EIL offer to kick-start fresh PSU divestment

Mumbai, July 26, 2010: Public sector undertaking Engineers India Limited proposes to enter the capital markets tomorrow with its follow-on public offer of 33,693,660 equity shares of Rs 5 each. The Offer comprises a net offer to the public of 32,981,660 Equity Shares and reservation of 712,000 Equity Shares for subscription by Eligible Employees. 

The Offer marks a divestment of 10% in EIL by the President of India, acting through the Ministry of Petroleum and Natural Gas, Government of India.

The Offer is being made through a 100% book building process wherein up to 50% of the Net Offer will be available for allocation on a proportionate basis to Qualified Institutional Buyers. Further, not less than 15% of the Net Offer will be available for to Non-Institutional Bidders and not less than 35% of the Net Offer  will be available to Retail Individual Bidders.

The Selling Shareholder currently holds 90.40% of the pre-Offer paid-up capital of the Company. The object of the Offer is to carry out divestment of 33,693,660 Equity Shares held by the Selling Shareholder, wherein all proceeds of the Offer will go to the Selling Shareholder.

EIL has provided a range of engineering consultancy and project implementation services on more than 49 refinery projects, including eight greenfield refinery projects, seven petrochemical complexes, 35 oil and gas processing projects, 205 offshore platforms projects, 37 pipeline projects, 11 ports and storage and terminals projects, eight fertilizer projects and 26 mining and metallurgy projects. In the infrastructure space, it has provided a range of engineering consultancy services for more than 26 projects, including for airports, highways, flyovers, bridges, water and sewer management, as well as energy-efficient “intelligent” buildings. The Company has also completed 16 turnkey projects, including refinery and petrochemicals projects and offshore platforms.

About Engineers India Limited:

EIL was incorporated on March 15, 1965 under the Companies Act as a private limited company under the name Engineers India Private Limited pursuant to a formation agreement dated November 20, 1964 and in accordance with a memorandum of agreement dated June 27, 1964 between the GoI and Bechtel International Corporation. In May 1967, it became a wholly-owned GoI enterprise. In 1996, the GoI disinvested approximately 6.0% of its shareholding in the Company and it became a public listed company. It has two wholly-owned subsidiaries, Certification Engineers International Limited and EIL Asia Pacific Sdn. Bhd. incorporated in India and Malaysia, respectively, and two strategic joint venture companies, TEIL Projects Limited and Tecnimont EIL Emirates Consultores e Servico, LDA, incorporated in India and Portugal, respectively.

EIL is an engineering consultancy company providing design, engineering, procurement, construction and integrated project management services, principally focused on the oil and gas and petrochemicals industries in India and internationally. It also operates in a diverse set of other sectors including nonferrous mining and metallurgy and infrastructure. The Company is also a primary provider of engineering consultancy services for the Government of India's energy security initiative under its Integrated Energy Policy for strategic crude storages. EIL’s portfolio includes various technologies for petroleum refining, oil and gas processing and aromatics. It currently holds 10 patents and has 20 pending patent applications relating to various process technologies and hardware developed by the Company.

EIL’s services in these industries and sectors cover the entire spectrum of activities from concept to commissioning of a project. The Company's services include preparation of project feasibility reports, technology selection, project management, process design, basic and detailed engineering, procurement, inspection, project audit, supply chain management, cost engineering, planning and scheduling, facilitation of statutory and regulatory approvals for Indian projects, construction management and commissioning.

EIL has leveraged its track record in India to successfully expand its operations internationally, and has provided a wide range of engineering consultancy services on various international projects, particularly in the Middle East, North Africa and South East Asia. It has established strategic international offices in Abu Dhabi, London, Milan and Shanghai to expand its international operations.

The Company's total income increased at a CAGR of 47.28% from Rs.6,876.5 million for the year ended March 31, 2007 to Rs.21,969.6 million in the year ended March 31, 2010, while its profit after taxation, as restated, increased at a CAGR of 47.31 % from Rs.1,390.0 million in the year ended March 31, 2007 to Rs.4,443.4 million in the year ended March 31, 2010.

During the quarter ended June 30, 2010 of the current financial year, EIL recorded a net profit of Rs. 1,145.6 million as against net profit of Rs. 942.2 million for the the corresponding quarter ended 30^th June 2009 of the previous financial year. The Net Sales for the quarter ended June 30, 2010 was Rs. 6,060.3 million as against Rs. 3,914.3 million for the corresponding quarter ended 30^th June 2009 of the previous financial year.

