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Шаблон:Short description Шаблон:For Шаблон:Use Indian English Шаблон:Use dmy dates Шаблон:Infobox company

Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. Founded by Gautam Adani in 1988 as a commodity trading business, the Group's businesses include sea and airport management, electricity generation and transmission, mining, natural gas, food and infrastructure.[1] More than 60 percent of the Adani Group's revenue is derived from coal-related businesses.[2]

At its peak, Adani was the largest Indian conglomerate, surpassing Tata Group.[3] It lost more than $104 billion in value after fraud and market manipulation allegations by short-seller firm Hindenburg Research.[4][5] The Adani Group has also attracted other controversies due to reports of stock manipulation, accounting irregularities, cronyism, tax evasion, environmental damage, and suing journalists.[6][7][8][9][10]Шаблон:Excessive citations inline

History

Adani Exports Limited started as a commodity trading company in 1988 and expanded into importing and exporting multiple commodities. With a capital of ₹5 lakhs, the company was established as a partnership firm with the flagship company Adani Enterprises, previously Adani Exports.[11] In 1990, the Adani Group developed its own port in Mundra to provide a base for its trading operations. It began construction at Mundra in 1995. In 1998, it became the top net foreign exchange earner for India Inc.[12] The company began coal trading in 1999, followed by a joint venture in edible oil refining in 2000 with the formation of Adani Wilmar.[13]

Adani handled 4 Mt of cargo at Mundra in 2002, becoming the largest private port in India. Later in 2006, the company became the largest coal importer in India with 11 Mt of coal handling.[12] The company expanded its business in 2008, purchasing Bunyu Mine in Indonesia which has 180 Mt of coal reserves. In 2009 the firm began generating 330 MW of thermal power. It also built an edible oil refining capacity in India of 2.2 Mt per annum.[12]

In 2010, Adani group with help of Petronet LNG will set up a solid cargo port through a Joint Venture company namely Adani Petronet (Dahej) Port Private Ltd., has already commenced its Phase 1 operations from August 2010 at Dahej Port. solid cargo port terminal would have facilities to import/export bulk products like coal, steel and fertilizer. PLL has 26% equity in this JV.[14][15]

The Adani group became India's largest private coal mining company after Adani Enterprises won the Orissa mine rights in 2010.[16] Operations at the Port of Dahej commenced in 2011 and its capacity subsequently grew to 20 Mt. The company also bought Galilee Basin mine in Australia with 10.4 gigatonnes (Gt) of coal reserves.[17] More than 60 percent of the Adani Group's revenue is derived from coal-related businesses.[2]

In 2011, the Adani group also bought Abbot Point port in Australia with 50 Mt of handling capacity. It commissioned India's largest solar power plant with a capacity 40 MW. As the firm achieved 3,960 MW capacity, it became the largest private sector thermal power producer in India. In 2012 The company shifted its focus on three business clusters – resources, logistics and energy.[18]

Adani Power emerged as India's largest private power producer in 2014.[19] Adani Power's total installed capacity then stood at 9,280 MW.[20] On 16 May of the same year, Adani Ports acquired Dhamra Port on East coast of India for Шаблон:INRConvert.[21] Dhamra Port was a 50:50 joint venture between Tata Steel and L&T Infrastructure Development Projects, which has been acquired by Adani Ports. The port began operations in May 2011 and handled a total cargo of 14.3 Mt in 2013Шаблон:Ndash14.[22] With the acquisition of Dhamra Port, the group is planning to increase its capacity to over 200 Mt by 2020.[23][24]

Файл:Krishnapatnam port cranes unloadng a ship.jpg
Krishnapatnam Port in Andhra Pradesh

In 2015, the Adani Group's Adani Renewable Energy Park signed a pact with the Rajasthan Government for a 50:50 joint venture to set up India's largest solar park with a capacity of 10,000 MW.[25] In November 2015, the Adani group began construction at the port in Vizhinjam, Kerala.[26]

