70

CHAPTER – III

PROFILE OF THE COMPANIES

The infrastructure companies in India also have been faring strongly

and have surpassed all expectations. A recent survey on the infrastructure

companies in India reveals that the sample of 22 companies, based on

consolidated revenues have been able to withstand the global meltdown. The

combined revenues of these 22 Indian infrastructure companies have surged

up by 32.3% in 2009, mostly driven by government initiatives. India is

emerging as a developing country, supported by some 97 companies in

infrastructure field.

India‟s leading stock exchange, has classified Equity scripts into

categories A, B1, B2, S, T, TS, & Z to provide a guidance to the investors.

The classification is on the basis of several factors like market capitalization,

trading volumes and numbers, track records, profits, dividends, shareholding

patterns, and some qualitative aspects.

GROUP "A" SHARES:

Group “A” Shares are referred to as "Cleaned Securities" or "specified

shares". The facility for carrying forward a transaction from one account

period to another is available for these shares. Group "A" shares represent

companies, with huge amount of capital, and equally a large scope for

71

investment. These shares are frequently traded and command higher price

earning multiples.

GROUP "B" SHARES:

Group “B” shares are referred to as, Non cleaned securities or non-

specified shares. For these groups facility of carrying forward is not

available.

Whenever a share is moved from Group "B" to Group "A" its market

price rises; likewise, when a share is shifted from Group "A" to Group "B",

its market price declines. There are some criteria and guide lines, laid down

by stock exchange, for shifting stocks from the non-specified list to the

specified list.

GROUP "Z" SHARES:

The 'Z' group was introduced by BSE in July 1999 and includes

companies which have failed to comply with its listing requirements and/or

have failed to resolve investor complaints and/or have not made the required

arrangements with both the depositories, viz., Central Depository Services

(I) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for

dematerialization of their securities.

GROUP “S” SHARES

“The Exchange has introduced a new segment named “BSE Indonext”

w.e.f. January 7, 2005. The “S” Group represents scripts forming part of the

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“BSE-Indonext” segment. “S” group consists of scripts from “B1” & “B2”

group on BSE and companies exclusively listed on regional stock exchanges

having capital of 3 crores to 30 crores. All trades in this segment are done

through BOLT system under S group.”

GROUP “T” SHARES

'T'' Also termed as the trade to trade group this category comprises of

shares which have to be settled in delivery for all buys and sells and square

off of bought and sold positions during the day is not permitted. This is a

part of the survelience from the BSE to counter any ackward unwarranted

movements in such scrips.

The researcher has listed among 97 (10+41+16+12+18) companies

under BSE Listing Flag/Group – A, B, Z, S and C.

TABLE 3.1

LIST OF INFRASTRUCTURE COMPANY IN INDIA-BSE LISTING

FLAG/GROUP – A

Rs. in Crore (2008-09)

S.No Company Name

BSE Listing

Flag/Group

Income

1) Larsen & Toubro Ltd. A 36473.05

2) Punj Lloyd Ltd. A 6972.57

3) Jaiprakash Associates Ltd. A 6496.89

4) I V R C L Infrastructures & Projects Ltd. A 5083.35

5) Nagarjuna Construction Co. Ltd. A 4221.43

6) Lanco Infratech Ltd. A 4097.66

7) Hindustan Construction Co. Ltd. A 3227.01

8) Alstom Projects India Ltd. A 2374.4

9) Aban Offshore Ltd. A 1229.61

10) I R B Infrastructure Developers Ltd. A 71.56

Source: Complied by researcher

73

The above table 3.1 shows that list of ten infrastructure companies in

India-BSE listing flag/group – A. After analyzing the details of all the above

companies, the researcher ranked 10 companies based on income criteria.

The Larsen & Toubro Ltd. had higher income and I R B Infrastructure Developers

Ltd. had least income during the year 2008-09.

TABLE 3.2

LIST OF INFRASTRUCTURE COMPANY IN INDIA-BSE LISTING FLAG – B

Rs. in Crore (2008-09)

S.No Company Name

BSE Listing

Flag/Group

Income

1. Simplex Infrastructures Ltd. B 4717.34

2. Gammon India Ltd. B 3820.85

3. B G R Energy Systems Ltd. B 1963.95

4. Engineers India Ltd. B 1756.71

5. B L Kashyap & Sons Ltd. B 1482.48

6. Maytas Infra Ltd. B 1411.60

7. Subhash Projects & Mktg. Ltd. B 1287.67

8. Ahluwalia Contracts (India) Ltd. B 1171.96

9. Unity Infraprojects Ltd. B 1166.14

10. Sadbhav Engineering Ltd. B 1074.19

11. Gayatri Projects Ltd. B 1011.00

12. Shriram E P C Ltd. B 924.84

13. Jindal Drilling & Inds. Ltd. B 783.95

14. Pratibha Industries Ltd. B 763.84

15. Sunil Hitech Engineers Ltd. B 604.00

16. C & C Constructions Ltd. B 544.91

17. Hindustan Dorr-Oliver Ltd. B 531.51

18. Techno Electric & Engg. Co. Ltd. B 517.17

19. Marg Ltd. B 487.96

20. U B Engineering Ltd. B 456.25

21. Tantia Constructions Ltd. B 451.39

22. Petron Engineering Construction Ltd. B 444.52

23. J Kumar Infraprojects Ltd. B 413.61

24. Supreme Infrastructure India Ltd. B 383.45

25. P B A Infrastructure Ltd. B 367.65

26. Consolidated Construction Consortium Ltd. B 366.16

27. M S K Projects (India) Ltd. B 358.93

28. Simplex Projects Ltd. B 294.83

29. Jaihind Projects Ltd. B 245.86

30. Atlanta Ltd. B 223.92

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31. Niraj Cement Structurals Ltd. B 142.87

