Indian Hume Pipe Company Ltd Management Discussions.

1. INDUSTRY STRUCTURE & DEVELOPMENT:

We all know that water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to our life. In view of the vital importance of water for human, animal & plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

Your Company has been in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development of drinking water supply projects, irrigation projects, Hydro Electric Projects, Sanitation and Sewerage schemes. For over three decades as a part of nation building, your Company has also been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.

2. OPPORTUNITIES AND THREATS:

Water is one of the most crucial elements in our national developmental planning for the 21st Century. The proper management of our limited water resources will be essential to ensure food security for countrys growing population and to eliminate poverty. (Water Policy and Action Plan for India 2020: An Alternative).

As per Indian Census 2011, the population of India was 121 crores. A scarce natural resource, water is fundamental to life, livelihood, food security and sustainable development. India has more than 18% of the worlds population, but has only 4% of worlds renewable water resources and 2.4% of worlds land area. There are further limits on utilizable quantities of water owing to uneven distribution over time and space. In addition, there are challenges of frequent floods and droughts in one or the other part of the country. With a growing population and rising needs of a fast developing nation as well as the given indications of the impact of climate change, availability of utilizable water will be under further strain in future with the possibility of deepening water conflicts among different user groups. The main emphasis of the National Water Policy, 2012 is to treat water as economic good. Low consciousness about the scarcity of water and its life sustaining and economic value results in its mismanagement, wastage, and inefficient use, as also pollution and reduction of flows below minimum ecological needs. In addition, there are inequities in distribution and lack of a unified perspective in planning, management and use of water resources (Source:- National Water Policy 2012). As it is with the growing population demanding more food, more products and higher standards of living, the shortage of drinking water can only get worse. Thus there is a vast scope for improvement in infrastructural developmental activities in water supply, drainage and sewerage schemes in sanitation Swachh Bharat segments leading to good scope for the Companys manufacturing and contracting activities in this field.

Growth of population and the expansion of economic activities inevitably lead to increasing demands for water for diverse purposes

i.e. domestic, industrial, agricultural, hydro-power, thermal power, navigation, recreation etc. Domestic and Industrial water needs have been largely concentrated in or around major cities, however the demand in rural areas is expected to increase sharply with the development programmes of State Governments to improve the economic conditions of the rural mass. Demand for water for hydro and thermal power generation and for other industrial uses is also increasing substantially. As a result water which is already scarce will become even scarcer in future. This underscores the need for the utmost efficiency in water utilisation and its distribution. Through awareness of efficient water supply system and water quality, we can keep our water supply adequate and provide clean & healthy water for our children. It is their fundamental rights. Hence there is a good scope for many water supply projects coming up in near future and this auger well for your Company.

Increased competition from medium/large scale construction entities and availability of substitutes such as alternative pipe materials like Ductile Iron pipes, Spirally welded steel pipes and H.D.P E. pipes are perceived as one of the threat / competition to the Company. Another cause is prices of key raw materials namely steel, steel wires, HT wires and cement, which were on uptrend during the year under review.

3. SEGMENT-WISE ACTIVITY:

The Company is considered a pioneer in the field of water supply industry; it is in this line for last 94 years. The Companys presence is there in almost all water supply related activities, viz. Urban & Rural Water Supply, Penstock for Hydro Power Generation, Tunnel Lining, Large diameter Irrigation pipelines, Head Works including pumping machinery, Treatment Plants, Overhead Tanks and other allied Civil Construction. The Company also supplies Concrete Railway sleepers to Indian Railways. The segment wise report is as under:

(A) WATER SUPPLY AND SEWERAGE PROJECTS:

(i) Some prominent Water Supply Projects and Drainage Schemes substantially completed by your Company valued more than Rs 5,000 Lakhs each during the year are:-

1. TWAD Board, Coimbatore for Tiruppur Water Supply Scheme consisting of 200 to 600 mm dia DI K7 pipes and 110 to 225 mm dia HDPE pipes including Overhead tanks, Sumps and 40,200 Nos. House Service Connections of the value of Rs 19,302.19 Lakhs in Tamilnadu.