Adani Aero Defence signed a pact with the Israeli arms manufacturer, Elbit-ISTAR, and Alpha Design Technologies to work in the field of Unmanned Aircraft Systems (UAS) in India in 2016. In April, Adani Enterprises secured approval from the Government of Gujarat to begin work on building a solar power equipment plant. In September, Adani Green Energy (Tamil Nadu), the renewable wing of the Adani Group, began operations in Kamuthi in Ramanathapuram, Tamil Nadu with a capacity of 648 MW at an estimated cost of Шаблон:INRConvert.[27] In the same month, the Adani Group inaugurated a 648 MW single-location solar power plant. It was the world's largest solar power plant at the time it was set up.[27]

On 22 December 2017, the Adani Group acquired the power arm of Reliance Infrastructure for Шаблон:INRconvert.[28]

In October 2019, French oil and gas company TotalEnergies bought a 37.4% stake in Adani Gas for Шаблон:INRconvert and obtained joint control of the company.[29] Total also invested Шаблон:USD510 million in a subsidiary of Adani Green Energy in February 2020.[30]

In August 2020, Adani Group obtained a majority stake in Mumbai and Navi Mumbai airports after entering a debt acquisition agreement with GVK Group.[31] Through a concession agreement with the Airports Authority of India, Adani Group also obtained a 50-year lease on Ahmedabad, Guwahati, Jaipur, Lucknow, Mangalore and Thiruvananthapuram airports.[32]

In May 2021, Adani Green Energy acquired SB Energy, a joint venture of SoftBank Group and Bharti Enterprises, for Шаблон:USD3.5 billion.[33]

In May 2022, the Adani Group acquired Ambuja Cements and ACC for $10.5 billion. The deal will make the Adani Group the second largest cement maker in India.[34]

In May 2022, UAE-based conglomerate International Holding Company (IHC), headed by Syed Basar Shueb, invested Шаблон:USD2 billion in three Adani Group companies, namely Adani Green Energy, Adani Transmission and Adani Enterprises.[35][36] In June 2022, TotalEnergies acquired a 25% stake in Adani New Industries, the newly formed green hydrogen subsidiary of Adani Enterprises, for Шаблон:USD12.5 billion.[37]

Affiliated companies

Company Shareholders Ticker Symbol Notes Ref
Energy
Adani Green Energy Limited (AGEL) Шаблон:Plainlist
Adani Power Limited (APL) Шаблон:Ubl
Adani New Industries Limited (ANIL)
  • Green hydrogen production
  • Battery manufacturing
  • Wind turbines
  • Solar modules
Utilities
Adani Transmission Limited (ATL) Шаблон:Ubl
Adani Total Gas Limited (ATGL) AEL (37.4%)

Total Energies

Шаблон:Ubl
Cement
Ambuja Cements Шаблон:BSE

Шаблон:NSE

Acquired from Holcim Group on May 15, 2022
ACC Шаблон:BSE

Шаблон:NSE

Sanghi Cement Шаблон:BSE

Шаблон:NSE

Acquisition from Sanghi Industries on Aug 03, 2023[38]
Transport & Logistics
Adani Ports and Special Economic Zone Limited (APSEZ) Шаблон:Ubl
Adani Airports Holdings Limited (AAHL) AEL (100%)
  • AAHL has secured lease, operate, and development rights for 50 years.
  • The airports are not owned by the Adani Group.
Adani Road Transport Limited (ARTL) AEL (100%)
North Queensland Export Terminal (NQXT) AEL (100%)
Technology & Data Centers
Adani Connex AEL (50%)

EdgeConnex (50%)

Hyperscale Data Center service provider. All DCs run on 100% renewable energy.
  • Chennai
  • Mumbai (Planned)
  • Noida (Planned)
  • Hyderabad (Planned)
  • Pune (Planned)
  • Vizag (Planned)
[39]
SIBIA Analytics and Consulting Services AEL (100%) [40]
Adani Digital Labs AEL (100%) [41]
Consumer & B2C
Adani Digital Labs Pvt Limited (ADL)
  • Trainman
AEL (100%)
Adani Wilmar Limited (AWL) Adani (44%)

