Project

Strictly Private and Confidential
A Unique Investment Business Proposition

Madhucon Infra Limited
August 2014
Madhucon Group Overview

Madhucon Group History
Madhucon Group 2020 - Business Architecture
Madhucon Group: Corporate Structure of Domestic Business
Corporate Structure of Madhucons Infrastructure Portfolio Domestic
Madhucon Infra Ltd- Business Verticals - Domestic
MIL Road Vertical- Madhucon Toll Highways Limited

Power Vertical- Simhapuri Energy Limited Biz Proposition
Madhucon Infra Limited Mezz/Structured Finance Proposition
Annexures
Madhucon Group History

1983
Madhucon Projects Limited the flagship company of Madhucon Group was established. It has significant
operational infrastructure assets with interests in road BOTs, thermal power projects, mixed real estate development
and coal exploration & mining with a revenue of Rs 1,618Cr in FY 2014. MPL is listed on NSE and BSE
1988
Madhucon Granite Limited was established as a subsidiary of MPL and is in the business of quarrying dimensional
granite blocks and production of polished slabs catering to the needs of international markets all over the world.
2005
Simhapuri Energy Limited (SEL) was established to develop, construct, operate and distribute power from coal
based power projects in India. SEL is implementing 600MW imported coal based thermal power plant. Phase I of
300MW is operational since May 2012. 150MW of Phase II is also operational and remaining 150MW is in the final
stages of synchronization.
PT Madhucon Indonesia (PTMI) was set up in 2005. The Company owns coal mines and engages in mine
development, exploration and trading of coal.
2006
2008
2012
Madhucon Infrastructure Limited (MIL), established in 2006 is a subsidiary of MPL and is the holding company for
infrastructure assets such as BOT Roads, Power and coal mines.
MIL's wholly-owned subsidiary Madhucon Toll Highways Ltd ("MTHL"), formed in 2008 is the Group's road Infra
assets company, having executed 1,459 lane km (across four toll-based assets) and 1,953 lane km (two toll roads,
three annuity roads) under construction and implementation
PT Madhucon Sriwijaya Power (PTMSP), set up in 2012,is a Madhucon group company and engaged in thermal
power generation. It is currently implementing a mine mouth of 300MW (2X150MW) power project. PTMSP plant
is located in Dawas, South Sumatra, Indonesia
International
Domestic
Madhucon Group 2020 - Business Architecture

Ports, Airport Logistic
W
a
s
t
e
Highways and
Toll Gates
Road projects
BOT & Annuity
Industrial
& Real Estate
Projects
Railways
Projects
Thermal Power
Co gen Power
Madhucon
Group
Transportation
Project Management & Execution
Infrastructure
Power
Design & Engineering
Construction
Management
M
a
n
a
g
e
m
e
nt
Bridges &
Flyovers
Project Development &

Engineering
W
a
t
e
r
EPC
Irrigation
Dams ,
Spillways
And Tunnel
Granite Mine
& processing
India
Coal Mine
project
South Africa
Coal Mine
Project
Indonesia
Oli & Gas, Pipe Line
Mine Mouth Project

Indonesia
Dawas Mine
Muara Dua
Power Project AP
India
Mining
I
n
d
u
s
t
r
i
a
l
&
T
e
c
h
p
a
r
k
Madhucon Group: Corporate Structure of Domestic Business

Madhucon Projects Ltd
94.89%
Infrastructure
50.3%
[Madhucon Infra Ltd.]
Roads
Power
99.97%
91.95%
Power
[SEL]
Roads
[MTHL]
Phase I 300 MW Operational

Phase II 150 MW Operational
Phase II 150 MW COD Oct 2014
4 Operational toll road assets

3 Under construction road assets
2 Under implementation road assets
51.00%
39.79%
50.97%
48.86%
91%
17.14%
51.05%
100%
100%
48.75%
24.48%
54.12%
74.86%
92%
78.67%
Madhucon Agra
Jaipur Exprwy.
TN Exprwy.
Trichy
Thanjavur
Exprwy.
Madurai
Tuticorin
Exprwy.
Vijayawada
Machilipatnam
Rajauli
Bakhtiyarpur
Toll
Toll
Toll
Toll
Toll
Toll
45.58%
100%
100%
100%
Chhapra
Hajipur
Exprwy.
Barasat
Krishnagar
Exprwy.
Ranchi Exprwy.
Annuity
Annuity
Annuity
MPL shareholding
MIL shareholding
MTHL shareholding
MIL effective shareholding
Corporate Structure of Madhucons Infrastructure Portfolio - Domestic

Madhucon Projects Ltd
Infrastructure
[Madhucon50.3%
Infra Ltd.]
Roads
Power
Power
[SEL]
Roads
[MTHL]

Phase I 300 MW Operational

Phase II 150 MW Operational
Phase II 150 MW COD Oct 2014
Corporate Structure of Madhucons Power & Mine Portfolio Global

NamaHolding PtyLtd
Singapore
Energy Vertical
Nama Energy Pty
Nama MinePty
Mine
PT Mine Indonesia
Power
PT Power Indonesia
Mining Vertical
MineMouth300Mwproject
inconstruction phase
Mine- Concession area Dawas Province

of South Sumatara with 550 mntonnes
reserve as per JORC Report
Exploration andMining atinitial level of
operation
Madhucon Infra Ltd- Business Verticals - Domestic

Roads -Madhucon Toll Highways Ltd.
SPV
Type
State
Length
(Lane
km)
Power - Simhapuri Energy Ltd.