2. J.C.Nagi Reddy Drinking Water Supply Scheme Phase II & III in Ananthapuramu District in Andhra Pradesh, consisting of 500 mm dia BWSC pipes and MS pipes of 600 mm dia and 1,000 mm dia of the value of Rs 13,197.57 Lakhs for RWS&S dept. in Andhra Pradesh.

3. S2D(a) for manufacture, supply, laying, jointing & testing of Pre stressed Concrete Cylinder (PCCP) Pipes of 1800 mm dia for length of 5,315 Mtrs of the value of Rs 7,022.29 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

4. Providing Water Supply House Service Connections and Distribution network under AMRUT Scheme for Kurnool Municipal Corporation consisting of 110 to 400 mm dia HDPE Pipes and House Service Connections - 15,367 Nos. of the value of Rs 5,949.86 Lakhs, Kurnool in Andhra Pradesh.

(ii) Companys works on many Water Supply Projects and Drainage Schemes valued more than Rs 5,000 Lakhs each are progressing well and/or nearing completion and the noteworthy amongst them are:-

1. Minor Irrigation and Ground Water Development Division, Koppal, for filing of tanks in Kushtagi Taluk of Koppal district by lifting water from Kishna River for ground water development and drinking purpose Pipeline consisting of 500 to 800 mm dia BWSC, 150 to 1200 mm dia MS and 160 to 280 mm dia HDPE pipes, construction of intake channel, jack well cum pump house with Power supply including terminal bays, laying of transmission lines etc. including civil works of the value of Rs 56,105.03 Lakhs in Karnataka.

2. State Water & Sanitation Mission, Kanpur Water Supply Scheme and various Rural Water Supply Projects in the State of Uttar Pradesh, consisting of Survey, Design, Preparation of DPR, Construction, Construction of tube well / Intake Well, WTP rising / pressure mains, CWRs, overhead tanks, distribution pipe networks, individual house connections, public stand posts, Retrofitting etc. of the value of Rs 55,000 Lakhs.

3. Karnataka Power Corporation Limited, Bengaluru for manufacturing and supplying to site, laying, jointing, testing and commissioning of 1600/1700 mm dia PCCP Pipeline and construction of appurtenant works for the water supply pipeline from Kushtagi to Bellary Thermal Power Plant of the value of Rs 44,484.17 Lakhs in Karnataka.

4. Municipal Corporation Madurai, for dedicated Water Supply Scheme for Madurai Corporation from Mullai Periyar River at Lower Camp including Head works, Raw Water Pipeline Package-1 consisting of 1067 to 1118 mm dia MS pipes for 95,740 Mtrs. including Intake Well - 3 M Dia - 1 No, Collection Well Cum Pump-House and Coffer-Dam Arrangements - 1 No, Pipe Carrying Bridges for River Crossing - 7 nos Electro Mechanical works of the value of Rs 36,095.75 Lakhs in Tamilnadu.

5. Water Resources Investigation Division, Palanpur, Gujarat for the work of Engineering, Procurement and Construction (EPC) Contract for Lift Irrigation M.S pipeline project for transmission of 200 cusecs of water from N.M.C. Chainage 431.200 Km near Tharad to Sipu Dam for Package 2 from Head Works at Ramsan Village to Sipu Dam consisting of 2,000 mm dia M.S. pipes for 25,336 mtrs and 315 mm dia HDPE Pipes for 38,463 mtrs including Electro-mechanical and instrumentation works of the value of Rs 30,932.34 Lakhs in Gujarat.

6. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur- Prithviraj Nagar Water Supply Project Phase-I, Stage-I Consisting of 700 to 2300 mm dia MS, 100 to 600 mm dia DI and 110 to 200 mm

dia HDPE Pipes including Clear Water Reservoir : 10 Nos (2000 KL to 36000 kL) Over Head Service Reservoir : 19 Nos (1000 KL to 2500 KL) Pumping Station with Chlorination Room:- 9 nos PLC & SCADA System of the value of Rs 26,529.28 Lakhs in Rajasthan.

7. Public Health Engineering Department, Ajmer for Jahazpur Water Supply Scheme consisting of 250 to 700 mm dia BWSC, 100 to 350 mm dia DI (K7), 200 mm dia DI (K9), 110 to 310 mm dia HDPE, 90 mm to 160 mm upvc and 700 to 800 mm dia MS Pipes including over head tank pumping station of the value of Rs 25,599.27 Lakhs in Rajasthan.

