The Indian economy is set into climb to a higher growth orbit on account of the government''''s far-reaching policy actions including demonetization, which delocalized almost 85% of the currency in the system in November 2016, and the implementation of the Goods and Services Act (GST) that will have a far-reaching impact on the economy through a unified tax regime. These structural resets are expected to strengthen India''''s economic growth by at least 100-150 bps over the next 2-3 years.
Adani Enterprises was established with the singular objective to cater to the needs of sectors whose growth would directly fuel the development of the nation. The basket of businesses that are held by Adani Enterprises include coal trading and mining, renewable energy, agri-storage infrastructure and services, edible oil and city gas distribution.
Anchored by a strong vision for the future, each of these businesses has been created on a strong foundation that will consequently facilitate rapid scale-up. This will be especially important to cater to the growing needs of a nation poised to retain its position as the fastest growing in the world.
Though coal is considered to have a negative impact, especially among environmental groups, the case for the resource is unquestioned in reaching power to the darkest corners of the country. The government is embarking on sweeping reforms that include distribution utility re-energization through UDAY and giving an impetus to infrastructure creation that will lead to a sustainable growth in then demand for power. The Government accomplished milestones to encourage the coal and the coal mining sector while balancing it with charges that subsidies other greener sources of power generation as India begins to moderate its carbon footprint.
Over the past few years, we have created a robust coal trading and coal mining business with integrated ''''pit-to-port-to-customer capabilities''''. Our coal trading arm and our coal mine development and operations (MDO) businesses are the largest in the Indian private sector. In a significant achievement in 2016-17, we successfully conducted a public hearing, facilitated the expansion of our Parsa-Kente basin in Chhattisgarh following strong community support. This validates our commitment to local development and spreading prosperity beyond our factory gates. We also completed the groundwork for the potential 30-year award of Mahagenco''''s GP II block that will add reserves of 24 MT coal.
Over the past year, solar power has gained significant traction with the result that power purchase costs through solar are lower than conventional energy costs. The Government''''s ambitious thrust on solar is visible in its Jawaharlal Nehru National Solar Mission (JNNSM) that was launched in 2009 and targets grid-connected solar projects at 100,000 MW by 2022, the country progressively generating 40% power from renewable energy by 2030, as per the Paris Accord.
I am proud to mention that Adani Power is India''''s largest renewable energy IPP with a consolidated
renewable portfolio exceeding 2.2 GW and with targets of achieving 10 GW by 2021. During 2016-17, we took this vision ahead by commissioning the world''''s largest solar plant with a capacity of 648 MW in Tamil Nadu in a record eight months, we also commissioned India''''s largest single location single-axis tracker solar plant of 100 MW capacity in Punjab.
In our agri-business, we are proud to have established India''''s first integrated bulk handling, storage and logistics system for food grain. Aimed at minimizing post-harvest losses and improving operational efficiencies, we provide a seamless end-to-end bulk supply chain to Food Corporation of India. With state-of-the-art silos and rail terminals in major cities, Adani is changing the future of food security in India. The rail infrastructure and bulk loading facility developed for this project has set world-class standards for the country. Besides maintaining nutritional quality of food grain and reducing losses, Adani silo terminals have benefitted farmers, the government and end consumers across the public distribution system value chain. The overwhelming success of this model has led the Government to accept it as a future mode of storage and transportation of food grain. Apart from serving Food Corporation of India, our agri business is also committed to modernize storage infrastructure in the States by creating silo terminals. The Company has set up state-of-the-art silo terminals in various parts of Madhya Pradesh, benefitting numerous farmers and generating savings for the Government of Madhya Pradesh. Farmers are linked directly to these terminals where they deliver their crop. While extending this model to other parts of the country, we established a wholly-owned subsidiary, Adani Agri Logistics (Panipat) Limited, to develop, operate and maintain silos for the storage of wheat in Panipat, Punjab, the wheat bowl of the country, on a DBFOO (design-build-finance-own-operate) basis under the public-private partnership (PPP) mode.
We also pioneered the storage of apples under controlled atmospheric conditions and helped structurally alter the apple farming sector in Himachal Pradesh.
Our edible oil business, under Adani Wilmar remains the largest contributor to our agri business vertical; we continue to be the market leader in this sector. In a business where distribution is the key to reach out to as many customers as possible, the Company possesses the largest distribution network amongst all branded edible oil players in India touching more than one million outlets pan-India. Based on a preference for branded products in matters of health, rising disposable incomes and growing per capita edible oil consumption, the country''''s edible oil industry outlook appears bright. Adani Wilmar, which entered the edible oil business in 1999-2000, is the largest edible oil company in the country with a share of 19.5%. We are looking at replicating this success in other branded food items such as rice and dal, which are bigger categories. This growth plan will be met by the expansion of some of the existing units based on their vocational advantages, particularly those close to the ports, expanding some contract units and entering into new arrangements at new locations. In the South, which accounts for about 33% of the total branded market, Adani Wilmar is aiming at a bigger market share by teaming up with some local mills. Importantly, the country''''s edible oil market size is worth Rs. 100,000 crore and of this, 55% is accounted by the branded market. By diversifying and adding other branded food items, the Company is primed to witness a big jump in its revenues over the next few years.
Our city gas distribution business continues to expand, aided by softening crude oil prices. The Company''''s existing network of pipelines (in excess of 5,000 kms) provides piped natural gas to residential, commercial, industrial customers and compressed natural gas to the transport sector in Ahmadabad, Vadodara, Faridabad and Khurja. With the Petroleum and Natural Gas Regulatory Board expected to augment the city gas distribution network to cover 240 cities by 2022 from the current 44 geographical areas, we are creating the necessary infrastructure by building a network of pipelines across seven cities in a joint venture with Indian Oil Corporation. We are also drawing up plans to bid for another 10 cities with the objective to improve profitability and market share.
At our Company, social responsibility takes centre-stage. Adani Foundation''''s core programs of education, healthcare and livelihood touch a number of lives every day, even as we build strong community goodwill and support. We feel privileged to have been change agents in India''''s grassroots development.
Going into the future, we are excited at the unfolding opportunities within our range of nationally-important businesses. We are optimistic of business sustainability and invite you to be a part of our journey.
With my best wishes,