Infrastructure Advisory Services

Infrastructure Advisory Services

KPMG helps India make that transformation in every way, working closely with the Government and the private sector across energy and natural ...

Our value proposition for private and public infrastructure business include...

India’s emergence as an economic superpower is predicated upon transforming its basic infrastructure. The impetus is now towards rapid industrialization and infrastructure development where the government and the private sector players are looking to work in a cohesive manner. KPMG helps India make that transformation in every way, working closely with the Government and the private sector across energy and natural resources, transport, health, and social infrastructure. The group brings with it an in-depth sector and domain knowledge and works with clients to enable transformation through the entire lifecycle of the asset. Our value proposition for private and public infrastructure business include:

Sectors
Energy and natural resources practice
Power and utilities practice
Oil and gas practice
Mining practice
Transport practice 
Aviation and defence practice 

   

Services
Strategy and business planning services
Regulatory and policy advisory services
Economic consulting services
PPP and transaction advisory services
Major projects advisory services
Operations improvement and asset management services
Financial modeling services
Deal advisory services

Sectors

Energy and natural resources (ENR) practice

With energy being one of the key engines of growth in an economy—India’s included— as the country targets a USD20 trillion GDP, the growth of this sector becomes crucial. To achieve energy security, the government has outlined a vision to increase domestic fuel (coal, oil, and gas) production, diversify the fuel supply base and promote energy efficiency, centered on sustainability and affordable tariffs to consumers. This change offers numerous opportunities, and also presents challenges to stakeholders across the ENR value chain.

The ENR team at KPMG in India spends a lot of time studying the real time challenges that the government, investors and the private sector participants face, and the opportunities these challenges present. We work extensively on the energy sector especially in power and utilities, oil and gas, and mining. We offer clients a suite of offerings in deal advisory, strategy and business planning, economic consulting, Public Private Partnership (PPP) and transaction advisory services, major projects advisory services, operations improvement and asset management, and financial modeling across the value chain. We also work extensively with the government at the national and state levels as well as regulatory bodies to shape sector policies and regulations.

Power and utilities practice

The market reforms starting with Electricity Act 2003 has paved the way for increased competition and the concept of power for all. This changing landscape now drives the strategies of the power players in areas of asset management, operational improvement, service delivery, technology upgradation and enhanced customer engagement. Renewable energy is getting closer to mainstream as compared to its hitherto alternative source of energy outlook along with the emergence of new challenges in its wake. The entire sector landscape is dynamic and complex. The complexity of these projects require a bespoke approach which our experts specialise in.

KPMG in India is well aligned to this evolving market and works closely with leading players in the power and utilities space in the private as well as public sector. We provide advisory services in business unit strategy and corporate strategy formulation, implementation and evaluation, organisational restructuring and institutional design, operations and asset management, effective cost management, tariff modeling and economic consulting. 

Oil and gas practice

The oil and gas sector is one of the core industries in India and is a major influencer for the other sections of the economy. Backed by new oil fields, the domestic oil output is anticipated to grow, at the same time this sector faces the challenge of burgeoning needs. The subsector landscape in terms of potential clients for KPMG in India comprises of government and commercial oil companies, renewable energy companies, oil field service firms, private equity investors and Engineering Procurement Construction (EPC) companies. The continued population growth has led to challenges such as unprecedented energy consumption and demand estimation, and new projects require long lead times. Our team of specialists bring in depth industry experience to the table and our experts are close monitors of industry trends. KPMG in India provides advisory services around strategy design and business planning, policy and regulatory advisory, financial advisory, operational effectiveness, organisational structuring and design, deal advisory and IT change management, amongst others.

Source:

India in Business

Industry & Sectors (Oil and Gas)

December, 2015

Mining practice

The mining sector is one of the fastest growing sectors in India. Steady growth in production values, convenient export infrastructure, favourable polices around FDI, increased scope for new mining capacities, introduction of the e-Auction framework are some of the salient features of this sector in India *.Our team of experts work with various departments of metals and mining enterprises to provide tailor made services to address challenges around strategy, financing and operations. We provide services which include but are not limited to: strategy and policy advisory, transaction support, procurement advisory, financial modeling, economic consulting and operations improvement. Source:

India Brand Equity Foundation

Indian Metals and Mining Industry Analysis

August, 2015

Transport practice

India is one of the fastest growing economies in the world and in order to keep up the growth pace it is imperative to build and invest in a robust transport infrastructure. The objective is to ensure sufficient provision for maintenance of the already-built roads; invest in unified tolling and better safety on highways; improve bus services/public transport in smaller cities, towns and districts; and introduce metros in urban areas through PPPs wherever feasible, and through government funding where PPP cannot yield the desired results.  On the maritime front, the Indian ports and shipping industry plays a vital role in sustaining the country’s trade and commerce growth. Keeping in mind the positive outlook for the sector, KPMG in India brings together subject matter experts in the fields of roads, railways , ports and shipping and works with clients in the areas of strategy and policy design, organisational transformation, business process re-engineering , setting up PMOs and operations and asset management.

