About Active Infrastructures Limited

Business Overview

Active Infrastructures Limited operates in two key segments: Infrastructure Development and Commercial Construction.

• Infrastructure Development includes roads, bridges, flyovers, water supply systems, and irrigation projects.
• Commercial Construction covers office complexes, retail centers, exhibition halls, retail outlets, and private educational institutions.

Projects span Maharashtra, Madhya Pradesh, Uttar Pradesh, and Tripura, with a strong focus on quality, safety, and customer satisfaction. Equipped with advanced machinery, skilled manpower, and engineering expertise, the company adheres to industry standards in quality, environmental sustainability, and occupational health & safety.

Major Holdings:

• Stargate Ventures LLP (owns land in Pune for future projects)
• Solus LLP

There are approximately 150 - 160 contractual employees in the Company as on the recent date. The Bankers to the Company are Canara Bank, IDBI Bank Limited, Union Bank of India and Wardhaman Urban Co-operative Bank Limited.

Industry Analysis

Overview of the Indian Construction Industry

The Indian construction industry is witnessing remarkable growth, driven by substantial investments and government-led initiatives across multiple sectors, including commercial, industrial, infrastructure, energy, utilities, institutional, and residential construction. This expansion is fueled by increasing urbanization and population growth, with diverse projects ranging from hotels and industrial parks to educational institutions and large-scale transportation networks.

The commercial construction sector is benefitting from a surge in tourism and business activities, while the industrial sector is thriving due to strong manufacturing expansion. Infrastructure development continues to be a major driver, backed by public and private investments in transportation. Additionally, the energy and utilities sector is experiencing significant growth, with a strong focus on renewable energy and achieving national energy independence.

Market Size and Growth Prospects

The Indian construction market is expanding rapidly, primarily due to rising demand for residential and commercial spaces. The shift in consumer preferences post-COVID-19 toward larger and more open living spaces has further spurred development, particularly in tier-1 cities. Government policies and private sector investments are enhancing construction activities in both urban and rural areas, ensuring sustained growth.

As of the current year, India’s construction market is valued at approximately USD 639 billion, with a projected Compound Annual Growth Rate (CAGR) exceeding 6% over the forecast period. India ranks as the fourth-largest construction market globally, following the US, China, and Japan. With a consistent annual growth rate of 7-8%, India is on track to become the world’s third-largest construction market, valued at USD 1.4 trillion by 2025. The construction industry contributes nearly 9% to India’s GDP and stands as the second-largest employment generator in the country.

The Indian construction market remains highly competitive, with both domestic and international players vying for market share. However, increasing government investments provide opportunities for small and medium-sized enterprises (SMEs) to grow. Developers who leverage technology, focus on sustainability, and adapt to future market needs will lead the industry’s next phase of expansion.

Infrastructure Sector: A Key Driver of Economic Growth

Infrastructure development is a crucial element in India’s economic growth strategy, playing a vital role in the country’s ambition to become a USD 26 trillion economy. Investments in infrastructure, combined with ease-of-doing-business initiatives, are essential for enhancing efficiency and cost-effectiveness across industries. Prime Minister Narendra Modi has emphasized infrastructure as a fundamental pillar for ensuring good governance and sustained economic progress.

A flagship initiative in this domain is the Gati Shakti National Master Plan, a USD 1.3 trillion program designed to implement systemic and effective reforms in the infrastructure sector. This initiative aims to enhance connectivity and streamline development projects, fostering rapid progress.

The infrastructure sector encompasses power generation, bridges, dams, roads, and urban development. These projects act as catalysts for economic growth by supporting allied sectors such as housing, commercial real estate, and industrial parks. With India’s vision of achieving a USD 5 trillion economy by 2025, infrastructure development remains a key priority.

Market Size and Investment Outlook

The Indian government has significantly increased capital investments in infrastructure. The Union Budget 2024-25 raised capital outlay for infrastructure by 11.1% to INR 11.11 lakh crore (USD 133.86 billion), representing 3.4% of GDP. Additionally, Indian Railways received an allocation of INR 2.55 lakh crore (USD 30.72 billion), marking a 5.8% increase from the previous year.

The National Infrastructure Pipeline (NIP), which initially comprised 6,835 projects, has now expanded to 9,142 projects spanning 34 sub-sectors. Of these, 2,476 projects are currently under development, with an estimated investment of USD 1.9 trillion. Nearly half of these projects focus on the transportation sector, with 3,906 projects dedicated to roads and bridges.

Railway and Metro Expansion The Indian Railways’ total revenue for FY 2023-24 stands at USD 28.89 billion (INR 2.40 lakh crore) as of March 15, reflecting an increase from USD 26.84 billion (INR 2.23 lakh crore) recorded the previous year.

