Indian Hume Pipe Company Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

1. INDUSTRY STRUCTURE & DEVELOPMENT:

We all know that water is a prime natural resource and a basic human need for survival and existence. Indeed water is fundamental to our life. In view of the vital importance of water for human, animal & plant life, for maintaining ecological balance and for economic and developmental activities of all kinds and considering its increasing scarcity, the planning and management of this resource and its optimal economical and equitable use has become a matter of national importance.

Your Company has been in the business of manufacturing, laying and jointing of pipelines of various pipe materials such as RCC pipes, Steel pipes, Prestressed Concrete pipes, Penstock pipes, Bar Wrapped Steel Cylinder pipes (BWSC), Prestressed Concrete Cylinder pipes (PCCP) etc., which provide infrastructure facility and development of drinking water supply projects, irrigation projects, Sanitation and Sewerage schemes. For over five decades as a part of nation building, your Company has also been undertaking infrastructure development programmes by way of executing on turnkey basis the combined water supply projects i.e. undertaking the complete job of water supply from source to distribution centers which apart from manufacturing, laying and jointing of pipelines included construction of intake wells, water sumps, water treatment plants, water pumping stations, installation of pumping machineries, electro-mechanical works, branch mains, ground level reservoirs, elevated reservoirs, leading to executions of complete systems for water supply to various towns and villages of India.

2. OPPORTUNITIES AND THREATS:

Water is one of the most crucial elements in our national developmental planning for the 21^st Century. The proper management of our limited water resources will be essential to ensure food security for countrys growing population and to eliminate poverty. (Water Policy and Action Plan for India 2020: An Alternative).

As per Indian Census 2011, the population of India was 121 crores. A scarce natural resource, water is fundamental to life, livelihood, food security and sustainable development. India has more than 18% of the worlds population, but has only 4% of worlds renewable water resources and 2.4% of worlds land area. There are further limits on utilizable quantities of water owing to uneven distribution over time and space. In addition, there are challenges of frequent floods and droughts in one or the other part of the country. With a growing population and rising needs of a fast developing nation as well as the given indications of the impact of climate change, availability of utilizable water will be under further strain in future with the possibility of deepening water conflicts among different user groups. The main emphasis of the National Water Policy, 2012 is to treat water as economic good. Low consciousness about the scarcity of water and its life sustaining and economic value results in its mismanagement, wastage, and inefficient use, as also pollution and reduction of flows below minimum ecological needs. In addition, there are inequities in distribution and lack of a unified perspective in planning, management and use of water resources (Source:- National Water Policy 2012). As it is with the growing population demanding more food, more products and higher standards of living, the shortage of drinking water can only get worse. Thus there is a vast scope for improvement in infrastructural developmental activities in water supply, drainage and sewerage schemes in sanitation Swachh Bharat segments leading to good scope for the Companys manufacturing and contracting activities in this field.

Growth of population and the expansion of economic activities inevitably lead to increasing demands for water for diverse purposes i.e. domestic, industrial, agricultural, hydro-power, thermal power, navigation, recreation etc. Domestic and Industrial water needs have been largely concentrated in or around major cities, however the demand in rural areas is expected to increase sharply with the development programmes of State Governments to improve the economic conditions of the rural mass. Demand for water for hydro and thermal power generation and for other industrial uses is also increasing substantially. As a result water which is already scarce will become even scarcer in future. This underscores the need for the utmost efficiency in water utilisation and its distribution. Through awareness of efficient water supply system and water quality, we can keep our water supply adequate and provide clean & healthy water for our children. It is their fundamental rights. Hence there is a good scope for many water supply projects coming up in near future and this auger well for your Company.

Increased competition from medium/large scale construction entities and availability of substitutes such as alternative pipe materials like Ductile Iron pipes, spirally welded steel pipes and H.D.P E. pipes are perceived as one of the threat / competition to the Company. Another cause is prices of key raw materials namely steel, steel wires, HT wires and cement, which were on uptrend during the year under review.

3. SEGMENT-WISE ACTIVITY:

(i) Construction:

The Company is considered a pioneer in the field of water supply industry; it is in this line of business for over five decades. The Companys presence is there in almost all water supply related activities, viz. Urban & Rural Water Supply, Large diameter Irrigation pipelines, Head Works including pumping machinery, Treatment Plants, Overhead Tanks and other allied Civil Construction. The Company also supplies Concrete Railway sleepers to Indian Railways.

(ii) Land Development:

The Company is monetizing its land parcels. It is a new segment activity for the year under review in accordance with applicable Accounting Standards. The development of real estate project on the Companys land situated at Hadapsar, Pune, Maharashtra started during the year under review. The segment wise report is given below:

(I) A. WATER SUPPLY AND SEWERAGE PROJECTS:

(i) Some prominent Water Supply Projects and Drainage Schemes substantially completed by your Company valued more than Rs.5,000 Lakhs each during the year are:-

1. TWAD Board, Coimbatore for CWSS to Alampalayam Town & other habitations in Namakkal District, consisting of 100 to 300 mm dia DI K7 pipes for 114.36 km, 100 to 600 mm dia DI K9 pipes for 85.45 km, 813 & 700 mm dia MS pipes for 18.87 km and 63 to160 mm dia PVC pipes for 624.76 km including Water Treatment Plant, Overhead tanks allied civil works of the value of Rs.25,619 Lakhs in Tamilnadu.

