$SULO Disclaimer
The presentation has been prepared for information purpose, it is not a solicitation of any offer to buy or sell any security or instruments.
This presentation contains forward-looking statements. Forward-looking statements in this presentation are subject to number of risks and uncertainties, some of which are beyond our control. Our actual results, performance, prospectus or opportunities could differ materially from those expressed in or implied by the forward looking statements .
These forward looking statements are made as of the date of this presentation. We undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events or otherwise, except as required by law.
“BF Utilities” refers to BF Utilities Limited and its subsidiaries and affiliates.
2 BF Utilities Limited BF Utilities : Overview
3 Overview of the Kalyani Group
Kalyani Group is one of the leading industrial houses in India, focusing on the following sectors: Engineering Steel Automotive & Non-Automotive Components Renewable Energy & Infrastructure and Specialty Chemicals Bharat Forge Limited, the flagship company of the group, is one of the leading commercial forging companies globally, specializing in highly value-added and critical products (market capitalization: $1.3 billion(1); Revenues: $1.1 billion) A global forging conglomerate with a capacity of over 750,000 TPA spread across 12 locations and 6 countries Listed on the Bombay Stock Exchange and National Stock Exchange in India Foray into capital goods for the power sector to capture the India infrastructure growth opportunity; has set up joint ventures with Alstom, Areva and National Thermal Power Corporation Mr. B N Kalyani (Promoter and Chairman), with over 27 years of experience, is the principal driving force behind the growth and success of the Kalyani Group of Companies
Notes: 1. As of march 15,2010
4 BF Utilities Limited BF Utilities: Snapshot of Key Projects
BF Utilities Limited
Bangalore Mysore Infrastructure Corridor (BMIC) Project Hubli - Dharwad Road Project
Sole manager to execute the BMIC project 30km bypass road connecting the twin cities of Hubli and One of the largest integrated infrastructure development Dharwad in North Karnataka project in India Operational since last 9 years with current toll collection of 164 km tolled expressway connecting Bangalore and around Rs.220 million per annum Mysore including 3 Kms of Elevated road at Bangalore Notified as part of the NH4 (Pune-Bangalore), also part of Side the Golden Quadrilateral Road Project of India Development of infrastructure and amenities including townships, with state-of-the-art connectivity Nandi Economic Corridor Enterprise (“NECE”) is an SPV 1JRQ1V` V promoted by NICE to execute a part of Section - A of the BMIC project Wind power plants set up at Thoseghar in Satara District 62 km long toll road in Bangalore side Maharashtra with a total capacity of 18.33MW Interchanges and its Developments Set-up to satiate the power requirements of the Kalyani Part of Township – 1 (1732 Acres out of 2775 Acres) Group companies
5 BF Utilities Limited Corporate Structure
BF Utilities* (Market Cap - $768MM)**
100% 74.5% 69.53%
NHDL Wind Mill NICE (Hubli-Dharwad (18.33MW) Bypass)
64.8% 100% 100%
NECE Part of Section A, Various Utilities (Part of Section A) Section B & C
Power Water Telecom Road & Expressway & Five Townships Bundled Utilities Interchange Part of Township 1 Interchange Development (e.g. Bus / Truck Development Development Development (Incl. Part of (62 km Toll Road) (99 km Toll Road) Township 1) Terminals, Hospitals, etc.)
