OUR BUSINESS
Our Company is engaged in the construction and development of infrastructure projects such as roads, highways, bridges and buildings since inception and has a presence in the state of Madhya Pradesh, Maharashtra, Gujarat, Punjab, Haryana, Uttar Pradesh, Mizoram and Manipur.
Our company carry out EPC services for third parties (majorly for government departments), primarily in the roads & highways, commercial complex, industrial parks, housing projects and HAM (Hybrid Annuity Mode) Projects. Our company is also engaged in wind power generation, manufacturing of Ready-Mix Concrete (RMC) and Toll Collection Contract (TCC).
Our business may be broadly divided into the following Categories
- Civil construction services, including Engineering Procurement Construction (EPC) services.
- Ready Mix Concrete (RMC) manufacturing.
- Wind power generation.
- Toll Collection Contract (TCC).
- Residential Plotting Projects.
We execute road construction projects as EPC contractors and construction services providers. Also, currently we are undertaking one HAM Project.
For the projects that we deliver on an EPC and construction services basis, the scope of our services typically includes design and engineering of the project, procurement of raw materials, project execution at site with overall project management up to the commissioning of these projects.
In addition, we also undertake repair and maintenance of projects in accordance with our contractual arrangements.
Our employee resources and fleet of equipment, together with our engineering skills and capabilities, enable us to execute a range of construction projects involving varying degrees of complexity.
We believe that our in-house integrated model and efficient project execution capabilities have enabled us to execute projects in a timely manner.
Our Company has also forayed in the business of wind energy/Power Generation by installing a 1.25 MW Wind Power Turbine at Jaisalmer (Rajasthan) which was commissioned in 2005.
Our Company has entered into Power Purchase Agreement with Ajmer Vidyut Vitran Nigam Limited for a period of 20 years commencing from March 2005 at a pre-determined tariff.
Our Company seeks growth by investing in a variety of systematically identified businesses, making it a well- diversified conglomerate with interest in a range of projects such as asphaltic road construction, concrete road construction, buildings, bridges & culverts and all other civil works related to development of infrastructure.
We have successfully executed and are currently executing projects across various cities in Madhya Pradesh. After successful execution of various projects in Madhya Pradesh, we have now entered the state of Maharashtra, Gujarat, Mizoram, Manipur and Uttar Pradesh and are currently executing a road construction project.
We have a track record in executing projects of different sizes particularly in the roads & highways sector.
We believe that over the years, our Company has become an established construction developer in the roads & highways sector with strong execution capabilities and with a reputation of delivering quality projects.
For instance, we have been awarded “Captain of Industry” in the year 2014 from the Chief Minister of Madhya Pradesh for being the most quality consciousness contractor.
We are also in the business of construction of building projects which includes School projects under CM rise scheme, residential building under PMAY Scheme, ISBT Bus stand, IIT College building, etc.
SWOT ANALYSIS
Strengths
- Strong Performance-: The Company is having a continuous past track record of growth in turnover and profitability.
- Proven Execution capabilities: We have proved our exceptional execution capabilities by executing the work orders in difficult
terrains of the North-East. - Adequate resources: We have a strong human resource, asset base and financial capabilities.
Weakness
A. Dependence: The Company is engaged in a line of business with major portion from the government departments as its major
customer.
B. Increase in compliances for project execution.
Opportunity
- Growth in infrastructure sector: Indian economy is growing with a rate of 7-8% and infrastructure facilities like roads are having
a key role in its development. Thus the growth of this sector is sure even if there is a recession in the economy. - Private sector participation: The Government of India is continuously taking policy decisions to attract foreign as well as
domestic private investments. Many of the projects have already been awarded to the private sector and many more are in the
pipeline. The emphasis on road projects, particularly the National Highway development initiatives and the incentives given to
the road construction industry, has provided a fillip to the construction sector. - Smart City and Bharat Mala initiatives by the Government of India.
- Growth in Real Estate Sector: The rapid pace at which Industrial and Residential Township Development is taking place in Indore
is a major opportunity for the company.
Threats
- The raw material of the Company consists of cement, sand, steel, bitumen etc. which are having highly volatile market. The last
two years’ trend of the prices of these raw material has been quite dynamic. So any significant increase in the prices of raw material might affect the profitability of the Company adversely. - The Company is engaged in such a line of business that its largest customer base is covered by Government departments. Thus,
the Company is dependent upon the Government departments for further contracts. Any change in the Government and its policies might affect the profitability of the Company.
OBJECTS OF ISSUE
1. Funding capital expenditure requirement of our company.
2. Funding Working Capital Requirement of our Company.
3. Funding expenditure for inorganic growth through acquisitions & other strategic initiatives and General Corporate Purposes.
Qualitative Factors
- Established roads and highways sector focused construction developer
- Efficient business model.
- Strong Order Book with growing project portfolio.
- Technology enabled project management capabilities.
- Project management.
- Experienced management team.
Comparison with Industry Peers
1.Teerth Gopicon Limited.
2.Udayshivkumar Infra Limited.
