Untitled

November 2013
Mahavir Roads & Infrastructure Pvt Ltd
The Story so far

2

Growth Trajectory so far Promoters Background Financial Snapshot Order Book Group Companies Board of Directors Key Management Organisation Chart Typical Project Cycle Backward Linkages Support Infrastructure Quarry, Machinery SCOT Analysis Past Projects Profile
Private & Confidential
Growth Trajectory so far

3
1960sTrading in all types of building material
1980s Quarrying, manufacturing of stone metal products
Mid 80s Bldg material supplies to Municipal Bodies, others contractors & corporates
1994 Pvt contractor, registered as Class A contractor with Municipal bodies
1996 onwards Principal Contractor / JV-consortium
Promoters Background (1)

4
Vasantlal Kikavat, age 75 originally from Rajasthan
Arrived in Mumbai at the age of 13 with no ware withal Worked in various industries (hardware retailing / gas station etc) Included, transportation aids to other manufacturers who were settled in cash, thereby generating higher sales with better margins Started bidding for Municipal tenders for supply of stone metal
Initially, worked as an employee for around15-20 years
Started trading all kinds of building materials in and around Mumbai
1963, incorporated Mahavir Stone Supplying Co
1983-84, acquired crushers and entered manufacturing 1985, eldest son Jitendra Kikavat joined the business

He spearheaded foray in the infrastructure space Besides, own manufacturing output, they started doing cash buyouts of production from other producers
Promoters Background (2)

5
1986-91, Mahavir Sales Corp operated as a trading Co 1991, second son Nilesh Kikavat, joined business
He took over the responsibility of quarry sites and logistics management
1994, Started Mahavir Construction Co with a vision to be a prominent player in the infrastructure space 1993-95 worked as sub-contractor for road works & also acted as contractor for private entities 1995, registered with BMC and various govt. bodies, directly as A class contractor 1996-2006, worked on a no. of prestigious projects 2006, Converted Mahavir Construction Co to Mahavir Roads and Infrastructure Pvt Ltd with

Vasantlal Kikavat as Chairman / Mentor His 4 sons being directors handling key areas in the Company
The promoters have grown the business from a stone & crushed metal manufacturing / supplying activity in and around Mumbai to excelling in executing roads and other infrastructure projects
Group Companies
6
Name of Co Promoter Ownership

MRIPL 100%
Key Quarry assets & RMC Units

Quarry: Panvel & Turbhe RMC Units: Panvel, Turbhe, BKC, Pen Asphalt Units: Turbhe, Panvel.
Nature of operations
Production of Huge aggregate, Crush Sand (Environmental substitute of Natural Sand), making Roads, Highways, Runways, Bridges, Tunnel, Real Estate, Developers, STP, WTP, Jetties & Developers. Sale of quarry through put Trading Co
Transactions with MRIPL

NA
Mahavir Link Associates
100%
A quarry in Turbhe NIL
Supply of stone metal
Mahavir Stone 100% Supplying Co

Board of Directors
7
Vasantlal Kikavat Age 75, He is first generation entrepreneur, a visionary under whose
Chairman leadership the business has grown over the years from stone trading to road construction & other infrastructure projects Age 45, Commerce graduate, gifted with a dynamic personality, he has spearheaded the groups foray into road construction & infrastructure projects. Over the last 25 years, he has successfully handled a number of projects and currently oversees marketing and project execution Age 39,Commerce graduate, Has experience of over 20 years in stone quarry lines and handling overall production of aggregate crush sand, RMC and overall machinery operation. Currently, he looks after entire production Age 36, B.E (Civil), Has experience of 12 years in handling various projects of infrastructure i.e. roads, bridges etc. Currently, oversees project implementation Age 36, Commerce graduate, Has experience of over 12 years in handling firms accounts, banking and finance,. Currently overseas the entire finance function along with trusted consultants
Jitendra Kikavat
Managing Director
Nilesh Kikavat
Director
Pawan Kikavat
Director
Pankaj Kikavat
Director
Organisation Chart (HO)

8
Managing Director {Jitendra Kikavat}
Executive Director Finance {Pankaj Kikavat}
Executive DirectorProduction {Nilesh Kikavat}
Executive DirectorProjects (Execution& Billing) {Pawan Kikavat}
Project Manager(s)
Quality Surveyor(s) & Billing Engineer(s)
Material Engineer(s)
Mechanic(s)
Highway Engineer(s)
Site Accountant
Site Supervisor(s)
Organisation Chart (Plant)