8. Madhya Pradesh Jal Nigam Maryadit for Indwar-I Multivillage Rural Water Supply Scheme in Umariya and Katni Disctrict consisting of 100 to 800 mm dia DI (K-7) Pipes for 296.16 Km, 600 mm dia DI (K9) pipes for 4.7 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 1709.89 km including Intake well, Water Treatment Plant, Overhead Tank and 42,698 Nos. House Service Connection of the value of Rs 25,041.36 Lakhs in Madhya Pradesh.

9. State Water and Sanitation Mission, Lucknow, Uttar Pradesh for Construction of Kuraicha Group of Villages Water Supply Scheme, District - Jhansi (Based on Surface Water) consisting of DI K9 150 to 600 mm dia for 1,37,713 mtrs, DI K7 pipes 100 to 300 mm dia for 2,25,840 mtrs and GI pipes 50 to 80 mm dia for 3,16,871 mtrs including operation and maintenance of the value of Rs 23,491.14 Lakhs.

10. Madhya Pradesh Urban Development Co. Ltd., for Bhedaghat Water Supply Scheme consisting of 150 to 200 mm dia DI K7 pipes, 100 to 600 mm dia DI K9 pipes and 110 to 315 mm dia HDPE Pipes including Intake Well, 31 MLD water treatment plant, overhead tanks and 22,400 Nos. House Service Connections of the value of Rs 23,471.79 Lakhs in Madhya Pradesh.

11. TWAD Board, Coimbatore for CWSS to Alampalayam Town & other habitations in Namakkal District, consisting of 100 to 300 mm dia DI K7 pipes for 114.36 km, 100 to 600 mm dia DI K9 pipes for 85.45 km, 813 & 700 mm dia MS pipes for 18.87 km and 63 to 160 mm dia PVC pipes for 624.76 km including Water Treatment Plant, Overhead tanks allied civil works of the value of Rs 22,054.87 Lakhs in Tamilnadu.

12. For supply, laying, jointing & testing of DI Pipes from 100 mm to 600 mm dia for length of 6,76,987 Mtrs, 762 mm to 1,422 mm dia MS Pipes for length of 24,049 Mtrs. and DI Specials, Valves etc. and connected civil works of the value of Rs 21,114.52 Lakhs, for Byatarayanapura WSS, for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

13. Public Health & Municipal Engineering Department, Ananthapuramu, Andhra Pradesh for Providing Water Supply Distribution Network, House Service Connections, AMR Meters and SCADA including Operation and Maintenance in Municipal Towns of Yemmiganur, tmakur, Allagadda, Gudur and Nandikotkur in Kurnool District (Package - II) consisting of 300 to 450 mm dia DI K-7 Pipes and 110 to 250 mm dia HDPE Pipes including civil works of the value of Rs 20,450.82 Lakhs in Andhra Pradesh.

14. Municipal Corporation Bilaspur, Chhattisgarh for Bilaspur Water Supply Scheme part-I consisting of 1,500 mm dia MS pipes, 300 to 1100 mm dia DI K7 pipes and 700 to 900 mm dia DI K9 pipes including water treatment plant, overhead tanks of the value of Rs 20,151.66 Lakhs in Chhattisgarh.

15. Minor Irrigation & Ground Water Development Division, Kalaburgi Lift Irrigation Scheme consisting of Survey, investigation, design, supply installation, testing etc., "Filling of tanks in Kalaburagi (south) taluk of Kalaburagi district by lifting water from Bennithora reservoir for ground water development and drinking purpose, comprising of head works, Construction of Approach Channel, Intake Channel, Jack Well cum Pump House, Raw Water Pumping, 300 to 100 mm dia Ms Pipes and 500 mm dia BWSC pipes, laying of transmission lines. Raising main, Delivery chambers and gravity mains etc along with Pumps & Motors, Rejuvenation of Kere Bhosga & Melkunda Tank of the value of Rs 19,879.99 Lakhs in Karnataka.

16. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur Jaipur Water Supply Project Stage-II, Phase-I, including Construction of WTP having capacity of 216 MLD extendable to 360 MLD at Surajpura Construction of Pumping Station-2 nos. Clear Water Reservoirs having capacity of 30 MLD at Renwal-2 nos. Construction of 150 KL Capacity RCC underground Sump for collection of recycled water. PLC & SCADA System at WTP and Pump Houses conducting of Surge Analysis Solar Power Generation System of the value of Rs 19,237.66 Lakhs in Rajasthan.

