india leading infra

India's

Leading

Infrastructure

Companies

2008

India’s Leading

Infrastructure Companies

2008

ContentsPreface ................................................................................... I

Foreword ................................................................................ II

executive summary .............................................................. III

Methodology ........................................................................ IV

Infrastructure Insights .......................................................... V

Company Listings ...........................................................L1-L9

I

Preface Dun & Bradstreet India is pleased to present the second edition of India’s Leading Infrastructure Companies 2008. The publication is an attempt to highlight some of the key achievements and issues related to the infrastructure sector in the country and create a valuable ready reference tool on India’s leading infrastructure companies.

India’s Leading Infrastructure Companies 2008 provides information pertaining to some of the major sub segments of the country’s infrastructure sector viz. power, telecom, ports and construction.

The Indian economy has witnessed an unprecedented growth rate of over 9% from FY06 to FY08, and continues to display reasonably strong fundamentals in the current year. To continue growing, India needs to invest heavily in its infrastructure. The role of infrastructure in the economy cannot be overstated, and while the sector registered an average growth rate of 6.4% p.a. during FY03-FY08, there is still a lot that needs to be done. Providing adequate infrastructure facilities to keep up with the growing pace of economic development is now among the top most priorities of the government. For the past few years, it has been investing heavily in infrastructure.

India has the second largest road network in the world, spanning across 3.3 million kilometres, but intercity and interstate connectivity still leaves a lot to be desired. The government has invested in this area with major projects like the golden quadrilateral and four-laning of the major highways in the country. In the power sector too, the Indian government has planned additional installed capacity of 78,700 MW by the end of the eleventh Five year plan. Over the years, telecom has grown from strength to strength on the back of increasing competition in the sector and proactive policy decisions. The sector has seen total revenues increase by 22.6% in FY08. With 3G auctions around the corner, we can expect higher investments and also higher revenues in the coming months.

However, despite the strides that India has taken in the last few years, it is evident that the current levels of investments in infrastructure are not sufficient to bridge the gap between demand and supply. Historically, investments in infrastructure development have been mainly through Central and state Governments and therefore, private sector participation was negligible till a few years back. efforts are now being made to increase the participation of private sector players to plug financial and technical deficits and to ensure a faster rate of delivery of infrastructure projects. Conducive policies with a greater level of transparency are being implemented to boost private investors’ confidence. A significant increase in project execution through Public-Private-Partnerships, commonly known as the PPP model, is an indication of the interest shown by private players in building national infrastructure.

India’s Leading Infrastructure Companies 2008 showcases the performance and investment plans of some of India’s leading infrastructure companies. It also covers numerous development initiatives and proposed investments by the government in various segments of infrastructure facilities in the country over the next five years.

I hope you enjoy reading India’s Leading Infrastructure Companies 2008 and look forward to receiving your suggestions.

Dr Manoj VaishPresident & CeO - IndiaDun & Bradstreet

II

Foreword I am happy to launch the second edition of Dun & Bradstreet’s publication on the Indian infrastructure sector, ‘India’s Leading Infrastructure Companies 2008’. The publication highlights the current status and future prospects of India’s infrastructure sector. Dun & Bradstreet’s global footprint and market reach will ensure that the publication will draw the attention of global industry leaders and policy makers towards the Indian Infrastructure sector, which is poised for a quantum leap.

The rapid growth of the Indian economy has garnered interest across the globe, and India has emerged as a favourable investment destination over the last few years. In FY08, the country’s GDP is estimated to have grown by 9%, over and above the 9.6% growth in the previous year. While India’s economy is expected to continue to grow at a reasonably healthy rate in FY09, given the current global scenario, we do expect growth to slow down. However, despite the anticipated slowdown, infrastructure in India not only needs to be modernised but also requires substantial addition. A rise in infrastructural spending would ensure long-term sustainability of economic growth and will also create incremental economic opportunities.

This publication ‘India’s Leading Infrastructure Companies 2008’ highlights the performance and the future plans of the leading companies in the infrastructure sector in India. As development of the infrastructure sector takes centre stage, this publication will provide a well-researched information source on the industry.

At Dun & Bradstreet, we will continue to endeavour to meet your expectations from our publication.

David J. emery President International Partnerships & Asia - Pacific

III

executive summary Dun & Bradstreet India (D&B India) has conceptualised ‘India’s Leading Infrastructure Companies 2008’ to emphasise the impressive growth across various segments of this vital sector over the past few years. The publication is an attempt to highlight the role of infrastructure in the Indian economy and demonstrate how enhanced spending can help trigger significant economic growth.

In recognition of this fact, government investments in infrastructure projects have risen dramatically in the last few years. The government also invited the private sector to participate in the development of basic infrastructure and that has led to a rise in project execution through the PPP model. In order to capture the real essence of the industry and for in-depth analysis, the publication is divided into four key sub-segments - construction, ports, power and telecom. It profiles 210 companies of which 117 are in construction (including development of airports & seaports, real estate, construction and commissioning of industrial units, railways, seZ and social infrastructure), 71 in power, 12 in Ports and 10 in telecom services. The insights sections are divided in two segments i.e. financial and operational insights. Financial insights pertain to companies listed on the Bse and Nse, whereas operational insights are based on direct responses to our questionnaire. some of the insights based on analysis of these companies include -

Financial Insights:• Overthelast5financialyears,thetotalincomeoftheconstructionandpowersectorsgrewby35.9%and10.27%respectivelyonaCAGRbasis.

• ConstructioncompaniesrecordedanaverageannualRoNWof20.5%inthepast5financialyears,whereasthepowersectorrecordedanaverageannualRoNWof12.5%inthesameperiod.

