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Thinking big Doing better
Resources Logistics Energy
Today & 2020
Resources
Logistics
Energy
Coal Mining
2012 : 2 MMT
9M 2013 : 3 MMT2020 : 200 MMT
Coal Trading
2012 : 36 MMT
9M 2013 : 34 MMT2020 : 100 MMT
Port Cargo
2012 : 66 MMT
9M 2013 : 65 MMT2020 : 200 MMT
Power Generation
2012 : 4660 MW
Current : 5980 MW2020 : 20000 MW
2
Coal Trading & Mining
2020
2012
300MMTPA
36MMTPA
3
Coal: Fuel Security
2012 2017 2020
658975
124036
80
100
2
70
200
19%
696
1125
1540
Units in MMTPA
Mining (AEL) Imports (AEL)
CIL & Other Imports AEL Market Share
Source: Ministry of Coal/XIIth Plan Working Group/Company estimates,
13%
6%
* As of 31st Dec 2012
Adani: Key Supplier to Growing Coal
Demand in India
Coal imports rising steadily in India
driven mainly on account of higher
demand supply gap
Coal demand driven predominantly by
Indian Power Sector – estimated to
reach ~275 GW by 2017 from 211 GW*
currently
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Largest Procurer of Coal in India
Multi-CountryProcurement
Multi modal Logistics
Customer Account Management
Financing
Consistent market share of
~ 50%
Map not to scale
Australia
Indonesia
South Africa
Mundra
GangavaramKakinada
Vishakhaptnam
Tuticorin
Haldia
Suratgarh
Tanda
Unchahar
SipatKorba
Koradi
Parli
Chanderpur
Simhadri
Kota
Chhabra
GandhinagarWanabori
Dadri
Panipat
Yamunagar
Hissar
Panki
Parichha
Harduaganj
Kahalgaon
Ramagundam
Kondapalli
North ChennaiMettur Tuticorin
Rihand
Vindyachal
BakreshwarBandel
Sagardighi
Kolaghat
Paradip
[Talcher]
MejiaDurgapur
Badarpur
Ennore
Pipavav
Bedi Navlakhi
Kandla
Richard Bay
Ports
Locations served
Indonesia
TarakanTanjung Bara
BontangSamarinda
Muara Satui TanjungPemancingan
Queensland
829 36
6580
100
020406080
100120
FY07 FY10 FY12 FY15 FY17 FY20
5
Largest Mine Developer & Operator
Mining LocationsPorts
Mundra
Machhakata/Mahanadi
Dahej PortHazira Port
Parsa
Chhendipada
Parsa – KenteMormugao Port
Vizag
Kandla
Land Acquisition
Develop, Plan, Operate
& Manage Mining
Operations
Establishment of Washery
& Rejects based Power
Plants
Logistic Solutions
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MDO: Mining, Development and Operations
Notes:1. RRVUNL – Rajasthan Rajya Vidyut Utpadan Nigam Limited ; 2. MGCL – Mahaguj Collieries Ltd. ; 3. CSPGCL – Chhattisgarh State Power Generation Company Limited 4. UCMCCL - UCM Coal Company LimitedAdditional : # in process 30 MMTPA, ̂LoI received for 20 MMTPA from RRVUNL
201520142014Production Started in Jan 13
Expected Commencement of
Production
2.752.445.465.16Overall Stripping Ratio
4050515Capacity at Peak Level (MMTPA)
E/F GradeF GradeF GradeF GradeAverage Grade
1.503.00.150.45Mineable Reserve (Bn MT)
21.9120.4312.5227.67Block Area (Sq Km)
UCMCCL4MGCL2CSPGCL3RRVUNL1Beneficiary
ChhendipadaMachhakata / Mahanadi #ParsaParsa – KenteMine
OrissaChhattisgarhState
Coal Mining Operations – 110 MMTPA ^
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Indonesia Mining: Bunyu Coal Mine
Indonesia
Bunyu Island
Coal Crushing
Coal Loading
Particulars Capacity
Location Bunyu Island, Indonesia
Reserve 180 MMT
Peak Capacity 11 MMTPA
Current Capacity 7 MMPTA
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Coal Mining
Australia Mining: Carmichael Coal Mine
Particulars Capacity
Location Queensland, Australia
Resource 9.4 BnMT (JORC)
Peak Capacity 100 MMTPA
Coal Quality 5400-5500 Kcal (GAR)
Expected Commencement 2015 Largest Investment by an Indian
company in Australia.