2. Tillari Water Supply project comprises of PCCP pipeline of 1300, 1200, 900 mm dia for 15.90 Km and BWSC pipeline of 500 to 600 mm dia for 30.78 Km of the value of Rs.16,061.26 Lakhs for Maharashtra Jeevan Pradhikaran in Maharashtra.

3. Irrigation Project Division, Nagpur for the work of construction of M. S. Feeder Pipeline from Kochi Barrage to Pench RBC (28.86 Kms), Head Regulator, Delivery Chamber, Reconstruction of Road and allied works of Kanhan River Project (Kochi Barrage) consisting of 2000 mm dia M S Pipes for 14.39 Kms of the value of Rs.6,033.95 Lakhs in Maharashtra.

(ii) Companys works on many Water Supply Projects and Drainage Schemes valued more than Rs.5,000 Lakhs each are progressing well and/or nearing completion and the noteworthy amongst them are:-

1. Minor Irrigation and Ground Water Development Division, Koppal, for filing of tanks in Kushtagi Taluk of Koppal district by lifting water from Kishna River for ground water development and drinking purpose Pipeline consisting of 500 to 800 mm dia BWSC, 150 to 1250 mm dia MS and 160 to 280 mm dia HDPE pipes, construction of intake channel, jack well cum pump house with Power supply including terminal bays, laying of transmission lines etc. including civil works of the value of Rs.56,105.03 Lakhs in Karnataka.

2. State Water & Sanitation Mission, Kanpur Water Supply Scheme and various Rural Water Supply Projects in the State of Uttar Pradesh, consisting of Survey, Design, Preparation of DPR, Construction, Construction of tube well / Intake Well, WTP rising / pressure mains, CWRs, overhead tanks, distribution pipe networks, individual house connections, public stand posts, Retrofitting etc. of the value of Rs.55,000.00 Lakhs.

3. Jalgaon Medium Project Division No.2, Jalgaon for Engineering, Procurement and Construction (EPC) of Civil, Mechanical and Electrical works for Pressurised Piped Distribution Network of Varkhede Londhe irrigation Project including Operation and Maintenance of entire system for five years for CCA 8290 Ha. Tal. Chalisgaon Dist. Jalgaon consisting of 600 to 2000 mm dia PCCP Pipes for 44.45 Kms, M.S. pipes 1,122.27 M.T., 75 to 560 mm dia HDPE Pipe for 251.06 Kms. Construction of Pump house, 11/3.3kv switchyard etc. along with allied works of the value of Rs.49,503.87 Lakhs in Maharashtra.

4. Municipal Corporation Madurai for dedicated Water Supply Scheme for Madurai Corporation from Mullai Periyar River at Lower Camp including Head works, Raw Water Pipeline Package-1 consisting of 1067 to 1118 mm dia MS pipes for 95,740 Mtrs. including Intake Well - 3 M Dia - 1 No, Collection Well Cum Pump-House and Coffer-Dam Arrangements- 1 No, Pipe Carrying Bridges for River Crossing - 7 nos Electro Mechanical works of the value of Rs.35,753.42 Lakhs in Tamilnadu.

5. Water Resources Investigation Division, Palanpur, (Narmada Water Resources, Water Supply & Kalpsar Department), Gujarat for the work of Engineering, Procurement and Construction (EPC) Contract for Lift Irrigation M.S pipeline project for transmission of 200 cusecs of water from N.M.C. Chainage 431.200 Km near Tharad to Sipu Dam for Package 1 from Head Works at Tharad (Mahajanpura Village) to Head Works at Ramsan Village with Intermediate Head Works at Madal Village consisting of 2,024 mm dia MS pipes for 43.380 Kms and 315 mm dia HDPE pipes for 72.045 Kms of the value of Rs.34,076.82 Lakhs in Gujarat.

6. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur- Prithviraj Nagar Water Supply Project Phase-I, Stage-I Consisting of 700 to 2300 mm dia MS, 100 to 600 mm dia DI and 110 to 200 mm dia HDPE Pipes including Clear Water Reservoir : 10 Nos (2000 KL to 36000 KL) Over Head Service Reservoir : 19 Nos (1000 KL to 2500 KL) Pumping Station with Chlorination Room:- 9 nos PLC & SCAdA System of the value of Rs.29,550.63 Lakhs in Rajasthan.

7. Municipal Corporation Madurai, for dedicated Water Supply Scheme for Madurai Corporation from Mullai Periyar River at Lower Camp Construction of Distribution Network System (DI & HDPE), House Service connections, and Instrumentation Package-IV consisting of 250 to 400 mm dia DI K7 pipes - 68.62 Km, 110 mm to 200 mm dia HDPE (PN-6) Pipes - 786.37 Km, 20 mm to 32 mm House service connection-1,18,583 Nos Electro Mechanical works of the value of Rs.25,759.79 Lakhs in Tamilnadu.

