Introduction

This report is all about providing insights into the business case analysis of Adani business in Australia. As currently, company is gaining higher profits, it becomes important to analyse different factors and conditions due to which company is getting such kind of attention in the market. To successfully analyse the Adani business case in Australia, this essay report is defined in different sections such as the business structure of Adani Australia, environmental factors, risks that are associated, business practices, functional departments of the company, etc. All these factors defined in the project provides an ability to successfully analyse the business case of Adani Australia.

Case Company Synopsis

Adani Group is an Indian multination company that has been providing its services across the globe. It headquartered in Ahmedabad, Gujrat. It was founded in 1988, by Gautam Adanit as a commodity trading business with a flagship company named Adani Enterprises Limited. Adani Australia can be defined as a company that provides energy and infrastructure services and solutions while providing help to Australia and the world to become more advanced (Buckley & Nicholas, 2017). Recently, the interest of the company has increased with the proposal of coal mine in Queensland. The profit shifting of the company has been tied with the labyrinth of financial structures and ownership based on different countries. Even though, the company has effectively drawn its scrutiny in different developed countries including Australia.

Business Structure and Government Structure of Adani Australia

For any organization and company deciding business, structure is one of the main factors that are required to be considered effectively. The business needs to choose a proper business structure from the different available structure as it has the ability to influence business performance as well as the decision making processes. In this order, Adani Australia has chosen Company Business Structure which is considered as one of the most efficient business structures. As per this structure, Adani has been handling different business operations in different departments such as coal mining, edible oil, food, infrastructure, Agri logistics, defence, etc. in an effective manner.

Moreover, along with the business structure, government structure is considered as one of the main factors that can influence the business processes. Government rules, laws, standards, etc. are required to be followed by the company and on these factors, companies are required to be regulated in an effective manner. The government rules and regulations have a direct impact on the performance of organizations. In this order, Adani Australia has adopted a partnership government structure in which the Australian government is involved in each of the decisions that are made by the organization. As per the government rules and regulations, each department of the company is defined by Adani Australia.

Environmental Factors

Currently, Adani is planning for Carmichael coalmine matters to Australia and different other countries. They have to make proposals for one of the largest mines in Queensland. Along with the benefits, there have been several factors that threaten the environment as well as the quality life of human beings. Currently, the whole world is moving towards reducing the carbon emissions, but this proposal that brought this effort onto the stake. In a report, Adani has said, in the 60 years of the time period they would be able to extract almost 2.3bn tonnes of coal that will bring the country at the same level where the US is. It has proposed that the company will have six open-cut pits along with five underground mines that will cover more than 30km (Currell, Werner, McGrath, Webb & Berkman, 2017). But building more mine would lead to the requirement of more areas that can affect the quality life of the assignment. In Australia, most of the people are opposed to this proposal of Adani as its proposal can affect the way of living of Australian. There is several environmental factors that get affected by the start of this project. Some of those factors are discussed below:

Climate: It has been found in the analysis that if the coal mines are extracted as per the plans proposed by Adani then there will be an average of 77m tonnes of CO2 will be burnt out each year. It can further increase with if the extraction of coal mines are at the peak. At that time, CO2 emission will be about 120m tonnes a year which is considered as a pretty much high number (Grech, Pressey & Day, 2015). Therefore, it has been found that the climate of the country will get impacted with the advancement into the technology. In this order, if the world wants to reduce the carbon emission by 50%, then 88% of the world’s coals are required to be reserved effectively. With this approach only, the world will be able to meet with its objective to reduce carbon emission.

Water: Carmichael mine is mainly concerned with one of the most important environmental factor i.e. water. Aside from the climate changes, water has been an important source of human beings and other living creature. They are more likely to rely on water. In Australia, water is one of the main reliance of human beings while comparing to most of the other countries. Coalmining processes consist of a large volume of water in various processes such as cooling, cutting equipment in the ground through transporting coal as a slurry in pipelines (Maddhi Reddy & Rosencranz, 2018). It is estimated that around 250 litres of water will be used for the production of each tone of coal.

