Industry Profile: The infrastructure sector is a crucial driver of the Indian economy. The industry is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. Infrastructure includes power, bridges, dams, roads, and urban infrastructure development. In 2016, India jumped 19 places in World Bank’s Logistics Performance Index (LPI) 2016 to rank 35th among 160 countries.
NDA Govt recently added Affordable housing under infrastructure, which opened the significant potential for that sector and infrastructure.
FDI received in the Construction Development sector (townships, housing, built-up infrastructure, and construction development projects) from April 2000 to March 2017 stood at US$ 24.3 billion, according to the DIPP. The Government of India has planned an investment worth Rs 45,000 crore (US$ 7.07 billion) for developing India’s northeastern regions bordering China, Bhutan, Bangladesh, and Myanmar. In addition, the Ministry of Road Transport and Highways, Government of India, invested Rs 14,916 crore (US$ 2.32 billion) for the Special Accelerated Road Development Programme for North East (SARDP-NE) and Rs 4,095 crore (US$ 635.6 million) for the National Highway (Original) over the past two years to improve the road infrastructure in India’s northeastern region. The infrastructure sector in India witnessed 33 deals in FY 2016-17 involving US$ 3.49 billion as against US$ 2.98 billion raised across 31 deals in FY 2015-16, with the majority of contracts led by the power, roads, and renewable sectors, as per investment bank Equirus Capital.
Company Profile: The company is a part of the Anil Dhirubhai Ambani group. The company came into existence when the reliance group took over Bombay Suburban Electric Supply (BSES) in 2002. Original BSES existed since 1 October 1929. Through its subsidiaries like Reliance Mumbai Metro, Reliance Naval, and Reliance Power, the company operates in various segments of business like Road infra, Power Generation, distribution, trading, and transmission. The company also works in Defence and has one of the best shipbuilding facilities in India. The company also keeps contracts of 5 brownfield airports for development and operation, including Latur, Nanded, yawatmal, Baramati, and Osmanabad.
The company is also under the build, operate, transfer (BOT) scheme with 11 road projects of 970 km, worth Rs 11,500 crore. The projects work in urban high-traffic growth corridors of Delhi, Bangalore, Jaipur, Gurgaon, Agra, and Pune.
Shareholding Pattern: BSE Data
Financial and Ratios : [table id=80 /]
Future Prospect: The company is debt-free after the deal with Adani Transmission. Infrastructure is very important for a country like India. Govt initiatives like Bharatmala and Metro projects are essential. The power sector was going through a painful time. Now, after UDAY Scheme and many more plans power sector is ready to grow. The company holds subsidiaries like Reliance Power and Reliance Naval. The company also sold Cement units and other power assets. Still, it saves power business in Delhi, which is a majority cash flow generating business. But as the group is ready to concentrate on Defence.