8. Madhya Pradesh Jal Nigam Maryadit for Indwar-I Multivillage Rural Water Supply Scheme in Umariya and Katni District consisting of 100 to 800 mm dia DI (K-7) Pipes for 257.23 Km, 600 mm dia DI (K9) pipes for 51.24 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 1674.34 km including Intake well 35.90 MLD, Water Treatment Plant 29.10 MLD, Overhead Tank 66 Nos. (100 KL to 500 KL) and 42,698 Nos. House Service Connection of the value of Rs.24,502.61 Lakhs in Madhya Pradesh.

9. State Water and Sanitation Mission, Lucknow, Uttar Pradesh for Construction of Kuraicha Group of Villages Water Supply Scheme, District - Jhansi (Based on Surface Water) consisting of DI K9 150 to 600 mm dia for 1,37,713 mtrs, DI K7 pipes 100 to 300 mm dia for 2,25,840 mtrs and GI pipes 50 to 80 mm dia for 3,16,871 mtrs including operation and maintenance of the value of Rs.23,826.49 Lakhs.

10. Madhya Pradesh Urban Development Co. Ltd., for Bhedaghat Water Supply Scheme consisting of 150 to 200 mm dia DI K7 pipes for 10.95 KM, 100 to 600 mm dia DI K9 pipes for 148.06 Km and 110 to 315 mm dia HDPE Pipes for 328.44 KM including Intake Well 27.93 MLD, water treatment plant 31 MLD, overhead tanks 13 Nos. (120 KL to 920 KL) and 32,066 Nos. House Service Connections of the value of Rs.21,802.53 Lakhs in Madhya Pradesh.

11. Water Resources Investigation Division, Palanpur, (Narmada Water Resources, Water Supply & Kalpsar Department), Gujarat for the work of Engineering, Procurement and Construction (EPC) Contract for Lift Irrigation M.S pipeline project for transmission of 200 cusecs of water from N.M.C. Chainage 431.200 Km near Tharad to Sipu Dam for Package 2 from Head Works at Ramsan Village to Sipu Dam consisting of 2,028 mm dia M.S. pipes for 25.34 Kms and 315 mm dia hDpE Pipes for 38.46 Kms including Electro-mechanical and instrumentation works of the value of Rs.21,062.67 Lakhs in Gujarat.

12. Public Health & Municipal Engineering Department, Ananthapuramu, Andhra Pradesh for Providing Water Supply Distribution Network, House Service Connections, AMR Meters and SCADA including Operation and Maintenance in Municipal Towns of Yemmiganur, Tmakur, Allagadda, Gudur and Nandikotkur in Kurnool District (Package - II) with Asian Infrastructure Investment Bank (AIIB) funding. Consisting of 300 to 450 mm dia DI K-7 Pipes and 110 to 250 mm dia HDPE Pipes including civil works of the value of Rs.20,450.82 Lakhs in Andhra Pradesh.

13. Minor Irrigation & Ground Water Development Division, Kalaburgi Lift Irrigation Scheme consisting of Survey, investigation, design, supply installation, testing etc., "Filling of tanks in Kalaburagi (south) taluk of Kalaburagi district by lifting water from Bennithora reservoir for ground water development and drinking purpose, comprising of head works, Construction of Approach Channel, Intake Channel, Jack Well cum Pump House, Raw Water Pumping, 300 to 100 mm dia MS Pipes and 500 mm dia BWSC pipes, laying of transmission lines. Raising main, Delivery chambers and gravity mains etc along with Pumps & Motors, Rejuvenation of Kere Bhosga & Melkunda Tank of the value of Rs.19,879.99 Lakhs in Karnataka.

14. Jalgaon Jamod & 150 Villages Regional Rural Water Supply Scheme (Retrofitting), Tq. Jalgaon Jamod & Sangrampur, Dist.Buldhana. (Under Jal Jeevan Mission). The Project comprises of PCCP pipeline of 450 to 700 mm dia of 26.34 km, 100 to 500 mm dia DI K-7 pipes of 253.83 Km, MS Pipeline of 450 mm to 800 mm dia of 1.90 Km of the value of Rs.19,402.90 Lakhs for Maharashtra Jeevan Pradhikaran, Maharashtra.

15. Municipal Corporation Bilaspur, Chhattisgarh for Bilaspur Water Supply Scheme part-I consisting of 1,500 mm dia MS pipes, 300 to 1100 mm dia DI K7 pipes and 700 to 900 mm dia DI K9 pipes including water treatment plant, overhead tanks of the value of Rs.19,232.28 Lakhs in Chhattisgarh.

16. Madhya Pradesh Jal Nigam Maryadit for Naharayi Multi village Rural Water Supply Scheme in District Bhopal & Vidisha consisting of 100 to 500 mm dia DI (K-7) Pipes for 187.732 Km, 100 mm to 350 mm dia DI (K9) pipes for 16.440 Km and 63 to 200 mm dia HDPE (PN-6) Pipes for 478.757 km including Intake well 28.32 MLD, Water Treatment Plant 21.50 MLD, Overhead Tank 28 Nos. (50 KL to 400 KL) and 12,737 Nos. House Service Connection of the value of Rs.17,739.00 Lakhs in Madhya Pradesh.

17. For supply, laying, jointing & testing of DI Pipes from 100 mm to 600 mm dia for length of 7,10,062 Mtrs, 762 mm to 1,800 mm dia MS Pipes for length of 23,959.82 Mtrs. and DI Specials, Valves etc. and connected civil works of the value of Rs.17,628.79 Lakhs, for Byatarayanapura WSS, for Bangalore Water Supply & Sewerage Board, Bangalore in Karnataka.

