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Strategy

Investing in incubation to emerge stronger

The strategic focus, at Adani Enterprises, is not only defined purely by the needs of today but it is also guided by the need to build a resilient nation empowered for tomorrow’s growth.
Our incubation strategy is crafted to this tenet, and is structured around the philosophy of nurturing excellence for the creation of a stronger and more resilient future. It is driven by our efforts to establish diverse new businesses, and to strengthen their core in a manner that helps catalyse sustainable and longterm value not just for the stakeholders but for the nation at large.

This strategy has enabled us to deliver a track record of successfully incubating businesses across diverse sectors through the years. The incubated businesses have evolved into leading players in their respective sectors and are delivering significant returns to shareholders. We have now strategically focussed our attention on incubating emerging core infra businesses in the areas of Green Hydrogen, Airports, Data Center, Roads and Primary Industry including Copper and PVC. We believe these businesses offer significant potential for enhanced business growth and stakeholder value.

S1 Strong Incubation Approach

We have progressively strengthened our incubation approach through targeted initiatives and investments. Our strategy is focussed on fostering innovation and entrepreneurship with the aim of building a robust system to drive India’s sustainable, long-term growth. We identify and grow businesses based on our proven transformative model of investment, which has enabled us to deliver an exceptional track record over the years. Besides embedding the constituent businesses with ESG policies, we provide them with access to the Adani Portfolio of Companies’ competencies, enabling them to become self-sustained, stronger and more resilient.

FY 2024-25 Initiatives & Actions
  • ₹8,000+ crore funds raised from market with mix of Equity and Debt instruments to support incubation
Way Forward
  • Navi Mumbai airport to commence operations in FY 2025-26 with Phase-I capacity of 20 million
  • Construction started for additional capacity of 6 GW cell and module line

Mapping Our Performance KPIs

6Business incubated since inception

81.3%CAGR of Incubating Businesses EBITDA since FY 2021-22

₹31,838 croreCapex spent during FY 2024-25


Capitals Deployed
Material Topics
M1 M2 M11
Risks

Market risk | Business risk | Strategic risk

S2 Strengthening Construction Excellence

Our focus on construction excellence ensures time-bound completion of the business capex cycle at the targeted cost. Our efforts are oriented towards ensuring adherence to the key environmental and social parameters of excellence during the construction process. This strategy has enabled Adani Enterprises to deliver excellent growth across business segments while building futuristic infrastructure for the country. The on-track progress of our various construction projects underlines the success of this strategy.

FY 2024-25 Initiatives & Actions
  • Electrolysers test laboratory commissioned
  • ANIL WTG manufacturing capacity expanded to 2.25 GW
  • Hyderabad and Noida Data Centers commissioned
  • Navi Mumbai airport successfully conducted first commercial flight validation test
Way Forward
  • Navi Mumbai airport to commence operations
  • Construction in full swing for Road projects, COD expected for HAM projects and Ganga Expressway in FY 2025-26
  • Hyderabad Phase II and Noida Data Centers MEP works to complete

Mapping Our Performance KPIs

2 Road projectsachieved PCOD

1 Mining service contractmade operational


Capitals Deployed
Material Topics
M1 M5 M12
Risks

Market risk | Operational risk | Efficiency risk

S3 Investing in Operational Excellence

Our strategic investments in boosting operational excellence for each of our constituent businesses have led to their growth and stakeholder value creation. These investments are centred around building robust supply chains, adoption of cutting-edge technologies, and securing quality certifications benchmarked to global standards. Our operational excellence focus is further strengthened by our continuous digitalisation efforts. Our efforts are supported by transformative monitoring models, as witnessed particularly in our solar module manufacturing processes and wind turbine generation systems. High-end technologies are used at our road monitoring centre, further strengthening the operational excellence of the business.

