In this edition of our annual endeavour, CW handpicks the Top Challengers of FY2022 from the building, infrastructure and allied sectors that have managed to post growth despite every economic challenge as well as the impact of the pandemic. As the saying goes, “Out of your vulnerabilities will come your strength”. This stands true for the Indian infrastructure sector that has finally started to witness improvement. After a difficult FY21 on the back of COVID-19, not much was expected from infrastructure in FY22 as well. However, the infrastructure and allied sectors have shown that strength and growth can come through continuous effort and struggle. If the FY22 numbers are anything to go by, it seems that the levers for private capital expenditure (CAPEX) revival seem to be falling in place. Corporate India is well geared to step up the CAPEX. Free cashflow-to-capex ratio averaged approximately 0.5x over FY14-20 and is at 1.0x currently. Indian manufacturing companies have repaired their balance sheets by deleveraging, with net debt/equity or net debt/EBITDA back to FY12-13 levels. The interest burden is significantly below peak levels. Estimates across the manufacturing universe indicate a strong double-digit uptick in capex for the steel, cement and chemicals sector over pre-COVID levels. Apart from this, the investment intent of the private sector is robust. New investment announcements by the private sector in FY22 are more than double as compared to the FY20 levels. This was led by the manufacturing sector, which saw a 4.7x increase. Most important factor is order inflow and order backlog of large, listed capital good plays on aggregate at record high. We opine that real estate can join the party over the medium term, as unsold inventory of residential property units is down 40 per cent from the peak. Going ahead, we expect government CAPEX led by infrastructure to at least keep pace with nominal GDP growth. With the economy coming back on track, we at CW are recognising the efforts of India Inc. In our yearly exercise, we have analysed the companies from the universe of construction and contracting, engineering, metals, building materials and cement. It is time to honour all those who have been able to overcome the difficult challenges they faced on both the macro and micro fronts. We have followed a rigorous method by focusing on parameters such as net sales, PBDIT and net profit. While sales figures are important as they reflect how the demand for products or services is moving, profit before depreciation interest and tax (PBDIT) figures guide us on how the company is doing at the operational level and its efficiency. As for net profit, it clearly shows how much is left for shareholders. Further, in the context of the current series of default on payment by a few companies, we have also closely observed if the companies we have analysed have risked their debt profile or leveraged too much. Hence, parameters like long-term borrowings and short-term borrowings have been examined. With such comprehensive observations, the companies that have managed to show ability to grow are true challengers, proving their mettle in a difficult economic environment. As stated earlier, we have ranked the companies on three parameters: net sales, PBDIT and net profit. We have selected companies that have shown improvement in at least two of the above parameters. It means if the company has managed to show an increase in sales but failed to show improvement in PBDIT and net profit, it has not been considered. Further, to ascertain the real challengers and the larger ones, we only considered companies with a market capitalisation of over `5 billion. We have also taken companies with FY21 sales of over `5 billion. This is to ensure that the base is higher, yet the companies managed to post strong growth. There are a few companies who posted losses in FY22 but we took care that losses have reduced compared to FY21. We have made a few adjustments. For instance, for companies with fiscal closing other than March 2022, the trailing four quarter financial performances were considered. Companies that have not yet announced the March 2022 quarter results have not been considered. (Please note that a few companies have not announced Q4 FY22 results even till the second week of July 2022.) Apart from this, a few organisations chose not to participate in this process and hence, do not figure in the list. With regard to the ranking, we provided a weighted average to three parameters: 40 per cent to sales, being a prime growth driver, and 30 per cent each to PBDIT and profit after tax (PAT). After ranking the companies on growth in percentage terms (FY21 over FY20), the rankings were provided with weightages. This process helped us rationalise the ranking process and all players were rated on similar ground. In some cases, we offered the right to veto (to the selection panel) by adhering to qualitative factors. The final list is an extensive one and the panel has taken into account almost all aspects that needed to be considered. We have ignored ranking them as the purpose