Dear Shareholders,
Transformation is a journey in our pursuit to attain new milestones of accomplishments,
it is not the destination of success. The more we accomplish with time, the more we
transform ourselves and evolve. The more we embrace countless possibilities to create a
better future, the more we become resolute in our determination to conquer our
sustainability goals.
At Sadbhav Engineering Limited, this continued pursuit to transform tomorrow is the
metaphorical manifestation of our corporate philosophy "Today for Tomorrow".
Challenges come and go, but the tough gets going. The bigger the projects we undertake,
the bigger the challenges we face. The bigger the challenges we face, the stronger we
emerge conquering them.
Your Company is a key player in the infrastructure sector in the country with
operations across 12 states. Your Company has always seen itself as a partner in the
progressive vision envisaged by the Government of India. Sadbhav Engineering Ltd. supports
the "Make in India" vision and strives to develop world-class infrastructure to
boost the country's economic prospects. All the projects that your Company undertakes are
being prudently chosen and executed by identifying and mitigating the possible risk
factors.
Infrastructure is a major sector that propels the overall development of the Indian
economy. The infrastructure sector in India is poised to grow at a CAGR of 8.2% by 2027.
The launch of a quadrilateral economic forum by India, the US, Israel & the UAE in
November 2021 has further added to the influx of infrastructure growth perspectives.
Alternatively, the introduction to the "Infrastructure for Resilient Island
States" program in November 2021 has shown a significant opportunity to improve the
lives of vulnerable nations across the globe by enabling Indian infrastructure growth to
flourish in tri-folds. The roadmap to India's infrastructure is exciting and the new
decade seems to be promising. More and more green and clean initiatives are happening
across the country, and the Indian government has given much-needed impetus to the
infrastructure sector. Every rupee spent on the infrastructure sector not only has
multiplier effect on GDP but also helps to generate more employment, supports the growth
of allied industries, and achieves the social goals of providing efficient access to
essential services and amenities to all citizens.
India is expected to be one of the largest economies in the world by 2047 with a GDP of
about $35-40 trillion as against estimated $3.5 trillion in 2022 as per CII estimates. In
addition, the country's industrial output has significantly increased, which has
supplemented the pace of urbanization which is expected to accelerate by 2047. Sadbhav
Engineering being the forerunner in the construction industry is poised to tap the
opportunities emerging to build robust infrastructure to support this growth.
During the reporting period, your Company has reported a turnover of Rs.889.17 Crores
with total income of 1054.16 Crores. Your Company has constructed over 9621 lane kms as of
March 31, 2023. The Company has completed a total of 46 projects in the transportation
sector in which 43 of Highway Projects (out of which 11 are EPC projects, 11 BOT projects,
20 Item rate projects, and 1 Annuity project) and 3 are Metro Projects as on March 31,
2023. The irrigation division of your Company has completed canal work over 819 km and the
mining division has mined over 574 MN cubic meters as of March 31, 2023. Your Company's
gross block of fixed assets stands at Rs. 522.83 crores as of March 31, 2023.
The Company has initiated action for monetization of the assets and One Time Settlement
(OTS) discussions with the Trade Creditors as a part of the deal, upon the insistence of
the buyers of assets. Your Company is committed to safeguarding the interests of all its
stakeholders and it continuously engages with them to understand the issues material to
our business. The prioritisation of these material issues gives us a clear strategic
direction to formulate long-term and short-term development goals and actions. Our
continued engagement enables us for knowledge exchange & collective action, networking
& advocacy and people-centred policy development & implementation.
Furthermore, your Company is successful in formulating a transformation strategy and
surpassing the challenges it faced in recent years as the consequences of business
continuity impacts due to the pandemic phase. Your Company has optimised its resource
utilisation and enhanced its operational efficiency to minimise the cost impacts on
profitability. We are prudently bidding and choosing the projects that are financially
viable so that we can optimise the stakeholders' value and vindicate the trust put by them
in us. For any Company to become big, investing the financial capital is not merely
sufficient. A lot of hard work and sweat, dedication, vision, and enthusiasm are the
intangible investments that are also required to make the financial investments yield
positive returns. We, at Sadbhav never leave any stone unturned and put our best foot
forward in making your Company successful.
Your Company believes that the employees are the key partners in all its endeavours and
the innovative pursuits to materialise its long-term vision and goals. Your Company has
adopted the state-of-the-art technologies like SAP S4-HANA to manage the resources across
the country in real time. Your Company provides the conducive environment and career
growth opportunities to attract and retain the best talent. The training and development
program has been carefully designed to give impetus to the right talent to chart their
career growth path within the organisation. At Sadbhav, employees are motivated to
collaborate with their counterparts from other parts of our operations to foster the
culture of excellence through innovation and knowledge sharing.
By creating a synergy between the value partners and the communities in which the
company operates, your Company is able to identify and provide solutions that create
long-term stakeholder value through sustainable infrastructure that benefits the nation. I
take this opportunity on behalf of the management of Sadbhav Engineering Limited to thank
all the stakeholders, including the shareholders, clients, contractors, suppliers,
community members, employees, and government authorities for their support.
As a concluding remark, once again I would like to reiterate our commitment to
transforming tomorrow for all our stakeholders through all our endeavours.
Regards,
Shashin V. Patel
Chairman & Managing Director.