Vishwa Samudra Group Targets Revenue Of $1.8 Billion By 2027 The company is focusing on expanding their operations overseas, with particular interest in entering the African and South American continents.
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As India continues on its path towards becoming a developed nation by 2047, the need for robust infrastructure becomes increasingly apparent. The government has allocated 3.3 per cent of GDP to the infrastructure sector in the fiscal year 2024, with particular focus on the transport and logistics segments, according to Invest India.
Leveraging the opportunity in the sector, Vishwa Samudra Group, is poised to ride on the wave of huge infrastructure development in India. With a portfolio spanning across road construction, urban mobility solutions, port development, electrical projects, tunnels, bridges, dams and irrigation projects, the company's offering lies in dredging services, making it a rare infrastructure player in the field.
Anil Kumar Yendluri, Managing Director of Vishwa Samudra Engineering, in an exclusive interview opened up about the company's various projects, prospects and interests.
Big Money Projects
The group draws upon its extensive expertise in port construction and operations from its experience in Krishnapatnam Port, a green field project spanning over 6,000 acres. In 2021, Adani Ports and Special Economic Zone Ltd. acquired 25 per cent stake from Vishwa Samudra Group for INR 2,800 crore.
Krishnapatnam Port (Source: Vishwa Samudra Group)
"Our experience with the Krishnapatnam Port includes the complete construction of a greenfield project spanning over 6000 acres. This project involved the construction of 42 berths, container terminals and the entire civil infrastructure, including buildings and all necessary supporting facilities. We also successfully operated the port for several years, outperforming the most successful port on the coast, Chennai Port. This was India's second largest Private Port and had a container capacity of six million TEUs," said Anil Kumar.
Currently, the group has four ongoing HAM (hybrid annuity model) projects: One highway in Jammu, two highways in Kerala and the Varanasi Urban Ropeway project. The company also has an EPC (engineering, procurement and construction) highway project in Kerala, along with the Mulapeta Port and the fishing harbours.
The experience and expertise from Krishnapatnam Port are now being applied to the development and operations of Mulapeta Port. The Port also set two Limca Book of National Records - for highest cargo discharge in 24 hours and for operational efficiency.
Speaking about the Varanasi Ropeway project, the company stated that the urban ropeway project, located in the constituency of Prime Minister, Narendra Modi, epitomizes modern transport systems, as it is the world's second urban ropeway and India's first. The company claims that the project will reduce travel time within the city from 45 minutes to approximately 15 to 17 minutes. The ropeway spans 3.85 kilometers and includes three stations, with a project value of INR 803 crore. The company is also responsible for operating the ropeway once construction is complete.
Gondola pods (Source: Vishwa Samudra Group)
"A key statistic is that the ropeway will transport over 96,000 passengers per day, equating to about 3,000 passengers per hour per direction," added Anil.
The company expresses that the project is crucial to their revenue, contributing with its 100 million dollar value. Notably, this is a HAM project, with a contractor's contribution of 40 per cent, lower than the usual 60 per cent in typical HAM models.
Revenue generation and distribution
Speaking on revenue distribution, the company stated that it hinges on the type of project they do -EPC, HAM or BOT (build-operate-transfer). Roads currently lead as the highest revenue-generating sector, however, Anil also revealed that their marine structures, including fishing harbors and the Mulapeta Port, closely follow suit.
Mulapeta Port (Source: Vishwa Samudra Group)
In terms of future prospects, the company is in high spirits about their projected revenue target of close to 1.6 to 1.8 billion US dollars by 2026-27. It is confident that infrastructure companies across the country will have abundant opportunities in various sectors going forward. "However, financial success also stems from other factors such as reducing the attrition rate, increasing the employee happiness index, and enhancing individual and team performance. These elements collectively ensure that each project performs well. These performance indicators are crucial in ensuring the overall financial success of the company," added Anil Kumar.
Future Prospects
Speaking on potential future mergers and acquisitions, Anil cleared the air by stating, "Currently, we are not actively pursuing mergers, acquisitions, or partnerships, except for specific projects that require such collaborations. For instance, our partnership with Bartholet of Switzerland on the Varanasi ropeway project demonstrates the benefits of strategic partnerships. Likewise, one of our most successful partnerships so far has been with the German Additive maker StabilRoad, since 2016."
Regarding investment strategies, the company is focusing on expanding their operations overseas, with particular interest in entering the African and South American continents as the company sees these regions representing new opportunities for growth and development for itself.
