–September 2008

1
BGR Energy – A Snapshot
‰ Promoted by Mr. B.G. Raghupathy (BGR) as a joint venture with GEA Energietechnik GmbH,
Germany in 1985

‰ Business predominantly in two segments, viz.,

ƒ Supply of systems and equipment; and

ƒ Turnkey engineering project contracting
‰ Accreditations

ƒ ISO:9001 Certification for three Manufacturing Units

ƒ ASME ‘U’ Stamp for two Manufacturing Units
ƒ ASME ‘S’ certification for one Manufacturing Unit
ƒ A
Approved
d by
b Indian
I di Boiler
B il Regulations
R l ti (IBR)

‰ One Joint Venture and several strategic alliances with multinational companies
to cater to Power, Oil and Gas sectors
‰ Global operations – contracts executed in 45 countries
‰ Executed more than 130 contracts abroad

‰ Orders on hand – INR 109081 Million as on 1st September 2008

2
 Proven track record in design, engineering and project management capabilities across
business divisions

‰ Power Projects Division

‰ Captive Power Division

‰ Oil & Gas Equipment Division

‰ Air Fin Cooler Division

‰ Environmental Engineering Division

‰ Electrical Projects Division

Group
p Companies
p

‰ GEA BGR Energy System India Limited

‰ Progen Systems & Technologies Limited

Joint Venture Company

‰ GEA Cooling Tower Technologies (India) Pvt Ltd

3
Business Divisions

Revenue
e e ue break
b ea up for
o
Year ended 31-March-08
Order backlog as of
1st September 2008
4%
2% Air Fin Cooler
8% 3%
Environmental 1549
21% Engineering 172 380 Air Fin Cooler
Oil & Gas Equipment
q p 132
3 3874
Electrical Projects
Power Projects
Oil & Gas
Captive Power Equipment Division
62% Electrical Projects Power Projects

102975 Environmental
Engineering
Captive Power
Total Revenue – INR 15048 Million
In INR Millions

Total Order Backlog – INR 109081 Million

4
 Received 2x600
Received 2x500 MW EPC contracts

Key Milestones
MW BOP contracts from RRVUNL for
Received from APGENCO for Kalisindh TPP
power tradingVijayawada TPP &
license Kakatiya TPP

S
Secured
d fi
firstt EPC
contract for 120
Established MW power plant in
the Project
Division
Tamil Nadu 2008 Company
GEA Listed
Energietechnik
First BOP 2007 Received 1 X
divested its stake 600 MW EPC
Technical order for a
to promoters
collaboration 95 MW CCPP 2006 contracts from
TNEB for Mettur
g
agreement with 2003 TPP
GEA Btt, France
2001 Received 1x500 MW
BOP contract from
2000 APGENCO for
Received Kothagudem TPP
Commenced as a 1x500MW BPO
JV with GEA 1998 Commenced contract from
Energetechnik operations in the MAHAGENCO for Won a contract
GmbH, Germany y 1994 oil and gas
sector
t
p
Khaperkheda TPP for Gas
Insulated
1993 Switchgear
from Hyundai
Set up Electrical Motors
1987 Collaboration Project Division
Won a contract for
l
large gas
agreement with
Progen Systems processing
Crane Set up Captive
incorporated complex from
Environment Power Division 5
SCOP, Iraq
Inc, USA
 Favorable Indian Industry Dynamics
Total installed capacity – July2008

53%

8%
3% 10%
1%
25%

Coal Gas Oil Hydro Nuclear Renewable

Total – 135,007 MW
Source: CRISIL
1000 12.0%
(Billion Units) 9.7%
8.9%
750 8.4% 9.0%
7.2% 7.3%
691 730
500 632 6.0%
559 591 624 665
519 548 579
250 3.0%

0 0.0%
2003-04 2004-05 2005-06 2006-07 2007-08
(Provisional)
Source: CEA & Min of Power AR 2007-08 Power Supply Power Demand % Deficit
Power Project
j Division
‰ Turnkey Engineering, Procurement &
Construction (EPC) and Balance of Plant
(BOP) Contracting

