construction industry india- analysis

India - Cons truction & Engineering 0102 - 2028 - 2012

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MarketLine Industry Profile

Construction & Engineering in India August 2013

Reference Code: 0102-2028

Publication Date: August 2013

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MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED



EXECUTIVE SUMMARY

Market value The Indian construction & engineering industry grew by 4.4% in 2012 to reach a value of $117.4 billion.

Market value forecast In 2017, the Indian construction & engineering industry is forecast to have a value of $162 billion, an increase of 38%

since 2012.

Category segmentation Civil engineering is the largest segment of the construction & engineering industry in India, accounting for 56.5% of the

industry's total value.

Geography segmentation India accounts for 7.5% of the Asia-Pacific construction & engineering industry value.

Market rivalry The construction and engineering industry is characterized by large incumbents operating alongside smaller companies.

Rivalry is eased somewhat by companies diversifying operations into other sectors.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market Segmentation .......................................................................................................................................................................9

Category segmentation................................................................................................................................................................9

Geography segmentation ..........................................................................................................................................................10

Market Outlook ................................................................................................................................................................................11

Market value forecast.................................................................................................................................................................11

Five Forces Analysis ......................................................................................................................................................................12

Summary ......................................................................................................................................................................................12

Buyer power.................................................................................................................................................................................13

Supplier power ............................................................................................................................................................................14

New entrants ...............................................................................................................................................................................15

Threat of substitutes...................................................................................................................................................................16

Degree of rivalry..........................................................................................................................................................................17

Leading Companies........................................................................................................................................................................18

Gammon India Limited...............................................................................................................................................................18

Hindustan Construction Company Ltd. ...................................................................................................................................21

Jaiprakash Associates Limited .................................................................................................................................................24

Ansal Properties & Infrastructure Limited ...............................................................................................................................28

Macroeconomic Indicators.............................................................................................................................................................31

Country Data ...............................................................................................................................................................................31

Appendix...........................................................................................................................................................................................33



Methodology ................................................................................................................................................................................33

Industry associations..................................................................................................................................................................34

Related MarketLine research....................................................................................................................................................34



LIST OF TABLES

Table 1: India construction & engineering industry value: $ billion, 200812 .........................................................................8

Table 2: India construction & engineering industry category segmentation: $ billion, 2012 .................................................9

Table 3: India construction & engineering industry geography segmentation: $ billion, 2012 ...........................................10

Table 4: India construction & engineering industry value forecast: $ bill ion, 201217 ........................................................11

Table 5: Gammon India Limited: key facts .................................................................................................................................18

Table 6: Gammon India Limited: key financials ($) ...................................................................................................................19

Table 7: Gammon India Limited: key financials (Rs.) ...............................................................................................................19

Table 8: Gammon India Limited: key financial ratios ................................................................................................................19

Table 9: Hindustan Construction Company Ltd.: key facts ......................................................................................................21

Table 10: Hindustan Construction Company Ltd.: key financials ($)......................................................................................22

Table 11: Hindustan Construction Company Ltd.: key financials (Rs.) ..................................................................................22

Table 12: Hindustan Construction Company Ltd.: key financial ratios...................................................................................22

Table 13: Jaiprakash Associates Limited: key facts ..................................................................................................................24

Table 14: Jaiprakash Associates Limited: key financials ($) ...................................................................................................25

Table 15: Jaiprakash Associates Limited: key financials (Rs.)................................................................................................25

Table 16: Jaiprakash Associates Limited: key financial ratios.................................................................................................26

Table 17: Ansal Properties & Infrastructure Limited: key facts ................................................................................................28

Table 18: Ansal Properties & Infrastructure Limited: key financials ($) .................................................................................29

Table 19: Ansal Properties & Infrastructure Limited: key financials (Rs.)..............................................................................29

Table 20: Ansal Properties & Infrastructure Limited: key financial ratios...............................................................................29

Table 21: India size of population (million), 200812................................................................................................................31

Table 22: India gdp (constant 2000 prices, $ billion), 200812...............................................................................................31

Table 23: India gdp (current prices, $ billion), 200812 ...........................................................................................................31

Table 24: India inflation, 200812 ................................................................................................................................................32

Table 25: India consumer price index (absolute), 200812 .....................................................................................................32

