Business Summary

Our Company is engaged in construction activities in India. We undertake construction of railway infrastructure, roads, highways, bridges and irrigation projects. We began operations as a construction company in the field of railway infrastructure development, mainly in the state of Orissa and subsequently expanded our business activities in the zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. We have developed expertise in railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. Over the years we have diversified our field of activities into other construction segments such as development and construction of roads, highways, bridges and irrigation projects as well as undertaking EPC activities for railways.

Construction projects are typically awarded through a competitive bidding process to bidders who meet certain eligibility requirements based on their past experience, technical capabilities and financial strength. We bid for projects both on a standalone basis as well as through project specific joint ventures. We have entered into joint ventures with national and international players such as PT Adhikaria (Persero), Harish Chandra (India) Limited, Triveni Engicons Private Limited, RITES, Kalindee Rail Nirman (Engineers) Limited, Patel Engineering Ltd, Rohit Kumar Das Construction Private Limited, Backbone Enterprises Ltd. and Atlanta Ltd.

Our clients include Ministry of Railways, State Government of Orissa; Rail Vikas Nigam Limited, RITES Limited Vendata, Nalco, Jindal Steel & Power, IRCON International Limited, National Thermal Power Corporation, Hindustan Steel Corporation Limited, PWD – Orissa, IOCL and the National Highway Authority of India. We have successfully completed construction of over 500 km of rail line and more than 500 km of roads and highways.

We have presence in Eastern India, particularly in the state of Orissa. However, in recent years we have also pursued opportunities in other parts of India including the states of Chhattisgarh, Rajasthan, Jharkhand, Haryana, Kerala, Andhra Pradesh, Assam, Tamil Nadu Gujarat, Uttar Pradesh and Madhya Pradesh. As of March 31, 2021 our work force consisted of approximately 2000 full/part time employees. We have track record of timely execution of our projects. We adhere to international best practices standards and have been certified with ISO 9001: 2008 Quality Management System Standard Certificate by Moody International Certification Limited for “Construction of Civil and Infrastructure Work like Highways Roads, Bridges, Railway Track Linking Works (including OHE SNT), Earth Works, and Irrigation Projects like Dams etc”. We are committed to adhering to the applicable health, safety and environment policies and practices in the execution of our projects.

Our competitive strengths

We have successfully executed over 100+ projects involving construction of approximately 500 km of roads and highways, 500 km of rail tracks, 20 minor and major bridges and other general civil engineering works over the span of nine years.

We have been able to mobilize resources including equipment, raw material and personnel to our project sites at short notice, while adhering to a track record of timely completion of projects. We believe that the breadth and depth of our experience, among other factors, enables us to pre-qualify for a greater number of potentially higher-margin projects.

We have a fleet of strategic construction equipment assets. We believe that our investment in equipment and fixed assets is an advantage, which enables us to rapidly mobilize our equipment to project sites as needs arise. As of March 31, 2020 our total investment in plant, machinery and equipment was Rs. 4120.00 lacs.

We have crusher plants at six locations in various districts of Orissa and equipment storage, maintenance and repair facilities in crusher plants are required for quarrying and crushing granite stone to produce required sizes of rock products as per client specification, be it for railway track ballast or highway work or any other civil construction work.

We own construction equipment comprising of Hydraulic Excavator, Tippers, and Excavator cum Loader, Vibrator Roller, Vibrator Soil Contractor, Motor Grader, Hot Mix Plant, Batch Mix Plant, Concrete Batching Plant, Wet Mix Plant, Transit Mixture, Crane and other miscellaneous equipment.

Majority of the contracts are received from Government, Public Sector Undertakings and other Government agencies, which reduces the risk of default and delayed payment. Clients from whom we have received repeat orders include State Government of Orissa, Railways Department, Rail Vikas Nigam Limited and RITES.

The composition of our Order Book is well diversified over various segments such as railways, roads and highways and ROB(s). In 2007, we diversified into execution of irrigation and canal construction works. Diversification into new areas of construction projects is expected to mitigate the risk of slowdown in revenues from any segment due to unforeseen circumstances.

Our business and growth are dependent on our ability to bid and secure large and varied projects. Bidding for infrastructure projects is dependent on various criteria, including, bid capacity and pre qualification capability. Bid capacity represents the aggregate value of the contracts that can be awarded to us, and is computed based on pre-defined criteria of various authorities. Pre qualification capability includes various factors such as the technical capability, financial capability and past experience in similar projects. We have focused on increasing these parameters and continuously increasing our bid capacity.

We believe that the increasing level of investment in infrastructure by Governments (state and central), international development bodies (like ADB, IFC, World Bank etc) and private parties will be a major driver for growth of our business in the foreseeable future. Investments in roads and railways take priority in the infrastructure development initiative by the Government of India. We intend to take advantage of such growing opportunities in infrastructure development by strengthening our existing expertise in executing the projects successfully and by continuing our focus on railways and roads.

We shall continue to bid for contracts from Government, quasi Government or development organizations across India. Over the last two years we have expanded our operations from Orissa to states like Chhattisgarh, Tamil Nadu, Rajasthan, Jharkhand, Andhra Pradesh, Kerala, Haryana, Assam, Maharashtra, Gujarat, Uttar Pradesh and Madhya Pradesh etc. to avail of opportunities across different states of India. We have recently been successful in qualifying for the six-laning of two stretches of National Highway No. 5 (NH-5) in southern states of Andhra Pradesh and Tamil Nadu.

Infrastructure construction is a highly competitive and capital-intensive activity. We believe that optimal utilization of financial, human and other resources are crucial for achieving success in this industry. Going forward, our strategy will be to continue focusing and structuring on optimum capital utilization to enhance returns, by actively analyzing and identifying projects and assigning priority to high margin yielding projects. We also intend to improve capital efficiency by striving for accelerated completion of projects.

We have formed joint ventures with domestic and international companies like PT Adhikaria (Persero), Harish Chandra (India) Limited, Triveni Engicons Private Limited, RITES, Kalindee Rail Nirman (Engineers) Limited, Patel Engineering Limited, Backbone Enterprises Limited and Atlanta Limited. We intend to develop and continue to establish strategic alliances with companies, whose resources, skills and strategies are complementary to ours, which would enhance our business opportunities to achieve competitive bidding advantage.