ARSS Infrastructure Projects Ltd - Stock Valuation and Financial Performance

The company was originally incorporated as ARSS Stones Private Limited on May 17, 2000 under the Companies Act. The name of the Company was changed to ARSS Infrastructure Projects Private Limited with effect from May 20, 2005. The Company was converted to a public limited company pursuant to a special resolution of the shareholders passed at the Extraordinary General Meeting held on November 15, 2005 and the Registrar of Companies; Orissa issued a fresh certificate of incorporation on April 3, 2006 in the name of ARSS Infrastructure Projects Limited. The Promoters of the company are Rajesh Agarwal, Subash Agarwal, Sunil Agarwal, Anil Agarwal and Mohanlal Agarwal.

It started as a construction company in the field of railway infrastructure development. The company has developed an expertise in railway construction projects, which include earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. It executes orders for clients like Rail Vikas Nigam Limited, RITES, IRCON International Limited and railway authorities spread across various zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. Over the years the company has acquired the strategic equipment, intellectual know-how and technical manpower needed for executing railway works – for eg. sophisticated design, drawing, and software.

The Company is engaged in construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. It started as a construction company in the field of railway infrastructure development, mainly in the state of Orissa and subsequently expanded the business activities in the zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. The company has developed expertise in railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. Over the years the company has diversified the field of activities into other construction segments such as development and construction of roads, highways, bridges, irrigation projects, EPC activities for railways. It successfully completed over 200 km rail line and more than 300 km of roads and highways.

The Company has a centralized tender department headed by General Manager- Business Development, which is responsible for applying for all pre-qualifications and tenders. The tender department evaluates the credentials of the Company vis-à-vis the stipulated eligibility criteria. The company endeavors to qualify on its own for projects in which the company proposes to bid. In the event that the company does not qualify for a project in which it is interested due to eligibility requirements relating to the size of the project or other reasons, the company may seek to form project-specific joint ventures with other relevant experienced and qualified contractors, using the combined credentials of the cooperating companies to strengthen the chances of pre-qualifying and winning the bid for the project.

The company is having presence in Eastern India, particularly in the state of Orissa. However, in recent years the company has pursued opportunities in other parts of India including states of Chhattisgarh, Rajasthan, Jharkhand, Haryana, Kerala, Andhra Pradesh, Assam, Maharashtra, Tamil Nadu, Gujarat, Uttar Pradesh and Madhya Pradesh.

The company has entered into following joint venture agreements: -

• HCIL - ARSSSPL - TRIVENI (JV)
• HCIL - KALINDEE - ARSSPL (JV)
• HCIL - ADHIKARIYA - ARSS (JV)
• NIRAJ - ARSS (JV)
• ARSS - HCIL CONSORTIUM
• ATLANTA - ARSS (JV)
• PATEL - ARSS (JV)
• ARSS - TRIVENI (JV)
• SOM DATT BUILDERS -ARSS (JV)
• ARSS-MVPL (JV)
• BACKBONE-ARSS (JV)
• ARSS-ANPR (JV)

Clientele:

The company’s clients include Ministry of Railways, State Government of Orissa, Rail Vikas Nigam Limited, RITES Limited, IRCON International Limited, National Thermal Power Corporation, Hindustan Steel Corporation Limited, PWD - Orissa, IOCL, National Highway Authority of India, Vendata, Nalco, Jindal Steel & Power Limited, etc.

Milestones:

• 2000 - The Company ARSS Stones Private Limited was incorporated with its identity as ARSS Stones Private Limited. -The Company established a crusher unit at Nityananpur, in the district of Dhenkanal, Orissa.
• 2002 -The Company established two more crusher plants, one at Rambha in the district of Ganjam, Orissa (which was subsequently shifted to Champajhar) and other at Champajhar situated in the district of Khurda, Orissa. -The Company diversified into the field of earthwork, rock excavation, construction of bridges & roadways and boring piles of large diameter.
• 2003 - The Company was awarded projects of constructing 5 (five) major bridges at Bhubaneswar.
• 2004 - The Company entered into the first joint venture with Triveni Engicons Private Limited (previously carrying on the business as a partnership firm in the name and style of M/s. Triveni Enterprises) so as to undertake and execute railway project. -The name of the Company was changed to ARSS Infrastructure Projects Private Limited.
• 2005- The Company entered into joint ventures with other domestic and international partners viz, Harish Chandra (India) Limited (“HCIL”), Kalindee Rail Nirman (Engineers) Limited (“Kalindee”), PT Adhikaria (Persero) etc for executing road and railway projects.-The Company was converted to a public limited company-The Company received ISO 9001:2000 rating from Moody International in relation to construction of civil work like Road projects, Major Bridges, Minor Bridges. -Earthwork, railway track linking work.
• 2006- The Company established another crusher unit, at Chhatrama in the district of Khurda. 2006
• 2007-The Company entered into a joint venture agreement with M/s. Niraj Cement Structural Limited and the said joint venture was awarded the project for reconstruction rehabilitation of Cuttack- Paradeep road (SH- 12) from 0 to 43 kms and 43 to 82 kms.-The Company established another crusher unit at Bhanjnagar in the district of Ganjam.-The Company has expanded the business into other parts of India viz; Rajasthan, Jharkhand, Haryana and Tamil Nadu for undertaking project work of railways and roadways.
• 2008- The Company entered into a Joint venture agreement dated January 28, 2008 with Somdatta Builders for the construction for widening and strengthening of existing carriage way to 2-lane for Chandbali- Bhadrak- Anandpur road (km. 0/0 to 45/0 of SH-9 and km. 0/0 to 50/0 of SH-53) work under world bank assisted project to government of Orissa-Received Trade mark registration from the Registrar of Trade Mark.

Awards/Achievements:

• It has been awarded ISO 9001:2000 Quality Management System Standard Certificate by Moody International Certification Limited