India - Highway Utilities alongside National Highways

1.Business Vision We will introduce first of its kind highway utility stations alongside the highways in India. The stations will offer all types of facilities, utilities and services that are required along the highways while establishing new standards of quality. •We will offer western quality and service but respecting the local cultural values and traditions. The aim is to offer a level of convenience to the travellers that is unmatched and at the same time offer better income opportunity to the informal sector engaged in the activity in present conditions. •We will aim to work with the Govt. for overall upgradation of the economic and physical environment with our share of contributions. 2.Market Opportunity •Road network & transport in India: –Total road network – length of around 3.3 million km; Road transport accounts for around 4.7% of GDP –80% of passenger traffic and 65% of freight carried by roads (www.nhai.org) –No of vehicles increased at a pace of 10.16% per annum in last years –National Highways – 2% of total road network that carry up to 40% of total road traffic –Total length of National highways - 4104 km , and State Highways in AP: - 14,722km Proposed utility stations are non-existent in India In the current state, no such multi-facility stations are existing along the highways in India. This presents a huge opportunity for us especially due to the multiplier factor. •Our opportunity in AP –Govt. relations –Business ease in AP state compared to other states –Identified private land banks for the implementation of phase 1 project •Our Customers: private cars, bus passengers, truck drivers, farmers, industrialists and anyone uses highways. •Total no. of utility stations that can be built in a span of 5 years 235 outlets & 10 years: 470 3.Problem & Current Solutions •Significant shortage of highway amenities on Indian highways –Restaurant and restroom facilities are offered by informal sector, where hygiene is a big concern –Petrol stations exist in isolation and the toilets provided at these stations are of very poor quality with bad maintenance –Shopping facilities are available in rare cases and lack any integrated concept with other facilities and services –The storage facilities along highways are almost non-existent. –Lack of dedicated parking bays for truck drivers to relax and refresh –Organised and sophisticated utility 4.Our advantages and scope: –First mover advantage –Competitive advantage based upon the unique design and quality –Govt. support based upon the available need and existing relations with AP Govt. –Large scope for expansion in future o India at present is strengthening its infrastructure while opening its door for foreign countries/companies to do business there. o With the highest GDP growth, the country is seen to grow rapidly and constantly on world map in coming years. 5.Risk Management Strategy •Risk Factors: The risk is minimal and associated only with maintaining quality and standards of the outlet. •Risk amount: 50% of the initial investment. •Risk mitigation: 50% of the investment can be recovered back and rest we can go for insurance cover for applicable insurance policies we take. •Exit strategy in case things go wrong Go for investment and business valuation. Raise funds and we will exit investors in first out basis as per share ratio.