Topic of Content

Executive Summary 2

Digital India 4

What does Digital mean to The Adani Group? 5

Adani’s Data Center Business 6

Market Observations 7

The Opportunity: Adani Industrial Operations Cloud 8

Microservices - Enabler for Monetization 12

Cyber Security - Data explosion and contextualization 14

Command & Control Center as a Service 15

Cloud Partnerships Models 16

Business Opportunity - Think Managed Services 17

Business Partnership - What’s in it for me? 19

Phased Approach 20

Annexure 21

Example of Adani Services 22

1
Executive Summary

The new reality of our lives is the constant generation and consumption of data both
personally and professionally. According to a study by the WEF, by 2020 there will be 40
times more data bytes than there are stars in the observable universe. With greater global
internet penetration both in the consumer and business areas coupled with the rapid pace of
device connectivity and especially with new technologies like 5G, Quantum Computing we
are still only scratching the surface of the “big data” era.

While there is a noticeable data explosion in the consumer space with mobile connectivity
and content being delivered at a rapid pace, there is no inclusion/mention of the Operations
Data that today the businesses generate. This data will need to be stored, managed and
securely accessed at a much greater fidelity and scale.

Why is Operational Data relevant today and Why now?

A few years back this was just not possible at a scale and maturity because the connectivity
infrastructure was fragmented, the cloud infrastructure was not matured (mostly public
cloud) and the open-source technologies did not have the required abstraction for rapid
development and deployment. Today this has all become possible of having the operations
processes being controlled from a distance enabled by the emergence of big data, machine
learning algorithms that make it possible to crunch immense amounts of information
altogether while making sense of the critical operational relationships. With breakthroughs
now happening with quantum computing, this is only going to get more and more frequent
and mainstream.

It is just not possible to have this sort of computing power at individual sites leading to
hybrid cloud deployments aka ‘The Edge’. You will have mini/micro edge data centers
coupled with large core data centers to orchestrate the decision making of your organization
business processes where you will be making federated decisions on how to optimize
operations? how to optimize sales? how to optimize customer service? all of this will become
more and more important because of the sheer cost of computing which will keep on
dropping both at the edge and the center, but at the same time this hybrid computing
infrastructure, it will have to be managed centrally which really is what the data center
business is all about. Just like what we see in the Renewables space where prices per KW
are dropping due to increased innovation happening at the engineering side to serve that
KWs. The cost to serve is coming down drastically. That is what silicon did to the computer.

Selling data center capacity only as data center capacity is becoming a commodity.
Governments today are giving the data center business an ‘infrastructure status’. How will
you be able to defend margins and investments in an industry which will see consolidation
and price wars at levels not seen due to the cost to serve coming down?

Included in the service is a physical product today. Hardware is becoming a commodity and
a necessary give away to maintain customer stickiness where Value Added Services are
getting bundled with every customer transaction. Businesses today are bundling and selling
value-added services on the top of their core offerings to protect & maintain their core.

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Building an Industrial Operations Cloud on top of the Data Center Business and providing
value-added service with the domain knowledge is the key to protecting & sustaining the
core. India is very important in this equation because of the engineering talent that is
available with deep domain expertise the Adani Group has in being able to run & operate its
own assets (running power plants, running solar plants, running transmission lines) at the
right price points with the right deployment of technology.

The above talent augmented by software talent and further augmented by statisticians
/mathematical talent which are all available in India coupled with the Adani group domain
expertise can build a holistic vision for its own technology platform. The best way to
actually continue to improve it is to be able to sell that expertise to others. Doing so the
Adani Group gets trained by the information that the others give which strengthens its own
core.

This is exactly how the Amazon, Microsoft and Google and other hyperscalers continue to
get better and better on their offering of the cloud services which they bring to market to
their customer base.

So, in essence, the Industrial Operations Cloud is really the equivalent of the hyperscalers
but for Industrial Operational Services that an Adani Group will do at a mega scale.

