MAYTAS INFRA LIMITED
ANNUAL REPORT 2007-2008
CHAIRMAN'S REPORT
Chairman's Message
As I gaze out of my cabin and watch the bright sun belting down on the
Deccan Plateau, it strengthens my belief that its brightness is reflective
of the immense potential of the Indian economy.
And a crucial parameter for our economy to shine bright is Infrastructure
Development. Ironically, while the Indian economy has grown by leaps and
bounds, Infrastructure still remains an area that is grossly underdeveloped
and is dragging down the economic growth rate. Our Company has been early
to sense a clear business opportunity here and soon, I believe we will be
ranked among the very best in infra companies, noijust in India but
globally too.
Maytas Infra has very strong brand equity in the construction space and has
leveraged the same to venture into the Infrastructure space wherein it
intends establishing a plan leadership position. This initiative has been
backed by a well thought out strategy keeping in mind the macroeconomic
factors and the unique strengths of the Company.
For the five-year period 2002-06, our country's construction expenditure
has been estimated at Rs. 3313 billion. Yet there is a huge expenditure gap
that needs to be filled in across various infrastructure segments like
roads & highways, ports, airports and power.
To address this gap, the Government of India has initiated various steps
which include increased private sector participation in the execution of
infrastructure related projects (under the aegis of PPP - Public-Private
Partnership arrangements), providing for viability gap funding and
establishment of agencies whose role would be to make these projects
financially viable for private companies. In the five year period between
FY07-FY11, it is estimated that infrastructure construction investmentswill
exceed Rs. 6000 billion.
Clearly, the trend in investments in the infrastructure sector over the
last half decade has been upward. Even though external factors are hinting
at a slowdown of sorts in the short term, the strong long-term prospects of
the segment remain intact.
This has accentuated the role of large and well-organized players like
Maytas Infrawho can meet global quality standards using advanced technology
and the other resources required in this segment. Maytas Infra, with its
strategic expertise, strong execution capabilities, and commitment to
adopting the highest quality, safety, and environmental policies has the
capability to be a prominent global player in the near future.
A testimony to our commitment and success thus far is reflected in our
bagging the NICMAR Award 2007 of 'India's Fastest Growing Construction
Company'. This has enhanced our responsibility, and we remain conscious of
the fact that we have to raise the bar and set even higher standards for
ourselves. We adopt motto of no cost overrun and no time overrun.
Finally, each one of us at Maytas Infra acknowledges the additional
responsibility which we now shoulder, of being a listed Company. I take
this opportunity to thank our investors for their overwhelming response to
our IPO and assure each one of you of ourvery best efforts.
Sincerely
R.C. Sinha
Chairman