New Delhi: Capacit’e Infraprojects Pvt. Ltd. is a leading Engineering, Procurement, and Construction (EPC) company in India, specializing in large-scale, complex infrastructure projects. Founded with a vision to deliver world-class construction solutions, the company focuses on sectors such as residential, commercial, institutional, and healthcare infrastructure.
Speaking to The Business Guardian Rohit Katyal, Executive Chairman, Capacit’e Infraprojects Pvt. Ltd. said, We are in the midst of golden era of infrastructure development.
Excerpts
Q: The Company has a well-diversified order book. Which areas/sectors do you think would be the growth drivers in the near future?
A: India today is seeing a massive transformation and has become a global centre of attraction with massive investments and FDI happening across sectors. To make India more attractive, there has been a massive push for infrastructure development. We are in the midst of golden era of infrastructure development.
The Building and Factories construction segment today is witnessing overwhelming demand across residential, commercial, institutional and hospitality sector. The focus towards enhancing the Healthcare Infra has taken pace post the epidemic. The factories segment has also picked pace, thanks to the government push towards ‘Make in India’ and the PLI schemes. Investment in data centres has also gain momentum both in public as well as private sector. We believe that this trend is likely to continue and gain more pace in the years to come.
The opportunities are large and unheard of. The challenge is dearth of quality contracting companies having experience and ability to take up those projects. At Capacite, we will be very choosy for the projects and segment which we would want to focus. We would take up those projects only which meets our internal benchmarking both in terms of segment and profitability.
Q: The Company has been outperforming its peers and has demonstrated healthy margins. What are the key drivers for this, and do you think the same is maintainable?
A: It would not be appropriate to talk about others. But definitely, our single segment focus and our careful project selection has been the key driver. You have to be choosy about the projects which are being bidded, have to do meticulous logistic planning, deploy right type of equipment and resources. The idea is to plan well before you hit the ground.
Over the years, we have also brought fine balance between the private and public sector order mix, which is also helping us to achieve the desired results. At Capacite, we believe in executing the work ourself rather than relying on subcontractors. This helps us to control the quality as well as helps in maintaining the margins.
Our focus on advanced construction technologies, disciplined project execution, and cost management has been pivotal in maintaining healthy margins. By integrating Building Information Modeling (BIM) and automated systems, we ensure precision and efficiency, which reflect positively on margins. I am confident this performance is maintainable, given our robust order book, focus on high-value projects, and commitment to operational excellence.
Q: Considering the deep understanding of the building segment, are there any plans to get into the developer’s shoes?
A: While we have the expertise and resources to transition into development, our current focus remains on strengthening our position as a leading Engineering, Procurement, and Construction (EPC) company. By specializing in large-scale, complex projects, we ensure we stay true to our core strengths while delivering value to our stakeholders. The opportunities in Buildings & Factories EPC segment are so humongous, that there is no need to divert focus on any other segment or vertical.
Q: The industry is grappling with labor shortages. What’s your view on this, and how are we tackling it?
A: Labor shortages are a significant challenge, but we address this by leveraging technology to reduce dependency on manual labor to the extend possible. We also invest in skill development programs and partnerships with local communities to ensure a steady and skilled workforce. Additionally, one has to innovate better ways to improve the stickiness of labour. Money being one part, we also take better care of our labourers at site by providing better sanitation & healthcare facilities etc at our labour colonies.
Additionally, we have developed eFORCE, India’s first multi-lingual construction tech platform, specifically designed to tackle labor shortages and streamline labor management. The app is designed to bridge the gap between general contractors, project developers, and migrant labor contractors, thereby organizing the fragmented labor market in the construction industry. By utilizing AI and analytics, eFORCE helps project developers and contractors find the right labor resources based on expertise, experience, and capacity, ensuring that we maintain a steady, skilled workforce. Through initiatives like eFORCE, we continue to improve labor availability and efficiency, addressing both short-term and long-term challenges in the sector.
Q: Are public sector work and private sector work similar?
A: Over the past few years, both public and private sectors have become very quality and timeline conscious. Both the sector demands, construction quality at par and second to none. The requirement for modern construction technologies to be used have became a pre-requisite in both the segments.
That being said, the major difference typically comes in terms of the scope. Public sector projects are typically lump sum projects requiring the construction company to undertake the entire projects, be it the Engineering, MEP, finishing etc. On the other hand, private sector typically would like to award project for civil works only.
Off late, we have seen shift in that also, but largely they still prefer awarding civil works only.
Public sector projects typically have stringent regulatory compliance and a focus on community benefits, whereas private sector projects prioritize speed, aesthetics, and ROI. Our ability to adapt to these differing requirements has been a key factor in our success across both domains.