17. Water Resources Investigation Division, Palanpur, Gujarat for the work of Engineering, Procurement and Construction (EPC) Contract for Lift Irrigation M.S pipeline project for transmission of 200 cusecs of water from N.M.C. Chainage 431.200 Km near Tharad to Sipu Dam for Package 1 from Head Works at Tharad (Mahajanpura Village) to Head Works at Ramsan Village with Intermediate Head Works at Madal Village consisting of 2,024 mm dia MS pipes for 43.380 kms and 315 mm dia HDPE pipes for 72.045 kms of the value of Rs 18,707.19 Lakhs in Gujarat.

18. Tillari Water Supply project comprises of PCC pipeline of 1,300, 1,200, 900 & 800 mm dia for 33.88 Km and BWsC pipeline of 500 to 700 mm dia for 43.73 Km of the value of Rs 16,610.31 Lakhs for Maharashtra Jeevan Pradhikaran in Maharashtra.

19. Jalgaon Jamod and 140 villages water supply scheme. The project comprises of 450 to 1,000 mm dia PCC pipeline for 48.90 Km of the value of Rs 16,266.42 Lakhs for Maharashtra Jeevan Pradhikaran in Maharashtra.

20. Municipal Corporation Raipur, Chhatisgarh for Raipur Water Supply Scheme consisting of 100 to 600 mm dia DI K7 pipes and 200 to 500 mm dia DI K9 pipes including water treatment plant, overhead tanks and 12,466 Nos. House Service Connections of the value of Rs 14,179.74 Lakhs in Chhatisgarh.

21. Madhya Pradesh Jal Nigam Maryadit for Kandaila Multi village Rural Water Supply Scheme in Rewa district consisting of 100 to 500 mm dia DI (K-7) Pipes for 112.01 Km, 450 to 600 mm dia DI (K9) pipes for 9.35 Km and 90 to 280 mm dia HDPE (PN-6) Pipes for 868.06 km including Intake well, Water Treatment Plant, Over head Reservoirs, Clear Water Pumping Mains and allied civil works of the value of Rs 14,175.19 Lakhs in Madhya Pradesh.

22. The Public Health Circle, Ananthapuramu for Tadipatri Water Supply Improvement Scheme, AMRUT scheme consisting of 150 to 800 mm dia DI K9 pipelines of the value of Rs 13,554.56 Lakhs in Andhra Pradesh.

23. Gajapati Water Supply Scheme for Rural Piped Water Supply Projects pertaining to Kasinagar & Gumma block of Gajapati District consisting of DI K9 100 to 400 mm dia for 94,799 mtrs, DI K7 pipes 200 to 250 mm dia for 37,937 mtrs and HDFE pipes 90 to 160 mm dia for 2,56,833 mtrs including operation and maintenance of the value of Rs 13,482.10 Lakhs in Odisha.

24. Madhya Pradesh Jal Nigam Maryadit for Bankpura Multivillage Rural Water Supply Scheme in Rajgarh District consisting of 100 mm to 450 mm dia DI (K-7) Pipes for 180.62 Km, 100 mm to 450 mm dia DI (K9) pipes for 32.70 Km and 90 mm to 225 mm dia 446.25 Km for HDPE (PN-6) Pipes including Intake well, Water Treatment Plant, Over head Reservoirs, Clear Water Pumping Mains and allied civil works of the value of Rs 13,194.20 Lakhs in Madhya Pradesh.

25. Korba Municipal Corporation, Korba for Water Supply Scheme to Korba consisting of DI & PCCP Pipes, Raw Water pumping Main of the value of Rs 12,707.18 Lakhs in Chhattisgarh.

26. Municipal Corporation Raipur, Chhatisgarh for Augmentation of Raipur Water Supply Scheme Phase-II Package-V consisting of 100 to 500 mm dia DI K7 pipes for 341.10 km and 500 to 800 mm dia DI K9 pipes for 5.79 km including allied civil works and 40,281 Nos. House Service Connections of the value of Rs 12,510.34 Lakhs in Chhatisgarh.