32. Continental Construction Ltd. B 117.02

33. Kaushalya Infrastructure Devp. Corpn. Ltd. B 83.72

34. Mukand Engineers Ltd. B 56.55

35. Sika Interplant Systems Ltd. B 12.90

36. Orient Beverages Ltd. B 12.52

37. Ashram Online.Com Ltd. B 7.10

38. Banka (India) Ltd. B 3.68

39. Rajdarshan Industries Ltd. B 3.29

40. Rama Petrochemicals Ltd. B 3.21

41. Servotech Engineering Inds. Ltd. B 1.62

Source: Complied by researcher

The above table 3.2 referred that list of 41 infrastructure companies in

India-BSE listing flag/group – B. After analyzing the details of all the above

companies, the researcher ranked 41 companies based on income criteria.

The Simplex Infrastructures Ltd. had higher income and Servotech

Engineering Inds. Ltd. had least income during the year 2008-09.

TABLE 3.3

LIST OF INFRASTRUCTURE COMPANY IN INDIA-BSE LISTING FLAG – Z

Rs. in Crore (2008-09)

S.No Company Name

BSE Listing

Flag/Group

Income

1. Ircon International Ltd. Z 2801.25

2. K N D Engineering Technologies Ltd. Z 87.18

3. Tata Construction & Projects Ltd. Z 18.12

4. Raghava Estates Ltd. Z 16.36

5. A T V Projects India Ltd. Z 15.73

6. Duke Offshore Ltd. Z 6.47

7. Golden Tourist Resorts & Developer Ltd. Z 6.45

8. Exelon Infrastructure Ltd. Z 3.66

9. T M T (India) Ltd. Z 2.53

10. Shah Construction Co. Ltd. Z 0.61

11. U B E Industries Ltd. Z 0.26

12. A E C (India) Ltd. Z 0.05

13. Lalit Polymers & Electronics Ltd. Z 0.01

14. Typhoon Holdings Ltd. Z 0

15. Asean Industrial Structures Ltd. Z 0

16. Exxoteq Corporation Ltd. Z 0

Source: Complied by researcher

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The above table 3.3 referred that list of 16 infrastructure companies in

India-BSE listing flag/group – Z. After analyzing the details of all the above

companies, the researcher ranked 16 companies based on income criteria.

The Ircon International Ltd. had higher income and Lalit Polymers &

Electronics Ltd. had least income and Asean Industrial Structures Ltd. and

Exxoteq Corporation Ltd. had no income during the year 2008-09.

TABLE 3.4

LIST OF INFRASTRUCTURE COMPANY IN INDIA-BSE LISTING FLAG – S

Rs. in Crore (2008-09)

S.No Company Name

BSE Listing

Flag/Group

Income

1. Era Infra Engg. Ltd. S 2458.52

2. Patel Engineering Ltd. S 1596.93

3. J M C Projects (India) Ltd. S 1319.58

4. Madhucon Projects Ltd. S 1044.53

5. Shiv-Vani Oil & Gas Exploration Services Ltd. S 686.57

6. Valecha Engineering Ltd. S 616.37

9. Kalindee Rail Nirman (Engineers) Ltd. S 281.49

8. Stewarts & Lloyds Of India Ltd. S 96.1

9. Conart Engineers Ltd. S 28.94

10. Bhagheeratha Engineering Ltd. S 18.67

11. C C A P Ltd. S 17.88

12. Jog Engineering Ltd. S 1.64

Source: Complied by researcher

The above table 3.4 shows that list of 12 infrastructure companies in

India-BSE listing flag/group – S. After analyzing the details of all the above

companies, the researcher ranked 12 companies based on income criteria.

The Era Infra Engg. Ltd. had higher income and Jog Engineering Ltd. had

least income during the year 2008-09.

76

TABLE 3.5

LIST OF INFRASTRUCTURE COMPANY IN INDIA-BSE LISTING FLAG – T

Rs. in Crore (2008-09)

S.No Company Name

BSE Listing

Flag/Group

Income

1. I T D Cementation India Ltd. T 965.61

2. K N R Constructions Ltd. T 777.38

3. Dolphin Offshore Enterprises (India) Ltd. T 358.24

4. Roman Tarmat Ltd. T 154.22

5. Asian Oilfield Services Ltd. T 71.29

6. Gammon Infrastructure Projects Ltd. T 48.05

7. Saag R R Infra Ltd. T 36.63

8. Artson Engineering Ltd. T 34.83

9. Tirupati Sarjan Ltd. T 33.52

10. R J Shah & Co. Ltd. T 9.17

11. V S F Projects Ltd. T 8.55

12. Baffin Engineering Projects Ltd. T 7.5

13. B Nanji Enterprises Ltd. T 5.88

14. Maruti Infrastructure Ltd. T 2.49

15. Garnet Construction Ltd. T 0.73

16. Kedia Construction Co. Ltd. T 0.71

17. K M F Builders & Developers Ltd. T 0.13

18. Tivoli Construction Ltd. T 0.03

Source: Complied by researcher

The above table 3.5 reflects that list of 18 infrastructure companies in

India-BSE listing flag/group – T. After analyzing the details of all the above

companies, the researcher ranked 18 companies based on income criteria. I T

D Cementation India Ltd. had higher income and Tivoli Construction Ltd.

had least income during the year 2008-09.

