LANCO INFRATECH LIMITED

A Walk-through the Lanco Business…..

Development of Society through Entrepreneurship

Most Admired Integrated Infrastructure Enterprise

LANCO INFRATECH LIMITED

OUR MISSION

OUR VISION

IntegrityIHumility&RespectIOrganization before SelfIAchievement DriveIPositive AttitudeIAccountablityITeamworkIInnovation

INTEGRITY HUMILITY & RESPECT ORGANIZATION BEFORE SELF

INNOVATION

ACHIEVEMENT DRIVE

POSITIVE ATTITUDE ACCOUNTABLITY TEAMWORK

LANCO VALUES

5

CORPORATE STRUCTURE

Construction & EPC Power Infrastructure Property Development

• Executed projects worth US$1.3bn over last 3 years (FY07 - FY09)

• Order book of US$ 4.45 bn

• Capacity under operation c. 1,349 MW

• Capacity under construction and Development c. 7,962 MW

• One of the largest player in power trading with 12.4% market share

• Developing c. 163 km of National Highways in Karnataka

• Bidding for constructing and operating Airports, Metro Rail Transport Systems and renovation, modernization & operation of roads, ports and redevelopment projects

• 4mn sq ft under development in Hyderabad, India

• Developing Lanco Hills, mixed used space of high rise residential structures, IT SEZ office space, shopping malls and hotels

Division of Lanco Infratech

Special Purpose Vehicles

6

ChitradurgaKondapalli - I

Aban power

Amarkantak – I Amarkantak IIAmarkantak – III & IV

Kondapalli IIKondapalli III

Udupi

Teesta

Lanco Uttaranchal

Anpara

Babandh

Lanco Hills

Plants under construction

Plants under operation

Plants under construction

Plants under operation

Plants under construction

Plants under operation

Property development

Road development

Vamshi - I

Vamshi - IIVamshi Industrial

Lanco Green

81 km Bangalore – Hoskote – Mudbagal82 km Neelamangla – Devihalli

Tamil Nadu Wind

Coal Based

Hydro

Gas

Wind

Registered office

Corporate Office

Hyderabad

Gurgaon

Coal mine

Plants under development

Vidarbha

Plants under operation

LOCATIONS

7

Fuel (Coal mining) Construction and EPC Generation and O&M Trading

• Captive coal mine allocated by Govt. of India to Lanco and five others

• Coal to be used for portion of needs of the Orissa based 1,320 MW Babandh power plant

• Completed projects with capacity of 1,354 MW and 6,566 MW projects under development

• Strong engineering capability and resources spanning feasibility studies, front-end design and complete detail design with over 10 years of experience in design and development of Power Projects

• Handles global suppliers selection and sourcing of diverse materials like high-pressure fabricated equipment, skids, electrical and instrumentation systems

• Operating projects with capacity of 1,349 MW and 7,962 MW projects under implementation and development

• Generation activities include conventional and non-conventional sources of energy like coal, gas, hydro and wind

• Largest private sector player in Indian power trading market with approx. 12% market share

• Traded 2,841mm units in year ended March 31, 2009

• Bought 5% stake in the Indian Energy Exchange floated by Financial Technologies Ltd and Power Trading Corporation

Transmission and Distribution

• Strategy includes possible expansion into transmission and distribution

INTEGRATED BUSINESS

CHAIRMANVICE CHAIRMANMANAGING DIRECTOR

Business President EPC &

C

Business President Power

[Domestic]

CEO Solar Business President

Energy Trading

CEO Infra-structure

Business President Power [Inter-national]

•LEGAL•AUDIT•INSURANCE•PROCUREMENT •CSR•FAMILY PROTOCOL

•CORPORATE STRATEGY •HUMAN RESOURCES

•FINANCE • ACCOUNTS•PUBLIC RELATIONS•CORPORATE AFFAIRS

•CEO – THERMAL 1•CEO – THERMAL 2•CEO – HYDRO•FUELS/MINERALS & COAL

•CEO – EPC•CEO – CONSTRUCTION

•COO – ROADS•COO – TRANSMISSION•COO - DISTRIBUTION

•CEO – INTERNATIONAL POWER BUSINESS

Proposed Corporate Structure – Business Verticals

CORPORATE STRUCTURE - SHARED SERVICES

LEADERSHIP DEVELOPMENT

THROUGH

COMPETENCY BASED

FRAMEWORK

Deepak Bharara

LEADERSHIP

An Art to motivate a group of people towards achieving a

common goal

Leaders born or made?

A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent.

The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

And shouts down to the assembled group below… WRONG WAY!!

A STORY……

LEADERSHIP ROLE IS TO AVOID MIS-ALIGNMENT

LEADERSHIP IS ALL ABOUT GOAL ALIGNMENTAND

ACHIEVING THE ULTIMATE VISION!