The more and more the adoption through this ‘ecosystem model’ the more and more pull
through revenue happens for partners involved. For the Adani Group, the multiples here get
much higher and higher as we sell more value-added services on top of our core business.

3
Digital India

With more than half a billion internet subscribers, India is one of the largest and
fastest-growing markets for digital consumers (Individuals, Corporations, Government).
India’s lower-income states are bridging the digital divide and the country has the potential
to be a truly connected nation by 2025. Much more growth is possible. As India’s digital
transformation unfolds, it could create significant economic value for consumers,
businesses, microenterprises, farmers, governments, workers and other stakeholders.

Digital adoption by India’s businesses has so far been uneven, but new digital business
models could proliferate across most sectors. India’s businesses have a relatively uneven
pattern of digitization. For India to reap the full benefits of digitization - and minimize the
pain of transitioning to a digital economy - businesses, government, and citizens will have
to play important and distinct roles. They will all need to work together.

India’s new right to privacy compels lawmakers to enact a

data protection bill. India policymakers are obligated to
enact clear regulations to data privacy, establishing who
owns data, who can use it and under what conditions, and
avenues for recourse in case of violations, among other
issues.

Business leaders will need to assess what digital means to

their company and their industry, set priorities and how
their firms will adapt and talk with suppliers and customers
about what the changes mean to them. Government
officials will need to execute on the Digital India initiative,
investing in digital infrastructure, digitizing government
operations, creating public data sources, rationalizing
regulations, and managing the retraining of workers
displaced by the digital applications. Businesses will need to
think fast and act faster if they are to succeed in India’s
digital future. As a result of the disruption caused by digital
forces value will shift. Winners and losers will emerge.
Winners will be those firms that react quickly and embrace
change.

Approach and embrace Digital Technologies not just for

digitizing internal operations but approach it on how you
could monetize the investment in Digital Technology to
pivot into a new business model for your organization in
terms of Products/Services you could offer over and above
the traditional business.

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What does Digital mean to The Adani Group?

Over the last 25 years, the Adani Group has expanded

from its initial roots in AEL through a series of ambitious
expansions into adjacent infrastructure sectors. Adani
Group is sitting on “a platform of platforms” bringing in

● World Class Capital Project Management

Capability
● Land Acquisition
● Multi-Modal Logistics and Warehousing
● Policy and Incentive Advocacy
● Industry Quality Water
● Required permitting for domestic and export use
● Uninterrupted Power - Full Stack (Generation,
Transmission, Distribution)
● Digital Industrial Cloud (A missing link in our
overall “platform of platforms” strategy)

Each of our companies has been able to effectively create significant massive barriers to
entry for both global and domestic players. The larger the platforms grow, the higher the
entry barrier and the more difficult it becomes for the competition to catch up.

Adani group has an unparalleled physical infrastructure footprint with its current businesses.
Constructing an “industrial operations platform” to protect and optimize Adani’s “physical
platform” and promote the digital offerings/platform to other players is required to maintain
leadership.

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Adani’s Data Center Business

The Data Center business is going to build out the digital infrastructure for India just like
Adani has built the physical infrastructure for India.

Why did Adani enter the Data Center sector in India?

● Adjacent to multiple Adani sectors like power, real

estate and ports with potential to create a strong
value proposition for customers
● Critical Infrastructure for India in the 21st century
● Sunrise sector with rapid growth expected early
stages of development in India with rapidly
increasing demand and insufficient capacity
● The current market is still developing, Fragmented
market with multiple players with sub-scale assets
and small footprint in the country
● Government policy rapidly evolving based on
technology changes and recognition of national
security challenges
● Data Center Capacity in India expected to tripe
during the next 5 years

Storing critical data in-country has become of National importance. As per the recent Data
Protection, Bill approved by the Cabinet in early December 2019 mentions that all Internet
companies will have to mandatorily store critical data of individuals within the country,
however, they can transfer sensitive data overseas after explicit consent of the data owner
to process it only for purpose permissible under law once the Bill is approved by Parliament.