Table 26: India exchange rate, 200812.....................................................................................................................................32



LIST OF FIGURES

Figure 1: India construction & engineering industry value: $ billion, 200812 ........................................................................8

Figure 2: India construction & engineering industry category segmentation: % share, by value, 2012 .............................9

Figure 3: India construction & engineering industry geography segmentation: % share, by value, 2012........................10

Figure 4: India construction & engineering industry value forecast: $ billion, 201217.......................................................11

Figure 5: Forces driving competition in the construction & engineering industry in India, 2012 ........................................12

Figure 6: Drivers of buyer power in the construction & engineering industry in India, 2012...............................................13

Figure 7: Drivers of supplier power in the construction & engineering industry in India, 2012...........................................14

Figure 8: Factors influencing the likelihood of new entrants in the construction & engineering industry in India, 2012 15

Figure 9: Factors influencing the threat of substitutes in the construction & engineering industry in India, 2012 ..........16

Figure 10: Drivers of degree of rivalry in the construction & engineering industry in India, 2012......................................17

Figure 11: Gammon India Limited: revenues & profitability .....................................................................................................20

Figure 12: Gammon India Limited: assets & liabilities ..............................................................................................................20

Figure 13: Hindustan Construction Company Ltd.: revenues & profitability ..........................................................................23

Figure 14: Hindustan Construction Company Ltd.: assets & liabilities...................................................................................23

Figure 15: Jaiprakash Associates Limited: revenues & profitability........................................................................................26

Figure 16: Jaiprakash Associates Limited: assets & liabilities.................................................................................................27

Figure 17: Ansal Properties & Infrastructure Limited: revenues & profitability......................................................................30

Figure 18: Ansal Properties & Infrastructure Limited: ass ets & liabilities...............................................................................30



MARKET OVERVIEW

Market definition The construction and engineering industry is composed of civil engineering companies and large-scale contractors, but

excludes companies involved in home-building. The market value is calculated as the value of the construction of non -

residential buildings and non-buildings construction (civil engineering). All currency conversions have been calculated

using constant average 2012 annual rate.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The Indian construction & engineering industry grew, in line with most developing nations, over the historical period.

This is set to continue at an increased rate and testifies to the strength of developing world growth prospects.

The Indian construction & engineering industry had total revenues of $117.4bn in 2012, representing a compound annual

growth rate (CAGR) of 5.6% between 2008 and 2012. In comparison, the Chinese industry increased with a CAGR of

22.8%, and the Japanese industry declined with a compound annual rate of change (CARC) of -1.9%, over the same

period, to reach respective values of $825.3bn and $357.1bn in 2012.

The civil engineering segment was the industry's most lucrative in 2012, with total revenues of $66.4bn, eq uivalent to

56.5% of the industry's overall value. The non-residential building segment contributed revenues of $51.0bn in 2012,

equating to 43.5% of the industry's aggregate value.

The performance of the industry is forecast to accelerate, with an anticipated CAGR of 6.6% for the five-year period 2012

- 2017, which is expected to drive the industry to a value of $162bn by the end of 2017. Comparatively, the Chinese and

Japanese industries will grow with CAGRs of 13.9% and 4.8% respectively, over the same p eriod, to reach respective

values of $1,582.6bn and $452.0bn in 2017.



MARKET DATA

Market value The Indian construction & engineering industry grew by 4.4% in 2012 to reach a value of $117.4 billion.

The compound annual growth rate of the industry in the period 200812 was 5.6%.

Table 1: India construction & engineering industry value: $ billion, 200812

Year $ billion Rs. billion billion % Growth

2008 94.3 5,054.0 73.6

2009 99.4 5,327.5 77.6 5.4%

2010 104.9 5,624.1 81.9 5.6%

2011 112.5 6,029.0 87.8 7.2%

2012 117.4 6,294.3 91.6 4.4%

CAGR: 200812 5.6%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: India construction & engineering industry value: $ billion, 200812




MARKET SEGMENTATION

Category segmentation Civil engineering is the largest segment of the construction & engineering industry in India, accounting for 56.5% of the

industry's total value.

The Non-residential building segment accounts for the remaining 43.5% of the industry.

