corporate presentation - April 2010 - BF Utilities Ltdbfutilities.com/pdfs/Corporate Presentation.pdf · · 2014-07-14These forward looking statements are made as of the date of

Disclaimer

The presentation has been prepared for information purpose, it is not a solicitation of any offer to buy or sell

any security or instruments.

This presentation contains forward-looking statements. Forward-looking statements in this presentation are

subject to number of risks and uncertainties, some of which are beyond our control. Our actual

results, performance, prospectus or opportunities could differ materially from those expressed in or implied

by the forward looking statements.

BF Utilities Limited

by the forward looking statements.

These forward looking statements are made as of the date of this presentation. We undertake no obligation

to publicly update or revise any forward looking statements whether as a result of new information, future

events or otherwise, except as required by law.

“BF Utilities” refers to BF Utilities Limited and its subsidiaries and affiliates.

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BF Utilities :

3

BF Utilities : Overview

Overview of the Kalyani Group

Kalyani Group is one of the leading industrial houses in India, focusing on the following

sectors:

Engineering Steel

Automotive & Non-Automotive Components

Renewable Energy & Infrastructure and

Specialty Chemicals

Bharat Forge Limited, the flagship company of the group, is one of the leading commercial

forging companies globally, specializing in highly value-added and critical products (market


capitalization: $1.3 billion(1); Revenues: $1.1 billion)

A global forging conglomerate with a capacity of over 750,000 TPA spread across 12

locations and 6 countries

Listed on the Bombay Stock Exchange and National Stock Exchange in India

Foray into capital goods for the power sector to capture the India infrastructure growth

opportunity; has set up joint ventures with Alstom, Areva and National Thermal Power

Corporation

Mr. B N Kalyani (Promoter and Chairman), with over 27 years of experience, is the principal

driving force behind the growth and success of the Kalyani Group of Companies

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Notes:1. As of march 15,2010

BF Utilities: Snapshot of Key Projects


Bangalore Mysore Infrastructure Corridor (BMIC) Project Hubli - Dharwad Road Project

Sole manager to execute the BMIC project

One of the largest integrated infrastructure development

project in India

30km bypass road connecting the twin cities of Hubli and

Dharwad in North Karnataka

Operational since last 9 years with current toll collection of

BF Utilities Limited5

164 km tolled expressway connecting Bangalore and

Mysore including 3 Kms of Elevated road at Bangalore

Side

Development of infrastructure and amenities including

townships, with state-of-the-art connectivity

Nandi Economic Corridor Enterprise (“NECE”) is an SPV

promoted by NICE to execute a part of Section - A of the

BMIC project

62 km long toll road in Bangalore side

Interchanges and its Developments

Part of Township – 1 (1732 Acres out of 2775 Acres)

around Rs.220 million per annum

Notified as part of the NH4 (Pune-Bangalore), also part of

the Golden Quadrilateral Road Project of India

��

Wind power plants set up at Thoseghar in Satara District

Maharashtra with a total capacity of 18.33MW

Set-up to satiate the power requirements of the Kalyani

Group companies

Corporate Structure

BF Utilities*(Market Cap - $768MM)**

NICENHDL

(Hubli-DharwadBypass)

Wind Mill(18.33MW)

100% 74.5% 69.53%

64.8% 100% 100%


Part of Section A,Section B & C

NECE(Part of Section A)

Various Utilities

Road & Interchange

Development (62 km Toll Road)

Part of Township 1 Development

Expressway & Interchange

Development (99 km Toll Road)

Five Townships Development

(Incl. Part of Township 1)

Power

Water

Telecom

Bundled Utilities

(e.g. Bus / Truck

Terminals, Hospitals, etc.)

Notes:* Post de-merger of BF Investment Limited pursuant to a Scheme of Arrangement recently approved by the High Court** As of March 15, 2010

7

BMIC Overview

World Class Infrastructure Project

Nandi Infrastructure Corridor Enterprise Ltd. (NICE) is implementing the Bangalore Mysore Infrastructure Corridor (BMIC) Project, a

world class integrated infrastructure development project, which consists of :

A 164 km tolled expressway connecting Bangalore and Mysore with following road components :

o a 9.1 km Link road connecting Centre of Bangalore with the Peripheral Road

o a 41 km Peripheral Road around the City of Bangalore linking Hosur Road - NH-7 to Tumkur Road – NH-4

o a 111 km Expressway between Bangalore & Mysore

o a 3 km Elevated Road at Bangalore Side

5 New Township Developments along the Expressway between Bangalore and Mysore

Concomitant development at the interchanges along the Peripheral Road and Link Road

Rights to supply power, water, telecommunication services, sewage and waste water management etc.

