CHAIRMAN
During FY12, we have executed 10 projects worth Rs 768 crore in sectors like roads
& highways, industrial structures, buildings, water supply etc.
My dear fellow stakeholders,
In most Countries, Infrastructure is considered to be a sector of immense strategic
importance. Hence, it usually enjoys high priority treatment from administrative bodies.
In India, however, the Infrastructure story is somewhat different. Development of this
crucial sector has been plagued with issues of implementation. As a result, the pace of
growth has simply been much slower than the needs of the economy, especially one that aims
at maintaining a sustained growth rate of close to nine per cent.
FY 12 has not been so good for the sector and it has seen a considerable slowdown. The
annual performance of the crucial infrastructure sectors, including highways, oil &
gas, water, urban infrastructure and others, during the fiscal has been poor. Most of
these segments witnessed negative growth. The year also saw contraction in the number of
start-ups as well as in the planned investment announced by both the private and public
sector. In case of roads, the National Highways Authority of India (NHAI) widened/upgraded
2,200 km of highways during 2011-12. This was 10.1 per cent lower than the target of 2,500
km for the period. It was also 29 per cent less than that achieved in the previous year.
In India, last year water and real estate sectors have recorded a growth rate of over
eight per cent.
Despite the overall picture being grim, it turned out to be a good year for Welspun
Projects Ltd (WPL), especially when compared to FY11. We are growing at a decent pace and
improving our performance. Our standalone and consolidated revenues increased by 26 per
cent and 41 per cent respectively compared to the previous year, which itself is a
testimony to our accomplishments as a Civil Contractor.
The 11th Five-Year Plan (2007- 2012) had already identified that inadequate
infrastructure was a major constraint on the country’s rapid growth. The 12th Plan
had, therefore, emphasised the need for massive inflow of funds into the infrastructure
sector, based on a combination of public and private investments, the latter through
various forms of public-private partnerships (PPP).
During FY12, we have executed 10 projects worth Rs 768 crore in sectors like roads
& highways, industrial structures, buildings, water supply etc. Some of these are
Non-Plant Building project at Panipat, Residential Building project at Bhilai, Building
Work for RIB-I at the Opal Dual Feed Cracker and Associated Units in the Dahej Petro
Chemical Complex, Augmentation of Water Supply Scheme at Umargam, Dist. Valsad etc.
These achievements were possible only because of our project management expertise,
cutting-edge technology and design innovation. The company is set to play a larger role in
the infrastructure space.
In the case of BOT (Build Operate Transfer) road projects, we have received one under
our own name i.e. Chirai-Anjar Road project valued at Rs. 260 crore. However, we have
successfully completed six BOT (Toll) road projects with a total length of over 500 km and
a capital expenditure of over Rs. 1000 Crores The signature project among these is the
142.6 km long Dewas-Bhopal Corridor linking Bhopal and Dewas on SH 18 in Madhya Pradesh.
We have also been awarded the Mohali water supply project valued at Rs. 156 crores.
Other significant achievements are the construction of an 80MW captive power plant and
the Memorial Building at Anjar. Both these projects are important because of certain
unique features. In the captive power plant at Anjar, we have built a 110m high chimney
which also involved erection of coal handling structure at height of 62.5m. Similarly, in
the Memorial building at Anjar, we have fabricated and erected a steel dome with a
diameter of 40.3m and height of 18.5m.
Looking at the future, we are well poised to play a bigger role in the infrastructure
space. Currently WPL is executing projects like the Baramunda Bus terminal, Vapi Buildings
and in house Industrial/Building projects in Anjar. All these projects are expected to be
completed by 2014.
Our commitment to building India’s infrastructure goes beyond business. In such a
difficult environment, your Company has worked very hard to deliver results. Careful
underwriting, anticipating risks and proactive problem solving have allowed us to protect
our asset quality. With your support and encouragement, I can assure you of WPL’s
strong continued commitment to building sustainable and inclusive infrastructure in India.
- B K Goenka
Chairman
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