Table 2: India construction & engineering industry category segmentation: $ billion, 2012

Category 2012 %

Civil Engineering 66.4 56.5%

Non-Residential Building 51.0 43.5%

Total 117.4 100%


Figure 2: India construction & engineering industry category segmentation: % share, by value, 2012




Geography segmentation India accounts for 7.5% of the Asia-Pacific construction & engineering industry value.

China accounts for a further 52.6% of the Asia-Pacific industry.

Table 3: India construction & engineering industry geography segmentation: $ billion, 2012

Geography 2012 %

China 825.3 52.6

Japan 357.1 22.8

India 117.4 7.5

South Korea 70.8 4.5

Rest of Asia-Pacific 197.0 12.6

Total 1,567.6 100%


Figure 3: India construction & engineering industry geography segmentation: % share, by value, 2012




MARKET OUTLOOK

Market value forecast In 2017, the Indian construction & engineering industry is forecast to have a value of $162 billion, an increase of 38%

since 2012.

The compound annual growth rate of the industry in the period 201217 is predicted to be 6.6%.

Table 4: India construction & engineering industry value forecast: $ billion, 201217

Year $ billion Rs. billion billion % Growth

2012 117.4 6,294.3 91.6 4.4%

2013 132.4 7,100.4 103.4 12.8%

2014 140.2 7,517.0 109.4 5.9%

2015 146.6 7,859.5 114.4 4.6%

2016 154.6 8,290.5 120.7 5.5%

2017 162.0 8,682.8 126.4 4.7%

CAGR: 201217 6.6%


Figure 4: India construction & engineering industry value forecast: $ billion, 201217




FIVE FORCES ANALYSIS

The construction & engineering market will be analyzed taking construction & engineering companies as players. The

key buyers will be taken as contractors, and raw material producers as the key suppliers.

Summary

Figure 5: Forces driving competition in the construction & engineering industry in India, 2012


The construction and engineering industry is characterized by large incumbents operating alongside smaller companies.

Rivalry is eased somewhat by companies diversifying operations into other sectors.

There are a small numbers of buyers in this industry, and typically large in size. Similarly suppliers have a great deal of

power over market players as their raw materials are essential for players businesses. However suppliers have also

suffered the effects of the global economic crisis, seeing the prices of many raw materials rise. There are few, if any,

substitutes available in this industry.



Buyer power

Figure 6: Drivers of buyer power in the construction & engineering industry in India, 2012


Buyers in this industry tend to be large and few in number. Typically the main buyers are government agencies or large

private-sector customers, usually corporate rather than individuals. Generally, in this industry, customers invite market

players to tender for contracts which are on the customers terms. This means the buyer is in a more powerful position as

they specifically define the parameters of the project. However, in some circumstances, market players can influence

customer requests.

In contrast to most other countries, the construction and engineering industry in India did not fall into decline during the

global recession and retains positive growth. However in July 2012, the Indian governm ent's Planning Commission

announced it would not be able to achieve its $1 trillion investment target in the infrastructure sector during its 12th Plan

(running from 2012-17) in view of lower economic growth prospects.

Buyers are influenced by economic factors such as the long term maintenance and proposed efficiency of the project,

meaning that contracts are not always won on price. Unlike private-sector buyers there is little brand loyalty, with

personal taste making a negligible impact upon decision making. In addition to this there are no switching costs which

coupled with the strong price sensitivity of the industry that is imposed by typical tendering processes, serve to

strengthen buyer power somewhat. On the other hand, buyers are often unable and unlikely to integrate backwards into

project management themselves. Furthermore, the buyer will have incurred before inviting contractors to submit tenders,

for example in raising funds, consulting with stakeholders and defining requirements. Thus the proj ect is likely to be of

significant importance to the buyer. Buyer power in this sense is reduced. Overall, buyer power in the Indian industry is

assessed as moderate.



Supplier power

Figure 7: Drivers of supplier power in the construction & engineering industry in India, 2012


There are two forms of supplier to this industry. Firstly the distributors of materials and components, and secondly sub -

contractors who provide specialized services needed for the completion of projects, for example bricklaying or electrical

installations. The manufacture of building materials is highly consolidated with players such as Holcim and Cemex

dominating most markets. The fact that these materials are essential for market players moderately augments supplier

power. However, these materials are largely undifferentiated, meaning suppliers will have to compete heavily on price to

assure contracts. Furthermore, the surge in commodities demand from developing marke ts has seen rises in the price of

raw materials, intensifying competition amongst suppliers. There are typically larger numbers of sub -contractors with the

necessary skills to complete projects, which puts them in a weaker position. Supplier power in this industry is assessed

as moderate overall.



