India is one of the world’s largest food grains producers, the second largest vegetable producer and rice producer, making it one of the world’s agricultural powerhouses. With global agricultural trade on a sustained rise coupled with robust economic growth across the world, the Agro sector has number of trade opportunities in its offing, which is an important contributor to India’s growth story. India also produces significant quantities of oil seeds, in spite of this; it is one of the leading importers of edible oil. Indian demand for edible oil is likely to remain an important source going forward giving increased avenues of investment in this sector. The total food production in India is likely to increase substantially in the coming years which will throw enormous opportunities for large scale investments in food and food warehousing, logistics management and processing.

Adani Enterprises is one of the leading trading houses in agro commodities. Adani's Agro commodities business is focused on trading in various Agro products in India and internationally, including grains, pulses, castor and soya. Adani Enterprises has emerged as a leading importer of pulses. The company is present in every aspect of trade of bulk agro commodities from importing, selling domestically to exporting and doing third country trade. The company has been the leading exporter of Castor Oil from India. The soya operations has grown in FY06, making AEL the leading exporter to Japan. AEL has a geographical presence in Europe, Japan, Korea, China, USA, Canada, Australia, South East Asia, Middle East, South Asia & almost all over India with its Agro Business.

Global agricultural trade is projected to rise given the expanding agri output in a number of countries in line with a robust economic growth across the world. Excellent export prospects, competitive pricing of agriculture products and standards that are internationally comparable has created trade opportunities in the agro industry.

Food grain exports have increased from $5.9 billion during 2001-02 to $6.4 billion during 2003-04. The Government’s special efforts to encourage food grain exports in recent years through the granting of WTO compatible subsidies has made India one of the leading exporters of food grains in the international market.

Driven by the consumption and production disparity in the agro sector, Adani Enterprises has made efforts to tap the opportunities in the said sector. The Company has been successful in grabbing an increasing market share in export and import of grains and pulses.

Adani Wilmar Limited (AWL), a Rs. 2600 crore company; is a 50:50 joint venture incorporated in January 1999 between two global corporations...

• Adani Enterprises Ltd. - the leaders in international trading & private infrastructure, and
• The US $ 6 billion Wilmar Holdings Pte. Ltd of Singapore - one of the World's largest trader and refiner of edible oils.

Wilmar Group is one of the world’s largest edible oil refiners and one of Asia’s largest oilseed crushers, with consolidated sales of US $ 6 billion in 2006. Through Wilmar International, its subsidiary listed on the Singapore Exchange, it has a sizeable operation in Indonesia, which makes it one of Asia’s largest palm oil refiners and merchandisers, as well as crushers of copra and palm kernel. In China, the Group is the largest soyabean crusher, a leading processor of oilseeds and edible oils and a leading distributor of branded edible oils. It is also a leading importer of edible oils into East and South Africa and Eastern Europe.

The Wilmar Group actively supports AWL’s operations, with 90% of AWL’s imports of crude vegetable oil being procured through the Wilmar Group. The Registered office of AWL is at Ahmedabad, with the manufacturing facilities situated at Mundra (Dist. Kutch, Gujarat).

Together Adani Group and Wilmar Group have set up India's first port based refinery in 1999, at Mundra, Gujarat. Today the Mundra refinery is one of India's largest and most sophisticated oil refineries. FORTUNE, RAAG, NATURALLE, KACHCHI GHANI and JUBILEE are the brands under which AWL sells its range of edible oil, vanaspati and bakery shortening. As per AC Nielsen ORG MARG ‘Fortune’ has emerged as the highest selling consumer pack brand in India and stood at number one with 17% market share in refined edible oil market with leader in Soya bean category – the fastest growing segment in the edible oil market.

AWL today provides the widest range of edible oils in the country under the brand name of fortune. AWL produces a basket of premium quality edible oils like:

• Fortune Refined Soyabean Oil
• Fortune Refined Sunflower Oil
• Fortune Refined Groundnut Oil
• Fortune Refined Cottonseed Oil
• Fortune Kachi Ghani Mustard Oil
• Fortune Pure Coconut Oil
• Fortune Pure Mustard Oil
• Fortune Pure Groundnut Oil

In addition to Mundra refinery, AWL also owns refineries at Bundi [Rajasthan], Haldia [West Bengal] and Mantralayam [Andhra Pradesh]. Its cumulative refining capacity is more than 3200 Tonnes Per Day (TPD).

The company also has packing operations at Chatral [Gujarat], Latur [Maharashtra], Jaipur [Rajasthan], Dharwad [Karnataka], Dewas [Madhya Prades] and Cochin [Kerala].