Hyperscalers View Point

● Against Government regulations on data localization due to four reasons

○ Inefficient to their internal operations
○ Lack of in-country infrastructure to build and store domestic data
○ Perceived lack of data privacy laws
○ Sets a bad precedent in other countries

Business View

● Data demand fundamentals require local storage given a large amount of data are
being created and consumed in specific geographics
● This issue will resolve in the near future and no one else (not even hyperscalers) is
developing a Plan B - that an opportunity
● Some of the hyperscalers will see this an opportunity to capture market share

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Market Observations

To create innovative industrial offerings, one must:

● Develop offerings with sector-specific features and

capabilities
● Be able to “productize” industrial expertise and
business acumen for the most essential use case and
outcomes of the targeted sector.
● Secure annual recurring revenue by creating an
asset-based managed Application Programming
Interface (API) as a Service portfolio to sustain
margins and leadership in the market.

Ultimately, all who seek to generate revenue from industrial enterprises must address how
to participate in new tech-enabled digital business architectures. Today Business Platforms
like Asset Performance Management, IIoT are margin-challenged and are considered an
overlay platform in addition to other enterprise platforms and systems which already exits.
The overlap is quite not understood at an organization level creating a barrier for adoption.

In fact, Gartner has observed that many industrial enterprises like Adani are looking to
acquire their own IoT assets. These enterprises want to create their own “corporate OS
(operating system) and service bus” that extends from products and services, through the
supply chain, to the factory and plant floor. In this market without leaders, the hesitancy of
legacy IT and OT vendors to innovate in ways important to industrial enterprises will only
fuel this trend.

Today the traditional ISV (Independent Software Vendor) or Industrial Automation vendors
approach is focused more on building the fortifications higher on their “walled gardens”
rather than developing domain-based solutions deployable on any third-party cloud service.
Many of the ISVs/Industrial Automation vendors are increasingly pursuing relationships with
hyperscale providers to take advantage of the innovation for IaaS (Infrastructure as a
Service) and PaaS (Platform as a Service) elements upon which they can build their apps or
have partners who do that. This strategy reduces burn rates and development cycles so
resources can develop value-added features rather than foundational capabilities.

The current market suffers from a lack of innovation and differentiation among the rapidly
growing landscape of IoT solutions. Solutions developed to serve value at a very specific
industry level are key to success today.

Domain Apps and APIs focused on Industry-specific business functions are emerging as
growth engines for the future.

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The Opportunity: Adani Industrial Operations Cloud

The Adani Data Center Business is a prime candidate for the Adani Group to move up the
value chain from data centers to an end - end industrial operations cloud platform.

Quite evident from above is the Economic Value of the Apps and Platform which are built on
foundation platforms (Data Center + Cloud Technology) and the higher multiple they fetch.

Today, customers like Adani has to figure out (and will keep figuring and investing)
1) What Technology to use?
2) How to use it?
3) How to build it?
4) How will it co-exist with my current investments in tech which are already done?

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There is a growing need to become Digital-natives as new-age companies threaten industry
old-guard by delivering customized, customer-centric solutions with increased efficiency and
lower costs by adopting digital. Below are some of the megatrends driving digital.

● Quicker time to value of investments (Tightening of Credit Markets)

● Large project CAPEX weaker given low plant utilization
● Aging Workforce (Knowledge Management <-> Time to Operate). The current
workforce coming into organizations are Digital natives and are wired to behave
differently with Technology
● The flexibility of technology infrastructure usage (On-Demand, Pay Per Use)
● Enterprise Apps being delivered on Cloud with Rapid Race.
● Ability to defend returns and margins in a constraint growth environment

Being an Asset intensive business, Digitizing operations and end-user experience are crucial
for the proper functioning of the Sites, Systems, Assets, and People.

The differentiation comes when you have figured out how an enterprise gets to better
decision making and providing its users with a delightful experience. This is the essence of
competitive differentiation that you possess in your business. This is the Best Practice that
you implement with years of experience refining it enabled by advancement in Technology.

