Company Based Research Project on LANCO Infratech Ltd.

COMPANY BASED RESEARCH PROJECT REPORT
On
LANCO INFRATECH LIMITED
By:
Name: Vipul Dinodia
Section: M1
Roll No: 458
In partial fulfillment for the degree of
Post-Graduate Diploma in Management (2016-18)
NEW DELHI INSTITUTE OF MANAGEMENT
60 & 50 (B&C), Behind Batra Hospital, Tughlakabad Institutional
Area, New Delhi, 110062
Website: www.ndimdelhi.org

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CERTIFICATE
This is to certify that Mr. VIPUL DINODIA at New Delhi
Institute of Management (2016-18) has completed the
“Company Based Research Project” on LANCO
INFRATECH LIMITED, in partial fulfillment for the award
of PGDM Degree has been found satisfactory.
Signature

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DECLARATION
I, VIPUL DINODIA, student of New Delhi Institute of
Management Batch (2016-18), hereby declare that the project
work entitled “COMPANY BASED RESEARCH
PROJECT” submitted to the NEW DELHI INSTITUTE
OF MANAGEMENT, is a record of an original work done
by me and this project work has not been submitted for the award
of any Degree or Diploma to any other College/Institution.
Vipul Dinodia

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TABLE OF CONTENTS
Sr. No. Topics Page No.
1. Company Overview 6
2. Industry Overview 18
3. Company Analysis 22
4. Financial Analysis 26
5. Market Structure 32
6.
Role of Infrastructure Industry in
Indian Economy
37
7. Price Elasticity of Infrastructure 40
8. Pricing Strategy 41
9. Product Portfolio 43
10. Key Markets 46
11. Pestle Analysis 47
12. SWOT Analysis 51
13. Industry Size 52
14. Lanco’s Approach for CSR 54
15. Lanco Foundation Programmes 55
16. Communication Mediums 59
17. Geographical Spread 62
18. Bibliography 63
19. Case Study 64

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INTRODUCTION
Profile
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 organization’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 2015 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 4636 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.
Lanco is a privileged member of the World Economic Forum and has been acknowledged as an elite
member of the top 200 "Global Growth Companies".
*Assumed US $ / INR = Rs. 66
History
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 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

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15 drilling machines. In 1985, L.V. Rama Naidu's son, L. Rajagopal, a mechanical engineer, was
inducted into the company.
1986-90 (Overcoming Adversity)
In 1986, when the company went through some tough circumstances, L. Rajagopal's resolve to succeed
even got firmer. He acquired a new construction firm, S.V. Contractors, in partnership with his brother-
in-law, G. Bhaskara Rao, also an engineer. The first year of operation saw a profit of Rs. 1 crore; by
1990 the company's annual turnover was Rs. 25 crore.
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.
1995-1999 (Diversifying to Grow)
Diversification through joint venture partnerships became the key word at LANCO as the organisation
embarked on an aggressive growth path. In 1995, the Andhra Pradesh government opened the power
sector to private players. LANCO entered the power sector against a power purchase agreement with
the state government with a 368 MW gas power plant in Kondapalli, commissioned in 2000. LANCO
Kondapalli Power Ltd. (LKPL), a joint venture between LANCO and the Genting Group of Malaysia
marked a major milestone in the organisation's growth as an independent power producer.
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.
2005-10 (Poised for Industry Leadership)
LANCO Infratech Limited, a new holding corporate entity, was created in 2006 to consolidate
LANCO's diverse operations under a single brand. LANCO decided to focus on its core business -
energy and construction - and enter the infrastructure and property development sectors. As part of its
business strategy, the organisation has chalked out an ambitious growth plan - in Power and Solar
energy. LANCO also envisages aggressive growth plans for EPC with a strong order book growth.
Corporate Social Responsibility
Lanco is deeply committed to fulfilling its responsibility as a corporate citizen. It believes in
proactively involving communities and those deprived of fruits of development to be equal
stakeholders in growth and development in locations that are close to its operations. It is for this
reason that Corporate Social Responsibility (CSR) is integrated into the group's core business
strategy and the Lanconians are encouraged to internalize this concept and use it in day-to-day
work.
Lanco Infratech Limited, a member of the UN Global Compact, is well recognized for its good
corporate governance and CSR initiatives. Its CSR initiatives are led by the Lanco Foundation, the

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CSR arm of the Lanco Infratech, established in 2000 under the Indian Trust Act. The Foundation
has been spearheading welfare and development activities in the fields of Education, Health, Safe
Drinking Water, and Empowerment of the Physically Challenged, Neighborhood Community
Development and Environment across 13 locations in 11 states of India.
The Lanco Foundation is steered by a Board of Trustees, chaired by Mr. L. Rajagopal, the Founder
Chairman of the Lanco Infratech Limited. Other members of the Board include Mr. L.
Madhusudhan Rao, Mr. L. Sridhar, Mr. G. Bhaskara Rao and Mr. G. Venkatesh Babu. Mr. Suresh
Chukkapalli is the current Managing Trustee of the Foundation.

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OWNERSHIP & GOVERNANCE
Display Name No of Shares
% Share of
Holding Demat Shares
Share
Holders
Total Foreign (Promoter and Group) 0 0.00 0 0
Individuals / Hindu Undivided Family-
Indian (Promoter and Group)
27,53,17,357 10.01 27,53,17,357 10
Others 1,66,42,33,072 60.53 1,66,42,33,072 3
Indian (Promoter and Group) 1,93,95,50,429 70.55 1,93,95,50,429 13
Total of Promoter 1,93,95,50,429 70.55 1,93,95,50,429 13
Financial Institutions / Banks 11,82,92,838 4.30 11,82,92,838 6
Foreign Institution Other 1,05,08,392 0.38 1,05,08,392 7
Mutual Funds / UTI 10,473 0.00 10,473 1
Others 77,74,473 0.28 77,74,473 5
Non Promoter (Institution) 13,65,86,176 4.97 13,65,86,176 19
Individuals holding nominal share
capital in excess of Rs. 1 lakh
57,13,96,164 20.78 57,13,63,996 2,41,502
Others 10,17,93,886 3.70 10,17,93,386 3,090
Non Promoter (Non-Institution) 67,31,90,050 24.49 67,31,57,382 2,44,592
Total Non-Promoter 80,97,76,226 29.45 80,97,43,558 2,44,611
Total Promoter and Non Promoter 2,74,93,26,655 100.00 2,74,92,93,987 2,44,624
Custodians(Against Depository
Receipts)
0 0.00 0 0
Grand Total 2,74,93,26,655 100.00 2,74,92,93,987 2,44,624
Source: http://www.hdfcsec.com/Market/Share-Holding-Patterns.aspx?CoCode=21953
Collected on: July 30, 2016
Time: 2230 Hours

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BOARD OF DIRECTORS
L Madhusudhan Rao
Executive Chairman
G Bhaskara Rao
Executive Vice
Chairman
L Sridhar
Vice Chairman
G Venkatesh Babu
Managing Director
Krotthapalli Raja Gopal
Director
Rajkumar Roy
Whole Time Director
Uddesh Kumar Kohli
Independent Director
R Krishnamoorthy
R M Premkumar
Pawan Chopra
Gurbir Singh Sandhu
Vijoy Kumar
Rengaraj Viswanathan
Dr Jaskiran
Arora
Hiranmoy Biswas
Nominee Director
Rajesh Kumar
Yaduvanshi
Nominee Director

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OVERVIEW OF LANCO INFRATECH LIMITED’S BUSINESS
A. REVENUE OF LANCO INFRATECH LTD.
Standalone Revenue ------------------- in Rs. Cr. -------------------
Mar 15 Mar 14 Mar 13 Mar 12 Mar 11
INCOME 12 mths 12 mths 12 mths 12 mths 12 mths
Revenue From Operations [Gross] 1,388.83 2,229.90 4,729.41 8,591.78 5,793.56
Revenue From Operations [Net] 1,388.83 2,229.90 4,729.41 8,591.78 5,793.56
Other Operating Revenues 6.69 6.50 11.70 13.21 15.20
Total Operating Revenues 1,395.52 2,236.40 4,741.11 8,604.99 5,808.76
Other Income 135.19 102.97 81.64 64.26 106.39
Total Revenue 1,530.71 2,339.37 4,822.75 8,669.25 5,915.15
Source: http://www.moneycontrol.com/financials/lancoinfratech/profit-lossVI/LI10
Time: 2230 Hours
Consolidated Revenue ------------------- in Rs. Cr. -------------------
Mar 15 Mar 14 Mar 13 Mar 12 Mar 11
INCOME 12 mths 12 mths 12 mths 12 mths 12 mths
Revenue From Operations [Gross] 9,355.52 10,417.02 13,724.84 10,155.48 7,664.50
Revenue From Operations [Net] 9,355.52 10,417.02 13,724.84 10,155.48 7,664.50
Other Operating Revenues 16.39 13.01 13.96 13.48 37.45
Total Operating Revenues 9,371.91 10,430.03 13,738.80 10,168.96 7,701.95
Other Income 138.84 167.82 148.86 117.61 342.16
Total Revenue 9,510.75 10,597.85 13,887.66 10,286.57 8,044.12
Source: http://www.moneycontrol.com/financials/lancoinfratech/consolidated-profit-lossVI/LI10
Time: 2230 Hours

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B. GROWTH RATE OF LANCO INFRATECH LTD.
Source: http://www.moneycontrol.com/financials/lancoinfratech/financial-graphs/net-sales-income-from-operations/LI10
Time: 2230 Hours
C. NO. OF EMPLOYEES
Lanco has 3,734 committed, talented and ambitious professionals.

