A PRESENTED BY :

PROJECT GOURAV GANGULI

KUSHAL GHOSH
ON RUDRANIL GHOSH
NABARUN GHOSH
INDIAN INDUSTRY
PRITHWIJIT GUHA
ANALYSIS PRITAM GHOSH
SATANIK DUTTA
(CONSTRUCTION)
 REVENUE FIGURES & TRENDS

 From the above diagram we can track the falling trend in the revenue of
construction industry in the last three quarters.
1. Commercial market is expected to grow at CAGR of 20% to
1. 22% from Rs
Booming 408 billion
Indian economy to Rs 1179 billion over the next 5
years
2. Growing housing and commercial space (like malls,
2. IT/ITES sector expected to require in excess of 250 million sq.
multiplexes) requirements
ft. of commercial office space by 2012-13.

3. Govt. thrust
3. Overall on infrastructure,
investment in construction infrastructure outlayto
activities is expected
etc.
double in the period 2006-07 to 2010-11 as compared to
2001-02 to 2005-06
4. Rapid Urbanization
4. Infrastructure, industrial and real estate demand of Rs.
5. 26,473
Growthbillion is expected
in IT/ITES sectortoat
materialize in the(source:
30% annually next five years
NASSCOM)

6. Burgeoning middle class with increasing disposable

income

7. Government investment in infrastructure creation

5.
8.  The government
Retail is targeting
sector facilitating an estate
real investment of US$ 20.38
growth
Figures are in terms of percentage to GDP
The above data is according to the 10th“ 5- year plans”
Information is collected from Construction Industry Development Council Surve
OPERATIONAL PROFIT OF THE
INDUSTRY
Major Players in the Construction
Industry Current
 Gammon India Limited

Developments
 Hindustan Construction Company Limited (HCC)

 IVCRL Infrastructures & Projects Limited (IVRCL)

The construction industry in India is the second largest
 Larsen & Toubro Limited (L&T)
contributor to the

national economy.
Nagarjuna Construction Company Limited (NCC)

 Simplex Infrastructures Limited

 Unitech Limited
The Indian construction industry is the second largest
employment generation avenue in the country.
 ERA Infra Engineering Ltd

 Ircon International Ltd

 JP Associates

The Planning Commission of India

 GMR Infrastructure Ltd published the 11th

Economic Plan in 2007, and Punj set aside $492 billion as

Lloyd Ltd

investment outlay for infrastructure

 Lanco Infratech development.

 Madhucon Projects Ltd

 Nitco Ltd
 In future there will be consciousness about
 The Commonwealth Games - 2010 in New Delhi
environment safety and health standards. The demand
throws mega opportunities for Building Material
for the green construction, green buildings will become
Companies, Construction Equipments & Technology
large.
companies.
 The government’s commitments to infrastructure
development,
 Projects areespecially in the power and road sectors,
coming up to develop Special Economic
are likely to add further impetus to the industry’s
Zones worth US $ 2.5 billion.
growth.

 The government anticipates more private sector

 Upgradation and modernization of airports will
investments in infrastructure during the Eleventh plan
require US$ 33 billion investment in the next ten
period and expects the investments to grow from
years.
around 1.15 per cent of GDP in FY07 to 2.82 per cent by
FY12.
 The real estate market is projected to grow to
 Increased investment outlay and higher private
US$60 billion by 2010 at a CAGR of 40%.
 For regulatory efficacy & clarity in policy, Government of India has asked
to develop a ‘model’ legislation for infrastructure regulatory regime.

 Considering the volume of work in India, sector specific apex regulatory

bodies are required with well complementation from economy-wide
regulatory and competition authority in the states.

 An omnibus Regulatory Appellate Tribunal for all appeals against

sectoral infrastructure regulators needs to be established.

 Multi-stakeholder participation should be the way forward, which can

effectively take care of several concerns with regard to regulatory efficacy
and accountability.

 Benchmarking followed by an independent review over the years, are

highly recommended to hold independent regulators accountable.

 Consumer organizations are strengthened with resources for effective

advocacy.

 Formalized relationships are established between Regulators and

Competition Authority to avoid conflicts.
 Market Share of Top 3 Companies
(as per revenue of 2009 – 3 quarters)

# Approximate Total Revenue of the Industry – 56117.10 crores

 Share of Larsen & Toubro – 46.21 % i.e. 25932.29 crores

 Share of Punj Lloyd – 10.26 % i.e. 5760.42 crores

 Share of IVRCL Infrastructures – 7 % i.e. 3931.11 crores

 TOP 3
LAST 5 YEARSPLAYERS
– PROFIT AFTER TAX (PAT)
REVENUE (NET SALES)
RETURN ON CAPITAL EMPLOYED (ROCE)

Financial LARSEN AND TOUBRO PUNJ LLOYD IVRCL

Years INFRASTRUCTURES
PAT Net Sales ROCE PAT Net Sales ROCE PAT Net Sales ROCE
(Cr.) (Cr.) (%) (Cr.) (Cr.) (%) (Cr.) (Cr.) (%)

March ‘05 983.85 13189.71 22.21 8.14 1429.43 21.07 56.71 1053.49 15.77

March ‘06 1012.14 14776.95 24.88 35.15 1368.21 11.03 92.96 1517.89 13.59

March ‘07 1403.02 17645.29 29.82 61.59 2238.85 10.22 141.46 2334.88 14.83

March ‘08 2173.42 24946.11 26.72 221.44 4511.10 11.92 210.48 3686.03 17.12

March ‘09 3481.66 33856.54 24.14 321.10 6919.87 12.42 225.97 4972.99 17.99
 Comparison of Growth Rates with Changing Trends

COMPANY YEAR 2004-05 2005-06 2006-07 2007-08 2008-09

↓ →

Larsen & Toubro 37.9 11.1 19.9 41.4 36.5

Punj Lloyd 2.1 -4.3 63.6 100 54.7

IVRCL Infrastructure 36.2 44 53.8 57.8 34.9

Figures
Figures
in Percentages
in Crores
SOURCES OF INFORMATION :

KNOWLEDGE PORTAL : www.cygnusindia.com

THANK YOU
OTHER RELEVANT WEBSITES : www.moneycontrol.com

MAGAZINES : Business World (2nd November 2009)

Special issue