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If digitization is not approached & done properly customers end up in a “Digital Spaghetti”
of sorts. Standardization of the technology infrastructure (Physical, Technology, Business
Platforms) is KEY to getting it right. Below are some important considerations for
approaching Digital.

● Common Platforms over Point Solutions

○ Enables standardization of technology stack and supports leveraging
technology across BUs and Adani Enterprise

● Buy for standardization, Build for differentiation

○ Special focus can be given on building solutions which support and creates
differentiation and provides the competitive edge

● Test Use Cases for Digital Adoption

○ Ease of use with end user-centricity and opportunity for automation and
mobility

● Standardization and Seamless integration across datasets

○ Enables Adani to scale with standardized integration and supports quicker
onboarding of new solutions

● Enterprise data management

○ Common definition standard(s) with varying degrees of detail to enable the
sharing of data throughout the organization.

The Adani Group is required to build an Operations Platform which would be the enabler for
the Adani Industrial Operations Cloud. (On the lines of a standard SAP ERP IT platform)

Our approach to building out the Industrial Operations Cloud Platform is

● Connect to, and store data from a range of our Assets

● Deliver contextualized information to our industrial workforce
● Extend and adapt to all industrial operations we do

The building blocks required to build-out the Adani Industrial Operations Cloud are

1) Physical Platform → Real Estate, Ports, Power, Transmission, Gas Networks, DCs
2) Cloud Platform → Cloud, Network, Compute, Storage & Security Partners
3) Business Platform → Honeywell, Siemens, Schneider, ESRI
4) Apps Development Platform → Low Code Platforms like Outsystems, Mendix

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Leveraging a common Operational Architecture across the group with 2-3 global strategic
partners is needed as shown below.

The virtualization of business-critical infrastructure is transforming the production and

distribution of goods and services throughout the supply chain as industrial organizations
like the Adani Group shift focus from private to public and, ultimately, hybrid cloud
deployments that connect and integrate on-premise resources with cloud resources.

There are massive amounts of untapped plant and process log data available today when
harvested with the right analytical tools and guidance, these data streams can deliver value
greater than the sum of their parts

The Industrial Operations Cloud represents an opportunity for the Adani Group to ideate
new business models around the adjacency of the core businesses. Ex. For Adani Electricity
Mumbai Ltd “Play beyond the Meter “ would be a new business model providing integrated
home energy management solutions.

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Microservices - Enabler for Monetization

● Microservices are ​designed around business capability.​ Each microservice has to

independently ​fulfill a specific business function.​

● Microservices is an application development style that allows building an application

as a collection of small autonomous services ​developed for a business domain

For example, let’s take an example of ​Transformer

Health Analytics or any Asset. Instead of building
a complete application using the normal software
development life-cycle where we put all its
functionality in a single process we build out smaller
functionality of the application and put them in
smaller independent services ( hence the name micro)
which when ​put together in the context of any
asset​ will give us the complete solution.

5 Microservices (MS) for Transformer Health

● Data Integration MS
● Health Monitoring MS
● Diagnostic MS
● Fault Prediction MS
● Maintenance Prescriptions MS

The above 5 Microservices for the Transformer Health Analytics could be designed
independently of each other giving the freedom of re-usability for any Asset. These could
then be reused for any asset with the Adani Businesses.

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The above scenario is very basic to explain the concept behind creating a business-specific
microservice and then creating an API that could be exposed to the outside world for
monetization.

How do we make money - API (Application Programming Interface)?

The Equipment Health Analytics microservices could be monetized as shown below.

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Cyber Security - Data explosion and contextualization

Evolving National Policies on CyberSecurity will have legal implications for our business.