was to choose the companies that have braved the odds and they belong to diverse sectors. Top Challengers 2022BigBloc Construction Brigade Group Capacit'e Infraprojects Godrej Properties Greenpanel Industries HCC ITD Cementation India J Kumar Infraprojects Jindal Stainless Kolte-Patil Developers Mahindra Lifespaces Man Infraconstruction Marathon Group Orientbell Tiles Patel Engineering PSP Projects Rushil Décor BigBloc Construction “After expansion, the company's total capacity will increase to 13.75 lakh cu m.” - Mohit Saboo, Director & CFO, BigBloc Construction Incorporated in 2015, BigBloc Construction manufactures building aerated autoclave concrete (AAC) blocks, bricks and panels. Mohit Saboo, Director & CFO, BigBloc Construction, shares more… Approaching a major challenge faced in FY2021-22: Disruption in business operations caused by the second wave of COVID-19 was the biggest challenge faced to date. Being a labour-intensive sector, it was even more critical and challenging for us to manage our operations and supply as well as take care of our employees and workers. The collection cycle was also disrupted and payments were delayed owing to industry conditions. However, we have not faced any major work stoppages, thanks to our team efforts. The company's plants continued to run at 60-70 per cent capacity utilisation. Major contributor to growth in FY2021-22: AAC blocks as an alternative to red bricks have been available for several years and are the future of the construction sector, but their application was limited for many reasons. During the COVID-19 era, prices of red bricks almost doubled compared to a gradual increase in the price of AAC blocks. That was a major trigger for the industry and company and the use of AAC blocks witnessed a manifold jump. Growth in the infrastructure sector, growing preferences for low-cost houses and an ever-increasing focus on green and soundproof buildings are factors driving the AAC market. Plans for growth in FY2022-23 and beyond: The company is setting up a greenfield project in Wada, Palghar (Maharashtra), with a capacity of 5 lakh cu m per annum in two phases. This will be India’s largest single location facility for AAC blocks. The company has also entered into a JV with SCG International Corporation Co (SIAM Group, A Multinational Company from Thailand) to set up a 3 lakh cum per annum facility near Ahmedabad to manufacture AAC blocks and panels. After expansion, the company’s total capacity will increase to 13.75 lakh cu m. Brigade Group “We are confident that the markets in which we operate are the most primed for scale-up.” - Pavitra Shankar, Executive Director, Brigade Group Instituted in 1986, the Brigade Group has transformed the skyline of cities with developments across the residential, commercial, retail, hospitality and education sectors. Pavitra Shankar, Executive Director, Brigade Group, shares more… Approaching a major challenge faced in FY2021-22: The pandemic had impacted the sector, with lockdowns resulting in a reduction in site visits and the subsequent impact on typical conversions. Our business, like many others, had to adapt to the situation and rethink business processes that could help sustain the brand. Our digitisation efforts helped us move to a virtual and hybrid way of closing sales and completing documentation, all the way until agreement signing. Major contributor to growth in FY2021-22: Customers' preference towards completed inventories and larger units grew during the pandemic. The desire for large outdoor spaces and integrated townships also increased. There was high demand for homes especially from larger players with financial stability and consistent delivery. Consolidation helped drive business to established players, and our market share has increased despite the market not yet reaching pre-COVID levels. Decision avoided/made that helped maintain top-line and bottom-line: We have chosen to focus on South Indian markets vs. expanding to Mumbai and NCR. We are confident that these markets we operate in are the most primed for scale-up. These will allow us to scale up similar business models and grow profitably. Plans for growth in FY2022-23 and beyond: We plan to launch 8 million sq ft in residential and 2 million sq ft in commercial projects in FY23. Our primary focus will be Bengaluru, not just for residential but all other domains in which we operate. We will aim at expanding the contribution of Hyderabad and Chennai to at least 40 per cent of our overall portfolio. Furthermore, we have recently forayed into plotted developments and have an aggressively increasing pipeline. Additionally, we are evaluating the industrial parks and logistics segment. Capacit’e Infraprojects “We shall maintain a healthy mix in our project portfolio.” - Rahul Katyal, Managing Director and CEO, Capacit’e Infraprojects Capacit’e Infraprojects (CIL) is a boutique EPC company, incorporated in 2012, with presence in both public and private sectors. CIL specialises in building construction and providing extraordinary quality and services in varied domains of expertise. Rahul