Konstelec Engineers Ltd. IPO

Konstelec Engineers Limited was incorporated on December 05, 1995 as a private Limited Company and started business operations as Design Engineering Company. Over the years, we have expanded our services, constantly upgraded our technologies, systems, and processes and diversified our business ... operations. As an EPC company, we specialize in delivering full-scale project management, procurement support, and detailed engineering services for various kinds of electrical infrastructure projects across India and abroad. With a skilled team, strong project execution capabilities, and a client-centric focus, we are committed for delivering high-quality, safe, and innovative solutions that meet our clients' specific needs. Our expertise covers the entire project lifecycle, ensuring timely delivery and successful outcomes for even the most complex projects. At present, we are in the business of Engineering, Procurement, and Construction/ Commissioning (EPC) contractors and are engaged in the business of offering full range of EPC services in India and abroad. Our services find applications across several processing and various kinds of manufacturing industries such as oil & gas, refinery, steel, cement, pharmaceuticals, textile, hospital, health care and commercial complexes, domestically and internationally. We have designed, developed, and executed several complex and integrated projects requiring cutting-edge electrical, instrumentation and automation systems. Our key offerings include engineering design and drawings, procurement, operations and maintenance, project management and construction and commissioning. We provide one-stop solution to our clients for various kinds of engineering projects. Our expertise includes Electrical Installation, Solar Power Plant Setup, Instrumentation & Automation. We are an EPC company and specialize in delivering full-scale project management, procurement support, and detailed engineering services for various kinds of electrical infrastructure projects across India and abroad. We acquire direct infrastructure project contracts through tender biddings or direct orders from the clients. For any contract we procure the products on behalf of the client and provide design, construction and allied services to our clients, as a bundle. Our adaptability to market demands and technological advancements enable us to tackle projects of varying sizes and complexities. We are a licensed electrical contractor and have successfully completed over more than 200 Project of various size and complexities of which there were 45 Major Projects worth more than ? 400 Crores in India and abroad. As on August 31, 2023, we have an order book of more than 50 Major Projects worth around ? 565 Crores from our major projects suggesting strong order book which are at different stages of implementation. We possess the requisite resources of DG sets, hydra/ crane, testing equipment’s for civil/ electrical/ instruments, commercial vehicles, manpower strength etc. to execute our projects successfully. Among our distinguished clientele, we have the privilege of serving a number of esteemed clients such as Reliance Industries Limited, Engineers India Limited, JSW Steel, Indian Oil, BPCL, HPCL, CPCL, MRPL, ISRO, ACC, BARC, Dangote Industries Limited, Adani, NTPC, Tata Steel Ltd, Navin Fluorine International Ltd and IGPL, etc.. The growth we have achieved can be attributed to the visionary leadership and guidance of our promoters, Mr. Biharilal Ravilal Shah and Mr. Amish Biharilal Shah. Their extensive knowledge and over six decades of business experience in our industry have been instrumental in driving our efficiency and success. Additionally, our team comprises a diverse group of professionally trained and qualified engineers with versatile abilities. This exceptional team is adept at providing effective solutions to our customers across projects of various scales and complexities. Their collective expertise has been a driving force behind our accomplishments and continued growth. We have in-house capabilities to deliver a project from conceptualization to completion with fast turnaround time from acquisition to launch to completion, which focuses on de-risking and improving return on investment. We offer professional solutions, encompassing design and engineering services, to cater to the needs of our valued customers. Our team comprises highly skilled and dedicated professionals who are always prepared to deliver their utmost efficiency. At Konstelec, we leverage our technical expertise in the most optimal and cost-effective manner, ensuring the utmost reliability and availability of each project. With a proven track record of successfully executing various projects, we have cultivated a wealth of experience. Our projects are executed by a professional and well-managed team with extensive techno-commercial knowledge and experience in the field of Engineering, Procurement, and Construction (EPC). Their expertise enables us to effectively plan, implement, and deliver projects to the highest standards. With their vast experience, our team ensures the successful execution of projects, meeting the requirements of our clients and contributing to our company's overall growth and success. We derive our revenue from following business verticals: a) Engineering Design & Consultancy Services b) Construction and commissioning c) Operation and maintenance d) Project Management Read more

Our Company was originally incorporated as “Company Limited by Shares” under the name “Konstelec Engineers Private Limited” under the provisions of the Companies Act, 1956 and the Certificate of Incorporation was issued by Registrar of Companies, Mumbai, Maharashtra on ... December 05, 1995, vide certificate of incorporation bearing CIN U45203MH1995PTC095011 issue by Central Registration Centre, Registrar of Companies. Subsequently our Company was converted into a public limited company vide special resolution passed by the shareholders at the Extra Ordinary General Meeting held on June 30, 2023 and consequently the name of our Company was changed from “Konstelec Engineers Private Limited” to “Konstelec Engineers Limited” vide fresh Certificate of Incorporation granted to our Company consequent upon conversion into public limited company dated August 25, 2023 by the Registrar of Companies, Mumbai bearing Corporate Identification Number U45203MH1995PLC095011.

