JITF Infra Logistics Ltd Management Discussions.

Industry Structure and Developments


Global growth peaked at around 4% in 2017. In the first half of 2018, it remained strong at 3.8%, but declined to 3.2% in the later half. After a two years long upswing in cyclical growth, global economic expansion softened in the second half of 2018, majorly due to the escalation of trade tensions and tariff hikes between USA and China. This has led to a decline in business confidence, a tightening of financial conditions, and higher policy uncertainty across many economies.

In other emerging market economies, growth was moderated due to other country-specific factors which were results of worsening global financial market sentiment in the second half of 2018. While 2019 started out on a weak footing, a pickup is expected in the second half of the year.

The Indian Economy started FY 2018-19 on a strong foot, recording a growth of 8.2% in the first quarter, supported by domestic resilience. However, in the following quarter, growth eased to 7.3% due to rising volatility on the global stage. The rupee took a hit due to crude prices. Despite all these factors, India continues to be the fastest growing economy and is expected to hold this position for the coming few years.

India moved up by 23 places to the 77th position in the World Banks Ease of Doing Business Index, 2018. The Make in India movement actively helped manufacturing as a percentile of GDP to grow to over 17%. The GST collection will soon achieve its aim of average monthly collection of Rs. 1 lakh crore per year.

As India has emerged as the fastest growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. India is also focusing on renewable sources to generate energy. It is planning to achieve 40 per cent of its energy from non-fossil sources by 2030 which is currently 30 per cent and also have plans to Increase its renewable energy capacity from to 175 GW by 2022.


About us

Your Companys business is to carry out infrastructure businesses through its subsidiaries and step down subsidiaries. The infrastructure businesses include (a) Waste to power which is being carried out by various SPVs under JITF Urban Infrastructure Limited; (b) Railway Rolling Stock Manufacturing business being carried out by Jindal Rail Infrastructure Limited and (c) Water and waste water EPC business being carried out by JWIL Infra Limited.

MAJOR SUBSIDIARIES & THEIR OPERATIONS: The Company has interest in various infrastructure business through its subsidiaries in India and abroad. JITF Infralogistics Limited is the holding company for infrastructure business which is consisting of water infrastructure business, municipal solid waste processing and power generation (infrastructure) business, and rail wagon manufacturing (fabrication) business.

JWIL Infra Limited (JWIL)

JWIL continues to operate in the water sector of India. The on-going projects consists of intake well, water treatment plant, overhead tanks and distribution networks. JWIL has executed projects for more than Rs 2000 Crores and has a pan India presence. During the year, JWIL also bagged new water supply projects worth more than Rs.1600 crores in the state of Rajasthan, Jharkhand and M.P.

Water sector in India offers a huge potential for EPC jobs. On the one hand, growing urbanization and industrialization needs additionalwater infrastructure and on the other hand, Government is focused on providing clean drinking water to each and every household in Urban and semi-urban areas. As per Niti Aayogs report titled, Composite Water Management Index, released in June 2018, the country is suffering from the worst water crisis in its history and millions of lives and livelihoods are under threat which is only going to get worse. By 2030, the countrys water demand is projected to double up against the available supply, implying severe water scarcity for hundreds of millions of people and an eventual 6% loss in the countrys GDP.

India has made substantial investment and efforts in ensuring safe drinking water and sanitation to all since independence. Since the beginning of the Sixth Five-Year Plan (1980-85) and the launch of the International Drinking Water Supply and Sanitation Decade, India has substantially Increased sector investments and water and sanitation is being accorded high priority in the Indian national budget. The last few years have also seen a noticeable rise in the investment made on drinking water through NRDWP, with a total of Rs. 17,184 crores invested in the last three years alone. Additionally, States have been investing their own funds in the sector as well. India is committed to achieving the goals of ensuring drinking water for all in the coming years. With increasing focus on cleaning up our rivers, there is lot of focus from the Government to install Sewage Treatment Plants (STPs) to treat the urban waste. There is also a lot of focus on installing Common Effluent Treatment Plants (CETPs) to treat effluent discharged by cluster of industries. JWIL has gained considerable experience in building and operating CETP at Sitarganj and this experience can be channelized to make further inroads in this sector.