CURRENT SCENARIOMULTI POLAR WORLD & INPUTS FOR BUSINESS SUCCESS

MPW is characterized by increased economic interdependence

Capital – Direct Investment/Portfolio Investment

Talent – Favorable Demographics spurring rapid growth

Resources – Increasingly intense competition for energy,

commodities & raw material

New Consumer – Rapid income growth creating up to a

billion new market

Innovation – New cluster of innovation & specialization

EXTRAORDINARY CAPABILITIES REQUIRED – ON THE PATH OF HIGH PERFORMANCE

Managing a Broad range of risks comfortably

Mastering the art of Improvisation

Keeping in tune with the importance of culture & localization

Market focus & position - where & when to compete

Building Distinct capabilities – USP

Performance Anatomy- common mindsets relating to culture, leadership &

workforce

Gaining access to Talent

Managing Regulatory & geopolitical risks

TALENT BUILDING– A BIG CHALLENGE

The Market for Talent has gone Global: Workforces in the emerging

world are already four times larger than those in the West and are

expected to be five times larger by 2020

The New Talent, generation Y is increasingly talented, educated,

skilled & having high expectations. But despite an ostensible

abundance of talent, today the leaders… find it difficult to engage &

retain them

Talent is the biggest challenge – The role of leaders is to engage &

channelize the individual potential & also

Need to expand & tap Regional, National & Global Talent Pools

TODAY’S CHALLENGE – ATTRACT TALENT & DEVLOP LEADERSHIP PIPELINE WITH……

Leaders who can take a Holistic Approach

Leaders who can build Employer Brand – to Compete the best

Leaders to encourage & create Innovation Mind Set

Build capability to Manage risks & uncertainty

Leaders with global mindset & local focus

Leaders to provide opportunity for Advancement

Leaders must show sensitivity to other’s cultures

Learn from the Challengers – improvising capabilities

Source Talent outside normal Channels – Diversify Sources

Leadership development refers to any activity that enhances the quality of leadership within an individual or organization

Why is Leadership Development vital?

Growth in scale Global exposure Acute talent crunch Changing market scenario High performance demanded Multiple roles performed

LEADERSHIP DEVELOPMENT

LEADERSHIP DEVELOPMENT MODEL

LEADERSHIP DEVELOPMENT BASED ON CBF

What is a Competency?

Integrated knowledge, skills, judgment, and attributes that people need to

perform a job effectively

CHARACTERISTICS BEHAVIOUR PERFORMANCE RESULTS

COMPETENCY PROFILING

Benchmark of Ideal Performance to excel in a role Competencies can be rated as critical, core or preferred Provides the individual with a map or indication of the behaviors that will

be valued, recognized and rewarded

LANCO - LEO FRAMEWORK

PARAMETERS FOR ASSESSING EMPLOYEES AT SENIOR LEVELS (ED & ABOVE) at LANCO1 2 3 4 5 6

LEADERSHIP Rating ENTREPRENEURSHIP Rating OWNERSHIP Rating DOMAIN

EXPERTISE Rating VALUE SYSTEM Rating INTELLIGENT

QUOTIENT Rating TOTAL POINTS

Enthusiastic Communicator

Visionary Organization before self Integrity

Ability to Understand quickly

Energy/ Enthusiasm

Tactful Dedicated Humility & Respect

Sharp & Smart

Empathy Risk Taker High level ofCommitment

Customer Focus

Logical Thinking

Inspirer/ Motivator Networking Goes beyond

the call of dutyPositive Attitude

High Analytical Skills

Setting Clear Direction Decisive Persevering Account-

ability

Change Agent Innovative Achievement Drive

Learning & Develop-ment

Team Developer

Adaptive toCircumstances Result Oriented Cultural

Diversity

Initiative Strategic

Open-minded Business Acumen

Dealing with Ambiguity

Negotiation & Persuasion

TOTAL

BENCHMARKS FOR EACH CADRE AT SENIOR LEVELS ON EACH PARAMETER (ED & ABOVE)1 2 3 4 5 6

LEADERSHIP ENTREPRENEURSHIP OWNERSHIP DOMAIN

EXPERTISEVALUE

SYSTEMINTELLIGENT

QUOTIENT AVERAGE

CEO 9 9 9 9 9 9 NOT < 9

COO 8 8 9 9 9 8 NOT < 8

DIRECTOR 7.5 7.5 8.5 9 9 8 NOT < 7.5

EXECUTIVE DIRECTOR 7 7 8.5 9 9 8 NOT < 7

PRESENT PERFORMANCE Rating must be minimum “EXCELLENT”