9 Nilesh Kikavat DirectorProduction
Q.A / Q.C
Plant Management
Operations & Maintenance
Administration
QC Engineers
Lab Technicians
Plant Operator(s)
Conveyor Operator(s)
Electrician(s)
Mechanic(s)
Lab Helper(s)
Plant Helper(s) & Labour
Project Execution team Hierarchy

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Managing Director Project Manager

Site Engineer(s) {Execution} Supervisor(s) Site Engineer(s) {Billing}
Site Labour
Typical Project Cycle (1)

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Tracking newspapers, websites of various Municipal and government departments for short listing projects of interest Bid application is made and submitted after site survey/ cost estimations
Technical Bid (typical terms)

Work experience (min 75% of the work covered by the tender should have been done in an earlier assignment) Own supporting infrastructure (dozers / dumpers / pocklains etc) Bid Capacity = (A * N * 2) B where

A = Annual turnover of last 5 years (highest, scaling factor 10%) N = No. of years prescribed for completion of work in respect of bid invited B = Value of existing commitments & on going works to be completed over the period for which work is to be completed under the current bid
Financial Bid
Rates for various jobs are required to be quoted this may be at, above or below the reserve price indicated
Typically, earnest money deposit of 1% is required to be deposited along with the bid/tender
Typical Project Cycle (2)

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If lowest bid, then Letter of acceptance is given Performance Bank Guarantee is to be submitted within stipulated time period Work execution order is given

Objections to be raised in case site not clear etc All work delivery period to be calculated w.r.t. work order date
RA bills generated from time to time as per terms After last RA and inspection Work Completion certificate to be obtained Work Completion Certificate determines the date from which maintenance liability starts Normal tenure of defect liability is as under

Coal tar roads 3 years Concrete roads 5 years
For covering defect liability 5% Bank guarantee or similar retention money or any combination thereof is maintained
Backward Linkages
13
Stone Metal & RMC are the essential ingredients for road making
MRIPL has an assured steady supply of stone metal & RMC
Any surplus requirement, if any or in case of out of station projects, material is purchased from open market Adequate workings on sourcing assumptions done before bid/tender is filed
Within the group the following capacities exist

Units
Turbhe Quarries Panvel Quarry Turbhe RMC Panvel RMC BKC RMC Pen RMC
Capacity
450 tons per hour 350 tons per hour 30 m cube an hour 60 m cube an hour 60 m cube an hour 60 m cube an hour
Remarks
A typical day comprises of 14-15 working hours (two shift). A typical week is 6 working days. Every site / quarry/ RMC has a electrician /mechanic to make sure that there are minimal stoppages
Support Infrastructure
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Machinery type Crusher Plant small, 60MTPH Crusher Plant large, 200MTPH Crusher Plant large, 150MTPH Batchmix Plant, 120MTPH RMC Plant, 60 m Cube RMC Plant, 30 m Cube Asphalt Plant, 60MTPH Wet Mix Plant, 100 & 200MTPH Weighbridge Consumer Petrol Pump Slip Form Pavers Cranes
Nos. 5 1 2 1 3 1 1 2 7 1 2 5
Equipment Type JCB Pock lain Dumpers / Tippers Transit Mixers Soil Rollers Asphalt Rollers Sensor Pavers Titan Paver Motor Grader Bitumen Sprayer Concrete Pump Concrete Boom Place
Nos. 30 15 125 50 10 15 4 1 3 5 2 1
Quarry, Machinery - Panvel

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The quarry site at Panvel was acquired with a vision to be one of the first movers in that region as also to act at a support should there be concerns from environmentalists with respect to sites in Turbhe
The machinery for the Panvel site was acquired at a significant low price (as compared to importing it) from a Hyderabad based reputed vendor having German designing abilities
Quarry, Machinery - Panvel

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200 MTPH CRUSHER
The machinery for the Panvel site was acquired at a significant low price (as compared to importing it) from a Hyderabad based reputed vendor having German designing abilities
Heavy Machinery Site(1)

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Concrete Laying with Boom Placer at Bonkode Flyover
Heavy Machinery Site(2)

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Concrete Slip Form Paver at Site

Quarry, Machinery-Turbhe(1)
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Asphalt Plant
Wet Mix Plant
W.S.I Crusher Plant
Crusher Plant
Crusher loading area
RMC Plant
Quarry, Machinery-Turbhe(2)
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Quarry Area
Pock lain Use at Quarry
Excavator at Quarry
Small Crusher Plant
Small Crusher Plant
Crusher Plant (Side View)
Quarry, Machinery-Panvel & Pen

21
Asphalt Plant
Wet Mix Plant
Site Office at Pen
WMM Plant
Rmc Plant Pen 60 Cum
RMC Plant Panvel 60 Cum
Past Projects - Summary

