About Us

VICE CHAIRMAN AND MANAGING DIRECTOR’S MESSAGE

We strive to create a Robust business model resulting in strong revenue visibility and value creation for our stakeholders.

Dear Shareholders,

We began our business as a pure toll collection company way back in 2002, and over the years, we gradually participated in the Operate-Maintain-Transfer (OMT) format. Today, we have attained market leadership across both these models and have a strong pan- India footprint. We have demonstrated our excellence over the past 13+ years in executing and completing nearly 92 projects, including an aggregate of 178 toll plazas and 1046 toll lanes across 12 states of India. The geographic diversity of our project portfolio and a capable management team grant us the expertise to effectively bid for and win multiple projects.

Our key market differentiator has been the low-risk nature of our business model, which allows for lower project cost and quicker pay-offs, enabling us to bid for more projects. We have a diversified mix and adequate balance of short-term and long-term projects, extending the longevity of our business. Our short term projects tend to have moderate margins, but exhibit a good return profile. They also provide us good visibility for the future pipeline of long-term OMT projects. Going forward, we are focussed on increasing the revenue contribution from long-term projects. Today, about 68% of our revenue is contributed by long-term toll collection projects, giving us a steady and predictable revenue stream.

Executing Excellence

Another competitive strength is our distinct ability to manage key operations in-house. Tendering of the project, conducting traffic surveys, forecasting our revenue, achieving financial closure and toll collection are to name a few. This reduces our reliance on sub-contractors and third parties and lowers our operating costs. We introduced Electronic Toll Collection System based on RFID technology at Rajiv Gandhi Sea Link in August 2012 and are extending the same at Vidyasagar Setu (Kolkata) and Mumbai Entry Points Projects. 24x7 Surveillance on toll collection using modern techniques, centralized control rooms, cameras that enable video based monitoring of toll operations leads to improved operational efficiency and transparency.

Primed for an Evolving Industry

In early 2010, the new tolling policy introduced by the National Highway Authority of India (NHAI) was indeed a boon for the Road Infrastructure sector in India. The introduction of private players in managing toll collection has widened the opportunity and enabled us leverage our core strengths. During the first phase of pure tolling projects, we secured 15 of ~100+ projects invited for bidding by the NHAI. Subsequently, we also managed to win and operate the largest number of OMT projects on behalf of NHAI. Going forward, NHAI plans to convert some 3,400 km of roads from the Build-Own-Transfer (BOT) model into EPC projects, which we aim to capitalise on.

Additionally, the Government is also designing new structures of Toll-Operate-Transfer (TOT) and Hybrid Annuity Model (HAM). These models create low-risk opportunities for private sector investments and provide for efficient operations. The inclusion of private sector in such projects is seen improving operational efficiencies and reducing the pilferage of toll revenue. Our confidence stems from the fact that aggressive participation from the Central and State Government to develop road infrastructure will translate into significant growth opportunities for our business. Going ahead, we expect to benefit mainly from the Government’s focus on developing road infrastructure, thereby strengthening our leadership position in the industry.

Outlook

The changing political landscape has paved the way for creating “across the board” reforms and infrastructure amenities like never before. We intend to capitalise on these opportunities through new formats of toll collection and road maintenance, while expanding our presence in India. Today, we’re already working off a solid foundation, which we mean to leverage to create a winning business model that produces strong revenue visibility and results in attractive value creation.

I take this opportunity to thank our highly competent employees for delivering operational excellence even during difficult market conditions. Our Board thanks all the shareholders for their unflinching co-operation, continued support and strong faith in us. I am confident that our collective team effort will enable our Company stay competitive in the industry and deliver consistent value to our stakeholders.

Regards,

Jayant D. Mhaiskar
Vice Chairman and Managing Director