of society, in areas of Rural Livelihoods & Communities, Education, and Health. Besides institutional grants, the Foundation also makes individual grants for education and medical relief. The Foundation is registered as a NGO and operates in Gujarat with major focus in Kutch & Ahmedabad. This year, it will expand to other locations in the country. The Foundation is active in four major areas for all sections of the society: •

Medical

•

Education

•

Rural Development

•

Charitable & General

Activities at Ahmedabad The Ahmedabad office holds the secretariat of the Foundation. The activities which are directly managed by the Ahmedabad Office are: A. Medical 1. Medicines prescribed by the hospitals/ specialists a provided free of cost to 290 patients including 52 HIV positive patients. 2. Financial assistance was provided to patients for surgeries, and critical diseases, looking to the severity of the cases. 3. Financial Assistance to peer groups: Shree Rajrajendra Suri Charitable Trust, Surat was given financial support worth Rs 11 Lakhs towards setting up a new dispensary in Surat for the under-privileged. B. Education 1. Scholarship Scheme: This scheme is meant for all children who secure more than 70% marks in aggregate and are from Below Poverty Line strata. 46 meritorious students availed these scholarships applicable from 5th standard onwards up to professional courses. 10

2. 9+2 Scheme: We helped 88 students under this scheme, wherein, nine months tuition fees and two term fees were paid directly to the educational institutions. 3. Vidya Sahay: This scheme enables/make feasible quality education accessible to needy associates of the Adani Group & to mitigate the hardship in educating their children on account of the high cost of education. Under this scheme 83 children availed Vidya Sahay amounting. 4. Adani Vidya Mandir: “SUCCESS IS NOT TRUE UNLESS IT IS SHARED”, believing in this philosophy Adani Foundation has set up “Adani Vidya Mandir” school to impart quality education & good facilities to under-privileged meritorious students totally free. This will enable them to fulfill their dreams and aspirations. The school was formally declared open on 12th June 2008. From this year, Class III and IV are operational. A total of 140 students have taken admission in the school through an entrance test held in the months of April & May. 5. Financial Assistance to peer groups: o

Banaskantha Kelavani Mandal was given financial support worth Rs. 25 Lakhs towards construction of a new school.

o

Jay Parsvanath Education Trust was given financial support worth Rs 5 Lakhs towards construction of new classrooms at Dholka, Ahmedabad.

C. Others •

Shree Navchetan Andhjan Mandal was given support worth Rs 25 Lakhs towards construction of their new campus in Kutch

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Shree Yagkshem Foundation for Human Dignity, Ahmedabad was given financial assistance of Rs. 2 Lakhs towards their work on Human Rights

Adani DAV Public School, Mundra The results of Class X and XII have been very encouraging. Krishna Yogesh Shah secured highest 93.2% in her Class X board exams. The school again repeated its 100% results in Class X, Class XII Commerce and Class XII Science since the first batch of 11

Class X appearedin 2004. The total enrollment in the school this year is 137 making a total of 701 students with 44 teachers. This makes the teacher student ratio of 1:16 which is very high compared to other schools where the average is 1:35.

Rural Development Activities at Mundra, Kutch: In Mundra, Adani Foundation has set up a team for addressing various issues for the rural community. We work in three core areas; Education, Health and Livelihood Education: •

20 volunteers completed their duties as teaching assistants in primary schools of Mundra Taluka for the academic year of 2007-08. They also underwent training of Sarva Shiksha Abhiyan (SSA). These Education Volunteers also implemented

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Meena Communicative Initiative aimed at Girl Child Education and Child’s Rights •

Crafted new role and responsibilities for Education Volunteers with consultation from UNICEF and District Primary Education Officer for the academic year of 2008-09

•

Prepared a model for School Health Corner. 40 group schools of Mundra and Mandavi Talukas are provided with Model Health Corner Kit consisting of full size mirror, 5 napkins, 6 combs, 6 nail clippers, Height measuring Scale and posters for creating health awareness.

•

A.F. also assisted in distributing textbooks to schools.

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Training session with volunteers

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A.F. Team participated in School Enrolment Drive of current year

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45 schools have been identified for Educational Inputs with emphasis on Girl Child Education and Quality of Education.

Health: •

Mobile Dispensary is rendering services to 24 villages and three labour colonies and has treated 2513 patients in April and 2403 patients in May 2008 absolutely free.

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Medical camp at Zarapara port colony where 94 patients got free treatment

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Specialty camps/ Gynaec camps were organized at Tunda, Baroi and Deshalpar village as well as at APL and Samudra labour colonies. Over 200 women got treatment for various gynaec ailments for which they would not have gone anywhere unless it gets very serious. Dr. Chitra Bhatnagar- M.D. (Ob.Gy.) rendered her services on a voluntary basis.

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Life Skill Education Talk followed with question answer session with students and teachers of Adani DAV School with Dr. Chitra Bhatnagar

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In collaboration with Government Community Health Center vaccination and ante- natal care is provided at labour colonies namely at Samudra Township and Mithani’s Colony on Tuesdays of the month.