Katyal, Managing Director & CEO, Capacit’e Infraprojects, shares more... Approaching a major challenge faced in FY2021-22: The COVID uncertainty was one of the major challenges faced during FY2021-22. With multiple waves, it only became difficult to maintain a steady workforce and supply chain. However, with the resilient and meticulous effort taken by team Capacit’e, we were able to nullify the immediate effects of the pandemic. Additionally, the increase in commodity prices was a major setback that posed immense stress on the ongoing projects. It was a laborious task to renegotiate the immediate effects of the pandemic and get an amicable solution to such a force majeure condition. Major contributor to growth in FY2021-22: As a company, CIL has always been driven by technology. Our focus to continuously innovate how we operate and adapt to change has been one of the biggest growth contributors. Our strength lies in delivering projects in challenging built environments across the country, and moving forward, we shall leverage the learnings and continue to improve. Decision avoided/made that helped maintain top-line and bottom-line: Not joining the bandwagon and securing projects at unrealistic rates has been a conscious decision that we have maintained, and this has led in maintaining a healthy bottom-line. Being a listed player, our responsibility towards our investors is of paramount importance and we need to maintain a steady growth. Plans for growth in FY2022-23 and beyond: We shall continue to maintain a healthy mix in our project portfolio and not only depend on repeat orders. We shall diversify in to other geographies and ensure continuous inflow of orders. Godrej Properties “We will maintain a strong focus on enhancing brand, market share and profitability.” - Mohit Malhotra, Managing Director and CEO, Godrej Properties Godrej Properties brings the Godrej Group philosophy of innovation, sustainability, and excellence to the real estate industry. Mohit Malhotra, Managing Director & CEO, Godrej Properties, shares more… Approaching a major challenge faced in FY2021-22: Last financial year, Q1 was a complete wash out due to the pandemic. We felt the need to focus strongly on employee and their families’ wellbeing during the month of April and May. We consciously had no project launches in the quarter. June onwards, we witnessed recovery in employee performance. Our labour workforce of around 10,000 (pre-COVID, January 2020) had dropped to 4,000 (in March, 2020) which picked up to 18,000 post June 2021. Then onwards, business started taking a front seat again and despite a muted Q1, we managed to deliver robust growth on almost all critical business parameters. Major contributor to growth in FY2021-22: A persistent consumer focused business approach was the fundamental growth enabler for the company. This, coupled with a prudent capital deployment strategy of the past, have been key to growth in market share and profitability. Decision avoided/made that helped maintain top-line and bottom-line: During the hyper-inflationary period of rising input material cost, unlike many industry peers, we decided not to put a pause on execution and rather, to take calculated and periodic price hike (according to the merit of the product) to protect margins. The strategy also helped in curbing the risk of rise in period cost and project delay. During the pandemic, we extended our support with timely payment and labour welfare, which resulted into a much stronger labour availability at GPL projects during the toughest time. Plans for growth in FY2022-23 and beyond: We will maintain a strong focus on enhancing brand, market share and profitability. Greenpanel Industries “The company will expand its MDF capacity by 35 per cent.” - Shobhan Mittal, Managing Director and CEO, Greenpanel Industries Greenpanel Industries was incorporated on December 13, 2017. Post that, the MDF business of Greenply and the Plywood unit at Uttarakhand were demerged into Greenpanel. The company is India’s market leader in MDF with a 28 per cent market share in the `40 billion industry. Shobhan Mittal, Managing Director and CEO, Greenpanel Industries, shares more… Approaching a major challenge faced in FY2021-22: The company faced a major challenge in FY2022 with major inflation in raw material prices in the MDF segment. The company met the challenge head on and took price increases aggregating to 25 per cent during the year. This helped the company to not only maintain but also improve its gross margins. This gave the team the required confidence and MDF sales volumes grew by 30 per cent. These were reflected in the top-line and bottom-line. The company grew its sales by 58 per cent and its post-tax profits by 250 per cent. Major contributor to growth in FY2021-22: The decision to take price hikes to counter the full impact of raw material inflation was the biggest contributor to our growth in FY2022. This gave the required impetus to the company’s performance and it achieved its highest ever top-line and bottom-line in FY2022. Decision avoided/made that helped maintain top-line and bottom-line: Greenpanel Industries has always given importance to the conversion of profits into cash flows. Post COVID, the company furthered tightened its credit policy and working capital investments. It has the best working capital management in the industry with net working capital at 16 days and customer credit at 10 days. Plans for growth in FY2022-23 and beyond: The company, at a recent Board Meeting on July 22, 2022, has decided to expand its MDF capacity by 35 per cent. This will increase the company’s MDF capacity by 231,000 CBM at a cost of `6 billion and the enhanced capacity will be available to the company in H1 FY 2025. This will enable the company to maintain its leadership position in the industry. HCC “Our goal is continued leadership in heavy complex projects.” - Arjun Dhawan, Vice Chairman, HCC HCC is a pioneer in India’s infrastructure industry, having executed landmark projects that have defined the country’s progress since 1926. Arjun Dhawan, Vice Chairman, HCC, shares more… Approaching a major challenge faced in FY2021-22: The dual challenges posed by inflationary pressures and the pandemic’s second wave required special attention. While abnormal increases in diesel, cement and steel prices did impact the bottom-line, our response mitigated the impact by focusing on long-term sustainability initiatives aimed at deleveraging the balance sheet and enhancing internal capabilities for future growth. We were selective in securing new orders and optimised resources through well-structured JVs, while focusing on resolving contractual issues with clients. Major contributor to growth in FY2021-22: The conciliation of certain large disputes with NHAI and the sale of our BOT concessions portfolio has positioned us for the next phase of the company’s growth. Furthermore, the spin-off of a material portion of HCC’s debt along with commensurate award assets will result in the long-awaited solution to the asset-liability mismatch prevalent in delayed payments. Decision avoided/made that helped maintain top-line and bottom-line: We consciously slowed our order booking in FY22 in the face of supply chain disruptions and highly inflationary markets. We believe the impact of this risk management will bear fruit in the future profitability of our business relative to our peers. Plans for growth in FY2022-23 and beyond: Our focus will be on select clients and maintaining discipline in pricing of risk. There is ample opportunity to grow profitably where HCC has an edge. For example, hydroelectric and nuclear power is HCC’s core expertise, which has taken center stage as India’s improves its energy security. Our goal is continued leadership in heavy complex projects while building infrastructure landmarks for the country. ITD Cementation India “We have consciously not placed aggressive bid for some big size projects.” - Santi Jongkongka, Executive Vice Chairman, and Jayanta Basu, Managing Director, ITD Cementation India ITD Cementation India has a significant presence in the design, engineering and construction of infrastructure and turnkey projects. Santi Jongkongka, Executive Vice Chairman, and Jayanta Basu, Managing Director, share more… Approaching a major challenge faced in FY2021-22: The year gone-by was characterised by second wave of COVID-19, geo-political conflicts, high inflation and unprecedented volatility in commodity prices along with disruptions in the global supply chain. Against this, we have delivered a noteworthy financial performance. Over the years, we have been able to maintain a deleveraged balance sheet with net debt equity strengthening to 0.11x in 2021-22. These efforts with strong execution capabilities, prudent capital allocation, cash and working capital management have enabled us to perform better during challenging times. Major contributor to growth in FY2021-22: Our decision to secure some big-ticket jobs in underground metro and marine sectors have been key contributors to the company’s growth in FY2021-22. Decision avoided/made that helped maintain top-line and bottom-line: Our endeavour has always been to follow a risk-mitigated strategy of financial prudence, operational excellence and overall growth of the company. We have consciously not placed aggressive bid for some big size projects, where we felt that the margins could be low and will impact our bottom-line. Plans for growth in FY2022-23 and beyond: We are positive on the road ahead with our strong order book position. Going forward, we would focus on securing jobs in our neighbouring countries and further enhance the operational performance by increasing productivity and reducing waste. J Kumar Infraprojects “We will not compromise our long-term vision for short-term gains.” - Dr Nalin J Gupta, Managing Director, J Kumar Infraprojects J Kumar Infraprojects is focused on EPC projects, with a strong foothold in various sectors including metros, flyover, bridges, hospital, tunnels, sewage works, and riverfront development. Dr Nalin J Gupta, Managing Director, J Kumar Infraprojects, shares more… Approaching a major challenge faced in FY2021-22: During the second wave