Art Nirman Ltd is an Ahmedabad-based builder that constructs homes, shops and clubs - but it does not own most of what it builds. Incorporated in 2011 and listed on the NSE Emerge platform, the company evolved from a private developer of its own projects into a contractor that executes works for housing societies, related parties and government bodies, winning its first two Public-Private Partnership (PPP) redevelopment tenders from the Gujarat Housing Board between FY23 and FY24. The recurring approach is a relationship-based model: it builds on land or for clients where its management already has influence, then uses that experience to bid for larger government-tendered work. # Business segments A single construction engine that earns in three ways - selling units it builds on its own or under PPP redevelopment, invoicing for works contracts on other people's land, and constructing club facilities for a related party - all within one real estate development segment. ## 1. Real estate development and works contracting: building on its own, for the government, and for related parties **The company is a contractor first and a developer second - most of its active projects are works contracts for others or PPP redevelopments where it earns by selling the free-sale units, not by owning the land.** - **Sells what it builds on PPP land** - in government-tendered redevelopment projects, the company constructs homes for the original residents and earns its revenue by selling the Free Sale Component (FSC), the extra units it is allowed to market to outside buyers. On the 24 HIG project in Naranpura, for instance, the FSC is 36 residential and 18 commercial units, and seven had already been sold as of FY25. - **Works contracts are the backbone** - for residential projects like Omkar Enclave (160 flats, 95% complete) and Shree Vishnudhara Essence (160 flats, 75% complete), the company does not own the land; it constructs for a fee, raising periodic invoices under a Works Contract Agreement. This means its capital is tied up in construction costs, not land banks. - **Redevelopment of old societies** - the company steps in to rebuild ageing housing co-operatives, such as the New Ashiyana Apartment project in New Vadaj, where it is constructing 86 commercial units and 6 flats for existing members in exchange for the right to sell the remaining units. The model turns relationships with societies into a pipeline of work. - **Club Babylon opened a new door** - a works contract to build a luxury club for a related party, Art Club Private Limited, took the company beyond houses and shops into club construction, delivering 90 rooms by FY25. The company does not own the club, but it expects the project to bring industry recognition and future opportunities. - **Pre-cast technology and raw material exposure** - the company uses pre-cast construction methods, and its key inputs are steel and cement, which means its costs swing with commodity prices and labour availability in a sector that is heavily dependent on manual workers. # Group structure and partners **Art Nirman has no subsidiaries or joint ventures that it controls, but it operates inside a close network of related-party entities and has one minority joint venture for a road-widening tender.** - **Standalone by design** - the company has no subsidiaries, associates or joint ventures that require consolidation, so it reports only standalone financials. - **A web of related parties** - key management personnel have significant influence over entities including Art Club Pvt Ltd, Vishnudhara Developers LLP, Vishnudhara Paradise LLP and Ohm Enterprise, and the company has board approval to enter into work contracts, development agreements and loan transactions with these parties up to INR 100 crores in any financial year. - **Funding from the promoter** - the Managing Director, Ashokkumar R. Thakker, routinely lends unsecured money to the company (Rs. 20.2 crores taken in FY25, with Rs. 8.7 crores repaid) and also receives office rent from it. The company, in turn, has lent Rs. 5 crores to a Limited Liability Partnership. - **A minority stake in a road JV** - in January 2023, the company signed a joint venture agreement with Maa Santoshi Enterprises and Goldroof Reality LLP to form Goodluck Infra Build Private Ltd, where it holds up to 20%, to bid for a road-widening tender in Arvalli District. This is a small, exploratory bet outside its core housing market.