Being subject to regular audits in terms of preparedness for Cyber Resilience for our assets
(Tools, Policies, Procedures)

● Reporting to sector-based CERT teams for any

vulnerability detected.
● Having a fully secured and patched IT & OT
systems and a continuous governance framework
with Government nodal agencies
● Establish an institutional and Legal framework
○ For ensuring compliance of legal,
contractual and technical framework to
make the system nearly 100% secure
from cyber-attacks
○ To incorporate various mandatory provisions of compliances from
procurement to installation to operations as laid out by the Government

Today the single biggest challenge which companies face is protecting their OT systems. OT
is hardware and software that detects or causes a change through the direct monitoring
and/or control of physical assets, processes, and events in the enterprise. Exploiting
vulnerability in the OT Systems by attackers has far-reaching impacts on human life, safety,
and the brand.

Below are challenges that today are on top of mind with management with the
pervasiveness of Digital and IoT technologies in the enterprise due to the technology
landscape getting complex by the day

● How do we make sense of alerts, logs, events coming out of our IT and OT Systems
for us to clearly understand what’s critical to address and what’s not?
● How do we know how many times we have been attacked? If we have been how
have we responded in terms of time to Respond and Remediate
● How do we make sense of the different CERTS, Advisories being forwarded to us
from our IT and OT vendors and partners. Do we proactively hunt and prevent or do
we take action after the fact the breach has happened?
● Do we know why are we being attacked or hacked into from a constant source?
Threat vectors are changing all the time as attackers become smart.

What brings us to discuss is that these various types of data sources need Data Science
capability with very high computing, not just IT.

You cannot do Cyber without Data Science anymore. You require a secure high compute
environment in-country to ensure the integrity and privacy of data being used to compute
Threat Intelligence scenarios for businesses in India. This increases India’s cyber resilience
when the industry innovates for the betterment of India’s economy and livelihood.

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Command & Control Center as a Service

Being in the infrastructure business and building out CCRs for our businesses with multiple
assets spread out geographically, give us a very rounded perspective when we do projects
for scaling out our current businesses and incubating new ones.

Business Drivers of typical infrastructure businesses

● Ability to manage a large number of sites - avoid increasing manpower linearly to

capacity
○ Centralize overall management of the various sites
○ Streamline O&M processes across the portfolio of sites/plants
● Support an increasingly complex operation
○ Large variability in site size
○ Geographic range
○ Varying technologies and economies
● Improve competitiveness through operational excellence in a sector where the
margins are tightening
○ Extend the lifetime of assets
○ Reduce maintenance cost
● Cybersecurity of ‘data at rest’ and ‘data in motion’ of Operational Data.

Technology requirements for an Operations Platform to support the business objectives

● Command and Control Center: A Secured central facility where operations at all sites
can be tracked and managed
● Fully Automated operations: Minimal manual intervention is the goal. Intervention
required only for emergency situations
● Real-time data availability: Access plant performance data anywhere & anytime
● Business Intelligence: Leveraging to improve operational performance to
industry-leading levels.

The Adani Industrial Operations Cloud would be the enabler of the technology infrastructure
(Network, Hardware, Software) needed to build out a Command and Control Central
addressing the needs for industrial customers.

Fundamentally at the CCR what you are doing is a massive aggregation of Data being
generated by different things (sensors, systems, people) and bringing in contextualization
and situational awareness for people to make informed decisions. At the core, this requires
a very secure high computing environment.

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Cloud Partnerships Models

Innovative partnership models are being structured between hyper-scalers (Amazon,

Google, Microsoft) and traditional Industrial Customers.

Partnership Details

Volkswagen and AWS to develop Industrial Cloud. It will

combine data of all machines, plants, and systems from all
the facilities of the Volkswagen Group. Integration of the
global Volkswagen supply chain in Industrial Cloud in the
long-term - more than 30,000 locations of over 1500
suppliers and partners throughout the world. Open Industry
Platform: The possibility to be used by other partners in the
future. 220 + people are to work on the project.

BP will supply AWS with 170 MW of renewable energy-the

equivalent of powering 125,000 homes each year to power
AWS DCs. BP will be moving around 900 key applications
over to AWS. AWS will help BP to transform their operations
and together use the cloud and renewable energy resources
to drive energy efficiencies. BP will be using AWS to
accelerate its digital journey.