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118 Km67 Km
195 Km
270 Km
Blackwater
Clermont
BOWEN
Galilee
BASIN
China First
Suggested rail links
Blair Athol
Kevin’s Corner
Abbot Point
Dudgeon Point
Goonyella System
Newlands System
Carmichael Coal Mine
Ports and Logistics
2020
2012
200MMTPA
66MMTPA
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Ports & Logistics: Immense Industry Potential
Ports in India: An Overview
A coastline of 7,517 km, comprising 13 Major and 187 Non-major Ports
About 95% (by volume) of India’s international trade moves through Ports
Growth (CAGR) over the last decade
•Major Ports: 7% (run by GoI)
•Non major Ports : 14% (Private Ports) - Double the growth compared to Major Ports
•Mundra Port, India’s Largestnon Major Port (36% CAGR).
FY 12 FY 17 FY 20
5601,034 1,221
293
7971,015
66
193278
Units in MMTPA
7%
11%
Source: Company estimates
10%
Major Ports Non Major Ports 1
APSEZ Ports APSEZ Market Share
919
2024
2514
11
APSEZ: Market Leader In India
• Ports under public private partnership
• Greenfield development with limited revenue share to government
• Opportunity for expansion • Commercially negotiated pricing
Inland Container Deports
License to operate container rail across India
Mundra
Hazira
Vizag
Dahej
Kishanghar
Patli
DahejMundra Hazira Mormugao VizagKandla
Mormugao Abbot*
AUSTRALIA
INDIAKandla
APSEZ as developer of Non Major Ports
Operations by Operational FY 16 Operational Operational FY 14 FY 15
Cargo Bulk/Container/Crude Bulk Bulk Bulk/Container Coal Coal
Berth 3150 mtr 600 mtr 566 mtr 1580 mtr 300 mtr 310 mtr
Expansion Yes No No Yes No Yes
Connectivity Rail/Road/Pipe/Air Rail/Road Rail/Road Rail/Road Rail/Road Rail/Road
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* Independent Board of Director of APSEZL has in principle decided to divest stake in Abbot Point, Australia to Adani family subject to approvals & formalities.
APSEZ: Pan India Presence
Port Name Mundra Dahej Hazira Murmugao Vizag Kandla
Capacity (MMTPA)
Bulk (MMTPA) 100 20 15 - - -
Crude (MMTPA) 50 - - - - -
Container (Mn TEUs) 4.0 - 1.5 - - -
Total Capacity(MMTPA) 200 20 35 - - -
Under Development
LNG 5 - - - - -
Bulk 40 - 10 7 20
Total Development 45 - 10 7 20
Incremental Capacity 245 20 35 10 7 20
Fully Mechanized √ √ √ √ √ √
Revenue Share NIL NIL 3% after 10 yrs 20% 40% 25%
Tariff Fixation Commercially Negotiated
Commercially Negotiated
Commercially Negotiated Regulated Regulated Regulated
13
APSEZ: More than 250 MMTPA Capacity Created
14
Cargo Handled at Adani Ports
Capacity Creation: Assets Created and Under Implementation
In MMT
Indian Ports (MMTPA)
Ports Current Capacity
Proposed Capacity
Mundra 200 245
Dahej 20 20
Goa - 10
Hazira 35 35
Vizag - 7
Kandla - 20
Total Capacity 255 337 3 4 59 12
20
2936
40
52
66
FY02FY03FY04FY05FY06FY07FY08FY09 FY10 FY11 FY12
0
50
100
150
200
250
300
350
Mundra Dahej Hazira Murmugao Vizag
APZEZ: Current Positioning & Connectivity Edge
15
Cargo at Indian Ports: 9M FY13: Mundra continues at 2th #
Ports in India: An Overview
• Mundra – Delhi vis-a -vis Mumbai - Delhi 322 km distance advantage
• Mundra – Bhatinda vis-a -vis Mumbai - Bhatinda: With Bhildi – Luni; Conversion completed; distance advantage: 392 km
• Double stacking on trains from Mundra & Python Rail: 90 wagons train operated out of Mundra
0
20
40
60
80 69.559.2
48.0 44.2 44.1 40.8 39.927.0
21.0 20.2 14.9 14.9 12.2 8.7
In MMT
Rail Linkages & Distance Advantages
APSEZ: The Energy Gateway
Crude: Crude – PoL products imports
• 2 SPMs: Servicing Indian Oil Corporation and HMEL
• Scope to add in 2 more SPMs as cargo ramps up
• 2 Crude pipelines and a PoL pipeline linked to north India
Coal: Feeding to power projects across the hinterland
• Mundra caters to 17% of India’s coal imports;
poised to grow to nearly 25%
• Operational power generation capacity of 7820 MW.