18. Public Health Engineering Department, Jaipur, Region-II, for Bisalpur Jaipur Water Supply Project Stage-II, Phase-I, including Construction of WTP having capacity of 216 MLD extendable to 360 MLD at Surajpura Construction of Pumping Station-2 nos. Clear Water Reservoirs having capacity of 30 MLD at Renwal-2 nos. Construction of 150 KL Capacity RCC underground Sump for collection of recycled water. PLC & SCADA System at WTP and Pump Houses conducting of Surge Analysis Solar Power Generation System of the value of Rs.17,315.58 Lakhs in Rajasthan.

19. M/s Laxmi Civil Engineering Services Pvt. Ltd., for supply of 1700 mm dia PCCP pipes to Jath Lift Irrigation Scheme, Dist. Sangli of value of Rs.16,552.00 Lakhs in Maharashtra State.

20. Municipal Corporation Raipur, Chhatisgarh for Raipur Water Supply Scheme consisting of 100 to 600 mm dia DI K7 pipes and 200 to 500 mm dia DI k9 pipes including water treatment plant, overhead tanks and 12,466 Nos. House Service Connections of the value of Rs.15,654.79 Lakhs in Chhatisgarh.

21. Construction of Piped Distribution Network (PDN) for Palashi Branch, Vadjal Branch, Dy-1, Dy-2 & Minor No.1 to 18 on Man Canal of Urmodi Irrigation Project consisting 600 mm to 1600 mm dia PCCP Pipes of 24.66 Kms, 350 mm to 500 mm dia BWSC Pipes of 45.32 Kms, 110 mm to 315 mm HDPE Pipes of 344.30 Kms and allied civil works accepted tender cost of 15,430.15 Lakhs for Maharashtra Krishna Valley Development Corporation, Maharashtra.

22. Madhya Pradesh Jal Nigam Maryadit for Kandaila Multi village Rural Water Supply Scheme in Rewa district consisting of 100 to 500 mm dia DI (K-7) Pipes for 120.02 Km, 450 to 600 mm dia DI (K9) pipes for 8.88 Km and 90 to 280 mm dia HDPE (PN-6) Pipes for 868.05 km including Intake well 25.4 MLD, Water Treatment Plant 20.6 MLD, Overhead Reservoirs, House service connection 19,633 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.14,520.07 Lakhs in Madhya Pradesh.

23. The Public Health Circle, Ananthapuramu for Tadipatri Water Supply Improvement Scheme with Gandikota Reservoir as source and performance based O & M for 7 years including defect liability period 2 years under AMRUT scheme. Consisting of 150 to 800 mm dia DI K9 pipelines of the value of Rs.13,554.56 Lakhs in Andhra Pradesh.

24. Gajapati Water Supply Scheme for Rural Piped Water Supply Projects pertaining to Kasinagar & Gumma block of Gajapati District consisting of DI K9 100 to 400 mm dia for 94,799 mtrs, DI K7 pipes 200 to 250 mm dia for 37,937 mtrs and HDPE pipes 90 to 160 mm dia for 2,56,833 mtrs including operation and maintenance of the value of Rs.13,482.10 Lakhs in Odisha.

25. Asolamendha Project Renovation Division No.1, Mul, Dist. Nagpur for creation of Irrigation Potential 9219 Ha. by providing irrigation facility to CCA 7348 Ha.by Construction of Earth Work, Structure and Lining in Km. 1 to Km. 3 and Pipe Distribution Network in Km. 3 to Km. 16.32,Dewada Sub Branch and Network in Km. 1 to 16.32 of Gowardhan Branch on Asolamendha Project consisting of 63 to 315 mm dia - HDPE Pipes - 494.66 Kms, 350 to 600 mm dia HDPE Pipes- 33.55 Kms, 700 to 1700 mm dia PCCP Pipes- 23.96 Kms, 2000 mm dia-1.70 Kms & 2300 mm dia - 3.93 Kms M.S.Pipes of the value of Rs.13,307.74 Lakhs in Maharashtra.

26. Municipal Corporation Raipur, Chhattisgarh for Augmentation of Raipur Water Supply Scheme Phase-II Package-V consisting of 100 to 500 mm dia DI K7 pipes for 341.10 km and 500 to 800 mm dia DI K9 pipes for 5.79 km including allied civil works and 40,281 Nos. House Service Connections of the value of Rs.12,686.18 Lakhs in Chhatisgarh.

27. Madhya Pradesh Jal Nigam Maryadit for Bankpura Multivillage Rural Water Supply Scheme in Rajgarh District consisting of 100 mm to 450 mm dia DI (K-7) Pipes for 189.30 Km, 100 mm to 450 mm dia DI (K9) pipes for 32.04 Km and 90 mm to 225 mm dia 446.25 Km for HDPE (Pn-6) Pipes including Intake well 17.98 MLD, Water Treatment Plant 14.75 MLD, Overhead Reservoirs 58 Nos. and House service connection 22,680 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.12,509.69 Lakhs in Madhya Pradesh.

