Corporate Presentation
May 2011
Contents
MARG Overview
Marine Infrastructure
Urban Infrastructure
EPC
Real Estate
Key Financials
Human Capital
Awards and CSR
MARG - Overview
Company Snapshot
•The company was incorporated in 1994 & is promoted by Mr. GRK Reddy, a first generation entrepreneurInception
•The company went public in 1995
•Shares of the company are listed at BSE and traded as a permitted security in NSEListing
• Infrastructure – Marine Infrastructure & Services, Urban & Industrial Infrastructure
•Engineering, Procurement & Construction
•Real EstateBusiness
•Region Development
•Vertical integration by diversification into synergistic businesses Strategy
•MARG Limited & subsidiaries have around 1100 employees
•Professional and experienced managementManagement
4
The Growth Story
Contracting & Real Estate
Port Development & Operation, Urban & Industrial Infrastructure, EPC
Diversified Infrastructure Play, Inclusive Region Development
Shar
eh
old
er’
s V
alu
e
5
Incorporated in 1994
IPO & listing in 1995
Wind Mills, Roads, Civil & Electrical works
Commercial & Residential Real Estate
Karaikal Port
Phase 1 (5.2 MTPA capacity)operational;Phase 2 under development
IDFC equity investment
Investment Grade credit rating from CARE
MARG Swarnabhoomi
Launched; Industrial, Residential & Commercial development
Signed reputed clients for engineering, multi-services spaces
Others
MARG Junction Mall cum Business Hotel
Marine Infrastructure
Commissioning of Phase 2A (21 MTPA)
Foray in logistics, CFS, ship repair and new ports –
focus on east coast
MARG Swarnabhoomi
Develop Knowledge Hub, Science & Research Hub
& Residential spaces @ MARG Swarnabhoomi
Real Estate
Monetize land banks through new residential
project launches/JV’s/JD
Commissioning of integrated multi use
development – MARG Junction
Others
Explore and pursue region development
opportunities in Bellary area
Ca
pit
al
Infu
sio
n
(QIP
)
Ca
pit
al
Infu
sio
n
Business Verticals
6
MARG
Infrastructure Development
Marine Infrastructure
Ports
Ship Repair Yard
Dredging
Logistics
Urban & Industrial Infrastructure
Integrated City
EPC Real Estate
Residential Spaces
Commercial Spaces
Other Businesses
Airports
Multi-Level Car Parks
Business Model
Leveraging the model towards “Region Developer” – providing sustained regional economic activity
Revenue Model
MARG’s Portfolio
Cash Flow Profile
Project Profile
EBITDA Margin
Services Revenue
EPC, Dredging, Logistics
Asset light services play with short-term cash flows
1-3 years
7-15%
Annuity Revenue + Sale Revenue
Residential, Commercial Real Estate
Self-funding, low capital, short-medium term cash flow
2-7 years
25-30% (residential)
60-70% (commercial)
Annuity Revenue
Marine Infrastructure,
Urban & Industrial Infrastructure
Upfront capital but provides stable long term return
15-30+ years
65-70%
EPC &
Services
Real Estate Development &
Assets
Infrastructure Assets
* Width reflects relative capital
investment and EBITDA margins
7
Snapshot of Infrastructure Assets
Marine Infrastructure Other Businesses Urban & Industrial Infrastructure
Karaikal Port – Phase 1 (Rs 400 crores)
Bijapur Airport (Phase –I Rs 108 crores)
MARG Swarnabhoomi (Phase-I Rs 700 crores)
Multi Level Car Park (Rs 30 crores)
Minor Port cum Ship Repair Yard at Mugaiyur
(Rs 900 crores)
Operational Under Construction Pre-Development Stage
Diversified infrastructure portfolio with a total capital outlay of about Rs 5,300 crores
Figures in brackets show Project Cost
Karaikal Port – Phase 2 (Rs 1,500 crores)
Karaikal Port – Phase 3 (Rs 1,400 crores)
Bellary Airport(Phase –I Rs 232 crores)
8
Marine Infrastructure & Service
Sector Snapshot
According to the Planning Commission, US$ 19.6 billion
will be invested in the ports sector during the Eleventh
Plan (2007-2012)
The share of total traffic handled by non-major ports is
expected to grow from 32% in 2009-10 to 42.6% by 2013-
14 due to
Increased investment and capacity expansion at non-major
ports
Congestion, capacity constraints and other operational issues at
major ports
Cost advantages associated with using large ships make it
essential for Indian ports to provide adequate draughts for
handling them.
