Lanco infratech limited

INTRODUCTION:

As one of India's leading business entities, Lanco Infratech Limited has been driving growth in the
domains of Engineering, Procurement and Construction (EPC), Power, Solar, Natural Resources and
Infrastructure over the last two-and-a-half decades. Its continuous focus on innovation and
expansion together with its commitment to quality and excellence has contributed significantly to
the progress that the company has made over a short span of time. The 25-year-old Lanco group is,
today, uniquely poised to attain leadership position in its areas of operation.

Propelling the organisation's dynamic advancement is its strategic plan -- Lanco's Vision -- that is
aimed at building an achievement-oriented and customer-centric organisation, committed to
attaining industry leadership, with aggressive growth plans for the business verticals that it operates
in.

Lanco Infratech Limited became a listed entity in November 2006 following the Initial Public Offering
of shares. Lanco's gross revenue before elimination as on 31 March 2016 was Rs 9,999 Crores (USD
1.51 billion*Seamless integration of its core business competence and strength, EPC, with other
domains such as infrastructure, construction and power, has borne rich dividends for Lanco. The
organisation's expertise in building large civic and urban infrastructure projects has been deployed in
constructing thermal and hydro power projects across the country. In a bid to find cost-effective,
sustainable and green solutions to the country's energy requirements, Lanco has made its presence
felt in the area of solar power as well. Lanco is fast emerging as one of the leading private sector
power developers in India with 3,460 megawatt (MW) under operation and 4,636 MW under
construction.).

In a strategic move that provides increased fuel security for its current power generating assets and
its future power portfolio expansions, Lanco through its Australian subsidiary, Lanco Resources
Australia, has acquired Griffin Coal Mining Company and Carpenter Mine Management. Griffin Coal
owns the largest operational thermal coal mines in Western Australia, producing around 4 million
tonnes per annum (mtpa) of coal which can be ramped up to upto 18 mtpa in the near term, post
development of evacuation infrastructure. Lanco also has strategic global partnerships with leading
power companies including Genting, Harbin, GE, Dongfang, Doosan, etc.

HISTORY:

LANCO's history as an organisation is a reflection of the spirit of entrepreneurship, a far-sighted

vision, dynamic leadership, ability to overcome adversity and take calculated risks, teamwork by
committed professionals, and agility to take advantage of emergent opportunities.

1960-76:
The Seeds of Enterprise
In 1960, brothers Amarappa Naidu, Venkata Rama Naidu and Venkata Ratnam Naidu laid the
foundation of LANCO by starting a transport business with one truck (a converted bus) inherited
from their father L.V. Subba Naidu. Amarappa Naidu's business acumen and the brothers'
commitment soon led to orders pouring in from construction companies that needed material to be
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transported to and from construction sites. By 1976, the thriving business boasted of a fleet of 100
trucks that serviced the construction industry in Andhra Pradesh.

1977-85 :
Building the Foundation
Having succeeded beyond imagination, the Naidu brothers planned to enter the construction
business themselves. In 1980, Uma Maheshwar Rao and Company was established and soon made a
name for itself in the construction industry by delivering several prestigious turnkey projects in
Andhra Pradesh and Karnataka. By 1980, the company's assets included 150 trucks, eight excavators,
10 bulldozers and 15 drilling machines. In 1985, L.V. Rama Naidu's son, L. Rajagopal, a mechanical
engineer, was inducted into the company.

1991-94:
Seizing Opportunities
Taking advantage of the new opportunities offered by the liberalisation of the Indian economy, L.
Rajagopal diversified from construction business to manufacturing by setting up a pig iron plant of
90,000 tpa. He took inspiration from his uncle Lagadapati Amarappa Naidu and named this new
business as LANCO Ferro. LANCO is an acronym for Lagadapati Amarappa Naidu and Company and is
tribute to his vision and ideals. In 1991, L. Rajagopal inducted his younger brother, L. Madhusudhan
Rao, to manage the business at LANCO Ferro, which was renamed as LANCO Industries in 1993. L.
Madhusudhan Rao launched several ambitious initiatives and expanded LANCO Ferro into a fully-
integrated plant producing cement, ductile iron pipes and pig iron.