Single planning authority – Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) – for the entire project


Concession period for toll road is 40 years including 10 years of construction period

Section Section -- CC Section Section -- BB Section Section -- AA

• Expressway: 36Km to 111 Kms• Interchange Developments• Township: Eco Tourism Center• Elevated Section of the Link Road at Bangalore Side

• Expressway: 12Km to 36 Kms• Interchange Developments• Townships: Commercial

Center, Heritage Center and Industrial Center

• Link Road: 9.1 kms• Peripheral Road: 41 kms• Expressway: 0Km to 12 Kms• Interchange Developments• Township: Corporate Center

Close Proximity to Bangalore

With Bangalore’s population approaching 8.5 million, it is believed that implementation of the BMIC Project

holds the key to addressing the infrastructure problems of the city.

Growth Patterns in Bangalore Growth Patterns in Bangalore BMIC Project Location OverviewBMIC Project Location OverviewDevanahalli

Towards Devanahalli

Hebbal

Brookfields


Mahadevapura

Whitefields

Sarjapura RoadProposed

Hi tech City

Hosur Road

Bannerghatta Road

Kanakapura Road

Mysore Road

CBD

Existing Development Corridors

Future Development Corridors

Section – A Infrastructure Development Nearly Complete

The project entails development of 62 km of Toll Road and one

Township near Bidadi

9.1km Link Road linking city centre to Outer Peripheral Road

41km Outer Peripheral Road linking Hosur Road to Tumkur

Road

12km Expressway up to Bidadi

Township – 1 (Corporate Center) near Bidadi with 2775 Acres

Project OverviewProject Overview


Township – 1 (Corporate Center) near Bidadi with 2775 Acres

Total Land for Section – A is 7,290 acres (Out of this NECE

Land is 6,173 Acres and NICE Land is 1,117 Acres)

Integral part of Bangalore urbanization infrastructure

Project StatusProject Status Almost 88% of toll road work is completed

Total 4,188 acres out of 7,290 acres of total land has been

acquired by GoK and transferred to the NICE / NECE

Balance expected shortly pending few documentation

requirements

Significant Value in Section B and C

The project entails development of 99 km of Toll road, four self-

sustained townships and 3 kms of Elevated road at Bangalore

Side

Expressway from Bidadi to Mysore

Development of up to 400MW of power plants with exclusive

right to transmit and distribute power to the BMIC

Development and maintenance of water / waste water and

Project OverviewProject Overview


sewage treatment facilities for BMIC

Exclusive right to use 155 million litres of water per day from the

Cauvery river for BMIC and the right to draw 85 million litres of

water per day from Bangalore Water Supply & Sewerage Board

Right to contract for telecommunication and broadcasting

services within the BMIC area

Project StatusProject Status Work on Section B and C expected to start in Oct / Dec 2010

Superior Toll Road Specifications and Planning

Superior specifications / planning with room for

revenue upside

Major expenses on the toll road already incurred

Stable income from toll linked with traffic growth

Current toll rates are at ~35% discount to

government sanctioned rates

Concession agreement permits further 10% rate

22.625.5 25.3 26.9 27.8 28.5

31.0 32.0

36.5

26.3

34.8

0

5

10

15

20

25

30

35

40

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Current Toll Collection (Rs. Million)Current Toll Collection (Rs. Million)


escalation every year; implying significant

revenue upside

Significant ancillary revenue streams

“OOH” advertising, bus and truck terminals, etc.

Potential revenue upside once connectivity to

airport is established and Expressway from Bidadi

to Mysore is completed.

Connectivity at IC 2/7 (Bannerghatta)

Restoration of Original Toll Rates

Commencement of Operations on Expressway

Triggers For Enhancing Toll CollectionTriggers For Enhancing Toll Collection

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oct

No

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Townships: Significant Value Creation Potential

Large contiguous and well connected land bank available in a Tier 1 city in India

Township to serve demographic needs of the area, provide decongested living experience

Infrastructure first, development later model

Unlike SEZs where the land is leased and not owned, land in this case is free hold with clear

and absolute title, free of all encumbrances

Planned multifaceted development


Quality and reliability of infrastructure

Vastly improved connectivity

Expansion of Bangalore on the peripheries

Zoning in place with Single Area Planning Authority (BMICAPA)

Plans to develop 200-300 million sq ft of land in the next 5 – 7 years

Eligible for a 10 year tax holiday under section 80I(A) (subject to MAT)