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COMPETITORS OF LANCO INFRATECH LIMITED
Name Last Price Market Cap.
(Rs. cr.)
Sales
Turnover
Net Profit Total Assets
Larsen 1,558.85 145,286.07 59,779.61 5,311.46 52,939.47
Adani Ports 232.40 48,128.92 4,630.75 2,841.58 27,010.68
Siemens 1,318.50 46,954.46 10,512.35 1,183.29 5,126.60
BHEL 145.90 35,710.48 25,629.99 -913.42 34,145.60
ABB India 1,264.70 26,800.05 8,140.27 299.88 3,608.55
NBCC (India) 247.20 14,832.00 5,827.10 308.80 1,324.13
Thermax 880.30 10,489.33 4,351.78 305.52 2,578.42
GMR Infra 14.30 8,631.40 799.10 -1,518.90 13,999.69
EngineersInd 227.15 7,653.51 1,495.84 258.31 2,567.89
IRB Infra 216.35 7,603.62 2,767.54 324.91 4,147.22
Essar Ports 130.70 5,597.31 34.63 0.60 2,851.67
Sadbhav Engg 285.00 4,889.77 3,186.25 133.71 2,290.34
BEML 1,013.70 4,221.50 2,983.72 52.65 2,668.92
Sadbhav Infra 98.70 3,476.46 85.80 1.04 2,065.49
Va Tech Wabag 578.70 3,154.37 1,513.43 117.43 1,020.01
Jaiprakash Asso 12.10 2,943.27 8,793.82 -3,239.90 42,521.46
ILandFS Trans 73.45 2,416.21 4,762.03 173.49 13,297.88
Texmaco Rail 105.05 2,209.56 728.01 21.59 997.23
Jaypee Infra 10.30 1,430.60 2,799.78 -242.93 12,797.76
Lanco Infratech 5.00 1,374.66 2,671.34 -445.00 8,618.93
Titagarh Wagons 102.00 1,176.92 311.48 6.31 644.63
BGR Energy 120.55 869.91 3,187.89 32.98 3,455.92
Power Mech 569.25 837.41 1,362.12 74.28 576.42
MEP Infra 44.60 725.06 695.33 26.73 1,020.77
Punj Lloyd 20.80 690.76 3,397.64 -1,649.51 7,063.89
Rel Ind Infra 436.00 658.36 89.69 15.36 273.33
Texmaco Infra 36.95 470.84 13.82 13.78 281.46
Arvind Infra 87.15 225.06 113.11 17.31 153.85
Era Infra Eng 1.55 51.40 1,211.02 -1,311.64 7,241.38
SKIL Infra 26.25 28.19 -- -307.57 5,082.90
Source: http://www.moneycontrol.com/competition/lancoinfratech/comparison/LI10
Time: 2230 Hours

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HIERARCHY OF LANCO INFRATECH LIMITED
L Madhusudhan Rao
Executive Chairman
G Venkatesh Babu
Managing Director
K Raja Gopal
CEO - Thermal
P Panduranga Rao
CEO - Thermal
Rajkumar Roy
CEO - EPC
Sreenivas Veluri
COO - Corporate
Communications
Deepak Bharara
Chief Human Resource
Officer
G Bhaskara Rao
Executive Vice Chairman

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PRODUCTS & SERVICES
A. ENGINEERING, PROCUREMENT & CONSTRUCTION
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 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.
Areas of Operation
Lanco offers Engineering, Procurement and Construction services in the following infrastructure
business segments:
• Power Projects- Coal, Gas, Hydro and Solar
LANCO
INFRATECH
POWER
SOLAR
EPC
ENGINEERING
PROCUREMENT
CONSTRUCTIONINFRASTRUCTURE
NATURAL
RESOURCES

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• Transmission- Power, Water etc.
• Transportation- Roads, Metros etc.
• Industry projects- Manufacturing plants
• Building- Large scale building complexes, Hospitals etc.
B. 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.
C. 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.
D. POWER
a) THERMAL POWER
India currently has an installed capacity of 302 GW of power and achieved about 97% of the
target capacity addition during 12th Five-Year Plan (2012-17). The current (FY 16) energy deficit
stands at 2.1 percent and the peak deficit at 3.2 percent.
With its geographically diversified portfolio of thermal power projects, Lanco is uniquely poised
to contribute significantly to filling the existing demand-supply gap and generation growth to
match demand growth associated with the target of over 7.5% GDP growth in the country and
programmes such as the smart cities, rural electrification, Make in India, etc. Lanco has taken a
giant leap forward in the private IPP space, standing among the top private power producers in the
country and will continue to hold its position in the elite league. In addition to 3460 MW of
operational capacity, Lanco is adding another 4636 MW to its power portfolio with a number of
plants at advanced stage of construction, set to achieve commercial operations within the next
three to four years.
b) HYDRO POWER
Lanco is presently a market leader in the sector. Including power and other infrastructure sectors,
the company's current Construction and EPC order book Rs. 234,116 million. With a special focus
on hydro power, Lanco plans to drive this business domain beyond Indian boundaries to become a
global player in the near future.

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The Lanco Hydro EPC Division, already a part of the Indian growth story, plans to take advantage
of this great opportunity in the South Asian hydro power development market. Also on the anvil is
the expansion of the division's portfolio in other parts of the globe. The current Hydro EPC order
book is worth Rs. 16,853 million.
c) WIND POWER
LANCO has set up a 3 MW wind power generation unit at Chitradurga in Karnataka. This
project has long-term PPA with the state of Karnataka and supplies power to the state grid.
LANCO registered its wind projects as CDM (Clean Development Mechanism) projects with
UNFCCC during the second quarter of 2007-08.
d) SOLAR POWER
Lanco Solar aims to power communities across the globe by providing clean and cost-
effective solar electricity, and is committed to achieving grid parity by 2017. Lanco Solar is
also working to bring down the cost of setting up solar energy systems for bulk power
generation.
e) NATIONAL ENERGY TRADING & SERVICES
National Energy Trading and Services Limited (NETS), formerly known as Lanco Power
Trading Limited, is a leading private sector power trader in the country. It started its trading
operations with a modest trading volume of 11.223 Million Units (MUs) in the financial
year 2005-06 and has grown from strength to strength since then. Since inception, NETS
has recorded a cumulative trading volume around 33,000 MUs and a cumulative turnover in
excess of Rs. 13,500 Crores. NETS is the first private sector trader to start power banking
transactions. NETS is a Trading cum Clearing member on both Indian Energy Exchange
(IEX) and Power Exchange of India Limited. (PXIL).

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INDUSTRY OVERVIEW
SECTOR ANALYSIS:
A. POWER
The total installed generation capacity in India (not including captive generation) as of end FY15
stood at 267.64 GW. Out of the total installed generating capacity, 61.5% was coal based, 15.4%
was hydro and 8.6% was gas based.
All India Installed Generation Capacity (As on 31-03-2015)
Therm Nuclear Hydro Res Grand
TotalCoal Gas Diesel Total
MW 1,64,636 23,062 1,200 1,88,898 5,780 41,267 31,692 2,67,637
Percentage 61.5 8.6 0.4 70.6 2.2 15.4 11.8 100.0
(Source: CEA)
The total electricity generation in India during FY15 was at 1048.40 Billion Units (BUs) versus
966.38 BUs in FY14, an increase of 8.40% YoY. The generating capacity addition during 2014-15
stood at 22,566 MW as against 17,825 MW in 2013-14, an increase of 27% YoY.
B. SOLAR
The new government is providing additional thrust to the development of renewable energy in the
country and India is currently running the largest renewable capacity expansion program in the
world. The government plans to increase the overall renewable capacity target by more than 5
times from 32,000 MW to 1,75,000 MW by 2022, led by solar energy. By 2022, the government
aims to have solar based capacity of ~1,00,000 MW. The year witnessed the highest ever increase
in solar capacity of 1,112 MW translating to a 42% increase in solar capacity during 2014-15. The
government is planning 25 solar parks each with a capacity of ~1,000 MW and 17 solar parks in 14
states have already been approved. Government owned NTPC has also come out with a tender to
set up 2,170 MW of solar projects.
Program/Scheme wise progress in 2014-15
Sector Target Achievement
Grid Interactive Power (Capacities in MW)
Solar Power 1,100 1,112
Wind Power 2,000 2,312
Small Hydro Power 250 252
Bagasse Cogeneration 300 360
Biomass Power & Gasification 100 45
(Source: Government of India, Ministry of New and Renewable Energy)

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C. NATURAL RESOURCES
The year witnessed the highest coal production growth in 23 years at 8.3%. The government plans
to double Coal India’s production to Rs. 100 Cr. Tonnes/year by 2020 by enhancing exploration
activities and improving evacuation facilities by investing in railway rakes, expediting railway
lines and mechanization. Coal generated power will continue to be the major source of energy for
the nation. India has total coal reserves of 3,01,564 million tonnes (MTs) with proved coal reserves
of 1,25,909 (MTs) and indicated reserves of 142506 MTs.
Cumulative geological resources of coal
Proved
(MT)
Indicated
(MT)
Inferred
(MT)
Total
(MT)
All India 1,25,909 1,42,506 33,149 3,01,564
(Source: Government of India, Ministry of Coal)
D. INFRASTRUCTURE
During the year 2014-15, 4340 Km of highways were constructed and 122 MTs in port capacity
was added in ports. Lack of environment clearances, land acquisition issues and budget constraints
were the major issues hampering the growth of the infrastructure sector in the country. In 2015-16,
the government plans to increase investment in infrastructure by Rs. 70,000 Cr including Rs.
14,031 Cr. for roads and Rs. 10,050 Cr for railways. Further, the government plans to set up
National Investment and Infrastructure Fund (NIIF) to enhance the flow of equity to infrastructure
projects and also introduce tax free infrastructure bonds.
COMPANY REVIEW:
A. ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC)
Lanco EPC is one of India’s premier EPC companies, with rich experience in executing large
thermal and hydro power projects, civil construction projects and infrastructure projects across the
country. With a current EPC order book of Rs. 28,063 Crores, we are confident of executing most
of the order book over the next three years. This will significantly help in increasing our standalone
EPC and construction revenues.
B. POWER
Credited as one of the nation's leading power producer, we have always elevated our goals and set
benchmarks in the power generation sector. We currently have an installed capacity of 3460 MW
and a capacity under construction of 4636 MW. Lanco Kondapalli has recently emerged as a
successful bidder in the gas pooling bids called by the Government of India.
C. SOLAR
We are focused on commercializing technologies for green and efficient energy generation systems
such as solar thermal and solar photovoltaic (PV). Our presence in the solar sector especially in the
EPC Domain has good growth potential, keeping in view the Government's huge impetus for Solar
Energy in the country. We have recently bagged a 50MW solar PV EPC contract from NTPC for
value of more than Rs. 300 Crores and plan to be active participants in the upcoming Solar EPC
bids.
D. NATURAL RESOURCES

