About Vision Infra Equipment Solutions Limited

Vision Infra Equipment Solutions story started in 1983 as a family business engaged in the refurbishment of commercial vehicles. Since then, they have grown in purpose and scale, spreading their roots far and wide. Now in their generational journey, their focus is on leasing, renting, refurbishing, and selling road construction equipment and other types of construction machinery. They also manage works contracts, projected crushing, soil stabilization, recycling, milling, and paving.

They have built a reputation for delivering high-quality equipment and reliable service. They prioritize clear, straightforward business practices and put their customers first. Their expertise is in finding machinery at the right prices, leasing it to reputable clients across the country, and selling it at the optimal time.

Looking ahead, “VIESL” aims to support India’s infrastructure development. They provide machinery that offers great value and helps their customers achieve their project goals. They are eager to contribute to India’s progress with solutions that consider both environmental and social responsibilities.

INDUSTRY SCENARIO
India has the second-largest road network in the world, spanning over 6.3 million kms. Over 64.5% of all goods in the country are transported through roads, while 90% of the total passenger traffic uses road network to commute. 

Under the Union Budget 2023- 24, the Government of India allocated Rs. 2.7 lakh crore (US$ 33 billion) to the Ministry of Road Transport and Highways. The Roads sector is expected to account for 18% capital expenditure over FY19-FY25. In FY22 (until November 2021) private sector invested Rs. 15,164 crore (US$ 1.98 billion) in roads. 

India's road network has grown 59% to become the second-largest in the world in the last nine years. India has nearly 64 lakh km of total road network and the National Highways network alone stood at 145,240 km in 2022-23 compared to 91,287 km in 2013-14. 

NHAI (National Highways Authority of India) is planning to raise Rs. 40,000 crore (US$ 5.72 billion) to monetize its highway assets through Infrastructure Investment Trust (InvIT). 

India had a total of 97,830 km of National Highways in 2014-15 which has expanded to 145,155 km by March 2023. NHAI plans to construct 25,000 kms of national highways in 2022-23 at a pace of 50 km per day. In August 2022, Minister for Road Transport and Highways Mr. Nitin Gadkari inaugurated and laid the foundation stone of 6 National Highway projects of 119 Kms worth Rs. 2,300 crore (US$ 288.63 million) in Indore, Madhya Pradesh.

Road transport is the dominant mode of transport in India, both in terms of traffic share and contribution to the national economy. Apart from facilitating the movement of goods and passengers, road transport plays a key role in promoting equitable socio-economic development across regions of the country. It also plays a vital role in social and economic integration and development of the country. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport a greater significance in both passenger and freight traffic vis-à-vis other modes of transport.

India has about 63.73 lakh km of road network, which is the second largest in the world. 

National Highways play a very important role in the economic and social development of the country by enabling efficient movement of freight and passengersand improving access to the market. MoRTH and its implementing agencies have implemented multiple initiatives in the last 8 years to augment the capacity of the National Highway infrastructure in India. 

In the Union Budget 2023-24, the government has decided to raise the allocation towards the Ministry of Roads by some 36% to Rs. 2.7 lakh crore (US$ 32.6 billion) for 2023-24. 

In FY23, the total length of National Highways in the country was 1,45,240 km. 

National Highways had increased from 91,000 km in 2008 to 1,41,000 km in 2022, and the pace of construction had improved from 12 km a day to 42.03 km in FY23. 

In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated and laid the foundation stone of 8 National Highway projects of 226 km length worth Rs. 1800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra. In October 2022, the Prime Minister of India laid the foundation of road and ropeway projects worth more than Rs. 3,400 crores (US$ 410 million) in Mana, Uttarakhand. A network of 35 Multimodal Logistics Parks is planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore (US$ 5.5 billion), which once operational, shall be able to handle around 700 million metric tonnes of cargo. Of this, MMLPs at 15 prioritized locations will be developed with a total investment of about Rs. 22,000 Crore (US$ 2.6 billion). 