• In thepower sector, companiespostedEBITDAgrowthof 9.2%onaCAGRbasis duringFY04-FY08.

Operational Insights:• Ouranalysis indicatesthat term loansandselffinancingare themostpreferredfinancing

options for the power and construction sectors. • The construction sector has been adversely impacted by an increase in the cost of raw

materials, delays in approval from authorities and lack of availability of skilled labour.• Overthenext5years,allthecompaniesinourstudyareplanningtoincreasetheircapacity

by installing new power plants or expanding the capacity of their existing plants. Our findings indicatethatcompanieswilladdover64,000MWoverthenext5years.

Moving ahead, we expect infrastructure to continue to be the big theme that will drive policy makers and investors to make India globally competitive. The sector will remain on a high growth trajectory on the strengths of numerous development opportunities, huge investment potential, conducive government policies and growing private participation.

D&B India is confident that ‘India’s Leading Infrastructure Companies 2008’ will provide the right international platform for profiling companies that are playing a key role in transforming the infrastructure sector. D&B India promises to track this transformation and capture the pulse of this critical industry through future editions of this publication.

Kaushal sampatChief Operating OfficerDun & Bradstreet India

IV

Methodology For the purpose of this publication ‘India’s Leading Infrastructure Companies 2008’, infrastructure has been defined to include four key segments, viz., construction, ports, power and telecom services. Construction includes construction of such facilities as ports and airports, IT parks, roads, highways and bridges, railways, industrial plants, township etc. The publication therefore focuses on those companies involved in expansion of physical infrastructure.

Due care has been taken to ensure that the publication covers infrastructure companies located across the length and breadth of the country. Based upon D&B India’s in-house database and industry association members’ lists, we identified a large universe of companies. The companies were contacted through direct mailers, reminder letters, telephone calls, faxes and emails apart from invitations to participate through advertisements in India’s leading business dailies.

Asabasicselectioncriterion,companieswithastandalonetotal incomeofRs1000mnandabove in FY08 are featured in this publication. The publication includes diversified companies with substantial presence in construction, power and telecom services, whose standalone turnover figures have been considered. Further, subsidiaries and associate companies that have satisfied the eligibility criteria have also been featured.

Companies with negative net worth and those declared financially sick by the Board for Industrial &FinancialReconstruction(BIFR)wereeliminated.Further,companiesclassifiedunderZcategoryin the Bse were excluded.

every effort was made to ensure greater participation. However, companies that have not responded with critical data, and/or their information is not available in public domain, have not been included. Further, companies that explicitly declined to participate have been excluded.

The information contained in this book is sourced and compiled from questionnaires circulated and administered by D&B India, telephonic interviews, company websites and information available in the public domain such as annual reports, draft red herring prospectuses, industry bodies andassociations,GovernmentofIndiawebsitessuchasReserveBankofIndia,Securitiesandexchange Board of India , economic survey, Central statistical Organisation, National Highways AuthorityofIndia,PlanningCommission,TelecomRegulatoryAuthorityofIndia,DepartmentofTelecommunications etc. The information has been further verified and authenticated to ensure its accuracy.

The sections titled IndustryReport and Infrastructure Insights are special analyses on theinfrastructure sector, and looks at current trends, competitive dynamics and the future outlook for the four featured segments. The Infrastructure Insights section presents analytical findings drawn from the primary information collated by D&B India.

such companies, for which updated information was not available, have been excluded from the comparative listings. A standardised format has been used for reporting the information on the companies. The editorial team would appreciate if readers would keep Dun & Bradstreet regularly updated regarding any changes in their companies, as and when it occurs.

each company featured in the publication has been allotted its unique identification number (D-U-N-s® - Data Universal Numbering system). This will help readers locate and obtain full-fledged information reports on these companies from the Dun & Bradstreet database.

We are confident that ‘India’s Leading Infrastructure Companies 2008’ will provide a platform for Indian entrepreneurs to network and to showcase their capabilities. We would be pleased to receive your valuable feedback and suggestions.

InfrastruCture

InsIghts• fInanCIaL InsIghts

ConstruCtIon Power

• oPeratIonaL InsIghts

ConstruCtIon Power

VI

financial Insightsa) Construction

Thissectionprovidesabriefoverviewofcurrentandpastfinancialperformancesof65listed

construction companies operating in the following sub segments:

1. IT parks, seZs and commercial establishments

2.Roads,highwaysandbridges,railways

3. Irrigation, sanitation, sewage and water-related projects

4. Industrial plants (fertilisers, chemicals, cement, steel etc)

5.Minerals,refinery,oilandgasplants

6. Power infrastructure

7. Townships and residential projects

8. Others, such as schools, colleges, hospitality, hotels, stadiums, amusement parks and other

civil works.

Thetotalturnoverofthese65listedcompaniesintheconstructionsectorconsideredforinsights

wasRs439.95billionasonMarch31,2008.

Profitability on an extremely high trajectory in fY08

DuringFY04toFY08,totalincomeandnetprofitofthesamplecompaniesgrewby35.9%and

80.4%,respectively,onaCAGRbasis.Contributionofotherincomesintotalincomeincreased

marginallyfrom2.72%inFY04to3.5%inFY08.InFY08,totalincomeandnetprofitgrewbya

remarkable54%and95%,respectively.

raw materials accounted for more than one third of the total expenses in fY08

TotalexpensesincreasedonaCAGRbasisof35%fromFY04toFY08.Contributionofpersonnel

cost, raw materials, depreciation, interest paid, repair and maintenance, rent, marketing and

advertisingcostincreasedfrom43.0%inFY04to51.8%inFY08.

