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1January 30, 2008 For Private Circulation Only - Sebi Registration No : INB 010996539June 19, 2009 For Private Circulation Only - Sebi Registration No : INB 010996539 1

KEC InternationalInitiating Coverage

‘Power’ packed growth ahead...KEC International (KEC) is a global player in the Power Transmission and Distribution(T&D) network. KEC, which recently enjoyed a good inflow of domestic orders primarily fromPower Grid Corporation (PGCIL), is well poised to bag more orders from the domesticmarkets. Further, KEC derives close to 63% of its Revenue from its overseas operationsand is expected to clock good growth in this space as well. Thus, KEC is set on a highgrowth path on the back of healthy Order Book position, stable Margins (registered in spiteof a volatile commodity and currency markets) and diversification into the Railways andTelecom Segments, where the government is set make substantial investments. At Rs373,the stock is trading at 10.2x FY2010E and 7.8x FY2011E Earnings. We Initiate Coverageon the stock with a Buy recommendation and Target Price of Rs477.

Substantial investments in the Power T&D Sector to spur growth of EPC players:The Eleventh Plan has earmarked Rs1,40,000cr and Rs3,09,000cr for the T&D Segments,respectively, which translates into an immense opportunity for the players in the Segmentover the next three years. Further, with Infrastructure remaining the key focus area to achieveeconomic recovery, we expect execution of the power projects to gain momentum over thelast three years of the Plan period which would generate more orders for the T&D players.

Strong Order Book provides good Revenue visibility: KEC's Order Book as ofFY2009 stood at Rs5,163cr or 1.5x its FY2009 Sales. During 4QFY2009, the companyregistered healthy Order inflows of Rs1,500cr; thus, KEC posted a 27% CAGR in its OrderBook over FY2006-09. We expect the company to bag more orders from PGCIL, which hasplans to spend around Rs20,000cr on transmission lines during FY2010-12.

Diversification into Railways and Telecom Sectors a major positive: KEC hasforayed into the Telecom and Railway Sectors. Although these Divisions currently accountfor a mere 6.2% of the company's Total Revenues, future prospects of the Segments arevery bright. Pertinently, KEC is L1 for the Rs5,000cr Telecom order from BSNL to be allottedin the next two months. We believe that if KEC secures this order, the same will nearlydouble its Order Book, and we have not factored the same in our estimates. KEC also plansto enter tracking, signaling and platform construction works in the Railway Segment.

V Srinivasan

Tel: 022 - 4040 3800 Ext: 330

E-mail: [email protected]

Source: Company, Angel Research

Key Financials (Standalone)Y/E March (Rs cr) FY2008 FY2009 FY2010E FY2011E

Net Sales 2,814 3,427 3,978 4,666

% chg 37.9 21.8 16.1 17.3

Net Profit 172.2 116.3 181.2 235.2

% chg 64.6 (32.5) 55.8 29.8

OPM (%) 12.6 8.8 10.2 10.7

EPS (Rs) 34.9 23.6 36.7 47.7

P/E (x) 10.7 15.8 10.2 7.8

P/BV (x) 3.7 3.3 2.6 2.0

RoE (%) 34.8 20.8 25.5 25.6

RoCE (%) 29.7 22.9 26.7 27.9

EV/Sales (x) 0.8 0.7 0.6 0.5

EV/EBITDA (x) 6.7 7.7 5.8 4.7

Shareholding Pattern (%)

Promoters 41.8

MF / Banks / Indian FIs 40.9

FII / NRIs / OCBs 5.3

Indian Public / Others 12.0

BSE Code 532714

NSE Code KEC

Reuters Code KECL.BO

Bloomberg Code KECI@IN

BSE Sensex 14,522

Nifty 4,314

Abs. 3 m 1yr 3yr

Sensex (%) 61.3 (3.8) 45.3

KEC (%) 169.4 (25.2) 28.6

Stock Info

Sector Transmission Towers

Market Cap (Rs cr) 1,841

Beta 0.7

52 Week High / Low 510 / 109

Avg Daily Volume 31801

Face Value (Rs) 10

BUYPrice Rs373

Target Price Rs477

Investment Period 12 months

Girish Solanki

Tel: 022 - 4040 3800 Ext: 319

E-mail: [email protected]


KEC International

Transmission Towers

Company Background

KEC International (KEC) a part of the US $3bn RPG Group is primarily involved in the executionof EPC projects in the Power Transmission and Distribution (T&D) space. The company is aglobal player in the field of T&D network, having presence in more than 40 countries acrossSouth Asia, Middle East Africa and Central Asia. KEC's overall business consists of twogeographical segments, viz. South Asian and International. Besides, the company has fourfunctional divisions, namely Transmission, Distribution, Railways and Telecom. On theTransmission front, KEC's portfolio of services includes designing, engineering and testing oftransmission towers. In Distribution, the company has executed various Sub-station projectsboth in the domestic as well as international markets including a plethora of activities fromdesigning to installation of the Sub-stations. The company's manufacturing and tower testingfacilities are situated at multiple locations in India. The company has a good track record ofsuccessfully executing projects in difficult terrains around the world. In fact, KEC is one of thefew players in India capable of constructing 1,200kv D/C test lines.

KEC in alliance with POWER Engineers, Inc, USA has formed a joint venture (JV), KEC PowerIndia Pvt. Ltd (KPIL), which undertakes complete designing of Sub-stations for both thedomestic and international markets. KPIL is staffed to provide detailed design engineering forcomplete green-field Sub-stations or upgrades to existing Sub-stations. Apart from the T&Dspace, KEC is also present in the Railways and Telecom Sectors. The company, which has astrong presence in railway electrification, intends to be a total solution provider in the Rail EPCbusiness. KEC, which entered the Telecom space following merger of National InformationTechnologies (NITIE), is primarily involved in the manufacture of telecom towers. The company'sclientele in this segment includes names such as BSNL and GTL. Apart from the supply anderection of telecom towers, the company is also in the Telecom Asset Management business,wherein it collects monthly rentals from various telecom players for the sites that have beenleased to them. These sites (around 376 numbers) were allotted to KEC as a part of the USOfund and are majorly located in the states of Chhattisgarh, Mizoram and Meghalaya.


Exhibit 1: Segment-wise Revenue break-up, as % of Sales (FY2009)

(Rs1,849cr, 54%)

(Rs840cr, 25%)

(Rs526cr, 15%)

(Rs182cr, 5%) (Rs30cr, 1%)

Transmission - International business Transmission - South Asia business

Distribution business Telecom business Railways business

KEC is a global player in thefield of T&D network, havingpresence in more than 40countries across South Asia,Middle East Africa andCentral Asia

Apart from the T&D space,KEC is also present in theRailways and TelecomSectors


KEC International

Transmission Towers

The company currently has three manufacturing facilities located at Jabalpur, Jaipur and Nagpur.These facilities combined are capable of manufacturing 1,51,000MT of towers annually. Thecompany also has an additional 60,000MT of contracted capacity taking its total towermanufacturing capacity to 2,10,000MT per annum. KEC is also involved in tower testing andhas the capability to test towers up to 1,200KV. The company has two tower testing facilitieslocated at Jaipur and Navi Mumbai. It has state-of-the-art design facilities equipped with thelatest software and has completed over 2,214 tower tests till date. During FY2009, the companyincurred capex of Rs104cr towards de-bottlenecking, addition of telecom towercapacity and a new tower testing capacity. The company’s transmission tower manufacturingcapacity expanded by 38,000MT in FY2009. The company is looking at incurring additionalcapex of Rs40-50cr during FY2010 towards de-bottlenecking and strengthening itsexecution capability for big ticket projects.

