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GAUTAM ADANI
Gautam Adani is an Indian business tycoon who founded the Adani Group, a multinational
conglomerate company headquartered in Ahmedabad, India. Founded in 1988, the company is
today a major player in coal trading, coal mining, oil & gas exploration, ports, multi-modal
logistics, and power generation among others. Born into a business family, he undoubtedly
inherited his forefathers business acumen but did not develop any interest in the familys textile
business. Ambitious as a young man, he dropped out of school and moved to Mumbai from
Ahmedabad to seek his fortunes. He ventured into diamond brokering where he found great
success within years and was soon a millionaire. He returned home on the behest of his brother
to help him run a small plastics factory.
An entrepreneur at heart, he eventually set up his own business, Adani Enterprises, which
became the Adani Groups flagship company. Initially dealing in export and import of
commodities, the business soon expanded to encompass coal mining, ports, power generation,
Agri Infrastructure, edible oil & transmission and gas distribution, among other ventures. He is
known for being a risk taker whose business strategy revolves heavily around excessive leverage
and political patronage. His phenomenal success as a first generation entrepreneur often leads to
comparisons with another Gujarati entrepreneur, Dhirubhai Ambani, the founder of Reliance
Industries.
Unlike many businessmen, Adani didnt inherit his power and position. Hailing from a typical
Gujarati-Jain family, Adani had a natural propensity for dhanda flowing through his veins. His
parents, Shantaben and Shantilal Adani, had migrated to the city of Ahmedabad from a small
town called Tharad in Norther Gujarat in hopes of securing greater opportunities for their eight
children. Supporting eight children was difficult, and understandably, money was a luxury for the
Adanis.
His had his first encounter with Lady Luck when he procured a job as a diamond sorter at the
Mumbai branch of the Mahindra Brothers. Soaking in the A to Z of the trade, while also
simultaneously making mental notes on the changing markets, he set up his own diamond
brokerage at Zaveri Bazaar, the unrivalled jewellery market of the city. This was his first big
break.
A year later, his older brother, Mahasukh Adani, bought a plastic unit in Ahmedabad and
requested him to return home and run the franchise. This turned out to be a turning point in
Gautams life. His decision to import polyvinyl chloride, a key industrial raw material, marked
his advent into the global trading market.
Economic liberalisation proved to be a blessing to Gautam. Using the situation created in the
markets to his advantage, he established the Adani Group in 1988. During its initial years, the
soon-to-be multinational conglomerate focused on agricultural commodities and power. By 1991,
the company had grown in both resources and power. Gautam believed that the time was right
for the company to diversify its commodities and interests.
Since then, the Adani Group has emerged as a diversified Energy and Logistics conglomerate
with key interests in Power Generation and Transmission, Coal Trading and Mining, Gas
Distribution, Oil and Gas Exploration as well as Ports and Special Economic Zones. Despite
owning this business giant with a flagship of over several billion dollars, Gautam never forgets
his humble beginnings. Thus, he makes it a point to give back to society. With the support of his
wife, Priti Adani, a Dentist and Managing Trustee of Adani Foundation, the Adani Group is tied
to a number of philanthropic organisations associated with Education, Community Health,
Sustainable Livelihood Development and Rural Infrastructure Development.
VISION
Accomplish passionate commitment to the social obligations towards communities, fostering
sustainable and integrated development, thus improving quality of life."
MISSION
To play the role of facilitator for the benefit of the public without distinction of caste or
community, sector, religion, class or creed, in the fields of education, community health, and
promotion of social and economic welfare and upliftment of the people in general.
Gautam has had his fair share of rifts with the government as well. He has faced controversy
over some of his land dealings in business not being sanctioned properly. Along with this, many
of his business industrial units dont have clearance from the environment authorities of the
state, leading to further ruffles with the High Court.
However, Gautam chooses to face his issues with his head held high. Dealing with the
government does not mean you have to give a bribe, he has often been heard saying at public
events. Despite these issues, Gautam even managed to tackle and take down Sajjan Jindal, the
Chairman and Managing Director of JW Steel, acquiring the much sought-after Udupi Thermal
Power Plant at Rs 6,000 crore. Rumour has it that Gautam sealed the deal in less than two days!
On his 54th Birthday, we salute the inspiring journey and hard-earned success of Gautam Adani, a
beacon of focus and determination. As he has often said, the key to success lies in constant
learning. With this as his mantra, he trots off to acquire yet another billion dollar enterprise.
land
allotment
policies
and
guidelines
from
the
bureaucracy.