of COVID-19, migration of labour was a major challenge. Labour availability across projects reduced to almost 50 per cent, thereby impacting our profitability in Q1FY22. We corrected the labour situation swiftly by arranging for their travel and ensuring a safe stay at our labour colonies. We have also prioritised the health and wellbeing of all our employees and implemented adequate safety measures across operations. Major contributor to growth in FY2021-22: We will not compromise our long-term vision for short-term gains. We enhanced our capabilities to capitalise on the emerging opportunities. We will continue to expand our reach, invest in our talent pool and unlock efficiencies. Decision avoided/made that helped maintain top-line and bottom-line: Our prudent financial management measures empower us to maintain financial stability with a consistent increase in our revenue and order book. We are net debt-free and have reduced the gross debt with the debt-equity ratio standing at 0.21. We firmly believe that in the long run, the debt as a percentile to turnover should reduce. As a strategy, we have always focused on EPC and stayed away from BOT and PPP. Plans for growth in FY2022-23 and beyond: We have strengthened our systems and processes that will help us in our endeavour of becoming a billion-dollar revenue company soon. Our progress in the year under review reflects our resilience amid a challenging macroeconomic environment. We continue to remain optimistic of the long-term prospects of our business owing to our robust and well-diversified orderbook, pool of talented people, ownership of complex equipment and bidding eligibility alongside our strong financial management. Jindal Stainless “We are focused on developing a self-sufficient ecosystem for the stainless steel industry.” - Abhyuday Jindal, Managing Director, Jindal Stainless Founded by Shri OP Jindal in 1970, Jindal Stainless is one of the largest stainless steel conglomerates in India and ranks amongst the top 10 stainless steel conglomerates in the world. Abhyuday Jindal, Managing Director, Jindal Stainless, shares more... Approaching a major challenge faced in FY2021-22: In trying times (the pandemic), a major challenge for us was to stabilise our supply chain during volatile raw material supplies and logistics. However, we maintained a strong performance on the back of adaptive strategies in supply chain and product basket management. We maintained a balanced approach across our domestic and export sales, and strengthened our niche value-added product portfolio. Major contributor to growth in FY2021-22: It was our agility on two fronts: (i) Alignment of product manufacturing as per the fluctuating demand patterns, and (ii) Sharp product portfolio calibration across segments and geographies. This way, we were able to adapt our product customisation and deliveries as per customer requirements without any major delays. Decision avoided/made that helped maintain top-line and bottom-line: We kept our buying behaviour consistent with the TOC model. This was a conscious choice to avoid any undue inventory losses and gains from speculative decisions in a highly fluctuating raw material market. Plans for growth in FY2022-23 and beyond: We will continue to be agile and gauge the market movement. We will emphasise on customer service, high quality products, and demand-led manufacturing in the short-term. In the long-term, we are working towards identifying new applications for our products and expanding the stainless steel market size. Additionally, we are focused on developing a self-sufficient ecosystem for the stainless steel industry in the country. As a responsible corporate citizen, we are striving to achieve our ESG goals and are also investing to set up renewable energy power plants in our manufacturing facilities. Kolte-Patil Developers “The goal is to increase customer satisfaction, loyalty and reduce churn.” - Rahul Talele, Group CEO, Kolte-Patil Developers Founded in 1991, Pune-based Kolte-Patil Developers has developed and constructed over 50 projects covering a saleable area of 20 million sq ft. Rahul Talele, Group CEO, Kolte-Patil Developers, shares more… Approaching a major challenge faced in FY2021-22: One major challenge was strategically navigating the uncertainty of the pandemic, in terms of maintaining home buyer confidence. Further, the plan was to increase revenue by hastening home sales. The company embarked on a variety of approaches to assist home buyers in purchasing their dream homes through strategies that address their financial needs while establishing our fit with their requirements and then propose a complement to convert fence-sitters into users. Major contributor to growth in FY2021-22: Kolte-Patil emphasises on the importance of adequate liquidity. During FY21-22, the company reported an interest cover (EBIDTA divided by interest outflow) of 3.72 – one of the highest in the real sector. As of March 31, 2022, the company's net debt/EBITDA ratio was 0.70 – a lowest in the sector and an indicator of the company’s nominal indebtedness. This fiscal discipline