About Samay Projects Services IPO - Know All about Samay Projects Services and its Industry before applying to the IPO

Samay Projects Services IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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About Samay Projects Services Limited

Business Overview

Samay Project Services Limited is an Engineering, Procurement, and Construction (EPC) service provider specializing in the design, engineering, supply, fabrication, erection, and commissioning of Balance of Plant (BOP) systems. The company primarily undertakes EPC projects in three key areas: (i) Piping Systems, (ii) Tanks and Vessels with Fabricated Structures, and (iii) Fire Protection and Detection Systems / Firefighting Systems (FFS).

These systems are implemented across diverse industries, including Power, Sugar & Distilleries, Iron & Steel, and Infrastructure. The company manages end-to-end execution—from procurement of raw materials to on-site fabrication and erection, ensuring complete system functionality per tender specifications.

Key operations include the use of carbon steel or stainless steel for tanks, with site-based activities such as cutting, rolling, welding, and assembly conducted under the supervision of qualified engineers. The company has delivered multiple power plant orders for piping and FFS solutions and has also executed an international PHE system project in Mauritius in 2020.

As of October 31, 2024, the company had an employee base of 54 employees. The Company also hires contract labourers, as of October 31, 2024, they have total of 179 Skilled, Semi-skilled and unskilled contract labourers working on sites, where the labourers are required for execution of the EPC Projects. The Banker to the Company is Union Bank of India.

Industry Analysis

Indian Infrastructure Industry Overview

India’s growth trajectory in 2023 and beyond is closely tied to infrastructure development, a foundational pillar in its ambition to become a $26 trillion economy. The sector not only enhances economic efficiency but also supports key initiatives like improving ease of doing business and delivering good governance.

Infrastructure development has been prioritized by the Indian government through initiatives like the $1.3 trillion Gati Shakti Master Plan, aimed at systemic reform and improving project execution. Programs such as Smart Cities Mission, Housing for All, and increased emphasis on freight movement are reshaping the logistics and urban development landscape.

India continues to attract global investment interest. Notably, Saudi Arabia plans to invest $100 billion across sectors, including infrastructure. The government’s proactive stance through policies and incentives ensures time-bound delivery of large-scale projects across power, transport, water, and urban infrastructure, acting as a growth catalyst for allied sectors like housing and construction.

Strategic Initiatives & Policy Support

To achieve the $5 trillion economy target by 2025, infrastructure is central to India’s policy framework.
The National Infrastructure Pipeline (NIP), in synergy with the Make in India and PLI schemes, provides a roadmap for sectoral growth.
Historically, over 80% of infrastructure spending has been concentrated in transport, electricity, and irrigation, but the scope is now expanding to meet evolving urban and environmental demands.

Market Size & Key Developments

Budgetary Allocations & Projects

Interim Budget 2024-25 allocated ₹11.11 lakh crore (approx. $133.86 billion) for infrastructure—3.4% of India’s GDP.
Indian Railways received ₹2.55 lakh crore ($30.72 billion), marking a 5.8% increase YoY.
NIP now includes 9,142 projects across 34 sub-sectors, with $1.9 trillion worth of developments underway—50% in transportation, especially roads and bridges.

Logistics and Transport

India's logistics market is projected to grow from $317.26 billion in 2024 to $484.43 billion by 2029, at a CAGR of 8.8%.
Government aims to improve Logistics Performance Index rank to 25 and reduce logistics cost from 14% to 8% of GDP over five years.
Metro rail networks expanded to 945 km in 21 cities with another 919 km under construction.
Monorail in Mumbai (20 km) is now the third-largest in the world.

Civil Aviation & Airports

Vision 2040 anticipates 190–200 operational airports by 2040.
220 air connectivity destinations under UDAN are expected to be completed by 2026, covering 1,000 new routes.
₹98,000 crore ($11.8 billion) is allocated over five years for airport expansion and infrastructure upgrades.

Real Estate & Urban Infrastructure

Q2 2024 witnessed $2.77 billion in real estate investments.
Tier II and III cities are witnessing strong commercial real estate growth, driven by IT, BFSI, and decentralization trends.
Residential real estate also showed momentum with 360,000+ units sold in top-7 cities in 2022.

FDI & Private Sector Role

FDI from April 2000–March 2024 stood at:
- $26.61 billion in construction development
- $33.91 billion in infrastructure construction
The 12th Five-Year Plan proposed $1 trillion in infrastructure investments, with 40% from the private sector.

Growth Outlook and Future Prospects

India needs to invest $840 billion over the next 15 years in urban infrastructure to accommodate its rapidly growing population. A key challenge is ensuring long-term durability and sustainability of physical assets like bridges, ports, airports, and water systems.