FY 2024-25 Initiatives & Actions
  • Uninterrupted production supported by backward integration and proximity to ancillaries in ANIL green hydrogen ecosystem
  • ~100% Uptime achieved across Chennai, Hyderabad and Noida Data Center
  • Real-time access to customers through online IRM E-portal
  • 40 new routes, 16 new airlines and 43 new flights added across all airports
  • All airports operating above the KPI benchmark guidelines
Way Forward
  • Significant augmentation of Non-aero activities across all airports
  • City side development activities to be made operational at Mumbai and Ahmedabad Airports

Mapping Our Performance KPIs

4,263 MWSolar module sales achieved

94.4 MillionPassengers handled


Capitals Deployed
Material Topics
M6 M11 M17
Risks

Market risk | Operational risk | Efficiency risk

S4 Reinforcing Risk Management Framework

Effective risk management is integral to our strategic approach, and we have put in place a robust risk management framework for each constituent business. We are continually reinforcing the framework to ensure effective mitigation of all the potential risks faced by the concerned business. The process is overseen by the risk management committee and sub-committees, which analyse and take necessary actions to mitigate the existing and emerging risks. These committees are headed by independent directors and additionally supported by the Audit Committee, promoting transparency and effectiveness in risk management. We also follow prudent capital management plans and strong governance practices to protect our businesses from financial and other critical risks.

FY 2024-25 Initiatives & Actions
  • 78% Employees trained on code of conduct
  • 4 Capacity building sessions conducted for independent directors
  • Climate Risk assessment conducted for key business units
  • Climate Risk related adaptation and mitigation strategies are incorporated into business-wise risk management frameworks
Way Forward
  • Constant review of Related Party Transactions and assessment of effectiveness of corporate governance policies
  • Adani Solar actively pursuing long-term module insurance through Ariel RE, ensuring business continuity and proactive risk mitigation

Mapping our Performance KPIs

ESG Rating

60/100 scoreS&P/DJSI assessment

A- "Leadership category"CDP-CC assessment


Capitals Deployed
Material Topics
M6 M2 M18
Risks

Market risk | Business risk | Governance risk

S5 Maximising Synergies Across Businesses

It is our continuous endeavour to maximise the synergies across businesses to ensure that each business benefits from the strengths of the others. Synergies emanating from location advantage, technological edge, strong logistics, diversity in skill sets and experience and geographical presence lend us a sharp competitive edge in terms of cost while minimising risks. Our integrated end-to-end supply chain of green hydrogen ecosystem is a prime example of maximisation of synergies, as it is being successfully incubated due to the adjacencies created within our constituent businesses.


FY 2024-25 Initiatives & Actions
  • 24% renewable energy consumption
Way Forward
  • To establish a Green Hydrogen production capacity of 1 MMTPA
Mapping our Performance KPIs

On-TimeCompletion of Projects


Capitals Deployed
Material Topics
M1 M2 M11 M17
Risks

Market risk | Business risk

S6 Enhancing Stakeholder Value

Our commitment to ensuring enhanced stakeholder value throughout our journey has been unequivocal. Sustainable practices, stakeholder engagement, and transparent disclosures are some of the key elements driving value creation across the stakeholder groups. The steady increase in stakeholder value over the years is manifest in the growth in the company’s market capitalisation.

FY 2024-25 Initiatives & Actions
  • 68% Growth in Incubating Businesses EBITDA
  • 54% CAGR in Consolidated EBITDA since FY 2021-22
  • 2.9x Net External Debt to EBITDA, while maintaining the capex growth of Incubating businesses
Way Forward
  • Capex spent on Airports, Roads and Copper to start yielding returns beginning FY 2025-26
Mapping Our Performance KPIs

₹5,70,659Shareholder Value Generated for investment of ₹150 increased at CAGR of 31.1% since November 1994

₹2,67,285 croreAEL Market capitalisation

₹7,73,263 croreMarket capitalisation of AEL demerged entities

Capitals Deployed
Material Topics
M1 M2 M5 M8 M9 M10 M11 M17
Risks

Market risk | Financial risk