anant raj industries limited - ace analyser meet/115055_20090531.pdf · 2009-09-23 · good...

Anant Raj Industries LimitedStanding tall. Executing ahead.May 2009

DisclaimerThis presentation has been prepared by ANANT RAJ INDUSTRIES Limited (the “Company”) solely to provide information about the Company.

No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. None of the Company nor any of its subsidiaries or affiliates, shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

The information contained in this presentation is only current as of its date. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India.

The Company’s securities are not, and will not be, registered under the U.S. Securities Act of 1993, as amended.

Corporate Presentation 2009 2

Discussion Outline

Power of Focus

Advantage Anant Raj

Value enhancement through partnerships

Focus on Execution

Built to Last

Strong Financials

Future Focus


The year so farThe real estate sector has seen one the sharpest corrections since January 2008.

• Land prices have reduced

• Sale prices witnessed a decline

• Lease prices have also softened

• Average Room Revenue is likely to reduce


View from the topThe world around us changed. We dint. We always believed in the ‘Power of Focus’. This has led to ‘Advantage Anant Raj’.

Prime land now available at attractive rates – As in the past, we will continue to act on this opportunity. This is aided by a de-leveraged balance sheet and free cash reserve.

Interest cycle seems to have peaked, correction expected. The worst might be behind us. We will see a turn in the cycle, soon.

The Power of Focus

Power of FocusFocus on NCRExtensive experience in NCR for the last four decades. Enables identifying attractive land location and low cost FSI’s.

Focus land acquisitionNo land acquired through Auctions. Land for IT Parks acquired through Government Allotment having very low land cost FSI

Focused DevelopmentConcentration on the commercial leasing space; No diversion to large scale residential or town ship development.

Focus on LocationLocation identification with future development focus. Land at prime locations and where the development activity is visible.

Focus Business No outside business interest of the promoter’s family; No leveraging by promoters either by pledge of shares or otherwise; All assets in the name of the company or its 100% owned subsidiaries.


Advantage Anant RajAttractive Land Bank

• Total Land Bank - 982 Acres (Developable area of 77 Million Square feet).

• Among the largest land holders in Delhi – 525 Acres. Balance 90% land within 30 Kms of Delhi.

• Prime location land at low cost

• Most of the land is paid for.

Preference on rental/leasing income as opposed to outright sale has ensured cash flow driven business model

Value Creation

26% Strategic dilution of subsidiary, Anant Raj Projects to TAIB Bank Bahrain valued at over Rs 831 cr. Cash infusion of Rs 216 cr into the subsidiary.

Experienced and professional team. In-house execution capabilities as well.


Value enhancement through partnerships

Partners

A 50.1:49.9 Joint Venture agreement with Monsoon Capital for development of an IT Park at Panchkula, Haryana.

A 50:50 Joint Venture agreement with Swan Consultants, a Reliance Anil Dhirubhai Ambani Group (ADAG) Company. Total Investment till date: Rs. 400 crores. Under this collaboration, two hospitality projects at NH-8 , New Delhi near the Airport and an SEZ of 500 acres at Manesar, Haryana will be developed.

A Co-Investment Right Agreement with the Govt. of Singapore Investment Corporation (GIC) to pursue investment opportunities in infrastructure development and hospitality.


Govt. of Singapore Investment Corporation.

Morgan Stanley Dean Witter Mauritius Co. Ltd.

Arisaig Partners Asia PTE Ltd A/c ArisaigIndia Fund Ltd.

Quantum M Ltd.

ABN Amro Bank NV London Branch.

Master Trust Bank of Japan Ltd A/c.

Citigroup Global Markets Mauritius Pvt. Ltd.

Deutsche Securities Mauritius Ltd.

Indian Promoters Orient GlobalCinnamon Capital Ltd.

Major Shareholders

Focus on Execution

Land Area : 7.37 Acres

No. of rooms - 50

50 more rooms will be added in phase - II

making it a 100 rooms hotel.

Located near South Delhi.

10 kms from IGI Airport.

Adjoining Chattarpur Temple, Qutub Minar

and other tourist Spots.

Congenial and peaceful environment for

hospitality projects.

To be connected by Delhi Metro.

Land Area : 5.75 Acres

No. of rooms - 43

57 more rooms will be added in phase - II making

it a 100 rooms hotel.

Located near South Delhi.

10 kms from IGI Airport.

Adjoining Chattarpur Temple, Qutub minar and

other tourist Spots.

Congenial and peaceful environment for

hospitality projects.


Total Constructed Area : 82,500 sq. ft.

Prime location on main Gurudwara Road, KarolBagh, New Delhi.

Very Close vicinity to metro station.

Structural design adhering strictly to seismic zone- V

International standards for fool proof security with CCTV and PA system.

Transparent design with glass facade providing visibility to all showrooms.

Valet parking, car calling and front office facilities.

