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Ceigall 2.0 has begun and the journey ahead looks promising
ROADS & HIGHWAYS

Ceigall 2.0 has begun and the journey ahead looks promising

"We are a nearly 23-year-old company and if I had to define Ceigall, it’s simple – what comes on the road, we build it,” said Ramneek Sehgal, Managing Director of Ceigall India, which is known for its ability to deliver complex projects on time, such as the successful completion of the ...

We are a nearly 23-year-old company and if I had to define Ceigall, it’s simple – what comes on the road, we build it,” said Ramneek Sehgal, Managing Director of Ceigall India, which is known for its ability to deliver complex projects on time, such as the successful completion of the Katra Expressway. “Ceigall is making its mark in India's construction landscape. From highways, expressways and elevated roads to railways, metro railways, runways and tunnels – you name it, we do it. Beyond roads, we’re also into utilities and solar energy projects. We've already installed three solar plants for various projects and moving forward, we aim to utilise only green energy.” In conversation with R SRINIVASAN, he also shed light on the infrastructure EPC company’s journey, growth, projects and vision. Excerpts: Please share details about Ceigall’s letter of acceptance (LoA) for the construction of the Ayodhya bypass in Uttar Pradesh, worth Rs.24.18 billion, from the National Highways Authority of India (NHAI) There are two parts to this project worth Rs.25 billion: the Northern and Southern Ayodhya Bypass, both under the hybrid annuity model (HAM). The total length is close to 67 km and there are two major bridges spanning over 6,000 m. This project will be a gamechanger for us and we’re aiming to start as soon as possible. What is the expected turnover from the project and the expected completion timeline? The EPC cost would be around Rs.22 billion and we’re targeting to complete the project ahead of the schedule through optimum and proper coordination and utilisation of resources. The company has been able to get it in line with its envisaged EBITDA margins. What is Ceigall India’s orderbook distribution between HAM and EPC projects? Also, please share your views on the BOT model. We are conservative about the BOT model. The Government's shift towards geo-tagging tolls through satellites introduces uncertainties in revenue collection. While this is still unclear, we expect revenues to increase as toll collection becomes more accurate. For now, we maintain a 40-60 per cent split between the HAM and EPC models and have sustained this for the past four years. The company’s consolidated net profit from operations jumped in Q1FY25 over Q1FY24. What factors would you attribute to your stellar performance? Our growth is evident. Our success was recognised in our red herring prospectus (RHP) with CARE Ratings mentioning that we are the fastest-growing EPC company in the country with a turnover of about Rs 10 billion. We already have eight projects under our PPP-HAM-BOT subsidiary. We are present in over 13 states, operating across 11 verticals and, last year, we achieved `30 billion in revenue. What is the significance of the Bhubaneswar Metro and Kanpur Central Bus Terminal projects for Ceigall India’s portfolio? The Bhubaneswar Metro includes a 10-km viaduct, one of the longest in India, with stations. Metro and railway projects are a key focus for us and we've already built a strong vertical. The company's orderbook for metro and railway projects stands at `17 billion and we are bidding for additional projects worth `120 billion. We want to grow this vertical significantly over the next year, moving away from the highly competitive highway sector. What latest technologies does the company implement for rapid execution of projects? We are leveraging AI, IoT and GPS for project monitoring, machinery management and stock tracking, which not only ensures efficiency but aligns with our sustainability goals. How does the company ensure sustainability in its projects? Compared to other EPC firms, based on a lean operation model, we operate with just 20 per cent of the machinery, renting equipment to complete projects on time and within budget, which reduces costs and enhances productivity. We are also committed to using the best available technology including AI, GPS and drone-based monitoring. Ceigall is also focused on environmental sustainability, integrating green energy and reducing its carbon footprint through the adoption of efficient machinery and sustainable construction practices.

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