About Interarch Building Products Limited

Interarch Building Products Limited commenced its operations in 1983, focusing on high-end metal interior products in India. Over the years, it has evolved into one of the leading turnkey pre-engineered steel construction solution providers. The company offers comprehensive solutions ranging from metal ceilings and blinds to metal roofing and pre-engineered buildings.

Milestones

With 40 years of experience, Interarch has integrated facilities for design and engineering, manufacturing, and on-site project management. It collaborates with partners to support critical industrial, commercial, and infrastructure projects. Interarch’s expertise ensures quality and timely execution, making it a trusted name in India’s construction sector.

Business Model of Interarch Building

Interarch Building has transitioned from specializing in metal interior products to becoming a comprehensive provider of metal-based building solutions.

Key Product Offerings

1. Metal Ceilings:

   • Combines visual appeal with functionality.

   • Features acoustic control and fire resistance.

2. Blinds:

   • Metal or metal-component blinds designed for light and privacy control.

3. Metal Roofing:

   • Durable and aesthetically pleasing solutions offering protection and enhancing building appearance.

4. Pre-Engineered Buildings (PEBs):

   • Known for speed of construction and cost-effectiveness.

   • Designed and manufactured with precision.

Client Sectors

• Commercial Buildings: Offices, retail spaces, etc., utilize Interarch’s ceilings, blinds, and roofing.

• Residential Buildings: Homeowners leverage modern and durable roofing and design solutions.

• Industrial Facilities: Warehouses and factories benefit from pre-engineered buildings.

• Infrastructure Projects: Airports, railway stations, and more employ their versatile products.

About the Industry

Growth Overview

• The construction GVA (Gross Value Added) in India increased to Rs 13.1 trillion in FY 2023 from Rs 7.8 trillion in FY 2012, at a CAGR of 4.8%.

• Key growth drivers include economic expansion, government-led infrastructure projects (roads, railways, energy), increased FDI, and the demand for affordable housing due to urbanization and a growing middle-class population.

Projected Investments

• Construction investments rose to Rs 46-48 trillion between FY 2020-2024 and are expected to reach Rs 74-76 trillion between FY 2025-2029.

• Warehousing and cold-storage sectors are estimated to see investments of Rs 460-500 billion between FY 2025-2029.

• The Smart Cities Mission aims to develop 100 smart cities, with more than 8,000 projects worth Rs 1.7 trillion.

PEB Industry Insights

• Expanded at an 8.0% CAGR from Rs 130 billion in FY 2019 to Rs 195 billion in FY 2024.

• Expected to grow at an 11-12% CAGR from FY 2024-2029, reaching Rs 330-340 billion.

Competitive Landscape

1. EPack Polymers Pvt Ltd (1999):

   • Offers prefabricated and pre-engineered solutions across airports, hospitals, and schools.

2. Everest Industries Ltd (1934):

   • Specializes in steel buildings for industrial projects, warehouses, and multi-storey buildings.

3. Interarch Building Products Ltd (1983):

   • Provides integrated solutions with over 40 years of experience in critical projects.

4. Kirby Building Systems India Pvt Ltd (2005):

   • Operates across healthcare, industrial construction, and education.

5. M & B Engineering Ltd (1981):

   • Part of M&B Group, focusing on turnkey engineering and infrastructure solutions.

6. Pennar Industries Ltd (1975):

   • Serves sectors like commercial buildings, health facilities, and high-rises with pre-engineered structures.

7. Phenix Building Solutions Pvt Ltd (2007):

   • Provides prefabricated structures for industries including manufacturing and warehousing.

8. Smith Structures (India) Pvt Ltd (2011):

   • Offers pre-engineered buildings for sectors like pharmaceuticals, chemicals, and textiles.

9. Zamil Steel Buildings India Pvt Ltd (2003):

   • A subsidiary of Zamil Steel, a global supplier with over 90,000 structures across 90 countries.

Revenue Segmentation

Interarch generated a revenue of Rs 12,760.83 million in FY 2024 from operations:

• PEB Segment: Rs 9,785.87 million (75.67% of total revenue).

• Building Materials: Rs 2,974.96 million (23% of total revenue).

Strengths of Interarch Building

1. Market Position:

   • Ranked third in operating revenue from PEB business in FY 2024.

   • Second-largest installed capacity at 141,000 MTPA and a 6.5% market share.

2. Customer Relationships:

   • Generates 81.39% of revenue from repeat orders due to quality, cost efficiency, and timely execution.

3. Revenue Growth:

   • Achieved a revenue CAGR of 24.46% from FY 2022 (Rs 8,349.43 million) to FY 2024 (Rs 12,933.02 million).

4. Vertical Integration:

   • Presence across the PEB product lifecycle, from estimation and design to installation and project management.

Risk Factors

1. Dependency on Repeat Orders:

   • Loss or reduction in repeat orders could adversely impact revenue.

2. Manufacturing Risks:

   • Disruptions in manufacturing facilities could affect business operations.

3. Raw Material Supply:

   • Dependence on limited third-party suppliers poses risks of delayed or disrupted supply.

Opportunities

1. Renewable Energy Projects:

   • Significant capacity additions in solar and wind power from FY 2025-2029.

2. E-commerce Growth:

   • Rising demand for warehousing and cold storage facilities due to better connectivity and market proximity.

3. Government Initiatives:

   • Policies like Make in India, PLI, and Gati Shakti drive growth with increased capex investments in infrastructure and construction.

Interarch Building's extensive experience, diverse product portfolio, and strong market presence make it a leader in India's PEB and construction sector. With opportunities in renewable energy and warehousing driven by government initiatives, the company is well-positioned for growth. For insights on Interarch Building Share Price and its market trends, stay tuned for regular updates.