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Consistent track record of delivering in time and with no compromise to quality

No bank guarantee enchased till date No delay penalty applicable till date Site not being clear Delay in providing of design inputs First amongst many to get itself registered with BMC/PWD/CIDCO/NHAI as a contractor Preferred JV partner by the bigger league players

Technical lags in project completion is mostly on a/c of external reasons, like

Impeccable execution track record

Has worked with Nagarjuna Constructions (world bank aided project), Pratibha Constructions and Prakash Constructions Currently, bidding for projects with reputed industry players
The Company has rapidly moved up the value chain

From material supplier to subcontractor JV partner principal contractor From earthwork asphalt roads concrete roads sewage projects bridges building construction (currently there are 4 projects being worked on REAL ESTATE)
Past Projects Profile Road/Highway (1)

23
Name of Work Type of Work
Jogeswari Vikroli Link Road Construction of 4 lane road (each side) MMRDA JV with Nagarjuna (world bank aided project) 2003 2008
Department
Date of starting Stipulated completion date
Construction of four lane (either side) road, link road (eastern and western suburbs). The project was world bank aided and enjoyed excise / customs exemption
Actual Completion date
2008

24
Kharghar Project Asp. Roads, C.D. Works, Elect work, Fountain, Horticulture CIDCO Feb 2001 April 2002
Department Date of starting Stipulated completion date Actual Completion date
March 2003
Kharghar project with the famous Utsav Chowk with a tint of Roman Architecture and flexible pavement

25
Concretization of Road at Worli Concrete Road
MCGM May 2008 Nov 2012
Nov 2012
Concrete Road adjoining to Bandra Worli Sea Link Project


26
Reclamation Earth / rock filing Earth work & rock filling from end. Improv flyover to toll plaza on Bandra site JV with Prakash / Niraj Structurals July 1999 Jan 2001
Department Date of starting Stipulated completion date
Reclamation Earth filing and rock fill work in creek area of reclamation of Bandra Worli Sea Link Project
Jan 2001

27
APMC Road Concretisation Works (Road) NMMC May 2008 March 2009
March 2009
Vashi APMC Road with Slip Form Paver

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Strengthening of road at BKC Concrete work
MMRDA April 2007 April 2008
July 2008
Commercial Hub of Mumbai BKC concretisation of road from Kala Nagar Junction to LBS Marg with SLIP form Paver

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Name of Work
Strengthening of road at BKC at G Block Concrete work
Type of Work
MMRDA April 2009 April 2008
July 2008
Commercial Hub of Mumbai BKC concretisation of road In G Block with SLIP form Paver

30
Name of Work
Part Concretisation of CST Airport Concretization
Type of Work
GVK - MIAL Aug 2008 Dec 2008
Dec 2008
Concretisation of Runway at Chhatrapati Shivaji International Airport, Mumbai for GVK - MIAL

31
Concretisation of LBS Marg Concretization
Department
Municipal Corporation of Greater Mumbai Dec 2003 Feb 2005
Date of starting Stipulated completion date Actual Completion date
Feb 2005
Concretising of L.B.S. Marg at Vikhroli Park Site for MCGM

32
Sahar Road Concrete Road
JV with Pratibha Industries, MMRDA Feb 2004 March 2005
Feb 2007
Widening / Construction of Sahar Airport Road from Western Express Highway to Sahar International Airport

33
Dhaku Road Construction of Concrete Road
JV with Pratibha Industries, MMRDA Feb 2004 Mar 2005
Construction of B.D. Sawant Marg from Central Road MIDC to Western Express Highway, Mumbai
Feb 2007

34
Ghodbunder Road Widening and construction of road from Ghodbunder Road -Waghbill Village Thane Municipal Corporation May 2000 Oct 2000
Widening / Construction of Road from Ghodbunder Road to Waghbill Village for TMC
Oct 2000

35
Ghat Sion-Panvel Improvement of Ghat / Curve PWD July 2001 July 2002
Dec 2002
Improvement of Ghat / Curve on Sion Panvel Road for PWD
Past Projects Profile Bridges(1)

36
Gwalior Project Four laning of road NH3, Agra Gwalior and bridge making NHAI May 2001 June 2003
Precast Launching System & Asan Bridge with Well Sinking system
June 2004
Agra Gwalior Road & Kunwari Bridge over Chambal river


37
Seepz Flyover Flyover
MMRDA May 2005 June 2007
June 2007
SEEPZ Flyover at Andheri


38
Bonkode Flyover Three Lane Flyover At Thane Belapur Road NMMC Aug 2010 Dec 2011
March 2012
Bonkode Flyover Three Lane Flyover