After analyzing the details of all the companies, the researcher ranked

some 97 companies on the basis of income criteria. Among that the selected

eight companies, which have more than 10 years experience. The eight

companies details regarding their Grade, Group, Sector in which they are

dealing, Industry, Years of Experience and the income level are shown

clearly in the following table.

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TABLE 3.6

SELECTED COMPANIES PROFILE

Sl.

No

Company

Name

BSE

Listin

g Flag

Group Sector Industry Years

Income

Rs. in

Crore

1 Larsen and

Toubro Ltd. A L and T

Capital

Goods – Non

Electrical equipment

Engineering –

Turnkey

Services

>10

years 36473.05

2 Punj Lloyd Ltd. A Indian

private Realty

Construction –

Civil/Turnkey-

Large

>10

years 6972.57

3 Jaiprakash

Associates Ltd. A

Gaur

Jaiprakash Realty

Construction –

Civil/Turnkey

–Large

>10

years 6496.89

4

I V R C L

Infrastructures

and

Projects Ltd.

A Indian

Private Realty

Construction-

Civil/Turnkey-

Large

>10

years 5083.35

5

Simplex

Infrastructures

Ltd.

B Indian

private Realty

Construction-

Civil/Turnkey-

Large

>10

years 4717.34

6

Nagarjuna

Construction

Co. Ltd.

A NCC Realty

Construction-

Civil/Turnkey-

Large

>10

years 4221.43

7 Lanco Infratech

Ltd. A

Indian

Private

Realty

Engineering -

Light - General

- Large

>10

years 4097.66

8

Hindustan

Construction

Co. Ltd.

A Walchands Realty

Construction-

Civil/Turnkey-

Large

>10

years 3227.01

Source: Complied by researcher

From the above table 3.6, it is shows that all the eight companies

except „Simplex Infrastructure Ltd‟ are in „A‟ grade in BSE Listing Flag.

The selected companies are in Indian private Group and they have some

special name, like L and T, NCC, etc. They are dealing with capital goods

especially Construction-Civil / Turnkey - Large services. The selected

companies have more than 10 years of experience in their fields.

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The profile of each the eight companies are given below:

LARSEN AND TOUBRO LTD

The birth of Larsen and Toubro was happened in the year 1946 as a

private ltd company. Earlier it was a partnership firm founded by

Mr. Henning Holk Larsen with Mr.Soren Kristian Toubro. L and T turned on

to a public limited company in the year 1950. Company focused in the areas

of Engineering and Construction, Electrical and Electronics, Machinery and

Industrial Products and in IT and Technological Services.

L and T took part in Shipping and Cement industry also. During the

year 1981-82 the company acquired 2 bulk shipping carriers from Japan and

in the year 1983-84 started one cement plant with capacity of 1 MTPA at

Maharashtra. In the year 1997 a joint venture company was formed with

Deere Pvt Ltd to manufacture agricultural tractors namely L and T-John

Deere Pvt Ltd.,On April 1st 2003 the company transferred its Cement

business to Ultra Tech Cement company. L and T received a host of awards,

medals and trophies for its continuous efforts. Environmental Excellence

Gold award was given from Greentech Foundation in 2003-04 and 2004-05.

Engineering Export Promotion Council (EEPC) offered a trophy for high

exports. During the financial year 2004-05, the business world's survey on

India's Most Respected Companies ranked L and T the First in Infrastructure

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Sector. The Ministry of Power conferred the first prize in National Energy

Conservation for the year 2005.

In July 2005 the company approved the divestment of its stake in

L and T-John Deere Private Limited. In August 2005 the company entered

into a Memorandum of Understanding with Datar Switchgear Ltd (DSL) to

merge the company with L and T. As on October 2005 the company totally

quit from the packaging business by sale of its Glass Containers Business to

ACE Glass. In the year 2006 the company amalgamated two of its own

folds, the L and T Power Investments Pvt Ltd (LTPL) amalgamated with

India Infrastructure Developers Ltd (IIDL).

A Wall Street Journal survey featured L and T among Asia's 'Most

Admired Companies' and ranked the company No.1 for quality of products

and for overall reputation during the year 2006-07. In April 2007, L and T

and its associate Audco India Ltd (AIL) invested Rs 35 crore in Coimbatore

(TN) switchboard and valve unit and plans to invest Rs.60 crore over the

coming few years. Larsen and Toubro joins hands with Japan's Toshiba

Corporation and Mitsubishi Heavy Industries for setting up manufacturing

facilities for super-critical turbines and boilers used in coal-fired power

generation plants. The two joint ventures have an aggregate capital outlay of

about Rs 600 crore.

80

The company is well positioned to exploit the opportunities that come

from hydrocarbon, infrastructure, power, minerals and metals and other

industrial sectors. The Public Private Partnership model is going to be the

way forwarded for infrastructure projects in the country. L and T has already

committed as like that and looking ahead. L and T has commenced

shipbuilding at its Hazira Works and also scouting for a suitable site in India

to set up a world-class facility for shipbuilding and repair the same.

Company also concentrates on the Defence, Nuclear Power and Aerospace

sectors which show the potential and promises. L and T plans to expand its

presence in the sector of construction and electrification for the railways.

L and T is investing Rs.2,500 crore for expansion in Shipbuilding,

Manpower constraints and others. L and T has super-critical power plants,

ranging between 500 MW-1000 MW, for which the foundation was made in

March 2008 to add 4000 MW per annum capacity for super-critical boilers

and steam turbine generators.

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PUNJ LLOYD LTD

The above table 3.8 referred that General-Background Punj Lloyd Ltd.