27. Madhya Pradesh Jal Nigam Maryadit for Gadakota Multi village Rural Water Supply Scheme in Sagar district consisting of 100 to 400 mm dia DI (K-7) Pipes for 153.77 Km, 450 mm dia DI (K9) pipes for 10.90 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 621.85 km including Intake well, Water Treatment Plant, Over head Reservoirs, Clear Water Pumping Mains and allied civil works of the value of Rs 12,395.03 Lakhs in Madhya Pradesh.

28. The Public Health Circle, Nellore for Ongole Municipal Corporation Water Supply Improvements Scheme, aMrUT project consisting of 200 to 450 mm dia DI pipeline, 110 to 315 mm dia HDPE pipeline, 1200 mm dia MS Pipeline and 500 mm dia BWSC pipeline of the value of Rs 12,256.62 Lakhs in Andhra Pradesh.

29. Municipal Corporation, Bhilai for Water Supply Scheme to Bhilai for Distribution Network for Bhilai Municipal Corporation consisting of 100 to 900 mm dia DI K7 Pipes for 447.66 Km of the value of Rs 11,748.34 Lakhs in Chhattisgarh.

30. Municipal Corporation Raipur, Chhatisgarh for Augmentation of Raipur Water Supply Scheme Phase-II Package-IV consisting of 100 to 600 mm dia DI K7 pipes for 303.66 km and 200 to 500 mm dia DI K9 pipes for 10.31 km including allied civil works and 23,758 Nos. House Service Connections of the value of Rs 11,369.84 Lakhs in Chhatisgarh.

31. J.C. Nagi Reddy Drinking Water Supply Scheme in Ananthapuramu District (Phase-IV) in Andhra Pradesh consisting of 350, 800 & 900 mm dia BwSc pipes of the value of Rs 11,335.89 Lakhs for Rural Water Supply & Sanitation Department in Andhra Pradesh.

32. Chilhewadi Pipeline project of PCCP pipeline of 900-1500 mm dia for 28.11 Km and BWSC Pipeline of 350-800 mm dia for 9.14 km including 1500 mm dia MS Pipeline for crossing river and nallah of the value of Rs 11,004.49 Lakhs for Maharashtra Krishna Valley Development Corporation, Maharashtra.

33. The PHED, Region Alwar, Rajasthan, for Urban Water Supply Scheme Alwar and Bhiwadi Dist, Alwar consisting of DI K7 pipes and HDPE Pipes including 12 Nos OHSR, O5 Nos CWRS, 09 Nos Pump Rooms 61 Nos Tube Wells SCADA etc. of the value of Rs 10,561.75 Lakhs.

34. Kherva-Visnagar LIS project of Gujarat Irrigation Department in Gujarat for the work of Engineering, Procurement and Construction (EPC) Contract for Lift Irrigation M.S. pipeline project for transmission of 100 cusecs of water from Sujalam Sufalam Spreading Canal (kherva to Singhoda Pomd (Visnagar) consisting of 711 to 1520 mm dia MS pipes and 315 mm dia HDPE pipes including pump house and other civil works of the value of Rs 9,794.04 Lakhs in Gujarat.

35. Municipal Corporation Bilaspur, Chhattisgarh for Bilaspur Water Supply Scheme part-II consisting of 100 to 500 dia DI K7 pipes including 56,251 Nos. House Service connection of the value of Rs 9,664.46 Lakhs in Chhattisgarh.

36. S4B for manufacture, supply, laying, jointing & testing of RCC NP3 class pipes from 400 to 1400 mm dia for 19,380.50 Mtrs, DWC SN8 Pipes of 450 mm dia and 600 mm dia for length of 2,319.50 Mtrs and 586 mtrs length of 900 to 1800 mm dia MS pipes of the value of Rs 9,635.09 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

37. S4D for manufacture, supply, laying, jointing & testing of RCC NP3 class pipes from 900 to 1800 mm dia for 12,415 Mtrs and MS Casing Pipes of 1800 mm, 2000 mm and 2200 mm dia for length of 220 Mtrs for Trenchless works of the value of Rs 8,704.91 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

