September 19, 2023
Jain International Power Limited
From Distributor to Leading Mechanical Infrastructure Service Provider
Case Study
Client Overview: Jain International Power Limited (JIPL), originally started as a distributor for engineering goods, specializing in motors and related equipment. Over the years, the company garnered a reputation for excellence, winning prestigious awards from leading global manufacturers like Crompton & Greaves, a market leader in electric motors. However, despite its initial success, JIPL faced challenges in expanding beyond distribution and capturing a significant share in the growing infrastructure sector.
Challenge: While JIPL was highly regarded as a distributor of engineering goods, the company realized that to achieve sustainable growth and scalability, it needed to pivot its business model and focus on a more value-driven industry. The existing business model was not fully capitalizing on the opportunities in the infrastructure sector, particularly in mechanical engineering services. The company was also limited in terms of operational capacity, technological innovation, and a skilled workforce.
Solution by VDBL: In 2021, VD Business Labs (VDBL) entered the picture, offering a comprehensive roadmap to help JIPL transition into a leading mechanical infrastructure service provider. Under VDBL’s strategic guidance, JIPL embarked on a transformative journey that not only quadrupled its revenue but also positioned it for sustained growth in India’s rapidly expanding infrastructure sector.
Key strategic actions taken by VDBL included:
1. Hiring the Right Talent:
VDBL helped JIPL hire a new team of engineers, HR professionals, and corporate experts, enabling the company to develop the necessary technical and operational capabilities. This enabled them to diversify their business model from being a distributor to a full-fledged service provider.
2. Shifting Focus to Mechanical Infrastructure Services:
With a clear focus on contributing to India’s infrastructure growth, JIPL shifted its core business towards mechanical engineering services, particularly catering to the needs of large infrastructure companies in sectors like civil, water, and electrical distribution.
3. Customized Automation Solutions:
Recognizing the potential of automation, JIPL ventured into providing customized automation services at various construction sites. These services were designed to reduce manpower, increase quality, and save time, especially in projects ranging from water infrastructure to electrical distribution projects.
By understanding the specific needs of each project, JIPL was able to implement niche automation solutions that allowed construction and infrastructure companies to optimize their operations and achieve higher efficiency.
4. Focus on Infrastructure Projects:
JIPL’s deep understanding of mechanical infrastructure needs led them to become a preferred partner for large infrastructure projects across the country. By focusing on quality, innovation, and timely delivery, the company expanded its footprint and rapidly gained a reputation for excellence in mechanical infra services.
Results and Impact:
Thanks to VDBL’s support and JIPL’s relentless drive, the company has achieved remarkable success in a short period. Here’s a snapshot of the transformation:
· 4X Revenue Growth in 3 Years:
JIPL’s turnover has increased by 4 times in just three years, primarily driven by their pivot to mechanical infrastructure services and automation. The company has grown at an impressive 50% CAGR.
· 2.5x Growth in Topline & 4x Growth in Bottomline:
These efforts culminated in a 2.5x growth in the company’s top line and a 4x growth in the company’s bottom line. The infusion of capital helped reduce the cost of funds, improve the debt-to-equity ratio, and drastically cut operating costs, all contributing to significant growth.
· Infrastructure Service Provider Status:
JIPL has successfully transitioned from being a distributor to a leading mechanical infrastructure service provider in India. Their services are now an integral part of large-scale infrastructure projects across various sectors.
· Automation Impact:
Their customized automation solutions have been critical in improving the efficiency of construction projects, reducing costs, and saving time across sectors. This has made JIPL a trusted partner for many infrastructure companies, including those in civil, water, and electrical distribution.
· Corporate Governance and Compliance:
JIPL, under the guidance of VDBL, has adopted the highest standards of corporate governance and compliance, making them a standout example in the industry. This transformation has allowed them to access larger projects and positions them for continued growth.
· IPO Readiness:
With a transformed business model, robust operations, and impeccable governance practices, JIPL is now IPO-ready. The company is set to engage with the capital markets and take its growth story to new heights, further contributing to India’s infrastructure development.
Impact and Results:
Thanks to VDBL’s comprehensive support, BFL has undergone a complete transformation quickly. The company now has:
Looking Ahead:
JIPL’s transformation into a mechanical infrastructure service provider is just the beginning. With a strong order book, a skilled workforce, and the backing of investors and capital markets, the company is well-positioned to continue expanding its footprint. The company’s vision is clear: to be a leading player in India’s infrastructure sector, driving innovation, quality, and automation. As they take the next step towards going public, JIPL’s future holds immense potential for growth and value creation, not only for the company but for the entire infrastructure ecosystem.
Key Achievements:
- Revenue Growth: 4X growth in 3 years, 50% CAGR.
- Transition to Infrastructure Services: Successfully pivoted from distribution to mechanical infrastructure services.
- Customized Automation Solutions: Provided automation at construction sites, saving costs and increasing efficiency.
- IPO Readiness: Transformed into a public limited company with a strong governance framework and corporate structure.
- Corporate Governance & Compliance: Adopted industry-leading governance practices, positioning JIPL for future growth in the capital markets.
Jain International Power Limited’s journey, with VDBL’s strategic intervention, is a true example of how a company can reinvent itself, expand into new sectors, and achieve extraordinary growth by embracing innovation, technology, and strong leadership.