Documente Academic
Documente Profesional
Documente Cultură
Construction &
Engineering in India
August 2013
Reference Code: 0102-2028
WWW.MARKETLINE.COM
MARKET LINE. T HIS PROFILE IS A LICENSED PRODUCT AND IS NOT T O BE PHOT OCOPIED
EXECUTIVE SUMMARY
Market value
The Indian construction & engineering industry grew by 4.4% in 2012 to reach a value of $117.4 billion.
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 ri valry .................................................................................................................................................................................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, 2008 12 .........................................................................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 ($) ...................................................................................................................19
Table 7: Gammon India Limited: key financials (Rs.) ...............................................................................................................19
Table 8: Gammon India Limited: key financial ratios ................................................................................................................19
Table 9: Hindustan Construction Company Ltd.: ke y facts ......................................................................................................21
Table 10: Hindustan Construction Company Ltd.: ke y financials ($)......................................................................................22
Table 11: Hindustan Construction Company Ltd.: ke y financials (Rs.) ..................................................................................22
Table 12: Hindustan Construction Company Ltd.: ke y 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, 2008 12 ........................................................................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, 2012 17.......................................................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.: re venues & 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 anticip ated CAGR of 6.6% for the fi ve-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, o ver 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%.
$ billion
Rs. billion
billion
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
SOURCE: MARKETLINE
% Growth
5.6%
M AR KE TL IN E
SOURCE: MARKETLINE
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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%
117.4
100%
Total
SOURCE: MARKETLINE
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Figure 2: India construction & engineering industry category segmentation: % share, by value,
2012
SOURCE: MARKETLINE
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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
Rest of Asia-Pacific
Total
SOURCE: MARKETLINE
70.8
4.5
197.0
12.6
1,567.6
100%
M AR KE TL IN E
Figure 3: India construction & engineering industry geography segmentation: % share, by value,
2012
SOURCE: MARKETLINE
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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 2012 17 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
SOURCE: MARKETLINE
6.6%
M AR KE T L IN E
Figure 4: India construction & engineering industry value forecast: $ billion, 201217
SOURCE: MARKETLINE
M AR KE TL IN E
Summary
Figure 5: Force s driving competition in the construction & engineering industry in India, 2012
SOURCE: MARKETLINE
M AR KE TL IN E
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
SOURCE: MARKETLINE
M AR KE TL IN E
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 u nlikely 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
SOURCE: MARKETLINE
M AR KE TL IN E
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 essenti al 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
SOURCE: MARKETLINE
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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 tute s in the construction & engineering in dustry
in India, 2012
SOURCE: MARKETLINE
M AR KE TL IN E
There is little threat of substitutes in this industry. It is unlikely that buyers will find an alternative expenditure for t heir
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
SOURCE: MARKETLINE
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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 constructio n 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
Telephone:
Fax:
91 22 2430 0221
Website:
www.gammonindia.com
Financial year-end:
March
Ticker:
509550, GAMMONIND
Stock exchange:
Bombay, NSEI
Head office:
M AR KE TL IN 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.
2008
2009
2010
2011
2012
Revenues
564.3
1,102.8
1,504.4
1,881.4
1,778.2
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
M AR KE TL IN E
2008
2009
2010
2011
26,434.6
51,661.8
70,474.8
88,136.5
83,302.0
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
Revenues
Net income (loss)
2012
M AR KE TL IN E
2008
2009
Profit margin
2.7%
1.1%
Revenue growth
4.0%
95.4%
Asset growth
18.3%
152.0%
Liabilities growth
17.1%
Debt/asset ratio
Return on assets
2011
2012
0.6%
1.2%
(1.2%)
36.4%
25.1%
(5.5%)
9.6%
14.2%
19.0%
223.4%
7.0%
16.5%
25.5%
64.5%
82.8%
80.8%
82.5%
87.0%
1.7%
0.7%
0.4%
0.8%
(0.7%)
2010
M AR KE TL IN E
M AR KE TL IN E
M AR KE TL IN E
Telephone:
Fax:
91 22 2577 5732
Website:
www.hccindia.com
Financial year-end:
March
Ticker:
500185
Stock exchange:
Bombay
Head office:
M AR KE TL IN E
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 s pecial 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.
2008
2009
2010
2011
2012
Revenues
759.0
761.9
848.6
1,527.5
1,741.3
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
Total liabilities
1,023.3
1,294.1
1,746.5
2,550.7
2,854.6
M AR KE TL IN E
2008
2009
2010
2011
35,554.2
35,690.9
39,751.9
71,559.0
81,576.3
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
Total liabilities
47,937.3
60,626.1
81,816.3
119,490.0
133,726.2
Revenues
Net income (loss)
2012
M AR KE TL IN E
2008
2009
2010
2011
2012
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%
Liabilities growth
46.5%
26.5%
35.0%
46.0%
11.9%
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%)
M AR KE TL IN E
M AR KE TL IN E
M AR KE TL IN E
Telephone:
Fax:
Website:
www.jalindia.com
Financial year-end:
March
Ticker:
532532
Stock exchange:
Bombay
M AR KE TL IN E
Jaiprakash Associates (JAL) is a diversified infrastructure conglomerate. The company conducts its business in
engineering and construction, power, cement, hospitality, real e state 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 lu xury 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 transmissio n 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.
2008
2009
2010
2011
2012
1,077.7
952.2
1,759.0
2,662.6
3,153.5
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
Total liabilities
3,661.7
4,907.5
9,648.6
12,831.1
13,843.4
Revenues
Net income (loss)
M AR KE TL IN E
2008
2009
2010
2011
2012
50,487.0
44,609.3
82,402.0
124,734.7
147,732.3
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
Total liabilities
171,540.3
229,898.5
452,004.9
601,092.5
648,516.5
Revenues
Net income (loss)
M AR KE TL IN E
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%
Liabilities growth
45.6%
34.0%
96.6%
33.0%
7.9%
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%
M AR KE TL IN E
M AR KE TL IN E
M AR KE TL IN E
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
Financial year-end:
March
Ticker:
Stock exchange:
Bombay, NSEI
M AR KE TL IN E
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, Avi va, 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 $22m in the preceding year.
Table 18: Ansal Properties & Infra structure Limited: key financials ($)
$ million
2008
2009
2010
2011
2012
Revenues
247.2
166.2
189.8
275.5
227.3
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
M AR KE TL IN E
Table 19: Ansal Properties & Infra structure Limited: key financials (Rs.)
Rs. million
2008
2009
2010
2011
2012
11,580.6
7,785.5
8,889.2
12,906.8
10,649.0
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
Total liabilities
27,113.5
29,875.2
35,998.3
39,153.2
44,165.0
Revenues
Net income (loss)
M AR KE TL IN E
Table 20: Ansal Properties & Infra structure 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%
Liabilities growth
92.4%
10.2%
20.5%
8.8%
12.8%
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%
M AR KE TL IN E
Figure 17: Ansal Properties & Infra structure Limited: revenues & profitability
M AR KE TL IN E
Figure 18: Ansal Properties & Infra structure Limited: assets & liabilities
M AR KE TL IN E
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%
SOURCE: MARKETLINE
M AR KE TL IN E
% 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%
SOURCE: MARKETLINE
M AR KE TL IN E
% 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%
SOURCE: MARKETLINE
M AR KE TL IN E
2008
8.3%
2009
10.9%
2010
12.0%
2011
8.9%
2012
9.3%
SOURCE: MARKETLINE
M AR KE TL IN E
2008
122.4
2009
135.7
2010
152.0
2011
165.5
2012
180.9
SOURCE: MARKETLINE
M AR KE TL IN E
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
SOURCE: MARKETLINE
M AR KE TL IN E
APPENDIX
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in -house databases
provide the foundation for all related indus try profiles
Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
-
National/Governmental statistics
Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand -related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up -to-date
Industry associations
IFAWPCA,
International
Contractors'Association
Federation
of
Asia
and
Western
Pacific
3rd Floor Padilla Building, Emerald Avenue, Ortigas Center, Pasig City, Metro Manila, PHL
Tel.: 632 631 2782
Fax: 632 631 2773
www.ifawpca.org
MARKETLINE
UNITED
EC1R
3DA