represents a platform for concurrent standalone projects with the ability to embark on large multi-year projects. Decision avoided/made that helped maintain top-line and bottom-line: Since, significant variations in prices might lead to considerable losses, impacting the top-line, the company agreed upon a standard price with vendors for key raw materials to be supplied within a specific time period. Plans for growth in FY2022-23 and beyond: To execute projects quickly with quality, the company introduced various global technologies to provide world-class apartments to the customers. The company even implemented an advanced CRM SAP-based ERP, and has recently on-boarded an NPS (Net Promoter Score) consultant to increase customer satisfaction, loyalty and reduce churn. Mahindra Lifespaces “Our strategy is to place the consumer at the centre of all we do.” - Vimal Agarwal, CFO, Mahindra Lifespaces Mahindra Lifespaces brings the Mahindra Group’s philosophy of ‘Rise’ to India’s real-estate and infrastructure development industry with Mahindra Residences, Mahindra World City and Origins by Mahindra. Vimal Agarwal, CFO, Mahindra Lifespaces, shares more… Approaching a major challenge faced in FY2021-22: One major challenge we faced was to sustain and further build on the sales momentum, which had slowed down over the past seven to eight years. However, we were confident that we would be able to show good results. We reinvented our marketing campaign while emphasising that the ultimate value of real estate lies in providing a complete lifestyle. A few new launches focused on themes such as Health Sampanna homes, holistic wellness, and robust social infrastructure in and around the project. Value engineering helped rationalise our product prices and strategic alliances ultimately augmenting the value proposition and sustaining the sales velocity. Major contributor to growth in FY2021-22: Execution of a ~9-acre land transaction with M&M at Kandivali is a significant development that will be accretive to stakeholder value creation. We were able to execute the transaction in record time while ensuring all governance standards were fully met and approval from all shareholders taken. Decision avoided/made that helped maintain top-line and bottom-line: We decided to focus on depth rather than width. The decision to operate in the top three identified geographies has ensured that we are able to bring in significant efficiencies of operation while driving a solid pace. Plans for growth in FY2022-23 and beyond: Our strategy is to place the consumer at the centre of all we do. Ensuring we are able to create good quality sustainable developments is a simple strategy. Our first net-zero energy residential project, Eden Bengaluru, is testament to the fact that having ESG and sustainability at the core also makes a great business proposition. Man Infraconstruction “Strong liquidity levels have enabled the company to take up more projects.” - Parag Shah, Chairman Emeritus, and Manan Shah, Managing Director, Man Infraconstruction Man Infraconstruction has executed the construction work for some of the most significant port projects in the country. Their other projects span the residential, commercial, institutional and industrial segments. Parag Shah, Chairman Emeritus, and Manan Shah, Managing Director, Man Infraconstruction, share more... Approaching a major challenge faced in FY2021-22: This was one of the best years for the company's financial and operational performances. One key reason is prudent management, which has built a strong financial position over the years. The holding company has continued to remain debt-free, with a negligible net debt at consolidated levels, and maintain strong liquidity levels providing an adequate cushion for any unforeseen events in the future. Major contributor to growth in FY2021-22: MICL Group's decision to adopt an asset-light model to expand its real-estate business has helped the company diversify the business and improve revenue visibility. Strong liquidity levels too have enabled the company to take up more projects simultaneously. Plans for growth in FY2022-23 and beyond: On the EPC front, the company has a strong order-book of over `18.5 billion, which it will execute in an approximately a three-year timeframe. It will continue bidding for government and infrastructure projects. For real-estate, the strategy will continue to follow the asset-light model and maintain a well-diversified portfolio in terms of customers, development and market that will help us expand in the MMR region. MICL has 4.6 million sq ft of ongoing and upcoming projects, and 1.7 million sq ft carpet area of projects in the pipeline, which will be launched in due course of time. The group is also expanding its footprint globally in Miami and nearby regions in the US. Marathon Group “We focused on developing existing land banks.” - Mayur Shah, Managing Director, Marathon Group With over 100 projects completed, Marathon Group is currently building several townships, affordable housing projects, ultra-luxury skyscrapers, small offices and large business