Apart from roads, we have identified the water sector as one of the great opportunities
ROADS & HIGHWAYS

Apart from roads, we have identified the water sector as one of the great opportunities

                     CW Top Challengers 2018-19


Part of the Welspun Group, Welspun Enterprises (WEL) was formed in its current form in 2015. WEL is unique as it focuses primarily on road HAM projects. WEL has seven road HAM projects in its portfolio with a total project value of Rs 85+ billion. The unexecuted order book at the end of FY19 stands at Rs 52+ billion.WEL is the first company to complete a HAM project – Delhi-Meerut Expressway (Package 1)– 11 months ahead of schedule, which was inaugurated by the Prime Minister in May 2018.Backed by a strong balance sheet with significant unleveraged cash balance, WEL is among the few infrastructure developers with long-term AA credit rating. Sandeep Garg, Managing Director & CEO, Welspun Enterprises, shares more….

Name one major challenge faced in FY2018-19. How did the company approach the same?
The past year-and-a-half has been particularly challenging for infrastructure developers. While the banking sector was passing through a challenging time owing to NPAs and regulatory changes, the situation was aggravated because of the crisis in the NBFC sector led by IL&FS, and further expanded to a few other private-sector housing finance companies. As a result, there was severe credit aversion in the financial sector during this period. A lot of developers faced difficulties in achieving financial closure for their HAM projects. Our strategy of ‘one step at a time’ meant that we were typically undertaking financial closure for one project at a time. As a result of this, coupled with our strong balance sheet, WEL was able to successfully arrange timely funding for all its projects.

What is one decision you consider the biggest contributor to the company’s growth in FY2018-19?
There was a temporary slowdown in the bidding pipeline of NHAI in Q2-Q3 of last year. During this time, WEL diversified its client base by bidding selectively for HAM projects at the state level. We secured the Amravati (AM-2) project of PWD Maharashtra at a bid project cost of Rs 14.60 billion during this time. We will continue to selectively bid for HAM projects of a variety of clients.

Name one single factor you avoided that could otherwise have impacted the company’s topline and bottomline.
WEL is a strongly process-driven company and there is a clear expectation at all levels to deliver value to our stakeholders. We bid selectively for projects, and always bid at our internally mandated threshold IRR. Hence, we do not compromise on our return expectations, even if it means not winning a project. We believe this creates maximum stakeholder value.

Going forward, what are your plans for the company’s growth in FY2019-20?
We will continue to proceed on our chosen focused path. In the roads sector, we will continue with our approach of execution excellence with an asset-light execution model for HAM projects. Project returns, rather than order booking, will be our mantra. On the execution front, we expect two of our HAM projects to achieve PCOD in FY2019-20, ahead of the contractual schedule.

Apart from roads, we have identified the water sector as one of the great opportunities. We continue to develop our capabilities in the sector, and will be bidding for HAM projects, focusing on bulk water transport, treatment and desalination. We will also look at opportunistic EPC play in this sector.

Read on the CW Top Challengers selection criteria and methodology at https://www.constructionworld.in/articles/beststories/CW-identifies-the-Top-Challengers-of-FY2019/21687

                     CW Top Challengers 2018-19Part of the Welspun Group, Welspun Enterprises (WEL) was formed in its current form in 2015. WEL is unique as it focuses primarily on road HAM projects. WEL has seven road HAM projects in its portfolio with a total project value of Rs 85+ billion. The unexecuted order book at the end of FY19 stands at Rs 52+ billion.WEL is the first company to complete a HAM project – Delhi-Meerut Expressway (Package 1)– 11 months ahead of schedule, which was inaugurated by the Prime Minister in May 2018.Backed by a strong balance sheet with significant unleveraged cash balance, WEL is among the few infrastructure developers with long-term AA credit rating. Sandeep Garg, Managing Director & CEO, Welspun Enterprises, shares more…. Name one major challenge faced in FY2018-19. How did the company approach the same? The past year-and-a-half has been particularly challenging for infrastructure developers. While the banking sector was passing through a challenging time owing to NPAs and regulatory changes, the situation was aggravated because of the crisis in the NBFC sector led by IL&FS, and further expanded to a few other private-sector housing finance companies. As a result, there was severe credit aversion in the financial sector during this period. A lot of developers faced difficulties in achieving financial closure for their HAM projects. Our strategy of ‘one step at a time’ meant that we were typically undertaking financial closure for one project at a time. As a result of this, coupled with our strong balance sheet, WEL was able to successfully arrange timely funding for all its projects. What is one decision you consider the biggest contributor to the company’s growth in FY2018-19? There was a temporary slowdown in the bidding pipeline of NHAI in Q2-Q3 of last year. During this time, WEL diversified its client base by bidding selectively for HAM projects at the state level. We secured the Amravati (AM-2) project of PWD Maharashtra at a bid project cost of Rs 14.60 billion during this time. We will continue to selectively bid for HAM projects of a variety of clients. Name one single factor you avoided that could otherwise have impacted the company’s topline and bottomline. WEL is a strongly process-driven company and there is a clear expectation at all levels to deliver value to our stakeholders. We bid selectively for projects, and always bid at our internally mandated threshold IRR. Hence, we do not compromise on our return expectations, even if it means not winning a project. We believe this creates maximum stakeholder value. Going forward, what are your plans for the company’s growth in FY2019-20? We will continue to proceed on our chosen focused path. In the roads sector, we will continue with our approach of execution excellence with an asset-light execution model for HAM projects. Project returns, rather than order booking, will be our mantra. On the execution front, we expect two of our HAM projects to achieve PCOD in FY2019-20, ahead of the contractual schedule. Apart from roads, we have identified the water sector as one of the great opportunities. We continue to develop our capabilities in the sector, and will be bidding for HAM projects, focusing on bulk water transport, treatment and desalination. We will also look at opportunistic EPC play in this sector. Read on the CW Top Challengers selection criteria and methodology at https://www.constructionworld.in/articles/beststories/CW-identifies-the-Top-Challengers-of-FY2019/21687

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement