CW profiles the top companies in this category…
LARGEST CONSTRUCTION COMPANY
LARSEN & TOUBRO
Termed the ‘Poster Boy’ of the Indian infrastructure sector for the magnitude of its project execution capability and ability to ride the most challenging of economic and business cycles, Larsen & Toubro (L&T) has paved its own path to glory over the years. Engaged in technology, engineering, construction, manufacturing and financial services, it is one of the few companies that can truly be called an Indian multinational, with operations in over 30 countries worldwide. A strong, customer-focused approach and a constant quest for top-class quality has enabled L&T to attain and sustain leadership in its major lines of business for eight decades. Every aspect of L&T’s businesses is characterised by professionalism and high standards of corporate governance and sustainability is embedded into its long-term strategy for growth. While the company is known for its engineering capabilities, it created immense value for shareholders with value unlocking in subsidiaries. With an orderbook of over Rs..2,470.23 billion and strong execution capability, L&T is likely to continue its reign over the Indian infrastructure space.
FASTEST GROWING CONSTRUCTION COMPANY – LARGE CATEGORY
TATA PROJECTS
Tata Projects is one of the fastest growing and most admired infrastructure companies in India with expertise in executing large and complex urban and industrial infrastructure projects. Over the years, the company has proven its ability to deliver projects on time, using world-class project management techniques, with uncompromising safety and sustainability standards. Tata Projects operates through four strategic business groups (SBGs): Industrial Systems, Core Infra, Urban Infra, and Services. The company provides turnkey end-to-end solutions to set up power generation plants, power transmission and distribution systems, fully integrated rail and metro systems, commercial buildings and airports, chemical process plants, water and wastewater management solutions, and complete mining and metal purification systems. While other infrastructure companies faced challenges in terms of order inflows, Tata Projects managed to increase its order book. The total order backlog for FY19 is estimated at around Rs.500 billion as against Rs.340.25 billion for FY18. It plans to expand operations in identified geographical areas globally with expertise gained in select verticals, and is looking to deliver a highly differentiated, value-based project implementation experience to its global customers. The company’s estimated top-line stood at Rs.130 billion in FY19.AFCONS INFRASTRUCTURE
NCC
NCC is one of the few players in the construction industry with the skill-sets and capabilities to cater to diverse segments, geographies and clients. With a presence in multiple high-growth segments like buildings, housing, roads, water, electrification, metro and mining, it has a pan-India footprint, including key states like Maharashtra, Andhra Pradesh, Telangana, Karnataka, Gujarat, Uttar Pradesh, West Bengal and Tamil Nadu, with regional offices in 13 cities. Further, it has over 120 active sitesat various locations. Such a diversified presence gives it multiple growth levers and positions it better to offset the impact of slowdown in any particular segment. With a track record of successfully executing projects for various central and state-level agencies, PSUs and private-sector clients, NCC continues to invest in building execution capabilities. Although the disruption (order cancellations) in Andhra Pradesh has been a setback, the management has made various plans to overcome it. As in March 2019, the order backlog of the company stood at Rs.331.16 billion (non-Andhra Pradesh Rs.206.16 billion; Andhra Pradesh Rs.125 billion). For FY19, its top-line stood at Rs.128.95 billion and PAT was Rs.5.74 billion as against Rs.83.90 billion and Rs.1.68 billion, respectively, for FY18.
DILIP BUILDCON
FASTEST GROWING CONSTRUCTION COMPANY – MEDIUM CATEGORY
GR INFRAPROJECTS
GR Infraprojects is an integrated road EPC company with experience in design and
construction of various road and highway projects across 14 states in India. In addition to
its EPC activities, the company owns an operational road project constructed and developed by it
on a BOT basis. Further, it has been awarded seven road projects under the HAM model, of which, four
are currently under construction. The company owns over 3,300 units of construction equipment and vehicles,
including a fleet of over 60 tankers for transportation of bitumen and diesel. To maintain its capability to undertake
large projects, it seeks to purchase plants and equipment built with the latest technology. Going ahead, the focusof the company will be on EPC projects, where it has proved its expertise across large and complex projects.
The management is also enthused by the opportunities in the HAM segment, an asset-light model with a lower
risk element compared to BOT toll projects, while drawing upon its EPC expertise. Further, the company is
looking to diversify into the new verticals of optical-fibre laying, railways, water-related infrastructure and
sewerage.
