Engineering, Procurement, and Construction (EPC) Company
Company:
An EPC company was established as a sole proprietorship in 1992 and later converted into a partnership firm in 2016. The company specializes in executing EPC contracts for road construction projects for government entities. In addition to its core operations, it has diversified into the production of stone aggregates and M-Sand, utilizing advanced technologies to ensure consistent material quality and promote sustainable practices.
Problem:
The company faced challenges in securing funding on favorable terms due to the absence of an external credit rating. Limited access to competitive financing hindered its ability to scale operations effectively. Additionally, the lack of a strong credit profile restricted its participation in competitive tender processes, impacting its ability to secure new orders.
Solution:
As advisors, we highlighted the company’s successfully executed high-value projects, showcasing the complexities and critical challenges it had overcome. We conducted a detailed financial analysis, demonstrating the company’s strong financial position and operational efficiency. This data was strategically presented to rating agencies to reinforce the company’s creditworthiness.
Impact:
With an investment-grade credit rating, the company gained access to funding at competitive rates, strengthening its liquidity position and supporting its growth plans. Additionally, the improved credit profile enabled it to secure significant government contracts through competitive bidding processes with central and state agencies, including NHAI.