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Investor Presentation March 2016
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
0, 112, 192
146, 208, 80
112, 48, 160
255, 192, 0
102, 51, 0
192, 80, 77
3
Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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146, 208, 80
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Dalmia Bharat: Snapshot
Corporate Overview
• Third largest cement player in India
• 25 Million Tons of installed cement capacity
• 181 MW of captive power capacity
• Strong presence in South, East and North East
• More than 75 years of presence
• Listed on BSE and NSE
Dalmia Bharat Ltd. (DBL)
25 MnT (Cement), 180.5 MW (CPP)
100%
OCL India Ltd. “OCL”
KKR
100%
8.5%
75%
* Calcom Cement India Ltd.
“Calcom”
* Adhunik Cement Ltd. “Adhunik”
76%
100%
Dalmia Power Ltd.
DCBPVL (99 MW)
26%
* Dalmia Cement East Limited
“Bokaro”
100%
Dalmia Cement Bharat Ltd “DCBL”
Listed entities
* Acquired entities
Asset Overview
74%
Kapilas
Rajgangpur
Meghalaya
Lanka
Bokaro
Medinipur
Belgaum
Dalmia
puram Ariyalur
Kadapa
Dalmia Bharat Group
Cement
Capacity (MnT)
Captive
Power (MW)
Total Total
South 11.7 99
East 9.5 57
North
East 3.7 25
Total 24.9 181
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Our Markets
2005 2010 2015
7%
% Represents our Market share
4%
11%
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Capacity over last 10 Years
2005 2010 2015
Installed Capacity: 1.2 MnT Installed Capacity: 9 MnT Installed Capacity: 25 MnT
#1 plants in #1 states #5 plants in #3 states #11 plants in #8 states
Dalmiapuram Dalmiapuram Ariyalur
Kadapa
Kapilas
Rajgangpur
Meghalaya
Lanka
Bokaro
Medinipur
Belgaum
Dalmiapuram Ariyalur
Kadapa
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Journey since 2006
Simplification of Structure
• Collapsing of conglomerate structure – Pure plays created
• Majority Holding in all Subsidiaries
• Preferential allotment to KKR
Geographical diversification
~55% capacity in Eastern region
Built inorganically
Contributed towards industry consolidation (3.4%)
Emerged as only player with well balanced capacity in South region
• Having assets in all three limestone bearing states
• Strategic advantage
Cost Optimization
• Second lowest in the industry in Variable Cost per tonne (Rs. 1333/T)
• Highest blending ratio in the industry (2x)
• One of the highest production of blended cement (83%)
• Lowest power consumption per tonne of cement (68 kwh)
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Simplification of Structure
Dalmia Bharat
Enterprises Ltd
Dalmia Bharat
Sugar and
Industries Ltd.
Dalmia Cement
(Bharat) Ltd.
Dalmia
Power Ltd.
OCL India Ltd.
“OCL”
45%
77%
Dalmia
Cement
Ventures Ltd
DCBPVL
26% 74%
KKR
15%
Post Restructuring
(2010-2014) (Phase I)
Dalmia Cement (Bharat)
Limited
Cement Sugar
Till 2010
Refractory Other busineses
Listed entities
Adhunik
Cement
Calcom
Jaypee Bokaro
50%
76%
100%
Cement
Refractory
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Further Simplification of Structure
Calcom Cement
Dalmia Bharat Ltd. (DBL)
Dalmia Cement
(Bharat) Ltd.
Dalmia
Power Ltd.
KKR
15%
85%
OCL India Ltd. 45%
Adhunik
Cement
76%
100%
* Dalmia
Cement East
Limited
“Bokaro”
100%
DCBPVL
26% 74%
100%
Post Restructuring
(2010-2014) (Phase II)
Calcom Cement
Dalmia Bharat Ltd. (DBL)
Dalmia Cement
(Bharat) Ltd.
Dalmia
Power Ltd.