2000-05 :
A New Century, a New Vision
In 2002, L. Rajagopal retired from the business to pursue public life, and L. Madhusudhan Rao took
over as the Chairman of the organisation. This was a period of change and reorganisation, as LANCO
prepared itself to meet the challenges of a new century. LANCO also consolidated its position in the
power sector by commissioning large projects, winning bids for several others, and winning a range
of business and industry awards and prestigious recognition forums.

TYPES OF BUSINESS UNITS:

1.Engineering, Procurement & Construction

   Power Projects: Coal, Gas, Hydro and Solar
 Transmission – Power , Water etc.
 Transportation – Roads, Metros etc.
 Industry projects – Manufacturing plants
 Building – Large scale building complexes, Hospitals etc.

 With its unique 'concept to commissioning' execution model that considers time, cost and quality
parameters, Lanco is an established industry leader in executing large projects. The organization’s ISO
9001:2008 certified EPC division has several years of experience in civil construction projects and in
implementing infrastructure projects in power, transmission, transportation and industrial sectors through
the EPC route. With strong capabilities in complete infrastructure business value chain, the division has
highly experienced professionals, and strategic relationships with critical national and international
 Lanco infratech limited

equipment manufacturers and consultants, which makes Lanco's EPC team a formidable force.

The organization has leveraged several years of experience gained through execution of various
construction, infrastructure and power projects through the EPC route, to now extend its services to
external customers at national and international level. With the three major external projects which are
currently under execution- the2x600 MW Moserbaer project, the 3x 660 MW Koradi Thermal Power
project and the 2 x 125 MW Akaz Power project in Iraq, Lanco aims to become a global EPC organization in
the near future.

2.LANCO SOLAR:

Integrated PV manufacturing across the value chain – Vision

of Sand to Power Technology
Lanco Solar is fast gaining reputation as one of the best quality PV panel & module manufacturers
in India. The products and services offered by Lanco Solar include top quality PV modules
manufactured in India, PV system installation comprising off-grid and on-grid rooftops and ground
mount solar farms. Lanco Solar is known for uncompromising quality, efficient service and to offer
best PV panel at a very competitive price in India.

Based on the ‘sand to power’ strategy, Lanco Solar is setting up a fully-integrated PV panels
manufacturing project for manufacture of high-quality polysilicon, silicon ingots/ wafers and
modules in a 250 acre SEZ at Chhattisgarh, India. The state-of-the-art plant boasts of many ‘firsts’
in India – crack-free modules, being one among them. The project, which is being built with latest
technology and engineered by leading global players, has a production capacity of 1800 TPA of
Polysilicon, 300MWp/ year of ingots and wafers, high efficiency solar cell panels and modules.
The first phase of this project is being implemented with a total cost of US$ 300 million.

Features
 Cell line capable of handling both mono-crystalline and multi-crystalline wafers.
 High-precision, high-productivity wire saws to turn ingots into thin wafers of 180 -230
micron thickness to ensure the highest quality.
 Latest equipment and technology sourced to produce high-efficiency cells.

3.Natural Resources:
 The Indian Resource Industry has been witnessed a noteworthy development in recent past. In
view of that, Lanco has gained significant momentum by building its natural resources portfolio of
operating and under-development assets in India & Globally. Developing of natural resource
portfolio is Lanco’s strategic move towards ‘Project Integration’ to secure fuel supply to its power
plant as well as ‘Market Strategy’ to cater to the Global Market.

Coal Business has remained the key focus area for Lanco in the recent past. With this, Lanco has
joined the exclusive league of mine developer & operators in India having more than 2 billion
tonnes of coal resources into its business portfolio. This portfolio is currently producing more than
4 MTPA of coal and equipped to augment the production from 4 MTPA to ~40 MTPA by 2020.
 Lanco infratech limited

The Lanco Resources division comprises the following verticals:

Coal Mining
   
  Operating:
   
 Griffin Coal Mine, Australia (Largest coal mine in Australia)
 
In the face of bourgeoning global coal market, Lanco has made a strategic move into
the global resources industry. The company, though it’s Australian Subsidiary, acquired
"Griffin Coal" in the year 2011; the largest individual supplier of thermal coal to
Western Australia's Industrial coal market with over 1.2 billion tons of coal resources.
Griffin currently mines around 4 million tons per annum (MTPA), which essentially
caters to domestic customers with an export quantity of around 0.75 MTPA through
 
Kwinana port.