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The Indian Resource Industry has been witnessing a remarkable growth in the recent past. At
Lanco, we have gained significant momentum by building our natural resources portfolio of
operating and under-development assets in India and across the world. With around 1.5 billion
tonnes of coal resources in our business portfolio, we are reckoned as one of the exclusive
members among the mine developers & operators in India. The recent order form Steel Authority
of India, for the Tasra open cast project and its associated captive power project has reiterated our
strengths in Natural Resources.
E. INFRASTRUCTURE
Our Infrastructure development business is focused on executing large civil and urban projects
such as roads, highways, ports, airports, railway lines, etc. The successful execution and
completion of impressive civil & urban projects has earned us our prominent position in the
Infrastructure development sector. The projects currently under highway portfolio include two
major National Highway (NH) projects in the State of Karnataka on BOT basis. Our current
portfolio consists of highway projects of about 163km length, for which the concession agreements
have been signed with the National Highways Authority of India
MARKET SHARE for the year ended on 31-03-2015:
Competitors Net Sales (In Cr.)
Market Share
(In %)
Profit after Tax
(In Cr.)
Net Profit
Ratio (In
%)
Adani Power Ltd. 19,544.38 9.58 -815.63 -3.69
Gujarat Industries Power
Corp. Ltd.
1,257.88 0.62 126.35 0.57
Jai Prakash Power Ltd. 4,061.92 1.99 137.21 0.62
JSW Energy Ltd. 6,331.95 3.10 1,377.08 6.23
Lanco Infratech Ltd. 9,510.75 4.66 -2,037.00 -9.22
NHPC Ltd. 9,157.27 4.49 2,491.36 11.28
NLC India Ltd. 6,796.97 3.33 1,579.68 7.15
NTPC 82,700.95 40.52 9,986.34 45.21
Power Grid Corp. of India
Ltd.
18,233.04 8.93 5,046.25 22.84
Reliance Infrastructure Ltd. 18,851.60 9.23 1,800.18 8.15
Reliance Power Ltd. 7,202.00 3.53 1,028.32 4.66
Tata Power Corp. Ltd. 9,702.37 4.75 1,010.29 4.57
Torrent Power Ltd. 10,762.27 5.27 359.69 1.63
SOURCE: Annual Reports of all companies for the F.Y. 2014-15

21 | P a g e
10%
1%
2% 3%
5% 4%
3%
40%
9%
9%
4%
5%
5%
Market Share F.Y. 2014-15 (In %) AdaniPowerLtd.
GujaratIndustriesPowerCorp.Ltd.
JaiPrakashPowerLtd.
JSWEnergyLtd.
LancoInfratechLtd.
NHPCLtd.
NLCIndiaLtd.
NTPC
PowerGridCorp.ofIndiaLtd.
RelianceInfrastructureLtd.
ReliancePowerLtd.
TataPowerCorp.Ltd.
TorrentPowerLtd.
-3.69
0.57 0.62
6.23
-9.22
11.28
7.15
45.21
22.84
8.15 4.66 4.57 1.63
-20
-10
0
10
20
30
40
50
AdaniPowerLtd.
GujaratIndustriesPower
Corp.Ltd.
JaiPrakashPowerLtd.
JSWEnergyLtd.
LancoInfratechLtd.
NHPCLtd.
NLCIndiaLtd.
NTPC
PowerGridCorp.of
IndiaLtd.
RelianceInfrastructure
Ltd.
ReliancePowerLtd.
TataPowerCorp.Ltd.
TorrentPowerLtd.
Net Profit Ratio (In %)

22 | P a g e
COMPANY ANALYSIS
SHAREHOLDING PATTERN:
Category of
Shareholders
On 31-03-2013 On 31-03-2014 On 31-03-2015
Total No. of
Shares
% Total
Shares
Total No.
of Shares
% Total
Shares
Total No.
of Shares
% Total
Shares
A. Promoter & Promoter
Group
(1) INDIAN[1] 1,70,43,46,8
30
70.78
1,68,93,22,
783
70.16
1,67,57,79,
677
68.06
(2) FOREIGN[2]
- - - - - -
B. Public
(1) INSTITUTIONS[3]
14,37,30,856 5.97
13,50,10,73
2
5.61
13,57,82,78
4
5.51
(2) NON-INSTITIONS[4]
55,97,22,234 23.25
58,34,71,40
5
24.23
65,08,17,09
8
26.43
C. Shares held by
Custodian of GDRs &
ADRs
- - - - - -
SOURCE: Annual Reports (2015, 2014)
NOTE: [1] INDIAN– Individual/HUF, Central Government/State Govt. (s), Bodies Corp., Banks/Financial
Institutions, Others (Relatives of Promoters, Other Bodies Corporate, Trusts)
[2] FOREIGN– Individuals (NRIs/ Foreign Individuals), Bodies Corporate, Others
[3] INSTITUTIONS– Mutual Funds, Banks/Financial Institutions, Central Government/State Govt. (s), Venture
Capital Funds, FIIs, Foreign Venture Capital Funds, Others
[4] NON-INSTITUTIONS– Bodies Corporate, Individuals, Others (Trusts, Clearing Member, Foreign Nationals,
NRIs, Foreign Companies, Overseas Corporate Bodies, Foreign Portfolio Investor
70.78 70.16
68.06
5.97 5.61
5.51
23.25
24.23
26.43
0
10
20
30
40
50
60
70
80
01-01-13 01-01-14 01-01-15
Shareholding Pattern
Indian Promoters Institutions Non-Institutions

23 | P a g e
CORPORATE ANNOUNCMENTS:
Date Headline Description
02 Aug
2016
Disclosures under
Reg. 31(1) and
31(2) of SEBI
(SAST)
Regulations, 2011
Lanco Group Ltd has submitted the disclosure under Regulation 31(1)
and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers)
Regulations, 2011 to BSE
13 June
2016
Clarifies on News
Item
With reference to the news appeared on CNBC TV 18 "Lanco Group
Shortlist Four Player For Power Buz Sale. Est. Value Pegged At Rs.45k
Cr Including Debt. Tata Power JSW Energy In Race To Acquire Lanco
Power Assets. Piramal Ent. Also In Fray To Acquire Lanco Power
Assets". Lanco Infratech Ltd has submitted to BSE a copy of
Clarification is enclosed.
http://corporates.bseindia.com/xml-
data/corpfiling/AttachHis/9598DE22_9C84_4664_BB0D_4992823E9BF
C_090851.pdf
10 June
2016
Clarification
sought from
Lanco Infratech
Ltd
The Exchange has sought clarification from Lanco Infratech Ltd with
reference to the news flashed on CNBC TV 18 "Lanco Group Shortlist
Four Player For Power Buz Sale. Est. Value Pegged At Rs.45k Cr
Including Debt. Tata Power JSW Energy In Race To Acquire Lanco
Power Assets. Piramal Ent Also In Fray To Acquire Lanco Power
Assets"
The reply is awaited.
11 Feb
2016
Financial Results,
Limited Review
Report, Results
Press Release for
December 31,
2015
Lanco Infratech Ltd has informed BSE about:
1. Standalone Financial Results for the period ended December 31, 2015
2. Consolidated Financial Results for the period ended December 31,
2015
3. Standalone Limited Review for the period ended December 31, 2015
4. Consolidated Limited Review for the period ended December 31, 2015
5. Result Press Release for the period ended December 31, 2015
23 Nov
2015
Limited Review
Report for Sept
30, 2015
Lanco Infratech Ltd has submitted to BSE a Copy of the Limited Review
Report for the period ended September 30, 2015.
29 Sep
2015
Clarifies on News
item
With reference to the news reported in (Economic Times 29/09/2015) -
"Lanco Shelves Asset Sale Plan for Now", Lanco Infratech Ltd has
submitted to BSE a copy of Clarification is enclosed.
data/corpfiling/AttachHis/378FE50B_8C1B_442A_BC3F_47EA4940E2
F9_163612.pdf
Clarification
sought from
Lanco Infratech
Ltd
The Exchange has sought clarification from Lanco Infratech Ltd with
reference to the news reported in (Economic Times 29/09/2015) - "Lanco
Shelves Asset Sale Plan for Now"

24 | P a g e
The reply is awaited.
14 Aug
2015
Financial Results
with Results Press
Release & Limited
Review Report for
June 30, 2015
Lanco Infratech Ltd has informed BSE about the Financial Results,
Results Press Release & a copy of the Limited Review Report for the
period ended June 30, 2015.
data/corpfiling/AttachHis/F26BEA58_C776_4EF6_BD39_33B2F77B10
72_093446.pdf
10 Aug
2015
Lanco Infratech
Ltd reply to
clarification
sought by the
exchange
The Exchange had sought clarification from Lanco Infratech Ltd with
reference to the media report titled "BID TO REDUCE BAD LOANS -
Debt to Equity: Lanco Lenders to Take Over Teesta"
Lanco Infratech Ltd response is enclosed.
data/corpfiling/AttachHis/48129D1A_1B3B_4BB3_8F6F_7ADC126A4
427_191544.pdf
30 May
2015
Financial Results
with Results Press
Release &
Auditors Report
for March 31,
2015 (Audited)
Lanco Infratech Ltd has informed BSE that about the Financial Results,
Results Press Release & a copy of the Auditors Report for the period
ended March 31, 2015.
data/corpfiling/AttachHis/8678C11E_4D2A_4867_8CC7_AF0DAA81F
7C1_105809.pdf
11 May
2015
Disclosures under
Reg. 31(1) and
31(2) of SEBI
(SAST)
Regulations, 2011
Regulations, 2011 to BSE.
data/corpfiling/AttachHis/363CFB51_D69B_471F_9D7A_149B678948
22_101909.pdf
22 Apr
2015
Disclosures under
Reg. 31(1) and
31(2) of SEBI
(SAST)
Regulations, 2011
data/corpfiling/AttachHis/Lanco_Infratech_Ltd_220415_SAST.pdf
13 Feb
2015
Financial Results
with Results Press
Release &
Auditors Report
for Dec 31, 2014
ended December 31, 2014.
data/corpfiling/AttachHis/Lanco_Infratech_Ltd_130215_Rst.pdf
15 Nov
2014
Financial Results
with Results Press
Release & Limited
Review for Sept
30, 2014
period ended September 30, 2014.
data/corpfiling/AttachHis/Lanco_Infratech_Ltd_151114.pdf
16 Aug
2014
Financial Results
with Results Press
Release & Limited
period ended June 30, 2014.