centres. Mayur Shah, Managing Director, Marathon Group, shares more… Approaching a major challenge faced in FY2021-22: Commercial real estate faced a challenging period where there was uncertainty about office workers returning to the workplace. Larger clients refrained from taking major purchase or lease decisions. We addressed this by quickly pivoting to a new smaller-sized commercial product offering at our flagship commercial project, Marathon Futurex. We also ensured that existing clients received operational support throughout for their back-office teams. With this, we managed to retain most tenants and in fact even renewed some leases. Major contributor to growth in FY2021-22: We maintained a strong focus on project completion. We also made significant work progress in Panvel, Dombivli, Mulund and Bhandup. This has put us in a great position to fulfil our commitments and grow faster. Because of historically low interest rates, we also had a keen focus on affordable housing with successful launches in Bhandup, Dombivli and Panvel.Decision avoided/made that helped maintain top-line and bottom-line: We focused on developing existing land banks. We launched projects selectively and did not look at any new land acquisition. Marathon has large existing land banks and our focus is on developing them before acquiring new land. Plans for growth in FY2022-23 and beyond: We have planned several launches in the affordable housing segment at NeoHomes, our brand of budget homes in Bhandup, as well as our Nex series of townships in Panvel, Dombivli and Kalyan-Shil. We are also seeing good demand for smaller commercial spaces at our recently launched commercial tower in Mulund, Marathon Millennium. While we have planned several launches, our main focus continues to be on maintaining our good delivery track record. Orientbell Tiles “We have made it easier for purchase heads and architects to buy tiles.”- Aditya Gupta, CEO, Orientbell Tiles Orientbell Tiles has been manufacturing and marketing tiles since 1977. It has evolved to cater to the 21st century, with innovation and sustainability at the core of its mission. Aditya Gupta, CEO, Orientbell Tiles, shares more…. Approaching a major challenge faced in FY2021-22: The pandemic, shutdowns and rising input costs made serving our customers extremely challenging. We expanded the categories and sizes available at our manufacturing plants to ensure in-time supply. We increased tenfold the number of project sites where we train masons in tile laying. Our teams excelled in deepening engagement with key decision-makers and helped them make faster decisions by leveraging our digital tools. Major contributor to growth in FY2021-22: We have made it easier for purchase heads and architects to buy tiles. A single plant supplies up to 20 different sizes and categories! They can choose tiles on our website using a intuitive filters. It is also possible to download hi-res images for use in modelling interiors and order samples. Decision avoided/made that helped maintain top-line and bottom-line: We could ensure reliable supply. We used COVID-induced lockdowns to focus on digital initiatives and skill upgradation – which have continued to pay dividends. We have opened the largest number of OrientBell Tile Boutiques in FY22. Plans for growth in FY2022-23 and beyond: We will continue making tile buying easier, expanding the number of categories available at our factories and focusing on improving our distribution and display. Our Dora (near Baroda) factory has started production of 600 x 600 mm and 600 x 1,200 GVT. This makes it a really attractive source for projects in Mumbai and other areas. At our Hoskote (near Bengaluru) plant, we will soon make 600 x 1,200 ft tiles. This factory is strategically located to serve the southern market. Our Sikanderabad plant is also adding products such as anti-static tiles and full body vitrified tiles in addition to GVT and ceramic wall tiles. Patel Engineering “The company has been focusing on bidding for new projects, which are self-sustaining.” - Kavita Shirvaikar, Whole Time Director and CFO, Patel Engineering Patel Engineering is a 73-year-old company, having a strong presence in hydroelectric and tunnelling projects apart from other sectors which include irrigation, water supply, urban infrastructure and transport. Kavita Shirvaikar, Whole Time Director & CFO, shares more… Approaching a major challenge faced in FY2021-22: One major challenge faced was to increase our existing manpower base and find the right personnel to fit the organisation requirements. To overcome this, we set up strong Human Resource systems in place and moved towards digital transformations in this area. Even during difficult pandemic times, we were able to increase our employee base by about 100 per cent in FY22. Major contributor to growth in FY2021-22: We achieved fastest boring and maximum record progress of 653m in one month – January 2022 in the 3.2 dia TBM segment at our AMT-II Water Tunnel Project located in Mumbai. There was a record achievement of 775m Record Arch Lining Progress in a single month at