MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY OVERVIEW
BUSINESS OVERVIEW
Our Company is founded and promoted by Chandigarh based Mr. Vishal Bhardwaj and his wife Mrs. Shweta Bhardwaj in the year 2017 with a motive to take over the business of M/s. Promax Technologies (a sole proprietorship firm of Vishal Bhardwaj) as a going concern basis and to continue the similar and related business activity in the name of the company. This was done to corporatize and build a professionally managed and Board driven organization.
M/s. Promax Technologies (a sole proprietorship firm of Vishal Bhardwaj) was into undertaking of EPC projects (Engineering, Procurement and construction) of Electric substation & Transmission line, Power distribution, Hydro, Solar power stations etc. operating since 2006.
In the year 2020, Promax Power has taken over the Project management and execution business undertaking of M/s. Promax technologies as a going concern on a slump sale "as is where is" basis vide Slump Sale Agreement dated March 31, 2020 at a value of Rs. 1.82 crores.
Till the year 2019, there was no major activity in the company. Our company achieved its major turnover of Rs. 7.76 crore in FY 2019-20 and turnover of Rs. 36.87 crores in FY 2020-21 respectively. Our company is into the business of Execution of Engineering, Procurement, Construction (EPC - Power & Solar) projects for Electrification, Power Substations, Underground Cabling from 11kV to 220kV. The company also provides Turnkey execution of Civil Infrastructure projects such as Industrial buildings and Turnkey execution of water infrastructure management projects such as water transmission and distribution work.
As of March 31, 2023, our organization holds an order backlog of approximately Rs. 62 Crores, with projects in various stages of execution. Additionally, we are in the process of negotiating and discussing orders worth Rs. 25 Crores.
We provide high quality professional solutions, design and engineering services to our customers. Our highly skilled professionals and dedicated team are ever ready to deliver their efficient services. Promax provides technical expertise in the most efficient and cost-effective way, helping to ensure the highest degree of reliability and availability of the project. Having achieved certain degree of expertise after successfully executing various projects, we have an extremely experienced and diverse set of professionally trained and qualified engineers having versed ability in tackling and providing solutions to our customers and capability to handle all requirements and installations even at the highest scale and magnitude.
We are having a professional managed team to execute our projects having vast techno-commercial knowledge and experience in the field of EPC.
The core competencies of our team comprise of the following:
- Experience of execution of Transmission line and Substation up to 220KV voltage level.
- Working experience in hilly regions of North-East India, Chhattisgarh, Odisha and J&K etc.
- In-house design set-up.
- In-depth knowledge of Safety and Environment.
- Highly qualified and skilled civil team.
- Working experience in harsh climate condition including coastal areas.
- Excellent quality team members, having strong hold on ISO and other Standards.
Promax is committed to provide services and products to its clients at the highest attainable standard of safety and environment protection for its employees, contractors and other interested parties throughout all areas of its activities, in accordance with client expectations, demands and schedules, providing flexible performance and quick reactions to changes and meeting the quality requirements defined in standards and specifications.
Promax is an ISO 14001:2015 and ISO 45001:2018 certified organization engaged in the business of engineering procurement construction for electrification, civil infrastructure and water infrastructure management projects. We are committed to provide quality work to our customers that meets the project standards and specifications for materials, workmanship, tolerances, schedules and public service while maintaining profitability and competitiveness. Promax ensures continual improvement through quality processes which are directed by a strong management team.
Our Business Area
Transmission Line:
Promax has over 15 years of experience as sub-contractor and Turnkey contractor in construction and laying of Transmission line including Extra High Tension & High Tension (HT) Transmission Line & Sub Station bays varying up to 220 KV. Promax has over 200 Kms experience in Transmission Lines of 220 KV and 132 KV. We have done over 20 Line projects on EPC Turnkey basis. We have excellent relationships with leading tower parts and conductor manufacturers. We have a lot of in-house design experience of tower design for various terrains and climatic conditions. All erection and stringing tools are available with us in-house. We have excellent Project Execution teams who have expertise in getting all requisite clearances from statutory authorities like Transco, Discoms, Railways, Telecom, etc. We have experience of working in West Bengal, Maharashtra, Jharkhand and & Odisha Sate. We deploy an experienced labour force.
Power Transmission & Distribution:
Our main sources of work tend to be complete electrification of high- rise buildings, industrial houses, hotels, multiplexes and the commercial complexes. We undertake electrification works of all kinds, from complete installation to new additions to circuits, from mains distribution (220 KV) to lighting installations. All works carried out by PROMAX will be provided with the necessary paperwork such as risk assessments and method statements which brings us in line with health and safety at work.
Examples of installation carried out:
220 KV installations
High/Low Bay lighting
Low voltage distribution panels
Sub main installations
Control panel design and build
Factory refit installations
Car Parking lighting
Tray or trucking systems
Substation: Promax is engaged into execution of EPC (supply, erection testing and commissioning) of switchyards for last 15 years. We undertake all types of electrical works like indoor and outdoor lighting, laying of cables, erection of transformers and switchyards up to 220kv, erection of poles, installation of floodlights etc. which also includes design and detailed engineering for EHV sub stations and transmission lines. We have a very good organizational set up comprising of highly qualified & experienced technical executive and administrative staff for effectively executing different project activities.
Solar Projects EPC: High quality services in the EPC space, from the initial design stage to the start-up of the installation, Management and implementation. Will deploy proven, state of the art solar technology and build local solar. Expertise to deliver affordable solar power. EPC contracts are the most common form of contract used to undertake construction work by private/ government sectors on large and complex solar PV power projects. Under an EPC contract, we deliver a complete facility to a developer who needs only "turn a key" to start operating power plants and thus generate revenue.