•

Pre- monsoon health awareness programme conducted at various labour colonies 13

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Demonstration of chlorination of water along with material supply carried out at various labour colonies

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HIV/AIDS awareness talks at Indra security and Samudra Township

Livelihood Activities: •

Group meetings with Cattle Owners at Mangara for low cost cattle shed for reducing wastage of fodder

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Awareness Night Camp with Veterinary Dr. Prakash Modi at Goersama and Shekhadiya benefiting 64 cattle owners’ families

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Continue implementation work of Samaghogha Check Dam on Phot river under Sardar Sahabhagi Jal Sanchay Yojana. 80 % construction is over. Total cost of this dam is rupees fifty lacs approx.

•

Bhumi Pujan for starting implementation of Vaghura Check Dam on village river

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Support in construction of 126 individual toilets at Wanki village. We came across many touching stories such as- Ratanben Aahir who came to village Wanki 30 years ago following her wedding to a village man. Not having toilet in the house was very disturbing and never could get over the overwhelming feeling of shame and embarrassment. To top this, her fate put her in even more difficulties and drudgery as her husband met with an accident and was partially disabled. Now she had to carry his excreta for disposal in open out side village everyday. Now with toilet in the house we could see tears of happiness and relief.

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A.F. team participated in Krishi Rath Programme of Government of Gujarat in Mundra Taluka. Public recognition was given to our efforts in the areas of Total Sanitation Campaign, Animal Husbandry and Agriculture and water saving devices

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Concluded six weeks training for Diesel Engine Maintenance with partial funding from NABARD under Skill Development Initiative. Two trainees have already been selected for placement. Three to four have continued with their own workshop with more vigor. Follow up for more placements and entrepreneurship continues.

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We have submitted two more proposals under Skill Development Initiative to NABARD.

Other News: •

Dr. Pritiben G. Adani signed Memorandum of Understanding for Technical Support with UNICEF.

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WASMO has agreed to support us in our efforts towards Total Sanitation Campaign and school hygiene sanitation programme

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We have expanded our team by recruiting six community mobilizers with graduate and post graduate degrees in relevant education streams and of total work experience. We have also recruited project officers/ programme specialists for Health and Animal Husbandry and other livelihood activities

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Team leader visited Dahej and Tiroda sites for assessing and exploring the possibilities of CSR activities in those areas. A person to look after Dahej site has been short listed.

Activities at Gurgaon A blood donation camp was organized at ADANI House, Gurgaon, in coordination with Red Cross Society, India. A total of 57 units of blood were donated by equal numbers of volunteers for the noble cause of saving lives of people.

About Adani Group Group Highlight

Founded in 1988 the Adani Group has grown from being a trading house to a diversified and dynamic business group with interests from infrastructural development to FMCGs.

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A leader in international trading and infrastructure development, the Adani Group is engaged in a continuous Endeavour to maximize potentialities by synergizing the multiple businesses of the Group creating optimum business model. The Group has made foray into high growth sector like Power, Infrastructure, Global Trading, Logistics, Energy and is recognized for creating benchmarks for others to follow… We are the operator of largest private port in India, We are the developer of largest multiproduct SEZ in India, We have the largest edible oil refining capacity in India, and we are one of the largest trading houses in India. The group is committed to constantly deliver good returns to its stakeholders and convert partnerships into winning combination.

Chairman's Message It’s my pleasure to introduce, before you, the Adani Group; a conglomerate that spans a diversified, yet complementary business portfolio. Our businesses range from Commodities Trading to Edible oil Manufacturing; from Greenfield port operations to natural gas distribution as well as power generation.

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We have committed ourselves to building a world-class organization; we have been putting in the efforts to develop world-class competencies. We are pushing the envelope, expanding the international market frontiers and guaranteeing solid fundamentals for the organization’s future. At Adani, we have always strived to explore and take advantage of the existing and emerging market opportunities to build value for our trade and investment partners. This has helped us and our partners to keep abreast of business competencies and harvest the overseas investment opportunities. Adani is in its most glorious phase ever and I am excited about its future. As we potentiate our capabilities, expand our operations, we are stand at a locus of domestic and global possibilities, that we are destined to reap. Today’s is a world that is constantly demanding cleaner and better energy sources. As India and the world look expectantly to us, we must deliver. We have everything going for us…excellent relationships with our trade partners and shareholders and big ambitious goals. But more than anything else, we have the right people and the right leadership. What can stop us on our path to growth? Nothing…well, almost. Gautam S. Adani Chairman, Adani Group

Vision To be an entrepreneurially driven enterprise – Thinking innovatively in all aspects of the business, from technological to commercial. To be intensely competitive in whatever we do, by constantly bettering the benchmarks set by us. To be a globally preferred business associate - an entrepreneurial organization having responsible concern for employees, society, the ecology, and stakeholder value. Strive to 17

generate optimum value for all our associates through constant innovation and adoption of universal best practices and improving upon all those touches points that directly impact the business. To be a responsible concern – We shall harmonize all our actions and reactions, with the global environment and actively work to reduce our environmental load

Mission To assimilate knowledge, develop capabilities and manage collective enterprise to profitably tap global commercial advantages for the benefit of stakeholders.

Group Values From inception three values have driven all the activities of the Adani Group. They are central to our operations worldwide and will continue to be at the core of all our businesses. Trust - We will deliver on all our promises - our word is our bond. Courage

-

We

will

support

our

decisions

and

actions

with

conviction.

Innovation - We will think laterally and never fight shy of embracing big ideas.

Companies of Adani Group

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