28. Madhya Pradesh Jal Nigam Maryadit for Gadakota Multi village Rural Water Supply Scheme in Sagar district consisting of 100 to 450 mm dia DI (K-7) Pipes for 160.38 Km, 100 to 450 mm dia DI (K9) pipes for 12.32 Km and 90 to 200 mm dia HDPE (PN-6) Pipes for 626.34 km including Intake well 18.27 MLD, Water Treatment Plant 15.21 MLD, Over head Reservoirs, House service connections 16,200 Nos. Clear Water Pumping Mains and allied civil works of the value of Rs.12,321.73 Lakhs in Madhya Pradesh.

29. The Public Health Circle, Nellore for Ongole Municipal Corporation Water Supply Improvements Scheme, aMrUT project consisting of 200 to 450 mm dia DI pipeline, 110 to 315 mm dia HDPE pipeline, 1200 mm dia MS Pipeline and 500 mm dia BWSC pipeline of the value of Rs.12,256.62 Lakhs in Andhra Pradesh.

30. Korba Municipal Corporation, Korba for Water Supply Scheme to Korba consisting of DI & PCCP Pipes, Raw Water pumping Main of the value of Rs.11,606.01 Lakhs in Chhattisgarh.

31. J. C. Nagi Reddy Drinking Water Supply Scheme in Ananthapuramu District (Phase-IV) in Andhra Pradesh consisting of 350, 800 & 900 mm dia BWSC pipes of the value of Rs.11,335.89 Lakhs for Rural Water Supply & Sanitation Department in Andhra Pradesh.

32. Public Health Engineering Department, Jahazpur JJM, for Chambal Bhilwara Water Supply Project Phase II Consisting of 100 to 250 mm dia DI and 75 to 225 mm dia HDPE Pipes including Clear Water Reservoir : 3 Nos (50 KL to 100 KL) Over Head Service Reservoir : 14 Nos (75 KL to 250 KL) Pumping Station with Chlorination Room:- 1 nos HSC:- 32,990 nos PLC & SCADA System of the value of Rs.11,000.93 Lakhs in Rajasthan.

33. Municipal Corporation Raipur, Chhattisgarh for Augmentation of Raipur Water Supply Scheme Phase-II Package-IV consisting of 100 to 600 mm dia DI K7 pipes for 303.66 km and 200 to 500 mm dia DI K9 pipes for 10.31 km including allied civil works and 23,758 Nos. House Service Connections of the value of Rs.10,736.26 Lakhs in Chhatisgarh.

34. Solapur Irrigation Division, Solapur for construction of Pipe Distribution Network for Main Canal Stage-1 & 2 of its Minors & Sub Minors on Dahigaon Lift Irrigation Scheme Tal- Karmala consisting of 700 to 1000 mm dia PCCP pipes for 12.06 kms and 90 to 630 mm dia HDPE pipes for 285.70 Kms and 63 to 250 mm dia PVC Pipes for

7.57 Km and allied civil works of the value of Rs.10,629.18 Lakhs in Maharashtra.

35. Buldhana Water Supply Scheme for RCC Design, Construction, Commissioning and Trial Run for Buldhana & 4 Village Water Supply Scheme. The Project comprises of PCCP pipeline of 600 to 800 mm dia for 27.18 km of the value of Rs.10,537.62 Lakhs for Maharashtra Jeevan Pradhikaran, Maharashtra.

36. S4D for manufacture, supply, laying, jointing & testing of RCC NP3 class pipes from 300 to 1800 mm dia for 13,074.05 Mtrs and MS Casing Pipes of 1800 mm, 2000 mm and 2200 mm dia for length of 220 Mtrs for Trenchless works of the value of Rs.9,076.41 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

37. Chilhewadi Pipeline project of PCCP pipeline of 900-1500 mm dia for 28.11 Km and BWSC Pipeline of 350-800 mm dia for 9.14 km including 1500 mm dia MS Pipeline for Crossing River and nallah of the value of Rs.9,012.72 Lakhs for Maharashtra Krishna Valley Development Corporation, Maharashtra.

38. Municipal Corporation Bilaspur, Chhattisgarh for Bilaspur Water Supply Scheme part-II consisting of 100 to 500 dia DI K7 pipes including 56,251 Nos. House Service connection of the value of Rs.8,690.63 Lakhs in Chhattisgarh.

39. S4B for manufacture, supply, laying, jointing & testing of RCC NP3 class pipes from 300 to 1400 mm dia for 23,775.75 Mtrs, DWC SN8 Pipes of 400 mm dia and 600 mm dia for length of 2,227.80 Mtrs and 831 Mtrs length of 900 to 1800 mm dia MS pipes for Trenchless works of the value of Rs.8,519.99 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka.

40. Madhya Pradesh Jal Nigam Maryadit for Kerwa Multi village Rural Water Supply Scheme in District Bhopal consisting of 150 to 350 mm dia DI (K-7) Pipes for 120.639 Km, 200 mm to 350 mm dia DI (K9) pipes for 20.912 Km and 63 to 250 mm dia HDPE (PN-6) Pipes for 179.273 km including Intake well 16.70 MLD, Water Treatment Plant 11.30 MLD, Overhead Tank 14 Nos. (50 KL to 250 KL) and 8,842 Nos. House Service Connection of the value of Rs.8,080.24 Lakhs in Madhya Pradesh.