KKR
100%
OCL India Ltd. 75%
Adhunik
Cement
76%
100%
* Dalmia
Cement East
Limited
“Bokaro”
100%
DCBPVL)
26% 74%
100%
Current
8.5%
Cement
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Our Growth has been with a judicious mix of
organic and inorganic expansions
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Proven Execution Capabilities
FY11 FY16 CAGR
ACC 30 30 -
Ambuja 26 26 -
Ultratech 49 65 5%
Shree 13 24 10%
Dalmia 9 25 19%
Capacity (MnT)
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Independent Board with a thrust on Corporate Governance
Pradeep Kumar Khaitan, Chairman, DBL
• Over 46 years of experience; A partner in Khaitan & Co., Solicitors and Advocates
G.N. Bajpai : Chairman, DCBL
• Former Chairman of SEBI and LIC
Sanjay Nayar: Board Member, DCBL
• CEO - KKR India
• Ex-Head Citibank India
Paul Hugentobler: Board Member, DCBL
• Ex-Member, Holcim Executive Committee
Prof Vaidhyanathan: Board Member, ACL
• Ex-Faculty, IIM-Bangalore.
P B Kulkarni: Board Member, ACL
• Ex-Director, Ambuja Cements Ltd.
Professionals / Independent
Sudha Pillai: Board Member, DCBL
• Ex-Assistant Secretary, Ministry of Mines, IAS – 1972
V S Jain: Board Member, DBL
• Ex-Chairman – Steel Authority of India.
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…And a Strong Management Team
Judicious mix of experience and youth
Puneet Dalmia : Managing Director & Board Member
• B.tech from IIT Delhi; P.G. from IIM, Bangalore
• Over 11 years of experience in the cement industry
• Conceptualized the growth strategy and governance architecture for the Group and is spearheading the growth plans for
the Group
Gautam Dalmia: Managing Director & Board Member
• B.S. and M.S. degrees in electrical engineering from Columbia University
• Over 17 years of experience in the cement and sugar industries
• Responsible for leading the operations and execution of cement projects besides providing leadership to the
commercial functions of the group
Mahendra Singhi: Whole time Director & Group CEO – Cement • Chartered Accountant & Science, Law Graduate. • 38 years of experience in Cement Industry including 19 years with Shree Cement Ltd. • Passion for efficiency, people management & sustainability. • Member of Board of Governors of the National Council for Cement & Building Materials. • Served as a leader of Indian Cement Sector Task Force for Energy Conservation, Ministry of Power we well as President of the
Rajasthan Cement Manufacturers Association.
T. Venkatesan: Dy. Managing Director
• Chartered Accountant
• Over 31 yrs of experience in various sectors
• Expertise lies in accelerating growth of large businesses
• Ex-CEO Sterlite Group Copper Segment
Jayesh Doshi: Whole Time Director & Group CFO
• Chartered Accountant and a Law graduate from Bombay University
• Over 28 yrs of experience with 19 yrs experience in cement industry and other industries being pharma, shipping
offshore oil services & real estate
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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Current Scenario
Current
Scenario
Third largest player in India with regional leadership position
Diversified locational advantages
Premium Brand Positioning
Moving to Sustainable Business Model
Efficient Deployment of Capital
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Leadership Position by Capacity
National
10.1%
8.7%
9MFY16 9MFY15
Our volumes growth (17%) outpaced
industry’s growth of (3%) for 9M FY16
Improved Market Share
68.4 68.0
25.0 25.0 22.8
H+L AV Birla Dalmia Shree B K Birla
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Diversified Locational Advantages
We are located where it matters!
Proximity to Input Sources Logistics savings vis-a-vis competitors in key markets
Lanka
Meghalaya
Kadapa
Ariyalur
Belgaum
Dalmiapuram
Rajgangpur
Bokaro
Kapilas Road
BCW
MRPL
Tata Steel
Kalinganagar
Plant sites
Input sources
Potential Sources
Bongaigan
TPP 2.5 MW
14%
5% 7% 8% 6% 4%
15%
38%
0%
10%
20%
30%
40%
Tam
il N
ad
u
Karn
ata
ka
Kera
la
Ori
ssa
West B
eng
al
Jhark
han
d
Assam
Me
gha
laya
North East East South
Lead Distance – 300 kms
South 47%
East 41%
NE 12%
Sales Mix – FY15
Cement Demand Growth
6%
13%
2%
5%
0%
2%
4%
6%
8%
10%
12%
14%
FY14 FY15
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Moving towards Sustainability…..