- Basic and detailed engineering
-Technical due diligence regarding energy generation
-Topography study and the calculation of earth works
-Structures and found a then design & calculations
-Design for the install of structures
-Low voltage and medium voltage system design
-Technical advice for the selection of plant equipment
Sewerage Treatment Plant:
Civil construction work in sewerage treatment projects requires high technology and skill. STP consists sludge collector, Pumping stations, Mixing chambers and Storage and distribution system, where the quality of civil work is always on priority due usages of various chemical compound.
Water Treatment Plant: Water treatment is any process that improves the quality of water to make it more acceptable for a specific end-use. The end use may be drinking, industrial water supply, irrigation, river flow maintenance, water recreation or many other uses, including being safely returned to the environment.
Our Competitive Strengths:
Organizational stability along with management expertise: Our group has an established track record of over 15 years which indicates the companys ability to weather economic and business cycles and competent promoters have over a decade of relevant experience. This indicates our ability to maintain business viability and steer the business though operational hurdles. Our promoters are the guiding force behind the operational and financial decision of our company. Our promoters are responsible for the entire business operations of the company along with an experienced team of professional who assist them. This indicates our ability to maintain business viability and steer the business though operational hurdles.
Smooth flow of operations: We have maintained good relationship with our major customers. We are successful in building a strong client base for our business. Our existing relationships help us to get repeat business from our customers. This has helped us to maintain a long-term working relationship with our customers and improve our customer retention strategy. We believe that our existing relationship with our clients represents a competitive advantage in gaining new clients and increasing our business.
1. Well-defined organizational structure:
The company has a qualified and experienced management that has decision making powers. It is expected to benefit from the managements ability to ensure smooth flow of operations. Our Company is managed by a team of competent personnel having knowledge of core aspects of our Business. We have an experienced management team having vast experience in the industry. We believe that our senior management has pioneered our growth and fostered a culture of innovation, entrepreneurship and teamwork within our organization. We believe that a motivated and empowered employee base is key to our competitive advantage. Our personnel policies are aimed towards recruiting talented employees and facilitating their integration into our organization and encouraging the development of their skills and expertise. We believe that our experience, knowledge and human resources will enable us to drive the business in a successful and profitable manner. We are dedicated to the development of expertise and know-how of our employees and continue to invest in them through training and skills.
2. Existing Supplier Relationship:
Our existing supplier relationship protects the business with terms of supply and pricing of the products, the quality of the products offered etc. We, being a small and medium size organization, rely on personal relationships with our suppliers. Our company enjoys existing relationship with our suppliers. Further we also leverage the past experience of our management in maintaining effective supplier relationship.
3. Quality & ISO Certifications:
Our ISO certificates shows our good quality of services and good strength.
4. Wide range of Products: We provide a broad range of products to our customers which increases the scope of our customers and our ability to cater to a diversified clientele base. We make our best efforts to deliver effective Engineering Solutions related to power sector and ontime execution to our clientele.
Our Strategy:
1. Quality Assurance: We will continue to maintain quality of our existing services to cater to various customers in the market. We endeavor to maintain the quality of our service, and follow strict procedures to ensure timely delivery and competitive prices. The company intends to strengthen its product development effort by leveraging skills of its employees which will help to increase the sales of the Company and retain customers.
2. Increase geographical presence:
Going forward we plan to establish our presence in the more geographical potential regions. Our emphasis is on expanding the scale of our operations as well as growing our supply chain network, which we believe will provide attractive opportunities to grow our client base and revenues.
3. Leverage and enhance our brand name:
We believe that our brand commands a recall amongst the consumers in the areas where we operate due to its image and goodwill established over the years. We intend to leverage the brand equity that we enjoy. Also, we plan to leverage our existing brands, which have good recall with customers to introduce a wider range of services.
4. Improving operational efficiencies:
Our Company intends to improve operating efficiencies to achieve cost reductions to have a competitive edge over the peers. We will be addressing the increase in operational output through continuous process improvements, quality check and technology development. Our employees are regularly motivated to increase efficiency with error free exercise. We believe that this can be done through continuous process improvements. Further we believe that this can be done through domestic presence and economies of scale. We believe in strong in-house management to control the entire process. It controls costs by eliminating unnecessary intermediaries for procuring materials in cost efficient manner by optimizing logistics and maximizing labour efficiency.
5. Leveraging our Market skills and Relationships:
This is a continuous process in our organization and the skills that we impart in our people give importance to customers. We aim to do this by leveraging our marketing skills and relationships and further enhancing customer satisfaction. We plan to increase our customers by meeting contracts in hand on time, maintaining our customer relationship and renewing our relationship with existing buyers.
6. Increasing the customer reach:
We plan to segmentize the market into business as well as influencers levels thereby reach to the need of each customer profile.
7. Innovative & Marketing Method:
Over and above the regular human reach we will be adopting innovative method through social media, groups, public meetings, meetings, seminars to address our potential customer base.
Opportunities
> Potential to provide other value assed services
> Expanding new geographical area
> Opportunities in Indian Market
> Government thrust for infrastructure development will boost in rise in demand
> Threats
> Increased Competition from Big Players
> Change in Government Policies
> Rising labour wages
> Margins may be constrained in the future
> There are no entry barriers in our industry which puts us to the threat of competition from new entrants.
Human Resources and Industrial Relations:
Human resource is an asset to any industry. We believe that our employees are the key to the success of our business and hence we have a structured organization plan to take care of the growth and motivation aspects of our team. Our manpower is a prudent mix of experienced and young personnel which gives us the dual advantage of stability and growth. Our work processes and skilled resources together with our strong management team have enabled us to successfully implement our growth plan.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
Invest wise with Expert advice