Industry OverviewThe Power Sector is one of the fastest growing sectors in India and has witnessed considerablegrowth since the time of independence. Going ahead too, the sector is expected to be a keydriver of the country's economic growth. However, the country's demand for power has alwaysoutstripped its supply as the sector has been beset by issues related to generation,transmission & distribution. While very high level of technical and commercial losses and lackof commercial approach in management of utilities has led to unsustainable financialoperations, inadequacies in distribution networks too have had its effect in derailing theinvestment in the sector.

The Electricity Act 2003 was drawn up to consolidate the laws concerning the generation,transmission, distribution and trading of power. The Act aimed at resolving a number of issuesthat hampered growth of the Power Sector. Some of the key provisions of the Act includedgranting of open access of power to customers, unbundling of State Electricity Boards (SEB)and protection of consumer interests. The central government has also framed the NationalElectricity Policy (NEP), which enumerates the guidelines for accelerated development of thePower Sector, providing electricity to all areas and protecting the interests of the consumersand other stakeholders.

The Power Sector is expectedto be a key driver of thecountry's economic growth

Exhibit 2: Tower Testing FacilitiesParticulars Navi Mumbai JaipurTower Width 20mtr x 20mtr 14mtr x 14mtrTower Height 65mtr 46mtrUplift per leg 500MT 175MTOverturning Moment 20,000MT mtr 500MT mtrNo. of Load Points 30 17Load Per point 50MT 25MT


The company has total towermanufacturing capacity of2,10,000MT per annum


KEC International

Transmission Towers

Transmission

The uneven manner in which India's energy resources are distributed, has necessitated theformation of National Power Grid to transmit power from resource rich to deficit states andfacilitate scheduled/unscheduled exchange of power. The Power Ministry proposes to set up anintegrated National Power Grid in the country by FY2012 with an inter-regional power transfercapacity of around 37,700MW. Pertinently, investments in the T&D Segment in the previousFive Year plans have lagged investments in the Generation Segment. This in turn impacted theenergy delivery/supply system and resulted in periodic grid instability, higher AT&C losses andlower electricity intensity. Nonetheless, it may be noted that the Government of India has realisedthat the country must have a sound power Transmission infrastructure to complement the hugeincrease in generation capacity that has been planned for the Eleventh plan. Therefore, thegovernment had chalked out a substantial outlay of Rs4,49,000cr for developing the country'sT&D infrastructure during the Plan period.

The Power Ministry proposesto set up an integratedNational Power Grid in thecountry by FY2012 with aninter-regional power transfercapacity of around 37,700MW

Generation

India's Power Generation capacity currently stands at 1,48,265MW having grown from a mere1,700MW in FY1950. The Eleventh Plan envisages augmenting the country's Power generationcapacity by 78,577MW. However, it may be noted here that actual capacity addition during thefirst two years of the Eleventh Plan period was 12,717MW and fell short of the 27,396MWcapacity addition planned for FY2008-09. There have been execution delays of the Powergeneration projects due to a variety of reasons including issues concerning landacquisition, delay in procurement of equipment and non-availability of fuel.

The Eleventh Planenvisages augmenting thecountry's Power generationcapacity by 78,577MW

Source: CEA, Angel Research

Exhibit 3: Generation Capacity Addition: Target v/s Achievement

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009

Target Achievement % Achieved


KEC International

Transmission Towers

Open Access still a distant dream

Despite six years since the enactment of the Electricity Act, not much has been achieved inrespect to Open Access to consumers. The Act had envisaged a major policy change by way ofOpen Access, which entailed allowing a consumer with electricity requirement of above 1MW tochoose any electricity supplier other than the authorised distribution licensee. A major issuehindering implementation of Open access is the level of cross-subsidy and other chargesapplicable to the Open Access consumers. The concept has also been bogged down by issuessuch as resistance by incumbent licensees who stand to lose on account of migration of bluechip customers, and have hence been opposing the passage of this proposal. The slow progressof Open Access can also be attributed to the scepticism shown by the customers in choosingalternative supplies.

Transmission Tower Industry

Activities of the Transmission Tower industry includes the manufacture of transmission towersand carrying out EPC work related to the installation of the transmission towers, lines andsubstations. The Segment derives its revenues mainly from transmission line projects, ruralelectrification projects and projects under the Accelerated Power Development and ReformProgramme (APDRP) and other central schemes. However, with PGCIL and the different StateElectricity Boards (SEBs) being the major domestic customers of this Segment, the enormouslosses incurred by the SEBs reflected in the past financial performance of the Segment. But,the Segment has registered substantial growth since FY2003 after suffering huge losses duringFY2001-02. The revival of the Segment in FY2003 coincided with the enactment of theElectricity Act 2003, which sought to reform India's Power Sector.

Source: Ministry of Power, Angel Research

Exhibit 4: India's Inter-regional Transmission capacity (MW)

14,100

17,000

19,800

37,700

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY2007 FY2008 FY2009 FY2012E

CAGR of

23.9%

Exhibit 5: Current Status of Open Access (MW)Open Access sought 83,507Open Access provided 23,179Open Access scheme finalised and under issuance 11,127Open Access under process 49,201

Source: Powerline, Angel Research

A major issue hinderingimplementation of Openaccess is the level of cross-subsidy and other chargesapplicable to the Open Accessconsumers

The Segment derives itsrevenues mainly fromtransmission line projects,rural electrification projectsand projects under the APDRPand other central schemes


KEC International

Transmission Towers

Investment Argument

Substantial investment in T&D Sector to spur growth of T&D EPC players

Historically, the Power Transmission Segment in India has not received the attention it deservesdue to successive Planning Commissions focusing primarily on the Power GenerationSegment. Although globally, every Rupee invested in Generation is matched by an equalinvestment in the T&D Segments, in case of India it has been different, with only 50% of thecapex on generation being incurred towards T&D capex. However, in recent times,emphasis is being laid on improving the country's T&D infrastructure due to the realisation thata robust and adequate power Transmission network is essential to complement growth of thePower Generation Segment. In line with this, the Eleventh Plan has earmarked an outlay ofRs1,40,000cr and Rs3,09,000cr for the T&D Segment respectively, out of the proposed totalcapex of Rs10,64,000cr for the entire Power Sector.


