Gautam Adani-led Adani Enterprises, the flagship company of Adani Group, has been in the limelight after the Lokyukta report indicted the Reddy brothers in the illegal mining scam.
Following a report in the Economic Times today, which stated that mining giant Adani Enterprises has also been accused of paying bribe and permitting illegal iron ore exports through Belekere port in Karnataka, the company stock has fallen over 25 percent. As per the report, the Lokayukta, led by Santosh Hegde, has recommended that the company be barred from bidding for any government contracts. If the recommendation is accepted, the company will suffer tremendously as it is dependent on government operations.
Adani Enterprises is he largest importer and supplier of coal in India and enjoys mining rights in Indonesia and Australia
Ironically, the day the report on illegal mining was submitted to the Karnataka government, Adani Enterprises was awarded the “Business Superbrand 2010″ status. The award essentially acknowledges the most trusted brands in India.
In the past nine months Adani Enterprises, which runs India’s biggest port and is also the largest mining importer, has made three global mining acquisitions.
In May 2011, Adani Enterprises, with revenues over Rs 26,000 crore, bought Abbot Point Coal Terminal in Australia in a deal valued at around $2 billion. However, the acquisition was funded completely out of short-term debt. In August last year it paid Rs 12,600 crore for Australia-based Linc Energy’s coal assets in a cash and royalty deal.
Last year, the company also said it would invest $6.9 billion in a coal mine at Galilee coal tenement, Dudgeon Point Port and a rail project in Queensland of Australia.
Adani Enterprises, formerly known as Adani Exports, was founded in 1988 with a capital of Rs 5 lakh.