Wilmar (44%)

Шаблон:BSE

Шаблон:NSE

Media - AMG Media Networks Ltd
NDTV 64.71% Шаблон:BSE

Шаблон:NSE

BQ Prime 100% Purchased from Quint Digital Media, the owner of The Quint[42]
Real Estate
Adani Properties Limited
  • Redevelopment of Dharavi Slum in Mumbai

Controversies

Coal mining in Australia

Шаблон:Main

Файл:Adani's Abbot Point coal spill photos (33962498356).jpg
Coal spill at Abbot Point, Australia, after Cyclone Debbie in 2017

The Adani Group launched in 2014, with the support of a part of the Australian Government and Queensland, a mining and rail project (Carmichael coal mine) in Carmichael in Queensland's Galilee Basin for $21.5 billion[43] over the life of the project, i.e. 60 years.[43] This mine is one of many coal mines in Queensland, Australia. Its annual capacity would be 10 Mt of thermal coal.[44]

This project will occupy an area of Шаблон:Convert. In response to activist pressure some international banks refused to finance it,[45] and in November 2018, Adani Australia announced that the Carmichael project would be 100% financed by Adani Group resources.[46] In July 2019, the project received its final approvals from the Australian Government and construction of the mine commenced.[47]

In 2015, the then-head of Adani's Australian mining division came under scrutiny due to his association with a mining pollution incident in Zambia, sparking renewed concerns about Adani's suitability to manage the Carmichael coal mine. According to a collaborative report from Environmental Justice Australia, Jeyakumar Janakaraj held significant positions at a mining company that faced criminal charges related to the contamination of the Kafue River in Zambia. This occurred before he assumed leadership role of Adani's operations in Australia. Specifically, Janakaraj served as the operations director at Konkola Copper Mines in 2010, when the company faced legal charges concerning the discharge of hazardous wastewater into the river.[48] However, the Australian government characterized Adani's omission of Janakaraj's involvement in the African pollution incident as a "mistake."[49] Although, under section 489 of Australia's Environmental Protection and Biodiversity Conservation Act 1999, presenting inaccurate or deceptive information could potentially constitute an offense, the federal government has opted not to pursue any legal action against Adani.[50]

The Australian Government has been taken to the Federal Court of Australia by the Australian Conservation Foundation twice, once in 2018 and once in March 2020 (still ongoing Шаблон:As of), relating to its contravention and alleged contravention of the Environment Protection and Biodiversity Conservation Act 1999 with respect to the impact of the Carmichael mine on groundwater and the country's water resources.[51]

In 2020, Adani Mining changed its name to Bravus Mining and Resources.[52]

On 29 December 2021, Bravus announced that the first shipment of high-quality coal from the Carmichael mine had been assembled at the North Queensland Export Terminal (NQXT) in Bowen ready for export as planned.[53]

Cronyism

Chairman and MD Gautam Adani has been described as being close to former Chief Minister of Gujarat and Indian Prime Minister Narendra Modi and his ruling Bharatiya Janata Party (BJP).[54] This has led to allegations of cronyism as his firms have won many Indian energy and infrastructure government contracts.[55] In 2012, an Indian government auditor accused Modi of giving low cost fuel from a Gujarat state-run gas company to the Adani group and other companies.[56][57] In Jharkhand, the BJP-led state government made an exception to its energy policy for Adani's Godda power plant.[2] Both the Adani Group and Modi's government have denied allegations of cronyism.[57]

Leverage

The company's corporate debt totaled $30 billion in 2022.[58] In August 2022, CreditSights, a unit of Fitch Ratings, warned that Adani's recent aggressive expansion had hurt the group's cash flow and credit metrics. It also stated that a potential "worst-case scenario" could lead the group to end up in a debt trap and a potential default.[59][60] The CreditSights report garnered significant attention for its dire assessment of Adani's "deeply overleveraged” book; after outreach by Adani, CreditSights softened its language but kept its main conclusion.[61]

