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Institutional Equities
Exhibit 11: HCC Concessions structure
Source: Company
Key highlights of projects
Exhibit 12: HCC Infrastructure portfolio
Nirmal annuity project: The project is for four-laning of 33km road on the Hyderabad-Nagpur route at a cost
of Rs3.15bn. The project got operational 100 days prior to schedule in July 2009. The project is based on
annuity of Rs238mn (semi- annual) with a concession period of 20 years and the debt is financed at fixed rate
of 9.38% for 17 years.
Badarpur-Faridabad elevated expressway: The project is to develop 4.4 km elevated highway connecting
Delhi and Haryana at a cost of Rs5.72bn and equity investment of Rs1.72bn.The project, completed in
November 2010, reduced travel time by over 45 minutes.
Dhule-Palesner highway: The company got this project worth Rs14.2bn in a consortium with Sadbhav
Engineering. The project involves four-laning of the road from the Maharashtra-Madhya Pradesh border to
Dhule, connecting Mumbai and Agra, which will largely cater to industrial traffic. The project, which is around
75% complete, is expected to be completed by 3QFY12 (six months ahead of schedule).
West-Bengal project: The project scope involves four-laning of 256km road from Baharampore to Dalkhola
at a cost of Rs32.3bn in three concessions. The project is on track and is expected to be completed by
3QFY13.
HCC's Infrastructure
Equity
Debt
Concession
Place
Grant
COD
Status
Portfolio
Km
(Rsmn)
(Rsmn)
period
Nirmal BOT(Annuity) 33 Andhra Pradesh (NH-7) 630 2,520 Jul-09 20 Operational
Badarpur- Faridabad 4.4 Delhi 1,720 4,000 Nov-10 20 Operational
Dhule-Palesner/MP order 89 MP border 3,550 10,650 Jun-12 18 Under construction
Baharampore-Farakka 103 West Bengal 2,146 3,934 5,612 Sep-12 25 Under construction
Farakka-Raiganj 103 West Bengal 2,471 4,145 7,168 Sep-12 30 Under construction
Raiganj-Dalkhola 50 West Bengal 1,372 2,255 3,216 Sep-12 30 Under construction
Total 382.4 - 11,889 - 33,166 - - -
Source: Company, Nirmal Bang Institutional Equities Research
Lavasa - Key value driver
HCC holds a 65% stake in Lavasa Corporation (a township of over 12,500 acres under development in
Maharashtra) with an equity investment of Rs4.7bn, while the other major shareholders are Avantha group
(15%) and Venkateshwara Hatcheries (12.5%). Lavasa Corporation has planned to develop the project in four
stages. In the first phase, the company is developing 3,200 acres at Dasve and Mugaon. The first town under
the project Dasve was supposed to be operational by FY11. The company had filed the DRHP (draft red
herring prospectus) for its IPO on 14 September 2010 to raise around Rs20bn. On 25 November 2010, the
environment ministry served a show-cause notice to Lavasa seeking clarification on whether it has violated
environmental regulations along with directions to stop construction work. All this has delayed the
development process and fund raising plans through the IPO.
72 HCC