Introduction
to Adani Group Business Case Study
Think that one day you are returning from a party with your
friend to home and you have been
kidnapped between the way and after
that a call is been placed at your home
And 12 crore rupees are considered from your family members. Don't know that you will be able to reach
home and you don't even know that
you'll be alive or not think that if
something like this happens with you, what would you do? There is some such story of Mr. Gautam
Adani The Man Who Didn't Even Finish
His College Today he beat the world's
biggest investor Warren Buffet. Has
become the 5th richest man in the world
The
Rise Of Adani Group
But the question is that the person whose net worth in 2018
was 8.7 billion dollars After all what
happened in just 4 years that his net
worth reached 127.8 billion dollars After
all, how can one earn 115 billion dollars in just 4 years? Is Adani a Scam? Or is Adani Industries doing something that
most people are not aware of? After
all, what is the secret of this tremendous rise under Adani Group? are they doing something illegal? and wo kaunse powerful business lessons hai You can implement on yourself by learning
from this case study. so this story
starts during 1978
How
Adani Group was Started by Mr Gautam Adani
In which Gautam Adani came from Gujarat to Mumbai joined Mahindra Brothers Diamond Company. Starts working as a diamond sorter But after some time Gautam Adani's brother
Dr. Mansukh Bhai Adani calls Gautam
Adani back to gujarat because he is
setting up a new plastic factory over there
Gautam Adani returns to Ahmadabad
1st
Business Strategy of Adani Group
And who knew that this one plastic business would open
the doors to international trade for them?
in todays date out of all the companies his most powerful company is
Adani enterprises limited where the
main work is import and export If you
look on the ticker tape, all the listed companies of Advani Group have Has given good return to all its investors And all these companies are in profit And all these companies are in profit So their maximum revenue comes from Adani
Enterprises which is in import and
export business Inside Adani's Plastic
Manufacturing Business PVC granules
were used to make PVC Pipes. And in
those days there was only one such company in India which made Pvs Pipes. which was IPCL limited But all the granules that Adani needed for
manufacturing That much supply can
never be picked up by IPCL And compulsively Adani had to get all that
material imported. Now see the magic,
in those days if anyone wants to import plastic in bulk So he would have needed a LOA letter of
authorization. which took a lot of
time and money to get it But
Supressinglay Gautam Adani has come up with such a solution that not only saves
his time Rather they have earned
crores of rupees too. The name of the
solution was Shop in Shop In Simple
Words A small Shop Inside A big Shop
Adani
Imports Business Strategy
At that time Gautam Adani
tied up with state psu's, export corporations, or gsec Placed his orders along with their orders now lets see how it works consider that Adani imports needed to
import 200MT plastic If these 200
votes plastic they have to import for
that he needs to give LOA but for
making LOA he needed a lot time and money
now lets see what Gautam Adani did!
so whenever state pso's, gsec or export corporations used to place there
bulk plastic orders Gautam Adani used
to place the requirements of his import order by merging with them. So all these corporations place their order
with the import order exporter. Because
they all order in bulk So it is not a
big deal for them to take the LOA And
after the import order arrives, Adani keeps the required goods on the side and used to sell the leftover goods in the
market Due to this, state psu's and
government organizations used to get money.
And Adani Imports used to get the job done without LOA too. And on seeing where Adani used to import
only 100 votes of plastic It grew to
40,000 MT in just 4 years. in the year
1997 Within the policy of levelization of the government Gujarat's Mundra Port is privatized Whose contract was awarded to Adani Group
in 1995. Even today if you look,
Mundra Port is one of the biggest cash cows of Adani Group. but interestingly if you look very
carefully Adani Group is doing
something that will take India to the next level in the coming time.