Exhibit 6: T&D Segment—Proposed Eleventh Plan Outlay (Rs cr)

Of the T&D Segment outlay, while the Centre is expected to incur capex of Rs75,000cr towardsthe Transmission Segment, balance capex of Rs65,000cr would be incurred by the States.Further, 50% of the total investment in the Transmission Sector would be incurred towardssetting up Transmission Lines, while the balance 50% would be spent on Sub-stations.

615,000309,000

140,000

Generation Distribution Transmission

The Eleventh Plan hasearmarked an outlay ofRs1,40,000cr and Rs3,09,000crfor the T&D Segmentsrespectively, out of theproposed total capex ofRs10,64,000cr for the entirePower Sector


KEC International

Transmission Towers

Exhibit 7: Eleventh Plan—Transmission Capacity TargetsCapacity at the end of Targeted capacity at the

Tenth Plan end of Eleventh PlanTransmission Lines (ckm)765 kV 1,704 7,132HVDC +/- 500 kV 5,872 11,078HVDC 200 kV Monopole 162 162400 kV 75,722 125,000230/220 kV 114,629 150,000Total - Transmission Line capacity (ckm) 198,089 293,372Sub Stations (MW/MVA)HVDC BTB 3,000 3000HVDC Bipole + Monopole 5,200 11200Total- HVDC Terminal Capacity (MW) 8,200 14,200765 kV 2,000 53,000400 kV 92,942 145,000230 / 220 kV 156,497 230,000Total - AC Substation Capacity (MVA) 251,439 428,000

Source: Ministry of Power, Angel Research

Investments in the Distribution Segment are expected to be dominated by the Centre fundedschemes such as Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) and rural electrificationschemes (executed by State governments). Currently, projects to the tune of Rs25,987cr havebeen sanctioned under the RGGVY of which Rs13,566cr has been released by the RuralElectrification Corporation (REC) to the respective states. With the T&D EPC players expectedto bag around 20% of the value of the sanctioned projects, their combined Order Book isexpected to witness an inflow of Rs5,200cr over the next 3-4 years.

Strong Order Book with steady inflow provides high Revenue visibility

KEC has an Order Book of Rs5,163cr, which is 1.5x its FY2009 Revenues. Pertinently, in spiteof the slowdown in inflow of International orders (accounted for 63% of FY2009 Top-line), KECcontinued to bag good amount of orders from the domestic market, resulting in an increase inthe share of domestic orders in it's Total Order Book. Thus, contribution of KEC's domesticOrder Book increased to 50% in FY2009 from 30% in FY2008. During 4QFY2009, the companyregistered domestic Order inflows of Rs1,500cr wherein it received Rs1,026cr worth of ordersfrom PGCIL. KEC also received Rs326cr worth of Distribution orders under the RGGVY Schemeduring the quarter. Notably, KEC's Order Book is dominated by orders from theTransmission Segment, while in terms of geography the company's South Asian Segmentcontributes 50% of its current Order Book. Overall, KEC posted 27% CAGR in its Order Bookover FY2006-09.

Currently, projects to the tuneof Rs25,987cr have beensanctioned under the RGGVY

KEC's Order Book isdominated by orders from theTransmission Segment, whilein terms of geography thecompany's South AsianSegment contributes 50% ofits current Order Book


KEC International

Transmission Towers

Going ahead, we expect the company to register steady inflow of orders and expect thecapacity addition to gather steam over FY2010-12E, these being the last three years ofEleventh Plan period. We expect healthy Order inflow to continue over the next 2-3 years on theback of increased domestic orders from majors like PGCIL and other state utilities.

Continued Orders from PGCIL to drive domestic growth

Going ahead, over FY2009-12E, a significant portion of T&D investment is expected to beincurred in projects targeted to strengthen the national grid and is estimated to constitute closeto 42% of the Rs40,000cr capex to be incurred by PGCIL during the aforesaid period. Further,these projects are expected to witness lesser delays as compared to the Generation-linkedTransmission projects. Regards KEC, owing to its superior execution skills and excellent trackrecord, it is well poised to bag more orders from PGCIL going ahead.


Exhibit 8: Order Book Breakup (%)

76.2

22.90.6 0.3

Transmission Distribution Railway Telecom

50.0

15.0

20.0

14.0 1.0

We expect healthy Orderinflow to continue over thenext 2-3 years

National grid strengtheningprojects that are not prone tomuch delays are estimated toconstitute close to 42% of theRs40,000cr capex to beincurred by PGCIL


Exhibit 9: Growth in Order Book (Rs cr)

4,164

5,163

6,252

7,057

3,978

4,427

5,0675,471

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

FY2008 FY2009 FY2010E FY2011E

Order Book Order Intake

South Asia Middle East Africa Central Asia Australasia


KEC International

Transmission Towers

Overseas Orders to improve despite the ongoing economic slowdown

We expect KEC to bag good amount of international orders despite the ongoing economicslowdown. The Middle East is one of the major markets for KEC accounting for close to 15% ofits overall Revenues. The high scale of infrastructure development activities taking place in thisregion is throwing up more opportunities for players in the Power T&D EPC space. As theeconomies of Middle East are dependent on crude oil exports, crude prices have a major bearingon the budgetary allocation for the infrastructure projects. During 2HFY2009, KEC had facedsome slowdown in Order inflow from these countries because of the substantial fall in the crudeoil prices from historic highs of $147/bbl. However, rebounding of crude oil prices to $70/bbl, hasbrought back some stability to the Middle East economy. Thus, Order inflow from this region isexpected to be robust going ahead. Similarly, demand from the African region (20% of KEC'sFY2009 Revenues) is also expected to be good since the infra projects in this region areprimarily need based and funded by international agencies such as World Bank and AfricanDevelopment Bank, which ensure payment security too.

As per industry sources, the Middle East and African countries are expected to spend morethan $14.5bn and $13.1bn respectively, in the Power T&D Sector over the next five years. In fact,the T&D Segment is expected to account for around 50% of the investments in theElectricity Sector. KEC, a global player in the T&D space, has a strong footing in many of thesecountries and is expected to benefit the most of the emerging opportunities.

The rebounding of crude oilprices to $70/bbl is expectedto result in robust order inflowfrom this region going ahead


North AmericaUSD 66.5 billion

Other EuropeUSD 88 billion

Middle EassUSD 14.5 billion

Central AsiaRussia - USD 22.5 Billion

Baltic Ring - USD 2.1 billionOthers - USD 23 billion

South AmericaUSD 22 billion

South AsiaUSD 26.4 billion

ChinaUSD 76 billion

South East AsiaUSD 16 billion

North AfricaUSD 5.4 billion

ANZUSD 8.6 billion

East AfricaUSD 716 million

Southern AfricaUSD 5.8 billion

Eastern EuropeUSD 19 billion

West AfricaUSD 1.2 billion

North AmericaUSD 66.5 billion

Other EuropeUSD 88 billion

Middle EassUSD 14.5 billion

Central AsiaRussia - USD 22.5 Billion

Baltic Ring - USD 2.1 billionOthers - USD 23 billion

South AmericaUSD 22 billion

South AsiaUSD 26.4 billion

ChinaUSD 76 billion

South East AsiaUSD 16 billion

North AfricaUSD 5.4 billion

ANZUSD 8.6 billion

East AfricaUSD 716 million

Southern AfricaUSD 5.8 billion

Eastern EuropeUSD 19 billion

West AfricaUSD 1.2 billion

Exhibit 10: Opportunities in International Market


KEC International

Transmission Towers

Diversification into Railway and Telecom Sectors a major positive

KEC has also forayed into the Telecom and Railway Sectors. Although these divisions currentlyaccount for only 6% of the company's Total Revenues, future prospects of these Segments arevery bright.