Adani's entrepreneurial and ambitious vision along with rigorous hard work made the Adani
Group one of the fastest growing professionally owned enterprises in India.
Maintenance of world-class quality standards and a customer focused approach helped the
Adani Group to achieve revenues of INR 262 billion by 2009.
Center
Revenue : US$ 9.2 Billion (2014)
Operating Income : US$ 1.1 Billion (2014)
Profit : US$ 447 Million (2014)
Total Assets : US$ 14.64 Billion (2014)
Employees : 10,400 (2013 year ending)
With Gautam Adani as the Chairman and Promoter, the Adani Group is a Gujarat based
Indian conglomerate. The group's core businesses include commodities trading, edible oil
manufacturing, Mundra port operations and distribution of Natural Gas.
Its journey to become one of Indias most trusted and diversified trading house was fast and
worth imitating. Apart from its core businesses, the Adani Group has also diversified into
Real Estate, Ports, Special Economic Zones and IT enabled services. Its expansion was
accompanied by a synergy among its business units to bring them together and make them
more productive and competitive. Their corporate office is headquartered in the city of
Ahmedabad, India.
The group emphasizes on converting partnerships into winning relationships and is
committed to satisfy its stakeholders by constantly delivering good returns. Adani group
covers more than 50 companies under it, some of them being:
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The group overstretched itself and took the riskiest bets in mining. That includes the massive
$2-billion investment in Australia. Besides, there were always governance issues with the
group, says a banker requesting anonymity. The future of the group will depend on how well
Adani manages to reduce his leverage, he added.
Adani was not available for an interview with Business Standard, but, in an emailed statement,
the group said that it did not consider these roadblocks as deterrents to growth. Adani Group is
Indias leading private infrastructure conglomerate which has invested close to Rs 150,000 crore,
coupled with a huge amount of time and effort to create world-class infrstructure assets in the
resources, logistics and energy sectors, it added.
Low on power
However, a look at Adanis various projects apart from its debt load tells a different story.
The companys power projects are facing massive cost overruns, as Adani Power was prevented
by the Ministry of Environment and Forests to (MoEF) from mining one of its key coal reserves
that fell within the Tadoba tiger reserve in Maharashtra. As a result, Adani had to import
expensive coal to fuel its power plants. No wonder then that Adani Power reported a net loss of
Rs 225.4 crore for the quarter ended September this year.
The losses are expected to go up in the coming months along with the cost of new projects, say
analysts. We have revised our project cost estimates upwards by 25 per cent and 10 per cent in
the cases of Tiroda (both phases) and Kawai, respectively, and 25 per cent in the case of Mundra
(96 per cent of which is already incurred), a recent report by Amit Gulecha of Emkay warns.
Thus, we do not see upside even in a best case, but 35-40 per cent downside. We reiterate a sell
on the stock with a revised price target of Rs 30 a share, he recommends. Adani Power currently
trades at around Rs 48 a share on BSE.
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Adani says it had signed a power purchase agreement (PPA) at a competitive price with
Maharashtra and blames its misfortune on a lack of government permissions. We have coal
linkages for the rest of our projects either through import or fuel supply agreement with Coal
India Ltd. Hence, our power projects have not been affected at all by the alleged coal scam. In
addition, we have made arrangements for evacuating power by setting up large power
transmission lines from our plants to the grid. This will ensure all our plants will come on stream
on schedule and will operate at optimum capacity, says a company spokesperson.
Bumpy road in Australia
One thing is clear, Adani Group is not short on ambition. It plans to spend as much as $6 billion
in the next three years in Australia. The investments will be made in Abbot Point coal terminal
where the group bought mining rights, as well as in a railway line connecting the terminal with
the coal mines in the Galilee basin. The company plans to use the coal to fuel its power plants in
India.
But Adanis plans are met with stiff opposition from environment activists led by Greenpeace in
Australia. Greenpeace says the project will endanger Australias Great Barrier Reef due to
mining activities along it, due to increased shipping traffic in the region. Analysts fear if
environment clearances get delayed for the Australian project, it would further increase pressure
on the group, as it has taken on huge debt to fund the acquisition. The company says it will
always comply with the highest standards of environmental protection. Yet, it might not be
understanding
the
scale
of
the
problem
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here,
as
local Australians
are
funding
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Education
Medical Aid
Rural Development
Charitable Initiatives
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Gautam Adani has created an enterprise, the Adani Group which is innovative in all aspects of
the business, from technological to commercial. He was always responsive to the concerns of
employees, society and stakeholders. He has always been a responsible citizen by trying to
harmonize all the activities of his companies with the global environment and actively working
to reduce their load on the environmental.