38. Gujarat Water Supply Sewerage Board, Dahod, Gujarat for the work of Designing, Constructing, Testing and Commissioning of Intake well cum pump house with approach bridge including all allied works,Water Treatment Plant(WTP), Reinforced Cement Concrete Underground Sumps/ HGLR, Reinforced Cement Concrete Elevated Storage Reservoirs, Staff Quarters, Pump House, Compound wall, Approach Road, Providing, Lowering, Laying, Jointing, Testing and Commissioning of Ductile Iron pipes, unplasticised Polyvinyl Chloride pipes for Filtered Water Mains including Supply, Installation, Testing and Commissioning (SITC) of Pumping Machinery and all allied works for Narmada River Basin for Package-6 of the value of Rs 7,921.46 Lakhs in Gujarat.

39. Irrigation Project Division, Nagpur for the work of construction of M. S. Feeder Pipeline from Kochi Barrage to Pench RBC (28.86 Kms), Head Regulator, Delivery Chamber, Reconstruction of Road and allied works of Kanhan River Project (Kochi Barrage) consisting of 2000 mm dia M S Pipes for 14,390 mtrs of the value of Rs 7,783.97 Lakhs in Maharashtra.

40. Asolamendha Project Renovation Division No.1, Mul, Dist. Nagpur for creation of Irrigation Potential 4551.34 Ha. By Providing Irrigation facilities by Design and Construction of Pipe Distribution System on Dighori Branch Canal on Asolamendha Main Canal of Gosikhurd consisting of 700 to 1000 mm dia PCCP Pipes for 13.63 kms, 350 to 600 mm dia DI K-7 pipes for 24.48 kms and 63 to 315 mm dia PVC pipes for 507.43 kms of the value of Rs 7,273.92 Lakhs in Maharashtra.

41. Asolamendha Project Renovation Division No.1, Mul, Dist. Nagpur for creation of Irrigation Potential 9219 Ha. by providing irrigation facility to CCA 7348 Ha.by Construction of Earth Work, Structure and Lining in Km. 1 to Km. 3 and Pipe Distribution Network in Km. 3 to Km. 16.32,Dewada Sub Branch and Network in Km. 1 to 16.32 of Gowardhan Branch on Asolamendha Project consisting of 63 to 315 mm dia - PVC Pipes - 483030 mtrs, 350 to 600 mm dia D.I.K-7 Pipes- 27,537 mtrs, 700 to 1700 mm dia PCCP Pipes- 22,592 mtrs, 2000 mm dia-1704 mtrs & 2300 mm dia - 2875 Rmt M.S.Pipes of the value of Rs 7,119.94 Lakhs in Maharashtra.

42. Buldhana Water Supply Scheme for RCC Design, Construction, Commissioning and Trial Run for Buldhana & 4 Village Water Supply Scheme. The Project comprises of PCC pipeline of 600 to 800 mm dia for 27.18 km of the value of Rs 6,923.29 Lakhs for Maharashtra Jeevan Pradhikaran, Maharashtra.

43. Asolamendha Project Renovation Division Saoli for construction of pipe distribution network on Kapsi sub branch of Asolamendha Project consisting of 63 mm to 315 mm dia PVC pipes of 367.51 Kms, 350 to 600 mm dia DI K-7 pipes of 33.44 kms and 700 to 1200 mm dia PCCP pipes of 3.29 kms and allied civil works of the value of Rs 6,085.83 Lakhs in Maharashtra.

44. Gosikhurd Left Bank Canal Division, Wahi (Pauni), Dist. Bhandara for the work of Execution of Pauni Lift Irrigation Scheme consisting of 600 to 1400 mm dia PCC pipes for 15.735 kms, 63 to 315 mm dia PVC pipes for 59.024 kms and 350 to 600 mm dia DI Pipes for 9.63 kms and Construction of Pump House, Delivery Chambers, etc. along with allied works of the value of Rs 5,998.51 Lakhs in Maharashtra.

45. Municipal Council, Mandsaur, Madhya Pradesh, for Water Supply Scheme to Mandsaur consisting of DI and HDPE pipes including Intake Well of the value of Rs 5,545.53 Lakhs.

46. M/s Koya & Company Construction Limited for Providing Drinking Water and Irrigation Facilities to 68 tanks in the upland areas of Kurnool District from Left Side to HNSS main Canal - Phase-I along with allied civil works of the value of Rs 5,535.04 Lakhs in Andhra Pradesh.

