Investor Presentation Building Reliable Kridhan Infra Limited - - PowerPoint PPT Presentation

Kridhan Infra Limited Building Reliable Foundations for Tomorrow

Investor Presentation

Private & Confidential

Kridhan Infra Limited

Safe Harbour

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This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations

• r projections about the future, including, but not limited to, statements about the

strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information

• r events, or otherwise.

Kridhan Infra Limited

Contents

• Key Highlights
• Company Overview

– Milestones – Group Structure

• Industry Landscape
• Business Model

– Strengths – Management Profile

• Financial Highlights

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Kridhan Infra Limited

Key Highlights

• Significant growth opportunity in Indian Infra space - investment expected to reach 12.1% of

GDP by 2020 from current 8%

• Kridhan is uniquely positioned - 2nd largest foundation and geotechnical company in

Singapore, through its subsidiary KH Foges Limited

• Successfully executed more than 250 projects in Singapore with total value amounting to

SGD 527 million. Current order book stands at ₹615 crore as on December 31, 2014

• Very few players in India have the kind of expertise as Kridhan in the piling industry
• Strong relationships with Indian EPC developers and contractors
• Professional Management team with rich industry experience and technical expertise
• With rich experience in this industry, now targeting high growth economies of India,

Myanmar, Malaysia, Indonesia and Middle East

• Plans to be a leading foundation and engineering company in this region over next 5 years

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Company Overview

Kridhan Infra Limited

At a glance...

• ISO 9001:2008 certified company, headquartered in Mumbai and Pioneer in introducing ‘ready to use’ steel

for the Indian construction industry

• Since 2011, has expanded its wings to Singapore, Myanmar, Malaysia and other SEA, to expand its
• perating base internationally
• KH Foges (KIL’s subsidiary) - Singapore’s 2nd largest foundation and geotechnical company providing

timely, quality and high value added services to the building and construction industry, both locally and in the region

• Successfully executed more than 250 projects in Singapore with total value amounting to SGD 527 million.

Current order book stands at ₹615 crore as on December 31, 2014

• Received the prestigious L6 certification with the Building and Construction Authority (BCA) of Singapore,

enabling them to tender for unlimited project values in foundation engineering

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Kridhan Infra Limited

Growth Trajectory

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Readymade Steel – a steel solutions company with the product line of ready to use steel (2011) Exploit growth in infrastructure sector Kridhan Infra Limited - specialist in infrastructure solutions with high quality products and technical specialization in terms of service (2014) We were 5 Path strategy We are Enter new emerging markets Drive and capitalize technological tie ups to improve business skills Enhance business acquisitions to boost company’s landscape Improve financial health of company in terms of margins & payment cycles

Kridhan Infra Limited

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2007 2011 2012 2014 2013 2006

Timeline

• Established in

Mumbai with JV with CSC Holdings, Singapore

• Pioneered in ready

to use steel - T bars & Cut n bend services

• Started

manufacturing unit at Khopoli, Mumbai

• IPO and

listing on BSE stock exchange

• Entry into

Foundation & Engineering business through acquisition of KH Foges - Singapore’s 7th largest piling company

• Acquired PSL
• Engineering. in

Singapore – specialists in Bored & Micro piling

• Started
• perations in

Myanmar

• Acquired

35% stake in Econ Geo Tech Pte. Ltd in Singapore, a soil investigation company

• Started piling
• perations in India
• Bagged maiden
• rder of Rs 42

crore in India for expansion of a steel complex

• Under leadership of

new Management, KH Foges has emerged as 2nd largest piling company in Singapore

Kridhan Infra Limited

Our Group Structure

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Kridhan Infra Ltd

(India) RMS Singapore Pte Ltd (Singapore) Kridhan Infra Solutions Pvt Ltd (India) KH Foges Pte Ltd (Singapore) KH Foges Geotechnics Pte Ltd PSL Engineering Pte Ltd KH Foges India Econ Geotech Pte Ltd 100% 100% 90% 100% 100% 100% 35%