Status
Madhucon Agra Jaipur

Expressways (MAJEL)
Toll
UP -RAJ
251
Operational
TNDK Expressways
(TNDK)
Toll
TN
352
Operational
Trichy Thanjavur
Expressway(TTEL)
Toll
TN
288
Operational
Madurai Tuticorin
Expressways (MTEL)
Toll
TN
568
Operational
Chhapra Hajipur
Expressways (CHEL)
Annuit
y
Bihar
272
Under Construction
Barasat Krishnagar
Expressways (BKEL)
Annuit
y
West
Bengal
340
Under Construction
Ranchi Expressways (REL)
Annuit
y
JHARK
654
Under Construction
Vijayawada Machilipatnam
Expressways (VMEL)
Toll
AP
258
Under Development
Rajauli Bakhtiyarpur
Expressways (RBEL)
West
Bengal
SEL Phasing
Type
State
Capaci
ty(
MW)
Phase 1
CFBC Sub
critical
Coastal
AP- seem
Andhra
300
Operational
CFBC Sub
critical
Coastal
APseemand
hra
300
Operational
660
Planned
660
Planned
Phase -2
Phase -3
Phase 4l
Bihar
429
Under Development
Super
Critical
Super
Critical
Coastal
APseemand
hra
Coastal
APseemand
hra
Status

MIL Road Vertical- Madhucon Toll Highways Limited (MTHL)
MTHL: Portfolio of 9 road assets
MTHL -Roads Projects Snapshot
MTHL-Operational Assets - Financial Dashboard
MTHL-Under Construction Assets - Financial Dashboard
MTHL-Under Development Assets -Financial Dashboard

Annexures
MTHL: Portfolio of 9 road assets

Infrastructure
50.3%
[Madhucon Infra Ltd.]
Roads
Power
Roads
[MTHL]
39.79%
91%
100%
48.86%
48.75%
Madhucon Agra
Jaipur Exprwy.
TN Exprwy.
Trichy
Thanjavur
Exprwy.
Toll
Toll
Toll
45.58%
100%
100%
24.5%
24.48%
92%
74.86%
72.00%
92%
Madurai
Tuticorin
Exprwy.
Vijayawada
Machilipatnam
Rajauli
Bakhtiyarpur
Toll
Toll
Toll
100%
100%
100%
100%
Chhapra
Hajipur
Exprwy.
Barasat
Krishnagar
Exprwy.
Ranchi Exprwy.
Annuity
Annuity
Annuity
MTHL shareholding
MIL effective shareholding
MTHL -Roads Projects Snapshot

Company
Type
MIL
share*
Length
(Lane
km)
Total
Project Cost
(Rs Cr)
Debt
(Rs Cr)
Equity
(Rs Cr)
Grant (Rs
Cr)
Concession
(years)
COD /
Exp
COD
Risk Matrix
Operational Road Assets

Madhucon Agra Jaipur
Expressways (MAJEL)
Toll
91%
251
387.9
230
99
38
25
May 09
Low
TNDK Expressways
(TNDK)
Toll
100%
352
376
224
77
75
20
Nov 09
Low
Trichy Thanjavur
Expressway(TTEL)
Toll
100%
288
423
261
98
64
20
May 11
Low
Madurai Tuticorin
Expressways (MTEL)
Toll
24.5%
568
982
598
240
144
20
Jun 11
Low
Under Construction Road Assets

Chhapra Hajipur
Expressways (CHEL)
Annui
ty
100%
272
870
585
285
15
Aug 14
Medium
Barasat Krishnagar
Expressways (BKEL)
Annui
ty
100%
340
980
706
274
17
Dec 15
Medium
Ranchi Expressways (REL)
Annui
ty
100%
654
1,655
1,192
463
15
Dec 15
Medium
Under Development Road Assets

Vijayawada Machilipatnam
Expressways (VMEL)
Toll
92%
258
740
387
144
209
20
March
2016-
Medium
Rajauli Bakhtiyarpur
Expressways (RBEL)
Toll
79%
429
1,360
952
408
30
March
2017-
Medium
MTHL-OPERATIONAL ASSETS - FINANCIAL DASHBOARD

Policy paralysis Regime
Particulars (Rs Cr)

Sales
EBITDA
Depreciation
Interest
PAT
Debt
Particulars (Rs Cr)
Sales
EBITDA
Depreciation
Interest
PAT
Debt
Particulars (Rs Cr)
Sales
EBITDA
Depreciation
Interest
PAT
Debt
Particulars (Rs Cr)

Sales
EBITDA
Depreciation
Interest
PAT
Debt
FY12A
Policy push Regime
FY 13A
FY 15P
FY 14A
FY 16P
FY 17P
FY 18P
FY 19P
48
54
56
63
71
71
81
92
41
15
27
(37)
229
43
18
29
(4)
226
11
(35)
29
(5)
220
53
7
27
15
206
57
8
25
19
189
57
9
23
19
177
66
10
22
27
161
75
12
19
35
138
FY12A
31
26
23
26
(29)
175
FY12A
21
17
21
23
(30)
229
FY12A
42
35
47
51
(70)
551
FY 13A
FY 14A
37
37
31
31
22
(30)
25
27
(23)
(9)
186
186
FY 15P
FY 13A
FY 14A
25
28
21
22
23
23
27
26
(34)
(32)
242
242
FY 15P
FY 13A
FY 14A
63
69
53
59
63
63
68
69
(88)
(84)
581
580
FY 15P
42
35
11
24
(0)
186
48
43
28
29
(15)
231
79
68
63
66
(62)
578
FY 16P
48
43
13
24
5
175
FY 16P
41
35
28
29
(22)
228
FY 16P
103
91
63
68
(40)
577
FY 17P
54
46
15
22
9
160
FY 17P
47
42
28
29
(50)
226
FY 17P
118
109
63
67
(47)
563
FY 18P
61
52
17
20
13
140
FY 18P
54
47
28
29
(9)
219
FY 18P
135
126
63
68
(60)
549
MAJEL
(TollBased)
FY 19P
69
60
19
17
19
114
TNDK
(TollBased)
FY 19P
61
54
28
27
(1)
204
TTEL
(TollBased)
FY 19P
154
140
63
66
8
526
MTEL
(TollBased)
MTHL-UNDER CONSTRUCTION ASSETS - FINANCIAL DASHBOARD

Particulars (Rs Cr)
FY 16P
FY 17P
FY 18P
FY 19P
FY 20P
Sales
131
131
131
131
131
EBITDA
125
125
124
124
127
Depreciation
78
78
78
78
78
Interest
68
62
56
50
43
PAT
(21)
(16)
(10)
(5)
(17)
Debt
532
486
439
386
326
FY 19P
FY 20P
FY 21P
Particulars (Rs Cr)