Notes: * Post de-merger of BF Investment Limited pursuant to a Scheme of Arrangement recently approved by the High Court ** As of March 15, 2010
6 BF Utilities Limited BMIC Overview
7 World Class Infrastructure Project
Nandi Infrastructure Corridor Enterprise Ltd. (NICE) is implementing the Bangalore Mysore Infrastructure Corridor (BMIC) Project, a world class integrated infrastructure development project, which consists of : A 164 km tolled expressway connecting Bangalore and Mysore with following road components : o a 9.1 km Link road connecting Centre of Bangalore with the Peripheral Road o a 41 km Peripheral Road around the City of Bangalore linking Hosur Road - NH-7 to Tumkur Road – NH-4 o a 111 km Expressway between Bangalore & Mysore o a 3 km Elevated Road at Bangalore Side 5 New Township Developments along the Expressway between Bangalore and Mysore Concomitant development at the interchanges along the Peripheral Road and Link Road Rights to supply power, water, telecommunication services, sewage and waste water management etc. Single planning authority – Bangalore Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) – for the entire project Concession period for toll road is 40 years including 10 years of construction period Section --CCSection --BB Section --AA
• Expressway: 12Km to 36 Kms • Link Road: 9.1 kms • Expressway: 36Km to 111 Kms • Interchange Developments • Peripheral Road: 41 kms • Interchange Developments • Townships: Commercial • Expressway: 0Km to 12 Kms • Township: Eco Tourism Center Center, Heritage Center and • Interchange Developments • Elevated Section of the Link Road at Bangalore Side Industrial Center • Township: Corporate Center
8 BF Utilities Limited Close Proximity to Bangalore
With Bangalore’s population approaching 8.5 million, it is believed that implementation of the BMIC Project holds the key to addressing the infrastructure problems of the city. Growth Patterns in Bangalore BMIC Project Location Overview Devanahalli
Towards Devanahalli
Hebbal Brookfields
Mahadevapura Whitefields CBD
Mysore Road Proposed Hi tech Sarjapura Road Bannerghatta Road City Kanakapura Road
Hosur Road
Existing Development Corridors Future Development Corridors
9 BF Utilities Limited Section – A Infrastructure Development Nearly Complete
Project Overview The project entails development of 62 km of Toll Road and one Township near Bidadi 9.1km Link Road linking city centre to Outer Peripheral Road 41km Outer Peripheral Road linking Hosur Road to Tumkur Road 12km Expressway up to Bidadi Township – 1 (Corporate Center) near Bidadi with 2775 Acres Total Land for Section – A is 7,290 acres (Out of this NECE Land is 6,173 Acres and NICE Land is 1,117 Acres) Integral part of Bangalore urbanization infrastructure
Project Status Almost 88% of toll road work is completed Total 4,188 acres out of 7,290 acres of total land has been acquired by GoK and transferred to the NICE / NECE Balance expected shortly pending few documentation requirements
10 BF Utilities Limited Significant Value in Section B and C
The project entails development of 99 km of Toll road, four self- Project Overview sustained townships and 3 kms of Elevated road at Bangalore Side Expressway from Bidadi to Mysore Development of up to 400MW of power plants with exclusive right to transmit and distribute power to the BMIC Development and maintenance of water / waste water and sewage treatment facilities for BMIC Exclusive right to use 155 million litres of water per day from the Cauvery river for BMIC and the right to draw 85 million litres of water per day from Bangalore Water Supply & Sewerage Board Right to contract for telecommunication and broadcasting services within the BMIC area
Project Status Work on Section B and C expected to start in Oct / Dec 2010
11 BF Utilities Limited Superior Toll Road Specifications and Planning
Superior specifications / planning with room for Current Toll Collection (Rs. Million)
revenue upside 40 36.5 34.8 35 31.0 32.0 Major expenses on the toll road already incurred 27.8 28.5 30 25.5 25.3 26.9 26.3 22.6 Stable income from toll linked with traffic growth 25 20 Current toll rates are at ~35% discount to 15 10 government sanctioned rates 5 0 09 09 09 09 09 10 10 Concession agreement permits further 10% rate 09 09 09 09 ------Jul Oct Apr Jun Jan Feb Sep Nov Dec Aug escalation every year; implying significant May revenue upside Significant ancillary revenue streams Triggers For Enhancing Toll Collection “OOH” advertising, bus and truck terminals, etc. Potential revenue upside once connectivity to Connectivity at IC 2/7 (Bannerghatta) Restoration of Original Toll Rates airport is established and Expressway from Bidadi Commencement of Operations on Expressway to Mysore is completed.