New entrants

Figure 8: Factors influencing the likelihood of new entrants in the construction & engineering industry in India, 2012


Solid industry growth witnessed in India over recent years, and the liberalization of rules governing foreign companies

entering the Indian industry, could prove enticing to new entrants.

The level of regulation is usually highly complex, as a poor-quality structure can not only be hazardous but also costly to

owners. Regulation can serve as a significant entry barrier, while foreign players may also be restricted. In developing

countries, regulation may be less stringent. Contracts for public works are typically aw arded to companies who have a

good reputation. This is a further barrier to entry for new players who must compete with well -established firms.

However, new entrants do not necessarily require large capital to enter the industry as small sub -contractors are often

used for their specific expertise. Also, new companies can rent equipment and hire temporary workers rather than incur

fixed costs inherent with buying capital items and retaining a large permanent workforce, reducing barriers further.

Construction projects vary in size, meaning that a company can establish itself by competing for smaller projects thus

building a reputation for itself. Quality, price and performance are more important than branding as many contracts will

stipulate that work must be performed to an independently-inspected standard before payment. Overall, there is a

moderate threat of new entrants.



Threat of substitutes

Figure 9: Factors influencing the threat of substi tutes in the construction & engineering industry in India, 2012


There is little threat of substitutes in this industry. It is unlikely that buyers will find an alternative expenditure for their

funds which would meet their needs. Market players are also very likely to be involved at all stages, even if buyers are

only renovating an existing structure rather than investing in a new structure.

In some regions, homebuilding provides an alternative with prefabricated homes becoming increasingly popular. Such

contracts are usually won by home building contractors rather than construction contractors. Although prefabricated non -

residential structures are available, these will usually still require a construction company to assemble them, rendering

their impact on the industry negligible.

The constant depreciation of infrastructure means that construction and engineering will always be in demand, with no

viable substitute.

The threat of substitutes in this industry is therefore very weak.



Degree of rivalry

Figure 10: Drivers of degree of rivalry in the construction & engineering industry in India, 2012


The Indian construction and engineering industry is largely fragmented. The industry is chara cterized by the presence of

some large incumbents such as Jaiprakash Associates Limited and Ansal Properties & Infrastructure Limited, but small

scale companies also operate alongside these players.

Many governments are pushing money into the construction and engineering industry by developing new infrastructure

plans, alleviating the industry's rivalry.

Most industry players have diversified operations, meaning they are less reliant on revenues from one sector. A large

company could, for example, build both transport infrastructure and power stations, which require very different specialist

knowledge. However, diversification beyond construction and engineering is unlikely. The industry is of great importance

to players which increases rivalry further, and is exasperated by relatively high exit costs for those companies who own

heavy machinery rather than hiring it.

The key competencies involved in operating within this sector, such as an understanding of building regulations, means

that contractors can essentially move from non-residential construction to homebuilding if need be.

The degree of rivalry within a country is affected strongly by the rate of growth witnessed over recent years. Where an

industry has experienced strong growth over recent years , such as in India, rivalry is reduced due to increased revenues

being made available for competitors.

Overall, rivalry is assessed as moderate.



LEADING COMPANIES

Gammon India Limited

Table 5: Gammon India Limited: key facts

Head office: Gammon House, Veer Savarkar Marg, Prabhadevi, Mumbai 400025, Maharashtra, IND

Telephone: 91 22 6744 4000

Fax: 91 22 2430 0221

Website: www.gammonindia.com

Financial year-end: March

Ticker: 509550, GAMMONIND

Stock exchange: Bombay, NSEI

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Gammon India (Gammon) is an India-based civil engineering construction company that provides infrastructure

engineering and construction services.

The company undertakes various construction projects such as trans portation engineering projects, power projects,

buildings, industrial and commercial structures, marine projects, ground engineering works, environmental projects, and

pipeline projects.