Sales
EBITDA
Depreciation
Interest
PAT
Debt
Particulars (Rs Cr)

Sales
EBITDA
Depreciation
Interest
PAT
Debt
FY 17P
FY 18P
148
140
77
82
(19)
148
139
77
78
(16)
148
139
77
74
(12)
148
140
77
69
(21)
148
143
77
64
(43)
674
641
604
562
516
FY 17P
FY 18P
FY 19P
FY 20P
FY 21P
266
252
139
141
(28)
266
251
139
134
(21)
266
250
139
126
(14)
266
253
139
117
(32)
266
259
139
106
(74)
1,142
1,083
1,012
932
842
CHEL
(Annuity based)
BKEL
(Annuity based)
REL
(Annuity based)
MTHL-UNDER DEVELOPMENT ASSETS -FINANCIAL DASHBOARD

Particulars
(Rs Cr)
Sales
EBITDA
Depreciation
Interest
PAT
Debt
Particulars
(Rs Cr)
FY 17P FY 18P FY 19P FY 20P FY 21P

63
57
28
48
(20)
385
72
65
28
48
(12)
383
82
75
28
48
(2)
381
93
86
28
47
8
370
105
98
28
45
1
350
VMEL
(TollBased)
FY 18P FY 19P FY 20P FY 21P FY 22P
Sales
159
179
202
229
260
EBITDA
145
165
187
213
242
Depreciation
66
66
66
66
71
Interest
128
126
123
118
112
PAT
(50)
(28)
(3)
22
46
Debt
943
924
895
857
800
RBEL
(TollBased)

Project Snapshot Operational Power Project
Project Update
Power off take Snapshot
Key Project Parameters and Capex Scale up
SEL Operational Project -Financial Dashboard

Annexures
Project Snapshot Operational Power Project

Particulars
Project Details
Planned Capacity
Ph-I&II: 600 MW (4x150 MW)
Plant type
FSA Linkage /Plan
Sub Critical
Captive Mine (Overseas): Sponsor owns coal mines in Indonesia which assures coal
supply over long term
Imported coal supply agreement for 15 years.
Imported coal Agreement for supply of 3.0 MTPA for 15 years with Group company
which owns the mines
Procurement from open market to take price advantage and as a stand by arrangement
Phase-I (300MW) and Phase -II (3000MW)
450 MW Operational and 150 MW is under synchronization
Plant Commercial Operations
Off take Agreement
PPA with PTC India 200 MW (Gross) for 25 years
Balance 100 MW (Gross) on Merchant Basis
Power Tolling Arrangement(PTA) with PTC India 150 MW (Gross) for 25 years. This
PTA(Unit-IV) is under process for conversion to PPA
Balance 150 MW(Unit-III) to be traded on Merchant Basis
Project Structure
PhaseI & II
Capacity
Project Cost
Project Leverage
Project Time Line for Ph-II
600MW (Phased development)
INR 3510 Cr/ 585mn USD

2.4:1
Oct14
Project Update
Particulars
Land & Water
Status
Entire land of 537 acres is acquired
Water intake from Kadaleru creek located adjacent to plant
EPC: Madhucon Projects Ltd. for Phase-I&II
EPC & Equipment
BTG: Boiler-WUXI Huaguang Boiler, Turbine-HTC, Generator-Jinan Power Eqp Factory

BoP: CHP-Tecpro, AHP-Macawerbeekay, Switch Yard-ABB, CT-Hamon Shriram
Fuel Supply
Captive Mine (Overseas): Sponsor owns coal mines in Indonesia which assures coal supply over long term.
Long term Imported coal supply agreement for 15 years.
Imported coal supply agreement signed with Mine owner for 3 MTPA for tenure of 15 years
Procurement from spot market based on competitive rates and requirement
Fuel is being transported by road from port to plant location
Fuel Transportation
Direct transport from Wharfage to plant coal stock yard.

Conveyer belt for direct transportation from South port to plant coal stock yard is under development.
Power Evacuation
O&M
BPTA signed with Powergrid Corporation (PGCIL) for 546 MW

Connected to Powergrid Manabolu 765/400kV substation through dedicated 14kms 400 kV D/c (Quad)
In-house O&M managed by a dedicated team
Power off take Snapshot
Phase-I
200 MW gross
100 MW gross
Merchant (PPA)
Merchant basis
Trader
PTC India
Simhapuri Energy
Term
25 years
Short term/Medium
PPA
PPA
174.5 MW Net
90 MW gross
APCPDCL
APCPDCL
Tariff
Rs 5.40/ kWh
Rs 5.40/ kWh
Term
Until 29.May.15
Until 29.May.15
Discom
Off-take
Payment security by PTC for contract term
Phase-II
PPA
150 MW gross
PPA
**Power Tolling agreement (Under conversion to PPA)
Trader
PTC India
Term
25 years
Tariff
Rs 1.50/kWh (To be offered under PPA)
Traded through PTC
130 MW Net
Merchant basis with KSEB
Simhapuri Energy
Rs 5.56/kWh
Key Project Parameters and Capex Scale up
Capacity
600 MW
Capital Cost
Rs 3,510 Cr
Capex/MW
Rs5.85 Cr/ MW
DE Ratio
72.27%:27.73%
PLF (%)
85%
Aux Consumption
9.0%
Station Heat Rate
2,385
Interest rates
Ph-I
12.29%
Ph-II
13.75%
O&M Cost/MW
Rs 0.09 cr
O&M Escalation
3.00%
Coal supply mix
100% Imported
Landed cost (Coal)
Rs 3,533/MT
Coal GCV
4,200 Kcal/ Kg
Coal escalation
2.0%
80-IA
Considered
In Rs Crore
Particulars
Land
Civil Works
EPC Works
Pre-Operative Expenses
Contingency
Interest During Construction
Working Capital Margin
Total
Particulars
Equity
Debt
Total
Ph-I
27.5
188.0
1,096.5
53.2
0.0
250.5
23.0
1,638.7
Ph-II
25.3
189.6
1,267.0
58.4
0.0
306.8
24.3
1,871.4
Total
52.8
377.6
2,363.5
111.6
0.0
557.3
47.3
3,510.1
Ph-I
Ph-II
Total
516
1122.4
1638.7
519
1352.4
1871.4
1,035.3
2,474.8
3,510.1
Power Sale Mix