Best practices of sustainability introduced
Lesser use of mineral resources
Lesser use of Fossil Fuel
Conserve water
Reduce usage of energy
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…..Resultant Effect
Power Consumed/T (Kwh) Power & Fuel Cost (Rs/T)
Variable Cost (Rs//T)
Continuous
improvement in
operating efficiencies
Commissioning of new
clinker unit in North
East would result in
further improving
efficiencies in FY16
967 9411027
908
781869
740 726666
FY14 Q1'15 Q2'15 Q3'15 Q4'15 FY15 Q1'16 Q2'16 Q3'16
7475 75
72
69
71
6970
68
FY14 Q1'15 Q2'15 Q3'15 Q4'15 FY15 Q1'16 Q2'16 Q3'16
1647 1618 16581565 1520 1549
1391 1410 1333
FY14 Q1'15 Q2'15 Q3'15 Q4'15 FY15 Q1'16 Q2'16 Q3'16
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Dalmia Financial Performance
5 Yr Avg. 10 Yr Avg.(FY11-FY15) (FY06-FY15)
1 Ultratech 934 941
2 Dalmia 918 936
3 Shree 890 1031
4 Holcim 830 828
Rank EBITDA INR/Ton
20
In line with Large Caps
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Focused efforts improved profitability
9M FY16
ACC 533
Ambuja 649
Ultratech 915
Shree 760
Dalmia 1,219
EBITDA/T (Rs.)
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Uniform Branding
22
Premium Brand Positioning
Market Leader in core serving markets. Serving 18 states.
Launched
Dalmia Brand
across markets
Improved
Market
Share
Enjoys
premium
pricing
North East South
East
South
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Acquisitions & Greenfield Cost
2010
2012
2015
2012
2014
Organic Inorganic
Kadapa/ Ariyalur
USD 85 / T
Calcom
USD 126 / Ton
OCL
USD 74/ T
Adhunik
USD 112/ T
Jaypee Bokaro
USD 90/ T
2015
Belgaum
USD 100 / T
2008
Average Acquisition Cost
~ USD 90/ T
Dec 2015
2008-2015
2014
2013
2012
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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Aggregated Financials
10.12 10.78
FY14 FY15
Sales in
MnT
Sales in
MnT
Particulars (Rs. Cr.) Q3 FY15 Q3 FY16 9M FY15 9M FY16 FY15 FY14
Total Income 1,343 1,474 3,799 4,525 5,504 4,944
Operating Expenses 1,124 1,126 3,223 3,448 4,567 4,134
EBITDA 219 348 576 1,077 937 810
EBITDA Margin % 16% 24% 15% 24% 17% 16%
Other Income 44 20 93 67 109 92
Depreciation 96 116 279 333 416 395
EBIT 167 252 390 811 630 507
Finance Cost 122 171 331 518 497 386
Profit Before Tax 45 81 53 293 127 121
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Aggregated Balance Sheet
(Rs. Cr.)
ParticularsAs on
30-Sep-15As on
31-Mar-15
Equity Funds 3,925 3,840
Debt 8,260 8,487
Term Loan 7,535 7,805
Working Capital 725 682
Deferred Tax 493 401
TOTAL 12,678 12,728
Fixed Assets 9,838 9,702
Non Current Investments 104 108
Cash & Equivalents 2,145 2,112
Net Working Capital 591 806
TOTAL 12,678 12,728
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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To benefit from Operating Leverage
DBL 50% CU 60% CU 70% CU 80% CU 90% CU
Capacity - Mnt MnT 25 25 25 25 25
Volume - Mnt MnT 12.5 15.0 17.5 20.0 22.5
Capacity Utilization (CU) % 50% 60% 70% 80% 90%
Increase in CU% 10% 10% 10% 10%
Fixed Cost* Rs. Cr. 1,151 1,209 1,269 1,333 1,399
Fixed Cost Rs./T 921 806 725 666 622
Impact Rs./T 115 81 59 44
Cumulative Impact Rs./T 196 255 299
Saving for every 1% inc Rs./T 11.51 8.06 5.89 4.44
* Assumed Escalation of 5% every year
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Debt Structure….Facilitating Cash Accumulations
Cost below 9.6% & floating….Distinct advantage for any equity holder!
Optimum leverage….Long maturity with >20% repayment in last 6 years….
Group Debt Repayment (Rs. Cr.)