ARSS Infra PAT jumps by 80%

• Q1 FY11 PAT up by 80% to Rs.34.05 Cr.
• Income up by 59% to Rs.356.48 Cr.
• EPS increased by 52% to Rs.22.94 Cr.

Mumbai, July 26, 2010: The Bhubaneswar based ARSS Infrastructure Projects Limited, a growing corporate in the infrastructure space focusing on construction of roads, highways, bridges, irrigation projects and EPC activities for railways continues to show good growth. It’s PAT in the first quarter of FY 2011, stands at Rs 34.05 crores as against Rs 18.90 crores in the same period in the previous fiscal.

The company’s Net Income from Operations in the first quarter of the current fiscal stands at Rs 356.48 Cr., an increase of 59% from Rs. 224.28 Cr.in the previous fiscal.

In the first quarter of FY 2011, the company has bagged six prestigious projects collectively worth Rs 458.75 crores. This indicates a strong order book and company’s potential for positive performance this year.

In the first quarter of the current fiscal year, ARSS Infra received an order worth Rs 114.49 crores from RITES Limited for construction of earthwork, bridges, supply of P-way material, supply of ballast and P-way linking for proposed private railway siding. It also bagged project worth Rs 99.90 crores from Madhya Pradesh Road Development Corporation Ltd. in May this year.

Similarly, it has secured assignments worth Rs 80.32 crores and Rs 71.62 crores from Greater Mohali Area Dev. Authority (GMADA) and SAIL, Bokaro Steel Plant respectively. ARSS Infra received another project from Northeast Frontier Railway, Guwahati worth Rs 41.56 crores.

Early June this year, the company has also bagged a project worth Rs 50.86 crores from Rayagada (R&B) Division, Rayagada, Odisha.

Mr. Sunil Agarwal, President & CEO, said, “We are pleased to continue the same growth that we showed last year. As we spread ourselves to other parts of the country and move up the infra value chain, this growth will continue.”

About ARSS Infrastructure Projects Ltd.:

Incorporated in 2000, ARSS Infrastructure Projects Limited (abbreviated as “ARSS.”) is an ISO 9001:2008 company. The Company is engaged in construction activities in India, and undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. It started operations as a construction company in the field of railway infrastructure development, mainly in the state of Orissa and subsequently expanded its business activities in the zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. ARSS has developed expertise in railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. Over the years it has diversified its field of activities into other construction segments such as development and construction of roads, highways, bridges, irrigation projects, EPC activities for railways.

ARSS has been listed on the NSE & BSE since 3^rd March, 2010. For further details log on to www.arssgroup.in 

For more details contact : Mr. Shahab Shaikh,

                                             E-mail : shahab@conceptpr.com,

                                             D: 022.40558927, M: + 91 93208 97525

Big bucks in the air: Aviation sector to attract $120 billion in 10 yrs

The Prime Minister, Dr. Manmohan Singh has inaugurated the integrated tehe T-3 Terminal of Delhi’s Indira Gandhi International Airport.

Here are some of the points that he has made:

• We are all very happy and indeed very proud of the completion of our one of the world’s largest airport terminals in a record time of 37 months.
• This airport terminal establishes new global bench marks. It also exemplifies our country’s resolve to bridge and bridge fast enough the infrastructure deficit in our country.
• It proves the success of the Public Private Partnership model in execution of large infrastructure projects. It also proves our capacity to coordinate across agencies and governments and work as a united team.
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• The aviation sector is a vital to India’s sustained economic growth. It plays a major role in generating tourist flow, accelerating industrial development, creating new jobs and integrating our country. In a span of a few years, India has become the 9th largest aviation market in the world. We now have 10 scheduled airlines operating in our country, compared to 2 in 1990.
• It is estimated that India’s aviation sector has the potential to absorb up to US$ 120 billion of investment by the year 2020. Analysts predict that domestic traffic can reach 160 to 180 million and international traffic in excess of 50 million by the year 2020.
• An airport is often the first introduction to a country. A good airport would signal the arrival of new India, committed to join the ranks of modern, industrialized nations of the world. We should have airports that are receptive to the comfort of passengers even as they meet the highest standards of efficiency and safety. They should employ the most modern of technologies but also exude cultural warmth.
• Let me end by once again emphasizing the need to rapidly improve our physical infrastructure. This is one area where we have been lagging behind but I am confident that in the time to come we will achieve much more than in the past. I hope to see many such successful projects in the future.
• This will be in keeping with our ambition, our aspirations and our new found confidence in recent years.