**Modern Engineering and Projects Limited** (formerly **Modern Converters Limited**) is an emerging Indian integrated infrastructure firm specializing in **Engineering, Procurement, and Construction (EPC)**. The company has undergone a significant strategic pivot, transitioning from legacy operations into a diversified player across transportation, civil construction, and specialized maritime engineering. --- ### **Strategic Pivot and Diversified Infrastructure Portfolio** MEPL has aggressively expanded its operational scope to capitalize on the **National Infrastructure Pipeline (NIP)**. In **December 2024**, the company formally amended its **Memorandum of Association (MOA)** to incorporate high-growth business verticals: * **Transportation & Railways:** Development of **roads, flyovers, toll roads, expressways, and airport runways**. Railway capabilities include **Broad Gauge networks, underground Metro Railways, Light Rail Transit Systems (LRTS)**, and **Mass Rapid Transit Systems (MRTS)**. * **Maritime & Specialized Engineering:** A new focus on **maritime infrastructure**, including the construction of **slipways, jetties, and repair bays**. * **Water & Sanitation:** Execution of **underground sewage networks, pumping stations**, and **Sewage Treatment Plants (STP)**. * **Energy & Utilities:** Construction of **thermal, hydel, solar, and wind power plants**, alongside **transmission lines** and **electrical substations**. * **Real Estate & Toll Operations:** Entry into **real estate development** and **toll/user fee collection** services for government and private bodies. --- ### **Project Execution Framework and Joint Operations** The company utilizes a flexible contracting model, including **EPC, Build-Own-Transfer (BOT), Build-Own-Operate-Transfer (BOOT)**, and **Annuity schemes**. Revenue is recognized via the **input method (percentage-of-completion)**. A core component of MEPL’s strategy is the use of **Joint Ventures (JV)**, structured as **Associations of Persons (AOP)**. These are treated as **joint operations**, allowing the company to recognize its direct interest in assets and liabilities. **Key Active Joint Ventures:** | Joint Venture Name | Partner | Project Scope | Ownership Interest (Mar 2025) | | :--- | :--- | :--- | :--- | | **MEPIDL-MCL-JV** | MEP Infrastructure Developers Ltd | **8-laning** of **NH 3** (New NH 848) - **23.8 km** | **100%** (Increased from 74%)* | | **Aquatech-MEPL JV** | Aquatech Solutions Pvt Ltd | **13 MLD** Khopoli Underground Sewerage Scheme | **50%** | | **Aquatech-MEPL Nashik JV** | Aquatech Solutions Pvt Ltd | **11.5 MLD STP** & **29.5 MLD TTP** (Nashik) | **50%** | *\*Note: MEPL increased its interest to 100% as it performs all execution and operations while the partner contributes no resources.* --- ### **Order Book and Recent Contract Wins** MEPL has secured high-value contracts from prestigious industrial clients, validating its technical expertise: * **Square Port Shipyard Pvt Ltd (Dec 2024):** Construction of Slipway, Transfer Bay, Repair Bay, and Jetty Extension at Dhabol, valued at **₹157.46 Crores**. * **Tata Steel Limited (Oct 2024):** Boundary Wall work at Meramandal, Odisha, valued at **₹61.02 Crores**. * **Tata Steel Limited (Apr 2026):** Construction of Priority Bituminous Trunk Road for the **Neelachal Ispat Nigam Limited** expansion. --- ### **Financial Performance and Capital Structure** MEPL has achieved a successful financial turnaround, moving from a net loss in FY22 to consistent profitability by FY24. **Financial Summary (FY 2022–2024):** | Metric (INR Crore) | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **95.61** | **93.22** | **67.80** | | **Other Income** | **2.30** | **0.62** | **1.63** | | **Profit After Tax (PAT)** | **7.29** | **3.65** | **(2.65)** | **Capital Raising and Liquidity:** * **Rights Issue (Sept 2024):** Allotted **1,23,60,000 equity shares** at **₹40 per share** (including **₹30 premium**), raising **₹49.44 Crore** to strengthen the capital base. * **Borrowing & Investment Limits:** Shareholders approved a borrowing limit of **₹500 Crores** and an investment limit of **₹500 Crores** for loans and guarantees to subsidiaries and JVs. * **Asset Acquisition:** In **January 2025**, secured an **₹18 Crore** facility from **ICICI Bank** to acquire a **7,703.80 sq. ft.** corporate office in Andheri, Mumbai. --- ### **Governance and Leadership Transition** The company has overhauled its leadership to align with its infrastructure-heavy strategy: * **Chairman:** **Mr. Radheshyam Laxmanrao Mopalwar** (Appointed **Nov 2024**). * **Managing Director:** **Mr. Fattehsingh Krishnrao Patil** (Appointed **Sept 2025** for a 3-year term; remuneration up to **₹90 Lakhs** p.a.). * **Global Expansion:** In **February 2025**, the Board approved a **Wholly Owned Subsidiary in Dubai, UAE**, to facilitate international project bidding. --- ### **Risk Profile and Mitigation** **1. Governance and Compliance Risks:** The company has faced challenges regarding **Section 149(4)** of the Companies Act, 2013, specifically a shortage of **Independent Directors** on the Board and within the **Audit** and **Nomination and Remuneration Committees**. Additionally, there has been recent turnover in Key Managerial Personnel (KMP), including the **CFO** and **Company Secretary**. **2. Contingent Liabilities and Tax Disputes:** MEPL is currently contesting income tax demands totaling **₹55.71 Lakhs** for Assessment Years 2015-16 and 2016-17. These relate to disallowances of losses and alleged unexplained expenditures; the company views these demands as "not tenable." **3. Operational and Macro Risks:** * **Supply Chain:** Geopolitical conflicts (Russia-Ukraine/Israel-Gaza) have impacted raw material costs. * **Execution:** Risks include **land acquisition delays**, **rising construction costs**, and **skilled labor shortages**. * **Financial:** While **Currency** and **Interest Rate** risks are currently **zero** (due to INR-only transactions and fixed-rate loans), the company remains sensitive to liquidity crunches in the broader construction sector. --- ### **Sectoral Outlook and Growth Drivers** MEPL’s growth trajectory is supported by aggressive government spending: * **National Highways:** Target of a **2 lakh-km** network by **2025** under **Bharatmala Pariyojana**. * **Aviation:** Expansion to **220 airports** via the **UDAN** scheme. * **Monetization:** The **National Monetization Pipeline (NMP)** targets **₹6.0 lakh crore** in asset monetization through FY25. * **Market Opportunity:** The Indian infrastructure sector is projected to reach **USD 280.6 billion by 2030**, growing at a **CAGR of 8.0%**.