Source:

India Brand Equity Foundation

Ports in India

February, 2016

Aviation and defence practice

With the government taking initiatives to develop a competent domestic A&D industry base, for the aerospace and defence industry, India is now a lucrative low-cost manufacturing and engineering service base. The existing dynamics of the market presents significant opportunities to both domestic and international players. The aviation sector faces challenges including the scope for differentiation, swarming competitor landscape, building operational efficiencies in ground handling and emphasis on customer management, amongst others. KPMG has a skilled and dynamic practice in the aviation sector with work performed in airport and airline operations and in the broader aviation policy space for the government of India. Our professionals have extensive direct industry experience having worked with the defence services, defence procurement and defence programmes. We have a well defined and robust approach to support our clients effectively across a spectrum of projects in business performance services, transaction services and tax and regulatory services.

Services

Strategy and business planning services

In order to be relevant in the infrastructure ecosystem, it is imperative to constantly innovate, build operational efficiencies, leverage technology, focus on organic and inorganic growth and strive to be ahead of the competition. Our advisors work closely with clients to understand the business environment, organisational structure, competitor landscape, industry benchmarks and put together tailor made service offerings to help enable long term organisational sustainability. We provide customised approaches around strategy and business planning, organisational design, corporate planning, vision development, market assessments and feasibility studies, amongst others.

Regulatory and policy advisory services

With the changing demographics and a more vigilant and demanding citizen, it is imperative for  governments to build an ecosystem governed by an unbiased, accommodative and proactive policy framework which would enable infrastructure development through balanced public and private participation. KPMG in India provides advisory services related to policy advocacy, policy design and evaluation, regulatory economics, market models and tariff regulatory services, amongst others.

Economic consulting services

Economists at KPMG combine academic rigour with objectivity and real world experience to offer service offerings in auction design, contract design, economic cost benefit analysis of policy design , programs, large investments, energy and environmental economics, productivity analysis and benchmarking , regulatory economics involving impact assessment, privatisation analysis and strategy. The core team of economists and statisticians works with multidisciplinary teams across KPMG to bring in tractability and agility to the real world approaches across infrastructure subsectors. Such service offerings combine the standard micro/macroeconomics approach with sophisticated empirical methods and insights from behavioural science, coupled with a strong understanding of the latest technologies and regulatory updates.

PPP and transaction advisory services

In order to help ensure sustained economic development, it is imperative for the private and the public sector to work in tandem. Public Private Partnerships is one of the financing models aimed at implementing long term investment projects and would require an innovative approach to balance the control between the public and private sector, where the private sector develops and implements larger infrastructure projects in accordance with the public sector guidelines . KPMG in India has strong credentials in the infrastructure sector especially in larger PPP projects involving transport infrastructure, social infrastructure, utilities and energy.  We have worked with the government in building financial models to structure PPP projects, feasibility studies, and PPP transaction advisory services and have worked with the private sector providing bid advisory-related services.

Major projects advisory services

With our reviving economy and pressure on performance, companies are revising business plans to ride the growth wave. Management teams are sanctioning capital projects to enhance capacities to fuel growth. Capital projects however, are indeed a complex business. Limited project management talent available externally, coupled with varying regional influences, regulatory requirements, and differing stakeholder needs, further exacerbate the difficulty for successful project implementation. Over the years, KPMG has continually invested in developing service offerings to address the needs of our clients in managing capital projects.

KPMG in India provides capital projects advisory services focused on helping enable project owners and related stakeholders achieve success in their projects, by integrating industry experience, a risk-based approach and technical and financial competencies, along with a skilled team of professionals. KPMG in India helps clients facilitate their ongoing improvement, by developing owner organisation programmes and project management governance and processes, while helping achieve potential time and cost reductions.

Operations improvement and asset management services

A well managed operational platform is crucial for building a financially sound organisation. The more complex the business, the greater the chances of poor financial performance, hence it is essential for large infrastructure organisations to build robust processes , adequately identify core and support services, reduce the risk of revenue leakages, and avoid redundant costs. KPMG in India adopts a collaborative approach and helps enable the pillars of successful transformation namely processes, people, technology and risk through our services which include: business process improvement, support function effectiveness, operations cost management, financial management, technology enablement and effectiveness, asset utilisation, business integration services, sourcing advisory and project management advisory services.

Financial modeling services

In order to deliver on the shareholder value, it is important for the top management to analyse business decisions as minutely as possible.  With our financial modeling approach, we aim to assist organisations with tailor made modeling approaches built in line with business issues to help accelerate business decisions. The services under this offering include model building and model review services. Our dedicated professionals have wide ranging experience in building models with the right level of detail and flexibility to analyse critical business issues across industries and over the life cycle of the company.

Deal advisory services

The infrastructure market is a highly integrated, vibrant and competitive with immense pressure to deliver on shareholder value.  Several of our clients which include leading Indian companies, global corporations and private equity funds are exploring avenues to buy, sell, partner, fund or fix. It is imperative to adopt a holistic approach while devising the strategies towards effective restructuring and improved transactions. Our team of specialists brings together their vast experience seeking to improve the total expected returns under various scenarios, improve cash flows and overall liquidity. KPMG in India houses sector and functional experts and works closely with infrastructure clients in various phases of the business life cycle right from the time one starts thinking of entering the Indian Infra space including entry strategy formulation, profiling opportunities, raising funds or refinancing, buying or selling a business, undertaking joint ventures (JVs), undertaking diligence of business, counter party assessment, debt raising / restructuring / stressed asset service offerings so as to help clients make carefully considered and value-based policy decisions, amongst others.

 

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