41. Asolamendha Project Renovation Division No.1, Mul, Dist. Nagpur for creation of Irrigation Potential 4551.34 Ha. By Providing Irrigation facilities by Design and Construction of Pipe Distribution System on Dighori Branch Canal on Asolamendha Main Canal of Gosikhurd consisting of 700 to 1000 mm dia PCCP Pipes for 13.63 kms, 350 to 600 mm dia DI K-7 pipes for 24.48 kms and 63 to 315 mm dia PVC pipes for 507.43 kms of the value of Rs.7,813.96 Lakhs in Maharashtra.

42. For Supply, Laying, Jointing & Testing of DI K-9 Class Pipes from 100 mm to 600 mm dia for a length of 64,544 Mtrs., 508 mm & 900 mm dia MS Pipes for length of 570 Mtrs. for Trenchless Works and DI Specials, Valves etc. and connected civil works of the total value of Rs.5,707.68 Lakhs, for the Work of Providing Water Supply Facilities to Phase-1 of Arkavathi BDA Layout, for Bangalore Water Supply & Sewerage Board, Bangalore in Karnataka.

43. M/s Koya & Company Construction Limited, Providing Drinking Water and Irrigation Facilities to 68 tanks in the upland areas of Kurnool District from Left Side to HNSS main Canal - Phase-I. Consisting of PSC & RCC Pipes 500, 600, 900 & 1100 mm dia x 06 KSC PSC 500 mm dia P2 RCC of value of Rs.5,584.17 Lakhs in Andhra Pradesh.

44. Gosikhurd Left Bank Canal Division, Wahi (Pauni), Dist. Bhandara for Execution of Pauni Lift Irrigation Scheme consisting of 600 to 1400 mm dia PCCP pipes for 15.735 kms, 63 to 315 mm dia PVC pipes for 59.024 kms and 350 to 600 mm dia DI Pipes for 9.63 kms and Construction of Pump House, Delivery Chambers, etc. along with allied works of the value of Rs.5,540.71 Lakhs in Maharashtra.

45. Asolamendha Project Renovation Division Saoli for construction of pipe distribution network on Kapsi sub branch of Asolamendha Project consisting of 63 mm to 315 mm dia PVC pipes of

361.57 Kms, 350 to 600 mm dia DI K-7 pipes of 33.44 kms and 700 to 1200 mm dia PCCP pipes of 3.29 kms and allied civil works of the value of Rs.5,381.35 Lakhs in Maharashtra.

46. Municipal Corporation, Tirupati Municipal Corporation under AMRUT Scheme for providing Sewerage Network and Sewerage House Service Connections, Construction of 500 KLD consisting of DWC & RCC pipelines including civil work of the value of Rs.5,297.47 Lakhs in Andhra Pradesh.

47. M/s Koya & Company Construction Limited, Construction and commissioning on turnkey basis of Bonthu - Saravakota - Kothuru L. I. Scheme on Mahendratanya River in Saravakota Mandal of Srikakulam District PSC, consisting of RCC & PVC Pipelines MS Pipeline - 2.54 Kms, PSC Pipeline - 14.70 Kms, RCC Pipelines - 4.00 Kms and PVC Pipelines - 20.00 Kms of the value of Rs.5,061.25 Lakhs in Andhra Pradesh.

(iii) Some of the New Orders secured by the Company valued more than Rs.5,000 Lakhs each during the year are:-

1. Rural Water Supply & Sanitation, Odisha for Execution of 4 Nos. Individual Rural Piped Water Supply Project pertaining to Astaranga, Gop, Kakatpur, Delang, Puri Sadar and Satyabadi block of Puri District including 5 years O&M on EPC contract under the package" on EPC contract consisting of DI K9 Pipeline - 82.00 Kms, DI K7 & HDPE Pipeline - 1,562.00 Kms, Construction of WTPs and CW Pump House 16.5 MLD to 40 MLD, Rapid Intake well cum pump house, ELSRs, Sumps, Grid connected solar plan 700 KWp, electro mechanical items, SCADA, house service connections, etc. of the value of Rs.63,916.28 Lakhs in Odisha.

2. Jalgaon Medium Project Division No.2, Jalgaon for Engineering, Procurement and Construction (EPC) of Civil, Mechanical and Electrical works for Pressurised Piped Distribution Network of Varkhede Londhe irrigation Project including Operation and Maintenance of entire system for five years for CCA 8290 Ha. Tal. Chalisgaon Dist. Jalgaon consisting of 600 to 2000 mm dia PCCP Pipes for 44.45 Kms, M.S. pipes 1,122.27 M.T, 75 to 560 mm dia HDPE Pipe for 251.06 Kms. Construction of Pump house, 11/3.3kv switchyard etc. along with allied works of the value of Rs.49,503.87 Lakhs in Maharashtra.

3. The Public Health Circle, Warangal for Water Supply Projects in 30 ULBs & Sewerage Projects in 03 ULBs under AMRUT 2.0 under the jurisdiction of Adilabad, Karimnagar & Warangal PH Divisions Package - 1. The project consist of construction of Sewerage Treatment Pants, Wet wells, RcC, DI K7 & K9 Pipelines, ELSRs, Inspection chambers,HouseSewerConnecfions,Bulkflowmeters,compoundwall, staff quarters, etc. under M/s AMRIL-SCPL-IHP (JV). The total value of work is Rs.1,13,776.52 Lakhs out of which IHPs share is Rs.22,755.30 Lakhs in Telangana.