Group, Sector, Industry, Chairman, Auditors, Secretary, Inc. Year, Inc. Date,

AGM Date, Financial Year, Book Closure, BSE Code, BSE Group, NSE

Symbol, ISIN Demat, Reuters, Bloomberg, Par Value(Rs), Tot.

Employees, NIC Activity, NIC Code and Listing.

Started operations with pipelines, followed by tanks and terminals,

refineries, power and civil infrastructure, the company has grown rapidly to

augment its portfolio to include a whole gamut of services ranging from

Upstream, Midstream to Downstream segments of the energy sector, to

petrochemicals, chemicals, biofuels, utilities and buildings. PLL is a

transnational company specialising in the energy and infrastructure sectors.

The Company provides integrated design, engineering, procurement,

construction and project management services. Its operations spread across

the Middle East, Africa, the Caspian, Asia Pacific and South Asia. PLL

holds an ISO 9001:2000, ISO 14001:1996 and OHSAS 18001:1999

certifications. The Company extends EPC services ranging from Oil and

Gas, Refineries, Civil Infrastructure, Thermal Power, Asset Management to

Telecom and Broadband.

82

During the year 1989, the company was renamed as Punj Lloyd

Private Limited and subsequently became Public Limited in 1992. Later, the

name was changed to the present name Punj Lloyd Limited. In the same year

PLL won its first overseas pipeline contract in Indonesia. A year back, the

company got its first Middle East contract for field development in 1993.

During the year 1999, the company forayed into first Road project,

Vadodara-Halol Tollway, India. PLL got the chance for entry into the

Caspian with KAM pipeline, Kazakshtan in the period of 2002. In 2004, the

company bagged EPC Tank contract in Asia Pacific, Bulk Liquid Terminal

of Singapore. PLL's first Thermal Power Plant, Jindal, India came to

existence in the year 2005. During the year 2006, PLL acquired the

Singapore-based Sembawang and Simon Carves, UK. The Company entered

into the strategic Joint Venture (JV) agreement with Swissport International

for ground and cargo handling, Dayim in Saudi Arabia for oil and gas and

infrastructure and KAEFER of Germany for insulation.

The Company launched new brand identity of its own. In the same

year 2006, PLL added the petrochemicals, engineering, buildings and urban

infrastructure projects like airports, jetties, Mass Rapid Transit, Light Rail

Transit System, hotels, resorts, to its portfolio. To address the opportunities

83

in the Integrated Drilling Services market, the company incorporated Punj

Lloyd Upstream Ltd., in April of the year 2007.

PLL made Joint venture agreement with the Pipavav Shipyard for

offshore and shipbuilding and also made JV with Ramprastha Group to forge

into Real Estate Development during the year 2007. Punj Lloyd has been

awarded a $400-million (INR 1119.2 crore) contract by Marina Bay Sands

Private Ltd through its wholly-owned subsidiary company Sembawang

Engineers and Constructors Private Ltd (Sembawang E and C) in February

2008 to construct and build the North Podium of Marina Bay Sands

integrated resort comprising the Casino theatres and retail arcade in

Singapore.

In June 2008, the Company has acquired a strategic 74% stake in

Technodyne International Limited, Eastleigh, UK for an undisclosed

amount. PLL has signed an agreement, to divest interests in its ISP division

to a JV formed between Shyam Group, the promoters of Shyam Telelink, a

nationwide unified service access licensee and Spanco Telesystems and

Solutions Limited (SPANCOe).

The Company has secured a Rs 649 crore contract for the Motor Spirit

Quality (MSQ) Upgradation Project of Indian Oil Corporation Limited at

Barauni Refinery, Bihar. PLL has signed a collaboration agreement with

84

Singapore Technologies Kinetics Ltd (STK), for the manufacture of defence

equipment during June, 2008. Punj Lloyd Limited is on the way to achieve

its vision of being among the top five global companies of the world in the

segments and markets where the company serves during the upcoming years.

JAIPRAKASJ ASSOCIATIONS LTD

Jaiprakash Associates Ltd is a diversified infrastructural industrial

conglomerate in India. The company is the leader in Engineering and

Construction of Hydropower projects in India. It is the only integrated

solution provider for Hydropower projects in the country with a track record

of strong project implementation in different capacities. The company is in

the business of heavy civil engineering construction, expressways, cement,

and real estate and hospitality.

The company is engaged in the business of integrated engineering

construction and operates at the locations of their clients and uses electric

energy for implementation of various projects undertaken by them. It is also

engaged in the business of manufacturing and marketing of cement and own

five star hotels at New Delhi, Mussoorie and Agra and a Golf Course with

associated recreational and residential facilities at Greater Noida as part of

its real estate business. Jaiprakash Associates Ltd, a part of the Jaypee Group

was incorporated in the year 1995 under the name Bela Cement Ltd., The

85

company was promoted by Jaiprakash Gaur, a well known leader in the

construction of multi-purpose river valley and hydropower projects.

In the year 2000, Jaypee Rewa Cement Plant and Jaypee Bela Cement

Plant were merged. In April 1, 2002, the cement division of Jaiprakash

Industries Ltd was hived off and merged with the company. The name of the

company was changed to Jaypee Cement Ltd. In the year 2003, Jaiprakash

Industries Ltd was amalgamated with the company with effect from April 1,

2002. The name of the company was changed from Jaypee Cement Ltd to

Jaiprakash Associates Ltd with effect from March 11, 2004. Also, the

subsidiaries of Jaiprakash Industries Ltd, namely Jaypee Hotels Ltd,

Jaiprakash Hydro-Power Ltd, Jaiprakash Power Ventures Ltd and Jaypee

Karcham Hydro Corporation Ltd became the subsidiaries of the company.

