Construction Industry

INDUSTRY OVERVIEW

The construction industry in India is a significant sector because it directly helps in creating investment opportunities across various other sectors. The sector has a share of 9 per cent in the country’s GDP (Gross Domestic Product) and employs nearly 51 million. 

100% foreign direct investment is allowed in completed projects for operations and management of townships, malls/shopping complexes, and business constructions under automatic route.

100?I is allowed in urban infrastructures such as urban transport, water supply and sewerage and sewage treatment under the automatic route.

ABOUT THE COMPANY

The company had over 13 years of experience in the construction sector. After a long career in commercial construction including housing, malls and offices, they wanted to venture into a larger project. The project involved rebuilding or reconstructing the road network in a city to accommodate the increased number of cars and pedestrian traffic.

SPECIFICATIONS

• The project inducing upgrading sidewalk, landscaping, lighting, curb and gutter, pavement.
• They had an established project budget before the design development stage.
• A green belt was in the ideating stage.
• They were planning on hiring more staff for assistance in dealing with a large scale project.
• While the project seemed easy, it was in reality a mammoth task with additional traffic control issues.

OUR INVOLVEMENT

While the company had almost everything charted out, they lacked backing from a reliable investor.   They had a tight budget and were looking for soft loans to fund their project. This is when they contacted us looking for soft loans from foreign investors. 

As is first with every project we accept, we thoroughly researched the plan to deduce the foreign direct investment availability. We mapped the entry routes and any complications the project may face in the future. The challenge for us was to guide the entire project through the lengthy process of foreign direct investment without incurring major difficulties.

We helped the company connect with a foreign investor who was interested in their proposal. 

CURRENT SCENARIO

• The construction is set to begin at the end of the year due to the unexpected COVID-19 pandemic.
• The company has a well planned out blueprint.
• They have also planned for a green belt around the area.
• A plan to manage traffic has also been charted out.