Coal-based plants are being setup near ports due to the
dependence on imported coal, thus providing the ports a
steady revenue stream
INDUSTRY TRENDS
Source: CRISIL Research
10
Likely Shift in Traffic to Non-Major Ports
StateMajor Port Currently Handling
TrafficCargo Handled in 2009-10
(in mn tons)Alternative Non-Major
(Ports)
Gujarat Kandla 79.521Dahej
DholeraMundra
Andhra Pradesh Visakhapatnam 65.501
GangavaramKrishnapatnam
DhamraGopalpur
Tamil Nadu
Chennai 61.057Krishnapatnam
Karaikal
Ennore 10.703Krishnapatnam
Karaikal
Tuticorin 23.787Karaikal
Vizhinjam
Orissa Paradip 57.011
GangavaramGopalpurDhamraKirtania
Goa Mormugao 48.847 KrishnapatnamKarnataka New Mangalore 35.528 Krishnapatnam
MaharashtraMumbai 54.543
MundraDharmatar
JNPT 60.746 MundraWest Bengal Kolkata 13.045 Kulpi
11
Karaikal Port - Overview
12
Background
Developed and operated on BOT basis by Karaikal Port Private Ltd (KPPL) , a subsidiary of MARG Ltd based on the concession agreement signed with the Government of Puducherry in January 2006.
602 acres of lease land for development
Location Strategically located on the eastern coast of
India between Chennai and Tuticorin Port and well connected to the road and rail networks.
Concession Agreement
The concession is for a period of 30 years extendable by another 20 years.
Revenue share at 2.6% for first 30 years
Construction Developed as a lagoon type harbor connected to sea by an entrance/access channel protected by sea breakwaters
COD for Phase I
Phase I (5.2 MTPA) is completed and operational from June 2009
Highlights In FY 2010-11, the port has handled more than 4.75 MMT of cargo and called more than 122 major vessels.
Currently operating at full capacity
Karaikal Port - Growth Path
13
Foray into Marine InfrastructureMini-Port with Aggressive Expansion
plans backed by Strong DemandPreferred port of call on East Coast
Project Cost Rs.416 cr Rs.1,569cr Rs.1,390cr
Debt-Equity Mix ------------------------------------------------------------------- 73:27 -----------------------------------------------------------------
Development of a Greenfield port
facility, riding on inhouse EPC
capabilities
COD in June 2009 (2-Months ahead
of schedule)
Cash profit in the first year of
commercial operations
IDFC Equity Investment – Rs.150cr
Investment Grade Credit Rating from CARE – Triple B
Obtained ISO 9001: 2008 certification
Financial closure complete; COD in Oct 2011
Crude Oil and container facility development
Mechanization of coal berths
Coastal shipping facility
Container Freight Stations
Fully mechanized, efficient operation
Completely integrated port with end-
to-end marine operations catering to
both imports and exports
Layout
14
Infrastructure
15
PHASE 1
Infrastructure
- 2 Berths
( 2 Multi / General Cargo)
- 1.2 Kms of Breakwater
- 2 Mobile Harbour Cranes
- Navigational Equipments
- Stockyard & Transit Shed
- Internal Roads
- Buildings & Utilities
Features
- Capacity – 5.2 MTPA
- Depth suitable for Handymax Vessels
- Cargo Handling capacity ~18,000 – 25,000 tonnes/day thru Mobile Harbour Cranes
PHASE 2 A
Infrastructure
- 3 Berths ( 1 OSV/PSV, 2 Coal)
- Depth of (-) 16.5 Mts
- Mechanised coal berths
- Mechanisation Equipments
- BWSR
- Conveyor belt
- Grab unloaders
- Liquid handling
- Liquid Handling Capabilities
- Specialized warehouse for fertilizers, agro products
Features
- Capacity – 21 MTPA
- Depth suitable for Cape Size Vessels
- Cargo Handling capacity ~ 40,000 tonnes/day
PHASE 2 B
Infrastructure
- 4 Berths ( 2 Container, 2 Multi / General Cargo)
- Mechanised Coal & Container Handling
- Container Handling Equipments
- RTGC
- RMQC
Features
- Capacity – 47 MTPA
- Full fledged cargo handling capability
Hinterland
16
Hinterland Cargo Potential
17
CARGO TYPE
INDUSTRYEXISITING
DEMAND (MMT)UPCOMING
DEMAND (MMT)KEY UPCOMING / EXPANDING
PLAYERS
Coal Cement 4.14 1.44
Power 4.84 68.06*
General Cargo
POL, Fertilizers, Sugar etc.