During the year 2003-04, the company completed the contracts such

as Contract for civil and hydro-mechanical works of 300 MW Baspa-II

Hydroelectric Project in Himachal Pradesh, Contract for construction of

Pressure Shafts and Underground Power House Complex of the Prestigious

1,500 MW Nathpa Jhakri Hydro-electric Project in Himachal Pradesh and

EPC Contract for 300 MW Chamera (stage II) Hydroelectric Project in

Himachal Pradesh. This project was commissioned ahead of schedule.

During the year 2004-05, the company completed the work of concrete

86

gravity Dam and 1,000 MW capacity surface Power House of Indira Sagar

(Narmada) Hydro-Electric Project in Madhya Pradesh.

IVRCL INFRAS and PROJECTS LTD

IVRCL Infrastructure and Projects Limited began its journey in the

year 1987. Strongly entrenched with proven domain knowledge, experience

and credentials, IVRCL operates infrastructure sectors includes Water and

Environment, Trasporation, Buildings and Power. Since inception, IVRCL

has put in place stringent policies to create a safe and healthy environment at

the project sites. The company's landmarks in quality consist of

ISO: 9001 - 2000 for Quality Management System, ISO: 14001 - 2004 for

Environmental Management System and ISO:18001-1999 for Occupational

Health and Safety Assessment Series.

The commercial operations of the company were started in the year

1990. In the same year, IVRCL established itself as a premier EPC and

LSTK Service Provider with front-end engineering capabilities. During the

year 1995, with the Initial Public Offering, IVRCL became a Listed

Company and has been maintaining a consistent dividend payment record.

The Company has forayed into Build-Operate- Transfer (BOT) projects

since 2001. In the year 2003, the contract for execution of the work of Water

Supply Scheme to Achampet was awarded to the company.

87

The Company made joint venture with SPCL during the period of

2003-04 for executing the road widening of AP2 package in NH5 of the

Prime Minister's Golden Quadrilateral Project of the National Highways

Authority of India (NHAI) in Andhra Pradesh and also the company has

entered into joint venture with M/s. UAN Raju Construction Company for

execution of the Tunnel work for laying BG line for Konkan Railway in the

state of Jammu and Kashmir.

IVRCL was awarded contract a for the value of 78.79 crore during the

year 2004 and bagged a project in Jammu and Kashmir. IVRCL has entered

into joint venture with SEW Constructions Ltd., and Prasad and Company

(Project Works) Limited during the period of 2004-05 to bid for and execute

large-scale projects of the Irrigation and CAD Dept., of Government of

Andhra Pradesh. The contract has been allotted to the consortium and the

company's share is 50% of the total works. In the same year the joint venture

has been formed between IVRCL and Sri Harsha Constructions to bid for

and execute the work of construction of MGR Link Line and earth works in

the formation of railway, road and bridgework and permanent way work for

National Thermal Power Corporation Ltd, SIPAT - Package - 3.

In the year 2005, the company has entered into a joint venture with

Spain-based Befesa, a holding company of Ina Bensa, to bid for the Rs 800

88

crore water desalination plant projects in Chennai on Build-Operate-

Transfer (BOT) basis. IVRCL secures a contract worth Rs.17.37 billions

from Government of Andhra Pradesh and signed pact for desalination plant

in Chennai.

During the year 2006, IVRCL Infrastructures secured the order worth

Rs.5578 million from the Irrigation and CAD Department, Government of

Andhra Pradesh for execution of 'Handri Niva Sujala Shravanthi (HNSS)

Phase-I project and also bagged orders worth Rs.388.16 Crore relating to

Telugu Ganga Project, Nandyal Circle. IVRCL is the owner of the National

Safety Council of Indian Safety Awards - 2006. In December 2007, IVRCL

Infrastructure and Projects has forayed into a share purchase agreement to

buy 100% shares of Alkor Petroo, unlisted oil and gas exploration and

Production Company, by the consideration of Rs.15 crore. The Company

received BAI Award 2007 - Builders' Association of India Pune Centre.

During the year 2008, IVRCL bagged irrigation works of value

Rs.478.48 crore from Narmada Valley Development Authority, Bhopal for

execution of 'Canal system of Indira Sagar Project Phase-III, Sanawad

District, Madhya Pradesh and in May of the same year bagged Rs.468 crore

AP Order and in June 2008, the company entered into the Oil and Gas sector

services. The company has bagged a contract worth of Rs.837.6 crore from

89

ONGC Petro additions. IVRCL Infrastructure and Projects Ltd was selected

as the winner of the 'Golden Peacock Award for Occupational Health and

Safety - 2008' by the award jury.

IVRCL is dedicated to improving the overall quality of life in the

country. It believes in making a holistic contribution to all the sectors

including water, roads, industrial structures, residential complexes, power

projects etc. For IVRCL, quality is the overpowering virtue around which

the whole system functions. Engineering and design capabilities are

IVRCL's proven strengths. Its turnkey projects in various sectors are

characterised by pioneering ideas and impressive execution capabilities.

SIMPLEX INFRA LTD

Simplex Infrastructures Limited (SIL) is one of the most exciting

global companies engaged in significant industrial and public infrastructure

development. The oldest company was incorporated on 19th

December 1924

under the control of H.P. Lancaster of the United Kingdom, and later the

company was taken over by the Kolkata-based Mundra family after the

Indian independence. SIL provides the services in the areas of Ground

Engineering, Power, Industrial, Urban Utilities, Building and Houses,

Roads, Railways, Bridges and Marine. The Company has diversified

geographical presence across India and overseas also.

