### **Overview** Highway Infrastructure Ltd (HIL) is a rapidly growing, diversified infrastructure developer and operator with a strong presence across **EPC infrastructure**, **tollway operations**, **commercial and residential real estate**, and **emerging verticals in renewable energy and way-side amenities**. The company is strategically expanding its asset base through both organic project execution and strategic acquisitions, with a clear focus on generating **recurring, annuity-like revenue streams** and maintaining a **disciplined balance sheet**. Backed by global investment firm **KKR**, HIL operates under a robust governance and asset-light framework, leveraging digital systems, in-house capabilities, and public-private partnerships (PPP) to scale efficiently and sustainably. --- ### **Core Business Verticals** #### **1. EPC Infrastructure** - Executes large-scale projects in **highways, bridges, IT parks, irrigation, housing**, and industrial infrastructure. - Focuses on **government-led projects**, primarily under the **Hybrid Annuity Model (HAM)**, ensuring reliable payment mechanisms. - **Key Projects (Nov 2025)**: - PMAY Low-Cost Housing, Madhya Pradesh (₹147.1 Cr) - Kannod-Satwas-Punasa Road Rehabilitation (₹69.5 Cr) - Tarana-Mangliya-Vyaskhedi Highway (₹65.0 Cr) - 8-lane Access Control Expressway (LOA secured, ₹25.26 Cr) - Electric Bus Electrification Infrastructure (₹3.05 Cr) - **Project Status**: - 69 projects delivered to date - 20 projects currently under construction - 23 under-construction projects including industrial parks (₹15.5 Cr) and private developments (₹27.4 Cr) --- #### **2. Tollway Collection & Operations** - Manages toll operations on **high-traffic corridors** under contracts with the **National Highways Authority of India (NHAI)**. - Expanded from **7 to 15 toll plazas** between FY24 and FY25. - Utilizes **digital toll management systems** to minimize revenue leakage and improve operational efficiency. - Contract durations range from **90 days to one year**, providing short-to-medium-term revenue visibility. - **Key Toll Projects (Nov 2025)**: - Mokha Fee Plaza, Gujarat (₹193.3 Cr) - Delhi-Meerut Expressway (₹174.1 Cr) - Mohatara Fee Plaza, Madhya Pradesh (₹77.8 Cr) - Commenced toll collection on new expressway stretches, including: - 4-lane Greenfield Expressway (Delhi-Vadodara corridor) - Muzaina & Chotiya Fee Plazas, Uttar Pradesh --- #### **3. Commercial & Residential Real Estate** - **Commercial Real Estate**: - Generates **lease rental income** from **hospitality and commercial properties**. - Provides a **steady annuity-like revenue stream**. - Focused on **hotels, food & beverage (F&B) outlets, and retail centers**, especially along highways. - Strategic partnerships being explored to expand scale and footprint. - **Residential Real Estate**: - Follows an **asset-light model**, targeting the **mid-income housing** segment. - Delivered **over 2,600 units** to date. - Notable Projects in Madhya Pradesh: - **Karuna Sagar** – 822 flats - **New York City** – gated colony; Phase-IV launched in Indore (0.17 million sq. ft. addition) - Revenue Growth: ₹3 Cr (FY24) → ₹8 Cr (FY25), representing a **1.8x YoY increase**. --- ### **Strategic Growth Initiatives (Nov 2025)** #### **1. Way-Side Amenities & Trucker Facilities** - HIL is expanding into **comprehensive way-side amenities** along national highways, under PPP with NHAI. - Facilities include: - Fuel stations - EV charging points - Food courts, retail shops, drinking water - Parking, toilets, dormitories, vehicle repair - Medical clinics, childcare rooms, village haats, warehousing - Structure: - **40% government funding** during construction - **60% private investment** with **annuity payments** - Leverages **existing machinery, manpower, and materials**, ensuring cost-efficiency - Positioned to generate **lease income** and **commercial real estate revenue**, reinforcing the recurring income model. #### **2. Renewable Energy Focus** - Identified **renewables and EV infrastructure** as a key growth pillar. - Actively pursuing: - Solar power projects - EV charging infrastructure - Electrification of public transport (e.g., electric bus networks) #### **3. Geographic Expansion** - Expanding into high-growth states: **Assam, Gujarat, Rajasthan, Uttar Pradesh**. - Entering new markets: **Jammu & Kashmir, Bihar, Telangana, Kerala, Tamil Nadu, Daman & Diu**. - Aims to **diversify project exposure** and **reduce regional concentration risk**. --- ### **Financial & Order Book Highlights (as of Sep–Nov 2025)** - **Order Book**: ₹775 Crores (as of Sep 2025), up **46% in H1 FY26**. - EPC: ₹584 Crores - Tollway: ₹191 Crores - ₹250 Crores in new orders **expected within next 2–3 months**. - ₹150–200 Crores of EPC projects to be completed in **next two years**. - Revenue streams primarily backed by **government agencies** (high execution and payment certainty). --- ### **Key Strengths (Nov 2025)** - **Diversified Portfolio**: Balanced mix of EPC, toll, real estate, and way-side amenities. - **Annuity-Backed Revenue**: Majority of infrastructure assets (including HAM, TOT, BOT) are backed by **NHAI annuities**, ensuring stable cash flows. - **Asset-Light Real Estate Model**: Low capital intensity with high scalability. - **Digital & Operational Excellence**: - Use of **ERP (SAP), compliance automation (LegaTrix), RAMP (real-time asset monitoring), and business intelligence tools**. - Efficient management of **27+ SPVs** through integrated digital platforms. - **Experienced Leadership**: Backed by **KKR** and managed by seasoned professionals like **Mr. Hardik Shah (Partner, KKR Asia-Pacific Infrastructure)**. --- ### **Ownership & Governance Structure (as of Jun–Jul 2024)** - **Sponsor**: Galaxy Investments II Pte. Ltd. (wholly owned subsidiary of KKR Asia Pacific Infrastructure Holdings). - **KKR** holds ~**72% stake** in associated InvITs; key investors include **Ontario Teachers’ Pension Plan (OTPP)**. - **Highways Infrastructure Trust (HIT)**: - SEBI-registered InvIT, listed in August 2022. - Portfolio: 27 assets, ~8,088 lane km across 10 states. - Revenue mix: 68% toll-based, 32% annuity-based. - Credit Rating: **AAA/Stable** (CRISIL, India Ratings). - Since inception: Distributed **₹45.1 per unit** (72% tax-efficient dividends/capital repayments).