### **Overview** Sadbhav Engineering Limited (SEL), incorporated in 1988, is a leading Indian infrastructure development company specializing in Engineering, Procurement, and Construction (EPC) projects across the **transport, irrigation, mining, and urban infrastructure** sectors. The company is publicly listed on both the **National Stock Exchange (NSE)** and the **Bombay Stock Exchange (BSE)** and operates exclusively within India. SEL has established itself as a key player in the national infrastructure landscape, aligning its growth strategy with the Government of India’s vision for accelerated infrastructure development under initiatives such as **Bharatmala, Jal Jeevan Mission, and Atmanirbhar Bharat**. --- ### **Core Business Segments** - **Roads & Highways**: Design, construction, operation, and maintenance of national and state highways. - **Irrigation & Water Resources**: Canal networks, dams, and irrigation systems supporting agricultural advancement. - **Mining Infrastructure**: Civil infrastructure development for coal and mineral extraction. - **Urban Transit**: Participation in metro rail and urban mobility projects. --- ### **Corporate Structure & Subsidiaries** SEL employs a **project-specific corporate structure**, commonly used in India’s Public-Private Partnership (PPP) and Hybrid Annuity Model (HAM) frameworks. This includes: #### **Key Subsidiaries (100% Owned)** - Sadbhav Infrastructure Project Limited (SIPL) – Listed on BSE/NSE; executes projects directly or through SPVs. - Sadbhav Gadag Highway Private Limited (SGHPL) - Sadbhav Kim Expressway Private Limited (SKEPL) - Sadbhav Infra Solutions Private Limited (SISPL) - Sadbhav Hybrid Annuity Project Limited (SHAPL) #### **Step-Down Subsidiaries (Project-Specific SPVs)** These entities are created to manage individual infrastructure concessions: - Ahmedabad Ring Road Infrastructure Ltd - Maharashtra Border Check Post Network Ltd - Rohtak Panipat Tollway Private Ltd (RPTPL) - Rohtak Hissar Tollway Private Ltd (RHTPL) - Sadbhav Rudrapur Highway Limited - Sadbhav Jodhpur Ring Road Private Limited - Sadbhav Bhavnagar Highway Limited - Sadbhav Una Highway Limited This **decentralized, SPV-based model** enables focused execution, risk segregation, and compliance with concession agreements, particularly under **BOT (Build-Operate-Transfer), BOLT (Build-Own-Lease-Transfer), and BOOT (Build-Own-Operate-Transfer)** models. --- ### **Project Portfolio & Execution Capability** As of 2025, SEL remains actively engaged in **44+ infrastructure projects** across **15 Indian states**, including Gujarat, Maharashtra, Haryana, Karnataka, Rajasthan, Uttarakhand, and Madhya Pradesh. #### **Key Projects & Milestones** - **Eastern Peripheral Expressway (EPE)**: India’s first smart expressway – successfully executed. - **Project Completion of Development (PCOD)** achieved for multiple HAM projects: - Rudrapur Highway - Bhavnagar Highway - Udaipur Highway - **Ongoing HAM Projects**: - Ahmedabad-Dholera Greenfield Alignment (Packages I & II) - Surat Metro - Kim-Ankleshwar Highway - Waranaga-Mahagaon Road - Jodhpur & Lucknow Ring Roads - BRT Tiger Reserve Road - **Toll Road Concessions**: - Rohtak–Hissar Tollway (98.81 km under DBFOT model on NH-10) - Rohtak–Panipat Tollway SEL has constructed over **9,621 lane kilometers** of roads and highways to date, positioning it among India's top-tier EPC contractors in the road sector. --- ### **Strategic Collaborations & Joint Ventures** The company strategically leverages joint ventures to share risk and expand capacity: - **Sadbhav-SPSCPL JV (74% stake)** – Ahmedabad-based - **SEL-PIPL JV (51% stake)** - **PBA SADBHAV JV (50% stake)** - **Delhi Metro Rail Corporation (DMRC) Projects CC43 & CC47 (40% equity stakes each)** – 98% completion rate achieved on Jalipa/Kapurdi metro works These JVs underscore SEL’s collaborative approach in executing complex urban and transit infrastructure. --- ### **Clients & Partnerships** SEL has partnered with premier public and private sector organizations: - **National Highways Authority of India (NHAI)** - **Delhi Metro Rail Corporation (DMRC)** - **Coal India Limited** - **Sardar Sarovar Narmada Nigam Ltd** - **Larsen & Toubro (L&T)** - **Hindustan Construction Company (HCC)** - **State Governments** (Gujarat, Madhya Pradesh, Rajasthan, etc.) Its robust client base reflects strong credibility in government-led infrastructure programs. --- ### **Revenue Model** SEL’s revenue streams are diversified across: - **Toll-based BOT models** - **Annuity-based Hybrid Annuity Model (HAM)** - **EPC contracts** (civil, electrical, mechanical works) - **Operations & Maintenance (O&M)** of developed assets The company continues to shift toward **annuity-supported models**, which offer more predictable cash flows compared to purely toll-dependent projects. --- ### **Financial Highlights & Capital Expenditure** - As of **March 31, 2023**, SEL reported **₹801.52 crores** in Capital Work in Progress (CWIP), with **₹762.72 crores** expected to be completed **beyond three years**, highlighting: - Long gestation periods for infrastructure projects - Sustained capital commitment - **Order Book (as of March 2020): ₹8,372 crores**, with strong pipeline continuity into 2025 --- ### **Financial Stress in Step-Down Subsidiaries** As of **2022**, significant financial stress was reported in two toll road SPVs: - **Rohtak Panipat Tollway Pvt Ltd (RPTPL)**: - Outstanding receivables: ₹1,984 crores (May 2022), rising to ₹2,030.1 crores (Aug 2022) - Net worth **fully eroded** - **Rohtak Hissar Tollway Pvt Ltd (RHTPL)**: - Exposure: ₹277.29 crores (Aug 2022) - Net worth also **fully eroded** These developments reflect challenges in **toll revenue realization** and cash flow stress in certain BOT projects, emphasizing the risk inherent in toll-based models without adequate traffic guarantees.