Adani Australia

3016 words (12 pages) Company Profile

12th Jun 2020 Company Profile Reference this

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COMPANY OVERVIEW

Adani has evolved from being an energy and infrastructure company to an integrated player across Renewables energy,mine and rail. Adani's products and services portfolio touches almost all Australians and asia pacific region, across economic and social spectrums. They will create opportunities and avenues for Australia and all its citizens to realise their true potential. Adani’s Abbot point terminal,which has been exporting coal for more than thirty years,Which is situated twenty five kilometers north-west of Bowen,North Queensland.It has capacity to throughput up to 50Mtpa. First solar farm of  Australia is Rugby Run by Adani Australia and is located near Moranbah,which was fully operational from early 2019.It has capacity to supply 65MW of electricity in phase one, and expand up to 170 MW. Adani Australia commited to sell 80% of the total generated energy. There are total more than 247000 solar panels has been installed. Further Adani australia’s next solar farm is in commercial stage at whyalla. The Carmichael coal mine has capacity of  10 mt per annum and rail line which is 200 km long, both create huge wealth in terms of taxes & royalties, kick in to education, medical and transporation for queensland.

BUSINESS STRUCTURE AND GOVERNANCE STRUCTURE

Adani Australia's business structure diagram as above from this report and Adani Ports and Special Economic Zone Ltd is 42 percent owned by SB Adani Family Trust, with 6 percent owned by Vinod Shantilal Adani and 6 percent owned by Adani Properties Private Ltd. Adani Australia's business structure diagram as above from this study and Adani Ports and Special Economic Zone Ltd is 42% owned by SB Adani Family Trust, 6 percent owned by Vinod Shantilal Adani and 6 percent owned by Adani Properties Private Ltd.; Adani Transmission Ltd is 56 percent owned by SB Adani Family Trust, with another 8 percent owned by Vinod Shantilal Adani and 9 percent owned by Adani Properties Private Ltd Adani Properties Private Limited is an Indian Company one of whose directors is Pranav Vinodbhai Adani, who is also a director of a variety of other Adani Companies. The main stackholder in the group of these businesses, the Adani family has the biggest shares in each. They comprise four managers on the board of Adani Enterprises Ltd. ENVIRONMENTAL FACTORS, THAT INFLUENCE THE DECISION OF ADANI INDUSTRY- I will clarify environmental factors affecting adani southern here.

ENVIRONMENTAL FACTORS, THAT INFLUENCE THE DECISION OF ADANI INDUSTRY

Here, I am going to explain environmental factors influencing to adani Australia as per PESTLE analysis.

POLITICAL

Finally,Federal government has approved strategies for the save environment of queensland, So now adani mine can go ahead.The last crucial federal environment approval required is subject to affection of mining practice to the ground water. Its called groundwater dependent ecosystem Managment plan(GDEMP). Here, federal government appoint CSIRO and geoscience australia to verify the plan, But final approval decision by environment minister.Prime minister Scott Morrison said government relying on the scientific evidence. Federal Government had approve the grounwater plan,However, still adani has to sign off by queensland government before start mining practice. Than, Largest number of black throated finch is found in queensland, So plan for the finch protection is mandatory to proceed mine, even in this case adani got approval by federal government but queensland government have pending. The adani promises to deliver jobs for queensland, the state with 8 seats held by coalition MPs with margins of 4% or less.However the mine not accepted by some citizens in country,its making the issue difficult for the coalition party room.

ENVIRONMENT

Due to heavy mining practice leads high volume of train movements carried out by adani and potential air quality, Soil erosion & degradation and communities damage.To mitigate this issue adani has to covered train wagons and coal veneering,further train tracks construction to cause flooding and reduced flows of water to spring vents and pools, which could lead to ecological and cultural damage. To tackle with all this geological issues adani prepared managment plans in late 2018 was hampered by data gaps and scientific uncertainties, which resulted in the identification of serious short-comings in the plan’s assessment and management approach. Climate change impact arising from mining, so community suggestion to adopt more energy efficient to reduce carbon emission.weed proliferation is a problem in the region,for that weed control measures to be a essential of the carmichael project.

