InfrastructureWhere The Future Lies

The Next Big Thing

Privileged & Confidential 3

What Is Infrastructure?

The Amazing Size of Opportunity

Where Do You Come In?

Privileged & Confidential 4

Imperatives of Growth

Indian economy is pushing the limit of growth

The 9% growth has come down to below 7%

Privileged & Confidential 5

Sectors of Infrastructure

Roads Railways Irrigation

Power Generation Energy

Oil & Gas Airports

Privileged & Confidential 6

Stakeholders in the sector

Participant Roles and Scope Illustrative Players

Owners / Developers

Define scope, specs, standards, project duration and cost of projectSupervises project work with in-house / external consultantsMakes payment according to agreed milestones

PSU – NTPC, AAI, NHAI, NHPC, Port trustsPrivate – Tata Power, Reliance Power, GMR, GVK, Adani, Essar

Privileged & Confidential 7

Stakeholders in the sectorParticipant Roles and Scope Illustrative

PlayersConsultants Prepare initial

design for tender documentManages tendering process

EIL, Stup, Rites, Mott Macdonald, Halcrow

Privileged & Confidential 8

Stakeholders in the sector

Participant Roles and Scope Illustrative Players

Contractors Prepare detailed design as per specs and standardsProcures material, machinery and manpowerDelivers project as per contractMay appoint sub-contractors to help deliver

L&T, HCC, NCC, Punj Lloyd, IVRCL, Gammon, Patel Engg, Shapoorji Group, IRCON

Privileged & Confidential 9

Stakeholders in the sector

Participant Roles and Scope Illustrative Players

Suppliers / Vendors

Manufactures / supplies material / equipment required for execution

GE, Siemens, ABB, BHEL, Thermax, Alstom, Hitachi, Doosan

Privileged & Confidential 10

Stakeholders in the sector

Participant Roles and Scope Illustrative PlayersProject Management Consultants

Supervise work undertaken by contractorsEnsure timely execution and report progress to owner / contractor

Local contractors and consultants – mostly small sized

Privileged & Confidential 11

Stakeholders in the sector

Participant Roles and Scope Illustrative Players

Financiers Provides financing to various stages of the projects through debt, equity or mezzanine route

IDFC, PFC, L&T Infra, REC, Banks

Privileged & Confidential 12

Outline of the presentation

Introduction to the Infra sector

Where do you come in

The amazing size of opportunityThe amazing size of opportunity

Privileged & Confidential 13

Investments Planned for Infra

INR 8,70,000 cr

INR 20,50,000 crINR 41,00,000 cr

Privileged & Confidential 14

Investments Planned for Infra

Privileged & Confidential 16

Twelfth Five Year Plan

Data taken from E&Y Study – Infrastructure Today

Privileged & Confidential 17

You cannot import Infrastructure …You have to build it here

• From 1951 till 2011 the total capital invested in India across its entire industrial growth is Rs.25,00,000 crores

Privileged & Confidential 18

Capital follows not just Opportunity but also Capability

Engineering capability

• Which we have in abundance, though still short of the demand that Infra will require

Managerial capability

• Which we don’t have at all, as a specialization except via experienced hands

Financial capability

• Which again we have in limited supply

Privileged & Confidential 19

Outline of the presentation

Introduction to the Infra sector

The amazing size of opportunity

Where do you come inWhere do you come in

Privileged & Confidential 20

Manpower Crunch in Infra Current manpower of around 1.2 million people

• 58.3 million people expected to be employed by 2022 in Infrastructure sector in India

40% shortage of skilled professionals in the sector

• Current annual supply of 27,000 Civil Engineers against a demand of 4.27 million annually

• A shortfall of 39.4 million civil engineers in the decade of 2010-20

Shortfall of 3.64 million architects and 1.1 million managers and planners during the same period

Privileged & Confidential 21

Not Automatic Entry for MBAs Hard, physical work in the real sector has not been

the hallmark of MBA schools

MBAs have focused on soft manufacturing industry such as FMCG, Consumer durables

Consumer services have been a focus area for them

• Financial, banking, retail, consulting, telecom, web based, InfoTech etc

Privileged & Confidential 22

Infra Requires Employability Employability is a key consideration for millions of new jobs the

Infra businesses will create

A dedicated infra school - in fact many schools - is what is exactly needed

Students who understand that hard work is required on site and to lead blue collared, large work forces.

That is why Infra companies prefer to train their own managerial talent

That is why we welcome the rise of an Infra Business Institute and support its development

Privileged & Confidential 23

Employability helps you become an Early Movers In a Sunrise Sectors Where Careers are made

Telecom

Insurance

Automotive

Private banks

Airlines

fast and relatively young

Logistics

Packaged foods

Consumer durables

InfoTech

BPO/KPO

Privileged & Confidential 24

Where Scope maybe Maturing Services that have already grown to become 40% of

GDP

Industrials that have shown a shrinking share of GDP

Consumption sector that has infrastructure wall to climb over before next phase of growth comes in

Privileged & Confidential 25

Salary Overview

Infrastructure Companies

(Lakhs pa)SpecialistPost Grad

Starting 3.5-4.5

1 to 2 yrs 6.0-7.5

3-5 yrs 12-15

Thank You!