39
Bonkode Flyover Three Lane Flyover At Thane Belapur Road NMMC Aug 2010 Dec 2011
March 2012
Bonkode Flyover Three Lane Flyover

Past Projects Profile Real Estate(1)

40
Name of Work
Construction of Fire Station at Kharghar Fire Station Building CIDCO Ltd. April 2010 Dec 2011
Type of Work
Feb 2012
Staff Office Building, Fire Station Parking, Staff Quarter, Drill & Smoke Room

41
Name of Work
Type of Work
Feb 2012

42
Name of Work
Type of Work
Feb 2012

43
Name of Work
Construction of Fire Station at D & R Block MUDC Fire Station Building MIDC Aug 2010 Feb 2012
Type of Work
Dec 2012
Staff Office Building, Fire Station, Staff Quarter D & R Block


44
Name of Work
Construction of Fire Station at D & R Block MUDC Fire Station Building MIDC Aug 2010 Feb 2012
Type of Work
Dec 2012
Staff Office Building, Fire Station, Staff Quarter D & R Block


45
Name of Work
Construction of Residential & Commercial Complex at Bansawara, Rajasthan Residential & Commerical Complex Mahavir Roads & Infr. Pvt. Ltd. Aug 2010 Feb 2012
Type of Work
Feb 2012
Residential & Commerical Complex


46
Name of Work
Type of Work Type of Work Department Department Date of starting Date of starting Stipulated completion date Stipulated Actual Completion completion date date Actual Completion date
Construction of Residential & Complex at Commercial Bansawara Complex at Bansawara, Residential Rajasthan Complex Residential & Mahavir Roads & Commerical Infr. Pvt. Ltd. Complex Mahavir Roads & Aug 2010 Infr. Pvt. Ltd. Aug 2012 2010 Feb Feb 2012 Feb 2012 Feb 2012
Residential Complex

47
Name of Work
Residential & Commercial Complex


48
Name of Work
Residential & Commercial Complex


49
Name of Work
Type of Work Type of Work Department Department Date of starting Date of starting Stipulated completion date Stipulated completion date Actual Completion date Actual Completion date Metro Stations
Construction of Residential Six Elevated Complex Metro Station at Bansawara including one terminal station Residential for NMM 1 Complex Metro Stations Mahavir Roads & Infr. Pvt. Ltd. CIDCO Ltd. Aug 2010 June 2012 Feb 2012 April 2014 Feb 2012 April 2014

50
Name of Work
Type of Work Type of Work Department Department Date of starting Date of starting Stipulated completion date Stipulated completion date Actual Completion date Actual Completion date Metro Stations
Construction of Residential Six Elevated Complex Metro Station at Bansawara including one terminal station Residential for NMM 1 Complex Metro Stations Mahavir Roads & Infr. Pvt. Ltd. CIDCO Ltd. Aug 2010 June 2012 Feb 2012 April 2014 Feb 2012 April 2014
SCOT Analysis
51
Strengths
Execution capability Backward linkages Hands on promoter(s)
Concerns
Absence of an established second line of management Concentration on road making, low product diversification
Threats
Operations are concentrated in Mumbai Disruptive pricing by Competitors
Opportunities
Huge external market opportunity Ambitious govt. plans and spending in the roads and infrastructure sector
The Road Ahead

52
Vision Quality Policy Business Strategy

Past
Strategy in play Future Strategy Product & Process Innovation Strategy
Key Risks
Vision
53
Create a USD 1 billion business in Infrastructure space with significant presence in road making over the next decade Extend market reach and project offerings Invest in people and state of art equipment and technologies
Profitable growth and consistent movement up the value chain Venture into other Infra projects Pioneering Road Making & bridges Contractor / JV partner Sub-contractor
Quality Policy
54
To strive to deliver products that meet and exceed customer expectations of quality, delivery and cost
Committed to operate every aspect of the business to standards that offer highest possible quality of service to all clients
Progressive Management style encourages quality culture Continual improvement in processes & products through Corrective & Preventive Actions (CAPA) Continual improvement in product quality by process control & variability reduction Upgradation of manufacturing technology and skills
Past Strategy in play

55
Leveraging current core competence to develop competitive advantage

Back ward linkages (assured supply of stone metal and RMC) Competitive pricing thereby creating entry barriers Careful bidding for tenders, deliberately exiting low value add contracts Focus on developing mastery in road making Adherence to delivery time lines No compromise to quality Each of the directors head core areas Average age of key personnel 35-40 Average experience of key personnel with the group 5-7 years
Low on order book ! High on execution

