### **Overview** Vascon Engineers Limited, established in 1986 and headquartered in Pune, is a leading integrated construction engineering and real estate development company in India. With over **39 years of experience** and operations across **30+ cities**, the company has delivered **over 225 projects** encompassing more than **45 million square feet** of infrastructure across residential, commercial, institutional, industrial, healthcare, and public sectors. Recognized as a 'Fortune Next 500' firm, Vascon combines robust EPC (Engineering, Procurement & Construction) capabilities with a strategic, asset-light real estate model to drive sustainable growth. --- ### **Business Segments** #### **1. EPC (Engineering, Procurement & Construction)** - **Order Book & Revenue Visibility**: As of **September 30, 2025**, Vascon’s EPC order book stands at **₹2,800 crore**, equivalent to **2.8x FY25 EPC revenue**, ensuring strong revenue visibility for the next 2–3 years. This includes **₹2,411 crore** from external contracts and **₹389 crore** from internal real estate projects. - **Performance & Growth Targets**: - **H1 FY26 EPC Revenue**: ₹431 crore (10% YoY growth). - **Q2 FY26 Revenue**: ₹227 crore (+14% YoY), despite weather-related disruptions. - **Growth Target**: 20% annual growth in EPC revenue and profit, supported by improved execution efficiency and a broad project pipeline. - **Project Pipeline & Capabilities**: - Has executed **over 225 EPC projects**, cumulatively exceeding 45 million sq ft. - Annual execution capacity: **~8 million sq ft**, currently operating at **~90% utilization** (~3.7 million sq ft under execution annually). - Team strength: **Over 500 professionals**, with full in-house capabilities in **architectural design, structural engineering, and turnkey execution**. - **Key Sectors**: - Government: Healthcare, education, industrial, institutional, and infrastructure (airports, metros). - Private: Hospitals, IT parks, corporate offices, GCCs, and residential complexes. - Notable Projects: Suzlon One Earth (Pune), IGI Airport multilevel car park (Delhi), Symbiosis College (Pune), Ruby Mills (Mumbai). - **Recent Wins (FY26)**: - **Adani MoU**: A five-year strategic **Memorandum of Understanding** covering ~13 million sq ft projects in Mumbai; expected to contribute **~30% of annual turnover**. - ₹225 crore EPC order from **Royal Rides Private Ltd** (April 2025, 3-year execution). - ₹161 crore order from **MSEB** for Saudamini Building redevelopment at Haji Ali, Mumbai. - **Execution Model & Efficiency**: - Focuses on **design-to-execution (design-and-build)** contracts to add value from early stages. - **In-house design team** improves constructability, reduces costs, and enhances margins. - Targeting larger projects (₹600–800 crore) to improve profitability and reduce competitive pressure. - **Funding & Liquidity Support**: - Unutilized working capital: **₹271 crore** out of **₹645 crore** sanctioned limit, with **₹150 crore additional under appraisal**. - This liquidity can support **up to ₹3,000 crore in future EPC orders**, enabling aggressive growth. --- #### **2. Real Estate Development** - **Brand & Market Presence**: - Strong brand equity in **Pune** via landmark projects: **Windermere, Forest County, Willows, and Citron**. - Strategic entry into **Mumbai** with premium redevelopment projects like **Vascon Orchids** (Santacruz), marking a shift toward high-value urban redevelopment. - **Development Model**: - **Asset-light approach** via **Joint Development Agreements (JDAs)** and **Joint Ventures (JVs)** with landowners, minimizing upfront capital and enhancing return on equity. - Operates with **flat organizational hierarchy**, ensuring agility, low operating costs, and timely decision-making. - End-to-end **in-house design and construction capabilities**, ensuring quality control and faster execution. - **Sales & Launches (H1 FY26)**: - Launched: **Tulip Phase 3 (Coimbatore)**, **Tower of Ascend (Kharadi, Pune)**, and **Orchids (Santacruz, Mumbai)**. - New Sales Bookings: **64,541 sq ft (INR 74 crore)**. - Collections: **INR 88 crore**. - Ongoing Projects: Four major developments— **Tulips P3 (Coimbatore), GoodLife (Talegaon), Tower of Ascend (Pune), Orchids (Mumbai)** — totaling **0.78 million sq ft**, of which **0.65 million sq ft** is attributable to Vascon. - **Sales Progress (Key Projects)**: | **Project** | **Location** | **Ownership** | **Sold (%)** | |---|---|---|---| | Windermere Residential | Pune | JDA (45%) | 95% | | Tulip Phase III | Coimbatore | JV (70%) | 74% | | GoodLife – Value Home | Talegaon | Own (100%) | 83% | | Tower of Ascend | Kharadi, Pune | JV (61% sold as of 2024; ~85% by Aug 2025) | | Vascon Orchids | Santacruz, Mumbai | Own | 10–15% (Launched April 2025) | - **Total Sold So Far**: 0.46 million sq ft across projects → **INR 291 crore sales, INR 221 crore collections**, with **INR 116 crore revenue recognized**. - **Near-Term Pipeline (2025–26)**: - **0.82 million sq ft** saleable area in pipeline with **INR 1,110 crore attributable sales value**. - Key Upcoming Projects: - **Powai, Mumbai** (Residential, JV) - **Kharadi, Pune** (4-acre development) - **Tower of Future** (Commercial, Baner-Pashan, Pune – JV) - **Prakash Housing Society** (Redevelopment, Santacruz) - Expected Total Sales Value (Upcoming): **>INR 1,100 crore**. - **Future Pipeline & Strategic Expansion**: - Projects in **Kalyani Nagar, Pune**: Residential (0.5M sq ft, ₹550 crore) and Commercial (0.3M sq ft, ₹330 crore) under JDAs. - Potential for **land monetization** in Thane (70-acre parcel; 30–40 acres possibly acquired for expressway project). - Engaged in early-stage discussions with **Adani** for **3–4 large-scale real estate projects** in **Mumbai, NCR, and other cities**, with design-stage involvement (subject to NDA). --- ### **Strategic Collaborations & Key Clients** - **Adani Consortium (Strategic MoU)**: - Five-year engagement covering **~13 million sq ft** of projects in **Mumbai** under an **early-stage design-to-execution model**. - Vascon positioned as a **preferred partner**, moving away from traditional tenders. - Could contribute **~30% of annual order book** upon finalization. - Expected to boost **infrastructure and mixed-use development** pipeline. - **Client Diversification**: - Strong presence in **government projects** (74–80% of EPC book), known for stable cash flows. - Expanding in **private sector**: MNCs, hospitals (e.g., Capgemini IT Park, PMC Hospital Moshi, Supaul Medical College), educational institutions, and GCCs. --- ### **Financial Strength & Operational Discipline** - **Balance Sheet & Liquidity**: - **Net Debt Reduction**: Reduced from ₹79 crore over 24 months (as of FY23); improved credit rating from **CRISIL BBB+ to A-** (May 2025). - **Monetization of Non-Core Assets**: Successfully sold land in **Kharadi, Pune (₹52.5 crore)**, and exploring divestment of Goa hotels, Kaledonia property, Aurangabad land, and GMP stake. - **Funding Strategy for Growth**: - Planning **QIP (Qualified Institutional Placement)** to raise **₹100 crore** for Mumbai real estate launches (total capital need: ₹170 crore; ₹70 crore already invested). - Using **bank guarantees** and **working capital limits** to fund EPC growth without heavy equity dilution. - **GMP Technical Solutions (Specialized Vertical)**: - Backward integration (acquired 2010) – one of India’s largest **clean room partition** manufacturers. - FY24 Revenue: ₹289 crore, EBITDA margin: **28%**, after achieving profitability post-stabilization. - Key clients: **Tata Group**. --- ### **Growth Strategy (FY25–26 & Beyond)** 1. **Dual-Engine Growth**: - Expand **EPC** in high-growth sectors (healthcare, smart cities, institutional, airports). - Accelerate **Real Estate** in **premium urban markets** (Mumbai, Pune) via JDAs, JVs, and redevelopments. 2. **Execution Excellence**: - Leverage **in-house design**, **digital project management**, and **automation** to enhance efficiency and margins. - Maintain **90%+ EPC capacity utilization** and scale delivery capacity. 3. **Market Expansion**: - Strengthen foothold in **Mumbai** via high-street redevelopments. - Partner with **top-tier developers** in Mumbai, Pune, and Coimbatore for consistent project launches. 4. **Sustainability & Brand Differentiation**: - Focus on **eco-conscious designs**, **premium amenities**, and **customer-first approach**. - Projects like **Orchids** and **Forest Edge (Health Tech Homes)** reflect innovation in urban living. ---