4. M/s Laxmi Civil Engineering Services Pvt. Ltd., for supply of 1700 mm dia PCCP pipes to Jath Lift Irrigation Scheme, Dist. Sangli of value of Rs.16,552.00 Lakhs in Maharashtra State.

5. Solapur Irrigation Division, Solapur for Construction of Pipe Distribution Network for Main Canal Stage-1 & 2 of its Minors & Sub Minors on Dahigaon Lift Irrigation Scheme Tal- Karmala consisting of 700 to 1000 mm dia PCCP pipes for 12.06 kms and 90 to 630 mm dia HDPE pipes for 285.70 Kms and 63 to 250 mm dia PVC Pipes for 7.57 Km and allied civil works of the value of Rs.10,629.18 Lakhs in Maharashtra.

6. For manufacture, supply, laying, jointing & testing of RCC NP3 Class pipes from 400 mm, 2000 mm, 2200 mm and 2400 mm dia for a total length 5,290 Mtrs,, 50 Mtrs. of 2600 mm Dia X 20 mm Thick MS Pipes and 25 Mtrs. of 2800 mm Dia X 20 mm Thick MS Pipes and other connected Civil Works, total value of Rs.7,000 Lakhs for Bangalore Water Supply & Sewerage Board, Bengaluru in Karnataka

(B) Bar Wrapped Steel Cylinder (BWSC) Pipes/Prestressed Concrete Cylinder Pipes (PCCP)/ Prestressed Concrete Pipes (PSC):

The BWSC and PCCP pipes introduced by the Company as an alternative pipe materials to M.S. and D.I. pipes have become popular amongst various Government authorities. The Company has undertaken / is undertaking several projects involving BWSC & PCCP pipes. To meet the demand of these pipes, the Company had specially set up manufacturing plants at Choutuppal in Telangana, Chilamathur in Andhra Pradesh, Dhule and Walwa in Maharashtra. In addition to the above, the Company has also created facilities to manufacture these pipes in its existing factories at Rajkot, Kanhan, Patancheru, Yelhanka, Thanjavur, Kekri, Sikar, Karari and Kovvur to cater to the local demands. During the year under review, these plants produced 55 Kms of BWSC pipes valued at Rs.2,946.02 Lakhs, 84 Kms of PCCP Pipes valued at Rs.12,766.23 Lakhs and 18 Kms of PSC Pipes valued at Rs.659.68 Lakhs.

During the year the Company has received orders worth Rs.1,622.26 Lakhs for BWSC pipes, orders worth Rs.799.67 Lakhs for PSC pipes and orders worth Rs.22,057.69 Lakhs for PCCP pipes along with other civil works.

(C) Railway Sleepers:

During the year the Company has received work orders of Rs.7,221.53 Lakhs and the Company has manufactured 1,65,237 sleepers amounting to Rs.4,788.09 Lakhs against the order(s) received from Ministry of Railways, Railway Board, New Delhi.

II. LAND DEVELOPMENT:

Hadapsar, Pune: Two phases of Residential real estate project named "Dosti Greenscape" by Dosti Realty Ltd. have been launched on revenue share basis on the Companys land at Hadapsar, Pune. The entire project consists of 12 residential towers with saleable area of 14.77 lakhs sq. ft. (approx.) RERA carpet area of 10.54 lakhs sq. ft. (approx.). Presently, 3 towers of Phase I and 2 towers of Phase II have been launched. These towers consist 507 flats with RERA carpet area of 4.37 lakhs sq. ft. (approx.). The revenue generated from the sale of the project will be shared in the ratio of 38% to the Company and 62% to M/s. Dosti Realty Ltd.

As on 12^th May, 2024, 334 flats having Sale value of Rs.246.95 crores have been booked out of which the share of the Company is Rs.93.84 crores (38%). As per schedule of payment of the buyers of flats, the Company has received advance of Rs.29.61 crores of its share of revenue.

Vadgaon, Pune: The Company has executed Development Agreement with M/s. Kalpataru Ltd. on 21^st May, 2023 for 14.74 acres land parcel at Vadgaon Pune to develop a residential project on revenue share basis. It is likely to yield a development potential of about 18 lakhs sq. ft. (approx.) of saleable area. This project is expected to be launched in phases in the financial year 2024-25, after obtaining necessary approvals from the authorities. The revenue generated from the sale of the project will be shared in the ratio of 32.50% to the Company and 67.50% to Kalpataru Ltd.

Badarpur, Delhi: The Company has executed Development Agreement with M/s. Birla Estates Pvt. Ltd. on 18^th July, 2023 for about 6.8 acres land at Badarpur, New Delhi to develop residential project on revenue share basis. It is likely to yield a development potential of about 13 lakhs sq. ft. (approx.) of saleable area. The project is expected to be launched in phases after obtaining necessary approvals from the authorities. The revenue generated from the sale of the project will be shared in the ratio of 36.50% to the Company and 63.50% to Birla Estates Pvt. Ltd.