VII

Chart-1: Components of Total expenses

ThecostofrawmaterialsincreasedonaCAGRbasisby47.3%duringFY04-FY08.Thecostof

rawmaterialsrosethemostinFY05by82%.Contributionofrawmaterialstototalexpenses

increased from 23.9% in FY04 to 34.0% in FY08. Contribution of personnel cost increased

marginally from 6.0% in FY04 to 6.34% in FY08.

Interestcostgrewby47.5%onaCAGRbasisduringFY04-FY08onaccountofrapidexpansion

in the construction sector, which was funded by both equity and borrowed funds. Thus, the

contribution of interest cost increased from 3.0% in FY04 to 4.29% in FY08.

During FY04 to FY08, marketing and advertising costs increased by more than 30% on y-o-y basis.

However, the contribution of marketing and advertising cost to total expenditure decreased from

1.7% in FY04 to 1.42% in FY08.

Loans and advances show sharp increase

Currentassetsgrewby54%onaCAGRbasisduringFY04-FY08.Receivablesandinventories

were the major contributors in working capital, however, their contribution decreased from 81.4%

in FY04 to 71.14% in FY08.

VIII

Chart-2: Component of Current Assets

Loansandadvancesincreasedby97%onaCAGRbasisduringFY04-FY08.Shareofloansand

advancesincreasedfrom5.9%inFY04to15.9%inFY08.Thenatureofconstructionbusinessis

such that companies in this sector have a tendency to operate through their subsidiaries, group

companies, or joint ventures. Hence, large amounts of money advanced to companies are in

the form of loans. Loans provided to subsidiary companies are major contributors to loans and

advances. These advances increased from 70.1% in FY04 to 97.4% in FY08. Loans provided to

subsidiarycompaniesgrewbymorethan100%onaCAGRbasisduringFY04-FY08.

Contributionofreceivablesdecreasedfrom45.6%inFY04to36.8%inFY08;however,itincreased

bymorethan40%onay-o-ybasisfromFY05toFY08.Cashandbankbalancesincreasedby

51.3%onaCAGRbasis,denotingthefinancialstrengthofthesector.

In FY08, companies’ current assets and current liabilities grew by 64.23% and 36.49%,

respectively, thereby increasing the current ratio to 2.19 times from 2.64 times. The acid test

ratio also increased from 0.63 times in FY04 to 1.21 times in FY08 on account of high cash and

bank balance.

average ronw of around 20.5% over the five year period

DuringFY04toFY08,thesamplecompanies’EBITpostedagrowthof68.22%onaCAGRbasis.

Their operating margins grew from 9.8% in FY04 to 23.09% in FY08, whereas their net profit

marginsincreasedfrom4.7%inFY04to14.4%inFY08.Thecompanies’RoCEincreasedfrom

17.36% inFY04to20.11% inFY08,correspondingly itsRoNWalso increased from16.6% in

FY04to20.87%inFY08,maintainingaveragereturnsof20.5%.

IX

B) Power

This section provides a brief overview of current and past financial performances of the listed

power companies dealing in generation, distribution, and transmission. Companies involved

exclusively in trading of power have been excluded. The total turnover of the listed companies in

thepowersectorconsideredforinsightswasRs683.5billionasonMarch31,2008.

Income and profitability grow hand-in-hand

Totalincomeinthesectorgrewby10.27%andnetprofitby11.24%onaCAGRbasisduring

FY04toFY08.Thetotalincomeincreasedapproximatelyby5.0%y-o-yfromFY04toFY06and

further increased by 16.0% y-o-y from FY06 to FY08. The other income contribution increased

from7.60%inFY04to8.57%inFY08.

fuel cost escalation leads to rising expenditure

Althoughthetotalexpendituredecreasedby2.0%inFY05ascomparedtoFY04,itincreasedon

a y-o-y basis by 14.6% from FY06 to FY08.

Contribution of raw material cost, personnel cost, interest paid, depreciation, marketing and

advertising expenses in the total expenditure increased from 71.85% in FY04 to 77.70% in

FY08.

Chart-3: Components of Total expenses

Contributionofrawmaterials intotalexpenses increasedfrom42.90%inFY04to54.04%in

FY08.CostofrawmaterialsincreasedthemostinFY07(by22%)onaccountofincreaseincost;

X

consequently,profitabilitywasaffectedduringFY07.RawmaterialcostincreasedataCAGRof

16.8% during FY04 to FY08.

LabourcostgrewataCAGRof12.35%duringFY04–FY08.Contributionoflabourcostintotal

expenditureincreasedfrom5.70%inFY04to6.20%inFY08.Interestcostgrewby33.0%and

14.8% in FY07 and FY08, respectively, on account of rapid expansion in the power sector, which

was funded by both equity and borrowed funds. However, contribution of interest cost to total

expenses decreased from 8.80% in FY04 to 7.91% in FY08.

InFY07,marketingandadvertisingcostincreasedby37.27%butinFY08itdecreasedby4.50%.

The contribution of marketing and advertising cost in total expenditure decreased from 2.69% in

FY04 to 1.72% in FY08.

Loans to subsidiaries on rise

ThecurrentassetsoftheselectedplayersgrewataCAGRof17.0%duringFY04–FY08.InFY07,

currentassetsgrewbyaremarkable35.78%.InFY08,receivables,andcashandbankbalances

contributednearly61.56%ofcurrentassets,ofwhichcashandbankbalancescontributedmore

then35%,whichreflectedthepowersector’srobustfinancialliquidity.

Chart-4: Components of current assets

In FY04, share of loans and advances in the selected power sector players’ current assets was

8.9%, which further increased to 14.87% in FY08. In the power business, companies commonly

operate through their subsidiaries or joint ventures. Loans provided to subsidiary companies

ofpowercompaniesareinfactamajorcontributortoloansandadvances;thecontributionof

theseloansinthetotalloansincreasedfrom75.67%inFY06to84.2%inFY08.