Gammon's construction projects include construction of bridges, ports , harbors, thermal and nuclear power stations,

dams, high-rise structures, chemical and fertilizer complexes, environmental structures, and cross country water and oil

and gas pipelines. It also undertakes construction works in the UAE through its subsidia ry, Gammon and Billimoria.

Gammon's clients include: Delhi Metro Rail Corporation Limited; GAIL India Limited; Godrej Properties; Gorakhpur

Infrastructure Company Limited; Government of Andhra Pradesh; Government of West Bengal; Ministry of Housing,

Electricity and Water, Sultanate of Oman; Municipal Corporation of Amritsar; National Highway Authority of India;

National Hydroelectric Power Corporation Limited; Nuclear Power Corporation of India; Sabarmati River Front

Development Corporation Limited; and Satluj Jal Vidhyut Nigam Limited.

The company's subsidiaries include Gammon Infrastructure Projects, Gammon and Billimoria, Rajahmundry

Expressway, Cochin Bridge Infrastructure, Andhra Expressway, Mumbai Nasik Expressway, Gammon Project

Developers, Kosi Bridge Infrastructure Company, Sikkim Hydro Power Ventures, Gammon Realty Limited, and

Gorakhpur Infrastructure Company.

Key Metrics

The company recorded revenues of $1,778m in the fiscal year ending March 2012, a decrease of 5.5% compared to

fiscal 2011. Its net loss was $22m in fiscal 2012, compared to a net income of $23m in the preceding year.



Table 6: Gammon India Limited: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 564.3 1,102.8 1,504.4 1,881.4 1,778.2

Net income (loss) 15.2 12.0 9.8 23.5 (22.2)

Total assets 947.1 2,386.6 2,616.6 2,988.3 3,557.0

Total liabilities 611.3 1,977.1 2,115.4 2,463.8 3,093.1

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 7: Gammon India Limited: key financials (Rs.)

Rs. million 2008 2009 2010 2011 2012

Revenues 26,434.6 51,661.8 70,474.8 88,136.5 83,302.0

Net income (loss) 712.9 563.2 457.0 1,100.3 (1,039.0)

Total assets 44,368.7 111,803.6 122,580.1 139,989.4 166,634.0

Total liabilities 28,635.5 92,619.8 99,098.5 115,421.8 144,903.0


Table 8: Gammon India Limited: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 2.7% 1.1% 0.6% 1.2% (1.2%)

Revenue growth 4.0% 95.4% 36.4% 25.1% (5.5%)

Asset growth 18.3% 152.0% 9.6% 14.2% 19.0%

Liabilities growth 17.1% 223.4% 7.0% 16.5% 25.5%

Debt/asset ratio 64.5% 82.8% 80.8% 82.5% 87.0%

Return on assets 1.7% 0.7% 0.4% 0.8% (0.7%)




Figure 11: Gammon India Limited: revenues & profitability


Figure 12: Gammon India Limited: assets & liabilities




Hindustan Construction Company Ltd.

Table 9: Hindustan Construction Company Ltd.: key facts

Head office: Hincon House, Lal Bahadur Shastri Marg, Vikhroli West, Mumbai 400083, Maharashtra, IND

Telephone: 91 22 2575 1000

Fax: 91 22 2577 5732

Website: www.hccindia.com


Ticker: 500185

Stock exchange: Bombay


Hindustan Construction Company (HCC) is an India-based company engaged in engineering and construction, real

estate, and infrastructure development of roads, bridges, dams, barrages, nuclear power generators and tunnels. It is

also involved in urban development and management business.

The company operates through engineering and construction, real estate , urban development and management, and

other segments. The core business of HCC includes the following: hydel power (hydro) business, water solution

business, nuclear power and special projects business, and transportation business.

HCC's hydro business involves construction of hydro power plants, dams, barrages, tunnels, underground power

stations, surface power stations and water conductor systems such as surge shafts, pressure shafts and penstocks.

The company through its water solutions business builds irrigation dams, barrages, water treatment plants and sewerage

treatment plants. The company also provides solutions for urban water supply systems, pumping stations, water

treatment plants and lift irrigation for the rural sector.

The nuclear power and special projects business of HCC develops and constructs nuclear power plants. It is engaged in

building pre-stressed containment structures for reactor buildings. The company provides integrated solutions in nuclear

power by tie-ups with engineering and construction solution providers. In special projects, the company is involved in

marine business work which involves constructions of oil storage cavern and sea links.

