KMC Infratech Limited

Nature of the business

KMC Infratech Limited (“KMC Roads”) is the road build-operate-transfer (“BOT”) holding subsidiary of KMC Constructions Limited (“KMC Group”). KMC Group is a medium sized road construction company in India with a track record of building over 3,000km of roads. KMC Roads’ diversified, 1,224 km BOT road portfolio (with equity stakes of between 16% and 100%) comprises a mixture of annuity and toll road projects across India at various stages of development and construction, awarded under long-term concession agreements of c. 10-30 years.

Investment rationale

Indian roads are an attractive asset class; the Indian government envisages $75bn of investment towards upgrading or building roads over the next five years, largely through the Public Private Partnership (“PPP”) model.

KMC Roads had an attractive, diversified portfolio of 11 BOT road assets (3 annuity and 8 toll roads), totalling 1,224 km. The majority of projects are underpinned by long-term concession agreements where toll rates are indexed in line with inflation.

All projects are conversions of existing 2 to 4 lane roads or 4 to 6 lane dual carriageways and thus have an established traffic flow, minimising usage risk.

The promoter group has an established track record in delivering projects, having built over 3,000km of roads in India to date.