XI

Contributionofreceivablesincurrentassetsdecreasedfrom65.5%inFY04to22.7%inFY08;

however,itincreasedby32%y-o-yinFY08.Player’scashandbankbalancesgrewataCAGR

of58.3%duringFY04-FY08,whichshowsthepowersector’sfinancialstrength.

InFY05,currentliabilitiesdecreasedby5.5%.InFY07,currentassetsandliabilitiesincreasedby

35.8%and29.5%,respectively,therebyincreasingcurrentratioto3.47timesfrom3.33times.

During FY04 to FY08, however, acid test ratio increased substantially from 1.96 times to 2.71

times on account of high cash and bank balance.

Margins

During FY04-FY08, companies in the study reported eBITDA posted a growth of 9.2% on a

CAGRbasis.Operatingmarginsincreasedfrom28.46%inFY04to30.13%inFY08,whereas

net profit margins posted an average return of 18% during this period.

Thepowersector’sRoCEdecreasedfrom13.3%inFY04to12.68%inFY08;however,thesector

maintainedanaveragereturnofapproximately12.35%.Correspondingly,itsreturnonnetworth

(RoNW) decreased from 13.05% in FY04 to 12.7% in FY08,maintaining average returns of

morethan12.50%. Itcanbe inferredfromananalysisofthesector’sRoCEandRoNWthat

companies in this sector are optimally geared by an equitable mix of debt and equity and are

able to generate constant return over the period.

XII

operational Insightsa) Construction

Of the total 117 companies profiled in the construction segment, Dun & Bradstreet has considered

asamplesizeof65companies.

Key Characteristics

1.Around31%ofthecompanieswereestablishedbetween1990sand2000,while65%were

relatively older (their operations started prior to 1990).

2. Around 76.92% of companies have IsO 9001: 2000 quality certification.

3. Maximum representation is from the Western region, followed by the southern and Northern

regions.

4. Approximately 77% of companies in the construction sector were found to be public limited

companies.

segment-wise Distribution:

Constructioncompaniesundertakeconstructionofrealestateandinfrastructureprojects.Real

estate involves construction of buildings, townships, commercial spaces, malls, and retail outlets.

Infrastructure projects include construction of turnkey projects of national importance such as

roads, bridges, highways, railways, airports, dams, among others. Most of the companies deals

in the construction of residential buildings.

Chart-5:SegmentalDistribution

XIII

government Projects

The Central government and various state governments have initiated a number of schemes

for mass housing, infrastructure development projects, sanitation projects, water supply

and irrigation projects, and overall urban development. some well known initiatives from the

governmentincludeJNNURM,SEZs,PMGSY,RGGVY,NHDP,SEZs,amongothers.JNNURM

hasbeen initiatedbythe Indiangovernment forplannedurbandevelopment incities;NHDP

is the National Highways Development Project that involves development, maintenance and

management of national highways. seZs are geographical regions that have more liberal

economic laws and enjoy certain privileges conferred by the government.

According to the study, approximately 37% of the sample companies have undertaken projects

under the NHDP scheme initiated by the government and approximately 34% companies have

undertaken projects under the seZ scheme initiated by the government.

Joint Ventures

Construction companies have entered a number of JVs and collaborations for undertaking

various projects. Construction companies enter partnerships with domestic and international

construction companies for expanding into new regions, new segments, and also enter

technological collaborations for completion of projects. Companies come together to form sPVs

to execute projects on BOT, BOOT basis.

Approximately 60% of the companies have entered JVs of various forms for execution of projects.

Generally, companies carrying out construction of townships prefer the JV route for execution

of projects.

term loans, the most-preferred financing option

The construction sector is heavily dependent on finance and efficient resource management for

project execution, expansion, and diversification. Public limited companies are inclined towards

term-loan followed by internal accruals for expansion. Term-loan is one of the most preferred

financing options for expansion of capacity for the sample companies also, followed by internal

accruals.

XIV

Chart-6: Financing Options

entering new markets-top priority for construction companies

Most companies in the infrastructure sector are presently consciously undertaking projects on

a PPP basis, for directing synergies of private companies and government companies. Most

companies dealing in building residential buildings are planning to enter new markets. Airport

development companies are inclined more towards JVs/ alliances for their future expansion.

Chart-7: Future Plan

1 being the most important and 5 being the least important

growth Drivers

The construction sector has potential for growth due to the growing need and demand for better

infrastructure and real estate properties. In recent times, the government has also realised the

importance of robust infrastructure and has undertaken a number of initiatives in that direction.

The government has relaxed FDI norms for investment in the sector. Almost all companies in the

sample, considered economic and industrial growth in recent times and favorable government

policies as the important growth drivers.

XV

Chart-8: Growth Drivers


escalating raw material cost troubles construction companies

some hurdles and challenges faced by the sample construction companies include different

clearances from the Central and state governments, competition, availability of land and raw

materials, unorganised labour market etc. Majority of companies from the sample cited increasing

cost of raw materials and delay in approval from authorities as key hindrances to overall growth

of the construction sector.

Chart-9: Challenges faced by sample companies


XVI

B) Power

Of the total 71 companies in the power sector, Dun & Bradstreet has taken a sample of 38

companies for this study.

Key Characteristics

• Amongthepowercompaniesinthesample,10.53%arecentrallygovernedcompanies,and

47.37% are state-owned companies.

• 36.84%companiesaresolelyinvolvedinthebusinessofpowergeneration,42.11%companies

handle distribution-related activities and 7.89% companies handle transmission activities.

Integrated players constitute the remaining 13.16%, and these players are present in either

two or all three activities of generation, distribution, and transmission.