The company's transportation business involves construction of transport systems, bridges and highways, including road

and rail bridges. One of its projects include the Bandra-Worli sea link, an open-sea, cable-stayed bridge.

In addition, HCC is involved in real estate including building information technology (IT) parks and commercial offices,

township development, urban renewal projects, joint developments and agriculture business. The company undertakes

projects in a partnership with organizations including engineering consultants, design, supply and erect equipment

manufacturers and subcontractors.

The company's subsidiaries include the following: Western Securities, HCC Real Estate, HCC Concessions,

Baharampore-Farakka Highways, Steiner Promotion et Participations, Steiner (Deutschland), Steiner Leman SAS,

Eurohotel and Sirrah Palace Hotels, among others.

Key Metrics

The company recorded revenues of $1,741m in the fiscal year ending March 2012, an increase of 14.0% compared to

fiscal 2011. Its net loss was $113m in fiscal 2012, compared to a net loss of $14m in the preceding year.



Table 10: Hindustan Construction Company Ltd.: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 759.0 761.9 848.6 1,527.5 1,741.3

Net income (loss) 22.2 12.6 1.2 (13.8) (113.2)

Total assets 1,257.0 1,509.1 2,057.5 2,843.3 3,089.5



Table 11: Hindustan Construction Company Ltd.: key financials (Rs.)

Rs. million 2008 2009 2010 2011 2012

Revenues 35,554.2 35,690.9 39,751.9 71,559.0 81,576.3

Net income (loss) 1,041.8 592.4 58.0 (646.2) (5,300.9)

Total assets 58,886.7 70,697.6 96,385.9 133,197.7 144,733.4



Table 12: Hindustan Construction Company Ltd.: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 2.9% 1.7% 0.1% (0.9%) (6.5%)

Revenue growth 42.6% 0.4% 11.4% 80.0% 14.0%

Asset growth 39.7% 20.1% 36.3% 38.2% 8.7%


Debt/asset ratio 81.4% 85.8% 84.9% 89.7% 92.4%

Return on assets 2.1% 0.9% 0.1% (0.6%) (3.8%)




Figure 13: Hindustan Construction Company Ltd.: revenues & profitability


Figure 14: Hindustan Construction Company Ltd.: assets & liabilities




Jaiprakash Associates Limited

Table 13: Jaiprakash Associates Limited: key facts

Head office: Sector 128, Noida 201 304, Uttar Pradesh, IND

Telephone: 91 120 460 9000

Fax: 91 120 460 9464

Website: www.jalindia.com


Ticker: 532532

Stock exchange: Bombay


Jaiprakash Associates (JAL) is a diversified infrastructure conglomerate. The company conducts its business in

engineering and construction, power, cement, hospitality, real estate and expressways. It also has presence in

information technology (IT) sector.

The company operates through the seven segments: construction; cement and cement products; hotel and hospitality;

real estate; power; investments; and others.

The construction segment includes civil engineering construction, EPC (engineering, procurement and construction)

contracts, and expressway.

The civil engineering segment is involved in the construction of river valley and hydropower projects. The company

executes various projects in hydropower, irrigation, and other infrastructure fields. It undertakes projects involving large

quantities of rock excavation (both surface and underground), controlled earth and rock fill, concrete manufacture and

placement (including chilling), fabrication and erection of penstock liners, hydro-mechanical equipment procurement and

erection, and steel structures. JAL's expressway business segment is engaged in the construction of expressways. The

company has entered into construction of expressways with the Yamuna Expressway project, a 165 km access

controlled six lane super expressway between Greater Noida and Agra on build own transfer basis.

JAL manufactures and markets cement, clinker and cement products through its cement segment. The company

manufactures and distributes Portland Pozzolana cement under the brand name Jaypee Cement (PPC). Its cement

division operates computerized process control cement plants with an aggregate installed capacity of 28 million tons per

annum (MnTPA). Its cement facilities are located in the Satna Cluster, Madhya Pradesh.

The company operates hotels, golf course, resorts and spa through its hotel and hospitality segment. The company is

involved in the ownership and operation of five luxury properties. Its portfolio includes Jaypee Greens Golf & Spa Resort,

Jaypee Vasant Continental, Jaypee Siddharth, Jaypee Palace Hotel and Jaypee Residency Manor. The company hotels

offer spa, salon and wellness services such as ayurvedic treatments and massages to de -stress. The company also

maintains lounge bars and recreational facilities.

