Business Model of Adani Group: Looking Closely at How Adani Group Makes Money

Sushree Sangeeta Behera Sushree Sangeeta Behera
Aug 28, 2021 6 min read
Business Model of Adani Group: Looking Closely at How Adani Group Makes Money

India is a huge market for almost all types of products and services. The private players play a pivotal role in fulfilling the needs of this gigantic population. The business market of these private companies is growing huge day by day with the increase in demand for goods and services. Earlier, if a person wanted to buy a packet of edible oil, he might have 3-4 varieties. But now, it has increased to 30-40. The actual competition comes to the limelight, and only the superior brands providing the best quality survive here.

The Adani Group of companies is one of the largest private companies in India. It has a global presence in almost 50 countries. The Chairman of the Adani group is Gautam Adani. He is even one of the richest people in India. Adani group's widespread business includes airport and seaport management, coal mining, power generation, Renewable energy production, edible oil production, food processing, etc. The company has its headquarters in Ahmedabad in the state of Gujarat in India.

About Adani Group
Business Model of Adani Group
What's unique about Adani Group's Business Model
How does Adani Group make money?
Conclusion
FAQs

Business Strategies of Adani Group

About Adani Group

Gautam Adani | Founder of Adani Group
Gautam Adani | Founder of Adani Group

Adani Group of companies came into existence in 1988 by Gautam Adani. He is also the Chairman of the group. Adani operates across India and overseas in several businesses such as Renewable energy production, maintaining port facilities, oil and gas production, mining, and food processing. The group is a private conglomerate with nearly 17,000+ employees in the year 2021. In April 2021, the company crossed 100 billion dollars in market capitalization.

The Adani Group operates coal mines in India. In addition to that, it also owns seaports such as Mundra port, Krishnapatnam port, Hazira port, etc. The group owns several solar farms in the country. These farms produce enormous amounts of electricity. Adani took up the responsibility of the operation of several airports in India- Jaipur, Guwahati, etc. The Adani group operates several Special economic zones in the country near to its seaports. The group is also involved in defence equipment manufacturing with its facility in Hyderabad. Apart from India, Australia is also one of the primary locations for the business operations of the Adani group. There are several other facilities in different countries.


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Adani Group products and Services include:

Adani Group Products
Adani Group Products
  • Edible oil and food processing: Adani Wilmar produces the famous edible oil Fortune. It is the first choice of millions of Indians. Also, other food products under the brand name Adani Wilmar are Soyabean, rice, pulses, etc.
  • Adani Oil and Gas: Adani works jointly with Indian Oil works under the name of IndianOil-Adani Gas Pvt. Ltd. Also, Adani owns the Adani Total Gas system that connects cities as networks for the distribution of CNG and PNG.
  • Renewable Resources: Adani group Operates Adani Green Energy Ltd that operates solar parks and Wind farms in India. It provides pollution-free green energy-generated electricity to thousands of households.
  • Adani ports and logistics: Adani owns India's largest private seaport Mundra Port that operates the world's largest coal terminal. Adani provides logistics facilities to millions of tonnes of goods through sea routes as well as Land routes. Adani SEZ extends economic support to the country.
  • Mining: Adani operates Coal and iron ore mines. These mines produce valuable minerals that find utilization for power generation in thermal power plants and Steel production in Steel plants.

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Adani Group Target Audience:

The primary consumers and customers of Adani Group is the Middle-class section of the society. They include the customers who purchase food products of Adani Group such as edible oils and Soya chunks. But, the Adani group works with large companies and the government. The deals in mining, oils and gases, Renewable energy, defence equipment are possible with the government and private entities. Then the logistics and ground departments of the group supply services to the local public.

Business Model of Adani Group

Adani Group Logo
Adani Group Logo

Adani Group is an Indian multinational conglomerate. Adani Group has a diverse number of subsidiaries. Each of them has a different kind of Business model. But, the common business model for such a giant company is always aligning with the government's interests. Adani Group has made some remarkable developments during the reign of many governments. It also follows acquisitions in the case of mining.

Apart from this, the rise in demand for renewable energy is fulfilled primarily by Adani in India as Adani owns chief solar properties in the Nation. From major industries to minor industries, the Adani group always tries to invest in a variety of Businesses to strengthen their business empire.

What's unique about Adani Group's Business Model

The uniqueness of the business model of Adani lies in the following secrets:

1. The Adani Group witnessed some developments in the stock markets as they became the third country to cross $100 billion in market capitalization.

2. The uniqueness in Adani's business model includes a wide variety of businesses that bring profits from different sources as Adani invests in diversified businesses. It balances the profits and losses.

3. The Adani Group invests in the most profitable businesses such as renewable energy, oils, and gases. It is because these are in growing demand. Targeting the requisite fields of Work always brings profit at one point or the other.

4. Adani group invests not only in National projects but also in International projects. One such project includes a $7 billion coal mining project in Australia that has gone through high degrees of controversy. However, it turned out to be a highly profitable project for the group. Adani also owns ports in Australia that transports coal in Queensland.

How does Adani Group make money?

Adani group has a lot to provide to its customers, from food products to the cooking gas used for cooking them. The company's chief source of revenue mainly comes from its six key companies. Adani imports coal and edible oils from foreign soils. This trade provides profit to the company as they sell them at bit profitable prices. Also, it owns a vast amount of cargo intake through its ports from which it gets money from shipping companies.

The Adani group gets orders from the government that leads to profits. It does this by working with the government in the defence and aerospace sector. International investments provide many parts of the revenue as it's a global conglomerate. So, the overseas profit also matters a lot. Other sources of income mainly come from other diversified businesses in which the company has heavily invested.

Conclusion

After the Tatas and the Ambanis, the next name always comes up as Adani Group while counting for the most famous people in diversified businesses. Investing in different sectors always reduces the chances of heavy losses. It is because the sources of profits when maintained properly are always more than the one which brings losses. Adani group will expand further in upcoming years and the business empire of Adani will expand more and more with this pace of success.

FAQs

Who is the owner of Adani Group?

Gautam Adani is the owner of Adani Group.

What does Adani group do?

Adani Group operates in various sectors like:

  • Edible oil and food processing
  • Oil and Gas
  • Renewable Resources
  • Ports and logistics
  • Mining

What is the number of employees in Adani Group?

There are around 17,000 employees working for Adani Group.

What are the subsidiaries of Adani Group?

Companies listed under Adani Group are:

  • Adani Enterprises Ltd
  • Adani Ports and SEZ Ltd
  • Adani Total Gas Ltd
  • Adani Green Energy Ltd
  • Adani Transmission Ltd
  • Adani Power Ltd

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