5.20 -
TOTAL 14.18 69.50
Strong, growing demand projected for Coal and other cargo in the port’s hinterland
* 5 Power Plants under implementation, 14 in the planning phase and 4 in nascent stage
Existing Customer Base
18
Cargo Type Customer Name (Existing)
OSV / PSV HOEC, Reliance
General
Cargo
Krishna & Co
Madras Cements
Coal
Madras Cements
Chettinad Cements
India Cements
Bhatia International
Coal & Oil
Devendran Coal
JSW
MALCO
TNPL
Raw Sugar Thiru Aaroon Sugars
Copra Cake South India Edible Oil
Project
Cargo
Nagarjuna Oil Corporation
Private Limited
BHEL
Cargo Type Customer Name – New clients in FY11
Fertilizer
Coromandel Fertilizers
Nagarjuna Fertilizers Limited
Zuari
Coal
Seshasayee Paper Boards
Dalmia Cements
Adani Enterprises
Agro Cepex Energy / EID Parry (Empty Fruit Bunch)
General
CargoMurudeshwar Ceramics (Clay)
Project ABC Marine / BHEL
Operations Highlights
19
Description FY 2010-11
Peak Discharge rate for Coal (MT) 55,912
Average Turnaround time for coal vessels 2.5 days
Operation Loss Nil
Maximum no. of rakes loaded in a single day 5
No. of Rakes Handled 669
Average turnaround time per rake 3 .5 hrs
Peak turnaround time per rake 2 .5 hrs
Operational Performance Metrics
Competitive Benchmarking
Created a national record by handling 55,912 MT of coal in 24 hours through conventional handlingTotal of 135 equipments deployed at site
Parameter Chennai^ Tuticorin^ Karaikal*
Average Turnaround time (Days) 7.4 5.8 2.7
Average Discharge Rate (MT/day) 8,024 6,574 30,029
^Source: Crisil 2009-19
.