• Outofthe38companiescoveredinthesamplesize,23.68%companieswereincorporated

prior to 1990, 39.48% companies were incorporated during 1990-2000 and the remaining

36.84% companies were incorporated after the year 2000.

• Around58%companies inthesamplehaveatotalturnoverbetweenRs1,000-Rs20,000

million,32%companieshaveaturnoverintherangeofRs20,000-40,000millionand10%

companieshaveaturnoverofmorethanRs40,000million.

• Outofthesampleof38companies,about29%companiesarefromtheNorthernregion,29%

from the southern region, 24% from the eastern region, & 18% are from the Western region.

generation

• Electricity Generated

In FY08, the total electricity generated by the sample companies involved in power generation

was 339,163.8 MU. Central government controlled companies generated 66.22% of the total

electricity, state government undertakings generated 29.06% of the total electricity, and

other players including private firms, JVs and public listed companies generated 4.72% of

total electricity.

• InstalledCapacity

As on March 31, 2008, the total installed capacity of 19 companies that are involved in

generationofelectricitywas59,426.714MW.Thermalpowerplantshavealmost75%share

in the total installed capacity, hydro power plants have about 22% share and other power

plants, including bio-mass, diesel, wind and gas plants, have approximately 3% share in the

total installed capacity.

XVII

• CapacityAdditions

The companies plan to increase the total installed capacity of power plants by 64,037 MW

in thenext5years.This includesexpanding thermalpowerplantsbyapproximately51%,

hydro power plants by approximately 5.26%, nuclear plants by approximately 10.0%, and

other plants by approximately 33.6%. The companies will increase their capacities either by

installing new power plants or by expanding installed capacity of existing power plants.

• TypesofPowerPlants

From the analysis, we found that India still depends largely on the conventional methods of

generating power such as coal, gas and lignite-based thermal power plants, followed by the

hydro power stations.

Of the total 132 power plants owned and operated by the companies, approximately 48.48%

(round off figures) are thermal power plants, 47.73% (round off figures) are hydro-electric

power plants and 3.79% (rounded off figures) are other plants, which include combined cycle

power plants, gas turbine, diesel-based power plants, and wind-based power plants.

Distribution

• Electricitydistributed

In FY08, the total electricity distributed by the sample companies involved in distribution of

power was 129.8 BU, of which state government undertakings distributed 46.27% of electricity

andtheremaining53.73%ofelectricitywasdistributedbynon-governmentorganisations.

• T&Dlosses

In FY08, the average distribution losses of companies were 20.2%. The T&D losses of state-

owned undertakings were also 20.0% and that of other players, including private players,

municipal undertakings, was 19.87%.

• Consumermix

In FY08, the consumer mix of T&D companies included residential, industrial and domestic

users.Theirproductmixcomprised84.53%ofresidentialconsumers,9.61%ofcommercial

consumers,3.11%ofindustrialconsumers,and2.75%ofotherconsumers(mainlyagricultural

users).

XVIII

transmission

In FY08, the sample companies transmitted approximately 97,610.69 MU of electricity. All

electricitywastransmittedbystate-ownedundertakings,amongwhichamaximumof57.18%

was transmitted by a single company. The average T&D loss in FY08 was 2.76%.

term loan is the most preferred financing option for the future expansion

Most of the companies studied in the sample preferred term-loan financing followed by self-

financing,IPO,bonds/debentures,ADR/GDRetc.About74%ofsamplecompaniespreferred

term-loan financing for future expansion. About 42.9% of the generation companies and 42.0%

of the distribution companies preferred term-loan financing. self-financing was preferred by

30% of distribution companies and 20% of generation companies.

Chart-10: Financing Options

Capacity expansion - top priority for power companies

Most Central government undertakings prefer capacity expansion for future expansion and

for entering newer markets. Most state governments and other companies, including private

companies, JVs and municipal undertakings also prefer capacity expansion for the future. A

large number of generation companies prefer JVs/alliances as the second preferred option after

capacity expansion. Most transmission companies and distribution companies prefer capacity

expansion and diversification into new business segments.

XIX

Chart-11: Future Plan


economic and Industrial growth - reason for growth

The sample companies expect 16.99% growth on an average in the next 2 years. Most generation

companies expect approximately 26.0% growth and consider economic and industrial growth

tobetheirgrowthdrivers.Distributioncompaniesexpect15.42%growthinthenextfinancial

year mainly through economic and industrial growth. similarly, transmission companies consider

economic and industrial growth along with favourable government policies to be the most

important factor for growth.

Chart-12: Growth drivers


XX

regulatory norms is one of the major concern for power companies

One of the challenges faced by most companies in this sector is regulatory norms relating to legal

and environmental aspects. Most generation companies faced unavailability of equipment as the

major hurdle in their growth. A large junk of transmission and distribution companies found rise

in prices of raw materials due to inflation as the biggest challenge apart from regulatory norms

relating to legal and environmental aspects.

