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Overview |
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 We build and operate roads and bridges in India on a build, operate and transfer ("BOT") basis. We believe we currently operate one of the highest number of toll-based BOT projects in India. In addition, to BOT projects, we also (1) engineer and design, procure the raw materials and equipment for and construct roads, bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and institutional buildings, for third parties as well as perform maintenance for third parties, (2) manufacture and sell ready-mix concrete ("RMC") and bitumen, (3) collect tolls on roads and bridges owned and constructed by third parties.
Our business is organised into four divisions:
- the BOT divisions;
- the engineering, procurement and construction ("EPC") division;
- the RMC and bitumen division; and
- the toll collection contract division.
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We can trace our origins back to 1976. Prior to fiscal 1997, we were engaged solely in the engineering and construction of residential, commercial, industrial and institutional buildings. In fiscal 1997, having acquired EPC skills, we also turned our attention to bidding for contracts for toll roads and toll bridges on a BOT basis. We were awarded our first BOT project, the Dhule bypass in Maharashtra, in fiscal 1997 and completed the construction of the road in the same fiscal year. In fiscal 2000 we began manufacturing RMC solely for use by our EPC division. In fiscal 2002 we began to manufacture RMC to sell to third parties as well as for use by our EPC division. In fiscal 2005 we began processing bitumen to a higher grade at our facility in Pune for use in road projects. Having developed systems and procedures for collecting tolls on our BOT projects, including developing our own proprietary computerised toll revenue auditing system, we tendered for and were awarded our first contract to collect the tolls on a road owned and constructed by a third party. In fiscal 2009, we began undertaking EPC work in the power sector when we were awarded a contract by Maharashtra State Electricity Distribution Company Limited for, among other things, the construction and commissioning of sub-transmission lines, distribution lines, power transformers and new sub-stations. In September 2008, we entered into agreements for constructing and developing two shopping malls on a BOT basis. |
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Our head office is in Nashik, Maharashtra and our operations currently reach across the states of Maharashtra, Madhya Pradesh, Chhattisgarh and Rajasthan. In the past, we have also undertaken work in Gujarat, Goa and Tamil Nadu, Uttaranchal, the National Capital Territory of Delhi and the union territories of Dadra and Nagar Haveli and Daman and Diu. |
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BOT Division. We currently operate or have an interest in 21 BOT road projects totaling approximately 2,523 kilometers of lanes in Maharashtra, Madhya Pradesh and Chhattisgarh, the concessions for which were awarded on a BOT basis. In order to meet specific eligibility requirements for certain larger BOT projects, including requirements relating to particular types of experience and financial resources, we have entered into project-specific joint ventures or special purpose vehicles with other companies. Out of the 21 BOT projects mentioned above, 17 are in operation and three are under construction and we have yet to be begin construction of one. Of the 17 BOT projects in operation:
- four are operated by the Company;
- 11 are operated by the subsidiaries of the Company/joint ventures controlled by the Company;
- one is operated by an associate company in which the Company has a 50% interest; and
- one is operated by a joint venture in which the Company has a 5% interest.
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Of the four BOT projects under construction/yet to begin construction:
- two are being developed by subsidiaries of the Company;
- one is being developed through an associate of the Company; and
- one is being developed by a company in which the Company has an 14.47% beneficial interest.
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In addition, we have built, operated and successfully transferred three BOT projects at the end of the concession periods, thereby experiencing the complete life cycle of a BOT project. |
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EPC Division |
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Our EPC division primarily engineers and designs, procures the raw material and equipment for and constructs roads and bridges for our BOT division and third parties. Our EPC division also (a) maintains and repairs existing roads for our BOT division, (b) constructs and modernises power distribution networks, comprising distribution transformers and electricity substations, for third parties and (c) constructs commercial, industrial and institutional buildings for third parties. We own a large fleet of construction equipment. As at June 30, 2009, the Company, its subsidiaries and its predecessor entities had constructed 44 roads and bridges and built over 5.4 million square feet of commercial, industrial and institutional projects. As at June 30, 2009, our Order Book, which comprises the unfinished and uncertified portion of projects that we have been awarded, was Rs. 17,849.99.00 million. Our Order Book as at June 30, 2009 does not include the value of the EPC contract for the construction of part of the 452 lane kms Maharashtra Pimpalgaon-Nashik-Gonde section of NH-3, the concession for which was awarded to L&T PNG Tollway Private Limited pursuant to an agreement dated July 8, 2009. The Company has a 26% interest in L&T PNG Tollway Private Limited. In August 2009, the Company received a letter of intent from L&T PNG Tollway Private Limited for appointing the Company to provide the EPC services for the construction of the road, except for an elevated corridor, for a total of Rs. 5,805.40 million. |
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We received an ISO 9002 in 1998 and an ISO 9001:2000 in 2001 for Certificate for Quality Assurance, an ISO 14001:2004 in 2005 for environmental and QHSAS18001:2007 in 2007 for safety. According to ISC, we are the first Indian infrastructure construction company to receive the ISC certification for Quality (ISO 9001:2000), Environment (ISO 14001:2004) and Occupational Health and Safety Management System (OHSAS 18001:1999) upgraded to (OHSAS 18001:2007) for Integrated System Management in relation to the design, development, construction of roads, bridges, industrial buildings, residential and commercial complexes, production and sale of ready-mix concrete, operation and maintenance of road infrastructure projects, and power transmission and distribution projects. We have also received numerous construction awards, including the Nasik Industries and Manufacturers' Association 'Excellence Award 2001' - First Prize in 'Large Scale Industries' and the Indian Institute of Bridge Engineers 'Most Outstanding Bridge - National Award 2001'. |
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RMC and Bitumen Division |
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Our RMC and bitumen division sells ready-mix concrete and bitumen and supports the EPC division by ensuring that it has an adequate and timely supply of high-quality RMC and bitumen. We have 13 RMC plants with a total production capacity of 590 cubic meters per hour and 71 concrete transit trucks and 18 concrete pumps. This division also sells and processes bitumen to a higher grade for use in road projects and supports our EPC division by supplying it with bitumen. We have one plant in Pune for the processing of bitumen with a capacity of 60 metric tonnes per day. |
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Toll Collection Contract Division |
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We set up our toll collection contract division to leverage our experience of collecting tolls on our BOT projects and our proprietary computerised toll revenue auditing system. To date, we have entered into four agreements to collect tolls on roads/bridges owned and constructed by third parties, although our last contract expired in February 2007. |
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In order to capitalize on our EPC commercial building experience, we entered into two agreements in September 2008 to develop two shopping malls in Kalyan, Maharashtra on a BOT basis. The construction of these projects has not yet begun. These two malls will have an estimated total leasable area of 12,453 sq. meters. These two shopping malls will be the first commercial buildings we will have built to lease out to third parties. We do not currently plan to undertake any further development of commercial property. |
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