Highlights FY10-11 Handled cumulative traffic of 4.75 MMT in the current FY 2010-11 as against 1.57 MMT in FY 2009-10
The port has achieved a record peak discharge rate of 55,912 MT of coal in 24 hrs (through conventionalhandling)
Handled 228 rakes in Q4 (highest number of rakes handled in a quarter till date); discharged 745 rakes infull year FY11
Government Notification for handling urea received – handled 0.47 MMT of fertilizer cargo in FY11
Credit rating of KPPL upgraded to “Triple B”
Phase 2A expansion to 21 MMT is on schedule – one berth out of the three planned in Phase2A alreadycommissioned
IDFC has invested Rs.150 crores including Rs.40 crores in April 2011
Awarded ISO 9001: 2008, ISO 14001: 2004 and OSHAS 18001: 2007 certifications
20
Construction Progress – Phase 2AOperations – Cargo Handling at Port
Key Highlights FY10-11 (Operations)
21
Cargo Mix – FY11Vessels at Karaikal Port
Cargo Handled (MMT)
Key Highlights FY10-11 (Financial Performance)
22
INR Crores
Annual Growth
– 240%
Revenue
EBITDA
Cargo Handled (MMT)
Annual Growth
– 200%
PAT
Marine Services – Dredging & LogisticsDredging
MARG Group owns ‘MARG Cauvery’ – 2,000 CBM Cutter
Suction Dredger
‘MARG Vaigai’ Trailer Suction hopper dredger with 5,000
CBM hopper capacity
Completed dredging of more than 18 million CBM
Going forward, MARG will look at other domestic and
international opportunities in dredging
Logistics
• Logistics business at MARG is spearheaded by
MARG Logistics Pvt Ltd (MLPL), a wholly owned
subsidiary of MARG Limited
• MLPL currently handles the end-to-end logistics
management for Karaikal Port, right from cargo
handling at the port to the delivery of cargo at the
door step of the customer
• Key customers are MALCO, Madras
Cements, Dalmia Cements, India Cements and
Seshasayee Paper Boards
• MLPL’s fleet of Equipments include:
Dumpers, Tippers, Loaders, Excavators
, Grabs, Workshop Equipment
• MLPL is planning to set up Logistics Hub in
different parts of South India in order to
consolidate Cargo for Karaikal Port
23
Marine Infrastructure – Project in pipeline
Ship Repair Yard cum Minor Port on BOT basis near MARG Swarnabhoomi
Location Mugaiyur, 5 Kms from MARG Swarnabhoomi
Project Cost To be developed in 2 phases with an estimated cost of Rs 900 crores
Status
Formal approval received form Govt of Tamil Nadu
Port limits notified
Land acquisition, feasibility study, master plan, DPR initiated
24
Urban & Industrial Infrastructure-MARG Swarnabhoomi
Sector Snapshot
Source: McKinsey Global Institute’s report titled “India’s urban awakening: Building inclusive cities, sustaining economic growth”
200 years ago, 3% people lived in urban settings. Today,50% of the world is urban
Urbanization is inevitable and is associated with theeconomic growth of nations
In 2001, only 28% of the Indian population – about 285million people – lived in urban settings
India’s urban population is growing faster
By 2030, 40% of the projected 1.5 billion Indians will live inurban areas
Urban population 600 million, 2 times of 2001 !
Where will the additional 300 million live? Existing cities, or,
New Settlements
26
Urban & Industrial Infrastructure -MARG Swarnabhoomi
27
Spread across 613 acres (Includes an Engineering SEZ & a Multi Services SEZ)
Designed by world’s leading architect – HOK,USA
6 acres of natural water bodies
Located on the scenic East Coast Road, midway between Chennai & Puducherry
Lease and Sale Revenue model
Deals for 260,000 SFT of leasable spaces confirmed
More than 1200 residential units (1.3MSFT) sold in MARG Swarnabhoomi till April 2011
Key Differentiator – Knowledge Hub: MoU with VirgniaTech for setting up its Asia Campus, SAM, MIDAS
MARG Swarnabhoomi, positioned as land of new thinking is a city of sustainable Innovation built on close
networking of academia-research-industry in a pristine location
Key Highlights
Key Clients
Million Square feet
Light Engineering SEZ 2.88
Multi Services SEZ 4.5
Science Park 1.30
Knowledge Hub 0.45
Innovation Hub 2.45
Multi-Services Spaces 0.3
Residential Hub 14.66
Total 22.04
MARG Swarnabhoomi - Development Plan
28
Phase -1-Project Cost & Financing
Funding Details Amount in Rs Crores
Project Cost 705.6
Debt Tied up 406.8
Equity 183.2
Others 115.6
Financial Closure is complete