12 BF Utilities Limited Townships: Significant Value Creation Potential
Large contiguous and well connected land bank available in a Tier 1 city in India Township to serve demographic needs of the area, provide decongested living experience Infrastructure first, development later model Unlike SEZs where the land is leased and not owned, land in this case is free hold with clear and absolute title, free of all encumbrances Planned multifaceted development Quality and reliability of infrastructure Vastly improved connectivity Expansion of Bangalore on the peripheries Zoning in place with Single Area Planning Authority (BMICAPA) Plans to develop 200-300 million sq ft of land in the next 5 – 7 years Eligible for a 10 year tax holiday under section 80I(A) (subject to MAT)
13 BF Utilities Limited Other Key Assets
14 Hubli-Dharwad Bypass Road
Project 30km bypass road connecting the twin cities of
Overview Hubli and Dharwad in North Karnataka to Dharwad End Dharwad Goa 1 Toll Plaza avoid city traffic and congestion Crossing End Located right in the middle of the Pune- Toll Plaza 2 Bangalore stretch (835km) of the NH4
Key Already completed and operational since last 9 Features Tarihal Crossing 3 years with current toll collection of around Toll Plaza Rs.220 million per annum Traffic growth at 11 .5% CAGR, toll collection Kalghatgi Crossing 4 Toll Plaza Hubli End growth at 14.2% CAGR for past 5 years Toll Plaza Ayodhyanagar 5 Notified as part of the NH4 (Pune-Bangalore) Crossing Toll Plaza 6 which is part of Golden Quadrilateral Road Project of India Toll rate escalation at 10% p.a. as compared to current projects at inflation rate
Concession 26 years of concession period including 1 year construction for Phase I and 2.5 years for Agreement Phase II Date of Signing of BOT Concession Agreement: 05-Feb-1998 Date of Commencement: 06-May-1998 End of Concession Period: 05-May-2024
15 BF Utilities Limited Wind Energy Farm
18.33 MW wind farm spread over an expanse of 300 acres at Thosegar in Satara district, Maharashtra Power generated utilized by Bharat Forge Ltd. at its Pune plant Consists of 51 wind energy generators (WEGs) of 230KW and 11 WEGs of 600KW Out of the total capacity, 14 .65 MW of eligible capacity has availed carbon credits benefits Wind farm has been generating power at a plant load factor of ~25% which is one of the highest in the state Has received several industry awards and accreditations
16 BF Utilities Limited Appendix
17 BF Utilities: Overview of Toll Road Assets
Toll Road Assets
Section Kms Current Status Company
Link Road 9.1 Completed NECE
Peripheral Road 41.0 Nearly completed NECE
Expressway till Bidadi 12.0 Under construction NECE
Expressway from Bidadi to Mysore 102.1 To start in Oct / Dec 2010 NICE (incl. elevated road)
Hubli Dharwad Bypass Road 30.0 Operational NHDL
Total 194.2
18 BF Utilities Limited NECE Overview
19 BF Utilities Limited NECE Location Map
20 BF Utilities Limited NECE Toll Road Specifications and Planning
Total length of the road ––62km;62km; total project cost ––RsRs 20.4 billion. Cost/Km is high compared to a typical highway project due to International quality standards followed for the road construction; and
The Resettlement & Rehabilitation (R&R) package costs to build quality infrastructure
Old House New House Ruined Old Temple New Temple
21 BF Utilities Limited NECE Toll Rates Summary
Government Sanctioned Rates (As per Toll Agreement, for the Year 2010)
Section km Car Bus Truck LCV MAV 2W HosurRoad-BannerghataRoad 7.9 25 67 44 26 47 10 BannerghataRoad-KanakapuraRoad 6.8 21 58 37 22 40 9 KanakapuraRoad -Mysore Road 8.2 26 70 45 27 49 10 Mysore Road-MagadiRoad 9.5 30 81 52 31 57 12 MagadiRoad-TumkurRoad 7.5 23 63 41 25 45 9 Mysore Road -TumkurRoad 17.0 53 144 93 56 102 21
NECE Current Charges
Section km Car Bus Truck LCV MAV 2W HosurRoad-BannerghataRoad 7.9 15 44 29 17 31 6 BannerghataRoad-KanakapuraRoad 6.8 13 38 25 15 27 5 KanakapuraRoad -Mysore Road 8.2 16 46 31 18 33 6 Mysore Road-Magadi Road 9.5 19 53 35 21 38 7 Magadi Road-Tumkur Road 7.5 15 42 28 16 30 6 Mysore Road -TumkurRoad 17.0 33 95 63 37 67 13
22 BF Utilities Limited Actual Photos of BMIC Project
23 BF Utilities Limited Thank You
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