With new EPC projects for water supply in the portfolio bag worth more than Rs.1600 crores with highly experienced team (Design, Execution & Operations) in place and physical execution capability built through presence across key locations in water deficient states like Rajasthan and MP, the management foresee a very healthy outlook for future growth of JWIL.

JITF Urban Infrastructure Limited (JUIL)

JUIL is engaged in municipal solid waste (MSW) management & waste to energy (WTE) business. The environmental benefits of waste to energy, as an alternative to disposing of waste in landfills, are clear and compelling. Waste to energy generates clean, reliable energy from a renewable fuel source, thus reducing dependence on fossil fuels, the combustion of which is a major contributor to green-house gas emissions.

The growth of the waste management market surge in population and Increased urbanization which has led to rise in the overall waste volume, through-out the country. Moreover, Increase in industrialization has also led to the development of chemical, oil & gas, automobile, and medical industries, which generate enormous amount of waste and cause pollution. These factors are expected to significantly contribute toward the growth of the waste management market. However, high cost of procuring and operating waste management solutions is expected to hamper the market growth. Conversely, Increase in awareness among public and government agencies about these solutions and upsurge in need to develop waste-to-energy solutions are expected to provide lucrative growth opportunities for market players during the coming years.

According to Census 2011, there are 468 Class I cities (cities with population in excess of 1 lakh) accounting for 70% of the total urban population. These cities put together account for over 62% of the totalMSW generation in the country. Major proportion of waste generated in India falls under bio-degradable category followed by inerts and combustibles. These untapped waste has a potentialof generating 439 MW of power from 32,890 TPD of combustible wastes, 72 MW of electricity from biogas and 5.4 million metric tons of compost annually to support agriculture. In WTE sector India has current potential of more than 2700 MW.

Increased environmental awareness regarding renewable waste management systems among people and rise in CO2 emissions, globally are expected to generate growth opportunities for the waste management market. Ministry of Urban Development, nodal agency for Swachh Bharat Mission also recognized WTE projects as a viable option.

Based on above, the management believes in healthy outlook for future growth of JUIL.

Jindal Rail Infrastructure Limited

The Indian Railways is the fourth largest network in the world, with a route length of 67,368 km and total track length of 121,407 kilometres (2nd largest in the World) as on March 2017. It is also the largest passenger and fourth largest freight transporting railway system globally. In FY17, 13,329 passenger trains carried over 22.24 million passengers daily, while the freight transported was 1.1 billion tonnes.

The Government of India has recognized the need for additional investment in rail infrastructure and scaled up investment by almost three times, from INR 53,989 crores in 2013-14 to INR 1.47 lakh crores in 2018-19 (Budgeted Expenditure). The government is focused on making investor-friendly policies. It has moved quickly to enable Foreign Direct Investment (FDI) in railways to improve infrastructure for freight and high-speed trains. Due to favourable policy measures, both passenger and freight traffic is expected to grow rapidly over the medium to long term. At present, several domestic and foreign companies are looking to invest in Indian rail projects.

Demand for wagons by Indian Railways is expected to remain strong in the medium term due to Eastern and Western Freight Corridors nearing completion and the other ongoing capacity augmentation and port connectivity projects. Ministry of Railways has recently opened up Private Sector investments in General Purpose Wagons and there is a huge demand for BOXNHL type wagons for transportation of Coal, Iron Ore etc. Besides, there is a rising demand for Special Purpose, High Capacity Wagons from private sector for Coil Wagons, Automobile Wagons, Bulk Cement & Fly ash, Container Flat wagons, Flat Wagons for Long Welded Rails and Finished Steel Products. Also, for ongoing dedicated freight corridor projects, the requirement would be for high axle load, high capacity wagons with premium on quality.

JRIL is focussed on innovation and designing New Wagons with a view to provide end-to-end Design and Application Engineering solutions for meeting Clients complete Railtransportation needs. The management foresees a very healthy business outlook for future growth of JRIL.