Telecom

KEC forayed into the Telecom business post the merger of NITEL, a group company, with itselfin FY2008. In the Telecom Segment, KEC is primarily focused on building communicationnetworks that entails laying copper fibre networks, telecom tower sites and installation of GSMand CDMA equipment. At the time of the merger, NITEL had bagged a Rs100cr order from theUSO Fund for setting up 376 telecom towers in Chattisgarh, Meghalaya and Mizoram on BuildOwn and Operate (BOO) basis. The award of projects under the second phase of USO fundedprojects involving installation of 11,000 more towers is expected to throw up huge opportunitiesfor KEC.

At the current juncture, KEC is at L1 position for bagging the Rs5,000cr order from BSNL forsetting up telecom infrastructure, which are to be allotted over the next two months. We believethat if the company secures this order, it will nearly double its Order Book. Pertinently, we havenot factored in the same in our numbers. According to management, to increase India'stele-density, an additional 1,50,000 telecom towers are required to be installed over the nextthree years.

Railways

Since KEC's foray into the Segment till-date, it has electrified 5,000km of Indian Railway tracks.The company intends to be a total solution provider in the Railway EPC Segment and provideconstruction services in infrastructure, track electrification and signaling. The Eleventh Plan hasa total outlay of a substantial Rs2,30,000cr for the Indian Railways excluding the investment ondedicated freight corridor. Of the total investments planned, projects worth Rs25,000cr hasbeen earmarked for works involving signaling, renewal of railway tracks, electrification of railwaylines, etc. In addition to the above, outlay for the dedicated freight corridor is Rs28,000cr andtenders for the same are expected to be floated in CY2009.

Exhibit 11: KEC—Some Railway Projects executedProject KmKharagpur-Bhadrak 478Godhra-Ratlam 460Khandwa-Itars 376Ambala-Ludhiana 375Barang-Talcher 353


At the current juncture, KECis at L1 position for baggingthe Rs5,000cr order from BSNLfor setting up telecominfrastructure, which will beallotted over the next twomonths

The Eleventh Plan has a totaloutlay of a substantialRs2,30,000cr for the IndianRailways


KEC International

Transmission Towers

Financial Overview

Robust Top-line growth

KEC clocked an impressive 25.7% CAGR in Top-line over FY2006-09 on the back of theincrease in investment in the Power Generation and T&D Sectors. On account of the decline incrude oil prices and global liquidity concerns, KEC's international order inflow was hamperedduring 2HFY2009. On the domestic front however, the company continued to bag orders fromplayers like PGCIL, state transmission utilities and RGGVY. Going ahead, although KEC'sinternational operations would continue to be a major contributor to its Total Revenues, weexpect the share of domestic operations to increase. We expect the company's domestic orderinflow to remain strong on the back of the government's thrust on the development of the PowerSector, its diversified business model and well-spread geographical presence. Thus, overFY2009-11E, we expect the company's Top-line to post a CAGR of 16.7% to Rs4,666cr.

Margins to improve following significant decline in commodity prices

KEC's EBITDA Margins were under severe pressure during FY2009 due to the high commodityprices witnessed in the first half of the year. Pertinently, international orders (fixed priced)account for 63% of the company's Revenues and did not provide room for passing on theincrease in the material costs. Thus, KEC's Operating Profit declined by 15.2% to Rs300cr inFY2009. However the substantial decline in the prices of steel and other metals in the 2HFY2009is expected to boost the company's Margins going ahead. The price of steel, a key raw materialused by the company, has declined by over 60% since its peak in August 2008. Hence, weexpect the company's Operating Profits to post a CAGR of 28.7% to Rs497.4cr overFY2009-11E on account of the 189bp improvement in Operating Margins.

Source: Bloomberg, Angel Research

Exhibit 12: Declining Steel (HR Coil) Prices (US $/MT)

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Jun

e-0

7

July

-07

Au

gu

st-0

7

Se

pte

mb

er-0

7

Oct

ob

er-

07

No

vem

be

r-0

7

De

cem

be

r-0

7

Jan

ua

ry-0

8

Fe

bru

ary

-08

Ma

rch

-08

Ap

ril-

08

Ma

y-0

8

Jun

e-0

8

July

-08

Au

gu

st-0

8

Se

pte

mb

er-0

8

Oct

ob

er-

08

No

vem

be

r-0

8

De

cem

be

r-0

8

Jan

ua

ry-0

9

Fe

bru

ary

-09

Ma

rch

-09

Ap

ril-

09

Ma

y-0

9

Over FY2009-11E, we expectthe company's Top-line to posta CAGR of 16.7% to Rs4,666cr

We expect the company'sOperating Profits to post aCAGR of 28.7% to Rs497.4crover FY2009-11E on accountof the 189bp improvement inOperating Margins


KEC International

Transmission Towers

Bottom-line to witness a strong 38.7% growth

During FY2009, KEC's PAT declined by 32.5% to Rs116cr on the back of low Operating Profits.The company's Net Profit Margin (NPM) fell by a substantial 276bp to 3.4% yoy in FY2009.Margins contracted during the year primarily on account of a steep increase in the cost of rawmaterials. Interest costs also increased during the year following the surge in Interest rates.Fluctuations in the forex rates also had a major bearing on the company's Profitability. In FY2009,the company booked forex losses of Rs93.7cr as against the Rs12.3cr forex gains registered inFY2008. Going ahead, we estimate the company's NPM to increase by 164bp overFY2009-11E. We estimate KEC's NPM to primarily improve on the back of the increase inOperating Margins (OPM) and lower Interest rates. Overall, we estimate KEC's Bottom-line topost a CAGR of 38.7% over FY2009-11E to Rs235cr.

Maintaining high Asset-Turnover Ratio

KEC has managed to maintain a high Asset-Turnover Ratio on account of its high efficiency.The company also outsources the manufacturing of towers for faster completion of projects.Annually, the company has been outsourcing the manufacture of towers to the extent of 30,000MT.The company’s strategy of getting its work outsourced has enabled it to maintain highAsset-Turnover Ratio.

Exhibit 13: Margin Trend


0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY2008 FY2009 FY2010E FY2011E

Net Sales (Rs cr, LHS) OPM (%, RHS) NPM (%, RHS)


KEC International

Transmission Towers

Key Downside Risks

Delay in execution of Power projects

India has a poor track record of achieving timely execution of the power generation projects.Commencement of generation have not been met been due to delay in land acquisition, deliveryof equipment and obtaining fuel linkages. Further, the power transmission projects which arelinked to generation are bound to suffer when the generation projects fail to take-off on time.More such delays will adversely impact the order inflows of transmission tower companies,which in turn will have a negative impact on future revenues.