Novartis and AWS announced a multiyear strategic

partnership with an aim to put real-time analytics in the
hands of associates, empowering them to make better
business decisions and increase efficiencies across
manufacturing processes and supply chain. This partnership
will be leveraged across the core supply chain,
manufacturing and delivery operations of Novartis which
include 60 mfg sites in the distribution in 155 countries.

The hybrid (Solar + Wind) deal will see Microsoft purchase a

total of 230 MW from Engie. Engie will accelerate the
development and deployment of Darwin, an energy software
developed by ENGIE using MS Azure to optimize the
performance of ENGIE’s wind, solar assets worldwide.

Chevron has selected Azure as its preferred cloud provider in

a multi-year agreement. It will move its development of new
applications to Azure as well as gradually shift over legacy
data and applications already in operations. The two
companies will also share research and development and
embed technical staff with each other.

AB InBev chose the Google Cloud Platform for its

manufacturing. It enables AB InBev to reduce costs of
filtration, deliver the best possible beer taste through
machine learning. The acceleration and scaling required of
digital operations through the Google Cloud platform for its
breweries spanning 126 countries.

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Business Opportunity - Think Managed Services

For the Adani Group, the Data Center business is the central pivot around the building of the
Industrial Operations Cloud coupled with Domain IP. In the age of the ‘service economy,’
embedded in the service is the ‘physical product’. A services-based model example of
Bridgestone selling “usage-based pricing ($/mile) rather than selling tires to the Fleet
enabled by technology

Business Opportunities for Adani after having battled-tested it for internal consumption
addressing the core needs of the Industrial Customer

● Adani Operations Cybersecurity as a Service

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● Adani Command and Control Center as a Service

● Adani Industrial Process Analytics as a Service

18
Business Partnership - What’s in it for me?

The Adani Industrial Operational Cloud is enabled by an Ecosystem Partnership play

between the Cloud Partner, Business Platform partner and Adani. Bringing together this
ecosystem can fundamentally shift the game for all the participants.

What is in it for me?

Adani

● Business KPI improvements enabled by Digital

● Revenue
○ For the Data Center Business (co-lo)
○ From Applications & Services

Cloud Platform Partner

● Reduced cost to serve for the Indian Market selling cloud services
● Revenue from Adani’s internal consumption of cloud services
● Additional revenue of services built jointly by Adani

Business Ops Platform Partner

● Revenue for Platform, Services - based on Adani consumption for BUs

● Revenue from additional services which can be taken to market by the Business
Platform Partner and its ecosystem based on applications developed by Adani
● Reduced cost to serve for the Indian and global markets for Business Partners own
internal workloads at the Adani Data Center

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Phased Approach

20
Annexure

21
Example of Adani Services

A few examples of microservices that can be built out for various Adani Business which
share common business functionality.

Services Description

Equipment/system Health Analytics Domain-specific asset analytics library for

health monitoring, fault diagnostics, and
failure predictions eg. for turbines,
transformers.
Here different algorithms/methods to
predict health can also be offered as
individual services for e.g. Residual life,
Insulation / Oil health prediction, etc

Visual Image & Video Analytics This service is very useful across the
different business to either identify faults or
to ensure proper PPE gear for work
execution, or counting of people for crowd
management for container identification.
Used in the correct context would be very
useful.

Virtual Reality Asset Library for Training Domain-specific VR library which could be
Field Force reused and then sold on a market place

Contract Management Tapping contract-related information from

multiple unstructured data sources with
various languages to create an AI-enabled
contract management dashboard. Value
from avoiding penalties reducing people
dependency, traceability of communication

Prosumer of OEM Data (Data as Service) Keeping the OEMs honest about their
equipment performance Understanding
design and engineering constructs is very
useful in industry benchmarking with this
data

Site suitability/feasibility assessment Based on input coordinates, provide an

assessment of the suitability of a site for
construction using a bank of GIS layers
gathered from various sources.

Mine GIS files (historical) and correlate

them with SAP data to learn patterns such
as flooding, dust, soil-related issues,
construction challenges, etc.

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