Government is working towards the development of a national highway network of 2 lakh kms by 2025. The Indian Railways expects to complete total revenue of Rs. 2,64,500 crore (US$31.81 billion) by the end of 2023-24.

Increasing investments in Indian infrastructure
The National Infrastructure Pipeline (NIP) for 2019-2025 is a first-of-its-kind, whole-of-government exercise to provide worldclass infrastructure to citizens, improving their quality of life. 

Infrastructure is the backbone of any country. Its development implies growth in all sectors of the economy, not to mention real estate, an indirect beneficiary of every headwind in infrastructure sector. The PM Awas Yojna and the extended credit-linked subsidy scheme address the affordability concern by provisioning increment in the PM Awas Yojna by 66% to 79,000 crores and extension of CLSS till 2027. 

FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.23 billion and US$ 28.95 billion, respectively, between April 2000-September 2022. 

In January 2023, the Construction arm of Larsen & Toubro secured orders for its power transmission & distribution and buildings & factories businesses to establish a 112.5MW Solar Power Plant in West Bengal and to construct a 600-bed super speciality hospital in Mumbai, respectively. In December 2022, BHEL formed a consortium with Titagarh Wagons and is among five entities which have bid for the mega Rs. 58,000 crore (US$ 7 billion) contract to manufacture 200 Vande Bharat trains and maintain them for the next 35 years. 

In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated and laid the foundation stone of 8 National Highway projects of 226 km length worth Rs. 1,800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra. In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated 7 National Highway projects worth Rs. 2,444 crore (US$ 295 million) with a total length of 204 km in Rewa, Madhya Pradesh. In November 2022, the Prime Minister of India laid the foundation stone of various road projects worth over Rs. 2200 crore (US$ 2.6 billion), namely the Medak-Siddipet-Elkathurthy section of NH-765DG; Bodhan-Basar-Bhainsa section of NH-161BB; Sironcha to Mahadevpur Section of NH-353C in Telangana. 

In October 2022, National Highways Infra Trust (NHAI InvIT), the infrastructure investment trust sponsored by the National Highway Authority of India (NHAI) to support the Government of India's National Monetization Pipeline, raised a sum of Rs. 1,430 crore (US$ 172.6 million) from domestic and international investors through the placement of its units, for part funding its acquisition of three additional road projects from NHAI. As many as 52 critical infrastructure gap projects identified by MoPSW for connecting maritime ports and IWTs (Inland Waterway Terminals) to be taken up under PM Gati Shakti National Master Plan. Currently, the DPR of a total of 56 projects (including 11 IWT projects) under this category with a total of 1215 km length are under the bidding stage for the feasibility assessment of these projects, which is being carried out by NHAI.

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED COMPETITIVE STRENGTHS
1. They own a large and young fleet of road construction equipment
2. Wide presence in domestic market with vast customer base
3. Leverage their capabilities to capture strong industry tailwinds and growth prospects for road infrastructure
4. In house execution team and established track record
5. Order Book for road construction activities across India
6. Experienced Promoters and senior management team
7. Stable financial performance

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED STRATEGIES
1. Expansion of their geographical footprint
2. Continue to enhance their core strengths by attracting, retaining and training skilled personnel and process up gradation
3. Foster Strong relationship with suppliers and customer and expand their customer base
4. Continue to focus on building young fleet of equipment with quick equipment turnover
5. Cost effective procurement

VISION INFRA EQUIPMWNT SOLUTIONS LIMITED RISK FACTORS & CONCERNS
1. They generate a significant percentage of their revenue from few clients.
2. The road construction industry is sensitive to the government infrastructure spending or regulatory changes.
3. They derive a significant portion of their revenue from trading and refurbishment activities, for which they have to rely on third parties.
4. They derive a certain portion of their income from profit on sale of fixed assets
5. The construction equipment industry is sensitive to changing economic conditions and various other factors.