under implementation 800 MW, under development 3300 MW
LNG: Servicing the “tomorrow” of Energy
• LNG Terminal of 5 MMTPA proposed
• Supply to hinterland via Mehsana Bhatinda pipeline
Deep Draft, Location Advantage, Established Connectivity
Transmission Lines
Crude Pipeline to HMEL, Bhatinda
Crude Pipeline to IOC, Panipat
PoL Pipeline to HPCL, Delhi
LNG Pipeline Mehsana to Bhatinda
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APSEZ: Unparalleled Operational Expertise…
Storage
1 mn sq. mtrs of Warehouses
400 mega liters Liquid Tank Farms
12.5 Hectares of Back up yard for containers
Pilotage &Towage
20 tugs & master mariners
13 Dredgers for Capital
Dredging across ports
Berthing
20 Bulk Berths
8 Container Berths
2 Single Point Moorings
Cargo Handling Bulk Handling: 135 MTPA Containers: 5.25 MnTEUs Crude Handing: 50 MTPA Fully Mechanized Cargo
handling terminals
Internal Transportation
>58 kms of Conveyor Systems
>120 kms of private roads
>80 kms Railway Sidings
Evacuation
150 kms of private railway line
Pipelines over >1,000 kms
3km airstrip at Mundra
17
APSEZ: Scalability of Port (40 km of Waterfront Development)
Coal Bulk Terminal
AICTPL - CTIII(Existing)
ProposedLNG
Terminal
Air Strip
MPT III (Existing)
Intra SEZRail & Road
CTI & II (Existing)
East Basin(Heavy Engineering Units)
North Basin
Pipelines towards SPMs
64 kms RailwayTowards Gandhidham
NH 8A –Port connectivity
MPTs I (Existing)
MPT II (Existing)
South Basin
West Basin
Land Notified: 6472 Ha (15,995 Acres). Area Under Possession: 9495 Ha (23,643 Acres)
18
APSEZ: Abbot Point Stake Sale
19
Proposal:
• To divest its stake in entities controlling the
Abbot Point Coal Terminal in Queensland,
Australia to the Adani family
• Subject to requisite approvals, formalities
and clearances, at a valuation determined by
an independent valuer.
Outcome:
• To focus on high growth emerging economies
like India
• The debt on the Abbot Point asset and the
corporate guarantee from APSEZL to be
released.
• Significant reduction in the leverage
parameters of the consolidated as well as the
standalone entity.
Power Generation and Transmission
2020
Current
20000MW
5980MW
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Indian Power Sector: Demand continue to rise…
Current YTD deficit @ 9%+ – deficit of 12 GW
India – Installed Capacity: 211 GW (as on 31st Dec., 2012)
India - lowest per capita amongst G-20 - 779 Kwh
v/sChina – 1684 KwhUK – 6756 KwhUSA – 14240 Kwh
Share of Private sector – generation capacity: 29% now, will grow to 40%+ by 2020 (present 62 GW will grow to 126 GW in FY20)
Power in India: An OverviewInstalled Capacity in India
India – Installed Capacity Source wise
199
275 315
-
50
100
150
200
250
300
350
2012 2017 2020
Thermal, 67%Nuclear, 2%
Hydro, 19%
Renewable, 12%
21
Source: Ministry of Power, CEA
APL: Power Generation & Transmission
22
Notes: 1. Project under AEL Subsidiary
Commissioned: 1.320MW Under Implementation:1,980 MW
Under Implementation: 1,320 MW
Kawai – August 2013
Commissioned: 4,620MW
Mundra - April 2012
Tiroda – July 2013
Dehgam
Mohindergarh
Aurangabad Warora
Adani Power projects are in high growth & better managed states of India. Also these states have financially strong SEBs
40 MW Operational Solar Power Project1 in Gujarat
* In Operation – 5940 MW
SN Location Capacity (MW)
1 Mundra (Gujarat)* 4,620
2 Tiroda (Maharashtra)* 3,300
3 Kawai (Rajasthan) 1,320
Total - Implementation 9,240
Power Generation
Power Transmission
SN Connecting Locations Length(Kms)
1Mundra – Dehgam1000 MW, 400 KV
433Operational
2 Tiroda – Warora1000 MW, 400 KV DC
200 Operational
3 Mundra – Mohindergarh2500 MW, 500 KV HVDC
1,000Operational
4Tiroda – Aurangabad1
4500 MW, 765 KV SC1,290
Total 2,923
APL: Fuel Tie – Up: 9,240 MW
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ProjectMundra – 4,620 MW
(MTPA)Tiroda – 3,300 MW
(MTPA)Kawai – 1,320 MW
(MTPA)
Requirement 16.6 13.8 5.8
Domestic Linkage6.4
FSA Signed (MCL)
8.0 FSA signed for 2.3
(SECL & WCL)-
Domestic Linkage Applied For
- 7.0 7.0
Imported Coal 10.2 - -
* Exclusive of Mundra Port Handling Charges
Grade
F (MCL)
F (SECL)
E (WCL)
GCV (K Cal / Kg)
3,700 – 4000
4,000 – 4,300
4,600 – 4,900
Row Coal Price at Mine
(Rs. / Tonne) #
893
971
1,554
Freight & Other Charges(Rs. / Tonne)
947
414
316
CIF Price at Destination(Rs. / Tonne)
1,385
1,870
1,840*
# w.e.f. January 1, 2012 & June 21, 2012
990 1320
3300
5280
330
1980
1980
3960