SOCIO-CULTURAL

There is only bowen township is the only residential society nearby abbot point, elsewhere township habitats are not even parmenant resident because of the industrial nature of the port operation.Bowen supported to the farming, forestry and marine practises that have provided to the key business market in bowen. There is 15,017 currently population of bowen town and that will reached about 22,194 people with in 2031 at a rate of 2.1% per year,and only economical growth is likely to be driven by mining sites,with decline in agriculture and fishing sector.Abbot point site has continued with contemporary and recreational such as fishing and camping,Especially juru people have cultural connection to the land. Whitsunday regional council(WRC),local business and community stakeholder have demostrated a capacity and wilingness to accommodate a large population in bowen township and identified that this model incorporates great benefits for the local in terms of economics and social outcomes and population stability. Adani will work with WRC seek mutually beneficial outcomes including minimising housing pressure to town such as bowen, particularly through the construction of the project which will require specific accomodation requirenments. A number of significantlly negative impact may also be excepted,including :-
  • Labour costs are increased within the area
  • Local and regional infrastructure pressure
  • Real estate inflation

TECHNOLOGY

Adani australia is striving to be a leading supplier of the renewable energy sources, it has two solar farm rugby and whyalla,both projects has acquired 669 hecters and 390 hecters land by rugby and whyalla respectivily. Rugby has capacity upto 1,85,000 Mwh per annum which is sufficient to 23,000 homes of queensland, It has initial ability to generate 65 Mw that would be expand up to 170 MW. Total 4 lacs seventy thousands solar panels installed at whyalla site will generate up to 300000 mwh power each year,that much really sufficient for the 60000 homes. Energy demand is changing to meet this growing need globally.In Asia with the construction of next generation coal-fired power stations, an increase in use of gas and renewables like hydro, solar and wind power.Renewables power generation will be increasingly important, but we must ensure our energy sources are reliable and affordable.

ECONOMIC

The chairman of the adani group, announced that the board of the group had given final investment approval for the $5.3 billion first stage of the carmicheal mine project in the galilee basin and for parallel project of rail line in between basin to the abbot point coal terminal. Adani australia approx $900 million of loan would be derived from australian government. In addition,queensland government agreed to defer the payment of royalities,within the condition that remain amount has to repaid at later date. In terms of global coal price and coal markets,Coal price increased from around $US50/tonne to $US130/tonne,When adani buy carmicheal mine lease,with in asia particularly india and china rise in demand of coa,However              gradually reduction in use of coal for powerplant in europe and north America, combined with a slowdown and then a decline in Chinese coal consumption, produced a steady decline in seaborne coal prices combined with a slowdown and then a decline in Chinese coal consumption, produced a steady decline in seaborne coal prices. As of late May 2017, Australian heat coal prices were roughly $US84/tonne Futures markets predict price declines over the coming years. The future shipping cost in February 2020, the project's probably start date for deliveries, is $US63.65/tonne.

LEGAL

In addition to the enormous campaign to protest to adani for mining practise in queensland,it has to faced multiple lawsuit in the land court of queensland. First legal application lodge by Mackay Conservation Group in early 2015 in federal court in sydney, received enormous media attantion after minister's green signal, but court did not offer any decision, later issued a declaration that the Minister of the Commonwealth Environment did not consider threatened species, yakka skin and ornamental snake, contrary to the demands of section 139(2)of the EPBC Act. Second request, introduced by Australian Conservation Foundation in early 2015, claims that the minister failed to correctly consider the effect of climate catastrophe from mining practice Great Barrier Reef World Heritage Area. The Federal Court rejected the second request at first example, but in a later judgement the Court restricted the expenses of ACF to 70% of the expenses of the ministers And 40% of Adani's expenses. Third judicial review application highly likely to again approve the water facilites for the mine.ACF lodge application on 4th december 2018,and judicial result in favour of ACF against adani, However decision does not stop to adani. Government stand is lead to confusion only to judicial review and which allow merits apeals. There certainly are arguments that favour merits appeals being provided for decisions under Parts 6-9 of the EPBC Act but at present judicial review, with all its limitations.

TOP THREE RISKS  FACING BY ADANI AUSTRALIA

1)The campaign against the major mine, to stop adani, announced it was multiply its campaign efforts in response to the announcement. Mackay Conservation Group co-ordinator Peter McCallum said Stop Adani was "not going away",He added ignorance of science and environmental law and adani’s fast track plans that damage queensland water. Aussiz protesting to adani mine at next level this time and this is the major risk on adani. 2) In june, Australian government approve the plan to  save rare birds of queensland but with just regulatory hurdel for its plan to mange ground water level Government approval for digging that not only is it sufficient for adani to begin mining, it has to cope with the market and businesses that are not interested in adani mines. Furthermore, there is a issue with the use of Aurizon's railway line, originally adani plans to construct its own 388 km railway for basin point and abbot point connectivity. However , adani switch to another plan for rail is 200 km long own track before connecting to the existing goonyella line owned by Aurizon.But that require an agreement of access pricing and condition. 3) Third one is the economical risk, Adani invested two billion USD for this australian project and ultimately all this money come from pocket of their chairman gautam adani. However, analysis of investment on mines shows that US$16 per tonne ,or US$ 160 million per annum,thats very small investment on return.As per the experts view this kind of investment could only be profitble on the long life of mines and significant future expansion.Then there’s insurance, Every major bank in the world refused to insure ,and without isurance Adani cant start to mining on site.