Kridhan Infra Limited

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Anil Agarwal, MD

• 15 years of experience in the steel & infrastructure industry
• Founding member of Ready Made Steel in 2006
• Pioneered the concept of ‘ready to use’ steel in India
• One of the mastermind behind the conceptualization of the

first Indian B2B steel portal – clickforsteel.com

• MBA from Mumbai University

Arnab Ghosh, CFO

• PGP, IIM Banagalore
• Joined as Business Head for Kridhan Infra Solutions

(subsidiary of KIL)

• Appointed as the CFO of KIL in 2014

Satyajit Das, ED

• Appointed as Director of KIL in 2012
• 40 years of experience in varied professional fields
• Arts graduate with sharp business accumen
• Successfully lead KIL’s entry into newer business segments.

Executive Directors Independent Directors

Sandeep Mittal

• Member of the Board since 2010
• Commerce & Economics Graduate with MBA
• 15 years of MNC experience with specialization in

international markets

Abhijeet Ranade

• Member of the Board since 2010
• Bachelor of Engg (Mech) & MBA (Marketing)
• Owner & Principal Consultant at ‘Sidhant’

Mahesh Kumar Garg

• Member of the Board since 2010
• Graduate in Mech & Elec Engineering and LLB, Delhi

University

• Head of Legal Department CEA

Board of Directors

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Industry Landscape

Kridhan Infra Limited

Industry Overview - India

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• Macro Economic view
• Significant growth opportunity in Indian Infra space – investment expected to reach 12% of GDP by

2020 from current 7%

• Value of roads & bridges infrastructure in India - anticipated to grow at a CAGR of 17.4% over FY

12-17

• India - expected to become 3rd largest construction market by 2025
• Foundation engineering market expected to grow at approximately 25% per year going forward, from

current growth of 20%

• FDI inflows in construction activities during

2012-2014 touched USD 2.1 billion and expected to significantly going ahead

• Construction Industry view
• Very few players in India are specialists in piling operation
• Most piling companies have already diversified into full-service construction companies

India

Kridhan Infra Limited

Industry Outlook – India

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Market Opportunity

• 7% of total GDP in spent on infrastructure

development in India

• ₹ 1,20,000 crore per year – estimated

value of construction market in India

• 25kms of Highway Development per day

in India

• 5 key growth areas of infrastructure

development - Railways, Public-Transport system, Airways & Ports, Freight & Industrial Corridors and National Fibre Optics Network

Constantly target to seize the market opportunities in the rapidly growing infrastructure market of India Continuously upgrade and innovate to offer alternate design and cost effective solutions to meet client needs Timely and quality delivery of work in safe working conditions at a competitive price.

Growth Strategy

Kridhan Infra Limited

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Key Projects - India

Delhi Metro Kochi Metro Jaipur Metro Hyderabad Metro Minerva, Mahalaxmi Omkar, Altamonte Oberoi Towers Lodha Fiorenza

Kridhan Infra Limited

Industry Outlook - Singapore

Market Opportunity

• 5% of Singapore’s GDP - spent on construction

and 8% of total construction work goes to piling

• Singapore’s piling industry worth SG$ 2.4 billion

in 2014-15

• Strong construction demand of SG$ 46-50 billion

forecasted for 2015, anchored by public sector projects

• Furthermore, Government has committed to

inject SG$60 billion into economy for infrastructure development

• KH Foges – 2nd largest foundation engineering

company in Singapore, well geared to take advantage of this investment opportunity

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Growth Strategy

Continuous up gradation of technology and Innovation in strategies Increase efficiency and cost effectiveness Implementing effective marketing strategies and

• perations management

Kridhan Infra Limited

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Key Projects - Singapore

Marina Bay Financial Centre Ritz Carlton Residences United World College Fusionopolis, Dover Changi Terminal 4 Singapore Polytechnic Singapore General Hospital Downtown Line, Bukit Panjang