Chart-13: Challenges faced by sample companies


Total Income Listing L1India’s Leading Infrastructure Companies 2008

Sr No Company Name Total Income (Rs Million)

1 NTPC Limited 400,177.0

2 Bharat Sanchar Nigam Limited 380,534.0

3 Larsen & Toubro Limited 255,298.0

4 Maharashtra State Electricity Distribution Company Limited 220,000.0

5 Reliance Communications Limited 134,266.5

6 Maharashtra State Power Generation Company Limited 80,454.3

7 Reliance Infrastructure Limited 75,012.0

8 Tata Power Company Limited, The 63,817.5

9 Mahanagar Telephone Nigam Limited 54,078.4

10 Power Grid Corporation of India Limited 50,815.3

11 Jaiprakash Associates Limited 42,738.9

12 Nuclear Power Corporation Limited 42,663.6

13 Jaipur Vidyut Vitran Nigam Limited 42,627.0

14 Rajasthan Rajya Vidyut Utpadan Nigam Limited 40,660.0

15 Southern Power Distribution Company of Andhra Pradesh Limited 38,575.3

16 CESC Limited 37,380.0

17 Torrent Power Limited 37,220.0

18 IVRCL Infrastructures & Projects Limited 36,981.0

19 Karnataka Power Corporation Limited 36,400.0

20 Neyveli Lignite Corporation Limited 36,380.7

21 Nagarjuna Construction Company Limited 34,784.9

22 Tata Communications Limited 34,653.3

23 GRIDCO Limited 33,483.0

24 NHPC Limited 31,555.0

25 Hindustan Construction Company Limited 31,207.5

26 Simplex Infrastructures Limited 28,366.6

27 K E C International Limited 28,140.0

28 Eastern Power Distribution Company of Andhra Pradesh Limited 27,658.9

29 Northern Power Distribution Company of Andhra Pradesh Limited 26,837.3

30 West Bengal Power Development Corporation Limited, The 26,000.0

31 Housing Development & Infrastructure Limited 24,323.3

32 Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Limited 24,000.0

33 Brihan Mumbai Electric Supply & Transport Undertaking, The 23,623.3

34 Gammon India Limited 23,381.5

35 North Delhi Power Limited 22,920.0

36 Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited 21,800.0

37 Madhya Gujarat Vij Company Limited 20,254.2

38 National Building Construction Corporation Limited 20,249.8

39 Gujarat Paguthan Energy Corporation Private Limited 18,489.9

40 Omaxe Limited 18,120.0

India’s Leading Infrastructure Companies 2008


Sr No Company Name Total Income (Rs Million) 41 Parsvnath Developers Limited 17,922.4

42 Maytas Infra Limited 17,643.3

43 Kalpataru Power Transmission Limited 17,590.5

44 Afcons Infrastructure Limited 17,500.0

45 Hubli Electricity Supply Company Limited 17,067.4

46 Maharashtra State Electricity Transmission Company Limited 16,510.0

47 Lanco Infratech Limited 16,036.3

48 Alstom Projects (I) Limited 15,868.4

49 B. L. Kashyap and Sons Limited 15,646.2

50 Era Infra Engineering Limited 14,992.8

51 Spice Communications Limited 14,738.8

52 Consolidated Construction Consortium Limited 14,559.0

53 Sobha Developers Limited 14,345.0

54 Satluj Jal Vidyut Nigam Limited 14,000.0

55 Tata Projects Limited 13,708.7

56 Reliance Telecom Limited 13,619.5

57 Gulbarga Electricity Supply Company Limited 13,460.0

58 Patel Engineering Limited 13,349.0

59 Mumbai Port Trust 13,126.2

60 Tulip Telecom Limited 12,394.9

61 Subhash Projects & Marketing Limited 11,671.0

62 Ramky Infrastructure Limited 10,560.4

63 North Eastern Electric Power Corporation Limited 9,626.8

64 Gujarat Industries Power Company Limited 9,621.5

65 Mangalore Electricity Supply Company Limited 9,412.0

66 JMC Projects (India) Limited 9,210.0

67 North Eastern Electricity Supply Company of Orissa Limited 9,176.5

68 Chennai Port Trust 8,924.0

69 Sadbhav Engineers Limited 8,759.8

70 Lanco Kondapalli Power Private Limited 8,692.5

71 Gujarat Energy Transmission Corporation Limited 8,650.0

72 Unity Infraprojects Limited 8,623.8

73 Central Electricity Supply Utility of Orissa 8,620.0

74 Essar Power Limited 8,230.0

75 ITD Cementation India Limited 7,975.0

76 Dredging Corporation of India Limited 7,714.6

77 Narmada Hydroelectric Development Corporation Limited 7,680.7

78 Indraprastha Power Generation Company Limited 7,612.0

79 Gayatri Projects Limited 7,578.0

80 Great Offshore Limited 7,503.1

81 Durgapur Projects Limited, The 7,500.0

82 B. Seenaiah & Company (Projects) Limited 7,400.0


Sr No Company Name Total Income (Rs Million) 83 Madhucon Projects Limited 7,379.9