From the present level of production of 4 MTPA, Lanco plans to ramp up the mining
production capacity four-fold to around 18 MTPA by the year 2018.

   
4.Infrastructure:
Lanco's Infrastructure development business is focussed on executing large civil and urban
projects such as roads, highways, ports, airports, railway lines, etc. The division envisions a pan
India Build, Operate and Transfer (BOT) project portfolio worth Rs. 10,000 crore by 2015, with
a strong focus on the highways sector.
 
The projects currently under Highway portfolio include two major National Highway (NH)
projects in the State of Karnataka and one project in the State of Uttar Pradesh on BOT basis.

Toll operations started on the project NH-48 (Nelamangala Junction to Devihalli) from 25th
June 2012.

CORPORATE INFORMATION:

FUTURE PLANS:

Under
development:
   
 Tasra
 
  Lanco Infratech Limited is also developing the
Tasra Open Cast Project (Tasra OCP) of Steel
Authority of India Limited (SAIL).The Tasra coal
block, having geological reserves of approximately
127 million tons, is located in Jharia Coalfield of
Dhanbad District in the state of Jharkhand.
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Lanco had been selected as the Mine developer and

operator (MDO) by SAIL for the development and
operations of Tasra OCP through competitive
bidding process. As per the agreement, Lanco shall
develop the Tasra OCP coal block and coking coal
washery for SAIL. Tasra OCP has been planned for
a peak production capacity of 4 MTPA of ROM coal
and washery capacity of 3.5 MTPA has been
proposed. Lanco will also develop and operate a
captive power plant of 200 to 300 MW for SAIL
through a joint venture company (JVC), based on
the secondary products arising out of the Washery.
 
New Initiatives
 Coal Benefication/Coal Washeries
 Limestone Mines
   Coal Trading from Griffin Coal Mine, Western
Australia

STANDALONE BALANCE SHEET

   
Balance Sheet of Lanco Infratech ------------------- in Rs. Cr. -------------------
 Lanco infratech limited

Mar 17 Mar '16 Mar '15 Mar '14 Mar '13

  12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 330.26 273.78 245.09 239.24 239.24
Equity Share Capital 330.26 273.78 245.09 239.24 239.24
Reserves 707.40 1,482.14 1,785.21 2,434.65 3,393.00
Networth 1,037.66 1,755.92 2,030.30 2,673.89 3,632.24
Secured Loans 5,201.58 6,433.00 6,155.17 4,739.20 3,311.96
Unsecured Loans 15.00 336.45 433.46 918.46 836.44
Total Debt 5,216.58 6,769.45 6,588.63 5,657.66 4,148.40
Total Liabilities 6,254.24 8,525.37 8,618.93 8,331.55 7,780.64
  Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

  12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 441.42 1,362.77 1,448.67 1,474.59 1,508.75
Less: Accum. Depreciation 128.73 592.14 549.72 441.34 388.46
Net Block 312.69 770.63 898.95 1,033.25 1,120.29
Capital Work in Progress 1.08 0.00 1.73 3.76 55.41
10,144.4
Investments 9,979.82 10,962.05 8,295.61 7,297.33
3
Inventories 1,448.81 1,403.23 1,426.64 1,422.44 1,311.40
Sundry Debtors 1,571.57 2,162.74 1,445.53 1,700.87 2,386.60
Cash and Bank Balance 52.88 65.38 329.65 122.63 54.65
Total Current Assets 3,073.26 3,631.35 3,201.82 3,245.94 3,752.65
Loans and Advances 4,536.50 4,663.36 5,425.97 6,603.01 7,600.72
 Lanco infratech limited

Total CA, Loans & Advances 7,609.76 8,294.71 8,627.79 9,848.95 11,353.37
Current Liabilities 11,775.33 10,470.27 11,819.07 10,754.07 11,942.73
Provisions 38.39 50.86 52.52 95.95 103.04
Total CL & Provisions 11,813.72 10,521.13 11,871.59 10,850.02 12,045.77
Net Current Assets -4,203.96 -2,226.42 -3,243.80 -1,001.07 -692.40
Total Assets 6,254.24 8,524.03 8,618.93 8,331.55 7,780.63

Contingent Liabilities 37,338.79 0.00 23,758.67 18,688.21 18,772.85

Book Value (Rs) 3.13 6.39 8.25 11.11 15.09