Indo-Myanmar-China-Bangladesh-ICWA-5DECEMBER

1

KEC International LimitedBMIC Corridor-Hope and Hard Work

Pankaj TandonKEC International Ltd

18 Nov 2013 KEC International Limited

2KEC International Limited

KEC – An Indian Multinational Infrastructure EPC Major

MULTI-LOCATONAL MANUFACTURING

8 Manufacturing facilities spread across 3 countries

Manufactures Towers, Cables, Poles and Hardware

EPC MAJOR

1.3 billion dollar enterprise

Executing 100+ projects

Over 6 decades of experience

GLOBAL PRESENCE

Spread across 5 continents

Footprints in 50 Countries

Currently projects in 30 countries

60% sales from outside India

GLOBAL WORKFORCE

5,000+ employees

30 Countries

23% non Indians

20 nationalities

BUSINESS PORTFOLIO

Interest in 7 businesses

Global leader in Power Transmission EPC

SALES & ORDER BOOK SIZE

Rs 7,000 cr. (US 1.2bn) sales

Rs 10,200 cr. (US 1.7bn) order book

Doubled sales in last 4 years

KEC International Limited

Business Portfolio

Power Transmission

Power Systems

Cables WaterTelecom Renewable

•EPC Contractor

•Tower manufacturing

•Pole manufacturing

•Hardware

•Sub-stations

•Cabling, EBoP

•Distribution network

•Power Cables:

LT/HT/EHV

•Telecom Cables: Optic fiber & Jelly filled

•Tower manufacturing

•EPC Contractor

•OPGW stringing

•Civil, track laying tunnels, bridges

•Electrification

•Signaling

•Solar

• Wind

•West water treatment

•Water resource management

Railways

Interest in 7 businesses: Basic needs for economic development of any country

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KEC International Limited 4

EPC Expertise and Reputation

Successfully executed projects in all kinds of difficult terrains and hostile climatic conditions

Simultaneously handled multiple large size projects across geographies

Transmission Project Oman

USD 110mnDec 2012

Tower Supply ProjectCanada

USD 125 mnNov 2010

Substation Project Kazakhstan

USD 157 mnDec 2010

Deserts UAE, Libya

MountainsSaudi, India, UAE

Seas/RiversUAE, Egypt, Nigeria

SnowfieldsAlgeria, Kazakh, India

-40o to +50o

Kazakh, UAEDust Storms

Our store in Middle EastGorges

AfghanistanDense Forests

Kenya, India

Expertise in managing cross country projects across globe spanning the length of more than 10000km simultaneously


BCIM ECONOMIC CORRIDOR:


Myanmar- The Golden Opportunity Land

1223

1354

63.7

150

Population 2012 in Mn: The Economist

Strategically Located between two Asian Giants India & China

>100000 MW Hydro Power Potential 92 Potential Large Hydro Power Plants Proven Gas Reserves of 11.8 Trillion cft


Myanmar-Trade-A snapshot

47%

16%

13%

6%

18%

Thailand China India Japan Others

23%

39%

3%

13%

22%

Thailand China India singapore Other

Myanmar Export Distribution Myanmar Import Distribution

India’s share not significant


Is Connectivity fueling Trade?

Thailand China India Japan Others

4.55

1.55 1.260.58

1.74

Export (Total $ 9.69 bn 2012*)

Export Volumes Thailand China Singpore India Other

3.56

6.03

2.01

0.46

3.40

Import Volumes

Import (Total $ 15.46 bn 2012)

77

38

34

21

9

87

7 6 3

Flights per week (Indian High Commission-Yangon)Thailand Singapore China Malaysia Taiwan Vietnam India Qatar Korea Japan

Connectivity is Integral to Trade & Business Relations

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KEC International Limited

18 Nov 2013 KEC International Limited

Item Description India Bangladesh Myanmar China Thailand

GDP (USD) 1.758 Trillion (2013 Est)

140.175 Bn (2013 Est)

59.42 Bn (2013 est)

8.939 Trillion (2013 est) 365.6 bn (2012)

GDP Per capita(USD) 1414 933 915 6569 5474

Ease of Doing Business (WB 2013) 134/189 130/189 182/189 96/189 18/189

Ranking on corruption perception 94/175 136/175 157/175 80/175 (2013) 102/175

Population (in Mn) 1222 150 (Mar-13 Est)

54(2011 Est)

1350 (2012 Est)

65.92 (2010 Census)

Population Density (per km2) /RankWorld Av:53

390(31/243)(India Population

Clock)

1034 (12/243)(Official est July 12)

79 (123/243)UN July 2013

Estimate

141(43/243)Official est (Dec

2012)

128 (89/243) (2010 Census)

Ranking by Population 2 8 24 1 20

Power Generation 236 GW (as on 31.03.2012) 10.2 GW (Nov-13) 3.37 GW 874 GW 19.78 GW

(2012)

Median Age 26.6 (2010 est) 23.8 (2010 Est) 27.1(2010 est) 35.8(2010 est) 34.7(2010 Est)

Power Consumption (kWH/year)-2011 Est World Bank data

684 259 110 3298 2316

HDI (2013 Report UNDP) 136 146 149 101 103

Key Indicators: Challenges? Opportunities!