Volatility in Raw Material Prices and Forex movements

The company receives a major portion of its revenue from international operations, which are onfixed price basis. Hence, its Bottom-line is bound to suffer if there is an abnormal increase in theraw material costs. The company has however initiated various measures including hedging andappointment of special teams to track material prices to protect margins. Similarly any adversemovement in forex rates too would have a negative bearing on the company's profitability.

High Working Capital requirements

The transmission tower industry is working capital intensive in nature due to its dependence onState Electricity Boards (SEB's). The contracts of the SEB's include some stringent clausessuch as retention of money and performance guarantee till the date of expiry of the warrantyperiod of the tower. The companies are now working on reducing their working capital intensityand their cash conversion cycle is getting smaller. KEC has been managing its working capitalefficiently as it generally receives advance payment from its customers.


Exhibit 14: DuPont AnalysisParameter FY2006 FY2007 FY2008 FY2009 FY2010E FY2011EPBIDTA/Sales (%) 9.4 12.3 12.6 8.8 10.2 10.7Sales/Total Assets 3.2 3.0 2.5 2.8 2.8 2.8PBT/EBIDTA 0.5 0.6 0.7 0.6 0.7 0.7PAT/PBT 0.6 0.7 0.7 0.7 0.7 0.7Total Assets/Net Worth 3.1 2.7 2.3 2.2 2.0 1.8RoE (%) 26.3 38.5 34.8 20.8 25.5 25.6

Return on Equity set to improve

KEC, over the years, has enjoyed high RoEs in excess of 25%. However, the company's RoEfor FY2009 stood at 20.8% well-below its performance in the previous years. Going ahead, weexpect the company to improve its RoE to 25.6% in FY2011 on account of better Profitability.


KEC International

Transmission Towers

Outlook and Valuation

The Eleventh Plan has proposed huge capex for the T&D Sector. This is expected to throw upsubstantial opportunities for the players in T&D EPC space over the next 3 years. We expectthese companies to witness good growth as orders from the government and Public Sectorutilities are expected to be robust despite the economic slow-down. PGCIL alone is expected toaward orders worth Rs20,000cr to the EPC players space over the next 3 years. KEC whichreceived Rs1,024cr worth of orders from PGCIL is well placed to bag more orders going aheadon account of its superior execution skills and excellent track record. On the distribution sidetoo, we expect the company to enjoy growth fuelled by central schemes such as RGGVY andother rural electrification programmes. The company's overseas operations too is expected toclock good growth on account of the recovery in Middle East due to rebound of the crude oilprices. The company also enjoys a good revenue visibility on account of a strong order book.Further, the company's presence in the high potential and evolving Railways and the TelecomSectors makes it a diversified EPC play. At Rs373, the stock is trading at 10.2x FY2010E and7.8x FY2011E Earnings. Historically, KEC has been trading at above 8-12x its two-year forwardEarnings. We Initiate Coverage on the stock with a Buy recommendation and TargetPrice of Rs477, implying a Target P/E multiple of 10x FY2011E Earnings which is in linewith its historical valuation.

Source: Company, Angel Research Industry

Exhibit 15: Comparative ValuationCompany EPS (Rs) % chg P/E (x) P/BV (x) RoE (%)

FY2010E FY2011E FY2010E FY2011E FY2010E FY2011E FY2010E FY2011EKEC International 36.7 47.7 29.8 10.2 7.8 2.6 2.0 25.5 25.6Jyoti Structures 11.0 13.7 25.1 11.2 8.9 2.1 1.7 18.8 19.3Kalpataru Power 58.4 67.5 15.5 12.5 10.8 1.9 1.7 15.6 15.5

Exhibit 16: Two-year forward P/E Band

Source: Company, Bloomberg, Angel Research

80

280

480

680

880

1080

03/0

4/20

06

18/0

5/20

06

28/0

6/20

06

09/0

8/20

06

21/0

9/20

06

06/1

1/20

06

18/1

2/20

06

02/0

2/20

07

19/0

3/20

07

04/0

5/20

07

15/0

6/20

07

27/0

7/20

07

10/0

9/20

07

23/1

0/20

07

04/1

2/20

07

17/0

1/20

08

28/0

2/20

08

16/0

4/20

08

02/0

6/20

08

14/0

7/20

08

26/0

8/20

08

10/1

0/20

08

25/1

1/20

08

12/0

1/20

09

25/0

2/20

09

16/0

4/20

09

01/0

6/20

09

8x

12x

16x

20x


KEC International

Transmission Towers

Annexure I

APDRP

The Accelerated Power Development Reforms Programme (APDRP) was launched in FY2003for implementation in the 10th Plan as additional central assistance to the states forstrengthening and up gradation of sub-transmission and distribution systems of high-densityload centres like towns and industrial areas. The main objectives of the programme were toreduce AT&C loss, reduction of commercial loss and to improve quality and reliability of powersupply. As the objective of the programme was not fully accomplished in Tenth Plan, theprogramme has been extended to the 11th plan as well at an outlay of Rs51,570cr.

The APDRP projects are classified into two stages, wherein the first stage involves projects forestablishing Base Line data and IT applications for energy accounting/ auditing and IT basedconsumer services etc. The government of India will provide 100% Loan for the first stage, whichshall be converted into grant after establishment of the required Base-Line data system within astipulated time frame

For the second stage, which involves the setting up of projects, the GoI will provide up to 25% ofthe cost as loan in the case of non-special category states and 90% for special categoryStates. Up to 50% (90% for special category States) loan provided for implementing the secondstage projects shall be converted into grant on achieving 15% AT&C loss in the project area.

RGGVY

This Scheme was introduced in April, 2005 for achieving the National Common MinimumProgramme objective of providing access to electricity to all Rural Households over a period offour years. Rural Electrification Corporation (REC) is the nodal agency for the programme.Under this scheme 90% Capital Subsidy will be provided for rural electrification infrastructureand the balance 10% will be loan assistance on soft terms by REC. The government hasapproved the continuation of RGGVY in the Eleventh Plan for the purpose of providing electricityto all households, electrification of about 1.15 lakh un-electrified villages and providingelectricity connections to 2.34 crore BPL households.