India’s metro rail network is also expanding rapidly. With 810 km of operational metro lines across 20 cities, India ranks as the fifth-largest metro network globally. By 2024, metro rail lines are expected to reach 945 km across 21 cities, with an additional 919 km under construction in 26 cities. This expansion will soon position India ahead of Japan and South Korea, making it the third-largest metro network worldwide.

Foreign Direct Investment (FDI) and Private Sector Participation

Foreign investment plays a pivotal role in India’s construction sector. Between April 2000 and March 2024, FDI inflows in:

• Construction development (townships, housing, built-up infrastructure, etc.) stood at USD 26.61 billion.

• Construction (infrastructure) activity reached USD 33.91 billion.

Government-backed infrastructure development programs, such as ‘Make in India’ and the Production-Linked Incentive (PLI) scheme, are further attracting global investments. The growing emphasis on roads, shipping, and railway development aligns with India’s goal of achieving a USD 5 trillion economy by 2027.

Sustainable Infrastructure and Future Outlook

India’s infrastructure sector is evolving with a focus on sustainability and self-reliance. Future-ready projects prioritize durability, eco-friendliness, and long-term maintenance. Global collaborations, such as the India-Japan Forum for Northeast Infrastructure Development, underscore international confidence in India’s growth potential.

To meet the demands of its rapidly growing urban population, India needs an estimated USD 840 billion investment in urban infrastructure over the next 15 years. This will be crucial for ensuring well-planned cities, efficient public transport, and resilient energy networks.

With GDP growth projected at 8% over the next three fiscal years, India remains one of the fastest-growing major economies. As global and domestic investments continue to flow into the sector, India’s infrastructure development is poised to drive sustained economic progress and transformation in the coming decade.

Business Strengths

1. Experienced Management Team
Led by Individual Promoters Sunil Raisoni & Shreyas Raisoni and Corporate Promoters Riaan Diagnostic Private Limited & Shradha Infraprojects Limited, along with a Board of Directors boasting 25+ years of experience. A team of qualified engineers drives business growth, ensuring efficient operations and strategic execution.

2. Quality Assurance & Standards
Commitment to high-quality infrastructure and commercial construction through rigorous quality standards, safe structural designs, and premium materials. This focus on excellence enhances competitiveness and client goodwill.

3. Optimal Utilization of Resources
Continuous improvements in execution processes, skill development, and modernization of plants and machinery ensure maximum efficiency and resource optimization. Regular evaluation eliminates bottlenecks for seamless operations.

4. Strong Order Book & Growth
A growing order book reflects future revenue potential and market expansion. With projects across Maharashtra, Uttar Pradesh, Madhya Pradesh, and Tripura, the projected revenue from the ongoing highway project via Digvijay Shradha Infrastructure Private Limited stands at ₹7,000 Lakhs up to March 2025, reinforcing business momentum and industry credentials

Business Strategies

1. Attracting Top Talent
Success is driven by a highly skilled managerial team and dedicated professionals. Expertise, integrity, and informed decision-making ensure business growth and strong project execution.

2. Timely Project Completion
A strong focus on on-time delivery, optimized profit margins, and efficient project execution. Advanced design, engineering, and project management tools enhance productivity and resource utilization.

3. Geographical Expansion
A growing presence across Maharashtra, Uttar Pradesh, Madhya Pradesh, and Tripura. A diversified project portfolio reduces risks and ensures sustainable growth across multiple regions.

4. Competitive Edge
Continuous enhancement of execution capabilities, modern equipment, skilled workforce, and quality materials strengthens market position and ensures best-in-class construction solutions

Business Risk Factors and Concerns

1. Geographical Concentration Risk
Revenue is primarily derived from Maharashtra, Uttar Pradesh, and Madhya Pradesh. Adverse developments in these regions, including economic changes and increased competition, may negatively impact business expansion and financial stability.

2. Construction Defect Risk
Project completion may not always meet required specifications, potentially leading to rework, increased costs, and contractual liabilities, affecting financial performance.

3. Cost Overruns and Market Fluctuations
Project costs may exceed initial estimates due to fluctuations in material, labor, and fuel prices. Rising costs, supply shortages, and delays could impact profitability and cash flow.

4. Joint Venture Compliance Risk
Participation in joint ventures involves legal and operational risks. Non-compliance with contractual obligations could lead to regulatory actions, affecting business operations.

5. Dependency on Third-Party Suppliers
Essential materials such as steel, cement, and bricks are sourced from third parties without long-term agreements. Price fluctuations, supply shortages, or supplier preferences for competitors may lead to cost increases and project delays.

Active Infrastructures Limited faces risks related to geographical concentration, construction defects, cost overruns, joint venture obligations, and dependency on third-party suppliers. These factors could impact financial performance, operational efficiency, and overall business growth.