SRA Project, Wadala, Mumbai: The development of the SRA Project of Companys land at Wadala Mumbai on area share basis are at stages of obtaining development related approvals from various Authorities.

4. Outlook:

During the last decade, Urban area limits are spreading wider and wider to peripheral areas, but at the same time, the basic amenities like Water Supply, Drainage, etc are not keeping pace with the requirement of more and more urbanization. Apart from the above, most of the rural areas in India fall short of access to drinking water.

Central Government, State Governments and local bodies are making best efforts to supply safe drinking water. Hence, number of water supply schemes are under anvil.

Har Ghar Jal (Water to Every Household) is a Scheme announced in the Union Budget 2019 by the Government of India with the aim to provide tap water to every rural household by the year 2024 at a cost of Rs.5 Lakhs Crore during 5 years.

To augment agricultural output, Lift Irrigation Schemes (LIS) are undertaken by various State Governments. Hence, number of LIS are under anvil.

Further to make cities and rural areas under more hygienic conditions and endeavour towards Swachha Bharat number of sewerage disposals and drainage schemes are also coming up.

Barring the above factors, the long term outlook for the Company in water supply, irrigation, sewerage and drainage segments is encouraging and good. The Company will keep a close watch on the evolving scenarios and will prepare itself for adapting to the changing environment.

5. Risks & Concerns:

The Companys activities and prospects largely depend on the implementation of various water supply related projects undertaken by various States / Central Government Agencies. The Company is undertaking turnkey projects of water supply schemes, irrigation and sewerage schemes of various State Governments and it depends upon their policy on approval of finance and allocation of funds as well as their ability to raise funds to undertake such water supply projects amongst various infrastructure related projects being implemented by them. Adverse changes and lack of funds, delays the work resulting in higher cost and can affect the business prospects of the industry and the Company. Severe competition from the manufacturers of alternative pipes like Ductile Iron Pipes, PVC Pipes, HDPE Pipes, and Spirally Welded Steel Pipes can affect the Companys prospects.

It is seen that manufacturing capacity is surplus for HDPE / PVC Pipes, HR Coils, TMT, M S Wires. If overseas demands are not supportive, prices in domestic market show downtrend. In the year under review, except for DI Pipes & Cement, due to sluggish overseas demand, prices decreased.

Prices of HR Coils were down by 9.5%, M S Wire down by 14%, PC Wire down by 11%.

Prices of TMT were down by 16%, HDPE & PVC Resin down by 13%, while cement prices were up by 12%.

For past 2 to 3 years, State Governments have come up with many Water Supply Projects & DI Pipes is main constituent. There is a huge gap in supply & demand of DI Pipes. This has resulted in 10% price rise in DI Pipes. Due to short & delayed supplies of DI Pipes, progress of all our projects severely affected.

6. Internal Control Systems and their adequacy:

The Company has adequate internal control procedures commensurate with its size and nature of business that ensures control over various functions of the organisation. The internal control system provides for guidelines, authorisation and approval procedures.

The internal audit reports, post audit reviews are carried out to ensure compliance with the Companys policies and procedures.

7. Financial Performance with respect to Operational Performance:

For the year ended 31^st March 2024, the Revenue from Operations of the Company was Rs.1,38,863.19 Lakhs as compared to previous year Revenue from Operations of Rs.1,54,288.46 Lakhs.

The profit before tax was Rs.10,349.38 Lakhs as against Rs.7,237.74 Lakhs achieved last year. The order book position was Rs.3,698.17 Crores as on 12^th May, 2024 as compared to Rs.3,112.03 Crores as on 6^th May, 2023.

8. Details of significant changes of 25% or more as compared to the previous financial year 2022-23 in key financial ratios, along with detailed explanations therefor:

Please refer schedule No. 2.45 of the Notes to Financial Statements.

9. Details of any change in the Return on Net Worth as compared to the previous financial year 2022-23 along with a detailed explanation thereof:

Particulars	2023-24	2022-23	Change %
Return on Net worth*	10.18	8.28	22.99

* The improvement in the ratio is mainly due to higher profits as compared to previous year.

10. Human Resources and Industrial Relations:

The Company has total strength of 1,470 permanent employees as on 31^st March, 2024 working at various locations at Factories / Project offices / Head Office and Research & Development Division.

We believe that our employees are our most valuable asset, and investing in their development is essential to our long-term success. In 2023-24, IHP continued to prioritize training and development initiatives to enhance the skills and capabilities of human capital.

To focus on Professional development front on upskilling performance for current job and future demands we have organised various training programmes, which are tailored to the specific needs on technical topics such as Civil engineering, Electro Mechanical, automation and Techno Commercials. Have also organised programme on Health and Safety at various project sites.

11. Cautionary Statement:

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be ‘forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Companys operations include a schedule of implementation of various water supply related projects undertaken by various States / Central Government Agencies, significant changes in political and economic environment in India, exchange rate fluctuations, prices and availability of key raw materials like steel and cement, tax laws, litigations, labour relations and interest costs, etc.

	For and on behalf of the Board of Directors,
	Rajas R. Doshi
	Chairman & Managing Director
	DIN: 00050594
Place : Mumbai
Dated : 16th May, 2024