25 | P a g e
Review for June
30, 2014
18 June
2014
Disclosures under
Reg. 31(1) and
31(2) of SEBI
(SAST)
Regulations, 2011
data/corpfiling/AttachHis/Lanco_Infratech_Ltd_180614_SAST.pdf
24 May
2014
Financial Results
with Results Press
Release &
Auditors Report
for March 31,
2014
ended March 31, 2014.
23 Apr
2014
Disclosures under
Reg. 31(1) and
31(2) of SEBI
(SAST)
Regulations, 2011
L Madhusudhan Rao has submitted the disclosure under Regulation
31(1) and 31(2) of SEBI (Substantial Acquisition of Shares &
Takeovers) Regulations, 2011 to BSE
data/corpfiling/AttachHis/Lanco_Infratech_Ltd_230414_SAST1.pdf
SOURCE: http://www.bseindia.com/corporates/ann.aspx?scrip=532778&dur=A&expandable=0
Collected On: Aug. 19, 2016
Time: 0330 Hours

26 | P a g e
FINANCIAL ANALYSIS
NET PROFIT RATIO
The Net Profit Ratio is the ratio of Profit-After-Tax to Net Sales. It reveals the remaining profit after
all costs of production, administration, and financing have been deducted from sales, and income
taxes recognized.
Net Profit Ratio = Profit after Tax (PAT) x 100
Net Sales
Financial Year
Profit after Tax (PAT)
(In Cr.)
Net Sales
(In Cr.)
Net Profit Ratio
(NPR)
2010-11 446.00 8,006.00 5.57
2011-12 -112.00 10,271.00 -1.1
2012-13 -1,073.00 13,851.00 -7.75
2013-14 -2,274.00 10,622.00 -21.41
2014-15 -2,037.00 9,468.00 -21.51
SOURCE: Annual Reports (2015, 2014, 2013, 2012, 2011)
Interpretation:
NET PROFIT RATIO is an indicator of how efficient a company is and how well it controls its
costs.
In Lanco Infratech, the decrease in net profit rate from positive to negative, determines that the
company is not able to overcome its expenses.
5.57
-1.1
-7.75
-21.41
-21.51
-25
-20
-15
-10
-5
0
5
10
2010-11 2011-12 2012-13 2013-14 2014-15
Net Profit Ratio (NPR)
Net Profit Ratio (NPR)

27 | P a g e
OPERATING NET PROFIT RATIO
Operating Net Profit Ratio is calculated by dividing the Operating Net Profit (Earnings before
interest & Tax) by Net Sales. This ratio helps in determining the ability of the management in
running the business.
Operating Net Profit Ratio = Earnings before Interest & Tax x 100
Net Sales
Financial Year
Earnings before
Interest & Tax (In Cr.)
Net Sales
(In Cr.)
Operating Net Profit
Ratio
2010-11 2,256.37 8,006.00 28.18
2011-12 2,044.42 10,271.00 19.90
2012-13 1,527.52 13,851.00 11.03
2013-14 484.91 10,622.00 4.56
2014-15 700.44 9,468.00 7.39
SOURCE: Annual Reports (2015, 2014, 2013, 2012, 2011)
Interpretation:
OPERATING NETT PROFIT RATIO is a key indicator for investors and creditors to see how
businesses are supporting their operations. If companies can make enough money from their
operations to support the business, the company is usually considered more stable. On the other
hand, if a company requires both operating and non-operating income to cover the operation
expenses, it shows that the business' operating activities are not sustainable.
In Lanco Infratech, the ratio is lower, this shows that the company is not able to make enough
money from its ongoing operations to pay for its variable costs as well as its fixed costs.
28.18
19.9
11.03
4.56
7.39
0
5
10
15
20
25
30
2010-11 2011-12 2012-13 2013-14 2014-15
Operating Net Profit Ratio
Operating Net Profit Ratio

28 | P a g e
EARNING PER SHARE
Earnings Per Share (EPS) are the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serve as an indicator of a company's profitability.
Earnings per Share = Profit after Tax (PAT) – Preference Dividend
No. of Outstanding Shares
Financial Year
Earnings Per
Share (EPS)
2010-11 1.20
2011-12 0.50
2012-13 0.06
2013-14 -4.08
2014-15 -2.83
SOURCE: BSE India
Interpretation:
Higher EARNINGS PER SHARE is always better than a lower ratio because it reflects that the
company is more profitable and the company has more profits to distribute to its shareholders.
In Lanco Infratech, the negative EPS is showing that how much money the company had lost per
share of outstanding stock.
1.2
0.5
0.06
-4.08
-2.83
-5
-4
-3
-2
-1
0
1
2
2010-11 2011-12 2012-13 2013-14 2014-15
Earning Per Share
Earning Per Share

29 | P a g e
DIVIDEND PAYOUT
The Dividend Payout ratio is the percentage of earnings paid to shareholders in dividends. The
dividend payout ratio provides an indication of how much money a company is returning to
shareholders, versus how much money it is keeping on hand to reinvest in growth, pay off debt or
add to cash reserves.
Dividend Payout = Dividend
EPS
Financial Year Dividend
2010-11 0
2011-12 0
2012-13 0
2013-14 0
2014-15 0
SOURCE: www.equitymaster.com
Interpretation:
A low dividend payout ratio means the company is keeping a large portion of its earnings for
growth in future and a high payout ratio means the company is paying a large portion of its
earnings to its common shareholders. But a consistent trend in DIVIDEND PAYOUT
RATIO is usually more important than a high or low ratio.
In Lanco Infratech, the dividend payout ratio is zero, which shows that the company is not
having that much profit which it can distribute among its shareholders.
0 0 0 0 0
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2010-11 2011-12 2012-13 2013-14 2014-15
Dividend Payout
Dividend Payout

30 | P a g e
SOURCES OF FUNDS
2010-11
(In Cr.)
2011-12
(In Cr.)
2012-13
(In Cr.)
2013-14
(In Cr.)
2014-15
(In Cr.)
Shareholders’ Funds
Share Capital 238.72 238.97 239.24 239.24 245.09
Reserves & Surplus 4,384.41 4,467.09 3,433.21 1,218.30 (692.86)
TOTAL EQUITY 4,623.13 4,706.06 3,672.45 1,457.54 (447.77)
Non-current Liabilities
Long Term Borrowings 11,407.13 24,003.71 26,004.34 30,120.19 33,145.02
Other Long Term Liabilities 3,478.68 3,772.93 3605.28 3,070.79 2,986.52
Long Term Provisions 158.53 578.61 720.86 702.61 707.46
rrent Liabilities
ort Term Borrowings 3,272.15 4188.76 5,622.51 4,756.66 4,528.64
de Payables 1,576.56 3754.67 4,514.53 4,111.55 3,904.43
her Current Liabilities 3,217.89 5571.61 4,921.76 5,130.00 6,045.02
ort Term Provisions 69.20 168.26 184.26 196.72 83.39
TAL DEBT 23,180.14 42,038.55 45,573.54 48,088.52 51,400.48
SOURCE: Annual Reports (2015, 2014, 2013, 2012, 2011), www.moneycontrol.com
DEBT EQUITY RATIO
The Debt Equity Ratio (DER) is a financial ratio indicating the relative proportion of shareholders'
equity and debt used to finance a company's assets.
Debt Equity Ration = Debt
Equity
Financial Year Debt Equity Debt Equity Ratio
2010-11 23,180.14 4,623.13 5.01
2011-12 42,038.55 4,706.06 8.93
2012-13 45,573.54 3,672.45 12.41
2013-14 48,088.52 1,457.54 32.99
2014-15 51,400.48 (447.77) (114.8)
SOURCE: Annual Reports (2015, 2014, 2013, 2012, 2011), www.moneycontrol.com

31 | P a g e
Interpretation:
Each industry has different debt to equity ratio benchmarks, as some industries tend to use more
debt financing than others. A negative DEBT-EQUITY RATIO refers to the negative return on
equity that results from the higher interest on debt than the investment return, but it may also refers
to result in a company with a negative net worth.
5.01 8.93 12.41
32.99
-114.8
-140
-120
-100
-80
-60
-40
-20
0
20
40
60
2010-11 2011-12 2012-13 2013-14 2014-15
Debt Equity Ratio
Debt Equity Ratio

32 | P a g e
MARKET STRUCTURE
India needs Rs 31 trillion (US$ 454.83 billion) to be spent on infrastructure development over
the next five years, with 70 per cent of funds needed for power, roads and urban
infrastructure segments.
The Indian power sector itself has an investment potential of US$ 250 billion in the next 4-5
years, providing immense opportunities in power generation, distribution, transmission and
equipment, according to Mr. Piyush Goyal, Union minister of coal, power and renewable
energy.
The Indian construction equipment industry is reviving after a gap of four years and is
expected to grow to US$ 5 billion by FY2019-20 from current size of US$ 2.8 billion,
according to a report@ released by the Indian Construction Equipment Manufacturers’
Association (ICEMA).
Foreign Direct Investment (FDI) received in construction development sector from April
2000 to December 2015 stood at US$ 24.18 billion, according to the Department of Industrial
Policy and Promotion (DIPP).
2.1 GOVERNMENT POLICIES
The Government of India is taking every possible initiative to boost the infrastructure sector.
Some of the steps taken in the recent past are being discussed hereafter.
A. The Reserve Bank of India (RBI) has allowed companies in the infrastructure sector to
raise External Commercial Borrowings (ECB) with a minimum maturity of five years and
with an individual limit of US$ 750 million for borrowing under the automatic route.
B. The Securities and Exchange Board of India (SEBI) has allowed Foreign Portfolio
Investors (FPI) to invest in units of real estate investment trusts (REITs), infrastructure
investment trusts (InvITs), and category III alternative investment funds (AIFs), and also
permitted them to acquire corporate bonds under default.
C. The Government of Japan, through Japan International Cooperation Agency (JICA), has
committed to provide a soft loan of JPY 19.064 billion (US$ 161.2 million) to
Government of India at an interest rate of 0.3 per cent per annum for the project of
pollution abatement of Mula-Mutha river in Pune, Maharashtra under the National River
Conservation Plan.
D. Government of India plans to use the new hybrid-annuity model for allocating contracts
under the Public Private Partnership (PPP) projects in highways, Namami Gange and
Railway Projects, which will help overcome the challenges faced by private developers in
the Build-Operate-Transfer (BOT) Toll and BOT-Annuity models.
E. Budgetary allocation for Roads and Railways in the Union Budget 2016 has been
increased to Rs 218,000 crore (US$ 31.98 billion) with an aim to boost the private
investment cycle.
F. The Ministry of Road Transport and Highways plans to build five more greenfield
expressways across the country, which are expected to reduce travel time and propel
economic growth.
G. The Union Ministry of Urban Development has approved an investment of Rs 495 crore
(US$ 72 million) under the Atal Mission for Rejuvenation and Urban Transformation
(AMRUT) for FY 2015-16 which will be used for water supply, sewerage networks and