Key Indicators: Challenges? Opportunities! Item Description India Bangladesh Myanmar China Thailand

Tele Density 70% 70% <10% 44%

Internet Penetration % /Rank

12.6%(164/212)

6.3%(181/212)

1.1%(209/212)

42.3% (102/212)

26.5%(132/212)

Literacy Primary education(Age 15 and above who can read and Write )

74%(Age 7 & Above

who can read and write 2011 Census)

78.8% (2012 Est)CIA World Fact Book

89.9% (CIA World Fact Book 2006 Est)

95.1% (2010 Est) CIA World

Fact Book

92.6% (2000 Census)

English Speaking (% of Population) 10.35%

18%(Euro Monitor

International Report 2009)

<1% 0.83% 27% (Crystal -2003)

Un Employment Rate 9.9% (2013 July) 5% (2009) 4.9% (2009) 4.1 (2010) 0.56% (2013 Jan)

People Below Poverty Line

29.8% (2010)Word Bank Report

Nov 2012

26% (2010) Word Bank Report Nov

2012

29.8% (2013 Est)Ministry of

Information & Technology, Myanmar

13.4%(2011)CIA, World Fact

Book (July 2012)

8.1% (2009 est)

Motor Vehicle Per 1000(excl Two Wheeler)

18(2009) 3(2010) 7 (2010) 85 (2012) 210 (2012)

Road Kms/1000 Person

2 Kms Per 1000 Persons /Against 11 Km of SEA Average

Urban Population 31.3% (2011) 28.4% (2011) 32.6% (2011) 50.6%(2011) 34.1%(2011)


Opportunity Myanmar: A dipstick• Access to Electricity<30%

• Total Installed capacity (MEPE-July 2013) : 3896 MW– Local Consumption-3375 MW– For Export to Neighboring Countries-522 MW

• Hydro Power Potential>100000 MW– 92 Potential Hydro Power Plant – 36 at various stages of Implementation

• China-31• Thailand -3• India-2

• Transmission Line upto 500 kV – 4513 Kms (in next five years)

• Substation Potential (6698 MVA in Next Five Years)

“Multiplier effect once economy moves with new investments and urbanisation”


Geographical advantage Myanmar may be a good channel to connect

South East Asia & SAARC

Opportunity for Sino-India Ventures in a neutral territory

4 States (Manipur-Mizoram-Nagaland-Arunachal Pradesh) share 1643 Kms of Border with Myanmar

The North-East population equal to 60% of Thailand population can be developed as a market for Indian products from Myanmar

Common infrastructure facilities like Power Plants to cater to greater regional population with lesser damage to environment

Manufacturing bases, Health Facilities in Myanmar to cater to North East

Education, Skill development, Centre of Excellence and Tourism can be developed on a regional basis

Arunachal Pradesh

Mizoram

Manipur

Nagaland


Challenges• Laws & Guidelines on Taxation/Banking/Investments/Company affairs

are under evolution– Indian Banks still hesitant to support Myanmar Investment

• Limited Global Exposure – Maturity of clients on International Contracts

• Bidding is on negotiation basis

• Poor IT & Communication Infrastructure – IT & ITeS ( Teledensity<10% & Internet Penetration<1%)

• Concerns on the future of newly experienced democratic journey – Consistency of policies and reforms post 2015

• Anxiety on regional peace and stability – Business pre-requisite of social stability in the region beyond Yangon


Challenges-On Ground Experience• Indian LOC facing issue of India/Foreign Component

– 70% Indian/30% Outside India Vs 50% Indian/50% Outside India [MOEP]

• Paucity of Skilled Workers/Qualified Contractors – OPGW Hotline Stringing – Conductor Stringing – Local knowledge limited to upto 230 kV

• Tower erection• Conductor & OPGW Stringing

• Limited Local Manufacturing Capacity

– Telecom expansion-(Potential of more than 10000 Towers/90000 MT in next 2-4 years )

– Local manufacturing Capacity-12000 MT/annum

• Institution Building and International Contracts enforcement– In house projects by Controlled departments and limited exposure to open

International Contracts


Few steps :

• Faster Realization of Indian LOC Funded Project

• India-Myanmar Hydro Power Development– Similar to Bhutan Model – Shall help build North East India as well

• ICT is huge Opportunity - Special Concession for Investment in Myanmar

• Connectivity-Ease of VISA, Travel and educational opportunities for creeping engagement

• Ventures with South East Asian and Chinese Companies for wider engagement

• Standardization and harmonization for smoother trade in products across border

• Indo-Bangladesh-Myanmar Road/Rail/Power Corridor

• ADB/WB funding – Institutionalization– Best Practices – Un Biased Procurement – International Contract Capability


Data/Information Source

• http://en.wikipedia.org/• http://articles.economictimes.indiatimes.com/2013-10-02/news/42617389_1_foreign-investment-total-trade-volume-china• Presentation by Mr. U. Maung Maung Chief Engineer (PTP) on “Power System Development Scheme of MEPE”• www.wordbank.prg • data.worldbank.org/indicators• www.adb.org• https://www.cia.gov/library/publications/the-world-factbook/fields/2212.html• RIS Report on Expansion of North East India’s Trade and Investment with Bangladesh & Myanmar”• http://www.eia.gov/countries/country-data.cfm?fips=BM• stats.uis.unesco.org• www.tradingeconomics .com• www.egat.co.th/en• http://www.doingbusiness.org/rankings• http://cpi.transparency.org/cpi2013/results/• ADB Report on Myanmar Energy Sector Initial Assessment-Oct 12• www.pwc.com/mm• PWC Report on Myanmar Business Guide November 2013

http://en.wikipedia.org/wiki/List_of_countries_by_median_age

http://articles.economictimes.indiatimes.com/2013-10-02/news/42617389_1_foreign-investment-total-trade-volume-china

http://www.wordbank.prg/

http://www.adb.org/

https://www.cia.gov/library/publications/the-world-factbook/fields/2212.html

http://www.eia.gov/countries/country-data.cfm?fips=BM




http://www.doingbusiness.org/rankings

http://cpi.transparency.org/cpi2013/results/

http://www.pwc.com/mm


THANK YOU

Documents

Indo-Myanmar-China-Bangladesh-ICWA-5DECEMBER