‰ Early adopter of BOP concept in India

‰ Order backlog of Rs.102975 Million as of

1st September 2008

‰ Possesses in-house design and

engineering capabilities, and employs
T
Total
t l IIncome ffrom P
Power P
Project
j t Di
Division
i i them to optimize project costs leading to
10000 9251 higher margins
8000
(INR milliion)

6000
3926 ‰ 40 – 50% of ‘Balance of Plant’ systems
4000
1509 1141
manufactured in-house
2000
0
FY 04 FY 05 FY 07* FY 08**
Note: * FY07 is 18 months period ended March ’07;
7
** FY08 is 12 months period ended 31st March 08
 POWER PROJECTS DIVISION - PROJECTS COMPLETED
PROJECT FUEL ORDER VALUE SCOPE
(Rs. In Million )

RRVUNL - 330 MW CCPP,

CCPP Dholpur,
Dholpur Rajasthan Gas 2095
Turnkey Engineering,
Procurement & Construction
TNEB - 95 MW CCPP, Valathur, Tamil Nadu Gas 594
of Balance of Plant including
Grasim Industries - 23 MW CPP,
CPP Chittorgarh
Chittorgarh, Rajasthan Coal 444 Civil Works

Engineering Procurement and

Aban Power - 120 MW CCPP, Karuppur, Tamil Nadu Gas 2697
Construction of the Power Plant

120 MW CCPP Aban 330 MW CCPP 23 MW CPP Grasim 8

Power, Karuppur, Tamil Nadu RRVUNL, Dholpur, Rajasthan Industries, Chittorgarh, Rajasthan
 POWER PROJECTS DIVISION - PROJECTS UNDER EXECUTION
ORDER VALUE
PROJECT FUEL SCOPE
( Rs. in Million)

RRVUNL - 2 X 600 MW Kalisindh TPS, Rajasthan Coal 49000 Engineering Procurement and
Construction of the Power Plant
TNEB - 1 X 600 MW Mettur TPS, Tamil Nadu Coal 31000

APGENCO - 500 MW Kothagudem TPS, Andhra Pradesh Coal 7930

Turnkey
T k Engineering,
E i i
MAHAGENCO-500 MW Khaperkheda TPS, Maharashtra Coal 9,980
Procurement & construction of
APGENCO - 500 MW Kakatiya TPS, Andhra Pradesh Coal 6,949 Balance of Plant, Including Civil
Works
APGENCO - 500 MW Vijayawada TPS, Andhra Pradesh Coal 5,788

Vijayawada Thermal Power Kakatiya Thermal Power Station 9

Station (Under Construction) (Under Construction)
Orders to be finalized in the near term

Location Owner Size (MW) Fuel Scope

1800
Koradi , Maharastra MAHAGENCO Coal EPC
(3X600)

Uran Maharashtra
Uran, MAHAGENCO 1150 Gas EPC

Chabra, Rajasthan RRVUNL 500 Coal BOP

1200
Malwa, Chattisgarh MPPGENCO Coal BOP
(2 x 600)

500
Satpura, Chattisgarh MPPGENCO Coal BOP
(2 x 250)

1600
Krishnapatnam, AP APGENCO Coal BOP
(2x800)

TOTAL 6750 MW
10
Captive
p Power Division
‰ Established in 2006 to address the growing
demand for industrial captive power plants
and p
public utility
ypprojects
j in India up
p to
150 MW

‰ Executes Turnkey EPC contracts

‰ Captive Power Plants for industries like

Steel, Cement, Textiles, Paper, Pharmacy,
Refinery Chemical,
Refinery, Chemical Petrochemical,
Petrochemical Metallu
rgical etc

‰ Coall Based
d Power Plants,
l Combined
bi d Cycle
l
MALCO Project, Mettur, Tamil Nadu Power Plants
(Under construction)

‰ Contributed Rs.3190 Million to the

turnover for the year ended 31st March
2008

11
Electrical Projects
j Division
‰ Established in 2003 to support existing
business by supplying Electrical Systems
and Equipment for Power stations,
Refineries
fi i andd Petrochemical
h i l operations.
i

‰ Turnkey solutions for:

ƒ EHV S
Substations
b i
ƒ EHV Transmission Lines
ƒ Plant Electricals
ƒ G IInsulated
Gas l t dSSwitchgear
it h Substations
S b t ti
ƒ Optical Fiber Communication Network
– OPGW, ADSS & OLTE