APCO INFRATECH
APCO Infratech, which is one of the fastest growing mid-sized companies in the Indian
infrastructure segment, has many milestones underlining its growth journey. It has made
its presence felt in various segments like highways, energy, tunnel, irrigation, urban
infrastructure and industrial development. The company offers comprehensive value-added services
of design, EPC and DBFOT projects ranging from 'Idea to Implementation'. No wonder the company’s clientele
name includes industry leaders like NHAI, North Power Grid, IOCL, HPCL, and BPCL, among others. With its
ethos to focus on quality growth, the company has formed systematic strategy and is seeking opportunities in
the core areas such as the power sector. The company has also undertaken the Hybrid Annuity Model (HAM)
projects in 2018. With its primary focus on timely execution, right diversification and emphasis on valueadded
services, APCO Infratech has entered a completely new orbit over the years. One noticeable factor
is, unlike other infrastructure companies that have not been able to sustain its profitability, the company has
consistently witnessed profitable growth. Even the order book growth has been consistent and that also without
compromising on the margins front. To put the figures in perspective, the company has an order book in excess
of Rs.46 billion and even the employee strength has increased in FY19.
DINESHCHANDRA R AGRAWAL INFRACON
Amid fierce competition, some players make their presence felt by creating their own
niche in the market. A prime example of this is Dineshchandra R Agrawal Infracon (DRAIL), which has
been operating successfully for over four decades in the Indian infrastructure sector. Established in 1972 as a
partnership firm, DRAIL was reconstituted as a private limited company in 2003. It is involved in civil construction
activity and undertakes the construction of roads, bridges, airports and drainage systems. Over the years, DRAIL
has shown consistent growth driven by dedication, commitment to quality and a strong sense of ownership for
projects undertaken. Despite facing challenges with economic peaks and troughs, the company has managed to
overcome obstacles with appropriate management actions and the bedrocks of the company remain unchanged:
Integrity, commitment to quality and excellence, due diligence for safety, and timeliness of deliverables.
ASHOKA BUILDCON
Incorporated in 1993, Ashoka Buildcon is a major road developer and contractor in India.
Starting with its first BOT project in FY97, the company has built a robust portfolio of BOT assets, focused
on industrial and mining traffic. In addition to the roads space, the company also undertakes EPC projects in the
power T&D space where it is involved in the construction of substations, transformers and distribution transformers. With
many of it's BOT projects situated on NH-6 passing through mineral-rich states, elasticity of traffic growth is
largely dependent on the economic recovery. In simple terms, following the economic recovery, the growth
visibility is substantial for Ashoka Buildcon. Commercial vehicles constitute majority traffic on the company’s
roads – the commercial vehicles form around 80 per cent of its traffic, eventually, placing it in a sweet spot to
gain from any industrial revival. Another positive factor is that the company’s partnership with SBI-Macquarie and
its refinancing abilities have created a strong base for future. With regards to the order book, as on March 31,
2019, the company had un-executed orders worth Rs.89.34 billion. With better execution in FY19, the company’s
consolidated revenues increased to Rs.49.3012 billion as against Rs.36.01 billion in FY18.
FASTEST GROWING CONSTRUCTION COMPANY – SMALL CATEGORY
WELSPUN ENTERPRISES
Part of the Welspun Group, Welspun Enterprises (formerly known as Welspun Projects)
develops and operates PPP projects in various sectors such as roads, water and urban
infrastructure. In the highway sector alone, the company has successfully completed six BOT (toll)
road projects with a total length of over 500 km. With order inflows of Rs.33 billion, the company ended FY19
with an orderbook of Rs.52 billion. Welspun Enterprises operates in the Indian infrastructure space with investments
in the oil and gas segment. The company is unique in a way that it has a significant net cash balance, unlike most
other companies in the space that are burdened with high debt. It has a differentiated business model with a focus
on HAM projects. In EPC as well, Welspun outsources construction to the best suited contractor, focusing on high
value-added activity projects. Although the company had planned to monetise a few assets, this is being deferred
as it might not be able to realise the true potential of the assets at present – it now envisages a better value
realisation in case of a platform deal. Hence, it is planning to complete two more HAM projects by year-end. In
FY19, it posted a top-line of Rs.17.39 billion and PAT of Rs.1.52 billion compared to Rs.9.97 billion and Rs.1.09 billion,
respectively, in FY18.
PSP PROJECTS
PSP Projects is a construction company offering a diversified range of construction and allied
services across industrial, institutional, government, government residential and residential projects
in India. The company provides services across the construction value chain, ranging from planning
and design to construction and post-construction activities. PSP has been a consistent performer and even
FY19 was no different. The company's operational achievements have been impressive as well in FY19. It completed
several marquee projects, delivering them on time and ensuring the highest quality of work. In FY19, the company added a
leading Indian multinational to its clientele and also secured repeat orders from it within the same financial year. Today, it's
marquee client profile and the loyal relationships it has built, as demonstrated by a high share of repeat orders,
endorses the superior value the company’s management brings to the projects. The year also marked the
company's foray into a new territory – Maharashtra – by securing an affordable housing project, a segment with
massive potential underpinned by the government’s focused agenda to provide Housing for All. The company’s
order book stands at Rs.29.78 billion as on March 31, 2019.