84 Aban Offshore Limited 7,318.1

85 Oriental Structural Engineers Private Limited 7,164.8

86 Toyo Engineering India Limited 7,150.0

87 Shriram EPC Limited 6,491.9

88 Southern Electricity Supply Company of Orissa Limited 6,440.0

89 Kanpur Electricity Supply Company Limited 6,150.0

90 IVR Prime Urban Developers Limited 6,143.3

91 Vascon Engineers Limited 6,020.5

92 Anant Raj Industries Limited 5,861.5

93 Puravankara Projects Limited 5,756.3

94 Hindustan Steelworks Construction Limited 5,262.0

95 Arihant Foundation & Housing Limited 5,157.0

96 Kandla Port Trust 5,057.6

97 Valecha Engineering Limited 5,014.7

98 Brigade Enterprises Limited 4,953.8

99 Orissa Power Generation Corporation Limited 4,816.7

100 Keystone Realtors Private Limited 4,800.0

101 Pratibha Industries Limited 4,796.0

102 KNR Constructions Limited 4,795.8

103 Akruti City Limited 4,737.0

104 A2Z Maintenance & Engineering Services Private Limited 4,652.0

105 East Coast Construction and Industries Limited 4,316.1

106 Orissa Power Transmission Corporation Limited 4,270.0

107 Orbit Corporation Limited 4,222.2

108 Jindal Drilling & Industries Limited 4,165.9

109 Telecommunications Consultant India Limited 4,148.7

110 Jaiprakash Power Ventures Limited 4,045.0

111 Upper Assam Electricity Distribution Company Limited 4,000.0

112 Orissa Hydro Power Corporation Limited 3,860.0

113 PBA Infratsructure Limited 3,723.7

114 Tantia Constructions Limited 3,647.4

115 Peninsula Land Limited 3,556.0

116 NKG Infrastructure Limited 3,500.0

117 Prajay Engineers Syndicate Limited 3,450.0

118 BSES Kerala Power Limited 3,446.5

119 Jaiprakash Hydro-Power Limited 3,425.0

120 Ashoka Buildcon Limited 3,420.0

121 Eros Constructions Private Limited 3,250.0

122 Hindustan Dorr Oliver Limited 3,110.5

123 Sunil Hitech Engineers Limited 3,093.8

124 New Mangalore Port Trust 3,087.6


Sr No Company Name Total Income (Rs Million) 125 New Consolidated Construction Company Limited 3,000.0