Total Income from Electrical Projects Division ƒ Rural Electrification

700 590
‰ Electrical Balance of Plant for Thermal /
525
Hydro
y & Nuclear Power Projects
j
on)

356
(INR millio

350

175
‰ Power Trading – Category ‘F’ Licensed
0
FY 07* FY 08**
‰ Order Backlogg Position as on 1st September
p
Note: * FY07 is 18 months period ended March ’07; 2008 is Rs. 380 Million
12
** FY08 is 12 months period ended 31st March 08
 ELECTRICAL PROJECTS DIVISION - PROJECTS UNDER EXECUTION
ORDER VALUE
PROJECT SCOPE
(Rs in Million )
(Rs.

Nuclear Power Corporation of India (NPCIL) Design, Engineering, Supply Erection, Testing and
255
A/c BHAVINI, Kalpakkam Commissioning of Power Distribution Stem

Design, Engineering, Supply Erection, Testing and

Commissioning of Optical Power Ground Wire Cables
Tamil Nadu Electricity Board 197
(OPGW) and Optical Line Termination Equipments
(OLTE ) and
(OLTEs) d System
S t Integration
I t ti

Supply & Erection on Partial Turnkey Basis, Including

Karnataka Power Transmission Corporation
209 Civil Works pertaining to Substation & Associated
Limited
transmission lines
l in Kolar
l & Rurall Bangalore
l

Supply & Erection on Partial Turnkey Basis, Including

Karnataka Power Transmission Corporation
198 Civil Works pertaining Substation & Associated
Li it d
Limited
transmission lines in Kolar

VA Tech Hydro India Ltd - Teesta Low Dam

Design, Manufacture, Supply, Erection and
III Hydro Electric Project, Siliguri, West 351
C
Commissioning
i i i
Bengal
13
 ELECTRICAL PROJECTS DIVISION - PROJECTS COMPLETED

ORDER VALUE
PROJECT SCOPE
( Rs. in Million)
Jodhpur Vidyut Vitran Nigam Limited , Supply Erection,
Supply, Erection Testing and Commissioning of
217
Jodhpur 11 KV line, LT Line & Substation
Indira Gandhi Centre for Atomic Research, Supply, Erection, Testing and Commissioning –
8
Kalpakkam Providing Bulk Power
Supply, Erection, Testing and Commissioning of
Hyundai Heavy Industries Ltd, Chennai 15 230/11 kv Gas Insulated Substation, LT Cables
and Earth Slips

95 MW CCPP 230/ 11kv Gas Insulated Substations 14

Substation, Valathur, Tamil Nadu Substation, Hyundai , Chennai
Oil & Gas Equipment
q p Division
‰ Products and turnkey services for the Oil & Gas industry,
which includes

ƒ G C
Gas Conditioning
di i i & Metering
i Skid

ƒ Storage Tanks

ƒ Pipeline Pig Launching & Receiving System

ƒ Gas Processing Complex

Gas Compressor Package ƒ Gas Compressor Package

Jubail Oil Chemicals
ƒ Hydrogen Gas Compressors for Jubail Oil Chemicals,
Saudi Arabia

ƒ Booster Compressor for TNEB, Valathur

ƒ CNG Compressors for Maulana & Sons, Sonergan,
Bangladesh
‰ Received three export orders from the State Company for
Oil Projects (SCOP) in Iraq for US$ 103.89 Mn

‰ Order backlog of Rs.3874 Million as of 1st September 200815

Air Fin Cooler Division
‰ Turnkey supply of Air Cooled Heat Exchangers for oil
&ggas p
processes and ppower sector industries

‰ Capable of producing all three variations of finned

tubes – embedded, extruded and welded finned tubes

‰ Certified by ASME with “U”, “U2” & “R” stamp

Air Cooled Heat Exchanger

‰ Key markets are in India, the Middle East, Southeast

Asia and North Africa

‰ List of clients include Samsung Engineering, Hyundai

Heavy Industries, Reliance and L&T

‰ Turnover of Rs.1274 Million for Year ended 31st

March 2008

‰ Order
d b backlog
kl off Rs.1549 Million
illi as off 1stt September
b
Air Cooled Heat Exchanger, 120MW 2008 16
CPP Karuppur, Tamil Nadu
Environmental Engineering
g g Division
‰ Product range includes:
ƒ Deaerators
ƒ Effluent Treatment & Recycling Plants leading to zero
discharge
ƒ Water Treatment Plants (Pre-Treatment & DM Plant)
ƒ RO b
based
dDDesalination
li ti Plants
Pl t

