Current Portfolio

Current Portfolio

Container reach stacker

Vikram Logistic and Maritime Services Limited (VLMS)

The Group acquired an approximately 99,99% interest in VLMS through the issue of ordinary shares with an implied aggregate value of £ 93.1 million.

    • IIP own 99.99%
    • VLMS is a national, infrastructure based, rail-linked logistics company with large warehousing capacity and the capability to deliver integrated supply chain solutions
    • Founded in 1972 as a south India based container handling and transport company, VLMS has transformed to a pan India multimodal operator with large road and rail linked terminals
    • VLMS are strategically located in areas covering ~60% of containerised EXIM cargo in India

 

  • Limited competition from other service providers and high barriers to entry – very difficult to replicate VLMS integrated model and footprint
  • Solid, long term, blue chip customers and exclusive contracts
  • Strong and effective management team with hands-on experience in planning, project implementation, ramp-up and mature operations
  • Significant asset base  of consolidated land with rail sidings and statutory approvals
  • Significant expansion opportunities at existing terminals and other strategic cargo centres
  • A potential leader for industry consolidation, rationalisation and growth

Hydropower Project

Shree Maheshwar Hydel Power Corporation Limited

The Group has invested Rs1.1 billion (approximately £13 million) in Shree Maheshwar Hydel Power Corporation Limited (SMHPCL), a company established to solely own and develop a 400MW hydroelectric power project situated in the south western region of Madhya Pradesh in India.

  • IIP own 17.7%
  • SMHPCL is the first large scale hydro project awarded to the private sector
  • 400 MW (ten 40MW turbines) hydroelectric plant in Madhya Pradesh
  • The project is expected to reduce peaking power shortage of the state by 25%
  • Long history – work first began in 1997, re-commenced in 2006 and many challenges overcome to reach this stage
  • IIP invested 2008 (£13m) and 2011 (£16.5m)
  • IIP has a minimum IRR guarantee from the developer of 15% and 17% on its two investments
  • Long-term PPA with state electricity board and regulated 16% return on equity
  • Civil works largely complete with 27 gates and 3 of the 10 turbines installed
  • Progress has been delayed by financing constraints, but SMHPCL and other stakeholders, under the guidance of the Ministry of Finance are exploring options to complete the project
  • SMHPCL has received approval to fill the reservoir to a level of 154 metres

  • Located at Mandaleshwar, 108km southwest of Indore in Madhya Pradesh
  • Situated on the Narmada river – fifth largest river in India
  • Developed as part of the Narmada Basin Development Plan
  • Project will provide electricity and drinking water

Toll road

Western MP Infrastructure and Toll Roads Private Limited

The Group also invested £11.3 million (Rs 960m) in a toll road in Central India, representing a 26% shareholding in the project company, Western MP Infrastructure Toll Roads Private Limited (WMPITRL). The toll road project comprises the development of a single 125 km stretch of highway to be widened and improved to reduce congestion experienced on the route and to provide further scope for traffic growth.

  • IIP own 26%
  • The 125 km toll road is a four lane expressway connecting the towns of Lebad and Jaora
  • Provides crucial links to National Highway 8 from eastern Rajasthan to the industrial city of Indore as well as a link to National Highway 3 which connects to the major cities of Mumbai to Agra
  • Provides a vital north-to-south road connection
  • The toll operates under a 25 year concession with the Madhya Pradesh Road Development Corporation
  • Tolls per vehicle are fixed with a 7% escalation pa
  • Phase 1 (67km) of toll road was operational in November 2009 and Phase 2 (56km) became operational in June 2011
  • Road developer is Essel Group which has a good track record in the sector
  • Traffic has been ahead of expectations, although traffic growth has slackened with the slowing economy and forecasts have been revised down to reflect this
  • Use of the road reduces journey time by several hours
  • Relative to its peers, the toll road performs well

Wind Energy Project

Indian Energy Limited (IEL)

The Group acquired a 100% interest in IEL, an independent power producer focused on wind farms in India, which currently owns and operates 41.3 MW across two wind farms. The Gadag Project is a 24.8 MW wind farm situated in Karnataka, now in its third full year of operation, supplying power to the Bangalore Electricity Supply Company under a 20 year power purchase agreement.

  • IIP own 100%
  • IEL is an independent power producer with two operating wind farms with 41.3 MW capacity
  • Cash flow visibility already established through long-term PPA with state electricity board and group captive arrangement
  • Group captive arrangement provides better tariffs as industry is willing to pay for reliable power
  • At both projects, the suppliers of the turbines have set up state-of-the-art O&M infrastructure
  • O&M long-term contracts with established pricing that includes replacement of spares
  • Pipeline identified for near- and medium-term opportunities
  • When pursuing new projects, IEL typically takes limited development risk with projects being acquired when fully permitted
  • Strong support for wind energy – India has 4th largest installed wind capacity globally

  • The Theni project is located in the southern state of Tamil Nadu (16.5 MW)
  • The Gadag Plains project is located in the southern state of Karnataka, near Hubli (24.8 MW)
  • Estimated P75 load factor: Theni (31%); Gadag 23%)

IHDC – 5MW Darna project showing tailrace

India Hydropower Development Company, LLC

The Group acquired a 50% interest in IHDC through the issue of ordinary shares with an implied aggregate value of £24.8 million.  IHDC’s primary business is the ownership and operation of hydroelectric power plants in India and its asset base consists of existing hydroelectric power generation assets, the right to implement additional hydroelectric power capacity in several states in India, and an established operating infrastructure capable of supporting such projects.

  • IIP own 50%
  • IHDC is a developer of small hydro projects, with six operational projects (62 MW) and an additional 24MW under advanced development or construction
  • Opportunities to expand existing capacity and pipeline
  • All projects, except two, have long-term PPAs with state electricity boards
  • IHDC cash flow from operations is funding construction of two remaining projects
  • DLZ corporation, IIP’s 50% partner, has vast experience in the sector with over 30 years experience in design and operation of hydro projects
  • Hydro has typically low operating costs with no fuel and limited maintenance
  • Several states have favourable policies to support development of small hydro assets (