The project cost can be broadly apportioned to:
Initial Infrastructure Development
Around 1300 residential units
Close to 700,000 sq ft of research and tech park, industrial units andother buildings
29
Key Highlights FY10-11Engineering SEZ
LOI’s signed with leading companies including Techpro Energy Systems, Kwik® Patch, Sumeet
Research Holdings for setting up their robotics, appliances and R&D unit
Grundfos and Vanspall have commenced their operations and have started shipping orders
Virgo and Polyhose has started construction of factory premises and are expected to be
operational by Q2 of FY 11-12
Science Park
Construction of phase-I of Wet Laboratory building underway and the building would be ready
for occupation by March,2012
Clients inlcude Symphony, Micro Labs and Laxai Avanti and Biophenolika Polymers
Department of Biotechnology (DBT), Government of India has approved for the Biotechnology
Incubation Center (BTIC) that is being set up under association with ICRISAT. The Incubation
Center shall be functional in Q3 2011-12
Operational factory sheds for LES clients
Key Highlights FY10-11Knowledge Hub
The company signed MoU with Virgnia Tech,
USA for setting up a centre of higher education
in the advanced engineering space
Swarnabhoomi Academy of Music (SAM) and
MARG Navjyothi Vidyalya (School) are
functional
Interest from foreign universities and Higher
Education Institutions (HEIs) in the field of
science & technology, hospitality training
institutes, humanities & fine arts
Residential
A total of 607 (0.618 million sq ft) apartments
were sold during FY11 taking the total sales
since inception to 1.3 million sq ft; Mahautsav
with 496 apartments was launched in Sept
2010
Operational SAM building
Swarnabhoomi entry
Residential block
MARG Swarnabhoomi – Financial PerformanceRevenue EBITDA
PAT
INR Crores
Engineering, Procurement and Construction (EPC)
EPC – Segment Presence MARG Foundation India, the EPC arm of MARG, is focused on providing engineering, construction and
technical services on turn-key basis in multiple verticals
Consistent track record in execution of projects with more than 20 years of experience
34
Sector Presence
Order Book Robust order book (unexecuted) of 3350 crores provides a strong earnings visibility for EPC Services
Successfully leveraged internal project execution capabilities and secured external orders worth ~600 crores
In FY11 won contracts worth Rs. 833 crores on a total bid of Rs.3300 crores (conversion rate of 25%)
As on FY11 year end, results are awaited for projects worth Rs. 400 crores
Human Capital strength at 472 (Direct and Support); Skilled Labour of more than 4000
EPC revenues in FY2010-11 at Rs.1005, an increase of 43% Y-o-Y
47% of EPC business revenue from external customers
35
7%Sector
Revenue Growth Order Book – Sector Split
Alliances
36
SECTOR COMPANY
Roads IVRCL
Valecha
Pratibha
Ports IVRCL
IL&FS
PSTS
Yashika Enterprises
Abhay Ocean
Urban Infrastructure HUDCO
Geo-Miller
PYCSA
Lagan
BEFESA
National Agro Foundation
Bangkok Solar
Tecpro Systems Limited
Jyoti Limited
Alliances Customers
EPC – Growth Strategy
37
Real Estate
Sector Snapshot
Urban Housing Shortage in India (In Millions)
Sl. No
State / Region 2001 2007
1 Andhra Pradesh 0.95 1.95
2 Arunachal Pradesh 0.02 0.02
3 Assam 0.14 0.31
4 Bihar 0.35 0.59
5 Chhattisgarh 0.08 0.36
6 Goa 0.02 0.07
7 Gujarat 0.99 1.66
8 Haryana 0.21 0.52
9 Himachal Pradesh 0.01 0.06
10 Jammu Kashmir 0.07 0.18
11 Jharkhand 0.11 0.47
12 Karnataka 0.66 1.63
13 Kerala 0.31 0.76
14 Madhya Pradesh 0.39 1.29
15 Maharashtra 1.37 3.72
16 Manipur 0.03 0.05
17 Meghalaya 0.02 0.04
18 Mizoram 0.01 0.04
Sl. No
State / Region 2001 2007
19 Nagaland 0.00 0.03
20 Orissa 0.37 0.50
21 Punjab 0.21 0.69
22 Rajasthan 0.30 1.00
23 Sikkim 0.00 0.01
24 Tamil Nadu 1.54 2.82
25 Tripura 0.03 0.06
26 Uttar Pradesh 1.04 2.38
27 Uttaranchal 0.08 0.18
28 West Bengal 0.64 2.04
29 A& N Islands 0.01 0.01
30 Chandigarh 0.02 0.08
31 D & Nagar Haveli 0.00 0.01
32 Daman & Diu 0.00 0.01
33 Delhi 0.53 1.13
34 Lakshadweep 0.00 0.00
35 Pondicherry 0.03 0.06
36 All India 10.56 24.71
Source : National Building Organisation
The Demand-Supply mismatch in Tamil Nadu is second only to that of Maharashtra39
Sector Snapshot – Contd.