JAL is engaged real estate development through its real estate segment. Jaypee Greens, the real estate division of the

Jaypee Group, is engaged building premium golf-centric residences, commercial spaces, corporate parks entertainment,

and sports facilities.



The company is engaged in the generation and sale of energy through its power segment. JAL's power segment is

engaged in managing hydropower, thermal power generation, power transmission and wind power projects. Its

hydropower projects include 300 megawatts (MW) Baspa II, 400 MW Vishnuprayag, 1000 MW Karcham - Wangtoo,

Arunachal Pradesh projects (Lower Siang 2700 MW & 500 MW Hirong) and Meghalaya projects (270 MW Umngot and

450 MW Kynshi). The thermal power generating plants of JAL include 2X660 MW Jaypee Nigrie Super Thermal Power

Plant, 1,250 MW Bina thermal power project and 1,980 MW Karchana and 3300 MW Bara thermal power project. The

company is developing a 217 km long power transmission project to evacuate power from the Karcham-Wangtoo project,

to distribute in the states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan in India.

JAL's investment segment holds investments in subsidiaries and joint ventures for cement, power, expressway, sports

and others.

The other segment includes coal, waste treatment plant, heavy engineering works, castings and others.

JAL is also involved in information technology (IT) and agri business. The company's IT services include IT infras tructure

management, software development and consultancy, multimedia services, content management, security and delivery,

multimedia based educational content development, agricultural content development and learning solution. The

company's agri business includes fertilizer, dairy, soya and mustard processing complex.

Key Metrics

The company recorded revenues of $3,154m in the fiscal year ending March 2012, an increase of 18.4% compared to

fiscal 2011. Its net income was $135m in fiscal 2012, compared to a net income of $402m in the preceding year.

Table 14: Jaiprakash Associates Limited: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 1,077.7 952.2 1,759.0 2,662.6 3,153.5

Net income (loss) 169.3 82.5 248.0 401.5 135.1

Total assets 5,183.7 6,202.3 11,540.8 15,245.2 16,922.5



Table 15: Jaiprakash Associates Limited: key financials (Rs.)

Rs. million 2008 2009 2010 2011 2012

Revenues 50,487.0 44,609.3 82,402.0 124,734.7 147,732.3

Net income (loss) 7,929.4 3,864.4 11,616.2 18,810.2 6,329.2

Total assets 242,839.0 290,554.8 540,646.2 714,186.4 792,762.4





Table 16: Jaiprakash Associates Limited: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 15.7% 8.7% 14.1% 15.1% 4.3%

Revenue growth 16.5% (11.6%) 84.7% 51.4% 18.4%

Asset growth 62.2% 19.6% 86.1% 32.1% 11.0%


Debt/asset ratio 70.6% 79.1% 83.6% 84.2% 81.8%

Return on assets 4.0% 1.4% 2.8% 3.0% 0.8%


Figure 15: Jaiprakash Associates Limited: revenues & profitability




Figure 16: Jaiprakash Associates Limited: asse ts & liabilities




Ansal Properties & Infrastructure Limited

Table 17: Ansal Properties & Infrastructure Limited: key facts

Head office: 115 Ansal Bhawan, 16 Kasturba Gandhi Marg, New Delhi 110 001, IND

Telephone: 91 11 2335 3550

Fax: 91 11 2373 8310

Website: www.ansalapi.com


Ticker: 500013, ANSALAPI

Stock exchange: Bombay, NSEI


Ansal Properties & Infrastructure (Ansal API) is an India-based realty and infrastructure group engaged in developing

real estate property in residential and commercial areas. The group is also engaged in the provision of facilities

maintenance services. It primarily operates in India.

The group is primarily involved in the business verticals such as integrated townships, condominiums, group housing,

malls, shopping complex, hotels, SEZs, IT parks and infrastructure, and utility services. The group primarily operates in

cities, including Greater Noida, Noida, Gurgaon, Lucknow, Meerut, Agra, Chandigarh, Mohali, Amritsar, Jalandhar,

Ludhiana, Jaipur, Jodhpur, Ajmer, Bhilwara, Sonepat, Panipat, Yamunanagar, Bhatinda, Jalandhar, Karnal, Kurukshetra,

Faridabad and Ghaziabad in India.