Centrally air conditioned with efficient BMS.

Sensor controlled façade lighting for visual brilliance.

Hotel- Anant Raj RetreatNear Mehrauli, New Delhi

Hotel- Anant Raj ExoticaNear Mehrauli, New Delhi

Mall- Anant Raj GalleriaKarol Bagh, New Delhi

Additions in 2008-09


Completion of Phase-I by March, 2010.

Land Area – 25 acres.

Total Constructed Area– 4.8 million sq. ft.

Lease able Area – 3.5 million sq. ft.

Situated on National Highway (NH-1).

5 Kms from Delhi order.

Nearest notified SEZ from Delhi.

Sound infrastructure in place.

Proposed to be connected by Delhi Metro.

Also being connected to Airport, Gurgaon and Manesar by the upcoming KMP expressway.

Completion Date – August, 2009.

Total Constructed Area– 1.8 million sq. ft

Leaseable Area – 1.20 million sq. ft. (which

includes 40,000 square feet of Retail Space).

11 km from Gurgaon – a hub of IT/ITES and BPO companies.

Hotel with 124 rooms in the vicinity of IT Park.

The first ready-for-fit-outs structure with floor plate of approx. 1 lac sq. ft., which is at least 24 months ahead of any other similar project in that city.

IT Park- Anant Raj Technology Park Manesar, Haryana

Completion Date – September, 2009.

Land Area – 6.126 acres.

Total Constructed Area– 0.75 million sq.ft.

Centrally located in the posh area of Delhi and near Metro Station, making it well connected to other parts of the city.

5 Kms from Connaught Place.

Near to residential areas like Moti Nagar, Rajouri

Garden, Tilak Nagar.

SEZ’s- IT/ITES SEZRai, Haryana

Mall- Kirti NagarNew Delhi

Executing AheadDevelopments expected in 2009-10 and 2010-11


Completion Date – JUNE, 2009

Land Area – 2.88 acres

No of Rooms – 80 (Phase I – 40 rooms and

PhaseII – 40 rooms).

Located Near to the Delhi Airport, on main NH-

8, the Delhi Jaipur Expressway.

3 Kms from Gurgaon.

Well known Hotel Chains like Radisson, Trident,

Uppal Orchid are located in this region.




No of Rooms – 120 (Phase-I – 60 rooms and

Phase-II – 60 rooms)

Located Near to the Delhi Airport, on main NH-8,

the Delhi Jaipur Expressway.

3 Kms from Gurgaon.

Well known Hotel Chains like Radisson, Trident,

Uppal Orchid are located in this region.




No of Rooms – 150(Phase-I – 75 roomsPhase-II – 75 rooms)

Located Near to the Delhi Airport, on main NH-8, the Delhi Jaipur Expressway.

3 Kms from Gurgaon.

Well known Hotel Chains like Radisson, Trident, Uppal Orchid are located in this region.


Hotel- Papilon, New Delhi

Hotel- GrandNew Delhi

Hotel- Tri ColorNH-8, New Delhi



Land Area – 10 acres

Total Constructed Area – 1.8 million sq. ft.

Modern city developed by the Haryana Govt. adjoining to Chandigarh.

Sound Infrastructure and peaceful environment.

10 Kms from Baddi (Largest Industrial Area developed by Himachal Pradesh Government and offered various incentives/tax benefits).

Good connectivity by road, rail and air.



Situated on the Express Highway between Noida and Greater Noida.

Upcoming hub of IT, Biotech Parks and SEZ’s.

Well developed industrial township.

Sound inf ras t ructure and peaceful environment.

To be connected by the Delhi Metro.

Proposed International Airport.

Eligible for SEZ.



With increasing Real Estate cost and strong competition for skillful labour, major BPO firms are looking at smaller cities for setting up their new operations.

Sound infrastructure and peaceful environment.

Good connectivity by road, rail and air.

Historical city and a beautiful tourist spot.

Capital city of Rajasthan.

IT Park - PanchkulaHaryana

IT Park - Greater NoidaUttar Pradesh

IT Park - JaipurRajasthan




Saleable Area – 0.28 million sq. ft.


Constructed Area – 0.2 million.

No of Rooms – 150

(Phase-I – 70 rooms and Phase-II- 80 more

rooms will be added).

Near Delhi Airport.Land Area – 3 acres

Constructed Area – 0.24 million sq. ft.

Prime Location in the heart of Delhi.

Residential - KapasheraNew Delhi

Hotel - Green Retreat NH-8, New Delhi

Residential-cum-Institutional -

Bhagwan Das Road, Connaught Place,

New Delhi




Saleable Area – 0.30 million sq. ft.

