The business unit oversees end-to-end resource procurement and supply chain management. The Company services prominent customers across end-user sectors and aspires to continue meeting fuel demand for its customers.

Segment Overview

Introduction

The business unit oversees end-to-end resource procurement and supply chain management. The Company services prominent customers across end-user sectors and aspires to continue meeting fuel demand for its customers.

Product/Service Offerings

Leveraging its wide network presence across the supply chain and its position as a market leader, the Company imports natural resources and manages the inland logistical coordination at several major Indian ports, saving logistic costs and ensuring timely delivery.

Sustainability Performance

The business unit, by its nature, is not directly responsible for Scope 1 & Scope 2 emissions, as defined under the Greenhouse Gas (GHG) Protocols. Aligned with the Group’s vision for sustainable value creation, IRM focusses on enhancing operational synergies, reducing redundancies, and providing value-added services. This approach ensures best-in-class customer experiences while achieving cost efficiencies that surpass industry benchmarks, reinforcing its commitment to sustainability and responsible business practices. During the year, the IRM volume stood at 56.5 MMT.

Outlook

The business aims to enhance its capabilities and reach by building a multi-commodity portfolio. Leveraging our expertise in end-to-end natural resource delivery, we aim to drive long-term sustainable growth and establish ourselves as a global leader in trading.

Business Opportunities

The business actively seeks new partnerships with miners, ensuring timely and cost-effective delivery of natural resources to its diverse customer base. Leveraging its extensive supply chain network and market leadership, the Company efficiently imports natural resources while managing inland logistics at major Indian ports, optimising costs and delivery timelines. With a focus on synergistic growth, the business aims to expand its presence in the natural resources segment.

Business Edge

Over the last couple of years, AEL has started expanding product portfolio under its IRM business beyond coal and bunker fuel to include LPG and Rock Phosphate.

LPG

LPG is an important source of energy in India for various industries as well as bottlers. As part of IRM business segment, AEL manages end-to-end resource procurement and supply chain management of Propane/Butane/LPG. This business services prominent customers across end-user and LPG Bottler segments and aspires to continue meeting fuel demand for its customers. The efficient and experienced LPG team helps in instilling confidence among both suppliers and customers. Further flexibility in sourcing the cargo on M or M-1 basis through efficient planning provides an edge during Backwardation/Contango vis-à-vis OMCs who price their product on M-1 basis. Sustainability is ensured through efficient sourcing, operational excellence and having a committed base volume of LPG bottlers/Industries not having gas connection in our hinterland. For second year in succession, AEL has been rated as “1-Good” by CARE Analytics and Advisory Limited as a parallel marketeer of LPG.

Outlook

AEL looks to further consolidate the private LPG Bottler segment and Industries which are not connected to gas grid. Sustainable and cost-effective sourcing from Middle East along with synergy benefits from portfolio company’s infrastructure at Mundra provides a dependable, credible and sustainable edge over others. The web portal for ordering LPG is in testing phase and will act as an enabler in further growth and customer experience.

Rock Phosphate

Rock Phosphate is another product that is under focus by IRM to support India’s growing agricultural and fertiliser industries. The business secures procurement from different origins e.g. Egypt, Jordan, Morrocco, Australia, Senegal, etc. and oversees end-to-end supply chain management of imported Rock Phosphate to cater to the prominent manufacturers across fertiliser segment, which relies on imported goods for 90% of its demand. Leveraging global sourcing networks, robust logistics infrastructure, market insights and customer relationships, this business is positioned to meet the diverse needs of fertiliser manufacturers across the country. Our operations are aligned with national goals of agricultural productivity and self-reliance, while also promoting supply chain resilience and long-term value creation.

Outlook

India’s Rock Phosphate demand is poised for continued growth, supported by strong domestic demand for phosphatic fertilisers. AEL initially looks to target west coast of India for its customers. Government initiatives aimed at enhancing agricultural productivity, such as subsidy revisions w.r.t. Nutrient-Based Subsidy (NBS) are making phosphatic fertilisers more affordable ensuring steady consumption. With limited domestic reserves and ongoing efforts to boost food security, reliance on imported Rock Phosphate will persist.

Bunkering

AEL has been one of the leading private bunker players in the country with strong presence across geographies. With state-of-the-art bunkering infrastructure at our own Mundra Port, Adani Bunkering is in a formidable position to cater to the bunker requirement of vessels in India’s Gulf of Kutch region. The business has flexibility to supply bunker fuel through own Bunker Barge, Pipelines as well as Tank Trucks, which provides a lot of comfort to the customers. Adani Bunkering also has strong presence at various other Indian ports on the West Coast as well East Coast of India where the trade is done in close association with Indian bunker fuel producers viz., the domestic refineries. With its office in Singapore, the trade in overseas geographies is done in close co-ordination with international suppliers.

Consistent growth is being seen in India’s port infrastructure and vessel handling capacities, which is creating opportunity for bunker business to expand its geographical presence across the Indian Coastline, to cater to the fuel replenishment requirement of international shipping lines. Adani with its excellent co-operation and support from its business associates like oil companies and logistics providers is confident of timely and cost-effective delivery of bunker fuels to its existing and prospective clients

Outlook

Our group’s strong presence in port operations provides opportunities to develop suitable bunkering facilities to cater to this bunker fuel demand by scaling up the business operations. Moreover, country is short of bunker fuel availability due to limited production capacity provides scope to fulfil demand/supply mismatch by importing cargo from international markets like UAE and Singapore. Capability and expertise in international trading of cargoes, ability to manage product and currency volatility risks through hedging and international presence at Singapore provides a unique edge over other suppliers.