About Globe Civil Projects Limited
BUSINESS OVERVIEW
Globe Civil Projects Company is an integrated EPC (Engineering, Procurement, and Construction) firm headquartered in New Delhi, operating across 11 Indian states, including Uttar Pradesh, Maharashtra, Gujarat, and Karnataka. The company specializes in the execution of infrastructure projects in sectors such as Transport & Logistics, Social & Commercial infrastructure, and Non-Infrastructure developments like commercial offices and housing.
Key strengths lie in the construction of educational institution buildings and railway infrastructure, with diversification into specialized projects like railway bridges, airport terminals, elevated railway terminals, and hospitals. The company also engages in the trading of TMT steel and delivers MEP (Mechanical, Electrical & Plumbing) services, along with HVAC, architectural and structural works, and firefighting and fire alarm systems.
As of March 31, 2025, the comapny's workforce comprised of 122 full-time employees. The Bankers to the Company are HDFC Bank Limited, ICICI Bank Limited, Kotak Mahindra Bank Limited and Canara Bank.
INDUSTRY ANALYSIS
EPC Contracts: A Comprehensive Overview
EPC stands for Engineering, Procurement, and Construction—a widely adopted contract model in the construction sector. Under this format, a single contractor assumes responsibility for the entire project lifecycle—from detailed engineering and equipment procurement to final construction and commissioning. Such contracts are typically referred to as turnkey projects, with EPC contractors serving as the single point of accountability.
EPC contracts are globally preferred due to their ability to provide cost and timeline certainty, making them especially attractive to developers who may lack technical expertise or the resources to manage risks independently. By transferring key risks—such as labor shortages, material price volatility, workplace accidents, and schedule delays—to the contractor, developers can concentrate on strategic objectives with limited involvement in day-to-day execution.
While this model ensures streamlined execution, it often comes at a premium cost. Contractors typically factor in all potential risks and contingencies, which inflates the overall contract price. Developers may seek to reduce this premium by negotiating shared responsibilities for unforeseen factors, like raw material price fluctuations, thereby promoting collaboration and better financial terms.
One of the key benefits of EPC contracts is their hands-off nature for developers, who can reduce operational burdens by relying entirely on the contractor to meet design and quality standards. However, this also necessitates rigorous pre-contract design specifications and often third-party engineering reviews to safeguard developer interests—especially in large-scale, high-value projects.
Despite their advantages, EPC contracts can alter traditional developer-contractor relationships, introducing transactional dynamics that may strain previously collaborative engagements. As such, developers are advised to deploy EPC models selectively, particularly for large infrastructure or industrial projects.
Alternative models such as Cost-Plus and Hybrid EPC contracts are gaining popularity. Cost-Plus contracts allow developers greater project control by reimbursing actual costs plus a profit margin, while Hybrid EPC models combine initial time-and-material phases with fixed-price components, offering a balance between flexibility and budget control.
TMT Bar Industry in India: Demand, Supply & Growth Outlook
Consumption Trends
India's Thermo-Mechanically Treated (TMT) bar consumption has witnessed impressive growth. In FY23, apparent consumption surged 20.9% year-on-year, reaching 39 million metric tonnes (mmt), up from 32.3 mmt in FY22. This momentum continued into FY24, with estimates suggesting consumption reached 41.73 mmt.
This growth has been fueled by strong real estate activity, particularly in urban centers like Mumbai, where property registrations rose 7% YoY to over 116,000 units in FY23.
Price Trends
Rebar prices have also escalated in line with demand:
-
Blast Furnace (BF) route rebar: INR 60,500/ton (FY23) vs INR 56,000/ton (FY22)
-
Induction Furnace (IF) rebar: INR 56,200/ton (FY23) vs INR 51,300/ton (FY22)
Although the price differential between primary and secondary mills slightly narrowed, it remained significant at INR 4,300/ton.
Demand Drivers
The Indian construction boom—driven by public infrastructure, housing schemes, and urbanization—is a key driver of TMT bar demand. Their properties like high strength, ductility, and earthquake resistance make them ideal for modern buildings, especially in seismically active regions.
TMT bars also align with sustainable construction goals. They help build resilient infrastructure that requires fewer repairs, promoting long-term cost efficiency and environmental responsibility.
Production Landscape
India meets its TMT bar demand domestically, with production rising 16% in FY23 to 39 mmt, and estimated at 42 mmt in FY24 (up 7.7%).
This dual-methodology production strategy underscores India’s capacity and adaptability in steel manufacturing.
Growth Forecast
TMT bar consumption in India is projected to grow at a ~7% CAGR, reaching over 62 mmt by FY2030. Government initiatives like the National Infrastructure Pipeline, PM Gati Shakti, and Make in India are expected to sustain this growth. Additionally, schemes like Atmanirbhar Bharat, PLI, and the revised Domestic Manufacturing of Iron & Steel Products (DMISP) policy will further boost local production.
However, logistical costs and input volatility, particularly in fuel and raw materials, remain critical risk factors. Political events like the FY25 general elections may also temporarily impact steel demand and trade flows.
Export & Import Dynamics
Between April–January FY25:
-
Exports: Maldives led with 64.5% share, followed by Bhutan (8.7%) and Bangladesh (7.1%).
-
Imports: Dominated by Thailand (99%), with minimal shares from Bangladesh, Germany, and Spain.