126 Vipul Limited 2,916.0

127 Kanakia Spaces Private Limited 2,823.6

128 Petron Engineering Construction limited 2,801.6

129 Marg Limited 2,784.0

130 Mormugao Port Trust 2,680.3

131 UB Engineering Limited 2,663.8

132 NTPC-SAIL Power Company Private Limited 2,518.4

133 Ansal Housing & Construction Limited 2,517.8

134 MSK Projects (India) Limited 2,471.0

135 Delhi Transco Limited 2,452.7

136 Kalindee Rail Nirman Engineers Limited 2,346.6

137 Aban Power Company Limited 2,318.0

138 Simplex Projects Limited 2,298.8

139 Godrej Properties Limited 2,275.0

140 B. E. Billimoria & Co. Limited 2,261.1

141 Tuticorin Port Trust 2,250.4

142 Lok Housing & Constructions Limited 2,245.0

143 Cochin Port Trust 2,200.9

144 J. Kumar Infraprojects Limited 2,170.0

145 International Seaport Dredging Limited 2,084.1

146 Satra Properties (India) Limited 2,062.7

147 IndusInd Media & Communication Limited 1,977.3

148 L&T Infocity Limited 1,946.4

149 Railtel Corporation of India Limited 1,900.0

150 Vijay Nirman Company Private Limited 1,877.6

151 URC Construction (P) Limited 1,795.7

152 Andhra Pradesh Gas Power Corporation Limited 1,769.8

153 Vijai Infrastructure Limited 1,700.0

154 Noida Power Company Limited 1,688.0

155 SVEC Constructions Limited 1,679.5

156 Marathon Realty Private Limited 1,633.9

157 Rajdeep Buildcon Private Limited 1,576.0

158 Supreme Infrastructure India Limited 1,569.8

159 Ansal Buildwell Limited 1,527.3

160 Ennore Port Limited 1,437.2

161 Ganesh Housing Corporation Limited 1,400.7

162 Haware Engineers & Builders Private Limited 1,390.0

163 Rohan Builders (India) Private Limited 1,372.3

164 RPP Constructions (P) Limited 1,350.2

165 Lanco Hills Technology Park Private Limited 1,327.0

166 Tehri Hydro Development Corporation Limited 1,280.0


Sr No Company Name Total Income (Rs Million) 167 Ashiana Housing Limited 1,272.5

168 Roman Tarmat Limited 1,271.0

169 Jindal Power Limited 1,250.0

170 Stewarts and Lloyds of India Limited 1,240.7

171 Neelkanth Mansions & Infrastructure Limited 1,211.0

172 Apco Constructions (P) Limited 1,206.8

173 RDS Projects Limited 1,200.0

174 Marathon Nextgen Realty Limited 1,193.8

175 Suryachakra Power Corporation Limited 1,105.4

176 Indian Commerce & Industries Company Private Limited 1,104.0

177 Sunil Mantri Realty Limited 1,103.0

178 Total Environment Building Systems Private Limited 1,090.0

179 Prime Property Development Corporation Limited 1,085.1

180 Shalivahana Green Energy Limited 1,050.0

Note: Listing is subject to availability of information

Employee Size Listing L6India’s Leading Infrastructure Companies 2008

India’s Leading Infrastructure Companies 2008Construction

Sr No Company Name Employees

1 IVRCL Infrastuctures & Projects Limited 6,254

2 Simplex Infrastructures Limited 6,000

3 A2Z Maintenance and Engineering Services Private Limited 5,667

4 Nagarjuna Construction Company Limited 3,620

5 Alstom Projects India Limited 3,394

6 Sobha Developers Limited 3,308

7 Madhucon Projects Limited 3,200

8 B. Seenaiah & Company (Projects) Limited 3,000

9 B. L. Kashyap and Sons Limited 2,800

10 Consolidated Construction Consortium Limited 2,750

11 JMC Project (India) Limited 2,500

12 K E C International Limited 2,500

13 Maytas Infra Limited 2,350

14 Oriental Structural Engineers Private Limited 2,331

15 Subhash Projects & Marketing Limited 2,000

16 Toyo Engineeing India Limited 1,845

17 Tata Projects Limited 1,825

18 Gammon India Limited 1,661

19 Hindustan Steelworks Construction Limited 1,480

20 Patel Engineering Limited 1,476

21 Vijay Nirman Company Private Limited 1,450

22 ITD Cementation India Limited 1,442

23 Ramky Infrastructure Limited 1,423

24 Sunil Hitech Engineers Limited 1,387

25 MSK Projects (India) Limited 1,300

26 Ashoka Buildcon Limited 1,274

27 East Coast Construction and Industries Limited 1,200

28 Omaxe Limited 1,100

29 Unity Infraprojects Limited 1,098

30 Pratibha Industries Limited 1,000

31 B. E. Billimoria & Co. Limited 863

32 Puravankara Projects Limited 787

33 New Consolidated Construction Company Limited 780

34 SVEC Constructions Limited 750

35 Aban Offshore Limited 700

36 Roman Tarmat Limited 600

37 Shriram EPC Limited 600

38 Vascon Engineers Limited 556


39 Tantia Constructions Limited 550

40 KNR Constructions Limited 528

41 Ansal Buildwell Limited 500

42 Valecha Engineering Limited 500

43 Rajdeep Buildcon Private Limited 450

44 Supreme Infrastructure India Limited 450

45 RPP Constructions (P) Limited 435

46 Ansal Housing and Construction Limited 410

47 Apco Constructions (P) Limited 400

48 Rohan Builders (India) Private Limited 373

49 Keystone Realtors Private Limited 350

50 NKG Infrastructure Limited 350

51 Vijai Infrastructure Limited 350

52 Total Environment Building Systems Private Limited 348

53 Brigade Enterprises Limited 328

54 Marg Limited 306

55 G S Developers and Contractors Private Limited 300

56 J. Kumar Infraprojects Limited 300

57 Kanakia Spaces Private Limited 300

58 Peninsula Land Limited 300

59 Eros Constructions Private Limited 289

60 Neelkanth Mansions & Infrastructure Limited 287

61 Marathon Realty Private Limited 250

62 Sunil Mantri Realty Limited 250

63 Akruti City Limited 213

64 Vipul Limited 200

65 Ashiana Housing Limited 180

66 Indian Commerce & Industries Company Private Limited 175

67 VRM (India) Limited 175

68 Vaswani Estates Developers Private Limited 150

69 Lok Housing and Constructions Limited 146

70 IVR Prime Urban Developers Limited 115

71 Orbit Corporation Limited 101

72 Marathon Nextgen Realty Limited 60



Ports


1 Chennai Port Trust 8,193

2 Kandla Port Trust 4,500

3 Cochin Port Trust 3,511

4 Mormugao Port Trust 3,018

5 New Mangalore Port Trust 1,770

6 Tuticorin Port Trust 1,197

7 Ennore Port Limited 58


1 Maharashtra State Electricity Distribution Company Limited 70,000

2 NTPC Limited 24,547

3 Neyveli Lignite Corporation Limited 18,940

4 Jaipur Vidyut Vitran Nigam Limited 16,964

5 Maharashtra State Power Generation Company Limited 14,928

6 Madhya Pradesh Poorv Kshetra Vidyut Vitran Company Limited 14,600

7 Maharashtra State Electricity Transmission Company Limited 14,500

8 Southern Power Distribution Company of A.P. Limited 13,614

9 Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Ltd 12,934

10 NHPC Limited 12,341

11 Gujarat Energy Transmission Corporation Limited 12,000

12 Nuclear Power Corporation of India Limited 11,924

13 CESC Limited 10,579

14 Central Electricity Supply Utility of Orissa 10,000

15 Northern Power Distribution Company of Andhra Pradesh Limited 8,440

16 Eastern Power Distribution Company of Andhra Pradesh Limited 8,224

17 Brihan Mumbai Electric Supply and Transport Undertaking, The 8,000

18 Power Grid Corporation of India Limited 7,645

19 Hubli Electricity Supply Company Limited 6,995

20 Karnataka Power Corporation Limited 6,159

21 Madhya Gujarat Vij Company Limited 6,138

22 Gulbarga Electricity Supply Company Limited 6,000

23 Torrent Power Limited 5,858

24 Southern Electricity Supply Company of Orissa Limited 4,700

25 Mangalore Electricity Supply Company Limited 4,512

26 Orissa Power Transmission Corporation Limited 4,320

27 Durgapur Projects Limited, The 3,900

28 North Delhi Power Limited 3,785

29 Orissa Hydro Power Corporation Limited 3,500

Power


30 Rajasthan Rajya Vidyut Utpadan Nigam Limited 3,500

31 Upper Assam Electricity Distribution Company Limited 3,500

32 North Eastern Electric Power Corporation Limited 3,197

33 Tata Power Company Limited, The 2,847

34 Tehri Hydro Development Corporation Limited 2,500

35 Indraprastha Power Generation Company Limited 2,000

36 Kanpur Electricity Supply Company Limited 2,000

37 Delhi Transco Limited 1,842

38 Satluj Jal Vidyut Nigam Limited 1,700

39 NTPC-SAIL Power Company Private Limited 677

40 Narmada Hydroelectric Development Corporation Limited 569

41 Orissa Power Generation Corporation Limited 554

42 Jindal Power Limited 450

43 Essar Power Limited 400

44 Gujarat Industries Power Company Limited 400

45 Shalivahana Green Energy Limited 400

46 Gujarat Paguthan Energy Corporation Private Limited 120

47 Noida Power Company Limited 98

48 Andhra Pradesh Gas Power Corporation Limited 87

49 GRIDCO Limited 67

50 BSES Kerala Power Limited 50

51 Lanco Kondapalli Power Private Limited 43

52 Suryachakra Power Corporation Limited 32


Telecom


1 Bharat Sanchar Nigam Limited 308,086

2 Mahanagar Telephone Nigam Limited 45,000

3 Reliance Communications Limited 36,650

4 Tata Commmunications Limited 5,000

5 Tulip Telecom Limited 1,896

6 IndusInd Media & Communication Limited 1,048

7 Railtel Corporation of India Limited 500

Note: Listing is subject to availability of information.

India’s Leading Infrastructure Companies 2008

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