Year 1 (FY15) Year 5
(FY 19)
Short Term
Long Term
100%
Year 25
40%
60%
SEL Operational Project -FINANCIAL DASHBOARD

POLICY PARALYSIS REGIME
Particulars (Rs. Cr)
FY13A
FY14A
Total Income
EBITDA
EBITDA Margins
PAT
PAT Margins
Debt/Equity
372
209
56%
29
10%
3.2
1103
397
36%
141
13%
2.4
Net Worth
804
974
POLICY PUSH REGIME

Total Income
EBITDA
FY 15P
FY 16P
FY 17P
FY 18P
FY 19P
FY 20P
2,209
2,250
2,280
2,317
2,357
2,246
1,147
1,133
1,121
1,112
1,102
1,035
52%
50%
49%
48%
47%
46%
512
23%
482
21%
494
22%
508
22%
523
22%
493
22%
1.55
1.08
0.79
0.59
0.44
0.33
1,548
2,030
2,524
3,032
3,555
4,048
EBITDA Margins
PAT
PAT Margins
Debt/Equity
Net Worth

Indicative Structured finance proposal
Transaction Structure
Transaction Structure and Benefits Details
Annexures
Indicative Structured finance proposal

Particulars
Amount (INR Crore)

Sources of Funds
Loan from Investor

NCDs issued by MIL to Investor
440
Revolving Credit Facility availed by Coal Trading Company from Investor
110
Total Cash Inflow
550
Use of Funds
Capital Infusion in Road SPV's

CHEL
80
REL
100
VMEL
70
BKEL
75
RBEL
75
400
Outstandings MIL
ICICI
100
Tata Capital
34
IFCI
16
150
Total Cash outflow
550
Transaction Structure (after repayment of first revolving credit)
Revolving
credit INR 110
crores
Coal Trading Co.

(Dubai/Singapore)
Annual
Procurem
ent 3.0
MTPA
Revolving
credit INR 110
crores
Coal Trading Co.

(Dubai/Singapore)
Nomura
Repayments
Annual
Procurem
ent 3.0
MTPA
Promoted by Promoter
Family
Promoted by Promoter
Family
Credit Facility
of INR 440
crores
ICICI,
TATA
Capital, IFCI
Payments for coal

supplied to SEL
Supply
coal to
SEL at
Coal Price
Index
Phase I 300 MW
Operational
Phase II 150 MW
Operational
Phase II 150 MW
COD Oct 2014
Strictly Private & Confidential
Payments for coal

supplied to SEL
Roads
[MTHL]
Madhucon Infra Ltd. (India)

Funds infused
into road assets
INR 400 crores
Power
[SEL]
Debt Repayment
of INR 110 Cr
INR 110 crores infused

as equity into MIL
Madhucon Infra Ltd. (India)

Outstanding
loan repayment
of INR 150
crores
Nomura
Repayments
Supply
coal to
SEL at
Coal Price
Index
4 Operational toll
road assets
3 Under
construction road
assets
2 Under
implementation
road assets
Power
[SEL]
22
Roads
[MTHL]
Phase I 300 MW
Operational
Phase II 150 MW
Operational
Phase II 150 MW
COD Oct 2014
4 Operational toll
road assets
3 Under
construction road
assets
2 Under
implementation
road assets
Interest
Payment
Transaction Structure and Benefits Details

Structure
Coal Trading Company to be incorporated in Dubai /Singapore based on evaluation of the tax benefits
Coal Trading Company will be promoted by the Promoter family and will be thinly capitalized
Nomura will provide revolving credit facility of INR 110 crores to the Coal Trading Company
Nomura will also provide credit facility (NCDs) of INR 440 crores to Madhucon Infra Limited (MIL).
Out of the total proceeds of INR 550 crores, around 150 crores will be utilized for repayment of loans at MIL and balance will be
infused into road SPVs
Coal Trading Company shall procure coal at a discount to the coal index and supply coal at coal index price to SEL, thereby retaining
the necessary margins to repay the revolving credit facility of INR 110 crores
After the repayment of first revolving facility of INR 110 crores, Nomura will reinstate the revolving credit limit of INR 110 crores to coal
trading company which shall be utilized for infusion of equity into MIL. MIL will utilize this amount for part repayment of the NCD
facility of Nomura
Benefits of Structure
Precedence in Payment - The above structure shall result in repayment of loan and interest to Nomura from operating expenses of SEL that shall
have precedence in the waterfall mechanism over the other payments such as senior lenders payments. Thereby, the structure is more beneficial
when compared to structure where payments are made through dividends by SEL
Tax Benefit to SEL - As per the provisions of the Income Tax Act, coal payments are be tax deductible at SEL level resulting in tax benefit to SEL.
Further this structure results in saving of DDT of 17.5% , which would have been payable had the repayment been done through dividends
Tax Benefit to Coal Trading Company Coal Trading Company will be formed in a tax haven, thus providing income tax benefits to the company
Foreign Exchange Risk Coal Trading Company shall not be exposed to the foreign exchange risk as the purchase and sale of coal will be in dollar
terms
Lower Interest Rate The revolving credit facility of INR 110 crores will have lesser interest rate than working capital interest rates in India
23

Annexures
Infrastructure Landscape in India
MTHL Road Assets
Power Market Dynamics in India
Madhucon Business Model - Diagnostics
Valuation Drivers
MPL--EPC Vertical--financial Snapshot
Annexures
Infrastructure Landscape and Opportunities
Infrastructure Business Premise
Infra Financing An Economic Development Platform
Key GOI development initiatives Roads Sector
MTHL Road Assets

Valuation Drivers
XII Five Year Plan: Infrastructure investment (USD 1.072 tn)

3.50%
4.60%
2.70%
1%
0
1.60%
Power
Roads and Bridges
Telecom
32.70%
9%
Railways
Irrigation
11.50%
Water supply and sanitation