365 334 448
875
1,368
1,250
997
497 448 367
1,711
4% 4%5%
10%
16%14%
12%
6% 5%4%
20%
0%
5%
10%
15%
20%
25%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 - FY33
Repayments (Rs.In Crores) Repayment (%)
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Awards
2014: Dalmia Cement Ariyalur plant, Honored with the Federation of India Chambers of Commerce and Industry (FICCI) “Safety System Excellence Award 2014 for the Manufacturing Sector”
2014: CII-National Energy Management award 2013: CII-TC Prestigious Environment, Health & Safety Award. 2013 & 2012: CII-ITC sustainability award for strong commitment towards
sustainability
Best Corporate Adverstsing Campaign – Mera Bharat Bada Ho Raha Hai
World HRD Congress Award - 2015 Best Corporate Social Responsibility Practices One of the Best Employer of the Year – 2014 & 2015 Managing Health At Work Talent Management Excellence in Training
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Summarizing…..
Asset
Sweating
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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146, 208, 80
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Other Large & Mid-Cap Players
37%
Small Players17%
Holcim13%
Ultratech15% Jaypee
7%
B K Birla5%
Dalmia6%
Top 5 Players47%
33
Indian Cement Industry Overview
Second largest cement market in the world
Sustained growth of 7% in last five years
Low per capita consumption of ~200 kgs compared to world average of ~400 kgs
Significant consolidation lead to 49% capacity under control of top 5 players
Regional play due to high freight costs
Primarily bagged retail sales driven (65 %)
Location and branding plays a critical role
FY2015 : All India Capacity Distribution FY2009 : All India Capacity Distribution
Small Players 46%
Other Large & Mid-Cap Players
9%
Dalmia 3%
ACC 10%
Ultratech 10%
Grasim 9%
Ambuja 8%
India Cements 5%
Top 5 Players 42%
• 80% capacity under control of top 20 players
DCBL #3 Pan-India Player
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Slower Capacity Addition to Increase Utilisations
Planning to Execution
• Environmental clearances
• Forest clearances
• Mining lease
• Land acquisition
• Financial closure
• Talent procurement
• Ordering
• Construction
Conception
Inception
Execution 4 years
2.5 years
• Brand visibility
• Volatile pricing scenario
• Raw material availability
• Logistics Management
The replacement costs are up ~15% (CAGR)-currently at ~$ 140/T
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1914-1997-First 100 MnT in 83 years
1997-2008 Next 100 MnT in 11 yrs
2008-2010 Next 100 MnT in 2 yrs
2010-2015 Next 100 MnT in 5 yrs
2015-2025E – Next 100 MnT in next 10 years
35
Rationalization of Capacity Additions in Future
Total Installed Cement Capacity as of March 31, 2015 – 400 MnT
100 MnT
200 MnT
300 MnT
400 MnT
500 MnT
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All India Capacity Utilization improving to 80% by FY20
Slower capacity additions leading to CU reaching 81% in FY20
Current Cement Consumption
200Kg/Person – Huge scope of improvement as the global average is 480 kgs
73% 74% 74%70% 69% 67% 68%
71%75%
81%
FY'11 FY'12 FY'13 FY'14 FY15 FY16E FY17E FY18E FY19E FY20E
All India CU%
197 224
241 256 261 267 276 292.22 312
337 364
284 310
327 350 366
391 412 422 429 430 436
FY 10 FY11 FY12 FY13 FY 14 FY 15 FY16E FY17E FY18E FY19E FY20E
Demand (MnT) Capacity (in MnT)
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Our Regions
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Focused development resulting in substantial
growth
83%79% 81%
78% 77%73%
69% 69%73%
79%
FY'11 FY'12 FY'13 FY'14 FY15 FY16E FY17E FY18E FY19E FY20E
East CU%
30 35 36
39 41 44
50 54
58 63
68
35 39
43 44 48
56
64
69 71 72 74
FY 10 FY11 FY12 FY13 FY 14 FY 15 FY16E FY17E FY18E FY19E FY20E
Demand (in MnT) Capacity (in MnT)
East - A Growing Region
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East – Model for Substantive development Cement demand growing at a CAGR of >10%
Elections in 2016 East Freight Corridor
Ruled by NDA Govt
Orissa
West Bengal Impetus to
development
Bihar
Able leadership helping the
Cement demand
to grow >11%
Chhattisgarh
Scaled to 4th
position in Ease of doing business
Kolkata
Ludhiana
Jharkhand
Scaled to 3rd position
in Ease of doing business
7.7%
9.2% 10.8%
11.9%
2012-13 2013-14 (P) 2014-15 (Q) 2015-16 (A)
West Bengal
Year Wise Growth of Industry Sector at Constant
price ( base 2011-12)
Our Markets Potential investments
Orissa • Investment commitment of > 71k crore from various cos - L&T, NALCO, ITC, GMR & Vedanta
• Potential biggest I.T. Park – Infosys, Wipro, TCS & Mindtree setting up shops
Jharkhand • 1000 kms state highways to be converted in national highways
• Secured 62k crore investment commitment from Adani & Vedanta
West Bengal • NTPC-Farakka, (500 MW), SAIL IISCO, Eastern Coalfields and EMTA received clearances.