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
2010 2011 2012 2013
Existing Capacity Capacity Added
APL: Secured Cash Flows: Long Term Off-take Arrangements
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Off-take Arrangements
Notes:GUVNL: Gujarat Urja Vikas Nigam Limited ; UHBVNL: Uttar Haryana Bijli Vitran Nigam Limited ; DHBVNL: Dakshin Haryana Bijli Vitran Nigam Limited MSEDCL: Maharashtra State Electricity Distribution Company Limited ; RRVPNL: Rajasthan Rajya Vidyut Prasaran Nigam Ltd
Commissioning Plan
M – Mundra, T – Tiroda, K – Kawai # Fuel & Transportation, escalable *CY: Calendar Year
CY*
1320
3300
5280
9240PPA(MW) Utility Date
Levelised Tariff
(Rs. / KWh)
M - 1,000 GUVNL Feb / June 10 2.89
M - 1,000 GUVNL Feb 12 2.35
M - 1,424
(712 MW each)
UHBVNL
&
DHBVNL
Aug 12 (475)
Feb 13 (949)2.94
T - 1,320 MSEDCL Aug 12 2.64
K - 1,200 RRVPNL Aug 13 3.24#
T - 1,200 + 125 MSEDCL April 14 3.28#
7,269 Total contracted capacity
83% Tied up under Long Term PPAs
APL: Domestic Coal Availability & Pass-through
25
Fuel Supply Agreement (FSA)
APL Ph IV - FSA for 6.4 MTPA of Domestic Coal has been signed, and receiving domestic coal from July-12
APML Ph I & II - FSA for 2.3 MTPA out of 8 MTPA has been signed and the rest shall be signed shortly
Price Pooling
CIL has assured 65% domestic coal & 15% imported coal with pricepooling
Price Pooling mechanism will ensure that no extra price for importedcoal till at least 80% of the coal requirement is met – Detailed Terms &Conditions yet to be finalized
Merchant Support
Surplus power generated will be sold through merchant mechanism; sohigh cost of coal should not affect our profitability for quantity beyondPPA.
Present Price is around Rs 4.5/Kwh level and already showingnorthbound trend due to restricted supply, drought like situation in thecountry and improvement in SEBs financial health
Cost Pass-through
Mechanism
As regards the tariff revision, the regulatory commission (CERC), whichhad earlier resolved the jurisdiction matter, has now initiated the processof deciding on our Force Majeure petition
Foreign Exchange movement is also being proposed to be a Pass Throughsince Indian developers have no control over it.
Legal disclaimerAEL assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events, or otherwise. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without notice and past performance is not indicative of future results. AEL may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of AEL. This presentation is strictly confidential.This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of its should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration therefrom.This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.This presentation contains translations of certain Rupees amounts into U.S. dollar amounts at specified rates solely for the convenience of the reader.
Certain statements made in this presentation may not be based on historical information or facts and may be “forward-looking statements,” including those relating to general business plans and strategy of Adani Enterprises Limited (“AEL”) and Adani Ports and Special Economic Zone Limited (“APSEZ”) & Adani Power Limited (“APL”), their future outlook and growth prospects, and future developments in their businesses and their competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, etc., or similar expressions or variations of such expressions. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in their business, their competitive environment, their ability to implement their strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India. This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer, or a solicitation of any offer, to purchase or sell, any shares and should not be considered as a recommendation that any investor should subscribe for or purchase any of AEL’s shares. Neither this presentation nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the shares shall be deemed to constitute an offer of or an invitation by or on behalf of AEL. AEL, as such, makes no representation or warranty, express or implied, as to, and does not accept any responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or opinions contained herein. The information contained in this presentation, unless otherwise specified is only current as of the date of this presentation.
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