33 | P a g e
septage management, storm water drains, urban transport and provision of green spaces in
13 cities spread over six states.
H. Prime Minister of India Mr. Narendra Modi indicated that the government has rolled out
stuck projects worth Rs 4 lakh crore (US$ 58.69 billion) in the past six months (ending
November 2015), while stating that infrastructure development is the government's top
priority in order to improve economic growth.
I. The Union Cabinet has approved several reforms such as allowing National Highways
Authority of India (NHAI) to extend the concession period for current incomplete
projects in build-operate-transfer (BOT) mode.
J. Government of India plans to launch the National Infrastructure Investment Fund (NIFF)
with an initial corpus of at least Rs 40,000 crore (US$ 5.87 billion).
K. The Ministry of Urban Development has approved an investment of Rs 19,170 crore
(US$ 2.81 billion) for improving basic urban infrastructure in 474 cities in 18 states and
Union Territories (UTs) under Atal Mission for Urban Rejuvenation and Transformation
(AMRUT) for 2015-16.
L. Department of Industrial Policy and Promotion (DIPP) has set up an online monitoring
system for on-going projects under the Industrial Infrastructure Upgradation Scheme
(IIUS).
M. The Ministry of Urban Development has decided to allow the use of construction &
demolition waste up to 20 per cent in construction of load bearing items and up to 100 per
cent for non-load bearing purposes. This provision is expected to significantly help in
reuse of such waste, in line with ongoing efforts under Swachh Bharat Mission (SBM).
N. The central government has approved amendments to 'The National Waterways Bill,
2015' which will provide for enacting a central legislation to declare 106 additional inland
waterways, as the national waterways.
O. The Government of India plans to award 100 highway projects under the public-private
partnership (PPP) mode in 2016, with expectations that recent amendments in regulations
would revive investor sentiments in PPP projects in the infrastructure sector.
P. The Reserve Bank of India (RBI) has notified 100 per cent foreign direct investment
(FDI) under automatic route in the construction development sector. The new limit came
into effect in December 2014.
Q. The Government of India has relaxed rules for FDI in the construction sector by reducing
minimum built-up area as well as capital requirement. It has also liberalized the exit
norms. In fact, the Cabinet has also approved the proposal to amend the FDI policy.
R. In the Budget 2015-16, the capital outlays for roads, and railways have been increased by
Rs 140.3 billion (US$ 2.05 billion) and Rs 100.5 billion (US$ 1.47 billion) respectively.
S. Mr. Nitin Gadkari, Union Minister of Road Transport & Highways and Shipping, has
launched various online platforms such as ePACE (project appraisals portal),
INFRACON (portal for infrastructure consultancy firms and personnel) and INAM PRO
(web-based application for infrastructure and material providers), while also inviting
stakeholders in the infrastructure sector to consciously use global best practices in road
construction sector.
T. The Securities and Exchange Board of India (SEBI) has announced norms for public
issue of units of infrastructure investment trusts (InvITs) in order to facilitate
infrastructure developers raise capital from public investors.

34 | P a g e
FDI INVESTMENTS IN INDIAN INFRASTRUCTURE
India is witnessing significant interest from international investors in the infrastructure space.
Many Spanish companies are keen on collaborating with India on infrastructure, high speed
trains, renewable energy and developing smart cities.
• Silver Spring Capital Management, a Hong Kong-based equity hedge fund, plans to invest
over Rs 2,000 crore (US$ 306 million) in Hyderabad-based infrastructure developer
Transstroy India Ltd, for construction of highways in the country.
• Altico Capital, the non-banking finance company (NBFC) of Clearwater Capital Partners
LLC, plans to invest around US$150 million in the commercial office properties and
infrastructure sector over the next 12-18 months.
• Sovereign wealth funds and global pension funds plan to invest up to US$ 50 billion in
Indian infrastructure sector over the next five years##.
• Airports Authority of India (AAI) plans to develop city-side infrastructure at 13 regional
airports across India, with help from private players for building of hotels, car parks and
other facilities, and thereby boost its non-aeronautical revenues.
• The Asian Development Bank (ADB) and Government of India signed a loan agreement of
US$ 80 million, which is the third tranche of a US$ 200 million financing facility under the
North Eastern Region Capital Cities Development Investment Programme, and will be
invested for improving water supply, solid waste management and sanitation in the cities of
Agartala and Aizwal, the capital cities of Tripura and Mizoram respectively.
• Maharashtra State Government plans to launch infrastructure projects worth Rs 73,367 crore
(US$ 10.78 billion) in Mumbai and neighbouring areas in 2016, which include coastal road,
Trans harbour link, metro rail, airport and road projects.
• The Government of India has earmarked Rs 50,000 crore (US$ 7.34 billion) to develop 100
smart cities across the country. The Government released its list of 98 cities for the smart
cities project in August 2015.
• BNP Paribas Lease Group, subsidiary of BNP Paribas Group, has acquired 5 per cent stake
in Srei Infrastructure Finance, by selling its entire 50 per cent stake in Srei Equipment
Finance Limited (SEFL) to Srei Infrastructure Finance, thus allowing them to play a larger
role in the infrastructure finance business.
• Private equity giant Carlyle Group is planning to invest Rs 500 crore (US$ 73.36 million) in
Feedback Infra, which could make the US firm a major shareholder in the Gurgaon-based
infrastructure services company.
• PTC India Financial Services (PFS) and India Infrastructure Finance Company Limited
(IIFCL) have signed a Memorandum of Understanding (MoU) to jointly provide funding for
infrastructure projects in India, particularly in the energy sector.
• France has announced a commitment of € 2 billion (US$ 2.17 billion) to convert
Chandigarh, Nagpur and Puducherry into smart cities.
• The Construction Industry Development Board (CIDB) of Malaysia has proposed to invest
US$ 30 billion in urban development and housing projects in India, such as a mini-smart city
adjacent to New Delhi Railway Station, a green city project at Garhmukhteshwar in Uttar
Pradesh and the Ganga cleaning projects.
• The Government of India has unveiled plans to invest US$ 137 billion in its rail network
over the next five years, heralding Prime Minister Narendra Modi's aggressive approach to
building infrastructure needed to unlock faster economic growth.

35 | P a g e
• The Government of India has announced highway projects worth US$ 93 billion, which
include government flagship National Highways Building Project (NHDP) with total
investment of US$ 45 billion over next three years.
Future Requirements:
The growth of others sectors of the economy is now dependent of the growth and investments
in infrastructure and which in turn demands the requirement of FDI in the sector. Opening up
of retail sector, matured financial services and software sectors, growing educational, reality,
pharmaceutical and hospitality sectors provided wide opportunity for growth of the economy.
This will become a reality only if all the others sectors can be supported with the basic
infrastructure. The following steps from the government can make the infrastructure more
lucrative for foreign participation:
1. Developing a strong legal and regulatory framework: Ideally, this is the requirement in the
foundation stage itself (before inviting for FDI participation).Significant capital requirements,
a long investment time line and the fixed nature of assets make infrastructural investments
unique. Beyond the existence of commercial opportunities in the host country markets,
foreign infrastructural investments require a transparent and stable policy framework
underpinned by the rule of law. Before committing funds to projects, companies consider
whether laws and contracts are likely to be properly enforced; rights and responsibilities are
well defined. Moving from a state owned system to a TNC requires significant adjustments to
the policy framework.
2. Capacity and skills to regulate FDI: Inviting TNC’s to deliver infrastructural services often
puts more pressure on public authorities than a State- sponsored plan. Understanding the
legal, economic, financial and political aspects of the infrastructural sector is necessary to
perform demanding planning, negotiation and regulatory functions. The existing Government
agencies and Departments must be equipped to meet the challenge and undertake the
responsibility.
3. Develop a strategic infrastructure plan identifying key needs: The identification of priority
infrastructural projects should be informed by the Government’s socioeconomic development
objective. The commercial viability of the project is always an important consideration, but
cost sharing can also be used to ensure the construction of less profitable projects based on
requirement and public interest. Long term planning by the Government allows it to better
co-ordinate infrastructural developments and optimize the FDI impact.
4. Open the bidding stage to as many investors as possible: It is better to have a competitive
bidding or auctioning process. A highly competitive bidding stage maximizes the benefits
accruing to the infrastructural users in specific and the economy as a whole also. It’s
important that the process is transparent and favoritism to be avoided.
5. Create a pipeline for pre-assumed, commercially attractive projects that can be actively
promoted: After an infrastructural project is identified as eligible for private involvement,
there are a number or preparatory steps that the government can take to reduce the risk which
the foreign investor is facing particularly in the case of green field investments. Completing
necessary feasibility study on environmental and social impacts will reduce the risk of the
foreign investor to a greater extend and improve the confidence in investing.
6. Single Window System: A single window system can reduce the delay and make the life
easy for any entrepreneur including a foreign entrepreneur. The current start up time required

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for all the major projects is crossing more than a year. This can be reduced by single window
system without diluting the process and rules.
7. Mitigating political and regulatory risk: Change in ministry can make the project riskier for
the investor. Entering in to bilateral agreements with foreign countries having the clause
protecting the terms of the contact can be a morale booster. Yet, the Government should
remain cautious to avoid unlimited liability and obligations.
8. Monitoring and Follow up in the project implementation stage: Private investments in
infrastructure are typically characterized by complex terms and conditions between the
investor and government. Positive outcomes depends on government’s efforts to monitor the
project’s progress and enforcing the agreement with the infrastructural investor which
demands the creation of an independent body with powers to negotiate and enforce the terms.
High level reviews are another way of ensuring the project completion as per the terms
specified in the contract.

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ROLE OF INFRASTRUCTURE INDUSTRY IN
INDIAN ECONOMY
Infrastructure represents those types of capital goods that serve the activities of many
industries included paved roads, railroads, seaports, communication networks, financial
systems, and energy supplies that all support production and marketing for industries within
the country. Besides that, the quality of an Infrastructure directly affects a country's economic
growth potential and the ability of an enterprise to engage effectively. They are basic
essential services that should be put in place to enable development to occur. Socio-
economic development can be facilitated and accelerated by the presence of social and
economic infrastructures. If these facilities and services are not in place, development will be
very difficult and in fact can be likened to a very scarce commodity that can only be secured
at a very high price and cost.
1) Types of Infrastructure
• Economic Infrastructures: Economic infrastructure is the combination of basic
facilities which is helpful in economic development of an economy and businesses. It
includes facilities of telecommunication, electricity, transportation, energy etc.
• Social Infrastructures: Social infrastructure is the combination of basic facilities
which are necessary for human development. It includes health (hospitals), education
(school, colleges etc.) and housing. Both of these infrastructures are complementary
to each other and are necessary for the overall development of an economy.
2) Role of Economic Infrastructure
Economic infrastructure has played a very significantly positive role in the growth
performance of countries in recent times. Where development of economic infrastructures has
followed a rational, well - coordinated and harmonized path, growth and development has
received a big boost. Examples are Korea and Japan. Where the growth of infrastructures has
not followed such a rational and coordinated path, growth and development has been stunted.
Examples can be found in most other LDCs. In most countries economic infrastructure
includes public utilities such as power, telecommunications, piped water supply, sanitation
and sewage, solid waste collection and disposal and piped gas as well as public works which
include roads, major dam and canal works for irrigation and drainage, and other transport
projects like urban and interurban railways, urban transport, seaports and waterways and
airports. Normally infrastructure does three things:
a) It provides services that are part of the consumption bundle of residents;
b) large - scale expenditures for public works increase aggregate demand and provide
short- run stimulus to the economy; and
c) It serves as an input into private sector production, thus augmenting output and
productivity.
The provision of economic infrastructure can expand the productive capacity of the
Improvements in maintenance- the so- called maintenance culture- would enhance the quality
of existing infrastructure and give rise to a ‘vent for surplus. The development of projects
such as railways, road, transport, telecommunications, gas, electricity, irrigation works, et
cetera “entails large investments which are beyond the capacity of private enterprises “in

