We made our first major foray into BOT (toll) projects
ROADS & HIGHWAYS

We made our first major foray into BOT (toll) projects

- Ved Mani Tiwari, Deputy CEO, Welspun Enterprises Part of the Welspun Group, Welspun Enterprises (WEL) operates in the infrastructure space—primarily roads and water, with some investments in oil and gas. While the company’s main focus as a developer is on hybrid ...

- Ved Mani Tiwari, Deputy CEO, Welspun Enterprises Part of the Welspun Group, Welspun Enterprises (WEL) operates in the infrastructure space—primarily roads and water, with some investments in oil and gas. While the company’s main focus as a developer is on hybrid annuity model (HAM) projects, it also takes up value-accretive projects in the BOT-toll and EPC spaces. WEL currently has eight road projects in its developer portfolio with a total project value of over Rs 120 billion, and its current unexecuted order book is about Rs 49 billion. It was also the first company to complete a road HAM project, the Delhi-Meerut Expressway (Package1), in 11 months, ahead of schedule, and expects to complete four of its HAM projects in FY2020-21. Ved Mani Tiwari, Deputy CEO, Welspun Enterprises, shares more…. Major challenge faced in FY2019-20 and the company’s approach to it:FY2019-20 was a challenging year from a project execution perspective. In the early part of the year, construction works at existing project sites wereaffected owing to prolonged monsoon rains.The COVID pandemic towards the end of the year impacted our completion plans for a couple of projects. Despite these challenges, through a strong focus on processes and technology, we have been able to maintain our revenue and EBITDA margin for the year. Biggest contributor to the company’s growth in FY2020: We made our first major foray into BOT (toll) projects recently by taking over a project in the NCR (through harmonious substitution). This move is tied to our strategy of taking up value-accretive projects across various models.During the year, we also successfully refinanced the Delhi-Meerut project, the first for a completed HAM highway project in the country. The refinancing at a competitive rate helped strengthen our balance sheet. A decision avoided that helped impact the topline and bottomline:WEL is a process-driven company and there is a management consensus to deliver value to our stakeholders. We bid selectively for projects, and always bid at our internally mandated threshold returns. Hence, we do not compromise on our return expectations even if it means not winning a project. We believe this disciplined approach helps create sustainable stakeholder value. Plans for growth in FY2020-21 amid the uncertainties the COVID-19 pandemic has brought about:We are confident of making up the revenue loss witnessed in the lockdown period over the remainder of the year. Our focus will be on completing our ongoing projects on time or ahead of schedule. We expect to achieve COD on four under-construction projects during FY2021. Significant progress is also expected on the execution of other projects, including the recently acquired Mukarba Chowk-Panipat BOT (toll) project. In line with our asset-light strategy, we will look at unlocking value from our projects once they are completed. With five operational projects expected before the end of the year (including the already operational DME project), the company will have more options to explore in terms of asset monetisation. Welspun Enterprises Total Income EBITDA Reported PAT FY20 (Rsbillion) 18.08 3.03 1.50 Growth over FY19 (%) 1.18 19.91 19.11      

Next Story
Infrastructure Urban

EMS Bags Rs 2.03 Bn UP Water & Sewer Projects

Ghaziabad-based infrastructure firm EMS has strengthened its presence in Uttar Pradesh by emerging as the lowest bidder for two UP Jal Nigam (Urban) schemes worth a combined Rs 2.03 billion. The wins lift the company’s total order book to roughly Rs 22.36 billion as at 31 March 2025 and underline its growing role in the state’s urban-services upgrade.The larger contract, valued at about Rs 1.04 billion, forms part of the Agra Water Supply Reorganisation Scheme for the Trans-Yamuna zones. EMS will survey the site, conduct soil investigations, design and supply all materials, and build an in..

Next Story
Infrastructure Urban

Blue Planet Wins Rs 624 Mn Andhra Waste-Mining Contracts

Blue Planet Environmental Solutions, through its subsidiary Zigma Global Environ Solutions, has secured cluster-based contracts worth about Rs 624 million under Swachh Bharat Mission – Urban 2.0 to bio-mine and reclaim legacy dumpsites across Andhra Pradesh. The six-month engineering, procurement and construction assignments, awarded after a competitive tender, cover Chittoor, Tirupati, Anantapur and Gudur clusters, along with major sites managed by the Nellore and Greater Visakhapatnam Municipal Corporations.Working with the Swachh Andhra Corporation and the Municipal Administration and Urb..

Next Story
Infrastructure Urban

Consultant To Plan Najafgarh Riverfront in Dwarka

Delhi’s Irrigation & Flood Control Department will appoint a consultant to design a 21-acre riverfront park beside the Najafgarh drain near Vipin Garden, Dwarka. The brief covers soil testing, topographical survey and a full layout for walking tracks, landscaped lawns, chhat ghats, parking, an outdoor gym, children’s play areas and a cricket pitch.Fountains, lighting and extensive tree and shrub planting will form part of the beautification works. The consultant must submit a detailed project report within three months, after which construction decisions will be taken.Once the Sahi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?