47. Municipal Corporation, Tirupati Municipal Corporation under AMRUT Scheme for providing Sewerage Network and Sewerage House Service Connections, Construction of 500 KLD consisting of DWC & RCC pipelines including civil work of the value of Rs 5,297.47 Lakhs in Andhra Pradesh.

(B) Bar Wrapped Steel Cylinder (BWSC) Pipes/Prestressed Concrete Cylinder Pipes (PCCP)/ Prestressed Concrete Pipes (PSC):

The BWSC and PCCP pipes introduced by the Company as an alternative pipe materials to M.S. and D.I. pipes have become popular amongst various Government authorities. The Company has undertaken / is undertaking several projects involving BWSC & PCCP pipes. To meet the demand of these pipes, the Company had specially set up manufacturing plants at Choutuppal in Telangana, Chilamathur in Andhra Pradesh, Dhule and Walwa in Maharashtra. In addition to the above, the Company has also created facilities to manufacture these pipes in its existing factories at Miraj, Rajkot, Kanhan, Patancheru, Yelhanka, Thanjavur, Kekri, Sikar, Karari and Kovvur to cater to the local demands. During the year under review, these plants produced 59.72 Kms of BWSC pipes valued at Rs 1,929.03 Lakhs, 30.45 Kms of PCCP Pipes valued at Rs 3,397.05 Lakhs and 60.07 Kms of PSC Pipes valued at Rs 2,283.47 Lakhs.

During the year the Company has received orders worth Rs 1,991.80 Lakhs for BWSC pipes, orders worth Rs 1,558.47 Lakhs for PSC pipes and orders worth Rs 5,864.41 Lakhs for PCCP pipes along with other civil works. Due to COVID - 19 Pandemic and its effect on less order intake and lockdown restrictions, most of plants have worked at much less capacity during the year under review.

(C) Railway Sleepers:

During the year the Company has received work orders of Rs 959.53 Lakhs and the Company has manufactured 1,44,960 sleepers amounting to Rs 3,059.65 Lakhs against the order(s) received from Ministry of Railways, Railway Board, New Delhi.

4. OUTLOOK:

During the last decade, Urban area limits are spreading wider and wider to peripheral areas, but at the same time, the basic amenities like Water Supply, Drainage, etc are not keeping pace with the requirement of more and more urbanization. Apart from the above, most of the rural areas in India fall short of access to drinking water.

Central Government, State Governments and local bodies are making best efforts to supply safe drinking water. Hence, number of water supply schemes are under anvil.

Har Ghar Jal (Water to Every Household) is a Scheme announced in the Union Budget 2019 by the Government of India with the aim to provide tap water to every rural household by the year 2024 at a cost of Rs 5 Lakhs Crore during next 5 years.

To augment agricultural output, Lift Irrigation Schemes (LIS) are undertaken by various State Governments. Hence, number of LIS are under anvil.

Further to make cities and rural areas under more hygienic conditions and endeavour towards Swachha Bharat number of sewerage disposals and drainage schemes are also coming up.

Due to Covid-19 pandemic in the country and multiple lock-downs there are challenges and concern on short term outlook for the Company. In the wake of pandemic the Central Government and State Governments had taken number of initiatives on the part of the Company. It has adopted work from home policy for its employees for their safety and is encouraging vaccination by its employees. Further the Company has taken step for cutting costs and conserving the funds in this uncertain times.

Barring the above factors, the long term outlook for the Company in water supply, irrigation, sewerage and drainage segments is encouraging and good. The Company will keep a close watch on the evolving scenarios and will prepare itself for adapting to the changing environment.

5. RISKS & CONCERNS:

The Companys activities and prospects largely depend on the implementation of various water supply related projects undertaken by various States / Central Government Agencies. The Company is doing business with various State Governments and it depends upon their policy on approval of finance and allocation of funds as well as their ability to raise funds to undertake such water supply projects amongst various infrastructure related projects being implemented by them. Adverse changes and lack of funds delays the work resulting in higher cost and can affect the business prospects of the industry and the Company. Severe competition from the manufacturers of alternative pipes like Ductile Iron Pipes, PVC Pipes, HDPE Pipes and Spirally Welded Steel Pipes can affect the Companys prospects.

