About Savy Infra & Logistics Limited

BUSINESS OVERVIEW

Savy Infra & Logistics is an Engineering, Procurement, and Construction (EPC) company specializing in earthwork and foundation preparation for infrastructure projects, including road construction, embankments, sub-grade preparation, granular sub-bases, and bituminous or concrete surfaces. The company has evolved from supplying quartzite to delivering comprehensive civil engineering services, such as excavation, grading, utility work, paving, and logistics management of excavated materials.

Core EPC services include large-scale earthmoving, demolition, mechanical excavation, shoring, strutting, side protection, slush removal, and disposal of excavated materials. Equipment is primarily rented, including rock breakers, heavy excavators, and blasting tools, enabling efficient operations with minimized capital ownership costs.

In the logistics segment, Full Truck Load (FTL) services are offered across the infrastructure, steel, and mining sectors, with a point-to-point delivery model that ensures reduced handling, faster transit, and lower damage risk. Operations follow an asset-light model by leasing trucks and manpower, reducing overhead costs related to interest, depreciation, theft, accidents, and maintenance, thereby improving profit margins.

Completed projects include embankments, subgrade construction, shoulder and median filling, area grading, land leveling, and fencing, across multiple states including Gujarat, Maharashtra, Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Karnataka, and Odisha. As of April 30, 2025 the company had employed 33 full-time employees at their locations and project sites. The Banker to the company is HDFC Bank Limited.

INDUSTRY ANALYSIS

Engineering Sector in India: Reimagining Growth Through Infrastructure and Innovation

India’s Capital Goods manufacturing industry forms a robust foundation for key sectors such as engineering, construction, infrastructure, and consumer goods. The demand for engineering services is driven by large-scale capacity expansion across infrastructure, power, mining, oil & gas, steel, automobile, and consumer durables industries.

India holds a competitive edge due to its cost-effective manufacturing, deep market insight, technological advancements, and innovation across engineering sub-segments.

Government Support & Infrastructure Initiatives

• In the Union Budget 2025-26, the government allocated ₹2,873.33 crore (US$ 330.8 million) to the Ministry of Road Transport and Highways, marking a 2.41% increase from the previous year.

• The launch of the National Infrastructure Pipeline (NIP) aims to mobilize ₹111 lakh crore (US$ 1.3 trillion) in infrastructure investments during FY20–25. Currently, NIP has over 9,637 projects, cumulatively valued at over US$ 2 trillion.

• The total length of roads constructed in FY23 reached 10,331 km, significantly up from 6,061 km in FY16.

• In line with asset monetization goals, the NHAI InvIT has raised over ₹26,125 crore (US$ 3.1 billion) from institutional investors as of January 2024.

India now boasts one of the world’s largest road networks (12,349 km), with the national highway length expanding by 49%, from 97,830 km in 2014-15 to 146,145 km in January 2024. The highway construction pace improved from 12.1 km/day in 2014-15 to 28.3 km/day in FY23. The government targets construction of 10,000 km of national highways in FY26.

Engineering Sector Market Dynamics

• As of FY25 (up to December), engineering goods exports stood at ₹7,61,343 crore (US$ 87.22 billion).

• The Capital Goods sector has grown from ₹2.29 lakh crore (US$ 27.58 billion) in 2014-15 to ₹4.29 lakh crore (US$ 51.55 billion) in 2023-24.

• Electrical machinery imports rose to US$ 12.3 billion in FY24. The Indian electrical equipment segment includes generation equipment (boilers, turbines, generators) and T&D equipment (transformers, cables, etc.).

• The sector contributes about 8% to the manufacturing sector's value and 1.5% to India's GDP.

Future Outlook

• The India Construction Equipment Market is projected to grow from ₹69,046 crore (US$ 7.91 billion) in 2025 to ₹1,02,827 crore (US$ 11.78 billion) by 2030, at a CAGR of 8.3%.

• The construction equipment industry is expected to reach 165,097 unit sales by 2028.

• The auto components industry, contributing 2.3% to India’s GDP, is poised to become the third largest globally by 2025.

• Engineering goods exports are projected to touch US$ 200 billion by 2030.

With consistent infrastructure development and supportive government policies such as ‘Make in India’ and reforms to ease business, the engineering and capital goods sector is well-positioned for sustained growth.

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Road Sector in India: Paving the Way for National Growth

India has developed the second-largest road network globally, spanning over 6.7 million km. Roads handle more than 64.5% of freight and 90% of passenger traffic in the country.

Budgetary Push & Capital Expansion

• Under the Union Budget 2025-26, the Ministry of Road Transport and Highways was allocated ₹2.87 lakh crore (US$ 33.07 billion) — a 2.41% rise over FY25.

• Capital expenditure was increased to ₹11.21 lakh crore (US$ 129 billion), reflecting a 10.1% jump from the revised estimate of ₹10.18 lakh crore (US$ 117.2 billion).

Key Infrastructure Highlights

• As of July 25, 2024, the total national highway length stood at 146,145 km, with 12,349 km constructed in FY24.

• Construction equipment sales reached 135,650 units in FY24, growing 26% YoY — following a 25% growth in FY23.

• In FY22, 85,385 units of construction equipment were sold. A reduction in GST on construction equipment from 28% to 18% has also helped boost the sector.