90

During the year of inception itself, SIL introduced cast-in-situ driven

piles in Asia, at Kolkata. Then, the company started construction of major

Steel Plants during the year 1935 and built King George Docs, Mumbai in

1940. SIL had entered into the civil and structural construction of Industrial

Projects during the year 1952 and further forayed into Housing and Building

segment in the period of 1955. In 1958, the company was designed and

constructed the first ever RCC framed structure in Asia- the 17- storied

National Tower at Kolkata. During the year 1960, SIL made a foray into the

civil and structural construction of Thermal Power Plants and has been

associated with over 80% of Thermal Power Plants across India ranging

from 10 MW to 1000 MW Turbo Generators. Urban Utilities segment was

added to the company's activities in the year 1965, by the way of water

treatment plant at Howrah for HIT. After three years, in 1968, took up the

Marine Construction and is now associated with all the major ports in India.

The overseas presence was made by the company in the year 1982

itself, by opening the first overseas office for the execution of projects in

Sri Lanka and also in the same year of 1982, SIL made its foray into Roads,

Bridges and Railways segment. Started piling jobs in UAE, Abu Dhabi in

the year 1990 and in 1991, SIL developed indigenous technique for jointed

pre-cast concrete piles upto 150 meters depth at Ernakulam. The Company

91

successfully built an international class hotel at Tashkent, Uzbekistan during

the year 1992 and SIL went to public in the year of 1993. During the year

1998, the company entered into an innovative LIG/MIG sourcing on turnkey

basis. In addition, SIL made its foray into turnkey coding towards

construction in the identical period of 1998. The Company started the event

of civil and structural construction of Nuclear Power Plants since the year

2002. During 2003, SIL undertakes the civil and structural construction of

Hydro Power Plants and also established presence in the Middle East

Countries.

An ISO 9001:2000 certification was handed over to the company in

2004 and in 2005, the company changed its name from Simplex Concrete

Piles (India) Limited to Simplex Infrastructures Limited for a more holistic

representation of the company. In the same year, SIL secured contract for an

irrigation canal in Hyderabad. During the year 2006, the company secured

contract for doubling of railway tracks on South-Central Railway line in

Guntakal - Raichur railway, AP. It also obtained several piling and civil

contracts in Middle East Countries. In 2007, the company bagged

Rs.4.52 billion order in industrial structures segment, Rs.1.78 billion in

urban utilities, Rs.1.12 billion in piling and Rs.600 million in marine

structures segment. Also, SIL secured a contract from DP World for

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Rs.5,800 million for ICTT Kochi Phase 1A in November 2007. The Rig and

Real Estate Development business was added to the company's business in

the year 2008. SIL bagged new orders worth Rs.6.53 billion from different

sectors including an order from Ritz Carlton Hotel, Bangalore, for the

construction of a cement plant, sewerage system and thermal power plant in

March 2008.

NAGARJUNA CONSTRUCTION COMPANY LTD

Nagarjuna Construction Company Limited (NCC), a construction and

infrastructure enterprise, has started its journey on 22 March 1990. NCC is

the only construction company from India hailed as 'Best under a Billion' in

Asia Pacific and evolved from a mere contractor to a full-fledged

infrastructure solutions provider. The Company's business divisions are

categorized as Building and Housing, Transportation, Electrical, Water and

Environment, Irrigation, International, Power, Metals and Oil and Gas

Division. The Company has a cluster of regional offices in Delhi,

Ahmedabad, Bhubaneshwar, Kolkata, Mumbai, Bhopal, Lucknow,

Hyderabad, Chennai and Bangalore. In addition, NCC has presence in

international level through offices in Dubai (UAE) and Muscat (Sultanate of

Oman). Apart from the conventional construction and other methods, the

company adopts the NBS Cellular System, developed in collaboration with

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Byyging Uddheman AB of Sweden and NCC Pre Fab System, which is

developed in house.

The Property Division of the company was established in the year

1996, keeping pace with the times, its process features cutting-edge

construction technologies on par with international standards, followed by

the Transportation Division of the company which was started in the year

1998 with the objective to capture opportunities in the country's road

network. For undertaking the Design, Engineering, Supply, Erection, Testing

and Commissioning of EHV Transmission Lines, 33/11 KV Sub-stations

and Lines, and Distribution Systems, the company established the Electrical

Division in the same year 1998. A year after, in 1999, NCC started its Water

and Environment division, keeping in view of the increasing investments in

several projects by various Government agencies in water supply and

sewerage, effluent and underground waste water treatment plants across the

country. The division meticulously executes projects to the country's urban

and rural areas. CRISIL upgraded the rating of the company from FB+ to FA

in the year 2000. During the year 2004, NCC made Joint Venture with

M/s Somdatt Builders Ltd and was also awarded a contract worth Rs 993.80

million for strengthening and paving of shoulders of SH 24, Rajkot-Morvi

(Km 1/827 to Km 70/192) from the State Road Project Circle at

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Gandhinagar, Gujarat and it also kicked off its activity in the Irrigation

segment in the year 2004. The Company teamed up with South Korean

firm-Dealim Industrial Co Ltd in the same year 2004 to undertake some

projects.