Exhibit 17: APDRP

Source: Power Finance Corporation, Angel Research


KEC International

Transmission Towers

Annexure II

Date Order Location Length Customer Expected Brief Description of Projectsize (Rs cr) (km) Comp Date

23-4-09 95 Mozambique El Mozambique Turnkey Construction of 110KV transmission line && Namibia & Nampower Supply and Installation of OPGW cable

30-3-09 166 UP 193 PGCIL Dec-11 Supply and Construction for Tower Packagefor 800kv HVDC Bipole Biswanath Chariyali- AgraTransmission line

30-3-09 41 West Bengal 15 CESC Jun-09 Construction of 220kv M/C portion of OverheadTransmission line to Kasaba under Budge Budge Project

19-3-09 291 MP & Assam 383 PGCIL Nov-11 Construction of 765kv Satna-Bina Line, 400kv D/CBina Line associated with ATS for Sasan UMPP

6-3-09 155 Gujarat & 251 PGCIL Dec-11 Supply and Construction of 400kv D/CMaharashtra Gandhar -Navasari Line, LILO of 220kv D/C

Kawas-Navasari& 400Kv Navasari Navi Mumbaiassociated with ATS Mundra

6-3-09 185 Assam & AP 127 PGCIL Nov-11 Supply and Construction of 400kv D/CKameng-Balipara and 400kv D/C Balipara -Bongaigaon line

6-3-09 25 UP CORE Sep-10 Design, Supply, Erection, Testing & Commissioningof 25 kV A.C. Single Phase, 50 Hz. TractionOverhead Equipments, Switching Stations,

26-2-09 103 Punjab & 160 PGCIL May-11 Supply & Construction Of 765kv S/C Jattikalan-Haryana Moga Transmission Line

26-2-09 124 MP & 135 PGCIL Feb-11 Supply and Construction of 765kv Nandarwadi-Maharashtra Wardha Transmission Line

29-12-08 636 Turkey 196 EETC Dec-11 Design, Supply and Construction of 500kv doublecircuit lines

*19-12-08 42 Australia

19-12-08 88 Tajikistan 118 Jun-10 Supply and Construction of 220kv double circuitlines associated with Tajikistan-AfghanistanInterconnection Project

15-4-08 155 Kerala 150 PGCIL Mar-10 Supply and Construction of 400kv Double Circuit(QUAD) Edamon Muvattupuzha Transmission Line

11-1-08 46 MP 128 MPPTC Jul-09 Supply and Construction of 220kv Double CircuitTransmission Line from Dewas to Ashta

1-1-08 482 Saudi Arabia SEC Nov-09 Construction of 380KV transmission line on aturnkey basis

27-11-07 140 Namibia 306 Nampower Sep-09 Turnkey job of 350KV double circuit HVDCtransmission line from Baganeni to Jambezi

27-11-07 260 Saudi Arabia 123 SAMC Sep-09 Turnkey job of 380kv double circuit transmissionline connecting Saudi Arabia Electricity Company'ssubstation to Maaden Power Plant

27-11-07 391 Abu Dhabi 173 ADTDC Nov-09 Turnkey job of 400KV double circuit and quadcircuit transmission line connecting Fujairah andSweihan Substations

16-11-07 246 Algeria Sonelgaz Apr-09 Turnkey job of 400KV single circuit transmissionline

13-7-07 131 Karnataka 152 KPTC Dec-08 Design, Fabrication, Testing, Supply, Erection,Commissioning of 400KV D/C line

1-6-07 380 Kazhakhastan 475 KEGOC Sep-09 Design, Construction, Commissioning of 475kmtransmission line of 500KV in the Ekibastuz-Agadyr section

Exhibit 18: KEC - Recent Order Inflows

Source: Company, Angel Research; Note: * Details not available


KEC International

Transmission Towers

Profit & Loss Statement (Standalone) Rs croreY/E March FY2008 FY2009 FY2010E FY2011E

Net Sales 2,814 3,427 3,978 4,666

% chg 37.9 21.8 16.1 17.3

Total Expenditure 2,460 3,127 3,574 4,169

EBIDTA 354.3 300.3 404.2 497.4

(%of Net Sales) 12.6 8.8 10.2 10.7

Other Income 0.3 0.3 0.3 0.3

Depreciation& Amortisation 25.1 22.7 26.5 31.1

Interest 67.7 100.0 107.5 115.5

PBT 261.9 177.8 270.4 351.1

(% of Net Sales) 9.3 5.2 6.8 7.5

Extraordinary Expense/(Inc.) (1.3) (0.2) - -

Tax 89.7 61.5 89.2 115.9

(% of PBT) 34.3 34.6 33.0 33.0

PAT 172.2 116.3 181.2 235.2

% chg 64.6 (32.5) 55.8 29.8

Ad. PAT 173.4 116.5 181.2 235.2

% chg 65.7 (32.8) 55.5 29.8

Y/E March FY2008 FY2009 FY2010E FY2011E

SOURCES OF FUNDSEquity Share Capital 49.3 49.3 49.3 49.3

Pref Share Capital 10.4 - - -

Reserves & Surplus 435.4 509.2 661.5 867.9

Shareholders Funds 495.2 558.5 710.9 917.2

Total Loans 591.8 621.8 671.8 721.8

Deffered Tax Liability (net) 20.0 29.8 29.8 29.8

Total Liabilities 1,107.0 1,210.2 1,412.5 1,668.9

APPLICATION OF FUNDS

Gross Block 521.3 625.5 685.6 762.1

Less: Acc.Depreciation 89.9 122.2 148.7 179.8

Net Block 431.4 503.2 536.9 582.3

Capital Work-in-Progress 18.9 51.4 35.4 41.5

Investments 0.5 1.8 1.8 1.8

Current Assets 1,973.5 2,539.8 2,970.4 3,459.5

Current liabilities 1,317.3 1,886.0 2,131.9 2,416.2

Net Current Assets 656.2 653.8 838.5 1,043.4

Total Assets 1,107.0 1,210.2 1,412.5 1,668.9

Balance Sheet (Standalone) Rs crore

Cash Flow Statement (Standalone) Rs croreY/E March FY2008 FY2009 FY2010E FY2011E

Profit before tax 261.9 177.8 270.4 351.1

Depreciation 25.1 22.7 26.5 31.1

(Inc)/Dec in Working Capital (249.6) (37.7) (171.1) (219.8)

Interest (Net) 67.6 99.6 107.2 115.2

Direct taxes paid 89.7 61.5 89.2 115.9

Others (35.2) 118.8 30.9 21.6

Cash Flow from Operations (20.0) 319.8 174.6 183.2

Inc./(Dec.) in Fixed Assets 70.3 136.6 44.2 82.6

Free Cash Flow (90.3) 183.2 130.4 100.6

(Inc)/Dec in Investments 20.1 (1.3) - -

Issue of Equity 7.9 (14.9) - -

Inc./(Dec.) in loans 205.4 30.1 50.0 50.0

Dividend Paid (Incl.Tax) 28.9 28.9 28.9 28.9

Interest (Net) 67.6 99.6 107.2 115.2

Cash Flow from Financing 116.8 (113.4) (86.0) (94.0)