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LDCs. Better management of economic infrastructure would have positive output, income,
and employment effects on the economy. Moreover, it will impact directly on the poor, thus
reducing poverty. Greater supply elasticity of goods and lower production costs of DPAs
(Development projects) should have an anti - inflationary effect. With domestic price levels
falling, such an economy’s export competitiveness in international trade will ensure an
improved balance of trade, balance of payments, and less foreign debt burden.
3) Role of Social Infrastructure
Education and health are social goods. It has an enormous importance therefore it is
important for the state to provide the finance and other complementary resources for the take-
off of such social infrastructural projects. The state necessarily has to operate or manage a
social infrastructure, as well as it is necessary for the state to provide guidelines for and
monitor its operation. Education is a very important source of economic growth as the
Denison study shows. Even though education may be a social investment, it is also an
economic investment since it enhances the stock of human capital. Denison’s conclusions on
the economic contribution of education may be summarized in his own words:
From 1929 to 1957 the amount of education the average worker had received was increasing
almost 2 percent a year, and this was raising the average quality of labor by 0.97 percent a
year, and contributing 0.67 percentage point to the growth rate of real national income. Thus,
it was the source of 23 percent of the growth of total real national income and 42 percent of
the growth of real national income per person employed….
Despite the controversies surrounding the contribution of human resource development to
economic growth, it is clear that “programs of human resource development must be
designed to provide the knowledge, the skills, and the incentives required by a productive
economy”……
Human resource development may be a more realistic and reliable indicator of modernization
or development than any other single measure. It is one of the necessary conditions for all
kinds of growth –social, political, cultural, or economic.”
Thus, economic development is not possible without education and investment in human
capital which is highly productive. The deregulation of the educational sector to allow for
private sector participation is a trend in the LDCs. It has long been so in the developed
economies of Europe and North America. It has the potential of increasing the number of
educational institutions thus enhancing the capacity of the system to meet the adequacy and
accessibility requirements of the society. The role of education as a social infrastructure and
as a stimulant of growth and development can be enhanced only if it is qualitatively provided.
Health, like education, is a very important argument in the socioeconomic production
function. A popular saying is that a sound mind usually resides in a healthy body. Health is
one of the major determinants of labor productivity and efficiency. Again, since health as a
social good provides externalities, large- scale health facilities can only be provided with
public resources. Public health deals with the environment in which economic activities take
place.
If that environment is possible, it would allow accelerated growth and development. Public
health measures include the improvement of environmental sanitation both in rural and urban
areas, removal of stagnant and polluted water, slum clearance, better housing, clean water
supply, better sewage facilities, control of communicable diseases, provision of medical and

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health services especially in maternal and child welfare, health education, and above all, for
the training of health and medical personnel.

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PRICE ELASTICITY OF INFRASTUCTURE
Price Elasticity of any product can be defined as the percentage change in the quantity
demanded of a product to the percentage change in the price of the same product.
Mathematically, it can be shown as:
Ep= %change in quantity demanded / % change in price
As power industry is monopolistic and so having a large number of sellers and buyers.
Therefore there is ample number of substitutes available. Thus, the price elasticity is
relatively elastic i.e Ep>1.This means that the quantity demanded of any product is greater
than its price change and thus a flat curve is made.

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PRICING STRATEGY
The pricing decisions for a product are affected by internal and external factors:
Internal Factors:
1. Cost:
While fixing the prices of a product, the firm should consider the cost involved in producing
the product. This cost includes both the variable and fixed costs. Thus, while fixing the
prices, the firm must be able to recover both the variable and fixed costs.
2. The predetermined objectives:
While fixing the prices of the product, the marketer should consider the objectives of the
firm. For instance, if the objective of a firm is to increase return on investment, then it may
charge a higher price, and if the objective is to capture a large market share, then it may
charge a lower price.
3. Image of the firm:
The price of the product may also be determined on the basis of the image of the firm in the
market. For instance, HUL and Procter & Gamble can demand a higher price for their brands,
as they enjoy goodwill in the market.
4. Product life cycle:
The stage at which the product is in its product life cycle also affects its price. For instance,
during the introductory stage the firm may charge lower price to attract the customers, and
during the growth stage, a firm may increase the price.
5. Credit period offered:
The pricing of the product is also affected by the credit period offered by the company.
Longer the credit period, higher may be the price, and shorter the credit period, lower may be
the price of the product.
6. Promotional activity:
The promotional activity undertaken by the firm also determines the price. If the firm incurs
heavy advertising and sales promotion costs, then the pricing of the product shall be kept high
in order to recover the cost.
External Factors:
1. Competition:
While fixing the price of the product, the firm needs to study the degree of competition in the
market. If there is high competition, the prices may be kept low to effectively face the
competition, and if competition is low, the prices may be kept high.

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2. Consumers:
The marketer should consider various consumer factors while fixing the prices. The
consumer factors that must be considered includes the price sensitivity of the buyer,
purchasing power, and so on.
3. Government control:
Government rules and regulation must be considered while fixing the prices. In certain
products, government may announce administered prices, and therefore the marketer has to
consider such regulation while fixing the prices.
4. Economic conditions:
The marketer may also have to consider the economic condition prevailing in the market
while fixing the prices. At the time of recession, the consumer may have less money to spend,
so the marketer may reduce the prices in order to influence the buying decision of the
consumers.
5. Channel intermediaries:
The marketer must consider a number of channel intermediaries and their expectations. The
longer the chain of intermediaries, the higher would be the prices of the goods.

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PRODUCT PORTFOLIO
Lanco Infratech Limited (Lanco) possesses more than 25 years of experience in the fields of
Engineering, Procurement and Construction (EPC), Power, Solar, Natural Resources and
Infrastructure.
EPC PROJECTS
Segment Type Name of Project Location
Power &
Transmission
Projects
Thermal
Kondapalli Project
Phase 1- 368 MW
Phase 2- 366 MW
Phase 3- 742 MW
Andhra Pradesh
Tanjore Project 120 MW Tamil Nadu
Amarkantak Project
Phase 1- 2X300
MW
Phase 2- 2X660
MW
Chhattisgarh
Vidarbha Project 2X660 MW Maharashtra
Babandh Project 2X660 MW Orissa
Udupi Project 2X600 MW Karnataka
Anpara Project 2X600 MW Uttar Pradesh
Clarion Power Corporation
Ltd.
12 MW Andhra Pradesh
Rithwik Energy Systems Ltd. 6 MW Andhra Pradesh
Thermal
(Others)
275m Double Flue Can
Chimney for ANPARA-C
– –
Kondapalli - Nuna
Transmission Line
– –
275m Twin flue/ Brick-lined
chimnies for BHEL
–
Bellary, UKAI &
North Chennai
Cooling Water Circulation
System for NTPC
– Ramagundam
Solar
(National)
Solar PV Plant 1 MW Punjab
Rooftop Solar PV Plant 100 KW Punjab
Rooftop Solar PV Plant 50 KW Orissa
Crystalline technology-based
PV Solar Project
75 MW Maharashtra
Solar PV Plant 5 MW Bhadrara, Gujarat
Solar PV Plant 15 MW Chadiyana, Gujarat
Solar PV Park
1X15 MW
7X5 MW
Charanka, Gujarat
Solar PV Plant 10 MW Porbandar, Gujarat
Solar PV Plant 1 MW Gandhinagar, Gujarat
Solar PV Farm 35 MW Gujarat
Solar PV Plant 4X5 MW Jaisalmer, Rajasthan
Solar PV 1 MW Rajasthan
Solar Thermal 100 MW Rajasthan
Solar
(International)
Rocky Face Solar PV Farm 200 kWp Georgia, USA
Solar PV Plant 217 kWp Themines, France
Rooftop Solar Plant 217 kWp Themines, France
Solar PV Plant 1 MWp Sicily, Italy

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Tracey City Solar PV Farm 200 kWp Tennessee, USA
Solar PV Plant 194 kWp Montdournerc, France
Rooftop Solar Plant 197 kWp Montdournerc, France
Solar PV Plant 110KW Massachusetts, USA
Solar PV Plant 5 MW
St. Thomas US Virgin
Islands
Solar PV Plant 5 MW
Grand Cayman,
Cayman Islands
Hydro
Teesta VI Project 4X125 MW Sikkim
IKU II Project 2X2.5 MW Himachal Pradesh
Baner III Project 2X2.5 MW Himachal Pradesh
Drinidhar Project 2X2.5 MW Himachal Pradesh
Upper Khauli Project 2X2.5 MW Himachal Pradesh
Phata-Byung Project
(Mandakini River Project)
76 MW Uttarakhand
Rambara Projecct (Mandakini
River Project)
76 MW Uttarakhand
Wind – 3 MW Karnataka
Infrastructure
Dalkhola- Islampore Sub
Section II of NH 31
– West Bengal
Constructed of 81 KM of NH-
4 from KR Puram - Hoskote
– Karnataka
Constructed of 82 KM of NH-
48 from Bangalore - Devihalli
– Karnataka
Construction of WTP, RWR
and 100Km Pipeline for
IL&FS
– Orissa
Veeranam Project, 1875MM
DIA, 114 KM Pipeline
– Chennai, Tamil Nadu
Terminal Building of
Varanasi Airport
– Uttar Pradesh
Koparkhairane Railway
Station for CIDCO
– Mumbai, Maharashtra
Shastri Park Railway Station
for DMRC
– New Delhi
New Airport Terminal
Building for Biju Patnaik
Airport (BBI)
– Bhubaneswar, Orissa
Ashwini Hospital – Mumbai, Maharashtra
Lanco Hills' Residential, IT
Tower, Podium & Other
Infrastructure
– –

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Natural
Resources
Coal Mining
Griffin Coal Mine
(Operational)
Australia
Tasra Open Cast Project
(Under Development)
Dhanbad, Jharkhand
SOURCE: Annual Report of Lanco for the F.Y. 2014-15, www.lancogroup.com

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KEY MARKET
Government and Business Organizations are the target markets for Lanco Infratech Limited.
Government Market are made up of government agencies that buy goods and services to produce
public services or transfer the goods and services to others who need them while Business Market
includes selling their goods to nonprofit organizations or government agencies and need to priced
carefully because these organizations have limited purchasing power. Lower prices affect the
features and quality that the seller can build into the offering. Most of the Government purchasing,
call for bids, with the lowest bid being favored, in the absence of extenuating.
MAJOR CLIENTS
1. Maharashtra State Power Generation Co. Ltd. (MAHAGENCO)
2. National Highway Authority of India (NHAI)
3. National Thermal Power Corporation (NTPC)
4. Bharat Heavy Electricals Limited (BHEL)
5. Oil and Natural Gas Corporation Limited (ONGC)
6. Infrastructure Leasing & Financial Services (IL&FS)
7. Nuclear Power Corporation of India Ltd.
8. Tehri Hydro Development Corp. Ltd.
9. Ircon Internation Ltd.
10. Hindustan Aeronautics Ltd. (HAL)
11. Defence Research and Development Organisation (DRDO)
12. Indian Space Research Organisation (ISRO)
13. Suraksha Sahit Seva
14. Delhi Metro Rail Corporation Ltd. (DMRC)
15. Power Grid Corporation of India Ltd. (POWERGRID)
16. Transmission Corporation of Andhra Pradesh (APTRANSO)
17. Maharashtra State Electricity Distribution Company Ltd. (MAHAVITARAN)
18. Government of Andhra Pradesh
19. Tirumala Tirupati Devasthanams (Tirupati Balaji Temple)
20. Chennai Metro Rail Ltd.