Kridhan Infra Limited

Industry Outlook – Myanmar

Market Opportunity

• GDP growth of 6.5% in 2013 and expected to

reach 7.2% by 2015

• Expansion of domestic and international

infrastructure; upgrading road and rail; building hotels and airports

• Development of power plants with Myanmar

being a coal rich country

• Infrastructure market - expected to grow at

8.9% and a growth of 7.2% for residential market driven by rising middle class population and housing demand

• Industrial construction to be supported by

various manufacturing plant construction projects with ~US$ 700 mn investment

• Unavailability of any specialist piling company

in Myanmar, where piling works form 10% of the total project’s construction cost

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Growth Strategy

Identification of new market

• pportunities in the rapidly

developing infrastructure sector Innovation in marketing strategies, operations and skills management Successful implementation of project works with focus on quality and timely execution

Sule Shangri-la, Yangon Shangri-la Residences, Yangon

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Business Model

Kridhan Infra Limited

Business Segments

Foundation Engineering & Geotechnical Works

• Bored Cast-in-Place

Concrete Piles

• Contiguous Bored and

Secant Pile Walls

• Driven Piles
• Soldier Piles/King Posts
• Micro Piles and

Geotechnical Works

Steel products & Services

• Stirrups
• Prefabricated Steel Cages
• Steel Couplers
• Reinforced Bars – Cut &

Bend

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… Foundation Engineering contributes to over 92% of revenues

Kridhan Infra Limited

Foundation Engineering & Geotechnical Works

20 Mainly used for construction of large buildings typically higher than 10 storeys. Process is deeper drilling process for strong building foundation

• Suitable for large and high-rise

buildings

• Ideal for very dense and hard

ground conditions

• Construction of new multi-storey

buildings

Bored Piling

Uses equipment which typically causes noise and vibrations. Not popular in residential and densely populated areas.

• Uses steel bars and cement, mainly

for medium sized building

• Suitable relatively less populated

locations

• Ideal for very dense and hard

ground conditions

Driven Piles

Used for low-rise buildings such as private

• r

residential housing. Uses cement grouted steel rebar. Soil improvement is mainly carried out for land which may not be suitable for construction activity and is improved through addition of sand etc.

• Suitable for smaller buildings
• Soil improvement for land which needs

to be made suitable for construction activity

Micro Piling and Soil Improvement

… encompassing all the high growth sectors of urban infrastructure, industrial, residential and commercial

Kridhan Infra Limited

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Our blue chip customers

Transport Residential Leisure Commercial Infrastructure Public Works

Kridhan Infra Limited

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Our Competitive Advantages

Global Scale

With presence in more than 5 countries we have the capacity and the global reach to tackle some of the largest and most demanding projects around the regions

Local Focus Growth Credentials Broad Base Technical Expertise

Our regional structure ensures that our businesses are close to many of their customers and can understand the customer needs to offer a quick response Our strong engineering capabilities enables us to offer the most cost-effective, complete packaged solutions which are tailored to meet the specific needs of our customers Diverse customer base - Our services are used across the construction sector in infrastructure, industrial, commercial & residential We have an excellent long-term track record, built on organic growth and acquisitions offering engineering excellence and a commitment to continuous innovation.

Kridhan Infra Limited

Strong Management Team with rich industry experience, technical know-how and expertise

Anil Dhanpatlal Agrawal, Managing Director

• f Kridhan Infra Limited (KIL) and founding

member in 2006

• Has over 15 years of experience in steel and

infrastructure industry

• Pioneered the concept of ‘ready to use’ steel

in India

• Holds an MBA from Mumbai University, India

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Ang Boon Hai, Director, KH Foges Pte

