APR Constructions Limited - Saffron Capital

Diverse Order Book
As on February 28, 2011 the value of our Order Book was `1,41,619.88, Lakhs. The Order Book is diversified across
segments and geographical location. We have been adding orders consistently to our Order Book with a growth of
48.05% CAGR over the period of last five financial years till March 31, 2010.
Continuous growth in our bid capacity & pre – qualification capability
The growth in our business is based on our capacity to bid and our ability to undertake projects of larger sizes.
Qualification is based on three factors viz., past track record, technical aspects and financial parameters. Prequalification
criteria differ from project to project. We have been in business for over two decades now and have
executed a number of projects in different segments. Our track record of over twenty five years with a number of
completed ongoing projects enables us to meet customers‟ prequalification requirement either independently or in
association with joint-venture partners.
Formation of Joint Ventures with International and Indian players to jointly bid & execute projects
We believe that our ability to identify, develop and forge strategic alliances and partnerships with International and
Indian players is a significant strength of ours. These alliances and partnerships allow us to exploit technologies and
expertise developed by our partners. We believe that such alliances and partnerships allow us to leverage the
combination of our partners‟ technologies with our project management, engineering and construction capabilities as
well as our knowledge of the market and customers in order to provide effective solutions for clients. Our Company
has existing JV‟s with International and Indian players for bidding and execution of projects. Our Company‟s
International JV partners are M/s China Railway Shisiju Group Corporation & M/s Jiangsu Provincial Transportation
Engineering Group Co. Limited (JTEGC) and Domestic JV partners are M/s V. Narayana Reddy; M/s M. Venkata
Rao Infra Projects Private Limited; M/s PVR Projects Limited & M/s VNR Infrastructure Limited. For details of the
Memorandum of Understanding / Joint Venture agreements, please see the section titled “Joint Ventures” on page 119
of this DRHP.
Business Strategy
Expand our business by bidding for higher value projects
With the growth in investments and the government‟s emphasis on developing infrastructure at a faster pace through
public private partnership, we believe that a considerable number of large infrastructure projects will be structured on
a BOT or PPP basis. We intend to take advantage of these opportunities. Our Company has selectively started bidding
for PPP projects by evaluating the technical and commercial feasibility of such projects.
Our Company has been executing Irrigation segment projects for more than two decades. We believe that we have
developed expertise into building Dams / Spillways, Canals and Tunnels. Our Company is also present in Railways
and Industrial segment. We intend to further strengthen our position by bidding for higher value projects, which will
help us in improving margins.
Creation of Revenue Generating asset base
We intend to build a strong asset base with constant revenue flows and high value potential. As on November 30,
2010 our Company‟s investment into fixed assets has been ` 4377.42 Lakhs (net of accumulated depreciation). Our
company has been investing into equipment as per business requirements. With diversification and increased order
book position we had expanded our equipment bank. With the growth in the order book, we would require a number
of capital equipment to pre-qualify and bid for and implement larger and more technically complex projects. The
acquisition of such equipment and addition of the same to the existing equipment base will reduce the dependability
on third party equipment operators and thereby enabling our Company to achieve higher operating margins. Our
Company proposes to raise ` 4198.71 Lakhs for buying capital equipment as stated in the section titled “Objects of
the Issue” beginning on page 58 of this DRHP.
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