BUSINESS PRACTICES ADOPTED BY COMPANY

POWER

Adani Australia’s leadership team across its Renewables, Port, Mine and Rail businesses brings a wealth of experience and knowledge within the resources and energy sector. They all share their wisdom to delivering for advancing world.

INFORMATION

The success of any company depends upon the most basic aspect – knowledge sharing among employees. Whether it is verbal or digital, sharing leads to the creation of a stronger knowledge base and fosters an organized knowledge management system.Adani arrange orientation seminar for the freshers in organization, through that employees have enough company background details.They are sharing brouchers with detailed information about company profile,product and services. A quarterly financial report distribute within group, So employee even track market status of company.

KNOWLEDGE

Adani managment and development centre focus on build talent by employee-centric & approch to define the business outcomes,further company had developed program for complete experience,it follow through and complete measurment of learning effectiveness. Adani has e-learning platform ‘E-vidyalaya’to support and fulfill learning within diverse business location of group,its not bounded with time and place,that will enhance learning retention. Learning resource center ‘AMDC’with rich collection of book,e-book and journal on all main area business practise and other area.

REWARD

Adani provide and maintain a clean, healthy and safe working environment for employeesm, aditionally formulate schemes and policies to address health,superannuation and welfare needs of employees and their families. Workplace environment that is safe,hygienic and which uphold, continues promote employee morale and  career development though various HR policies. They Take cognizace of the worklife balance of its employees ,especially that of women.

CONCLUSION

Adani mines invested huge amount of their time and wealth in australian mining projects, From begining of mining project in 2010, it estimated to starting digging till 2014,But due to the protest in country against adani to save their environment. Company stuck in number of government approvals,afterall company fight toughly against time and legal challenges,  adani has proved their stratigies and plan by environment minister. Finally adani granted for mining project in june 2019. After all this protesting campaigns against adani are more effective than beginning.

REFERENCING:

1)     Home - Environmental Justice Australia. (2019). Environmental Justice Australia. Retrieved 15 August 2019, from https://www.envirojustice.org.au/ 2)     Adani approval could be the last decision of Morrison Government. (2019). ABC News. Retrieved 15 August 2019, from https://www.abc.net.au/news/2019-04-08/adani-approval-last-decision-morrison-government/10980510 3)     Environmental Law Australia | Carmichael Coal (“Adani”) Mine cases in the Federal Court. (2019). Envlaw.com.au. Retrieved 15 August 2019, from http://envlaw.com.au/carmichael-coal-mine-federal-court/ 4)     Adani Australia. (2019). Adaniaustralia.com. Retrieved 15 August 2019, from https://www.adaniaustralia.com/projects-businesses/abbot-port-environment 5)     Fickling, D. (2019). The numbers on Adani simply don't add up. The Sydney Morning Herald. Retrieved 15 August 2019, from https://www.smh.com.au/business/companies/the-numbers-on-adani-simply-don-t-add-up-20190524-p51qoy.html 6)     (2019). Adaniaustralia.com. Retrieved 15 August 2019, from https://www.adaniaustralia.com/-/media/Project/Australia/Fact-sheets/ADI0016_MarketingBrochure_Renewables_FINAL.pdf?la=en&hash=77DF7FA437F74FFDA2101B6ED 7)     Adani Australia. (2019). Adaniaustralia.com. Retrieved 15 August 2019, from https://www.adaniaustralia.com/energy-and-innovation#communitiesSec 8)     Stone, L. (2019). 'Weeks, not months': Queensland Premier announces deadline for Adani approvals. The Sydney Morning Herald. Retrieved 15 August 2019, from https://www.smh.com.au/politics/queensland/deadline-set-for-adani-approvals-20190524-p51qq8.htm 9)     The Conversation. Retrieved 15 August 2019, from https://theconversation.com/explaining-adani-why-would-a-billionaire-persist-with-a-mine-that-will-probably-lose-money-117682 10) Functional Areas Of Business: Business Departments Explained. (2018). Biznas Business Blog. Retrieved 16 August 2019, from http://www.biznas.co.uk/business/functional-areas-of-business-explained/ 11) (2019). Treasury.gov.au. Retrieved 16 August 2019, from https://treasury.gov.au/sites/default/files/2019-03/c2017-t240634-Adani.pdf 12) Cox, L. Cox, L. (2019). Campaigners criticise 'reckless' approval of Adani mine in Australia. the Guardian. Retrieved 16 August 2019, from https://www.theguardian.com/environment/2019/jun/14/campaigners-criticise-reckless-approval-adani-mine-australia

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