Interarch Building Products Limited is one of India's leading providers of turnkey pre-engineered steel construction solutions. The company offers a comprehensive range of services, including design, engineering, manufacturing, on-site project management, and installation of pre-engineered steel buildings (PEBs). Interarch was ranked third in terms of operating revenue from PEB business in the Financial Year 2023 and held the second-largest aggregate installed capacity in the sector as of March 31, 2024, with a market share of 6.5%.
Interarch's PEBs are custom-designed to meet customer requirements and serve various sectors, including industrial, infrastructure, and building (residential, commercial, and non-commercial) applications. The company has a strong track record, completing 677 PEB contracts between the Financial Year 2015 and 2024. These projects range from multi-level warehouses for e-commerce to manufacturing units for the FMCG sector and large-span PEBs for indoor stadiums and the cement industry.
Four manufacturing facilities support the company's operations, with a total installed capacity of 141,000 metric tonnes per annum. Additionally, three design and engineering centers ensure that the PEBs meet the highest standards of efficiency and compliance. Interarch's commitment to quality and innovation has been recognised through multiple awards, including the 'Pre-Engineered Building Project of the Year' in 2022.
With plans to expand its manufacturing capacity further. The company's experienced management team continues to drive its success in the competitive market.
Industry Outlook
- India's infrastructure investment is set to increase significantly, with expected spending of ₹51-53 trillion between Financial Years 2025-2029, compared to ₹29-31 trillion in the previous five years. This boost in infrastructure, driven by initiatives like the National Infrastructure Pipeline, will lead to greater demand for pre-engineered buildings (PEBs).
- The shift to a hub-and-spoke warehousing model, particularly after GST implementation, is expected to drive demand for large, modern PEB warehouses. This realignment presents major opportunities for Interarch Building Products Limited, enabling it to capitalise on the growing need for advanced warehousing solutions across India.
- With the building and construction sector projected to grow at 4-6% in the Financial Year 2025 and total investments rising to ₹18-19 trillion by the Financial Year 2029, Interarch Building Products Limited can benefit significantly from this expansion.
Interarch Building Products IPO Objectives
The funds raised from the issue will be allocated for the following purposes:
- Allocate ₹585.33 million to establish a new PEB manufacturing unit in Andhra Pradesh, enhancing its production capacity.
- Invest ₹192.46 million to modernise its Kichha, Tamil Nadu I & II, and Pantnagar manufacturing facilities for improved efficiency.
- A total of ₹113.92 million is earmarked for upgrading the company's information technology systems, which will ensure better operational support.
- ₹550 million will be directed towards boosting the company’s working capital, supporting its day-to-day operations.
- The remaining funds will be used for general corporate purposes.
Peer Details
The following are the listed peers of Interarch Building Products Limited:
- Everest Industries Limited
- Pennar Industries Limited
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Contact Details of Interarch Building Products Limited
Registered office: Farm No. 8, Khasara No. 56/23/2, Dera Mandi Road, Mandi Village, Mehrauli, New Delhi 110 047, Delhi, India
Phone: +91-12041 70200
E-mail: compliance@interarchbuildings.com
IPO Financials
| Particulars | For the year ended 31 March 2024 | For the year ended 31 March 2023 |
|---|---|---|
| Revenue From Operations (in ₹ million) | 12,933.02 | 11,239.26 |
| Net worth (in ₹ million) | 3,875.04 | 3,437.99 |
| Profit After Tax (PAT) (in ₹ million) | 862.62 | 814.63 |
| Cash & Cash Equivalents (in ₹ million) | 615.77 | 586.63 |
| Return on Net Worth (%) | 22.26 | 23.69 |
| EBITDA (in ₹ million) | 1,130.15 | 1,063.80 |
| Return on Equity (%) | 19.40 | 20.40 |
| Total Borrowing (in ₹ million) | 102.03 | 113.84 |
Know before investing
Strengths
6Interarch Building is ranked third in operating revenue among PEB players in FY 2024.
The company holds the second-largest installed capacity of 141,000 MTPA in India's PEB industry.
Interarch operates eight sales and marketing offices across India to serve its diverse customer base.
The company has completed 677 PEB contracts from FY 2015 to FY 2024, showcasing extensive experience.
Interarch's vertically integrated manufacturing covers all stages, from design to on-site installation.
The company has been recognised with multiple awards, including 'Pre-Engineered Building Company of the Year' in 2022.
Risks
6Interarch is highly dependent on the availability and cost of steel, making price volatility a significant threat.
Any disruption in the supply chain of raw materials can adversely impact Interarch Building Products Limited's business and financial health.
Interarch Limited's reliance on a few key suppliers poses a concentration risk that could affect production if these suppliers fail to deliver.
Loss or reduction in repeat orders can significantly impact the revenue of Interarch Building Products Limited.
Interarch Limited faces risks from potential disruptions or slowdowns in its manufacturing operations.
Outsourcing services to third parties introduces risks, as any failure in their service delivery can negatively affect the company.