• Offshore terminal by Hirandani Group
Bihar • Indian Railways putting up diesel locomotive factory project - 14.6 cr (USD 2.2 bn)
• Alstom setting up electric locomotive project for 20k crore (USD 3 bn)
Emerged as one of hottest investment
destinations
Source: Company, World Bank
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63% 62%66%
61%58% 57% 59%
62%66%
71%
FY'11 FY'12 FY'13 FY'14 FY15 FY16E FY17E FY18E FY19E FY20E
South CU%Formation of New Capital of Andhra
Pradesh (Seemandhara) would lead to
significant infra development
57 64 68 76
75 69 66 70 74
80 87
97 105
113 121 123 125 126 130 128 128 131
FY 10 FY11 FY12 FY13 FY 14 FY 15 FY16E FY17E FY18E FY19E FY20E
Demand (in MnT) Capacity (in MnT)
South – Minimal Capacity Additions leading to improved C.U.
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South – Narrowing Demand Supply Gap
Tamil Nadu
Karnataka
Kerala
Goa
Bidar
Seemandhra
Telangana
Amaravathi
(Proposed Capital)
Maharashtra
Elections in 2016 Ruled by NDA Govt
Signed 245 MOUs worth Rs. 4 lac crore
Our Markets Potential investments
Maharashtra/A.P./ Tamil Nadu
• Foxconn committed >$ 5 bn investment
Maharashtra More than Rs.800 billion projects planned other than freight corridor Navi Mumbai International airport Pune/ Nagpur/ Ahmedabad /Mumbai metro
projects JNPT Container terminal Mumbai Trans Harbour link
Make in India week attracted Investment commitments of ~ 7.5
lac crore
Three new industrial townships planned
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North East – Huge Potential
No. of Smart Cities in a state
Elections in 2015/16
Arunachal
Pradesh Arunachal
Pradesh
Nagaland
Manipur
Mizoram
Meghalaya
Assam
Sikkim
2
5
3
Smart Cities - 10 Smart Cities to be
developed in Assam (5), Sikkim (3)
and Manipur (2).
Rs 15,000 crore of roads projects.
• Of this, Rs 6,000 crore in
Arunachal Pradesh and
• Rs 2,000 crore in Meghalaya and
Nagaland.
• The remaining projects would be
spread across other states
• Rs.5,000 crore project for
telecom infrastructure
• The project will be implemented
in the next 5 years
North East could well become the growth Engine that will give the next big push to the India Economy
Huge trade potential
between North East India
and ASEAN Countries
Inland Water Transport (IWT): • Set up a River Development authority
to implement it.
• Develop 20 Ports in Brahmaputra
and Barak with township, industrial
area, rail and road connectivity
Industrial Corridor
Inland Waterways
Trans Himalayan Highway
The Government has announced
plans for investing over Rs.92000
crore, for the development of Roads
and Railways
Under the SARDPNE (Special
Accelerated Road Development
Programme), Rs.35,000 crore is
proposed to be invested to develop
Trans – Arunachal highway and for
connecting all district headquarters
by two Lane Highway (about
6400km)
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Contents
Journey over last decade
Current Scenario
Cement Industry & Our Region
Financial Performance
Improving Macro Indicators
1
2
3
5
6
What Next 4
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VDS for undisclosed income
↓ red-tapism
↑ Budget allocation to Rs. 97,00 Cr.