16.90%
16.40%
Ports
Airports
Storage
Source: Planning Commission,

Parameter
NHAI
Lane
2,4 .6 & Expressway
Kms
20,000 Kmnext 3 years@6,000 Km

per year
Business
Opportunity
Rs 12000 Cr ($ 2Bn)
NHDP
Non-NHDP
Expressw
ays
Express
ways
12,200
2600
3000
1000
10,000
200
200
Rs 360 Bn
($6bn)
Rs 32 Bn
($0.6Bn)
Rs 153 Bn
($ 26 Bn)
Ra 1400 Bn ($233 Bn)

Over next 3 years
5,000 kms of NHs to be taken up for
improvement in riding quality, 2,000 kms

for
strengthening
of
pavements,
construction of bridges of INR92 bn
investment.
Development of NHs under Border Road
Organization estimated at INR30 bn
1,610 kms in North Eastern region to be
taken up (estimated opportunity size of
INR120 bn)
Total of ~ Rs 800 Bn
Special Infra Corridor Projects

DMICProject Estimated INR 32000 Cr investmentby 2020 -1500 kms rail network.
CBICProjectEstimated INR 10000 Crinvestment Roadand Rail network
Growth momentum around- Mumbai, Bangalore, Chennai, Kolkata, Hyderabad & Ahmedabad
Infrastructure Business Premise
Business Case Vs Challenges

Government doesnt have room to develop infrastructure.
Under the EPC mode, the government funds the road projects
and a private developer undertakes the project.
Private investment will lead access to long term funds.
Under the PPP mode, the private developer develops the road
project and collects his return through toll or annuity.
Banks are not in position to fund infrastructure because of Asset

Liability mismatch.
Project Developers had bid aggressively during 2010-2012 when

the government awarded a record 147 road projects worth Rs
1.47
lakh
crore
(
Rs
1.47
trillion).
The high expectation while bidding was attributed to India's
high economic growth, which has slowed considerably over the
past
few
years.
Road projects worth Rs 83,000 crore ( Rs 830 billion) are
pending completion.
The National Transport Development Policy Committee, had
earlier pegged private investment needs in the road sector at Rs
6.65-lakh crore ( Rs 6.65 trillion) over the next 20 years , which
translates into Rs 33,250 crore ( Rs 332.50 billion) a year.
Infra Financing An Economic Development Platform
Key GOI development initiatives Roads Sector

Growth Drivers
Enabling Framework
Highways on new Government agenda
Single Window Clearance, Fast Track

clearances and exemptions (Environmental
,Land Acquisition, state level clearance,
Responsive Bureaucracy etc)
Planning to lay 10km per day
Quick Right of way (RoW) Approval
Investment Planned -$ 6.9 bn by 2020
Converting BOT Projects into Government

funded
Road Development results into multifold Increase in Banking Exposure in Road Sector
advantages in terms of Rural, Agriculture & from 11% -15%.
Industry Development.
Long tenure & low cost bankingfinance.
Annexures
MTHL Road Assets
MTHL Operational Road Assets
MTHL Under Construction Assets
MTHL Under Development Assets

Valuation Drivers
MTHL Operational Road Assets
MAJEL - Rajasthan
Particulars
Project Details
Location
Bharatpur- Mahwa section ofNH11 in Rajasthan
Length
251 Kms
Project Type
Toll Based
COD Date
May 09
Concession Period
Apr06 to Apr31 (25 years)
Total Project Cost
387.90 Cr
Equity
99.36 Cr
NHAI Grant
38.40 Cr
Debt
230.00 Cr
Project Leverage
1.67:1
Project Status
Operational
Toll collected FY 2014
48.15 Cr
Grant in 2014
8 Cr
TNDK Tamil Nadu

Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
NHAI Grant
Debt
Project Leverage
Project Status
Project Details
Karur Dindigal Section ofNH 7 in
Tamilnadu
352 Kms.
Toll Based
Nov 09
Oct 06 to Oct 26 (20 years)
376 Cr
76.86 Cr
74.66 Cr
224.00 Cr
1.48:1
Operational
37.25 Cr
MTEL Tamil Nadu

Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
NHAI Grant
Debt
Project Leverage
Project Status
Project Details
Maduraito Tuticorn Tamil Nadu
568 Kms.
Toll Based
June 11
Jan 07 to Jan 27 (20 years)
982.4 Cr
240.4 Cr
144.0 Cr
598.0 Cr
1.5:1
Operational
68.9 Cr
TTEL Tamil Nadu

Particulars
Length
Project Type
COD Date
Concession Period
Project Details
Tanjavur Trichy Section
ofNH67 in Tamilnadu
288 Kms
Toll
May 11
Dec 06 to Dec 26 (20 years)
Total Project Cost
422.60 Cr
Equity
NHAI Grant
Debt
97.25 Cr
64.35 Cr
261.00 Cr
Project Leverage
1.6:1
Project Status
Operational
27.57 Cr
Location
The project achieved Partial Tolling and is Operational

since 2011. Right of Way for 8 kms was recently awarded
by NHAI and full tolling for the entire stretch is expected
to start from Sep 2014.
MTHL Under Construction Assets
CHEL - Bihar
Particulars
Project Details
Location
Bihar
Length
Project Type
COD Date
Concession
Period
Total Project
Cost
Equity
Debt
Annuity
Project
Leverage
Project
Status
272 Km
Annuity
Aug 2014
Jan-2011 toJan-2026
(15 Years)
870 Cr
285 Cr
585 Cr
130.86 Cr
2.1:1
Under Construction
BKEL West Bengal

Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
Debt
Annuity
Project Leverage
Project Status
Project Details
West Bengal
340 Km
Annuity
Dec 2015
Aug-2012 toNov-2029 (17 Years)
980 Cr
274 Cr
706 Cr
148 Cr
2.6:1
Under Construction
REL - Jharkhand
Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
Debt
Annuity
Project Leverage
Project Status
Project Details
Jharkhand
654 Km
Annuity
Dec 2015
Jan-2013 toJan-2028 (15 Years)
1655.00 Cr
463.40 Cr
1191.60 Cr
266.40 Cr
2.6:1
Under Construction
MTHL Under Development Assets
VMEL- Andhra Pradesh

Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
Debt
Project Leverage
Project Status
Project Details
Andhra Pradesh
258 Km
Toll
March 2016
Aug 12 Aug 32 (20 years)
740 Cr
353 Cr
387 Cr
1.1:1
Under Development
RBEL - Bihar
Particulars
Location
Length
Project Type
COD Date
Concession Period
Total Project Cost
Equity
Debt
Project Leverage
Project Status
Project Details
Bihar
428 Km.
Toll
March 2017
Jun 14 to Jun 44 (30 years)
1360 Cr
408 Cr
952 Cr
2.3:1
Under Development
Annexures
MTHL Road Assets
Project Rationale - India: Power Scenario
Investment Opportunities in Indian Power Sector
Project Rationale: Southern Region Power Scenario
Andhra Pradesh Demand Supply Projection
Andhra Pradesh Upcoming Projects
Project Rationale : Andhra Pradesh Power Scenario
Market Driven: Short Term Market
Long Term Market (Proposed new Bidding norms)
Long Term Market: Capex Dynamics

Valuation Drivers
Project Rationale - India: Power Scenario
Energy Demand
'000 MUs
1500
11.0%
10.1%
8.5%
1000
8.5%
8.7%
10.0%
9.0%
500
8.0%
7.0%
2009-10
2010-11
Requirement
2011-12
Availability
2012-13
12.7%
10.6%
9.0%
15.0%
'000 MW
9.8%
100
10.0%
50
5.0%
0.0%
2009-10
2010-11
Requirement
2011-12
Availability
2012-13
Deficit
Overall peak deficit of over 12,000 MW in FY 13

The cost of power deficit in form of additional cost of diesel
back-up is US$ 7.3 billion a year
PLF of operational thermal capacities is less than 60% due to
non-availability of domestic fuel
Deficit
Peak Demand
150
As of FY13 India has total installed capacity of 223GW out

of which 130GW is coal fired
Out of 179 new projects with aggregated capacity of 236GW

only 79GW is commissioned/ advanced stages of
construction
33GW of capacity at various stages of development and
expected to be operational by 2017
Majority of the capacity dependent on Domestic fuel and
may turn stranded due to non-availability of fuel, approvals
and clearances
Investment Opportunities in Indian Power Sector

Characterized by shortage of supply vis--vis demand
Last 5 yr CAGR of 5.2% in electricity generation, while demand projected to grow at a CAGR of 7.2% from 2012-13 to
2016-17
Installed capacity of 183 GW, comprising 65% Thermal, 21% Hydro, 3% Nuclear and 11% Renewable
Capacity addition during 11th five year plan likely to be 50 GW. Planned capacity for 12th Five Year Plan is 75 GW
and 13th Five Year Plan is 93 GW (excluding Renewable)
Energy Deficit in India
All India Installed Capacity (245.39 GW)
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Thermal
Hydro
Nuclear
Renewable
Energy Deficit (%)
Peak Deficit (%)
Source: CEA
Project Rationale: Southern Region Power Scenario
State
AP
TN
KL
KA
Domestic
22%
24%
47%
40%
20.0%
Commercial
7%
12%
18%
12%
15.0%
Agricultural
31%
21%
2%
34%
10.0%
Industrial
32%
40%
28%
27%
Others
8%
3%
5%
7%
Energy Demand
15.5%
300
'000 MUs
250
6.4%
8.8%
5.2%
200
150
100
5.0%
50
0
0.0%
2009-10
2010-11
Requirement
2011-12
Availability
2012-13
Deficit
Peak Demand
18.5%
50
'000 MW
40
9.7%
6.4%
14.4%
20.0%
15.0%
30
10.0%
20
5.0%
10
0
0.0%
2009-10
2010-11
Requirement
2011-12
2012-13
Availability
Deficit
Capacity Flow- Central grid to Southern Region

2013-14
1903 MW
2014-15
3403MW
2015-16
3903MW
2016-17
Occasional congestion
Southern regions %deficit is higher than All India average

Increase in deficit due to high demand from Industrial
category
Decline in Natural gas output from KG D6 fields resulted
in idling 2600 MW of gas based capacity
Only 1500 MW additional capacity available from FY14
onwards for Southern region with new Central Grid
interconnection
Andhra Pradesh Demand Supply Projection

Demand - Supply projection of AP - Base Case (MU) considering tie-up from Upcoming projects
Unit
FY 14-15
FY 15-16
FY16-17
FY17-18
FY18-19
MU
44,318
48,052
52,112
56,598
61,350
13.29%
13.18%
12.83%
12.55%
12.28%
Energy Requirement
MU
51,109
55,345
59,780
64,724
49,940
Energy Availability-Long term

sources
MU
45,450
50,030
54,661
58,702
59,723
Energy Deficit
MU
5,659
5,315
5,119
6,022
10,217
Energy Deficit
11.07%
9.60%
8.56%
9.30%
14.61%
Peak Deficit
14%
12%
11%
12%
17%
Sales
Approved Losses
# Energy availability in FY 14-15 includes - 6000 MU tied up with Short term sources
AP would face energy deficit in the range 8.5-15% over the next five year period even to maintain the existing power supply
scenario (7 hours Avg supply, power cuts to Domestic consumers etc.)
Power capacity addition projection is not commensurate with the increase in energy demand.
Andhra Pradesh Upcoming Projects

Demand - Supply projection for Andhra Pradesh - Base Case (MU)
Comm. During
Under Construction
Capacity
2014-15
Govt.
SDS (Krishnapatnam) TPP-I (2x800 MW)
1600 MW
800 MW
Rayalaseema TPP Stage IV U6 (1x600 MW)
600 MW
Nagarjunasagar Tail Pond Dam (2x25 MW)
50 MW
50 MW
Thermal PowerTech (2x660MW)
1320 MW
660 MW
NCC Power (2x660MW)
1320 MW
Meenakshi Energy Ph-II (2x350MW)
700 MW
Hinduja Power (2x520MW)
1040 MW
520 MW
Pvt.
Under Adv. Stages

DrNTTPS Stage-V (1x800MW)
800 MW
SDS (Krishnapatnam) TPP-II (1x800 MW)
800 MW
Polavaram HEP (12x80MW)
960 MW
Project Rationale : Andhra Pradesh Power Scenario
Power Purchase Portfolio FY13