Since its launch in 2000, Fortune took just 20 months to become India’s No.1 edible oil brand.Following the success in India, AWL introduced branded Soyabean oil to Middle-East and is now exporting its products to more than 19 countries in the Middle-East, South East Asia & East Africa.

Today AWL has its distribution foot prints all across the country with various stock-points catering to more than 5000 distributors, 600 Super Stockists and numerous brokers and other trade associates. AWL's retail reach is more than 1 million outlets and its consumer reach is more than 80 million Indians.

AWL has also forayed into coconut oil by launching "Naturelle" brand.

Despite being the second largest producer of fresh fruits and vegetables, the country is a virtual non-entity on the world trade map in terms of the global trade volumes. Due to lack of post-harvest management facilities, absence of suitable cold stores and the lack of an organized distribution system, the wastage of fresh produce in India is as much as 25-30%.

The domestic market is characterized by oversupply in the peak season and shortage in off season, resulting in off season prices that are often 3-4 times of season prices. The lack of appropriate storage and logistic infrastructure jacks up the prices for the ultimate consumers. As a result, neither does the produce reach the consumer in the optimal condition nor does the producer get fairly remunerated.

To capitalize on this segment, Adani Enterprises through its 100% owned subsidiary ”Adani Agri Fresh Ltd” has taken the lead in developing such an integrated storage, handling and transportation infrastructure for fruits and vegetables in India. This will enable the company to provide consistent quality of branded fruits and vegetables all the year round. The company will be employing ‘Controlled Atmosphere Technology’ for increasing the shelf life of fruits. Distribution centers will be set up across India, complimented by setting up its own logistic cold chain to increase efficiency of the system.

The Company has set up Controlled Atmospheric Storage units at three locations (Rewali, Sainz, Rohru) in Himachal Pradesh with a capacity of around 18,000 MT. Each Site has been constructed with 7 Blocks of 6 Chambers totaling to 42 chambers at each location.

The strategy is to concentrate on products that are produced far from major consumption centers, are seasonal in nature and are amendable to increase in storage life using modern integrated cold chain facilities. This would enable the company to leverage on its logistics strength while at the same time take advantage of controlled atmospheric storage technology to arbitrage on the price differential between peak and off peak season.

Initially the project would be focused on apples and would then diversify into other products. The fruits and vegetables which are proposed to be preserved will be apple, banana, grapes, lime, litchi, mango, mosambi, pineapple, papaya, brinjal, bitter gourd, green chillies, peas, cabbage, cauliflower, ginger, garlic, etc.

Globally, movement of major food grains like wheat, for domestic consumption or exports, is done in an integrated fashion in bulk right from farm gate to port or consumption centre. This helps to reduce multiple handlings and associated high wastage and pilferage, which typical exists in developing countries like India.

In order to reduce storage and transit losses of foodgrains and to bring additional resources through Private Sectors participations., Govt. of India had announced a National Policy on Handling Storage and Transportation of Foodgrains in June, 2004 for Bulk and conventional godowns. Adani Agri Logistics Ltd. (100% subsidiary of AEL) was awarded the contract for setting up two such facilities one each at Moga and Kaithal in Harayana, as it emerged as the most competitive bidder for which global tenders were invited.

Adani Agri Logistics Ltd. is responsible for development and operation of bulk food grain handling, storage and transportation facilities under BOO arrangement for FCI. AEL is developing vertical silos to store grains and movement in bulk in top loading/ bottom discharge wagons. This is a national level project created first time in India.

The Project envisages following activities:

• Design, finance, construct, operate and maintain Base Depots and Field Depots
• Receive grains from FCI at the base depots, weigh them, clean them store them and transport them either by rail or road.
• Receive in bulk by rail, handle, store and preserve the grains at the field depots
• and, thereafter, load these grains in bulk/bags for transportation by rail or road
• Construct and maintain rail and road access from the depots of the circuit to the nearest rail and road networks.
• Develop, procure and own on its cost Special Bulk Food grain

According to the Economic Survey 2004-05, the growth rate in the agriculture and allied sector was 9.6 percent in 2003-04 and is estimated to grow 1.1 per cent in the current year. India’s total grain stocks grew by 7.3 per cent to 23.6 million tons as on Nov, 2004, according to the Food Ministry. India's food grain production is expected to rise to 209 million tons in the fiscal year ending in March 2006, from 205 million tons last year according to the Centre for Monitoring Indian Economy. Agreement with FCI, new technology and consistent growth in food grain production opens a huge opportunity for AEL to grow organically.

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