Inflow (YTD Dec’16)
- up 40% YoY
- $29Bn vs $21Bn
Higher allocation of MGNREGA
Increased allocation for MUDRA Scheme
Less Corruption
Greater Impetus on Infrastructure
FDI Norms Easing
Improved rural income
Single day registration for start ups
Allocation of Rs. 1500 cr. on skill development
No Retrospective taxation
Reduction in Corporate tax
Large commitments from several countries
Promote Entrepreneurship
Tax Rationalization
Improved Bilateral relations
Transforming India…
INDIA – A Fastest Growing Economy
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Dedicated Freight Corridor Largest Infrastructure Project in India
Mumbai Pune
Belgaum
Hubli
Devangere
Tumkur
Bangalore
Satara
Kolhapur
Chennai
Ambala
Ludhiana
Kolkata
Meerut
Kanpur
Mughal Sarai
Allahabad
Delhi Rewari Phulera
Marwar
Palanpur Sabarmati
Vadodar
Gothan Gam
1483 Km
1839 Km
1000 Km
260 Km
Approved
Proposed
Highlights of East & West Freight Corridors
Cost 81,459 crore
Funding World Bank /JICA
Land Acquired 85 of total land required
Contracts
Awarded
~70%
Commissioning Phase wise commissioning
starting 2018
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Power – Attracting significant achievements
$250 billion by 2020
$1trillion investment in power sector by 2030
Work in process for ‘One Nation One Grid initiative’
Transparency in Coal Auction
Planned projects (MW)
Thermal 89,400
Hydel Power 40,000
Nuclear power 18,000
Supercritical
technology
10,000
Renovation 36,750
Total 1,94,150
Act as a catalyst to attract further huge
investments
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Boost to Infrastructure Development
Boost
in Roads sector
Rejuvenation of
Railway Sector
Together with the capital expenditure of the Railways,
the total outlay on roads and railways will be Rs. 2,18,000 crore in 2016-17.
Planned Investment in road sector
Rs.97,000 Cr (earlier Rs. 42,912 Cr)
Proposed roads construction
National Highway – 10,000 Kms
State Roads – 15,000 Kms
Construction pace to be stepped up
Currently–100 Kms/Day
Earlier (2011-14)– 73.5 Kms/ Day
Shifting from BOT to EPC model
Total projects awarded – 2,599.58 km
Awarded to Private players – 66.4%
Planned investment
Rs. 1.21 Lakh Cr (21% higher)
Commissioning of Broad Gauge lines:
2015-16 – 2,500 kms
2016-17– 2,800 kms
Speeding Construction pace Earlier – 4.3 Kms/ Day
Currently – 7 Kms/ Day
Target – 19 Kms/ Day (by 2019)
Broad gauge tracks for North East states
(Mizoram & Manipur).
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Real Estate revival in sight
Planned expenditure of Rs. 27,280 Cr. for Pradhan Mantri Awas Yojana, Smart Cities
and AMRUT.
Affordable housing for all:
- No Income Tax on profit for small house builders.
- No Service Tax on construction of affordable houses.
- No Excise duty on Ready Mix Concrete manufactured at site.
Additional interest deduction for first home buyers
Increase in time period for construction of house from 3 years to 5 years for interest
exemption.
Interest subvention on housing loans increased to 6.50% from current 5% to
beneficiaries belonging to EWS.
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Financial Sector Reforms
Ease in RBI Norms
Resolution of Stressed Assets
Transformation
Increase in transparency
Revamping of PSBs
Others
• RBI has eased rules for calculating Tier-1 Capital to include Real Estate Assets – to unlock capital of
Rs. 40,000 Cr. (for Public & Private Sector Banks)
• Debt Recovery Tribunal to be strengthened for speedier resolution of Stressed Assets
• Bank Board Bureau to be operationalized in 2016-17
• Roadmap for consolidation of PSBs to be spelt out
• Privatisation of PSBs proposed
• Amendment in RBI Act to provide statutory basis for Monetary Policy Framework – to add value and
transparency to monetary policy decisions.
• Plan For Revamping of Public Sector Banks’, INDRADHANUSH
• Allocation of Rs. 25,000 Cr. in BE2016-17 for recapitalisation of Public Sector Banks.
• Code on resolution of Financial Firms to be introduced.
• Increase in fund allocation under Mudra Scheme – 1.8 Lakh Cr from 1.0 Lakh Cr. last year.
• Massive rollout of ATMs to be taken up for rural areas.
• Permitting non-institutional investors to invest in ARCs.
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thankyou
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