The Company is engaged in the Infrastructure Business having operating companies in various verticals comprising of Water, Environment, Solid Waste Management and Rail Infrastructure. We have emerged as a leading operator in the field of urban waste management sector based on the strengths and advantages that we enjoy in the market place. With the diversified business portfolio, it has managed to mitigate the business risk to its optimum low level. Over the period, the Company has executed projects awarded by various Private Sector, State Government, Government Undertaking and Public Sector Undertakings. It has always been the endeavor to plan and execute the projects undertaken in the most efficient and professional manner and the Companys Management and its workforce always strive towards achieving this goal. In the present scenario, the management is optimistic that with the strong leadership at the Centre with a vision of Vibrant India, the overall future outlook of the infrastructure sector in India looks bright and Company expects more opportunities to come its way to maintain healthy order book in the coming years and is confident that the financialperformance of the Company shall continue to improve.

We believe we are uniquely placed to compete in the market place and deliver a sustainably commendable performance while keeping risks pertaining to market concentration and industry dynamics in check.


Every business carried out by any Company are full of challenges and risk and the success of any business always depend upon the ability of the Company how it faces the challenges and survive in the highly competitive market. Your Company is developing various systems and strategies to face the challenges in the competitive market. The challenges are not from the competitors but also from the domestic and global economic scenario. Your Company is taking all precautions to offset the associated risks.


Risk Management is a process of identifying the risks, analysis of its effect on the business operations of the Company, measures to be taken to mitigate such risks. As a business enterprise the Company is exposed to various risk some of which are identifiable and can be mitigated through defined Internal Control Mechanism. However there are certain risks which cannot be predicated and are unascertainable at a given point of time. These can be mitigated through the experience inherited by the Company and its management over the period. The Company has set up an elaborate system for identifying and mitigating the risk associated with the nature of businesses undertaken by the Company which may threaten the existence of the Company. At senior management levelroles and responsibilities of all the employees are well defined to facilitate timely identification and mitigation & management of the risks. We work in an environment where risks to the business and operations are evaluated regularly and suitable necessary steps are initiated by the Management to mitigate and alleviate such risks to the best possible way.


During the year, Company achieved Gross Income of र 265.16 lac against र 240.98 lac achieved during the previous year. The net profit for the year declined to र 19.25 lacs as compared to र 27.27 lacs in the previous year. As at 31st March 2019, the Net worth of the Company Increased to र 31,951.73 lacs from र 31,932.48 lacs as at 31st March 2018.


Your Company has put in place strong internal control systems in line with globally accepted practices. The processes adopted by the Company are best in class and commensurate with the size and nature of operations. All major business activities have been well defined and mapped into the ERP system and the controls are continuously reviewed and strengthened as per the business need.

The Company has adopted risk based framework which is intended for proper mitigation of risks. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuous basis.

Our Internal Audit department comprises of in-house Internal Auditors who are professionally qualified. They routinely and regularly carry out the internal audits to review the adequacy and compliance to the laid down procedures to manage key risks.

The Audit Committee of the Board regularly reviews the adequacy & effectiveness of internalaudit environment and implementation of internal audit recommendations including those relating to strengthening of Companys risk management policies & systems.

We follow the highest standards of ethics. There is a functional Whistle Blower policy whereby anyone can report any act which is not in line with the policy, our code of conduct and overall ethics. There is a designated authority in place to monitor reported cases and to oversee redressal.

Your Companys philosophy is of zero tolerance towards all applicable legal non-compliances.


The importance of Human Resource has Increased with the passing year. We continuously emphasize on strengthening employee-employer relationship by formulating effective strategies and improvising functional processes vital to achieve the Organizational goals. Recruitment and retention of human resources is always a challenge in the growing business organizations. The business as of now involves a limited number of professionals, however, with growing business needs, your Company may be required to hire the additional talent pool of requisite experience and qualifications.


The Statement in this Management Discussion and Analysis report, describing the Companys outlook, projections, estimates, expectations or predictions may be "Forward looking Statements" within the meaning of applicable securities laws or regulations. Actual results could differ materially from those expressed or implied.