Stock market rigging

In 2007, the Securities and Exchange Board of India (SEBI) prohibited multiple Adani companies from engaging in the purchase or sale of securities for a period of two years.[62] This action was taken due to their involvement in a manipulation scheme that occurred between 1999 and 2001 to artificially influence stock prices. This manipulation was carried out through entities overseen by Ketan Parekh, the stockbroker who was the main accused in India’s biggest stock market scandal.[63] After paying a fine of $140,000, the companies were eventually permitted to recommence their trading activities.[62]

Tax evasion

On 27 February 2010, Central Bureau of Investigation arrested Rajesh Adani, managing director of Adani Enterprises Ltd., on charges of custom duty evasion amounting to ₹80 lakh.[64]

In August 2017, Indian customs alleged the Adani Group was diverting millions of funds from the company's books to Adani family tax havens overseas. Adani was accused of using a Dubai shell company to divert the funds.[65] The details of a $235 million diversion were obtained and published by The Guardian.[66] In 2014, the Directorate of Revenue Intelligence mapped out a complex money trail from India through South Korea and Dubai, and eventually to an offshore company in Mauritius allegedly owned by Vinod Shantilal Adani, the older brother of Gautam Adani.[67] Same year, DRI forwarded a letter to the then SEBI chairperson,U. K. Sinha, along with a CD containing evidence suggesting the improper diversion of Rs. 2,323 crore.[68] Additionally, they provided two investigative notes, cautioning that the group might be involved in manipulating the stock market through funds allegedly siphoned off using the strategy of overvaluing power equipment imports. However, SEBI did not publicly acknowledge the receipt of this letter and the accompanying evidence from DRI until September 2023, when it was disclosed before the Supreme Court of India.[69]

Corporate governance issue

According to Bloomberg News, the group has been found to be maintaining dubious business relations with an engineering contracting firm, Howe Engineering Projects.[70] This firm acquired the engineering business of PMC Project in 2016. In the past, PMC Projects, an Adani contractor, was accused of inflating the value of imported power and infrastructure goods by nearly ₹1,500 crore. Howe, now a separate entity, continues to work as an Adani contractor (just like PMC Projects) for major ports and railway lines being built in India. Deloitte raised concerns in May 2023 about payments made by Adani's ports company to Howe, unable to determine whether Howe should be considered a related party.[71] Also, Adani Group had not publicly disclosed these payments until Deloitte highlighted them.[72]

Stock manipulation and accounting fraud allegations

In January 2023, Hindenburg Research published the findings of a two-year investigation alleging that Adani had engaged in market manipulation and accounting malpractices. The report accused Adani of pulling "the largest con in corporate history"[4][73] and "brazen stock manipulation and accounting fraud scheme over the course of decades".[4][74] Hindenburg also disclosed that it was holding short positions on Adani Group companies.[75][76][77] Bonds and shares of companies associated with Adani experienced a decline of more than $104 billion in market value after the accusations,[78][79][80] representing approximately half of the market value.[81] Hedge fund manager Bill Ackman said Hindenburg's Adani Report was "highly credible and extremely well researched."[82][83] Adani denied the fraud allegations as without merit.[84]

On 29 January, Adani released a 413 page response to the Hindenburg report, calling Hindenburg’s conduct a "calculated securities fraud"[85] and the report a "calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India."[86] Hindenburg characterized the response as failing to engage with the issues raised by its initial report, and an exercise in obfuscation under the garb of nationalism.[87] On 1 February, Adani cancelled its planned $2.5 billion (Rs 20,000 crore) Follow-on Public Offer (FPO) citing market volatility, and announced that it would return the FPO money to investors.[88] Reserve Bank of India sought details from banks on exposure to Adani firms.[89] Citigroup's wealth unit stopped extending margin loans to its clients against securities of Adani Group.[90] Credit Suisse Group AG stopped accepting bonds of Adani Group companies as collateral for margin loans to its private banking clients.[91][92] S&P Dow Jones Indices removed Adani Enterprises from its sustainability index.[93]