North-East Region Development

• Over the past decade, 9,984 km of NHs have been developed in the North-Eastern Region (NER) with an expenditure of ₹1.07 lakh crore (US$ 12.87 billion).

• Currently, 265 NH projects spanning 5,055 km and valued at ₹1.18 lakh crore (US$ 14.23 billion) are under implementation.

• The SARDP-NE programme aims to enhance road connectivity between remote areas and urban centers in the Northeast.

Market Size & Private Sector Participation

• FY25 has set a target of constructing 10,421 km of NHs, lower than FY24 due to delays in clearances during elections.

• NHAI recorded its highest-ever capital expenditure in FY24 at ₹2.07 lakh crore (US$ 24.79 billion), a 20% increase YoY.

• As of February 2025, there are 826 PPP road projects, part of 1,825 total road infrastructure initiatives.

• Notably, Ceigall India has been awarded a key six-lane greenfield bypass project in Ludhiana under the Ludhiana-Ajmer economic corridor using the Hybrid Annuity Model (HAM).

Outlook and Opportunities

• According to SBI Capital Markets, FASTag toll collections are projected to reach ₹72,500 crore (US$ 8.63 billion) in FY25.

• NHAI expects to generate ₹1 lakh crore (US$ 14.3 billion) annually through toll and monetization.

• Under the Parvatmala Pariyojana, over 250 ropeway projects totaling 1,200+ km are planned within five years.

• The government aims to award 600+ sites for Wayside Amenities (WSAs) by FY25, with 144 already allotted.

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These developments underscore India’s strategic focus on infrastructure, especially in the engineering and roads sectors, as key enablers of economic growth, job creation, and global competitiveness in the coming decade.

BUSINESS STRENGTHS

1. Asset-Light Business Model
Trucking, machinery, and equipment are outsourced to third-party contractors, allowing operational flexibility, reduced capital expenditure, and lower risk exposure related to breakdowns, theft, and maintenance. This ensures focused and timely project execution.

2. Integrated Operations
End-to-end earthwork and logistics solutions are offered as part of integrated EPC services—from excavation to the removal of soils and hard rocks. This unified approach enhances efficiency, maintains quality standards, and supports on-time project delivery.

3. Strong Financial Performance
In FY24-25, the company reported Revenue from Operations of ₹28,339.05 lakhs and Profit After Tax of ₹2,387.79 lakhs. It is currently managing 12 ongoing projects worth ₹20,142 lakhs, with an order book of ₹23,056 lakhs. Robust financials reflect a strong project pipeline, technical expertise, and consistent execution capability.

4. Experienced Leadership
Founded by Mr. Tilak Mundhra and mentored by Mr. Liladhar Mundhra, who brings over 20 years of experience from Bhutnath Textiles. His strategic insight and operational acumen have played a key role in the company’s growth and efficient management practices.

BUSINESS STRATEGIES

1. Entry into Green Logistics
Plans are underway to launch electric vehicle (EV) logistics operations, focusing on 38 MT EV trucks leased for efficient large-scale transport. This move is expected to reduce fuel costs by up to 80%, lower maintenance expenses, and improve reliability. Long-term contracts will ensure predictable revenue streams, supporting scalable growth in the sustainable logistics sector.

2. Geographic Expansion
With a track record of 49+ completed projects, the company is targeting expansion across high-growth states in India. The strategy focuses on entering metropolitan and emerging markets to tap into increasing urbanization and infrastructure development, while building strategic partnerships with local entities.

3. Operational Growth in Existing Markets
Efforts will continue to scale operations in regions where strong networks with clients, suppliers, and familiarity with local conditions already exist. Rising infrastructure investment and favorable government policies are expected to fuel further growth in these markets.

4. Strengthening Client Relationships
Led by Tilak Mundhra and Mukul Shrivastava, the company emphasizes direct client engagement and tailored solutions. Strong relationships with existing and potential clients are central to enhancing trust and driving repeat business.

BUSINESS RISK FACTORS & CONCERNS

1. Customer Concentration Risk
A significant portion of revenue is derived from a limited number of clients in the infrastructure, steel, and mining sectors. Most engagements are based on short-term purchase orders rather than long-term contracts. Loss or reduced business from any major customer could materially impact financial performance and operations.

2. Segment Concentration Risk
Revenues are primarily concentrated in the Engineering, Procurement, and Construction (EPC) segment. Any slowdown in this segment could adversely affect revenue, profitability, and business continuity.

3. Geographic Concentration Risk
Despite a pan-India presence, operations are historically concentrated in Gujarat, Maharashtra, and Andhra Pradesh, with over 97% revenue in FY25 stemming from the West and South Zones. Any adverse regulatory, political, or economic developments in these regions could significantly disrupt business and cash flows.

4. Logistics Disruption Risk
The logistics business relies heavily on uninterrupted road transportation. Factors such as political unrest, adverse weather, accidents, driver-related issues, or natural calamities can disrupt operations, leading to delays, cost escalations, and damage to reputation.

Savy Infra & Logistics faces key risks due to client concentration, dependency on the EPC segment, regional exposure, and logistics disruptions. Any adverse developments across these areas may significantly impact the company’s operational stability, financial performance, and growth prospects.