Adani’s
Secret Plan
and its name is START
TO FINISH CONGLOMERATE That is, to
create a company that goes from making products to until it reaches the end consumer controls everything so lets see how these all works to understand this we have to go a bit back
in time in 1890s one of the richest
man in America
Adani Group Business Expansion Strategy
company of Mr. Andrew Carnegie, Carnegie steel Which used to swear 80% of its entire steel
market in those days they used to work
just like that in those days firstly
Carnegie acquired coal and iron mines after
that Carnegie settled up steel mills and
started making steel and with the
ready steel he constructed railway lines
and started owning many railroads
Shortly after that, Carnegie started taking many transportation routes
under his control. and then finally
the steel that was made by Carnegie's Steel Company Carnegie Steels was involved in the
construction taking place inside the same steel. It means that steel making starts with iron
and coal mines. and ends with
construction from coal mines to
construction Carnegie took hold of
everything lets see how does Adani
group does this now look at this very
very carefully
How
Adani Group Dominates Businesses
If you will see the
location of Major Businesses of Adani Group
it is located in such arrangements
Adani Port Wave bridge is nearest to Adani Port Projects where all their belongings are unloaded where all their belongings are unloaded Adani logistics Moreover from Adani Groups Townships to
Adani Wilmar All these companies are
located very close to each other. You
must be seeing that Adani Groups have located most of their companies within the same region. and most importantly the business of these
companies are interlinked within themselves
If you want to understand Adani Group, then it is very important for you
to understand these 3 levels. number one originators
2nd
Business Strategy of Adani Group
Inside this comes the companies from where the production of
the product actually starts. so in
these originators comes Adani gas, Adani Coals, Adani renewables, Adani iron mines, Adani ports These are all such companies of Adani from
where the products start moving in the actual. second level is supporters in which comes Adani power, Adani airports,
Adani logistics These are the
companies that support Adani's originating companies. third and most importantly builders in which comes data centers, transmission,
gas distribution, Adani wilmar Adani
healthcare, real estate, Adani infra builders
are mainly those companies who mostly helps linking or supporters and
originators Every Adani Group business
is internally connected Due to which
from making their product till reaching the consumer. Adani group controls the complete chain
How
Adani Group Controls the Whole Supply Chain
Its advantage is that Adani Group can expand itself whenever
it wants. but there is a dark side to
this story too but the question is what
exactly is the dark side
Dark
Side of Adani Group
In 2018 Indian government decides to privatize 6 airport where government used to give the contract
to who have the experience of
constructing the airport or run the airport
At this time the government has given this opportunity to those people
by relaxing all the rules. Those who
do not have any experience in running or building an airport And Guess What After This Relaxation Adani
Group Gets Tender For 6 Airports on
this topic Kerala's financial minister
talks openly and says adani
group winning the 50 year loose to
operate the Trivandrum international airport was an act of brazen cronyism That is, there is a lot of partiality
inside this tender. But you know what
this airport deal is only a small part of the story story is still left not only airport, Adani group is india's
largest private port operator but
thermal coal power producer too Due to
which there has been a jump of 230% in the net worth of Gautam Adani. but have you thought the how is does Gautam
Adani does this work so easily well
the answer is oligarchy in simple
words powerful political connection Is
it very common in India to have political connections all over the world? Dhirubhai ambani at the time of indira
gandhi and in todays date Mr. Gautam
Adani even if you see in US all the
billionaires belong to technology sector
Because of this, tech companies got a lot of advantage in taxation. huge examples of these are facebook,
amazon, google and apple similarly if
you see top billionaires of russia you
will see that most of the billionaires belong to steel and oil industry and you can only work on these industries
when you have full support of the government
shocking right? America which is the wealthiest country of this world its 1% of the population has more than 40%
of the wealth of the entire country this
is a bitter truth that politically
connected tycoon have a huge support of
government till now and will have further too
because no matter how much you deny it
but this world runs on capitalism
Credit suisse in 2015 in her report "house of debt" that Adani group is under deep financial stress because if you study overall financial
status of Adani group so you will see
that on the complete group there is a loan of more that 30 billion on tricker tape you can see all the
statements of Adani groups different companies from balance sheet to profit and loss
statement and if you see it from
growth view so you will be able to see
growth of all the companies too from
the debts till the profits you can see
everything in your screen but if this
debt is been managed properly so the
day is not too far that Adani group will bring a very big change in india because in the upcoming time, the speed of
Adani group's growth it is
interconnecting everything from
airport to port from electricity to
gas distribution Adani group is trying
to take control of everything which will
be of an advantage when everything will be well connected Due to which the infrastructure overall
development of our country will go to the next level.
Business
Lessons From Adani Group Business Case
Study
What are the most important powerful lessons from this case
study that we can learn and implement in our lives? first lesson take calculated risks no risk no profit That's why every businessman definitely
faces some kind of risk. but the most
important thing is that the risk should be well calculated Because without thinking, risk can ruin
you. Due to the debt on Adani Group,
he is expanding himself with great speed.
Some people even question this But
if you study Adani Group's Financials carefully So many listed companies of Adani Group are
working on good profit. Due to which
it is very easy for them to handle these loans. second lessons use the loopholes I know many of you will say that this is
wrong but it is not like that This Thing Is Wrong Only When You're
Breaking A Law Under It in every
system there are loop holes for sure by
taking an advantage of the loopholes you can earn a good amount of profit Provided which is not an unlawful act even it is a very large business they still
use the loopholes and even you people
can do the same and if you need a Blog on loopholes please do tell me in the
comment box learn to give up the good
to go for the great as said by John D Rockefeller we people easily get attached to our
business or products Due to which we
can never see the changing times And
we sit with our products by heart. Every
business has a time and times always change
Maybe the business that was profitable 10 years ago from today it might not be profitable at all today How many of you go to cyber cafe in today's
date? Or how many of you use today's
date reel camera? In today's date, you
have hardly seen pendrive or CD in someone's hand. but why is it so because time has changed The biggest business houses whether it is
Ambani, Tata, Birla or Adani all these
business houses changed themselves according to time Due to which even today these business
houses are standing for so many years.
Reliance Group exits from petrochemical business and enters digital
business Adani Group divests from
traditional business to enter renewable energy and data centers And today Tata Motors is also creating a
new revolution by expanding in the field of electronic vehicles. the PayPal mafia do you know that only 6 people of papal mafia
together Startups from across Silicon
Valley control the ecosystem These 6
people became so powerful by taking exit from Paypal that
you can't even imagine This mafia is
controlling the major portion of Silicon Valley today.