Today, the Adani Group is worth US$ 7.1 Billion and its flagship company, Adani Enterprises
Ltd was rated among the 50 top performing Asian companies by Forbes magazine. The combined
market capitalization of 3 of its listed companies - Adani Enterprises, Adani Power and Mundra
Port and Special Economic Zone have put the group among Indias top 10 business houses.
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Though India is known to the world for its strides in Information Technology (IT) industry, but
what is relatively unknown is the fact that its real strength lies in its pharmaceutical industry. The
kind of innovation and technological advancement that has happened in Indian Pharma Industry,
Indian IT industry is yet to see it.
Consider this. India has second highest number of FDA (Food and Drug Administration) of
America approved pharmaceutical companies in the world, which supply pharma and pharma
ingredients to America. Most of the big Pharma MNCs around the world source their drugs and
pharma ingredients from India. This talks about the quality and the process perfection Indians
have achieved in the Pharma industry to produce highest quality products at lowest possible
rates. Not only the advanced countries are benefiting by importing high quality- low priced
pharma Ingredients from India, even the poor nations too are benefiting. The reverse engineering
capabilities of Indian pharma companies has brought tremendous accolades from poor and
developing countries.
To know more about how Indian pharma industry is helping poor countries, read on
Indias CIPLA pharma is selling HIV/ AIDS drug in Africa at one-tenth the cost of branded drug,
which is at US$150 per year. Africas over eighty percent of the entire AIDS drug requirement is
met from India. Likewise, NATCO pharma produces and sells Cancer drug at US$ 152 (Rs.
9600), while its original innovator has priced its Cancer drug Gilvec at US$ 2400 (Rs.
1,20,000) in India*. Similarly Bayer Corporation of Germany has launched its rare Renal Cancer
product at US$ 5600 (Rs. 2.8 Lakh). On the contrary, one of the Indian pharma companies has
launched its generic version at a price of US$ 160 (Rs.8000)*. Pfizer sells its innovator sutent
drug to treat Kidney and GE cancer at US$ 3920 for a 45- day course, while an Indian company
has launched its generic version at US$ 392 (Rs. 19,600)*. Roche Pharma Company has
launched its Hepatitis C drug to treat Pegasys at US$ 8720 (Rs. 4.36 Lakhs) for a 6 months
course. An Indian company has produced its generic version and sells at US$ 943 (Rs. 47,160)*.
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There are several such stories narrating how Indian pharma companies are helping the world
keep its health-care cost low. In fact India is increasingly seen as pharmacy of the worlds poor,
as it has perfected the art of producing low cost high quality generics versions of some of the
most complicated and expensive drugs. However there have been heated arguments between the
proponents of patented and the generic drugs, but generally people are of the opinion that
between profits and humanity, companies should uphold humanity. That is exactly the point of
Indian generic manufacturers and they claim that inspite of doing cutting edge research to
produce generics, they are still making profits even while selling at such low prices.
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CEO of CIPLA
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Dr. Reddy eventually started exporting his products to some of the quality conscious big daddy
Pharma companies around the world. By the end of 2012, he got FDA approvals for all his plants
in India. In 1989 Dr. Reddy launched an in-house developed generic version of the drug
Ciprofloxacin An anti-bacterial drug to treat respiratory, urinary tract, gastrointestinal, and
abdominal infections. This product made waves in the Indian pharmaceutical Industry, as there
was no similar product available and demand was huge at that time. The situation remained that
way for four years, and Dr. Reddy reaped good fortune at that time too. Listing on Indian stock
exchanges: The early nineties also saw DRL getting listed on Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE) of India.
When the Ciprofloxacin driven sales boom was happening for four years, Dr. Reddy rewarded
handsomely to his shareholders. Consider this. He gave one bonus share for every two shares the
very first year. The second year he increased it to one bonus share for every share and the third
year, he gave two bonus shares for every share. That is how he became the darling of the stock
market in 1993 and his move was much appreciated. International Expansion: By early nineties,
Dr. Reddy had already learnt the ropes of making generic drugs and selling in India. Now he set
his sight abroad to expand his business there. In 1992, he tied up with Biomed of Russia to start
manufacturing plant there. He followed it up with similar tie-up with a Middle Eastern company
to start two formulations plants there.
Also in 1994 he made a big-bang announcement by starting a formulation plant in USA. Dr.
Reddy exported bulk drugs from India to all these plants, and convert them into final generics
products, and later sold them to these Pharma companies there. That is how he became serious
international pharma player by being successful at this endeavor.
