Jaypee Group was recently in the news as Abu Dhabi National Energy Company (TAQA) withdrew from the Rs 9,689-crore (enterprise value) deal signed on March 1, 2014 to acquire the former's two hydel power projects in Himachal Pradesh. After this Jaypee Group clarified that it would not affect the Group's resolve to reduce debt and unlock stakeholders´ value.
The Group has been working on a plan of debt reduction across all its business sectors owing to the slump in the economy over the past three years that rocked the industry, with maximum impact on infra companies. In line with this, JAL has recently raised $250 million successfully by qualified institutional placement (QIP). ¨We have taken divestment as part of our objectives to reduce debt and our resolve to work towards the goal remains as steadfast as ever,¨ says Manoj Gaur, Executive Chairman, Jaypee Group. He adds that the proceeds will be used judiciously to pare down debt. On capex plans, he acknowledges that for the past two years, the company has not undertaken any capex and believes there is no immediate need to do so. The Group´s focus remains strong to improve operational efficiency, enlarge its order book in engineering and construction, engage in third-party contracts, and keep taking measures to bring its debt to a level of Rs 45,000 crore by March 2015 from Rs 66,000 crore as of June 30, 2014.
The flagship company of the Jaypee Group - a Rs 20,000 crore diversified infrastructural industrial conglomerate in India - Jaiprakash Associates Ltd (JAL) is a leader in the construction of river valley and hydropower projects on turnkey basis for over four decades. In fact, JAL has participated in the development of 27 per cent of India´s installed hydropower capacity. Beginning as a civil engineering contractor, the Jaypee Group today has business interests in engineering and construction, cement, power, real estate and expressways, to name a few.
Engineering and construction
The engineering and construction wing of the Group is an acknowledged leader in the construction of multipurpose river valley and hydropower projects. It has the unique distinction of having simultaneously executed 13 hydropower projects spread across six states and neighbouring country Bhutan to generate 10,290 mw of power.
The in-house design and consultancy company, Jaypee Infra Ventures (JIV), gives JAL a competitive edge over its rivals and has been awarded CT1 grade by ICRA with CIDC (The Construction Industry Development Council). This is the highest rating assigned to consultants in the field of engineering.
The Group is a pioneer in the development of India´s first golf-centric real estate. Jaypee Greens, a world-class, fully integrated complex, features an 18-hole Greg Norman golf course. Stretching over 452 acre, it also includes residences, commercial spaces, corporate park, entertainment and nature in abundance.
The Group has entered into the construction of expressways with the Yamuna Expressway project - a 165-km, access-controlled, six-lane super expressway along the Yamuna river connecting Noida and Agra on build-own-transfer (BOT) basis. Moreover, the Group has commissioned the first RIFD technology-based electronic toll collection plaza and four-lane Zirakpur-Parwanoo section of NH-5, the Himalayan Expressway, from 39.96 km to 67.55 km in the states of Punjab, Haryana and Himachal Pradesh. Indeed, transforming challenges into opportunities has been the hallmark of the Jaypee Group since inception.
Major projects undertaken:
Range of projects handled: Jaypee Group undertakes projects involving Large quantities of rock excavation (both surface and underground), controlled earth/rock fill, concrete manufacture and placement (including chilling), fabrication and erection of penstock liners, hydro-mechanical equipment procurement and erection, steel structures, expressway construction, real estate development
Accolades and awards received (2013-14):
JAL has received the award for the Second Fastest Growing Construction Company (Large Category) at the 11th Annual Construction World Global Awards 2013.