Inc./(Dec.) in Cash 46.6 68.5 44.4 6.6

Opening Cash balances 21.4 68.0 136.5 181.0

Closing Cash balances 68.0 136.5 181.0 187.6

Key Ratios

Y/E March FY2008 FY2009 FY2010E FY2011E

Per Share Data (Rs)EPS 34.9 23.6 36.7 47.7Cash EPS 40.0 28.2 42.1 54.0DPS 5.0 5.0 5.0 5.0Book Value 100.4 113.2 144.1 185.9Operating RatioSales/Invested capital 2.7 3.2 3.2 3.2Inventory (days) 26.6 24.0 24.0 24.0Debtors (days) 185.5 197.1 197.1 197.1Creditors (days) 163.8 196.1 191.1 185.0Returns %RoE 34.8 20.8 25.5 25.6RoCE 29.7 22.9 26.7 27.9Dividend Payout 16.6 24.8 15.9 10.5Debt : Equity 1.2 1.1 0.9 0.8Valuation Ratio (x)P/E 10.7 15.8 10.2 7.8P/E(CashEPS) 9.3 13.2 8.9 6.9P/BV 3.7 3.3 2.6 2.0EV/Sales 0.8 0.7 0.6 0.5EV/EBITDA 6.7 7.7 5.8 4.7


KEC International

Transmission Towers

Fund Management & Investment Advisory ( 022 - 3952 4568)P. Phani Sekhar Fund Manager - (PMS) [email protected] Bhamre Head - Derivatives and Investment Advisory [email protected] Mehta AVP - Investment Advisory [email protected] Team ( 022 - 3952 4568)Hitesh Agrawal Head - Research [email protected] Kour Nangra VP-Research, Pharmaceutical [email protected] Agrawal VP-Research, Banking [email protected] Jajoo Automobile [email protected] Shah IT, Telecom [email protected] Pareek Oil & Gas [email protected] Burde Metals & Mining, Cement [email protected] Solanki Power, Mid-cap [email protected] Kanani Infrastructure, Real Estate [email protected] Shah FMCG , Media [email protected] Bambha Capital Goods, Engineering [email protected] Dalmia Pharmaceutical [email protected] Sehgal Retail [email protected] Desai Logistics [email protected] Bariya Fertiliser, Mid-cap [email protected] Vora Research Associate (Oil & Gas) [email protected] Waghmare Research Associate (Metals & Mining, Cement) [email protected] Mate Research Associate (Infra, Real Estate) [email protected] Srinivasan Research Associate (Power, Mid-cap) [email protected] Agrawal Jr. Derivative Analyst [email protected]

Amit Bagaria PMS [email protected] Wagle Chief Technical Analyst [email protected] Joshi AVP Technical Advisory Services [email protected] Ail Manager - Technical Advisory Services [email protected] Jagtap Sr. Technical Analyst [email protected] Sanghvi Sr. Technical Analyst [email protected] Vasudeo Technical Analyst [email protected] Dayma Derivative Analyst - (TAS) [email protected]

Sanket Padhye AVP Mutual Fund [email protected] Rathod Research Associate (MF) [email protected] Jangid Research Associate (MF) [email protected]

Commodities Research TeamAmar Singh Research Head (Commodities) [email protected] P Sr. Technical Analyst [email protected] Gupta Sr. Technical Analyst [email protected] Patki Sr. Technical Analyst [email protected] Chauhan Technical Analyst abhishek [email protected] Joshi Technical Analyst [email protected]

Commodities Research Team (Fundamentals)Badruddin Sr. Research Analyst (Agri) [email protected] Pote Research Analyst (Energy Complex) [email protected] Walia Research Analyst ( Base Metals) [email protected] Narvekar Research Analyst ( Agri) [email protected] Rao Research Analyst (Agri) [email protected]

Bharathi Shetty Research Editor [email protected] Patil Production [email protected]

DisclaimerThis document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possessionthis document may come are required to observe these restrictions.Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change withoutnotice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While everyeffort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can usethe information as the basis for any claim, demand or cause of action.Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arriveat an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determinethe merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions- futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studyingcharts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its subsidiariesand associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that may prevent AngelBroking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Angel BrokingLimited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companiesmentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions.Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companiesreferred to in this report, as on the date of this report or in the past.

Research & Investment Advisory: Acme Plaza, 3rd Floor ‘A’ wing, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059

Buy (Upside > 15%) Accumulate (Upside upto 15%) Neutral (5 to -5%)Reduce (Downside upto 15%) Sell (Downside > 15%)

Ratings (Returns) :


KEC International

Transmission Towers

Central Support & Registered Office:G-1, Akruti Trade Centre, Road No. 7, MIDC Marol, Andheri (E), Mumbai - 400 093 Tel : 2835 8800 / 3083 7700

Regional Offices:

Private Client Group Offices: Sub - Broker Marketing:

Branch Offices:

Corporate & Marketing Office : 612, Acme Plaza, M.V. Road, Opp Sangam Cinema, Andheri (E), Mumbai - 400 059 Tel : (022) 3941 3940NRI Helpdesk : e-mail : [email protected] Tel : (022) 4000 3622 / 4026 2700Investment Advisory Helpdesk : e-mail : [email protected] Tel : (022) 3952 4568Commodities : e-mail : [email protected] Tel : (022) 3081 7400PMS : e-mail : [email protected] Tel: (022) 3953 2800Feedback : e-mail : [email protected] Tel : (022) 2835 5000

Ahmedabad - Tel: (079) 3982 2300 / 3982 5200

Bengaluru - Tel: (080) 4143 2900 / 3053 9800

Chennai - Tel: (044) 3941 3940

Hyderabad - Tel: (040) 3091 2222

Coimbatore - Tel: (0422) 3941 3940

Cochin - Tel: (0484) 3941 3940

Surat - Tel: (0261) 3071 600

Rajkot - Tel :(0281) 2490 847

Visakhapatnam - Tel :(0891) 3987 200 - 29

Mumbai (Powai) - Tel: (022)3952 6500

Pune - Tel: (020) 3071 0250 / 2551 3143

New Delhi - Tel: (011) 3045 1300 / 4077 1300

Nagpur - Tel: (0712) 3041 533

Nashik - Tel: (0253) 3011 400 / 1

Mumbai (Goregoan) Tel: (022) 2879 0411-15

Indore - Tel: (0731) 3092 100

Jaipur - Tel: (0141) 3941 3940

Kanpur - Tel: (0512) 3017 700

Kolkata - Tel: (033) 3941 3940

Lucknow - Tel: (0522) 3057 700

Ludhiana - Tel: (0161) 4697 400

Ahmedabad (C. G. Road) - Tel: (079) 3982 9934 Surat - Tel: (0261) 3071 600 Rajkot (Race course) - Tel: (0281) 2490 847 Powai - Tel: (022) 3952 6500

Andheri (W) - Tel: (022) 2635 2345 / 6668 0021

Bandra (W) - Tel: (022) 2655 5560 / 70

Andheri ( L o k h a n d w a l a ) - Te l : ( 0 2 2 ) 3 9 5 2 5 6 7 9

Bandra (W) - Tel: (022) 6643 2694 - 99

Borivali (W) - Tel: (022) 3952 4787

Borivali (Punjabi Lane) - Tel: (022) 3951 5700.