45000
16.00
40000
14.00
35000
13.5% is purchased through

short term sources (Bi-lateral
and Exchanges)
12.00
10.00
25000
20000
15000
10000
8.00
Rs 6/ kWh
6.00
4.00
5000
2.00
0.00
Rs/ kWh
MUs
30000
Rs10/ kWh
AP state Power purchase

from all sources is 103535
MU in FY13
Increasing deficit met through costlier Short term

sources
Supply deficit due to Interstate Grid constraints
Declining domestic gas production, doubled gas
price and expensive RLNG
Planned Coal based capacity addition far from
completion
Market Driven: Short Term Market
*Short Term Trends: Southern Region

Rs/ kWh
Item
Short Term (Bi-lateral)
Short Term (Exchange)
Tenure
< 1 year
< 2 weeks
Intra-day
Day, week, term ahead
Bi-lateral Trade/
Contestable customers
Exchange (IEX/ PXIL)
4% market share
2% market share
Months
FY14
FY15
FY16
Apr
8.00
8.43
5.92
May
8.00
8.43
7.13
June
7.00
4.87
5.17
July
7.00
6.93
7.71
Aug
7.00
6.49
7.27
Sep
7.00
4.83
5.19
Southern Region
Oct
6.80
4.78
5.14
Nov
5.63
3.98
4.28
Dec
6.08
4.86
5.20
Jan
6.55
6.25
7.14
Feb
5.16
4.52
6.40
Mar
3.97
3.63
4.10
Avg Prices
6.52
5.67
5.89
Contract
type
Market
share
2013-14
2014-15
2015-16
Demand (000 MU)
304
327
351
Supply (000 MU)
230
267
290
24.5%
18.3%
17.4%
Increase in demand (%)
7.3%
7.3%
Increase in Demand met (%)
16.2%
8.5%
Shortfall (000 MU)
* Tariffs are subject to higher new capacity addition and better PLF case. However, the tariff would move upward due lower PLFs and delay in
commissioning of new projects.
Long Term Market (Proposed new Bidding norms)
Tariff Bid
Fuel Charge
Transportation
Charges
Transmission Charges
& Losses
Fixed Charge
Power generation source

Linkage coal from CIL

with Captive coal block

with imported coal
Power generation source with

captive mine outside India
Rs/kWh
"Pass Through"
Rs/kWh
Rs/kWh
"Pass Through"
[Utility specified
indicative cost
(Rs/kWh) based on
approx market
prices]
US$/kWh
[not exceed/ less

than Utility specified
ceiling/ floor charge]
[reflects between 80%-90%

price of an Intl index
determined by Utility and
shall not exceed/ less than
ceiling/ floor charge]
Rs/ kWh
Rs/ kWh
Rs/ kWh
Freight and Transporta tion

charges payable as per PSA
Rs/ kWh
Rs/ kWh
Rs/ kWh
Rs/ kWh
Rs/kWh
[revised annually to
reflect 30% of the
variation in wholesale
price index (WPI)]
Rs/kWh
reflect 30% of the
price index (WPI)]
Rs/kWh
reflect 30% of the
price index (WPI)]
Rs/kWh
reflect 30% of the
price index (WPI)]
Note: Foreign exchange

risk borne by Utility
Note: Foreign exchange risk

borne by Utility
Long Term Market: Capex Dynamics
Project Cost: Upcoming power plants by FY 18
Indicative Project Cost

Land Cost
2.3%
Civil Works (incl Piling Cost, FGD

cost, Jetty Cost)
17.4%
EPC costs other than Civil Works
59.0%
Pre-Operative Expenses / Overheads
3.5%
Contingencies
2.5%
Financing Charges
0.5%
Margin Money for WC
2.4%
Interest During Construction
12.5%
Total Project Cost
100.0%
Cost/ MW (approximate)
Rs 7.33 Cr
Increase in Project Costs of upcoming projects due to

change in macro level economics
Project costs of upcoming/ planned coal based projects
effected due to exchange rates and higher escalations due
to delays
Commissioned projects are highly competitive with New
bidding norms
Projects under
construction/ planning
Projects commissioned
(SEL)
Fuel Charge
Rs/ kWh
"Pass Through"
Rs/ kWh
"Pass Through"
Fixed Charge
Rs 2.25/ kWh
Total Tariff
Fuel Charge
+ Rs/ 2.25 kWh
Competitive Analysis
Annexures
MTHL Road Assets
Valuation Drivers
58
Madhucon Business Model Diagnostics
Road Vertical
Challenges
Solutions
25yrs project life to be funded

through 7yrs loan tenure
Strain on project developer
resulting him to charge higher
user charges for quicker payback
Asset liability mismatch for
lenders
Sub Standard asset for Bank and
sub-optimal performance for
project developer
Land Clearances
Right of way
Long term Patient capital financing

with competitive pricing and longer
tenure to eliminate ALM mismatch
for lenders & Cash flow mismatch
for project developer
Energy Vertical
Fuel Securing for life of project

Fuel Starved Plant
Higher Dependence on imported coal
Energy security issue
Power deficit Scenario
Environmental Clearances road block for
mining
Mining license allocation
Reduce dependence on imported coal

Push to Stalled Projects
Coal India Ltd Capacity ramp up to meet
demand of coal starved power projects to de
stress balance sheet
Annexures
MTHL Road Assets
Valuation Drivers
Valuation Drivers
Experienced management team with proven
expertise in developing & operating large
projects.
Experienced
Management
Power Vertical
Operational
Asset Strategically placed in

power deficit state
Market Driven PPA with a blend of

Short term and Sustainable long term
revenue stream
FSA Linkage de-risking
CaptiveCoal Mine in Indonesia
Operational
involvingexperienced
Management Team
through
Efficiency
Project
Four
operational
projects
in
UP,
Rajasthan,Tamil Nadu with a high traffic
growth potential
Experience
teamwith
a
successful
implementation of 1500 Kms Road lane
capability.
Proven
Execution
Ability in Road
and Power
Off Take
Agreement
with PTC
Road Vertical
Proven execution ability for road tunnel and

highway projects across the country.
Project Infra
Road Vertical
Operational
efficiency
FSA linkage
O&M
Operated by in-house O&M division managed by

highly experienced Industry experts
Captive
Mine
(Overseas):
Sponsor owns coal mines in
Indonesia which assures coal
supply over long term. Signed
Long Term Imported coal
supply agreement for3.0 MTPA
for 15 years.
High imported coal price is
taken care by better than
average
sale
tariff
of
Rs5.83/kWh
Annexures
MTHL Road Assets
Valuation Drivers
62
MPL--EPC VERTICAL--FINANCIAL SNAPSHOT