The Company started its International operations by registering as a

local company in the Sultanate of Oman in May 2005. This Company is

known as NCC International LLC now. NCC Ltd joined hands with National

Highway Authority of India in the year 2006 for different projects. Also in

the same year of 2006, the company bagged order from Sultanate of Oman

and secured two new Orders worth of Rs 1180 million. The Power Division

of the company was started in the year 2007. The Division mainly works for

the development of Build-Operate- Transfer BOOT (Build, Own, Operate

and Transfer) and BOT projects and participates in tenders for turnkey

contracts of power plants as well as the execution of Balance of Plant (BOP)

on EPC basis and also in the Civil, Structural and Architectural works of

Thermal and Hydro Power plants. In the same year NCC started its Metals

Division and the Oil and Gas Division to cater to the infrastructure needs of

various Oil and Gas Companies in India. In December 2007, the company

secured a major contract from the Govt. of Oman for the prestigious

Wadi Adai Al Amerat Road project.

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NCC Ltd had bagged three new orders worth Rs 5.75 billion in June

2008. The first order, valued at Rs.2,846.4 million from the Steel Authority

of India Limited (SAIL), Burnpur, West Bengal for structural works for

Basic Oxygen Furnace (BOF). The second order also from SAIL, Burnpur,

West Bengal for structural, works for Re-Heating Furnace (RHF) and

Rolling Mills (RM) was valued at Rs.1,971.9 million and the third order,

valued at Rs 331.8 million from the Nizam Institute of Medical Sciences

(NIMS), Hyderabad for construction of University Campus, Heart Institute

and Medical University Buildings at Rangapur, dist. Nalgonda, Andhra

Pradesh. NCC had also secured four new orders in August 2008 aggregating

Rs.4.44 billion.

The Company in consortia is already involved in two small Greenfield

airport projects in Karnataka and a deep-water port in Machilipatnam in

Andhra Pradesh. The focus of the company is to tap the potential in regional

airports and non-metro (tier II cities). NCC Ltd, through its Infrastructure

Holdings, is in consortia with Maytas Infra, Hyderabad and VIE India

Projects and Holdings to implement the two airport projects (Gulbarga and

Shimoga) under public-private partnership. Nagarjuna Constructions is

planning to invest up to Rs 5 billion in the next three years in creating port

and airport infrastructure in the country.

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LANCO INFRATECH LIMITED

Lanco Infratech Limited (LIL), a construction and infrastructure

development company, was incorporated in 26 March of the year 1993 as

Lanco Constructions Limited at Andhra Pradesh. The company is engaged in

construction development sector including the execution of various civil

contract works and also had involvement in power sector, through its group

entities. The Divisions of the company are Roads, Airports and Seaports.

The Company was allotted the Kondapalli Project in the year 1996.

After a year, in 1997, Lanco signed the Power Purchase Agreement and

received the NEDCAP approval for setting up the Clarion Power Plant.

During the year 1998, the company set up the casting unit of Lanco

Kalahasti Castings Limited. LIL Commissioned the 368.144 MW plant of

Lanco Kondapalli in the year 2000 and received the NEDCAP approval for

set up 6 MW biomass based plant for Rithwik. As on 24th November 2000

the Company name was changed to Lanco Infratech Limited. LIL had

converted its LKPPL as a natural gas run plant in the year 2001. During the

year 2002, the company commissioned the Chitradurga Power Plant,

executed the PPA between Rithwik and APCC in relation to the Rithwik

Power Plant and also in the same year started the Rithwik Power Plant.

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In the year of 2002, the company's Lanco Kondapalli received the

Leadership and Excellence Award under Safety, Health and Environment

from CII for water conservation and reduction in effluent discharge. In the

year 2004, the company won the bid for setting up the 70 MW Budhil Hydro

Electric Project at Chamba, Himachal Pradesh. Lanco got the bid for the

development of an Information Technology Park at Manikonda in

Hyderabad and Vizag in the year 2005 and also in the same year, the

company executed the implementation agreement in relation to the Baner-III

Project and the IKUII Project. In 2006, the company registered its Rithwik

as a `Clean Development Mechanism'. During the year 2007, LIL entered

into a Memorandum of Understanding with Gulftainer Company Ltd, UAE

to co-operate on a variety of port and transportation projects.

During November 2007, the company received an order for Rs.672.4

million from Central Power Distribution Company of Andhra Pradesh for

supplying and erecting 33/11 KV Substations and 33/11 KV Lines in the

five districts of Mahabubnagar, Kurnool, Nalgonda, Medak and Ananthapur

in the state of Andhra Pradesh. Lanco Infratech received a Letter of

Acceptance (LOA) in December, 2007 for procurement of civil works on

Chabi-Shahpura-Umaria road project worth Rs.1.01 billion in the State of

Madhya Pradesh from Madhya Pradesh Road Development Corporation

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(MPRDC), Bhopal. As at February 2008, the company tied up with State

Bank of India (SBI) for part funding its Rs.13,480 million road projects in

Karnataka. LIL secured two super critical power projects during April, 2008

with an installed capacity of 3,300 MW in Uttar Pradesh. Lanco Infratech

consortium emerged as the winner for development of Rs.80 billion (USD 2

billion) Vizhinjam International Container Port Project in Kerala during

May, 2008 and also LANCO has tied-up with Pembinan Radzai Sdn. Bhd

(PRSB), Malaysia.

The Company plans to foray in the Nuclear power generation, for

which it made talks with European and US based engineering procurement

contractors in September year 2008. The operating capacity of the company

power projects stands at 518 MW and it is planning to increase the number

of power projects to generate a total capacity of 15,000 MW by 2015.

HINDUSTAN CONSTRUCTION COMPANY LIMITED

Hindustan Construction Company Limited (HCC) is a spearheading

force in engineering construction, both in India and the rest of the world.