In first quarter of the year under review, due to COVID-19 pandemic, labourers migrated. This resulted in stoppage of work, also created shortage in availability of raw materials.

Earlier China was major exporter of Steel to entire world but after COVID-19 pandemic they instead started importing steel and iron ore.

Now, Indian steel manufacturers are catering to demand of steel across the world. They are getting better realizations in export. In the 2nd half of the year under review, there was tremendous shortage of steel products in domestic market resulting in huge rise of prices of HR Coils by 50%, Thermo Mechanical Treated Bars and Wire products by 40%. The prices of bought out products like HDPE & PVC Resins have also gone up by 40% & 80% respectively. Cement prices have gone up by 60%.

Overall, huge rise in prices of key raw materials have resulted in tremendous pressures on margins.

6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has adequate internal control procedures commensurate with its size and nature of business that ensures control over various functions of the organisation. The internal control system provides for guidelines, authorisation and approval procedures.

The internal audit reports, post audit reviews are carried out to ensure compliance with the Companys policies and procedures.

7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

For the year ended 31st March 2021, the revenue from operations of the Company was Rs 1,24,139.63 Lakhs as compared to previous year revenue from operations of Rs 1,62,362.23 Lakhs.

The profit before tax was Rs 5,697.65 Lakhs as against Rs 10,035.93 Lakhs achieved last year. The order book position was Rs 4519.44 crores as on 31 May, 2021 as compared to Rs 5,007.79 crores as on 20th June, 2020.

8. DETAILS OF SIGNIFICANT CHANGES OF 25% OR MORE AS COMPARED TO THE PREVIOUS FINANCIAL YEAR 2019-20 IN FOLLOWING KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

There are no significant changes of 25% or more in key financial ratios as compared to the previous financial year except the following.

Particulars 2020-21 2019-20 Change %
Net Profit Margin Ratio * 3.38 4.52 -25%
Interest Coverage Ratio * 1.84 2.47 -26%

9. DETAILS OF ANY CHANGE IN THE RETURN ON NET WORTH AS COMPARED TO THE PREVIOUS FINANCIAL YEAR 2019-20 ALONG WITH A DETAILED EXPLANATION THEREOF:

Particulars 2020-21 2019-20 Change %
Return on Net worth * 6.97 12.91 -46%

* The drop in the ratio is mainly due to reduction in revenue from operations on account of adverse impact of COVID-19 pandemic and nationwide lockdown, thereby reduction in profitability during the year. This is applicable to all ratios mentioned in 8 and 9 above.

10. HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company has total strength of 1478 permanent employees as on 31st March, 2021 working at various locations at Factories / Project offices / Head Office and Research & Development Division.

During the financial year 2020-21 the industrial relations with the workmen working at various units of the Company were by and large peaceful and normal. In India, Covid-19 pandemic started spreading from March 2020. The Company had circulated notices with the information related to this pandemic disease and precautionary measures to be taken at workplaces. The Company has made all the necessary arrangements such as providing masks to the employees, sanitize all the workplaces, measuring the temperature at the time of reporting for work at factory gate and at office entrance, arrangement of washing hands with soap, etc. Due to outbreak of Covid-19 pandemic in the country, the Company took all the precautionary measures. During the complete National lockdown, the Companys factories, project offices and other Offices were temporarily closed and the Company paid wages/salaries to the employees during this period. The Company has adopted work from home policy for employees working at Head office and other offices and R & D division.

During the year under review, the Company had organized Training programmes at Miraj and Walwa factories in Maharashtra and also at Project offices at Jaipur, Raipur and Bhopal on safety measures to be taken at workplaces while on job. The Company also apprised the new recruits about the Companys policies and procedures and how to attend the work at project sites by following ISO standard and the safety, precautionary measures to be taken for themselves as well as the employees who are working with them.

11. CAUTIONARY STATEMENT:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a schedule of implementation of various water supply related projects undertaken by various States / Central Government Agencies, significant changes in political and economic environment in India, exchange rate fluctuations, prices and availability of key raw materials like steel and cement, tax laws, litigations, labour relations and interest costs, etc.

For and on behalf of the Board of Directors,
Rajas R. Doshi
Chairman & Managing Director
Place : Mumbai
Dated : 12th June, 2021