Demand Forecast for Homes in Chennai Source : CMDA Estimates
2001 2006 2011 2016 2021 2026
Population 7,040,616 7,896,230 8,871,228 9,966,636 11,197,763 12,582,137
Households 1,619,000 1,754,718 1,971,384 2,214,808 2,488,392 2,796,030
Total Housing Demand 62,520 193,638 413,012 659,479 927,151 1,237,482
EWS (30%) 10,796 58,091 123,904 197,844 278,145 371,245
LIG (35%) 21,882 67,773 144,554 230,818 324,503 433,119
MIG (20%) 12,504 38,728 82,602 131,896 185,430 247,496
HIG (15%) 9,378 29,046 61,952 98,922 139,073 185,622
Strong housing demand seen in the Middle Income and Lower Income segments40
Real Estate Residential - Snapshot
41
Category-wise sales performance (Mn Sq ft)
ONGOING PROJECTS Launched Sold (Till FY'11)
Apts Sq.Ft (Mill) Sale Val (Crs) Apts Sq.Ft (Mill) Sale Val (Crs)
Swarnabhoomi (Navaratna 1 & 2, Utsav, Maha Utsav, Sky Meadows)
2,130 2.8 530 1,219 1.27 197
Residential Projects (Existing) (Puspadruma, Viswasakthi, Savithanjali, Tapovan, Brindavan, L
akshna)3,668 4.1 1,177 1,255 1.5 323
UPCOMING PROJECTS
Number of Apartments Sq.Ft (Mill) Sale Val (Crs)
Swarnabhoomi 7,870 12.06 3,590.00
Residential Projects 959 1.38 272.65
Handed over around 270,000 sq ft of residential space in FY11, more than 0.5 million sq ft scheduled for handover in FY12
Real Estate Residential - Live project portfolio
Strong sales track record – 1.5 million sqft of value Rs. 343 crore sold till date42
SAVITHANJALI PUSHPADRUMA VISHWASHAKTHI TAPOVAN LAKSHNA BRINDAVAN
Category Urban Smart homes
Urban Smart homes
Integrated Township Villas Urban Smart
Homes Affordable
Homes
Location OMR, Chennai OMR, Chennai Tirupathi ECR, Chennai OMR, Chennai Sriperumbudur
No. of units 678 466 512 124 40 1,848
Saleable Area (Million Sq ft)
0.87 0.47 0.68 0.40 0.05 1.65
Sales (Till Mar’11) 149 465 260 8 37 370
Launch May 2010 Jan 2009 Mar 2009 Dec 2007 Sep 2010 Oct 2010
Completion Mar 2013 Oct 2011 Dec 2012 Dec 2013 May 2012 Mar 2014
Non Swarnabhoomi Projects
Real Estate Residential - Live project portfolio
43
Swarnabhoomi Projects
UTSAV MAHA UTSAV NAVRATNA SKY MEADOWS
Category Affordable homes Affordable homes Affordable homes Urban Smart homes
Location ECR, Chennai ECR, Chennai ECR, Chennai ECR, Chennai
No. of units 720 392 580 438
Saleable Area (Million Sq ft)
0.69 0.53 0.67 0.71
Sales (Till Mar’11) 663 56 495 5
Launch Oct 2009 Sept 2010 Feb 2008 Nov 2010
Completion June 2011 Oct 2012 Dec 2010 Oct 2013
Real Estate Residential – Key Highlights FY10-11
44
MARG ProperTies – Residential Business
Sales of 0.9 million sq ft (879 units) in FY2010-11,
sale value of Rs.228 crores
Total sales (ITD) till March 2011 is 1385 units (1.5
million sq ft) at sales value of Rs.343 crores
MARG ProperTies launched 2.97 million sq ft of new
projects in various categories in FY11, further 1.47
million sq ft of projects are in pipeline to be launched
in FY12
Projects like Pushpadruma, Lakshana and
Vishwashakthi (Phase1) are all sold out and are
scheduled for handover in the FY 2011 – 2012
Brand presence in South India has been enhanced by
the launch of MARG ProperTies Shoppe, first of its
kind in the real estate industry and recently launched
Mascot Mr. Joy, both have received tremendous
response
MARG ProperTies Shoppe
Construction in Progress
Real Estate Commercial – MARG Junction, Chennai
45
Development of a multi-use commercial building located on the IT corridor OMR, Chennai