Seth Walchand Hirachand founded the company and it was incorporated in

January 27 1926. HCC was entrusted with the construction of high value

projects across segments like transportation, power, marine projects, oil and

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gas pipeline constructions, irrigation and water supply, utilities and urban

infrastructure.

In Power Generation, HCC has constructed Hydroelectric, Nuclear,

Thermal Gas and Diesel based Power Projects. In the field of Water Supply

and Irrigation, HCC constructed major dams, barrages, aqueducts and

tunnels. In Transportation, the company concentrates road and rail bridges,

expressways and roads and marine construction. The company is ISO 9001,

ISO 14001 and OHSAS 18001 certified for its quality, environmental and

occupational health and safety management systems.

Walchand Tandur Cement Company Ltd., Hyderabad became a

subsidiary of the Company with effect from 11th

October, 1967. The Ganga

Bridge Construction Co. Ltd became subsidiary of the company in

30th March of the year 1976. During the year 1986, HCC entered into foreign

consultancy agreements with Pullman Power Products International

Corporation, U.S.A and Interform, Sweden for its Trombay chimney works.

The Company renewed the technical collaboration agreement with

Taisei Corporation of Japan in the year 1987 for execution of the

underground tunnel work for Metro railway project in Calcutta. It entered

into a foreign consultancy agreement with Geoconsult of Austria for the

Company's tender for construction of tunnel between Sewri and Futka Tank

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in Mumbai for BMC and with Bureau BBR International Ltd., Zurich in

Switzerland, for the company's tender for superstructure design and

construction of Godavari Bridge III in AP. The Company entered into a joint

venture with M/s. Impregilo-Italy in the year 1991 and submitted tender bid

for Nathpa Thakri hydel project in Himachal Pradesh. At the same time, the

contract for road construction works in the State of Malavi was terminated.

The Company signed a joint venture with Alfred McAlpine International

Ltd., U.K. in the year 1994. During the year 1997, the company signed a

Memorandum of Understanding with M/s. Bechtel Water Technology U.K.,

M/s. Hyundai Engineering and Construction group, Korea, Sam Sung

Corporation, Seoul, Korea and M/s. PATI SDN BHD, Malaysia for

participating in Water Supply Projects, Bridge Highway and Hydro-Electric

Projects respectively. During the year 1999, the company made numerous

joint ventures for its differentiated works. In the year 2000, HCC floated an

information technology subsidiary, under the name of NCC Infotech Ltd.,

The Company bagged a contract from Delhi Metro Rail Corporation

Ltd., New Delhi in the year 2001 for the construction of Delhi Metro Rail

Corridor, Package MC-1A. After a year, in 2003, HCC secured Rs.912.3

million contract from Maharashtra State Road Development Corporation Ltd

for construction of 4 laning of Satara-Kolhapur Maharashtra. During the

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year 2004, HCC got Rs 843 crore order for lifting water from Godavari

River using a single pipeline to fill the tanks at Bhimghanpur, Ramappa,

Salivagu, Nagaram, Dharmasagar and Ghanpur railway station in Andhra

Pradesh, and bagged an order from the National Highways Authority of

India to execute a project involving four-laning of a 77 km stretch of

highway in the Chandikhole-Paradip section in Orissa and was also awarded

an order of Rs 121 crore for the supply of spiral welded pipes to PSL Ltd., to

carry out the Godavari Lift Irrigation Scheme project for Government of

Andhra Pradesh.

The Company secured its first BOT Project in the year 2005; it was

worth of Rs 302 million from the office of an Executive Engineer, Integrated

Unit of PWD. In 2005, HCC was awarded 2 contracts of the Lucknow-

Muzaffarpur National Highway project. The contracts are jointly valued at

Rs.410.40 crore and was awarded by the National Highway Authority of

India. As at September 2006, HCC bagged two prestigious Hydel project

contracts from NHPC worth Rs.794 crore. It bagged the Chutak

Hydroelectric Project for Rs.410.54 crore and Nimo Bazgo Hydel project for

Rs.383.90 crore both in Jammu and Kashmir. The Company received

Golden Peacock National Quality Award for the Year 2006 in the category

for Private Large Service by IOD (Institute of Directors) in association with

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World Environment Foundation (WEF) and Golden Peacock Award for

Occupational Health and Safety - 2007 from IOD in association with WEF.

During December 2007, HCC received a prestigious contract worth

Rs.297.51 crore in a joint venture with Alpine Mayreder, Austria from Delhi

Metro Rail Corporation (DMRC).

HCC incorporated a Special Purpose Vehicle (SPV) company in

January of the year 2008 that is HCC Singapore Enterprises Private, as a

wholly owned subsidiary of the company for promoting its business and the

business of group companies. Further its wholly owned Subsidiary; HCC

Real Estate has also incorporated a Special Purpose Vehicle (SPV) company

that is Charosa Wineries for undertaking wine business. In May 2008, HCC

joined 18 other companies in an unprecedented statement to the 'Group of

Eight' countries, urging heads of state and government to take action on the

emerging global crisis in water and sanitation. During July of the year 2008,

HCC bagged the prestigious order from National Highway Authority of

India (NHAI) to construct the 4.4 km elevated highway at Badarpur on

National Highway 2 (Mathura Road) near Delhi on BOT basis.

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CONCLUSION

The analysis of these eight companies gives us the clear picture

regarding the contribution towards infrastructure sector of our country.

Infrastructure restructuring is one of the major elements of structural reforms

in transition economies because of its expected large economic and social

impact. The economic miracle of the high-growth Indian economies was

accompanied by substantial investment in infrastructure. Indian Government

initiatives to encourage private investments are the promotion of lending of

infrastructure projects and provision of infrastructure services.