Particulars (Rs. Cr) FY12A
FY13A
FY14A
Total Income
EBITDA
%EBITDA/Total
Income
PAT
PAT/Total Income
Debt/Equity
EPS(INR)
Net Worth
1,803
189
1,045
180
865
218
10%
17%
25%
34
2%
2
4.7
642
33
3%
2.1
4.6
675
31
3%
2.3
4.3
706
Total Income
EBITDA
%EBITDA/Total
Income
PAT
PAT/Total Income
Debt/Equity
EPS(INR)
Net Worth
FY15P
FY16P
FY 17P
FY 18P
FY 19P
1,325
257
1,875
29,8
2,275
33,87
3,000
41,5
3,500
47,6
19%
77
6%
1.20
13.86
784
16%
128
7%
1.12
21.80
847
15%
163
7%
1.04
29.27
961
14%
226
8%
0.94
40.39
1,118
14%
269
8%
0.84
48.56
1,307
THANK YOU
For any queries please contact:
Capital Fortunes Private Limited
Madhucon Group: Key team
Mr. D. V. Chalam
Mr. Vaikuntanathan
Director and CEO
vaik@madhucon.com
venkatachalam@capitalfortunes.com
+91 99499 19869
Mr. Umesh Kumar Chhabra

Head Strategic Finance
Mr. G Thomas
gmsf@madhucon.com
Associate Director
thomas@capitalfortunes.com
Mr. Valsan Menon
+91 80089 33373
Chief General Manager

valsanmenon@madhucon.com
Mr. Karan Bandivadekar

AVP
Mr. Y. V. Rao
karan@capitalfotunes.com
General Manager
+91 95734 44722
gmfinance@simhapurienergy.com
Disclaimer
Neither the Promoters, the Capital Fortune & Madhucon Group, nor any of its Directors, employees or advisors
make any expressed or implied representation or warranty and no responsibility or liability is accepted by any of
them with respect to the accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts,
projections, or other information set forth in this Presentation, or the underlying assumptions on which they are
based or the accuracy of any computer model used and nothing contained herein is, or shall be relied upon as a
promise or representation regarding the historic or current position or performance of the Company, or any future
events or performance of the Company. The information set forth in this Presentation is furnished on a strictly
confidential basis and is for the sole use of the person to whom it is addressed and the recipients must undertake
such investigations as they deem fit before making any commitment or entering into a contract or Investment.
Neither this Presentation, nor the information contained herein, may be reproduced or passed to any person or
used for any purpose other than stated above. By accepting a copy of this Presentation, the recipient accepts to the
above terms and conditions. This Presentation shall remain at all times the property of Madhucon Group & its
appointed Advisors. It must be returned immediately along with any other informative material received in this
connection, without retaining any copies thereof upon request or forthwith, for any reason whatsoever, if the
transaction is not concluded or the recipient has no further interest in the transaction.
65

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A Unique Investment Business Proposition

Madhucon Group Overview

MIL Road Vertical- Madhucon Toll Highways Limited

Madhucon Group History

Madhucon Group 2020 - Business Architecture

Project Management & Execution

Design & Engineering

Project Development &

Oli & Gas, Pipe Line

Mine Mouth Project

Madhucon Group: Corporate Structure of Domestic Business

Phase I 300 MW Operational

4 Operational toll road assets

Corporate Structure of Madhucons Infrastructure Portfolio - Domestic

4 Operational toll road assets

Phase I 300 MW Operational

Corporate Structure of Madhucons Power & Mine Portfolio Global

Nama Energy Pty

Mine- Concession area Dawas Province

Madhucon Infra Ltd- Business Verticals - Domestic

Power - Simhapuri Energy Ltd.

Madhucon Agra Jaipur

Ranchi Expressways (REL)

Madhucon Group Overview

Power Vertical- Simhapuri Energy Limited Biz Proposition

MTHL: Portfolio of 9 road assets

MTHL -Roads Projects Snapshot

Operational Road Assets

Under Construction Road Assets

Ranchi Expressways (REL)

Under Development Road Assets

MTHL-OPERATIONAL ASSETS - FINANCIAL DASHBOARD

Particulars (Rs Cr)

Particulars (Rs Cr)

Policy push Regime

MTHL-UNDER CONSTRUCTION ASSETS - FINANCIAL DASHBOARD

Particulars (Rs Cr)

Particulars (Rs Cr)

MTHL-UNDER DEVELOPMENT ASSETS -FINANCIAL DASHBOARD

FY 17P FY 18P FY 19P FY 20P FY 21P

FY 18P FY 19P FY 20P FY 21P FY 22P

Madhucon Group Overview

Madhucon Infra Limited Mezz/Structured Finance Proposition

Project Snapshot Operational Power Project

Ph-I&II: 600 MW (4x150 MW)

FSA Linkage /Plan

Imported coal supply agreement for 15 years.

Plant Commercial Operations

Off take Agreement

PPA with PTC India 200 MW (Gross) for 25 years

Balance 100 MW (Gross) on Merchant Basis

Balance 150 MW(Unit-III) to be traded on Merchant Basis

600MW (Phased development)

INR 3510 Cr/ 585mn USD

EPC & Equipment

BTG: Boiler-WUXI Huaguang Boiler, Turbine-HTC, Generator-Jinan Power Eqp Factory

Direct transport from Wharfage to plant coal stock yard.

BPTA signed with Powergrid Corporation (PGCIL) for 546 MW

Power off take Snapshot

Payment security by PTC for contract term

**Power Tolling agreement (Under conversion to PPA)

Rs 1.50/kWh (To be offered under PPA)

Traded through PTC