APR Constructions Limited - Saffron Capital

SECTION IV – ABOUT OUR COMPANY
INDUSTRY OVERVIEW
The information in this section is derived from various government and other public sources. Neither we nor any
other person connected with the Issue have verified this information. Industry sources and publications generally
state that the information contained therein has been obtained from sources generally believed to be reliable, but that
their accuracy, completeness and underlying assumptions are not guaranteed and their reliability cannot be assured
and, accordingly, investment decisions should not be based on such information. Industry sources and publications
are also prepared based on information and estimates as of specific dates and may no longer be current. The data
may have been re-classified by us for the purpose of presentation. The data used in this section has been sourced from
Press Information Bureau; Planning Commission; Annual Report, Minsitry of Water Resources; Union Budget;
NHAI; Ministry of Road Transport & Highways; Ministry of Railways; RBI and various government portals, We have
also relied on information from CRISIL Research report titled „Indian Infrastructure Report, November 2009‟.
CRISIL limited has used due care and caution in preparing this report. Information has been obtained by CRISIL
from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or
completeness of any information and is not responsible for any errors or omissions or for the results obtained from
the use of such information. No part of this report may be published/ reproduced in any form without CRISIL‟s prior
written approval. CRISIL is not liable for investment decisions which may be based on the views expressed in this
report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL‟s
Rating Division, which may, in its regular operations, obtain information of a confidential nature that is not available
to CRISIL Research.
Infrastructure Sector Overview
Infrastructure development is a key determinant of economic growth. Over the last decade and a half, there has been a
considerable growth in the pace of investments in the infrastructure sector. However, it has been unable to meet the
demands of the growing economy. For a developing country, economic progress has to be preceded and also
accompanied by higher spend on infrastructure. As an economy matures, it enters into the infrastructure maintenance
mode, but in the early stages of economic development (where India currently is); infrastructure has to be expanded at
a faster pace to meet the economy‟s growing needs.
The Indian economy grew at an unprecedented rate of 8.8 per cent per annum between 2003-04 and 2007-08.
However, the growth slowed down to 6.7 per cent in 2008-09 as the global financial crisis hit the Indian economy, in
the form of contraction in international trade and reversal of investment flows. Since October 2008, the economy has
received significant monetary and fiscal stimulus needed to arrest and revive its growth prospects. As a result, the
economy posted a growth rate of 7.4 per cent in 2009-10.
The availability and the quality of the available infrastructure significantly impact the effective functioning of the
economy. The extent and effectiveness of a country‟s infrastructure is indicated by the Global Competitiveness Index
2009-10, which ranks Indian Infrastructure development at 76 among 133 countries. India ranks well below all other
BRIC nations -- China at 46, Brazil at 74 and Russian Federation at 71. The report also states inadequate supply of
infrastructure as the most constraining factor to carrying out business in India. Inadequate infrastructure not only
affects the efficiency of domestic industries, but also foreign trade, and therefore investments.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
76