BEHAVIORAL COMPETENCIES- A SAMPLE

Communication

Global Awareness

Business Insight

Strategic Orientation

Leading / Empowering / Developing People

Teamwork & Interpersonal Influence

Stakeholder Focus

Execution and Results

Behavioral Competencies - SAMPLE

Managing Performance

Personal Effectiveness

Conceptual / Cognitive

Problem Solving

Social Awareness

Decision Making

Networking

Entrepreneurship

BEHAVIORAL COMPETENCIES- A SAMPLE

Technical Competencies – SAMPLE

Project Management

Commercial Contract

Engineering Design

Asset Management

Quality Control

Regulatory Knowledge

Competitor Analysis

Planning

TECHNICAL COMPETENCIES- A SAMPLE

Functional Competencies - SAMPLE Finance

Human Resource

Procurement

Media Management

Legal & Secretarial

Information Technology & Systems

Management Assurance Group

Facilities Management

FUNCTIONAL COMPETENCIES- A SAMPLE

LEVELS OF COMPETENCY

Normally the competencies are measured on scale of 3, 4 & 5

Level 4 – Highest of the order

Level 1 – Lowest of the order

For Example – Global Awareness Competency

Level 1 – Aware of Global Factor Affecting Sector

Level 2 – Leverages Resources Across Borders

Level 3 – Appreciate different View Points /Drivers

Level 4 – Enhanced Organization Capabilities based on Global Opportunities

COMPETENCY ASSESSMENT

Once the benchmark of critical and preferred competencies is established for the

role, the employee and the manager can assess the employee’s level of proficiency

for each competency.

Techniques:

Surveys

Interviews

Feedback like 360 degree

Performance Tests

PDD (Professional Dialogue Discussion)

Development/Assessment Centre's

PDCA - APPROACH

PLAN Identification of Competencies where Gap has to be fulfilled Development of a Competency Development Strategy

a. Prioritizing the competencies b. Identifying the tools c. Plan d. Budget and Resources

Development of a Competency Development Calendar

DO Carrying out the development programme Capturing the feedback from multiple sources

PDCA - Approach

ACT Implement improvement actions

CHECK Analyze feedback Competency related goals Identify improvement areas Identify actions to be taken

PDCA - APPROACH

Job Analysis

Predefine competencies

Behavioral classification

Assessment techniques

Simulations

Observations

Observers

Recording Behavior

Reports

Data Integration

ASSESSMENT CENTRES- TO MEET THE FOLLOWING CRITERIA:

SMART & STRETCHED GOALS- TO UNLEASH POTENTIAL & PERFORMANCE MAPPING

DEVELOPMENT & ASSESSMENT CENTRE - FOR POTENTIAL MAPPING

Multi-exercise programme designed to identify the potential of personnel

In Basket Exercise

Group Simulations

Behavioral Competencies Interview

Individual Case Analysis

Role Play

Thomas PPA System

Emotional Intelligence EQ

Deep-Pro

Future Pro

Take Action

Utility Pro

Utility Player

Future Utility

ConsistentStar

Future Star

Rough Diamond

LOW

HIGH POTENTIAL - PERFORMANCE / POTENTIAL MATRIX

HIGH

GAP ANALYSIS & VALIDATION

Helps to understand gaps in performance

Once the skill gaps have been identified, strategies for closing

the gaps can be determined

Strategies include training, job role reassignment (transfers,

portfolio changes), allocation of new resources, improvement

of rewards and incentives, goal setting, or termination (if the

fit can not be corrected by other means)

INDIVIDUAL DEVELOPMENT PLANS (IDP)

An Individual Development Plan (IDP) is a formal document that identifies an

individual's learning and developmental goals. It contains training, education, and

development activities (formal and informal) to acquire the competencies needed to

meet IDP goals

Objective of IDP:

Identify and assess future developmental needs in required competency areas

Provide structured learning experiences linked to organizational needs, goals, and

job requirements.

Establish an agreed-upon set of learning objectives and developmental activities as part

of a formal career development program

SOURCES OF INPUTS FOR IDP

Competency Analysis

Career Development Process (PDD)

Corporate Strategies

Competency Dictionary

Workforce/Manpower Planning

Training Needs Identification

Performance/Potential Reviews…

DEVELOPMENT METHODS

E learning Modules

Competency Development Assignments

Mentoring

Knowledge up gradation & sharing program – P to P learning

Internal Training Program workshops

External Training Program Workshops

Management Development Program – Certifications

Higher Studies

Knowledge Management

EVALUATION PROCESS

Relevance of the program

Content of Modules

Delivery by the Trainers

Duration

Clarity provided for the doubts

Actual Improvement in the competency level of the individual

Participation level

Group Size & Attendance

MEASUREMENT TOOLS

Strategic Coverage Ratio

Organizational Competency Index

Core competency Index

Value Conforming Index

Efficacy – 360 degree feedback

Competency coverage - Numbers

% of employees with specified Mentor/Coach

E learning assignment given & completed

Leadership Index

NEXT STEP- REVISITING GOALS & RE-ALIGNMENT