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This was how Dr. Reddy slowly and steadily brought the change in the profile of his company
DRL from a copycat generics drug maker to that of an innovator. Though Dr. Reddys first swipe
at NDD was partially successful, but the ball has been set rolling, as his young team at DRL is
ever enthusiastic to discover new drug molecules and is confident that they would crack it sooner
than later. When the accomplishments of Dr. Reddy are considered, one would get a feeling that
he was haste in deciding things. This is because it appears that he took many risks and survived
because of mere luck. However the fact is that, every move of his was preceded with thorough
evaluation of the same with clear objectives. He only went ahead once the proper ground had
been built. By this he showed to people how one can keeping progressing in spite of all hurdles
and it works as long as one has planned ones move properly.
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AWARDS
Dr. Reddys contribution to the Pharmaceutical industry has been recognized and awarded
profusely by the society. Till 2012 he was a member of the Indian Prime ministers council on
Trade and Industry, which talks high about the recognition and faith that the Indian leadership
team had on him. A few of the awards have been listed below.
Lifetime achievement in health award in 2012 at Asian Voice Political & Public Life Awards
ceremony at London for his lifetime commitment to medical research for improving the lives
of people.
Padma Sri and Padma Bhushan awards from Government of India in 2001 and 2011
respectively.
Sir PC Ray Award in 1984
Chemtech foundation Hall of fame award in 2005.
Lifetime achievement award at IBLA India Business Leadership Award ceremony event
held in 2012.
Dr. Reddy lived a king sized life and always engaged himself with some activity or the other till
he breathed his last on 15-March-2013 at the age of 72. Though he is no more, he has drawn up a
roadmap for people to bring success in life. He exhorted everyone to dream big and aspire bigger
in life, thats when one can do big things in life.
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Once when he was traveling to London, cine star Amitabh Bachchan was in the same flight, who
incidentally had a co-passenger who snored. The next morning, Bachchan came up to him and
said, Dr. Reddy, why dont you discover a drug for snoring. Dr Reddy, who was moved by
Bachchans performance as an Alzheimers patient in the movie Black, said, I dont have a drug
for snoring but I am working on a drug for Alzheimers.
Dr Reddy put his personal money behind this drug research. It was supposed to enter phase I
trial two weeks later. We hope the drug trial marches ahead but even if it fails, itd fulfill his
dream of failing gloriously.
He was indeed very passionate about drug discovery and very proud of the many projects that
the company had, says Dr Rao. He always told us that scientists should never have to face
resource constraints. He is one of the few Indian philanthropists who supported research with his
personal funds.
Perhaps Dr Reddy understood that a solid R&D foundation can sustain a company for several
generations by continually adding new products to the pipeline. He admired the book, Built to
Last and wanted to nurture his company just like the American family built Merck. I want to
build a company thatd last 500 years, Merck is 640 years old, he said.
So serious was he about following Merck that when DRL struck a deal with the multinational for
a monoclonal antibody, Dr Reddy hosted the head of the family of the 13 th generation and got his
own family to know the history of Mercks family organization.
In many ways, with DRL, Naandi Foundation and other charitable activities, Dr Reddy has left
an enduring legacy. He was anguished by the muddled regulatory and legislative environment
from clinical trials to price controls. The industry that has brought so much recognition to the
country is threatened every day
For an entrepreneur who wanted to create a Merck in this country, we hope the industry
tribulations are just a passing phase!
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BIBLOGHRAPHY
https://successstory.com/people/gautam-adani
http://www.slideshare.net/ArulKumar32/adani-group-gautam-adani
http://www.thefamouspeople.com/profiles/gautam-adani-7389.php
http://www.business-standard.com/article/companies/gautam-adani-
faces-his-toughest-test-ever-112103100027_1.html
https://www.google.co.in/search?
q=vision+mision&biwcPrr5HPAhUBwGMKHbpkCrwQ_AUIBigB#tbm
=isch&q=gautam+adani&imgrc=H-cMSCGoxkP1RM%3A
http://www.forbes.com/profile/k-anji-reddy/
http://www.rediff.com/money/2007/jun/12bspec.htm
http://www.biography.co.in/biography-dr-k-anji-reddy.html
http://forbesindia.com/blog/health/k-anji-reddy-i-want-to-build-a-
company-thatd-last-500-years/
http://webovatesolutions.com/Peakdemo3/word/Dr.%20K%20Anji
%20Reddy.pdf
https://en.wikipedia.org/wiki/Kallam_Anji_Reddy
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