2. Agenda
1. Economic overview
2. Key financials
3. Project details – EPC
4. Project details – Real estate
5. Acquisition
6. Business positioning & Way forward
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3. Indian economy continues to be on strong footing
Strong GDP growth to continue Huge spending ahead in
9.20%
infrastructure 145
#
8.50% GCF in Infrastructure 122
7.40% USD bn. 102
6.70% 85
71
59
FY 08 FY 09 FY 10 FY 11 E FY 10E FY 11E FY 12E FY 13E FY14E FY 15E
# RBI est. for FY11 UBS Estimates
FDI inflow getting stronger… …with significant investment in
construction, housing and real estate sector
Rs. bn.
2.21 Service
2.18
2.04 Sector
17% Construction
1.72 1.72
1.54 11%
1.21
Others
61%
Housing/
Real Estate
11%
Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Data for FY10
Total inflow of Rs. 25.9 bn.
Source: Citi research/UBS 3
4. Factors contributing to infrastructure and real estate growth
Strong FDI inflow
Govt. focus on in real estate,
infrastructure construction
development segment
Boost to
infrastructure
and real estate
growth
Easy availability of
Growth in IT/ ITES housing loan and
services affordable interest
rates
Infrastructure and real estate to show strong growth going ahead.
4
9. EPC business – ongoing projects
Significant ongoing projects
Tamil Nadu State Assembly Complex (Block B), Chennai
Ruby mill, Dadar, Mumbai
HDIL commercial complex, Vidyavihar, Mumbai
Neelkanth Palacia, mall & business centre, Mumbai
Kondhwa Reality, Pune
Savitribai Phule Shikshan Prasarak Mandal, Pandharpur
North Town, Chennai
Sinhagad Technical Education Society, Ambegaon, Pune
Order book ~ Rs. 44,300 million
Order backlog ~ Rs. 32,300 million 9
10. EPC business – new projects
New projects bagged during Q1 FY11
Factory – Legrand, Nashik
Pharma Plant - Gopaldas Visram, Mumbai
Bharti Realty Ltd, Ludhiana (Commercial )
North Town, Chennai (Residential)
Aamby Vally (villas), Lonavala (Residential)
TATA Housing, Lonavala (Residential)
Kondhwa Realty, Pune (Residential)
SMCC-Yamazaki Mazak, Pune (Commercial)
SMCC - Sumitomo Mitsui Construction Company
Order value of ~ Rs. 2,990 million
11. EPC business – completed projects
Project completed during Q1 FY11
Multi Level Car Park - Delhi Airport Cipla - Indore SEZ
Contract value of ~ INR 2,480 mn. Contract value of ~ INR 1,447 mn.
Construction tenure ~ 15 months Construction tenure ~ 18 months
Total constructed area ~ 1.2 mn. sq ft Total constructed area ~ 1.55 mn. sq ft.
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15. Forest County –phase I
Forest
County –
Project phase I
Type Residential
Location Pune
Total saleable area
(sq. ft.) 688,355
Total area sold
(sq. ft.) 575,680
No. of buildings 9
Total no. of
apartments 386
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16. Willows – phase II
Willows -
Project phase II
Type Residential
Location Pune
Total saleable
area (sq. ft.) 290,930
Total area sold
(sq. ft.) 49,960
4
No. of buildings (Bld. D,E,F,G)
Total no. of
apartments 126
Note : Bookings for bld. F & G
is yet to be started.
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17. Vista - phase II
Project Vista- phase II
Type Residential
Location Nashik
Total saleable
area (sq. ft.) 112,000
Total area sold
(sq. ft.) 43,700
4
No. of buildings (Bld. F,G,H,I)
Total no. of
apartments 112
Note : Bookings for bld. H & F
is yet to be started.
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18. Tulip-phase I
Project Tulip -phase I
Type Residential
Location Coimbatore
Total saleable
area (sq. ft.) 73,940
Total area sold
(sq. ft.) 73,940
2
No. of buildings (Bld. A,B)
Total no. of
apartments 48
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19. Hotel projects
Four Points Duet Hotel
Project Four Points (Duet) Novotel
Location Pune Pune
No. of keys 232 320
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21. Real estate business – completed projects
Project completed during Q1 FY11
Willows -
Project phase I
Type Residential
Location Pune
Total saleable area
(sq. ft.) 168,675
Total Area Sold
(sq. ft.) 152,265
No. of buildings 3
Total no. of
apartments 60
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25. Acquisition
90% of GMP Technical Solutions Pvt. Ltd at a cost of Rs 626 million
Turnover of GMP in FY 2010 was Rs 1267 million and PAT Rs 217 million
GMP has 3 divisions:
Manufacturing: Clean rooms, office partitions, door sets, storage racks
BMS: Integrated business management services; US FDA compliant for
pharma industry
QA Technical Services: Validation and certification of weights and measures
Acquisition to yield economies of scale. Synergy to strengthen capability to offer
turnkey solutions
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27. Synergizing EPC and Real estate business
Benefits
1. Risk diversification
2. Better quality and faster execution
3. Capability of turnkey real estate
projects
4. Faster reach to and understanding
of new locations
5. EPC facilitates market intelligence
gathering for real estate projects
6. Revenue-sharing model that cuts
risks
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28. Employees : Key strength to growth
Total Income vis-a-vis Manpower
Total Income No. of employees
(Rs. million)
10000 1000
Together
8000 800 Everyone
6000 600 Achieves
More
4000 400
2000 200
0 0
FY06 FY07 FY08 FY09 FY10
Total Income No. of employees
29. Awards during the quarter
Suzlon One Earth
Global headquarters executed by Vascon on its
plot on a built-to-suit basis for Suzlon
Rated Platinum by LEED, scoring 57 out of 58 points
Rated 5-star by GRIHA
Awarded as Best Corporate Building by AESA
Makes optimum use of wind, rain and solar energy
Acclaimed as “greenest corporate headquarters on earth”
Construction completed on schedule in spite of
overwhelming odds
LEED—Leadership in Energy and Environment Design
GRIHA—Green Rating for Inhabited Habitat Assessment
AESA—Architects, Engineers and Surveyors’ Association
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30. Way forward
Leading Player in
EPC, Real estate,
Hospitality and
Infrastructure
Foray into
Hospitality
Ventured into
Real estate
Started as a
EPC company
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31. Disclaimer
•This presentation and the accompanying slides (the “Presentation”), which have been prepared by Vascon Engineers Limited (the
“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever.
No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about
the Company.
•This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company
makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the
truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and
may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this
Presentation is expressly excluded.
•Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects
that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties
include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance
of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels
of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s
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obligation to update any forward-looking information contained in this Presentation. Any forward looking statements and projections made by
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Accordingly, unless an exemption from registration under the Securities Act is available, the Company’s securities may not be
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