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PESTEL ANALYSIS
POLITICAL /GOVERNMENT ANALYSIS:
In India, the subject of electricity is covered under the Concurrent List in the Constitution of
India, implying that both the central government and state governments have the power to make
legislation for the sector. As a result, all major issues affecting the power sector require concurrent
action by the central government and state governments. The allocation on power development
during the first four Five Year Plans (FYP) was very low i.e. 10-15 percent of the total outlay. The
low allocation of budget in power sector hampered the rural & urban electrification, and power
generation capacity. With rapid industrialization and extensive demand for power both in rural
and urban areas, the country has been reeling under severe power shortage and the country’s
production effort has been severely curtailed by load shedding almost in all parts of country.
As it is a subject of concurrent list so each state has developed its own electricity policy and
pricing based on its own interest rather than thinking of country as a whole. The different pricing
regimes and distribution policies of state governments further aggravated the power situation. The
low collection of revenue makes condition burst & slow down the growth Of SEBs and
subsequently effect on the power system. Another reason for the power system’s non-viability is
the skewed retail tariffs, whereby agricultural consumers receive virtually free power (with flat-
rate pricing averaging under 0.50 Rs/kWh) and even domestic consumers receive modest
subsidies. Together, these are about half the consumption. The remaining paying customers
(primarily commercial and industrial) cross-subsidize these sectors through very high tariffs.
Subsidies provided by the government were a large amount. As the state government paid these
subsidies irregularly, So SEBs did not plan any long term project implementation i.e. capacity
expansion, network extension, regular maintenance and system improvement. This also affects the
T&D losses of SEBs. Severe financial losses have led to the almost total inability of these utilities
to self-finance improvements. Utilities also borrowed heavily and aggravated their losses. In the
past, these losses used to be made good by government treasuries, but till 90’s, most treasuries
were ‘‘empty’’. The lack of internally generated funds and the inability of treasuries to provide
funds have resulted in severe shortages of capital for expanding generating capacity and
infrastructure development.
But after 1990, The Government has realized the importance of power in the economic
development of the country. The Union Ministry of Power has developed appropriate strategies
and a blueprint to address the problems in a time-bound manner. These strategies and the
blueprints were flexible and to be adjusted to accommodate positive inputs and developments.
Beginning with the opening up of power generation for private investment and later through
regulatory reforms, the process has entered a new phase with the recent enactment of the
Electricity Act 2003.
The recently established Central Electricity Regulatory Commission is empowered to regulate the
central power utilities in accordance with the Electricity Regulatory Commission Act, 1998. The
central power utilities include the National Thermal Power Corporation (NTPC), the National
Hydroelectric Power Corporation (NHPC), and the Nuclear Power Corporation (NPC), which are
engaged in generation, and the Power grid Corporation, which is engaged in interstate power

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transmission. The Government also owns financing institutions devoted solely to power sector
lending such as the Power Finance Corporation Limited (PFCL) and the Rural Electrification
Corporation. Recently, the Government established the Power Trading Corporation (PTC), to be
responsible for power trading among states and between states and central power utilities.
ECONOMIC ANALYSIS:
The basic requirement and detrimental factor for growth and success of all companies—industrial
or service—is Infrastructure. The infrastructural sectors, especially power have direct bearing on
the improvements of all production companies. Industrial output growth in India has closely
tracked the movements in the composite index of infrastructure industries during 1980s and
1990s. This observed relationship between infrastructure growth and industrial performance has
important implications for sustaining higher output growth. The decline of infrastructural growth
between 1980s and 1990s was mainly from the decline in growth of electricity, coal and
petroleum—essentially the energy sub-sectors. Thus, identification and bridging of the sectorial
infrastructure gaps assumes critical importance for sustained high economic growth.
SOCIOLOGICAL ANALYSIS:
The new hydropower plant adversely affected the human being and the other animals. The core
problem in displacement is people’s loss of livelihood and their potential impoverishment. The
forcibly displacement of communities, create hamper the production system. Many jobs, much
valuable land, trees and other income generating assets are lost. Link between producers and their
customers are severed and local labor market disrupt. The most common social risks are:
1. Landlessness
2. Joblessness
3. Homelessness
4. Food insecurity
5. Poor health level
6. Loss of assets
Following Dams displaced the huge population:
Dam Name State No. Of People Displaced
Almati Dam Karnataka 1,40,000
Tehari Dam Uttarakhand 1,05,000
Narmada Dam Gujarat 2,50,000
ENVIRONMENTAL ANALYSIS:
Thermal power plants use the low variety of coal for power generation which causes many
environmental effects.
1. Air Environment:
Emission of SO2, NO2, and Black carbon from power plant is harmful for the people living in
surrounding area. The above pollutant of the thermal power plants causes dense / intense fog, haze
and smog that cause the respiratory disorder. An increase in the concentration of Black carbon

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produces changes in the monsoon (rainfall) patterns and abnormal heating of the atmosphere as it
is strongly absorbing in nature. Coal is the most carbon intensive of all fossil fuels, emits massive
amounts of carbon dioxide or CO2 leading to global warming and climate change. Although two
other gases, carbon dioxide and ozone are not considered in traditional emission pollutants
(EMPs), but the high amount of carbon dioxide emission (0.9-0.95 kg/kwh) from thermal power
plants contribute to global warming leading to climate change is significant enough. The levels of
harmful greenhouse gases like methane emitted due to decomposition of vegetation submerged
under water of hydro power plant.
2. Water Environment:
As we know that water slurry is used to take the ash from the power plant to the ash pond for
disposal. The water may contain harmful heavy metals like boron, which have a tendency to leach
out over a period of time. Due to this the ground water gets polluted and becomes unsuitable for
domestic use. The second factor affecting the water environment is the release of ash pond decant
into the local water bodies. This is harmful to the fisheries and other aquatic biota in the water
body. Huge amounts of ash rich in toxic trace elements and radioactive elements or radio nuclides,
are disposed of in large ponds and on open grounds surrounding the power plant, thus
contaminating the topsoil and the subsurface aquifer. Absence of an underground lining permits
easy mixing of the ash with the topsoil of the area. Al, As, Zn, Mo, Ba, V, Mo, Cd, Mn, and Pb
exceed the WHO guidelines for drinking water in the tube well waters. People living near the ash
ponds are subjected to a high radiation dose from the ash ponds and the soil cover, which is
(approximately) 2.6 times higher than the world average. The waste water treatment facilities
adopted by the thermal power plants are generally sufficient to attain the standards stipulated by
the concerned regulatory authority, used in the cooling towers is generally disposed of at
temperature 4-50 C above the prevalent surface water temperature, which can harm the local
aquatic biota.
In the case of hydroelectric plants water environment is affected due to the stagnation of water in
the reservoir. If the reservoir accumulates runoff from agricultural fields, the water may contain
high amounts of fertilizer and pesticide residues, which may accumulate in the reservoir. Another
point of consideration is that the formation of dam blocks the migratory path of certain fresh water
fishes.
3. Noise & Land Environment:
The exposure of employees to high noise levels is more in the Coal based thermal power plant.
The natural soil becomes more alkaline due to the alkaline nature of fly ash thereby damaging the
agriculture / agricultural sector.
4. Biological Environment:
The effect on biological environment can be divided into two parts, i.e. the effect on flora and the
effect on fauna. Effect on flora is due to two main reasons land acquisition and due to flue
(combustion exhaust) gas emissions. Land acquisition leads to loss of habitat of some species. .
5. Socio-Economic Environment:
Hydro power plants create the following problem i.e. resettlement and rehabilitation, effect on
local civic amenities and work related hazards to employees of the power plants.

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LEGAL & REGULATORY ANALYSIS:
In the Electricity Act 1910, the rights were given to the state government for generation,
transmission and distribution of electricity. But if government had not sufficient resources to
develop these projects, it has option to issue the license to others for those projects. In this way
regulation restricted the other organization to enter into this business. There was legal frame work
for laying down wires and other works but there was no regulation regarding the tariff, power
generation, and infrastructure development. There were some provisions to maintain the
relationship between licensee and consumer but there was no regulation for efficiency of power
plant, tariff, environmental issues, and infrastructure development.

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SWOT ANALYSIS
STRENGHTS
A SWOT analysis of the power industry's strengths identifies features inside the industry that are
high-performing. These features need to be representative of areas over which the industry has a
high degree of control.
For example, the power industry’s strengths may highlight currently leased drilling sites, low rates
of plant accidents, safe nuclear waste removal or energy-efficient turbine technology.
WEAKNESS
An analysis of the power industry’s weaknesses identifies features inside the industry that are
low-performing or inefficient. The features inside the industry need to be representative of areas
the industry has a high-degree of control over.
For example, the power industry’s weaknesses may highlight a deceasing number of gas stations,
increasingly costly electric grids, increasing rates of work-related employee illnesses or
decreasing investment in alternative energies.
OPPORTUNITIES
An analysis of the power industry’s opportunities identifies features outside the industry that are
potential goldmines for growth. These features are representative of areas outside the control of
the industry.
For example, the power industry’s opportunities may include lifted bans on off-shore drilling,
increased tax incentives for energy-efficient automobiles, newly laid natural gas pipelines and the
seasonal increase in the number of days of sunlight.
THREATS
A SWOT analysis of the power industry’s threats identifies features outside the industry that are
potentially hazardous to continued growth. These features are representative of areas outside the
control of the industry.
For example, the power industry’s threats may include increasing emissions regulations, less
demand for oil and gas, climate change and increased public transportation options.