‰ Supplied on turnkey basis the largest ever Deaerator in

India for NPC (Tarapur) with capacity of 3,013 TPH

Deaerator – National Power ‰ Presently executing Deaerators for Supercritical 3 x 660

Corporation , Tarapur MW NTPC, SIPAT Power Plant

‰ Six large
large-size
size Deaerators for Hyundai Heavy Industries,
Industries
Korea for Marfiq, Saudi Arabia project under execution

‰ Sold over 90 Deaerators in India, Asia, Middle East and

Africa ranging in capacity from 10 TPH to 3,103
Africa, 3 103 TPH

‰ Four large-size Membrane-based Effluent Recycling Plants

at Tiruppur on completion would be the largest in capacity
in India
Effluent Recycling Plant - ‰ Order backlog of Rs.132 Million as of 1st September 2008 17
Tiruppur
Key Differentiators
‰ Established in Product and Turnkey contract segments
ƒ Earlyy adopter
p of Balance of Plant concept
p in India
ƒ Executed over 130 contracts in 45 overseas countries
‰ Diverse Design & Engineering capabilities
ƒ Ability to design &manufacture customized products and projects
ƒ In-house design & engineering giving control over costs, design, delivery and completion
‰ Diverse range of product and services
ƒ Significant synergies through complementary operations
ƒ Ability to service both large and small scale projects
ƒ Project management policy & procedures enable execution of large, multifaceted, complex projects
‰ Cost Competitiveness
ƒ Control costs by optimizing product features and design, low procurement costs and maximizing labor
efficiency
ƒ Global Sourcing
‰ Technology tie-ups
ƒ Successfully tied up with several international companies and absorbed technology and know
know-how
how
In- House Bop
p Systems
y

1. Design & Engineering of Civil, Electrical and

9. Effluent Treatment Plant
Mechanical Systems

2. Civil Works including 10. Demineralization Plant

a. Chimney 11. Gas Conditioning & Metering Skid

b. Natural and Induced Draft Cooling Towers 12. Fabrication of Columns & Structures

3. Substations and Switchyards 13. Welded Finned Tubes

4. Plant Piping System 14. Heat Recovery Steam Generators

5. Air Fin Coolers 15. On load Condenser Tube Cleaning System

6. Air Cooled Condensers 16. Debris Filter

7. Deaerators 17. Rubber Cleaning Balls for Condenser

8. Desalination Plants including RO Systems

19
Strategy
gy for Rapid
p Growth

‰ Utilize p
project
j management
g skills and in-house design
g &
Focus on large BOP engineering capabilities to access the growing demand for power
contracts and projects both in India and abroad
EPC contracts ‰ Focus on competitiveness and obtain high profit margins with an
acceptable level of contractual risk

‰ Identify markets that provide cost and operational advantages

to clients
Expansion of business
‰ Synergistic acquisitions and joint ventures to expand operations
& operations
‰ Make the products truly global products with manufacturing
facilities at China, Bahrain and capacity addition at existing units.

‰ Build technological capabilities to execute large, technically

Development of complex projects and services in Oil & Gas Industries
technological
collaboration ‰ Strategic alliances or consortia or joint venture relationships for
specific projects with established International companies.
companies
20
Board of Directors
Age
S/N Name & Occupation Designation
(Years)
Mr. B.G.
M BG R Raghupathy
h th
1 55 Chairman & Managing Director
Industrialist
Mr. S. Rathinam
2 57 Director (Finance)
Company Executive
Mr. V.R. Mahadevan
3 49 Director (Technologies, HR & Infrastructure)
Company Executive
Mr. Heinrich Böhmer
4 72 I d
Independent
d t Di
Director
t
Business
Mr. M. Gopalakrishna, Retd. IAS
5 Director-In-charge, Andhra Pradesh Gas 69 Independent Director
P
Power C
Corporation
ti Limited
Li it d
Mr S.A. Bohra
6 Ex. Sr Exec. Director (Technical), 63 Independent Director
u a Power
Nuclear o Corporation
Co po a o
Mr S.R. Tagat
7 52 Independent Director
Chartered Accountant
Mrs Sasikala Raghupathy
g p y
8 52 Director
Business
21
Leadership & Professional Management
‰ The company is managed by a highly motivated team of professionals

