The Indian infrastructure sector, a cornerstone of the nation’s economic engine, is witnessing a remarkable surge in activity, fueled by a staggering order book exceeding Rs. 10,76,685 crore. This robust pipeline of projects paints a promising picture for the future, highlighting the sector’s potential to propel India towards its ambitious USD 26 trillion economy target.
Leading the charge is Larsen & Toubro Ltd., a behemoth of infrastructure construction boasting an impressive order book of Rs 4,50,700 crore, capturing a dominant 41.86% share of the total pie. This underlines the company’s unwavering commitment to infrastructure development, encompassing diverse projects across various segments.
Following closely are other key players like IRB Infrastructure Developers Ltd., Rail Vikas Nigam Ltd. and NCC Ltd., each with substantial order books exceeding Rs. 60,000 crores. This collective strength of these large players signifies the increasing concentration of projects within their ambit, hinting at the potential for consolidation within the industry.
Delving deeper, the order book analysis reveals a diverse range of expertise within the infrastructure sector. Companies like Power Mech Projects Ltd., Kalpataru Projects International Ltd., and Techno Electric & Engineering Company Ltd. hold significant order books, representing expertise in areas like power generation, transmission, and engineering. This diverse landscape ensures a well-rounded approach to infrastructure development, catering to the multi-faceted needs of the nation.
The following table provides a comprehensive overview of leading infrastructure companies and their respective order book size:
| Sr. No | Company Name | Order Book (Rs crore) | % Share |
| 1 | Larsen & Toubro Ltd | 4,50,700.00 | 41.86% |
| 2 | IRB Infrastructure Developers Ltd | 72,793.00 | 6.76% |
| 3 | Rail Vikas Nigam Ltd | 68,000.00 | 6.32% |
| 4 | NCC Ltd | 61,796.00 | 5.74% |
| 5 | Power Mech Projects Ltd | 53,467.00 | 4.97% |
| 6 | Kalpataru Projects International Ltd | 47,040.00 | 4.37% |
| 7 | Techno Electric & Engineering Company Ltd | 38,248.00 | 3.55% |
| 8 | Ircon International Ltd | 32,152.00 | 2.99% |
| 9 | KEC International Ltd | 31,320.00 | 2.91% |
| 10 | Dilip Buildcon | 23,988.60 | 2.23% |
| 11 | ITD Cementation India Ltd | 22,080.00 | 2.05% |
| 12 | GR Infraprojects Ltd | 20,042.70 | 1.86% |
| 13 | Patel Engineering Ltd | 20,003.30 | 1.86% |
| 14 | PNC Infratech Ltd | 17,800.00 | 1.65% |
| 15 | J Kumar Infraprojects Ltd | 16,447.00 | 1.53% |
| 16 | Ashoka Buildcon Ltd | 15,067.00 | 1.40% |
| 17 | Hindustan Construction Company Ltd | 12,344.00 | 1.15% |
| 18 | H.G. Infra Engineering Ltd | 10,678.20 | 0.99% |
| 19 | ISGEC Heavy Engineering Ltd | 8,667.00 | 0.80% |
| 20 | Engineers India | 8,188.30 | 0.76% |
| 21 | KNR Constructions Ltd | 7,453.20 | 0.69% |
| 22 | HFCL | 7,078.00 | 0.66% |
| 23 | Sterling and Wilson Renewable Energy Ltd. | 6,835.00 | 0.63% |
| 24 | Rites | 5,529.00 | 0.51% |
| 25 | Techno Elec.Engg | 4,361.00 | 0.41% |
| 26 | GE Power | 3,699.00 | 0.34% |
| 27 | Vascon Engineers Ltd | 2,854.00 | 0.27% |
| 28 | Om Infra | 2,805.00 | 0.26% |
| 29 | Man InfraConstruction Ltd | 1,156.00 | 0.11% |
| 30 | SEPC Ltd. | 1,109.00 | 0.10% |
| 31 | IL&FS Engg. | 784.00 | 0.07% |
| 32 | K.P. Energy | 558.38 | 0.05% |
| 33 | Markolines Pavem | 504.00 | 0.05% |
| 34 | Semac Consul | 487.00 | 0.05% |
| 35 | W S Inds. | 400.00 | 0.04% |
| 36 | Advait Infratech | 250.50 | 0.02% |
| Total | 10,76,685.18 | 100.00% | |
The government’s commitment to infrastructure development is further reaffirmed by the monumental increase in budget allocation for infrastructure in the 2023-24 budget. This 33% surge, translating to Rs. 10 lakh crore, represents a commendable 3.3% of GDP and signifies the unwavering support for the sector’s growth.
Specifically noteworthy is the record-breaking allocation of Rs. 2.40 lakh crore for Indian Railways, exemplifying the government’s unwavering commitment to modernize and expand this crucial transportation network. Similarly, the airport sector is poised for significant expansion with a Rs. 98,000 crore outlay dedicated to its development.
These investments, coupled with the ambitious five-year National Infrastructure Pipeline targeting a USD 1.4 trillion expenditure, paint a vibrant picture of future growth for the sector. The role of private sector participation in this growth trajectory cannot be overstated. Initiatives like India-Japan collaboration for Northeast development and substantial investments in ports under the Maritime India Vision 2030 exemplify this collaborative spirit, propelling the sector towards a brighter future.
Looking ahead, the Indian infrastructure sector is poised for an exponential leap, driven by government initiatives, private sector investments, and a robust order book. This growth trajectory supported by robust orderbooks promises to propel India towards its economic aspirations while enhancing the quality of life for its citizens. As the sector continues to evolve, it will be fascinating to witness the contributions of these infrastructure titans and their role in shaping the nation’s future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions
Published on: Dec 11, 2023, 5:15 PM IST
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