||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”), bitumen and pre-cast concrete poles and (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.
||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. In September 2009 we began manufacturing pre-cast
concrete poles. In April 2010, the Government of Maharashtra issued us a letter of allotment for us develop
a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on a build, own, operate and
transfer (“BOOT”) basis.
||Our head office is in Nashik, Maharashtra and our operations currently reach across the states of
Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Karnataka and Orissa. 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.
||BOT Division. We currently operate or have an interest in 23 BOT road projects totalling approximately
3,498.35 kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa the
concessions for which were awarded on a BOT basis. The weighted average concession period (including
toll collection period) for these 23 BOT road projects was 21.09 years as at March 31, 2010. 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 23 BOT projects mentioned above, 17 are in
operation and six are under construction. 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.
||Of the four BOT projects under construction/yet to begin construction:
- four are being developed by subsidiaries of the Company;
- one is being developed by PNG Tollway Private Limited, in which the Company has a 26%
- one is being developed by Jaora Nayagoan Toll Road Company Private Limited (“Jaora Nayagoan
Toll Road Company”), in which the Company has a 13.76% beneficial interest.
||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.
||In April 2010, the Government of Maharashtra issued us a letter of allotment for us to build, own and
operate a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on approximatley 5,000
sq. metres of land currently owned by the Government of Maharashtra. We are required to transfer
ownership of the power plant to the Government of Maharashtra 30 years from the date of the signing of
the formal agreement for the project, which has yet to be executed. We intend to bid for more power plant
projects to be developed on a BOOT basis.
EPC Division. 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 May 31, 2010, 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 May 31, 2010, the Company’s Order Book, which comprises the unfinished and
uncertified portion of projects that we have been awarded, was Rs. 16,153.64 million. The Company’s
Order Book as at May 31, 2010 does not include the construction of the NH-6 Sambalpur-Baragarh road in
Orissa for a fixed fee of Rs. 10,080.00 million and the construction of the NH-4 Belgaum-Dharwad road in
Karnataka for a fixed fee of Rs. 6,300.00 million. The Company received the work orders for these projects
in June 2010 from Ashoka Belgaum Dharwad Tollway Private Limited and Ashoka Sambalpur Baragarh
Tollway Private Limited, respectively, entities in which the Company has a 98.67% beneficial interest.
These BOT projects were awarded to us in May 2010 and the concession agreements were signed in June
We received an ISO 9002 in 1998, an ISO 9001:2000 in 2001 for Certificate for Quality Assurance, an ISO
14001:2004 in 2005 for our environmental management system and QHSAS18001:2007 in 2007 for safety.
In February 2010 we received an ISO 14064 for having our greenhouse gas emissions independently
monitored and reviewed on a regular basis. 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’.
In March 2010, we were awarded a CIDC Vishwakarma Award 2010 in the category of ‘Best
Professionally Managed Company’ with an annual turnover more than Rs. 5,000 million.
RMC and Bitumen Division. 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 14 RMC plants with a total production capacity of 650 cubic metres per hour and 86
concrete transit trucks and 19 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.
Toll Collection Contract Division. 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.
As at March 31, 2010, our work force consisted of 2,412 full-time employees, including 1,153 technical