Integrated development on 7.3 acres, built to green building norms and conceived to be a 1.8 million square feet of total development comprising
1,044,000 sq. ft for retail space (mall & multiplex);
270,000 sq. ft of office space;
517,000 sq. ft for 25 room hotel + 54 service apartments
Parking for over 1,600 cars and 1,200 two wheelers
For the Mall (Retail Space)
Project Cost - 488 crores
Financial closure has been achieved
Deals for 35% of the leasable space confirmed
Shagri-La Hotels signed up as operators for the hotel space
The mall is scheduled to commence operations in Q1FY13
Key Clients
Construction Progress Elevation
Other Businesses
Other Projects
47
Bellary Airport on BOT Basis Bijapur Airport on BOT Basis Multi Level Car Park (MLCP)
on BOT Basis
Location Bellary, Karnataka Bijapur, Karnataka Wallace Garden, Chennai
Concession 30 years + 30 years 30 + 30 years 20 years
Project Cost Rs 232 crores [Phase – I] Rs 108 crores [Phase – I] Rs 30 crores
Project Details
Spread over 900 acres; 650 acres for airside development and 250 acres
for commercial development
Spread over 727 acres; 542 acres for airside development; 185 acres
for commercial developmentLand Area 7,201 sq meters
Initial capacity to accommodate ATR 42 & ATR 72
Hotel with 50 rooms, Cold Storage facilities, etc. 300 Equivalent Car Spaces
Status
Signed the “Project Development Agreement” with the Government of
Karnataka
Signed the “Project Development Agreement” with the Government
of Karnataka
Discussion with various international developers
Discussion with various international developers
Financial Performance
MARG Limited FY10-11 Financial Highlights
49
INR Crores
Q on Q CAGR – 27%
Annual Growth
– 45%
Standalone Revenue Standalone EBITDA
Standalone PAT
MARG Limited (Standalone Entity)
50
Revenue Growth
PAT
EBITDAINR Crores
INR Crores
INR Crores
CAGR 70%
• MARG limited has seen impressivegrowth (CAGR - 60%) in the last 4years
• EPC has the highest share in revenuecurrently
• Margins change because of change inrevenue composition
MARG Limited (Consolidated)
51
Revenue Growth
PAT
EBITDAINR Crores
INR Crores
INR Crores
Consolidated turnover likely to be cross Rs.900crores, growth of 2.5 times over the FY10 revenueof Rs. 360 crores
Operational EBITDA likely to double, crossing Rs.150crores in FY11 as compared to Rs.83 crores in FY10
PAT likely to be more than Rs.17 crores in FY11, anincrease of about 50% as compared to FY10 levels
FY 2010-11 Performance
* Unaudited and Provisional
Human Capital
Mentor - Promoter
• Post-Graduate in Commerce and an Honorary from Kellogg School of
Management
• Promoted MARG Limited in 1994
• Ex Chairman of CII, Chennai Zone
• Vice-President - Executive Council of Indo-Australian Chamber of commerce
Memberships
Steering Committee , CII National Committee on Real Estate & Housing
Steering Committee, City Connect Program – CII Taskforce on Building
Inclusive Cities
CII Tamilnadu, CEO Forum
Indian Institute of Technology, Chennai, Rural Technology & Business
Incubator (RTBI)
Director, Business Advisory Committee Member, Great Lakes Institute of
Management, Chennai
Academic Council of the Anna University, Chennai
G R K Reddy
CMD – MARG Limited
53
Board of Directors
G Raghava Reddy
• Aged 75 years, a B.E, MIE with over 40 years of experience in infrastructure and construction industry
• Was involved in Nagarjuna Sagar Dam Diversion Tunnel, Nagarjuna Sagar Dam Right Canal atGundlakamma River, Godavari Barrage, Spillway works for Yellashwaram Reservoir etc.