Risks and its impact on decision making and performance

Adani recently has proposed a coal mine project in Queensland which has both the positive as well as a negative impact. There has been a number of risks that are associated with Adani’s proposal and its business performance, which is more likely to have an impact on decision making processes and performance. Some of the risks and their influence on the performance and decision making processes of the company is defined below:

Company’s Reputation: Reputation of the company is one of the significant factors that reflects its overall performance and move towards the well-being of the public. Additionally, it would help the organization to gain the trust of the people who can provide support in any circumstance (Lyons, Brigg & Quiggin, 2017). However, in several environmental reports the reputation of Adani is not up to the mark. The report has detailed all the allegations of the damage that are made by the company in the environmental factors. There, this can be considered as one of the main risks from which the company is required to be aware. This risk can influence the decisions of the company, where the company should decide while considering these factors.

Environmental Factors: With the new proposal of the company, it has been a well-known fact environment will get affected and the lives of living things can be harmed. Therefore, environmental factors are the second risk that can influence the process of decision making as well as the performance of the company (Environmental, 2017).

Government Declination: Government declination onto the project can also be considered as one of the most significant risks that can influence the performance of the company (Maddhi Reddy & Rosencranz, 2018). As with the proposed coal mining proposal of Adani, it is clear that it will not be good from the perspective of the environment. Due to this reason, there might be possibilities that the government may decline the proposal of Adani.

Business Practices

Some of the sustainable business practices adopted by Adani Australia is given below:

Health and safety practices over the workplace are considered as one of the main practices that are followed by the organization. While the company has effectively been following the standards related to health and safety procedures (Grech, Pressey & Day, 2015).
To ensure the health and safety of the employees, Adani has effective conducted various programs like community partnership programs and different others.
The organization has established a social impact management services with the help of which some of the major areas of the organization are being handled.

Functional Departments of the Company

The Adani group of companies Australia has effective defined its functional departments. Current functional departments of Adani Australia are defined is mainly four departments named as an operational department, finance department, marketing department, human resource department (Lyons, Brigg & Quiggin, 2017). Where operational department mainly deals with the under operations such as rail, renewable sector, mining, etc. Finance department defined with the management of account and cash flows into the organization. Moreover, the marketing department ensures that the company has been gaining support from different marketing platforms such as web presence and social media. While human resource department ensures the retainment and recruitments of employees into the company (Woronov, 2017).

Conclusion

Thus, it can be concluded that the business of Adani Australia can be in profit once its coal mining proposal gets approved. However, it has been analysed that there has been a number of negatives too that can affect the well-being of humans. As its new business proposal, the number of environmental factors such as climate, water, ground, etc. will be affected. Therefore, there is several risks that are associated with the company such as government declination, environmental factors, as well as the company’s reputation. Moreover, business practices and current functional departments of the organization has been described in this report.

References

Buckley, T., & Nicholas, S. (2017). Adani: Remote Prospects. Institute For Energy Economics And Financial Analysis. Retrieved from http://www.indiaenvironmentportal.org.in/files/file/Adani-Remote-Prospects-Carmichael-Status-Update-2017.pdf

Currell, M., Werner, A., McGrath, C., Webb, J., & Berkman, M. (2017). Problems with the application of hydrogeological science to the regulation of Australian mining projects: Carmichael Mine and Doongmabulla Springs. Journal Of Hydrology, 548, 674-682. doi: 10.1016/j.jhydrol.2017.03.031

Grech, A., Pressey, R., & Day, J. (2015). Coal, Cumulative Impacts, and the Great Barrier Reef. Conservation Letters, 9(3), 200-207. doi: 10.1111/conl.12208

Lyons, K., Brigg, M., & Quiggin, J. (2017). Unfinished Business: Adani, the State, and the Indigenous Rights struggle of the Wangan and Jagalingou Traditional Owners Council. doi: DOI: 10.13140/RG.2.2.14869.12005

Maddhi Reddy, P., & Rosencranz, A. (2018). Challenging the Proposed Carmichael Mine Before the UN. Environmental Policy And Law, 48(1), 31-36. doi: 10.3233/epl-180047

Environmental. (2017). The Adani Brief What governments and financiers need to know about the Adani Group’s record overseas. Environmental Justice Australia. Retrieved from https://envirojustice.org.au/sites/default/files/files/Submissions%20and%20reports/The_Adani_Brief_by_Environmental_Justice_Australia.pdf

Woronov, T. (2017). Waging Lawfare: Law, Environment and Depoliticization in Neoliberal Australia. Capitalism Nature Socialism, 1-19. doi: 10.1080/10455752.2017.1385639

analysis of Adani business in Australia

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