Infrastructure expansion is also being driven by:

Urbanization trends and smart city development
Increasing foreign investments and bilateral partnerships (e.g., India-Japan Forum for Northeast development)
Strong emphasis on roads, shipping, and railways to support employment and rural consumption
Government’s push for self-reliance in critical infrastructure

Conclusion

India’s infrastructure sector stands at the forefront of its economic ambitions. Backed by massive public spending, foreign investment, and structural reforms, the sector is undergoing rapid transformation. With the expected 8% GDP growth over the next three years, infrastructure will continue to be a key driver of long-term, sustainable growth. India’s future in infrastructure appears robust and full of opportunity, particularly in transportation, urban development, and digital integration.

Business Strengths

1. Strong Engineering and Design Capability
Equipped with a specialized engineering team and advanced tools like AutoPlant CAD for layout and detailed design, and Canute software for hydraulic calculations in Fire Protection Systems, enabling precision in engineering and routing.

2. Diverse EPC Segment Presence
Demonstrated credibility through successful execution of ₹4,074.66 lakh worth of EPC projects across India and overseas in sectors such as Power, Sugar & Distilleries, Infrastructure, Iron & Steel, and Mining.

3. Established Client Relationships
Long-standing relationships with major customers drive repeat business and high customer retention, contributing to a competitive edge in acquiring new clients.

4. Commitment to Quality and Safety
Holds ISO 9001:2015 certification for EPC services in Piping Systems, Tanks & Vessels, and Fire Protection Systems, ensuring adherence to strict quality and safety standards.

5. Experienced Leadership
Promoted by Mr. Anand R and Ms. Santhi Karthikeyan, with over 16 years of experience in mechanical systems for power plants and industrial projects, providing strategic guidance and sustainable engineering solutions.

Business Strategies

1. Focus on High-Value EPC Projects
Plans include continued operations and maintenance of existing projects while selectively targeting larger EPC contracts, independently or through partnerships. Emphasis will remain on efficient project execution, adoption of modern equipment, enhancement of internal systems, and upskilling of personnel through training in complex infrastructure projects.

2. Strengthening Operational Controls
Aims to improve operational efficiency and cost management to ensure timely and quality service delivery. Strategic measures include adopting industry best practices and continuous employee training to optimize performance.

3. Customer Relationship Development
Strategy focuses on building long-term customer relationships through regular engagement, understanding project-specific needs, and ensuring accurate, timely delivery of quality services to drive repeat business and growth.

Business Risk Factors and Concerns

1. High Customer Concentration
Revenue is heavily dependent on a few key clients—69.14% and 89.13% (H1 FY24) and 62.34% and 87.14% (FY24) was derived from the top five and top ten customers, respectively. Loss of any major client or reduction in their order volumes could adversely impact financial performance and increase revenue volatility.

2. Absence of Long-Term Contracts
Business is primarily driven by purchase orders without long-term agreements. Project orders are placed on an as-needed basis depending on the CAPEX plans of clients. Any sudden cancellation or delay in these plans due to budget constraints or market dynamics may disrupt revenue flow.

3. Risk of Project Non-Award or Termination
EPC projects, especially from government clients, are awarded through competitive bidding and depend on meeting strict technical and financial pre-qualification criteria. There is no assurance of order continuity or future wins, and non-reimbursable bid preparation costs pose additional financial exposure.

4. Dependency on Raw Material Procurement
Major sourcing is done from Chhattisgarh, Maharashtra, Tamil Nadu, Telangana, and internationally from China, Europe, and UAE. Any disruption in these supply chains could affect project timelines and operational costs.

5. Industry Demand Volatility
EPC services are closely linked to the performance of customer industries like Power, Sugar, Distilleries, Iron & Steel, and Infrastructure. Any downturn in these sectors could reduce demand, causing pricing pressure and order fluctuations.

6. Customer Relationship Sensitivity
Business sustainability depends on maintaining strong customer relationships, meeting expectations on price, delivery, and quality. Inability to do so may lead to order losses or reduced business volumes.

7. Lack of Contractual Exclusivity
Customers are free to engage multiple EPC providers. No exclusivity clauses increase competition and pose a challenge to repeat or sustained business engagements.

Samay Project Services Limited faces key risks from high customer concentration, lack of long-term contracts, dependency on volatile industries, and raw material sourcing vulnerabilities. Additionally, its success is linked to competitive project bidding, customer satisfaction, and the financial health of its clients. Any disruption in these areas could materially impact the company’s operational and financial stability.