Ansal API's joint venture company, Faber Star Facilities Management, provides facilities management services and

healthcare facilities management in India. The group's overseas projects are in Iraq, Thailand, Russia and Bangladesh.

The group has strategic alliances with Wood Head International, Bose In ternational, Feng Zhan of Woodhams Meikle

Zhan Architects, CWA Architects, ACL Pte Ltd, Belt Collins International, Ktgy Inter Associatesn Bangkok, Dr. Martin

Hawtree of Hawtree Ltd, Bonsey Design Partnership, and Immortal The Design Station Pte Ltd.

Some of Ansal API's clients include Apple, Aviva, Big Bazar, Canara Bank, Standard Chartered Bank, United Airlines

and Walt Disney.

The group's subsidiaries include Delhi Towers Ltd, Capital Clubs Pvt Ltd, Ansal Plaza Mall Management Co, Star

Estates Management Ltd, Green Max Estate Pvt Ltd, Ansal Landmark Townships Pvt Ltd and Ansal Mittal Townships

Pvt Ltd, among others.

Key Metrics

The company recorded revenues of $227m in the fiscal year ending March 2012, a decrease of 17.5% compared to

fiscal 2011. Its net income was $1m in fiscal 2012, compared to a net income of $22m in the preceding year.



Table 18: Ansal Properties & Infrastructure Limited: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 247.2 166.2 189.8 275.5 227.3

Net income (loss) 43.4 6.9 13.7 21.7 1.1

Total assets 875.8 935.4 1,074.1 1,206.8 1,318.3

Total liabilities 578.8 637.7 768.4 835.8 942.8


Table 19: Ansal Properties & Infrastructure Limited: key financials (Rs.)

Rs. million 2008 2009 2010 2011 2012

Revenues 11,580.6 7,785.5 8,889.2 12,906.8 10,649.0

Net income (loss) 2,033.1 325.5 643.1 1,017.2 49.3

Total assets 41,029.4 43,819.6 50,318.7 56,534.3 61,755.6



Table 20: Ansal Properties & Infrastructure Limited: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 17.6% 4.2% 7.2% 7.9% 0.5%

Revenue growth 25.9% (32.8%) 14.2% 45.2% (17.5%)

Asset growth 69.5% 6.8% 14.8% 12.4% 9.2%


Debt/asset ratio 66.1% 68.2% 71.5% 69.3% 71.5%

Return on assets 6.2% 0.8% 1.4% 1.9% 0.1%




Figure 17: Ansal Properties & Infrastructure Limited: revenues & profitability


Figure 18: Ansal Properties & Infrastructure Limited: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 21: India size of population (million), 200812

Year Population (million) % Growth

2008 1,146.6 1.5%

2009 1,163.0 1.4%

2010 1,179.3 1.4%

2011 1,210.2 2.6%

2012 1,226.4 1.3%


Table 22: India gdp (constant 2000 prices, $ billion), 200812

Year Constant 2000 Prices, $ billion % Growth

2008 1,073.0 6.8%

2009 1,161.7 8.3%

2010 1,271.7 9.5%

2011 1,358.3 6.8%

2012 1,421.5 4.7%


Table 23: India gdp (current prices, $ billion), 200812

Year Current Prices, $ billion % Growth

2008 1,288.0 6.8%

2009 1,343.3 4.3%

2010 1,689.0 25.7%

2011 1,842.3 9.1%

2012 2,107.6 14.4%




Table 24: India inflation, 200812

Year Inflation Rate (%)

2008 8.3%

2009 10.9%

2010 12.0%

2011 8.9%

2012 9.3%


Table 25: India consumer price index (absolute), 200812

Year Consumer Price Index (2000 = 100)

2008 122.4

2009 135.7

2010 152.0

2011 165.5

2012 180.9


Table 26: India exchange rate, 200812

Year Exchange rate ($/Rs.) Exchange rate (/Rs.)

2008 43.8145 64.1115

2009 48.8500 67.9264

2010 45.9361 60.9708

2011 46.8466 65.1733

2012 53.6119 68.6802




APPENDIX

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