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INDUSTRY SIZE
The Indian power system is the fifth largest in the world and among the most complex. With an
annual electricity production of 1,031 billion units (BU), it is among the top five power consumers
across the globe, and the demand is expected to touch 1,900 BU by 2020. Growth in industrial
activities, population, economy, prosperity and urbanization, along with rising per-capita energy
consumption, has widened the gap of energy access in the country.
Indian power sector is undergoing a significant change that has redefined the industry outlook.
Sustained economic growth continues to drive electricity demand in India. The Government of
India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. At the
same time, the competitive intensity is increasing at both the market and supply sides (fuel,
logistics, finances, and manpower).
Total capacity of renewable energy plants in India stood at 42,850 megawatts as on April 30,
2016, thereby surpassing the 42,783 MW capacity of large hydroelectricity projects in the
country. Cumulative solar installations in India crossed the 7.5 GW mark in May 2016, about 2.2
GW more than all of the solar installations in 2015.
The Planning Commission’s 12th Five-Year Plan estimates total domestic energy production to
reach
669.6 Million Tonnes of Oil Equivalent (MTOE) by 2016–17 and 844 MTOE by 2021–22. As of
January 2016, total thermal installed capacity stood at 200.74 GW, while hydro (renewable)
energy installed capacity totaled 42.66 GW.
At 5.78 GW, nuclear energy capacity remained broadly constant compared with the previous year.
India's rooftop solar capacity addition grew 66 per cent from last year to reach 525 MW, and has
the potential to grow up to 6.5 GW.

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India’s wind power capacity, installed in FY2016, is estimated to increase 20 per cent over last
year to 2,800 MW, led by favorable policy support that has encouraged both independent power
producers (IPP) and non-IPPs. India is expected to add nearly 4,000 MW of solar power in 2016,
nearly twice the addition of 2,133 MW in 2015. India’s wind energy market is expected to attract
investments totaling Rs 1,00,000 crore (US$ 14.82 billion) by 2020, and wind power capacity is
estimated to almost double by 2020 from over 23,000 MW in June 2015, with an addition of about
4,000 MW per annum in the next five years.

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LANCO’S APPROACH For Corporate Social Responsibility
We approach CSR professionally at Lanco, and our aim is to align our efforts through
internationally accepted approaches, such as:
• Millennium Development Goals: Align our activities with the eight Millennium
Development Goals
• UN Global Compact: Make sincere and meaningful efforts to adhere to the 10
principles of the UN Global compact
• ISO draft 2600 criteria: Pay attention to the eight principles of ISO certification
• Triple bottom-line approach: Mainstream every element of our CSR policy as an
integral value system in all business and social strands of the company
• Adhere to National Voluntary guidelines
Our approach to CSR is based on three strategic principles:
• Doing more with less: Maximizing impact through effective use of funds by applying the
principle of ‘focus’ to target resources.
• Achieving results: Focusing on outputs and outcomes to achieve enhanced impact.
• Need-based development: Responsiveness to the needs and aspirations of people, and
following the development approach in all responses
Our approach to area of operation focuses on work in the neighbourhood villages of our
power plant areas and business locations. Programmes are targeted largely towards the poor
and the vulnerable, with particular emphasis on women and children.

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Lanco Foundation Programmes
CSR Programme - Education
With the objective of promoting quality primary and secondary education and creating access
to higher education to improve quality of life, the LANCO Foundation has launched three
focused activities in the education sector
• Lanco Merit Scholarships: Financial support is provided to meritorious students studying
preferably in government schools/ institutions. A scholarship amount of Rs. 2,000 for
students from class VI to IX, Rs. 10,000 for class X, Rs. 20,000 for classes XI and XII and
also for other professional courses in engineering, medical, law and management.
Currently, this programme covers over 1,500 students across 12 locations.(delete this line)
• School Kits: To motivate children in the rural schools, School kits comprising of school
bag, geometry box, colors and notebooks were distributed to 28,302 students in 13
locations across India.
• School Solar Energy: Solar energy panels were installed in 5 schools of Anpara, UP and 2
schools of Dhenkanal, Odisha. LANCO Foundation also gave free computer and television
to each school backed up with solar energy. Technical support for installation of solar
panels was provided by LANCO Solar.
• Special Scholarships: Special scholarships are granted to all the students studying in
government schools scoring more than 80% marks in grade X. Each such student is
awarded with scholarship amount of Rs. 5000. This programme is being carried out in
Vijayawada, AP since 2009 onwards.
• School Health Check-up: Camps are organized, twice a year at government primary
schools to promote health and hygiene amongst children. A general health check-up is
carried out to facilitate early detection of growth related deficiencies and general health of
children. Currently 130 schools are covered under this programme across the country.
About 15,000 children are screened every year
CSR Programme - Access to Preventive and Primary Healthcare
Preventive and primary healthcare is promoted in the areas located around LANCO plant
sites to reduce disease burden on the poor through mobile health services and special health
camps throughout the year.
• Lanco Mobile Health Service (LMHS): Free primary healthcare facilities are provided at
the village level and at the doorstep of the communities. The services include primary
healthcare and preventive awareness, as well as referral of cases that require attention
beyond primary healthcare. The mobile units equipped with a doctor and para-medical
staff, visits target villages regularly to diagnose patients and dispense free medicine.
Currently, 17 mobile vans operate in 11 states and 13 locations covering over 235,000
people. Each registered individual also gets a health card, which helps in knowing case
history for effective treatment, up-to-date reporting, data collection and analysis.
• Special Health Camps: These camps are aimed at creating health awareness and screening
for common but critical diseases such as eye ailments, cancer, tuberculosis, women and
child diseases and disability. Apart from free distribution of medicines and aids and

56 | P a g e
appliances, the camps help in early detection of diseases, creating health awareness and
taking preventive steps. The village communities and LANCO employees actively
participate in these programmes. Over 40 such camps are conducted every year benefiting
nearly 6,000 people.
CSR Programme - Drinking Water
To reduce water borne diseases and their adverse impact, the LANCO Foundation has
established drinking water plants in the neighborhood communities to provide safe drinking
water free of cost. The centralized 1000 litres per hour (LPH) water purifying plants, use
Reverse Osmosis (RO) technology and UV filtration to filter raw water, which is disbursed at
the water plant in cans of 12 and 20 liters capacity. We are currently operating 33 plants
covering over 60,000 population in 8 states.
Feasibility and impact of the village location is scientifically studied and subsequently the
water plant is erected with the consent of the stakeholders from community. The community
is encouraged to gradually handle the day-to-day operations and maintenance to inculcate
ownership. Water standards set by the Bureau of Indian Standards and the World Health
Organization have been taken into consideration to ensure that safe drinking water is
provided to the communities.
CSR Programme - Rehabilitation of the Disabled
Directly addressing the mobility needs of the disabled and providing rehabilitation free of
cost is one of the flagship programmes of Lanco Foundation. The programme caters to people
with loco motor disability. The endeavor is to encourage mainstreaming the differently-abled
people. Currently, the Lanco Foundation operates four Artificial Limb Fitting Centers
(ALFCs) in four states serving over 1,000 people every year. This programme has been going
on since2005 onwards.
Fitment of tailor made artificial limb/appliance is a service provided free of cost, both at the
center and during the community outreach camps. Basic physio-therapy services are provided
at the center to ensure proper adjustment with the limb. On an average, each center conducts
about 23 screening/distribution camps every year.
World Disability Day is celebrated every year at all ALFCs, involving people with loco
motor disabilities, Lanco employees, government departments and district administration.
Special Scholarships are given to the physically challenged in 3 locations. Efforts are also
being made to provide skill training to generate employment opportunities and self-
employment in 2 locations
CSR Programme - Humanitarian Support and Community Development
Lanco Foundation for the last decade has been deeply involved in the promotion of the
traditional art of Kondapalli toy making where the artisans make beautiful toys from wood

57 | P a g e
that come to life with bright colors. Foundation is supporting to protect and promote the
traditional art and also helping in creating a provision for improved livelihoods for more than
140 families involved. Assistance is also provided in terms of revolving fund, training,
marketing and strengthening MACs society. This is the first handicraft in Andhra Pradesh to
get the GI certification from GoI.
CSR Programme – Environment
Awareness creation on the environment is undertaken regularly in neighborhood
communities. Tree plantation drives are organized each year with the involvement of the
local Panchayats and communities. Saplings are distributed to families free of cost and they
take on the responsibility for looking after the trees.
World Environment Day is celebrated on June 5 every year across 12 locations in India with
the formal launch of tree plantation campaign. Different competitions on environment are
held amongst the school students to foster their creativity on environment protection. School
children, local community leaders, forest officials come together to mark the importance of
this day.
CSR Programme – Workplace
Since the inception of Lanco foundation, all CSR activities encourage employee participation
and them to contribute their time, knowledge and skills for effective and strong
implementation of the CSR programmes. The Lanco Foundation has initiated three broad
programmes and specific activities to encourage and engage employees:
Employee Awareness: Employee awareness and wellness sessions on HIV-AIDS, Cancer,
Healthy Heart/Lifestyles etc., are organized every year at different locations. Posters are
displayed at 11 plant locations and offices to create awareness on various aspects of CSR.
Elders’ Day camps are organized with support of the plant employees wherein the
community’s elders participate in a day-long event that features counseling services,
entertainment and lunch. Gifts such as a blanket, bed sheet, shawl, etc., are also presented.
Over 6500 elders are covered under this annual event.
Blood Donation camp is organized on 01 October, in collaboration with the Indian Red Cross
Society annually on the eve of Gandhi Jayanti, in all Lanco offices and plant locations to
encourage employees to donate blood. This activity has been an annual event for over 10
years at Lanco.
CSR Programme – Donation
Lanco Foundation exceptionally makes some donation to the needy individuals for health
emergencies and education support. Organizations working for the social development are
provided support on special occasions. ‘Make a Wish Foundation’ is one of the examples of

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organizational support. These are not part of the regular programmes, but decided by the
board of Trustees on case to case basis.

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COMMUNICATION MEDIUM
Through Website
Through LinkedIn

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GEOGRAPHICAL SPREAD
Source: http://www.lancogroup.com/DynTestform.aspx?pageid=6

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BIBLIOGRAPHY
A. Annual Reports of Lanco Infratech for F.Y. 2010-11, 2011-12, 2012-13, 2013-14, 2014-15
B. Annual Reports of other companies for F.Y. 2014-15
C. www.lancogroup.com
D. www.hdfcsec.com
E. www.moneycontrol.com
F. www.bseindia.com
G. www.equitymaster.com
H. http://www.ibef.org/industry/infrastructure-sector-india.aspx
I. http://www.cii.in/sectors.aspx?enc=prvePUj2bdMtgTmvPwvisYH+5EnGjyGXO9hLECv
TuNsS+HdM2iCmwb4bkpgCBZAr
J. http://www.moneycontrol.com/competition/lancoinfratech/comparison/LI10#LI10
K. IRJBM – ( www.irjbm.org ) December – 2013 - Volume No – VI
a. UNCTAD, 2010 b
b. Goldman Sachs Report, 2012
c. Planning Commission of India, Eleventh Plan Targets and Achievement
d. Mckinsey India Report, 2012
L. www.blogspot.com
M. www.indiainbusiness.nic.in
N. www.pwc.in

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Lanco Infratech Limited
CASE STUDY

Company Based Research Project on LANCO Infratech Ltd.

Company Based Research Project on LANCO Infratech Ltd.

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