Team Building

Future Strategy
56
Leverage execution muscle to make direct bids for high value-high margin projects especially in case of road making, bridges and other construction jobs

Take on low value other infra projects to develop competence over time Jointly bid with other players for large BOT projects Set up plants in high potential growth areas and wait for growth to come around HR strategy being revamped to be ready for high growth phase Decentralization at authorities and responsibilities at the project level Introduction of incentive scheme(s) for pre-schedule high quality performance
Move to newer growth regions in India in a structured manner
Develop second line of leadership

Product/process innovation
57
Initiatives so far
Establishing strong backward linkages
With a vision, one of the first, to have set up quarry in Panvel, despite local resistance Crushed sand is used as a substitute product for natural sand
First local Company to produce crushed sand in Mumbai region
One of the few to have a complete in-house machinery and transportation mechanism Curtailing material handling at site
All material (RMC, stone metal, steel etc) is delivered from quarry only, no direct supplies at any site in and around Mumbai
Future Ideas

All HR activity to be centralized at HO SOPs on site accounting specified and follow-up action Refurbishing of payment processing system
Key Risks
58
Execution risks
Key
employee attrition Material mobilization risk
Economic risks
Sudden
change in govt. policies with respect to awarding of projects in quarry operations on account of environment crusades
Environmental risks
Stoppage
Disruptive pricing by competitors
About the Industry

59
Planned Govt. Outlay Infrastructure Density Roads, the story Local Competition
Planned Govt. Outlay

60
Eleventh 5 year plan envisages an investment (for roads and bridges) of USD 78.5 billion
Share
of Centre, State and pvt sector is 34.2%, 31.8% and 34%
India will need to spend USD 1 trillion for infrastructure in the twelfth 5 year plan Dr. Manmohan Singh Infrastructure investments as % of GDP planned to grow from 7.9% in 2010-11 to 8.4% in 2011-12
Infrastructure Density
Roads, the story

Second largest road network in India
Category of road National Highways Length in Km 65,569 1,30,000 3,140,000
Carry nearly 65% of freight and 85% of passenger traffic Traffic on roads is growing at a rate of 7 to 10% p.a. Vehicle population growth is of the order of 12% per annum
State Highways Major Distt. Road, Rural road & Urban road Total road network
3.34 million
Source Ministry of Road transport & Highway
Growth Drivers

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November 2013

Mahavir Roads & Infrastructure Pvt Ltd

The Story so far

Private & Confidential

Growth Trajectory so far

1960sTrading in all types of building material

1980s Quarrying, manufacturing of stone metal products

1994 Pvt contractor, registered as Class A contractor with Municipal bodies

1996 onwards Principal Contractor / JV-consortium

Private & Confidential

Promoters Background (1)

Vasantlal Kikavat, age 75 originally from Rajasthan

Initially, worked as an employee for around15-20 years

Started trading all kinds of building materials in and around Mumbai

1963, incorporated Mahavir Stone Supplying Co

Private & Confidential

Promoters Background (2)

He took over the responsibility of quarry sites and logistics management

Name of Co Promoter Ownership

Key Quarry assets & RMC Units

Transactions with MRIPL

Mahavir Link Associates

A quarry in Turbhe NIL

Supply of stone metal

Mahavir Stone 100% Supplying Co

Private & Confidential

Organisation Chart (HO)

Executive Director Finance {Pankaj Kikavat}

Executive DirectorProduction {Nilesh Kikavat}

Executive DirectorProjects (Execution& Billing) {Pawan Kikavat}

Quality Surveyor(s) & Billing Engineer(s)

Private & Confidential

Organisation Chart (Plant)

Operations & Maintenance

Plant Helper(s) & Labour

Private & Confidential

Project Execution team Hierarchy

Managing Director Project Manager

Private & Confidential

Typical Project Cycle (1)

Technical Bid (typical terms)

Private & Confidential

Typical Project Cycle (2)

Coal tar roads 3 years Concrete roads 5 years

Private & Confidential

MRIPL has an assured steady supply of stone metal & RMC

Within the group the following capacities exist

Private & Confidential

Quarry, Machinery - Panvel

Quarry, Machinery - Panvel

200 MTPH CRUSHER

Heavy Machinery Site(1)

Private & Confidential

Concrete Laying with Boom Placer at Bonkode Flyover

Heavy Machinery Site(2)

Concrete Slip Form Paver at Site

Wet Mix Plant

W.S.I Crusher Plant

Crusher loading area

Pock lain Use at Quarry

Small Crusher Plant

Small Crusher Plant

Crusher Plant (Side View)

Private & Confidential