Residential - Hauz KhasNew Delhi

Strong Financials

Cash in hand in excess of Rs 700 cr

Landbank of over 77 million sft almost paid forTotal debt of Rs 150 cr

Rs cr

ConsolidatedYear ended

Turnover 212.54 633.43 282.52 439.93Profit Before Tax 171.09 580.20 252.71 411.46*Profit After Tax 125.46 436.35 201.26 344.51Share Capital 47.84 58.93 58.93 59.02Reserves & Surplus 1,109.80 2,816.97 3,048.48 3,184.40Debts 340.27 58.02 150.26 101.98Fixed Assets & Capital work in progress 1,270.22 1,658.06 2,175.94 1,574.81Cash & Bank Balances 62.56 604.76 510.50 481.87Other Current Assets net 63.82 524.31 465.48 980.18


FinancialsConsolidated Year ended

Consolidated9 months ended

Standalone9 months ended

31-03-2007 31-03-2008 31-12-2008 31-12-2008*

* The standalone financials of the Company include profit of Rs.162.40 crores on account of transfer of one of its development projects to its wholly owned subsidiary, Anant Raj Projects Limited. However ,the same has not been considered in consolidated results which are prepared in accordance with AS-21 titled ' Consolidated Financial Statement’ issued by the Institute of Chartered Accountants of India.Anant Raj Projects Limited in turn has issued a 26% stake to a Bahrain based development fund for a value of Rs.2.16 billion. This being a fresh issue of shares at premium does not get captured in the profits in Consolidates accounts, however adds to the cash on the books of the Company.

The Anant Raj Group began operations in 1969 and is among the oldest and most experienced development and construction companies in the National Capital Region of India (‘NCR’).

Over the past 3 decades we have developed and constructed more than 11.5 million square feet.

We have one of the leading ceramic tiles production facilities in India with a plant at Rewari(Haryana). The current plant capacity is 12,000 square metres of tiles per day.

Vision

“To significantly contribute in the development of the nation through building high quality infrastructure”.

Mission

“To position itself as an integrated Infrastructure Development Enterprise in the NCR with high quality of construction, ethics, business standards and customer satisfaction on continuing basis”

Built to Last



In 2005, we consolidated our entire development and construction business into our flagship company, Anant Raj Industries Limited. To this end, the entire landbank is now part of the flagship company and all construction and development activities are from 2005 onwards are done only in the flagship Company.

Built to Last

1985 1989 1995 2005 2006 2007 2008

Company incorporated as Anant Raj Clay

Products Ltd.Started consolidation of the development

and construction business

Jan 07: Merger Scheme 3 announced

Nov 07: Merger Scheme 3 approved by

High Court

April 06: Raised US$ 66 mn (@Rs

600 per share)

May 07: Raised US$ 168.8 mn

(@Rs. 1229.51/-)

Feb 08: Raised US$ 151 @7.494

US $ per GDR

May 07: Merger 3 approved by Stock

Exchanges

Nov 06: Merger Scheme 2 announced

May 07: Merger Scheme 2 approved by

Hon. High Courts

Oct 06: Merger Scheme I

approved by High Courts

Merger 1 was announced

US $ 16 mn (@Rs175 per share) raised through

Private (Sept 05) Placement

Commenced production of Ceramic

Tiles

Name changed to Anant Raj Industries

Future Focus


Future FocusPrime land acquisition

At Anant Raj, we have always believed in acquiring high quality / prime land at attractive rates.

Land prices in prime areas like Connaught Place, Jasola, South Delhi and Gurgaon have corrected by more than 30-40%. Prime land is now available at attractive rates.

Thanks to a de-leveraged balance sheet and free cash reserve, we plan to show aggression in acquiring land at these prime locations.

Low – Cost Housing

Demand Drivers

Urban population is expected to reach 576 million in 2030 from the current 328 million. With this rapid urbanisation, one of the biggest challenges will be providing affordable housing to city dwellers.

28% of the population lives in cities that account for just 2% of the country’s land, and the proportion could rise to as much as 55% by 2050.

With the number of families earning more than Rs 2 lakh annually, set to double to around 20 million in the next two years, demand for small and simple apartments is set to mushroom

Interest rates have also started on the reversal trend, making EMI’s more affordable.

The government too has taken measures to encourage growth by cutting interest rates for loans below Rs. 20 lakh.

Anant Raj Advantage

Construction cost remaining more or less stable across these projects, land acquisition cost will be the key parameter for success of these projects.

Anant Raj having a land back acquired at attractive rates, stands to gain.

Contact InformationANANT RAJ INDUSTRIES LIMITED

HEAD OFFICE : H-65, Connaught Circus, New Delhi - 110 001Tel : 011-41516772, 23324127, 23310881 Fax : 011-43582879

CORP. OFFICE : A.R.A. Centre, E-2, Jhandewalan Extension, New Delhi - 110 055Tel : 011-41540070, 23541940, 43559100 Fax : 011-43559111, 43692305

E-mail : [email protected] Website : www.anantraj.com

anant raj industries limited - ace analyser meet/115055_20090531.pdf · 2009-09-23 · good...

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