As India, the world’s fastest growing major economy, races ahead amidst global consolidation for second year in a row, its inadequate and inefficient surface transportation infrastructure is the Achilles heel that can potentially slow down its pace.
Though India has the world’s second largest road network at 5.47 million kms, in terms of Logistics Performance Index (World Bank Analysis 2016), the country still ranks behind at 35th position. Estimates by ASSOCHAM indicates that the country’s logistics cost at 14% of the GDP is significantly higher than that of 8-9% that developed economies attain. A decline to those levels can result in logistics savings to the tune of USD 50 billion.
With ushering in of the GST regime, the requirement to develop an efficient road network that facilitates seamless connectivity along with other modes of transportation for faster, cheaper and more effective logistics network becomes more urgent.
At IRB, we understand the importance and magnitude of this.
With years of experience and engineering expertise, robust financials and engineering team, superior execution skills and contemporary equipment infrastructure, bidding and project management skills, we have partnered various government authorities to undertake various first-of-its-kind surface transport projects. Be it country’s first Built-Operate-Transfer (BOT) project, or the first mega and ultra-mega highway projects, we have been the pioneers in creating high quality surface transport infrastructure that have a proven track record of streamlining freight movement and enhancing traffic.
We have taken forward this legacy by becoming the first in the country to successfully launch and list an Infrastructure Investment Trust. While the unit holders in this trust would benefit
from regular returns, the Company has benefited through deleveraged balance sheet, and monetisation of assets which shall facilitate in taking up more projects.
Backed by our untiring efforts and unwavering focus on strengthening internal competencies and by embracing the ‘B.E.S.T.’ (Bid. Execute. Stabilise. Transfer) approach, we have developed a robust self-sustaining business model. A model that facilitates in building income generating assets; stabilising their operations and then monetising these assets by offering them to the InvIT Trust. A model that is relatively non-cyclical, delivers superior returns, mitigates downside risks, maximises returns to the stakeholders and most importantly provides an avenue to recycle capital in achieving growth for the Company without any more leveraging or dilution of equity capital.