‰ The Management of the company has broad experience in the industry

– Average industry experience of the management is more than 25 years

Industry Experience
Name Position Experience with BGR
(Years) Energy

Mr. B.G. Raghupathy Chairman & Managing Director 34 23

Mr. S. Rathinam Director (Finance) 29 16

Mr. V.R. Mahadevan Director (Technologies, HR & Infrastructure) 26 21

Mr. A. Swaminathan President & CEO, Power Projects 29 11

Major H.L. Khajuria President & CEO, Environmental Engineering 38 11

Mr. R. Ramesh Kumar President, Corporate & Secretary 21 16

Mr. G. Suresh President & CEO, Captive Power 23 20

Mr. V. Balakrishnan President & CEO, Electrical Projects 26 5

Mr. S. Ilanchezhiyan President & CEO, Air Fin Cooler 23 2

Mr N.
Mr. N Murali President & CEO,
CEO Oil & Gas Equipment 28 2

P.R. Easwar Kumar Chief Financial Officer 16 15 22

Human Resources

Particulars No. of Employees

Total Employees 1159

1 Engineers 929

i Design & Engineering 252

ii Project Management & Quality Control 554

iii Planning, Procurement and Production 87

iv Marketing 36

2 Professional Staff 162

i Finance and Accounts 76

ii Human resource, Legal, Secretarial and Systems 56

3 Others 68
23
3 Years Financials – A Snapshot
p
INR Million

Audited
Year Audited
Audited
ending period ended
% age % age Year ended % age
30.09.2005 31.03.2007
31.3.2008
(12 (18 months)
th )
months)

TURNOVER 2890 100 7751 100 15048 100

EBIDTA 272 9.41 860 11 1555 10.33

PBT 187 6.47 608 9.84 1252 8.32

PAT 132 4.56 392 5.05 844 5.60

24
Robust Financials
Total Revenues EBITDA and EBITDA margin
16000 1800 11.2% 10 54%
10.54% 12 0%
12.0%
9.9% 9.5%
1500 10.0%
7.9%

R Million
12000 1200 8.0%
Million

1605
900 6.0%
8000
INR M

INR
15228

1
600 4.0%
0%

284
212

881
161
300 2.0%
4000 7868
0 0.0%
2707 2958
1583 FY 03 FY 04 FY 05 FY 07 FY 08
0
FY 03 FY 04 FY 05 FY 07 FY 08
EBIDTA EBIDTA Margin

PAT and PAT margin Earnings per share

1000 6.0%
15 00
15.00
800 5.8%
5.1%
NR Million

4.0% 12.00
4.8% 4.6%
600 4.1%

Million
885 9.00
400
2 0%
2.0%
IN

INR M
13.24
200 400 6.00
76 112 136
0 0.0%
3.00
FY 03 FY 04 FY 05 FY 07 FY 08 4.20
1.70 2.10
0 00
0.00
PAT PAT Margin
FY 04 FY 05 FY 07 * FY 08 **
Note: * FY07 is 18 months period ending March ’07; all other FY ends on September. **FY08 is 12 months period ended 31 March 08 25
(1) Basic EPS based on consolidated restated financial statements. FY07 EPS figures are annualized
Financials – Q1 of 08-09
Total Revenues EBITDA
320
3000

240
R Million

INR Million
2000

3068 160 312

263
INR

1000 2324
80

0 0
Q1 FY 08 Q1 FY 09 Q1 FY 08 Q1 FY 09

PAT Earnings per share

200 2.50

150

INR Million
INR Miillion

1 25
1.25
100
172 2.27 2 39
2.39
147
50

0 0.00
Q1 FY 08 Q1 FY 09 Q1 FY 08 Q1 FY 09