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Other Key Assets

Hubli-Dharwad Bypass Road

Project Project

OverviewOverview

KeyKey

FeaturesFeatures

30km bypass road connecting the twin cities of

Hubli and Dharwad in North Karnataka to

avoid city traffic and congestion

Located right in the middle of the Pune-

Bangalore stretch (835km) of the NH4

Already completed and operational since last 9

years with current toll collection of around

Rs.220 million per annum

Traffic growth at 11.5% CAGR, toll collection 4

3

2

1

Dharwad End Toll PlazaDharwad Goa

Crossing End Toll Plaza

Tarihal CrossingToll Plaza

Kalghatgi Crossing


26 years of concession period including 1 year construction for Phase I and 2.5 years for

Phase II

Date of Signing of BOT Concession Agreement: 05-Feb-1998

Date of Commencement: 06-May-1998

End of Concession Period: 05-May-2024

ConcessionConcession

AgreementAgreement

Traffic growth at 11.5% CAGR, toll collection

growth at 14.2% CAGR for past 5 years

Notified as part of the NH4 (Pune-Bangalore)

which is part of Golden Quadrilateral Road

Project of India

Toll rate escalation at 10% p.a. as compared to

current projects at inflation rate

6

5

Kalghatgi CrossingToll Plaza

AyodhyanagarCrossing Toll Plaza

Hubli EndToll Plaza

Wind Energy Farm

18.33 MW wind farm spread over an expanse of 300

acres at Thosegar in Satara district, Maharashtra

Power generated utilized by Bharat Forge Ltd. at

its Pune plant

Consists of 51 wind energy generators (WEGs) of

230KW and 11 WEGs of 600KW

Out of the total capacity, 14.65MW of eligible


Out of the total capacity, 14.65MW of eligible

capacity has availed

carbon credits benefits

Wind farm has been generating power at a plant load

factor of ~25% which is one of the highest in the

state

Has received several industry awards and

accreditations

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Appendix

BF Utilities: Overview of Toll Road Assets

Toll Road AssetsToll Road Assets

Section Kms Current Status Company

Link Road 9.1 Completed NECE

Peripheral Road 41.0 Nearly completed NECE

Expressway till Bidadi 12.0 Under construction NECE


Expressway till Bidadi 12.0 Under construction NECE

Expressway from Bidadi to Mysore(incl. elevated road)

102.1 To start in Oct / Dec 2010 NICE

Hubli Dharwad Bypass Road 30.0 Operational NHDL

Total 194.2

NECE Overview


NECE Location Map


NECE Toll Road Specifications and Planning

Cost/Km is high compared to a typical highway project due to

International quality standards followed for the road construction; and

Total length of the road Total length of the road –– 62km; total project cost 62km; total project cost –– Rs 20.4 billion.Rs 20.4 billion.


The Resettlement & Rehabilitation (R&R) package costs to build quality infrastructure

Old House New House Ruined Old Temple New Temple

NECE Toll Rates Summary

Government Sanctioned Rates (As per Toll Agreement, for the Year 2010)Government Sanctioned Rates (As per Toll Agreement, for the Year 2010)

Section km Car Bus Truck LCV MAV 2W

Hosur Road-Bannerghata Road 7.9 25 67 44 26 47 10

Bannerghata Road-Kanakapura Road 6.8 21 58 37 22 40 9

Kanakapura Road - Mysore Road 8.2 26 70 45 27 49 10

Mysore Road-Magadi Road 9.5 30 81 52 31 57 12

Magadi Road-Tumkur Road 7.5 23 63 41 25 45 9

Mysore Road -Tumkur Road 17.0 53 144 93 56 102 21


Section km Car Bus Truck LCV MAV 2W

Hosur Road-Bannerghata Road 7.9 15 44 29 17 31 6

Bannerghata Road-Kanakapura Road 6.8 13 38 25 15 27 5

Kanakapura Road - Mysore Road 8.2 16 46 31 18 33 6

Mysore Road-Magadi Road 9.5 19 53 35 21 38 7

Magadi Road-Tumkur Road 7.5 15 42 28 16 30 6

Mysore Road -Tumkur Road 17.0 33 95 63 37 67 13

NECE Current ChargesNECE Current Charges

Actual Photos of BMIC Project


24

Thank You

Documents

corporate presentation - April 2010 - BF Utilities Ltdbfutilities.com/pdfs/Corporate Presentation.pdf · · 2014-07-14These forward looking statements are made as of the date of