In value terms, imports rose from INR 521.1 million in FY22 to INR 3,840.5 million in FY25 (Apr–Jan). Volumes also grew from 10.2 thousand tons (FY22) to 68.5 thousand tons (FY25).
Competitive Landscape
India’s TMT bar sector is highly competitive, with major players focusing on quality, innovation, and distribution:
-
Tata Steel (Tata Tiscon): Market leader with high-strength, earthquake-resistant bars.
-
JSW Neosteel and Jindal Panther: Strong national presence.
-
Kamdhenu Nxt: Known for corrosion-resistant TMT bars.
Regional players are also innovating, offering cost-effective and customized products. Quality features—like seismic resilience, corrosion resistance, and high ductility—are now crucial differentiators, especially in regions like Gujarat, Maharashtra, and Uttar Pradesh.
Government-backed infrastructure projects such as PMAY and raw material policies continue to support industry growth. However, managing input costs and maintaining competitive pricing remains vital for sustained success.
BUSINESS STRENGTHS
1. Robust Project Management & Execution Track Record
With over 20 years of legacy, the company has successfully completed 37 projects and is currently executing 13 ongoing projects across various segments for corporate and government clients.
2. Expanding Order Book & Strong Pre-Qualification Credentials
As of March 31, 2025, the Order Book stood at ₹6,691.02 million, comprising 13 ongoing projects, including Infrastructure (Social, Commercial, Transport & Logistics) and Non-Infrastructure (Housing and Commercial Office) segments. Letters of intent have also been received for 2 new projects. The Book-to-Bill Ratio has consistently remained strong, reaching 3.06x as of December 31, 2024.
3.Strong and Consistent Financial Performance
Revenue from operations grew from ₹2,857.09 million in FY22 to ₹3,321.62 million in FY24 at a CAGR of 7.82%. Profit before tax increased significantly from ₹70.19 million to ₹209.87 million, posting a CAGR of 72.92% over the same period.
4. Experienced Leadership
Promoters and Directors Ved Prakash Khurana, Nipun Khurana, and Vipul Khurana bring an average of 19 years of industry experience, backed by a capable senior management team overseeing strategic planning and business growth.
BUSINESS STRATEGIES
1. Focus on Government Infrastructure Projects
Strategically targets government-funded infrastructure, especially the construction of educational institutions and hospital buildings, aligned with national initiatives like NIP, NMP, and Gati Shakti.
2. Geographical Expansion
Currently operating in 11 states, including Uttar Pradesh, Maharashtra, Gujarat, and Karnataka, with plans to further expand into new regions to leverage growth opportunities and enhance market presence.
3. Enhance Pre-Qualification & Bidding Capabilities
Accredited as a Class I Super Contractor with CPWD, enabling independent bidding for projects up to ₹6,500 million. Continued focus on qualifying for larger and diverse projects to strengthen revenue visibility and operational scalability.
4. Strengthen Execution and Timely Delivery
Emphasis on timely project delivery and quality execution through advanced design, engineering, and project management tools, including ERP systems. Investment of ₹142.55 million planned for new machinery and skilled workforce development to boost productivity and asset utilization.
5. Pursue Strategic Alliances and Joint Ventures
Continued formation of strategic partnerships and joint ventures to share resources, mitigate risks, and facilitate market expansion. As of March 31, 2025, six joint ventures have been established to explore new opportunities.
BUSINESS RISK FACTORS & CONCERNS
1. Heavy Dependence on CPWD
A significant portion of revenue—up to 57.48% in FY23—has historically been derived from Central Public Works Department (CPWD) projects. Any slowdown in CPWD’s project pipeline or inability to secure new contracts may materially affect business performance.
2. Revenue Dependence on Specific Segments and Geography
The Social & Commercial Infrastructure segment, particularly educational institution projects, contributed 61.95% and 47.09% of construction revenue for the nine months ended December 31, 2024, and FY24, respectively. Operations remain concentrated in Delhi, Uttar Pradesh, and Karnataka, with 66.07% of revenue in the nine-month period coming from Delhi alone.
3. Declining Bid Success Rate
The success rate of awarded bids dropped from 54.55% in FY24 to 9.09% in the nine-month period ended December 31, 2024, impacting the flow of new projects and introducing volatility in revenue and cash flow.
4. Reliance on Joint Ventures
Projects under Joint Ventures (JVs) contributed up to 36.40% of revenue in the recent nine-month period. Non-performance by JV partners may increase financial burden and operational risks.
5. Revenue from Trading Activities
The company derives a portion of its income from trading TMT steel, accounting for up to 14.92% of operational revenue in FY23. Any dip in steel demand or price volatility may impact overall revenue.
6. Competitive and Regulatory Risks
Success is closely tied to the ability to meet pre-qualification criteria and succeed in competitive bidding. Technical disqualifications or regulatory changes can limit opportunities and disrupt operations.
7. Regional Growth Risks
While aiming to grow in Northern India, limited diversification into other regions may constrain market reach and expose the business to regional economic or policy risks.
Globe Civil Projects Company’s revenue and growth are closely tied to government-backed infrastructure projects, particularly in Northern India, with heavy reliance on CPWD and joint ventures. Key risks include geographic concentration, high dependence on select clients, fluctuations in project awards, and sensitivity to demand for construction and trading services.