Norway's Oil Fund, which had already shed a bulk of its Adani shares pre-Hindenburg report, divested its entire stake following the report.[94][95]

On 19 May, on prima facie, a committee formed by the Supreme Court of India communicated its inability to conclude regarding the existence of a regulatory failure concerning the accusation of stock price manipulation by the group. This was primarily due to the insufficient information provided in the explanations by the SEBI's investigation.[96][97] Earlier on 29 April, SEBI requested a six-month extension to conclude its investigation, instead of the initially given two months provided on 2 March.[98] However, the Supreme Court granted a three-month extension and directed SEBI to complete the probe by 14 August 2023.[99]

On 24 June, 2023, Adani Group's share value took a significant dive, following reports that United States Department of Justice and U.S. Securities and Exchange Commission were investigating the corporation's communications with its U.S.-based investors, spurred by a report from a short seller.[100][101]

On 31 August 2023, the Organized Crime and Corruption Reporting Project put forth allegations asserting that a substantial amount of funds, in the hundreds of millions of dollars, were directed into publicly traded stocks of the Adani Group.[102] These investments purportedly occurred by means of investment funds situated in Mauritius, which are characterized as possessing a lack of transparency. These funds were reportedly associated with partners connected to the promoter family.[103] Supporting evidence presented in the report indicates that these entities engaged in protracted activities involving the acquisition and divestiture of Adani stock through offshore mechanisms, thereby concealing their active participation.[104] This covert engagement apparently yielded significant financial gains. Additionally, the documentation suggests that the overseeing investment firm compensated a company belonging to Vinod Adani for advisory services pertinent to their investment pursuits.[105]

In October 2023, the National Financial Reporting Authority initiated an investigation, reaching out to several audit firms involved in examining the financial records of the Adani Group's listed companies.[106][107]

Manipulating Wikipedia entries

A February 2023 article in The Signpost said that the Adani team has been manipulating Wikipedia entries using sock puppet accounts to insert promotional material and remove or edit criticism.[108][109][110]

Sports

Файл:Adani Arena Rockhampton.jpg
Adani Arena in Rockhampton, Australia

In addition to its industrial interests, the Adani group owns several sports teams, such as the Gujarat Giants team in the Pro Kabaddi League.[111] In 2022, Adani Group acquired the Gulf Giants team in UAE's International League T20.[112] In August 2022, It also purchased a franchise in Legends League Cricket.[113] In 2023, it purchased a team in the Women's Premier League based in Ahmedabad.

Teams owned by Adani Group

Team Sports League Refs
Gujarat Giants Kabaddi Pro Kabaddi League [114]
Gujarat Giants Cricket Women's Indian Premier League [115]
Gulf Giants Cricket International League T20 [112]
Gujarat Giants Cricket Legends League Cricket [113]
Gujarat Giants Boxing Big Bout Boxing League [116]
Gujarat Giants Kho kho Ultimate Kho Kho [117]

Adani also sponsored various other sports initiatives, including a 2016 nationwide programme to prepare athletes for Rio Olympics called Garv Hai (Шаблон:Translation). It was re-launched for a second time to groom athletes for 2020 Tokyo Olympics, 2022 Asian Games and Commonwealth Games. The programme focuses on archery, shooting, athletics, boxing, and wrestling.[118][119] Beneficiaries of the Garv Hai pilot project in 2016 include Ankita Raina (tennis), Pinki Jangra (boxing), Shiva Thapa (boxing), Khushbir Kaur (athletics), Inderjeet Singh (athletics), Mandeep Jangra (boxing), Malaika Goel (shooting), Deepak Punia (wrestling), KT Irfan (Racewalking) and Sanjivani Jadhav (athletics).[118][119]

Adani Group has naming rights on Hegvold Stadium (now known as Adani Arena) in Rockhampton[120] and the pavilion end of the Narendra Modi Stadium in Ahmedabad.[121]

See also

References

Шаблон:Reflist

External links

Шаблон:Adani Group Шаблон:Portal bar

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