Chembur - (Basant) - Tel:(022) 022) 6156 1111 / 01

Kalbadevi - Tel: (022) 2243 5599 / 2242 5599

Kandivali (W) - Tel: (022) 2867 3800/2867 7032

Chembur - Tel: (022) 6703 0210 / 11 /12

Fort - Tel: (022) 3958 1887

Ghatkopar (E) - Tel: (022) 3955 8400/2510 1525

Malad (E) - Tel: (022) 2880 4440

Kandivali - Tel: (022) 4245 1300

Malad (Natraj Market) - Tel:(022) 28803453 / 24

Masjid Bander - Tel: (022) 2345 5130 /1 / 8 / 42 /28

Mulund (W) - Tel: (022) 2562 2282

Nerul - Tel: (022) 2771 9012 - 17

Sion - Tel: (022) 3952 7891

Powai (E) - Tel: (022) 3952 5887

Thane (W) - Tel: (022) 2539 0786 / 0650 / 1

Vashi - Tel: (022) 2765 4749 / 2251

Vile Parle (W) - Tel: (022) 2610 2894 / 95

Wadala - Tel: (022) 2414 0607 / 08

Agra - Tel: (0562) 4037200

Ahmedabad (Kalupur) - Tel: (079) 3041 4000 / 01

Ahmedabad (Maninagar) - Tel: (079) 3981 7430 / 1

Ajmer - Tel: (0145) 3941 3940

Alwar - Tel: (0144) 3941 3940 / 99833 60006

Ahmeda. (Bapu Nagar) - Tel : (079) 3091 6900 - 02

Ahmeda. (Gurukul) - Tel: (079) 3011 0800 / 01

Ahmedabad (C. G. Road) - Tel: (079) 4021 4023

Ahmedabad (Sabarmati) - Tel : (079) 3091 6100 / 01

Ahmedabad (Satellite) - Tel: (079) 4000 1000

Ahmedabad (Shahibaug) -Tel: (079)3091 6800 / 01

Amreli - Tel: (02792) 228 800/231039-42

Anand - Tel : (02692) 398 400 / 3

Amritsar - Tel: (0183) 3941 3940

Indore - Tel: (0731) 4238 600

Jaipur - (Rajapark) Tel: (0141) 3057 900 / 99833 40004

Gandhinagar - Tel: (079) 4010 1010 - 31

Gajuwaka - Tel: (0891) 3987 100 - 30

Faridabad - Tel: (0129) 3984 000

Gandhidham - Tel: (02836) 237 135

Gondal - Tel: (02825) 398 200

Ghaziabad - Tel: (0120) 3980 800

Gurgaon - Tel: (0124) 3050 700

Himatnagar - Tel: (02772) 241 008 / 241 346

Hyderabad - A S Rao Nagar Tel: (040) 4222 2070-5

Hubli - Tel: (0836) 4267 500 - 22

Indore - Tel: (0731) 3049 400

Bhopal - Tel :(0755) 3941 3940

Bikaner - Tel: (0151)3941 3940 / 98281 03988

Chandigarh - Tel: (0172) 3092 700

Deesa - Mobile: 97250 01160

Erode - Tel: (0424) 3982 600

Ankleshwar - Tel: (02646) 398 200

Baroda - Tel: (0265) 2226 103-04 / 6624 280

Baroda (Akota) - Tel: (0265) 2355 258 / 6499 286

Baroda (Manjalpur) - Tel: (0265) 6454280-3

Bhavnagar (Shastrinagar)- Mobile: 92275 32302

Bhavnagar - Tel: (0278) 3941 3940

Bengaluru - Tel: (080) 4072 0800 - 29

Ahmeda. (Ramdevnagar) - Tel : (079) 4024 3842 / 43

Jamnagar (Cross Word) - Tel: (0288) 2751 118

Jamnagar(Indraprashta) - Tel: (0288) 3941 3940

Jodhpur - Tel: (0291) 3941 3940 / 99280 24321

Junagadh - Tel : (0285) 3941 3940

Keshod - Tel: (02871) 234 027 / 233 967

Kolkata (N. S. Rd) - Tel: (033) 3982 5050

Kolkata (P. A. Shah Rd) - Tel: (033) 3001 5100

Mehsana - Tel: (02762) 645 291 / 92

Kota - Tel : (0744) 3981 400

Mansarovar - Tel:(0141) 3057 700/99836 74600

Mysore - Tel: (0821) 4004 200 - 30

Nadiad - Tel : (0268) - 2527 230 / 34

New Delhi (Nehru Place) - Tel: (011) 3982 0900

New Delhi (Preet Vihar) - Tel: (011) 4310 6400

Palanpur - Tel: (02742) 308 060 - 63

Patel Nagar - Tel : (011) 45030 600

Patan - Tel: (02766) 222 306

Porbandar - Tel : (0286) 3941 3940

Noida - Tel : (0120) 4639 900 / 1 / 9

Nashik - Tel: (0253) 3011 500 / 1 / 11

New Delhi (Bhikaji Cama) - Tel: (011) 41659711

New Delhi (Lawrence Rd.) - Tel: (011) 3262 8699 / 8799

New Delhi (Pitampura) - Tel: (011) 4751 8100

Porbandar (Kuber Life Style) - Mob.-98242 53737

Pune (Camp) - Tel: (020) 3092 1800

Pune - Tel : (020) 3093 4400 / 3052 3217

Jamnagar (Moti Khawdi) - Tel: (0288) 2846 026

Jamnagar(Madhav Plaza) - Tel: (0288) 2665 708

Jalgaon - Tel: (0257) 2234 832

Pune (Aundh) - Tel: (020) 4104 1900

Mangalore - Tel: (0824) 3982 140

Kolhapur - Tel: (0231) 6615 962 / 3

Pune - Tel: (020) 6640 8300 / 3052 3217

Rajamundhry - Tel: (0883) 3982 200

Rajkot (Ardella) Tel.: (0281) 2926 568

Rajkot (University Rd.) - Tel: (0281) 2331 418

Rajkot - (Bhakti Nagar) Tel: (0281) 2361 935

Rajkot - (Indira circle) Tel : 99258 84848

Rajkot (Orbit Plaza) - Tel: (0281) 3983 485

Rajkot (Pedak Rd) - Tel: (0281) 3985 100

Rajkot (Ring Road)- Mobile: 99245 99393

Surat (Ring Road) - Tel : (0261) 3071 600

Surendranagar - Tel : (02752) 223305

Udaipur - (0294) 3981400

Valsad - Tel - (02632) 645 344 / 45

Vapi - Tel: (0260) 3088 210 / 211 / 2400 214

Varachha - (0261) 3091 500

Secunderabad - Tel : (040) 3093 2600

Surat (Mahidharpura) - Tel: (0261) 3092 900

Surat - (Parle Point) - Tel : (0261) 3091 400

Vijayawada - Tel :(0866) 3984 600

Rajkot (Star Chambers) - Tel : (0281)3981 200

Rajkot - (Star Chambers) - Tel : (0281) 2225 401-3

Salem - Tel: (0427) 3982 810

Warangal - Tel: (0870) 3982 200

Varanasi - Tel: (0542) 2221 129, 3058 066

Nagaur - Tel: (01582) 244 648

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