our T2 project. At our Sela Pass Project, which is the highest bi-directional road tunnel in the world, we have achieved a breakthrough on January 22, 2022. These achievements along with a wonderful team on board has been taking the company one step ahead. Decision avoided/made that helped maintain top-line and bottom-line: The company has been focusing on bidding for new projects, which are self-sustaining. Focus towards taking up the right projects over the last year has definitely helped us improve the top-line. Plans for growth in FY2022-23 and beyond: Our focus is to build our order book by selectivity taking projects that are self-sustaining with reasonably good margins. We expect our order book to increase beyond Rs.200 billion by year-end. We are planning to further reduce debt over the next two to three years by monetising our real estate and other non-core assets. With this, we shall be able to strengthen our financial position. PSP Projects “The company has booked its highest ever revenue since inception in FY2021-22.” - PS Patel, Chairman, Managing Director & CEO, PSP Projects PSP Projects is focused on the construction of buildings and factories that demand quality and timely completion. PS Patel, Chairman, Managing Director & CEO, PSP Projects, shares more… Approaching a major challenge faced in FY2021-22: The company had to complete one of its most challenging projects, the Shri Kashi Vishvanath Corridor, in Varanasi, Uttar Pradesh. The 18-month project started in January 2020 and was immediately hit with two waves of COVID (April 2020 and January 2021, respectively). Due to pilgrim movement throughout the day, we were permitted to transfer the material, plants and machineries only during night hours. As the purpose of the project was to create a landmark Hindu temple that lasts for at least 100 years, we had to deal with hard stone materials, stone carvings and inlay works to achieve the required aesthetics as well as strength. Despite these challenges, the project was completed and inaugurated on December 13, 2021. Major contributor to growth in FY2021-22: The company has booked its highest ever revenue since inception in FY2021-22. Our biggest project, Surat Diamond Bourse, and Shri Kashi Vishvanath Corridor, were the biggest contributors to this growth. Decision avoided/made that helped maintain top-line and bottom-line: We are more focused on projects where quality and timeline are a priority. We avoid projects where there is a thin margin and slow cash flow (which impacts bottom-line) owing to healthy competition. Plans for growth in FY2022-23 and beyond: PSP Projects has shown consistent growth of around 35-40 per cent since incorporation. Looking at the order book and visibility, we aim to achieve the same growth rate as a minimum. After the completion of the Surat Diamond Bourse, we now qualify for projects from `20-25 billion. As we set up our own precast plant in Ahmedabad, we expect about 15-20 per cent of revenue contribution to come from our precast business. Rushil Décor “One important decision was the strategy to set up an MDF plant in Andhra Pradesh.” - Rushil Thakkar, Whole Time Director, Rushil Décor Incorporated in 1993, Rushil Décor manufactures decorative (single-sided) and industrial (double-sided) laminates with a wide range of designs, colours and finishing. Rushil Thakkar, Whole-Time Director, shares more… Approaching a major challenge faced in FY2021-22: The biggest challenge was to ramp up its capacity at the new plant in Andhra Pradesh. COVID was impacting operations and processes, labour availability was a big issue, freight rates were sky rocketing and the German technicians were unable to reach us. Every member of the Rushil family stood up to the challenge, and we achieved a capacity utilisation of nearly 70 per cent by the end of FY22. Major contributor to growth in FY2021-22: One of our important decisions was the strategy to set up an MDF plant in Andhra Pradesh. When the industry was uncertain about the MDF story, we made a calculated strategic decision that is paying off well today. Decision avoided/made that helped maintain top-line and bottom-line: The selection of South as a factory location for the MDF plant despite the North being the cluster for the industry was a decision that would otherwise have impacted our top-line and bottom-line. Similarly, choosing German technology was also a strategic decision that resulted in capacity utilisation. Plans for growth in FY2022-23 and beyond: The management is working on a two-pronged strategy: One, to adopt an aggressive marketing strategy; and two, to reach optimum capacity utilisation and achieve higher efficiencies for better profitability. One part of the growth strategy is also to tap into smaller towns. Increasing efficiencies through incremental capacity utilisation and cost control are essential parts of our future plan. As part of this strategy, the management is focused on constantly improving profitability by increasing the proportion of value addition from the present 20-25 per cent to at least 45-50 per cent in the current financial year.