V P Rajini Reddy• Aged 40 years, a B Tech and over 11 years experience in the area of IT& ITES.
• Instrumental in guiding technology inflow in the Company
Arun Kumar Gurtu
• Aged 64 years, a Fellow member of Institute of Chartered Accountants of India
• Has over 33 years of executive experience in manufacturing, construction, infrastructure & real estatedevelopment
Karan Jit Singh Jasuja• Aged 46 years, a Fellow member of Institute of Chartered Accountants of India
• Practicing Chartered Accountant & Management Consultant
Sai Baba Vutukuri
• Aged 44 years, an MBA from Scandinavian International Management Institute, Copenhagen,Denmark
• Expertise in wind power projects
Experienced Board with 3 active Independent Directors having expertise in Engineering, Infrastructure, Real Estate, Finance and Management
54
Human Capital - Snapshot
• The employee strength at MARG has grown with a
CAGR of 68% over last 3 years
• The total man years of experience in MARG is over
8500 years
• The average age of employees is 33 years
Growth in projects, revenue & net worth of the company is backed by the growing people strength
Employee Growth
Highly qualified employees
• MARG & its subsidiaries have strong technical
expertise with around 50% of staff having an
engineering degree
• Strong commercial, Finance, HR & Marketing
competence of MARG complements its technical
strengths
55
Awards and CSR
Awards
Listed by Dun & Bradstreet among “India’s Top 500 Companies2010”
India’s Most Admired Infrastructure Company 2011 at IndiaLeadership Conclave 2011
Excellence in Social Service at India Leadership Conclave 2011
Innovative CEO of the year to Mr. GRK Reddy at the IndiaLeadership Conclave 2011
CII Tamil Nadu Emerging Entrepreneur award to Mr. GRK Reddy forvision and willingness to Dream Big
Mr. GRK. Reddy has been awarded the ‘South East CEO ConclaveAward 2010’ for Corporate Social Responsibility – 31st July 2010
Awarded the prestigious Sir Visvesvaraya Industrial Award by All IndiaManufacturers organization (TNSB) – 16th Aug 2010
MARG has been acknowledged as the ‘Second fastest growingconstruction company (Medium Category) Award’ at the 8thConstruction World Annual Awards ’2010 – 19th Oct 2010
India Shining Star Award 2011 for outstanding work in CSR in theInfrastructure Sector by Wockhardt Foundation - 19th Feb 2011
3rd Construction Industry Development Council Vishwakarma Awards2011 for achievement in CSR – 7th March 2011
Karaikal Port recieved “Outstanding Achievement – PortDevelopment & Port Management” at SHIPPING, MARINE & PORTSWORLD EXPO 2010 on March 4, 2010, in Mumbai 57
MARG Parivarthan – A Chain of Change
MARG Parivarthan – ( ‘Chain of Change’) is the CSR brand of
MARG. Parivarthan is not about Corporate Social
Responsibility, but about transforming the society and the
neighbourhood in our areas of impact.
Education
Strengthening School Infrastructure
Supporting students through educational aids
Study Centres
Healthcare
Medical Camps
Awareness Programs
Skill Development
Collaboration with industry bodies and forums for training programs
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Thank You
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