GLOBAL OUTLOOK
Global growth has slowed to the extent that the global economy is perilously close to falling into recession—defined as a contraction in annual global per capita income—only three years after emerging from the pandemic-induced recession of 2020. Very high inflation ... has triggered unexpectedly rapid and synchronous monetary policy tightening around the world to contain it, including across major advanced economies. Although this tightening has been necessary for price stability, it has contributed to a significant worsening of global financial conditions, which is exerting a substantial drag on activity. This drag is set to deepen given the lags between changes in monetary policy and its economic impacts, and the fact that real rates are expected to continue to increase. Asset prices have been in broad, synchronous decline, investment growth has weakened substantially, and housing markets in many countries are worsening rapidly. Shockwaves continue to emanate from the Russian Federation’s invasion of Ukraine, especially in energy and other commodity markets. Against this backdrop, confidence has fallen precipitously. The worlds three major engines of growth—the United States, the euro area, and China—are undergoing a period of pronounced weakness, with adverse spillovers for emerging market and developing economies (EMDEs), many of which are already struggling with weakening domestic conditions. As a result of the sharp slowdown in global growth, per capita income is not expected to surpass 2019 levels until at least 2024 in about one-third of EMDEs. Per capita income growth is expected to be slowest where poverty is highest. In Sub-Saharan Africa—which accounts for about 60 percent of the world’s poor - growth in per capita income over 2023-24 is forecast to average only 1.2 percent, far less than the pace that would be needed over the remainder of the decade to reach a 3 percent poverty rate by 2030. Soaring inflation in 2022 reflected a combination of demand and supply factors (Ha, Kose, and Ohnsorge 2022; Shapiro 2022). On the demand side, the acceleration of growth during the initial rebound from the 2020 global recession, as well as the lagged effects of earlier macroeconomic support, contributed to persistent price pressures. Price increases were particularly large in sectors such as shipping and air travel, where compositional shifts in demand encountered ongoing capacity constraints and supply chain disruptions (Kalemli-Özcan et al. 2022). On the supply side, shortages of key commodities, exacerbated by Russia’s invasion of Ukraine, contributed substantially to higher energy and food prices. In some countries, tight conditions and mismatches in labor markets further added to rising wages and higher input and production costs. Finally, many countries experienced large currency depreciations that passed through into higher import, producer, and consumer prices. The higher share of food in consumer spending has caused inflation to accelerate more in low-income countries compared to other EMDEs. INDIAN ECONOMY Introduction The Indian economy, however, appears to have moved on after its encounter with the pandemic, staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY23. Yet in the current year, India has also faced the challenge of reining in inflation that the European strife accentuated. Measures taken by the government and RBI, along with the easing of global commodity prices, have finally managed to bring retail inflation below the RBI upper tolerance target in November 2022. However, the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed. The widening of the CAD may also continue as global commodity prices remain elevated and the growth momentum of the Indian economy remains strong. The loss of export stimulus is further possible as the slowing world growth and trade shrinks the global market size in the second half of the current year. Macroeconomic and Growth Challenges in the Indian Economy The impact of the pandemic on India was seen in a significant GDP contraction in FY21. The following year, FY22, the Indian economy started to recover despite the Omicron wave of January 2022. This third wave did not affect economic activity in India as much as the previous waves of the pandemic did since its outbreak in January 2020. Mobility enabled by localised lockdowns, rapid vaccination coverage, mild symptoms and quick recovery from the virus contributed to minimising the loss of economic output in the January-March quarter of 2022. Consequently, output in FY22 went past its pre-pandemic level in FY20, with the Indian economy staging a full recovery ahead of many nations. The experience with the Omicron variant engendered a cautious optimism that it was possible to stay physically mobile and engage in economic activities despite the pandemic. FY23 thus opened with a firm belief that the pandemic was rapidly on the wane and that India was poised to grow at a fast pace and quickly ascend to the pre-pandemic growth path. INFRASTRUCTURE SECTOR IN INDIA 1. High Budgetary Allocation For Infrastructure ? In Union Budget 2022-23, the government has given a massive push to the infrastructure sector by allocating Rs. 10 lakh crore (US$ 130.57 billion) to enhance the infrastructure sector. ? The government expanded the ‘National Infrastructure Pipeline (NIP)’ to 9,335 projects. 217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were completed as of 2020. 2.Increasing Private Sector Involvement ? The private sector is emerging as a key player across various infrastructure segments, ranging from roads and communications to power and airports. ? Private investment into physical and social infrastructure is key to putting India in a high growth trajectory, which will make it a US$ 5 trillion economy by 2024-25. ? Yearly private equity (PE) and venture capital (VC) investment in India is expected to surpass US$ 65 billion in 2025. 3. Improvement In Logistics ? In 2020, India’s logistics sector was one of the largest worldwide worth US$ 215 billion and increased at a CAGR of 10%. ? Indian logistics market is estimated to touch US$ 320 billion by 2025. Read more