• Has more than 20 years of experience in

the construction industry

• Managed more than 200 piling projects in

Singapore Siang Thong Yeo – Chief Executive Officer, KH Foges Pte

• More than 20 years of experience in the construction industry

and led large construction groups and projects in Singapore

• Registered

Professional Engineer with the Professional Engineers Board, and holds an Honours Degree in Civil Engineering and Masters of Science (Civil Engineering) from NUS Singapore Bharat Sharma, Executive Director, KH Foges India

• More than 22 year of work experience in oil&

gas, infrastructure and industrial projects

• Worked earlier with NCC, Essar & Punj Llyod
• BE (Civil Engg), NIT Jaipur, MBA

Ravindra Havaldar, President – Foundation Engineering, KH Foges India

• BE (Civil) with 42 years of rich experience in tendering, sales &

marketing, project planning & execution and contract management

• Over 40 years of experience in ITD Cementation, with

extensive knowledge in all types of piling, grouting and civil works Bala Narasimhan, GM, KH Foges India

• Post graduate in Construction Management from National

Institute of Construction Mgmt & Research, Pune

• Worked with ITD Cementation since 1994, heading
• perations in southern region, extensive knowledge of all types
• f piling and civil works

Arnab Ghosh, CFO, KIL

• PGP, IIM Bangalore
• Joined as Business Head for Kridhan Infra Solutions
• Appointed as CFO of Kridhan Infra Limited

Satyajit Das, Director, KIL

• Appointed as Director of KIL in 2012
• 40 years of experience in varied professional

fields

• Arts graduate with sharp business accumen
• Successfully lead KIL’s entry into newer

business segments.

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Financial Highlights

Kridhan Infra Limited

Consolidated Profitability Statement – YTD FY15

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Rs Lacs 9M FY15 FY14 FY13 Revenue 46,223.4 67,987.2 46,915.1 Other Income 1,360.0 796.2 1,099.7 Total Income 47,583.5 68,783.4 48,014.8 Cost of Sales 38,164.9 55,644.1 21,888.7 Employee Expenses 1,852.2 3,465.0 2,905.8 Other Expenses 1,291.4 1,476.5 16,768.5 Normalized EBITDA 6,274.9 8,197.9 6,451.8 Finance Costs 901.8 997.2 766.4 Depreciation 2,099.5 2,144.3 1,541.5 Profit Before Tax 3,273.6 5,056.4 4,143.9 Tax 519.4 563.9 425.9 Minority Interest 288.3 488.1 286.7 Net Profit after Minority Interest 2,465.9 4,004.3 3,431.3

Kridhan Infra Limited

Consolidated Balance Sheet

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• Rs. Lacs

As on Sept 30, 2014 As on Mar 31, 2014 Shareholder’s Fund Share capital 1,231.8 1,231.8 Reserves & Surplus 13,043.8 11,420.4 Share & Warrant Application 608.3 408.1 Minority Interest 1,540.8 1,740.9 Non-current liabilities Long term borrowings 1,6883.5 10,993.2 Other non-current liabilities 3,382.5 2,898.7 Current liabilities Short term borrowings / Buyers Credit 1,915.8 4,523.5 Trade Payables 15,119.8 13,237.7 Other current liabilities 3,595.6 7,201.7 Total Liabilities 57,322.0 53,655.9 Non-current assets Fixed assets 20,556.3 16,890.8 Non Current Investments 305.0 2,759.6 Other Non-Current Assets 1,870.7 1,890.8 Current assets Inventories 2,043.8 1,926.5 Trade receivables 27,388.7 13,112.3 Current Inv,. & Cash and bank 2,468.6 1,768.8 Other current assets 2,990.9 15,307.1 Total Assets 57,322.0 53,655.9

Kridhan Infra Limited

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For further information, please contact:

Company : Investor Relations Advisors : Kridhan Infrastructure Ltd.

CIN: L27100MH2006PLC160602

Apurva Shah apurva@kridhan.com www.kridhan.com Stellar IR Advisors Pvt. Ltd.

CIN: U74900MH2014PTC259212

Savli Mangle msavli@stellar-ir.com www.stellar-ir.com