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LETTER TO SHAREOWNERS:
My dear fellow Shareowners
It gives me great pleasure to share with you the highlights of our Company's performance during the year 2012–13.
I am glad to inform you that the Company has made significant progress in implementing various infrastructure projects that have been taken up by the Company in recent years. Within a short span of time, the Company has emerged as one of the leading infrastructure companies of India, developing its infrastructure projects, through various special purpose vehicles, in high growth areas, such as roads, metro rail and cement projects. The Company is also one of the leading utility companies in India, having a presence across the value chain of power businesses i.e. generation, transmission, distribution, trading and engineering, procurement and construction.
The highlights of our financial and operational performance during the year 2012–13 are:
1. Total income of Rs. 15,405 crore (US$ 2.8 billion).
2. Net Profit of Rs. 1,999.52 crore (US$ 368 million).
3. Cash Earnings Per Share of Rs. 94.9 (US$ 1.7).
4. Earnings Per Share (EPS) of Rs. 76.0 (US$ 1.4).
5. With a net worth of about Rs. 20,236 crore (US$ 3.7 billion), Reliance Infrastructure ranks among the top performing Indian private sector companies in the country.
6. Our group revenues stand at about Rs. 40,980 crore (US$ 7.5 billion), while our gross fixed assets amount to Rs. 37,330 crore (US$ 6.9 billion).
Power generation, transmission and distribution
The Company with its wholly owned subsidiary owns and operates power stations in Maharashtra, Goa, Andhra Pradesh and Kerala with aggregate capacity of over 941 MW. The generation units continue to demonstrate significant improvements across major operational, environmental and safety performance parameters. The Dahanu Power Station continues to be the country's best thermal power station in terms of various plant parameters such as plant load factor, plant availability factor, heat rate and auxiliary power consumption.
The power station has been operating with a plant load factor of more than 100 per cent consecutively for the past seven years and overall for nine years.
The Company is the largest private player in the Indian power transmission sector and is currently implementing three inter state transmission projects consisting of 12 transmission lines across the length and breadth of the national grid.
I am glad to inform you that six transmission lines associated with the Western Region System Strengthening Scheme II Project B and C with a cumulative line length of about 1,440 circuit kms in Maharashtra and Gujarat have already been commissioned and are being successfully operated with a record availability of more than 99 per cent by Reliance Power Transmission Limited (RPTL), the Company's special purpose vehicle for transmission business.
The construction of the remaining three lines covered under these projects is expected to be commissioned during 2013–14. The third project namely Parbati Koldam Transmission Project being executed in a joint venture with Power Grid Corporation of India Limited (PGCIL) has achieved significant construction progress. With all the enabling clearances required to execute the project being in place, commissioning is expected to be achieved by the close of 2013–14.
The transmission business has maintained its high standards with network availability of 99.77 per cent for the year, thus ranking as one of the top performing utilities.
The Company's distribution system in Mumbai has the distinction of operating its distribution network at 99.98 per cent reliability with aggregate system loss of just around 9.5 per cent.
The Company continues to focus on maintaining low system loss through a variety of technical and physical means and implementing various network augmentation measures. With the upgradation of the Supervisory Control and Data Acquisition system (SCADA) and the Distribution Management System (DMS), the Company is one of the first utilities in India to have the most advanced SCADA technology which enables the system to deliver a seamless integrated platform with Geographical Information System (GIS) for providing customers with enhanced and superior service standards.
I am glad to inform you that Mumbai Power Distribution Group has launched the 'First' of its kind online chat service for its 29 lakh Mumbai suburban power customers. This avenue would enable the customers to chat online with the Company's representatives for resolution of their queries / grievances on real time basis. Customers can also seek guidance on the status of their application, bill related issues, payment options and other procedural information.
The Power Distribution Division has been consistently improving on its several customer centric initiatives, viz. meter modernization, billing, payment options, dedicated call centres, customer care centres, an informative–interactive and user friendly website.
The EPC Business
The Engineering, Procurement and Construction (EPC) Division currently focuses on the EPC contracts of power projects being implemented by Reliance Power Limited. The Division achieved a turnover of around Rs. 8,000 crore during 2012–13 and has a strong order book position of about Rs. 11,000 crore as of March 31, 2013. The Division has taken various initiatives in engineering, construction and technology areas for successful implementation of mega and ultra mega power projects. The Division follows extensive construction and quality management processes at construction sites, to ensure reliability and efficiency of plants.
The Company, through special purpose vehicles, is implementing/ operating several toll road projects and is one of the largest developers of road and highway projects for the National Highways Authority of India (NHAI). Out of eleven projects, eight road projects are revenue operational and two more road projects are expected to be revenue operational within the current year. The Company is prequalified for NHAI projects of up to Rs. 9,800 crore.
The Versova–Andheri–Ghatkopar corridor of Mass Rapid Transit System of Mumbai being executed by our special purpose vehicle, Mumbai Metro One Private Limited, is expected to be ready for commercial operation within the current financial year 2013–14. The opening up of this line will reduce vehicular traffic substantially and reduce the traveling time on that corridor from 120 minutes to 20 minutes.
The Company is setting up, through its subsidiary company, 5 million tons per annum (MTPA) capacity cement plant at Maihar in Madhya Pradesh and another 5 MTPA cement plant at Mukatban in Maharashtra. Over the next five years, the Company aims to build up cement capacity of 20 MTPA.
The Company has already set up a grinding unit at Butibori, near Nagpur, which will use fly–ash to the extent of about 30 per cent of the raw materials for production of cement. In line with its vision to set up cement plants across India, the Company has applied for various mining leases/prospecting licenses in the States of Madhya Pradesh, Maharashtra, Karnataka, Himachal Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh and Uttarakhand.
Reliance Infrastructure has always maintained the highest governance standard and practices by adopting, as is the norm for all constituent companies of the Group, the "Reliance Group–Corporate Governance policies and Code of Conduct". These Policies and Code prescribe a set of systems, processes and principles, which conform to the highest international standards and are reviewed periodically to ensure their continued relevance, effectiveness and responsiveness to the needs of investors, both local and global, and all other stakeholders.
As a responsible corporate citizen, we continue to contribute actively towards corporate social responsibility measures, focusing on education, healthcare, environment and other social upliftment initiatives. These initiatives are aimed at reaching out to underprivileged communities that live around the areas of our business units. We continue to extend support operationally to the Kokilaben Dhirubhai Ambani Hospital, a multi speciality hospital located in a prime area of Mumbai.
Awards and Recognitions
Our Company continues to receive awards and peer recognition for its outstanding performance across a variety of domains –from excellence in generation to environment, quality, water and energy management, from leadership in technology and innovation to safety and corporate social responsibility. These awards will motivate and spur us further in our quest for even greater excellence in operational and financial performance.
Our endeavour at all times is to achieve the highest performance standards in the industry and an unchallenged leadership position across all segments in which we operate. Dhirubhai has always emphasized the entrepreneurial principles of quality with quantity, efficiency with equity, enterprise with excellence for improving the quality of life of Indians. We remain committed to upholding his vision and aim at creating even greater value for all our stakeholders.
Anil Dhirubhai Ambani