What does it offer?
- HQed in Mumbai, Capacite is an Engineering, Procurement and Construction (EPC) company
It provides end-to-end construction services for residential and commercial buildings
They build concrete structures as well as composite steel structures
It also provides mechanical, electrical and plumbing (MEP) services
Segments
Residential:
Core segment for the company
Specializes in high-rise (+7 floors) and super high-rise (+40 floors) structures
One of the few players with technical prowess and equipment to build 80+ storey towers
Provides shell & core, turnkey as well as MEP solutions
Commercial/Institutional:
Builds malls, hotels, commercial offices and multi-level car parkings
Institutional: Hospitals, data centers, factories, metro stations and educational institutions
Capabilities to build integrated townships, gated communities and mixed-use buildings
Who does it cater to?
Capacite is a B2B contractor for real estate players and state development authorities
Public sector clients: MHADA, CIDCO, PWD, BSNL, MCGM, GIFT, Indian Oil
Private sector clients: Lodha, Prestige, Brigade, Oberoi, Raymond, Piramal
Boasts long-term relationships with some of these clients with repeat orders
Business development teams prospects and targets project developers, architects and consultants for project leads
Where does it operate?
Capacite has delivered 70+ mn sq. ft. area across 15+ major cities
Key cities include Mumbai metropolitan region (MMR), Pune, NCR, Hyderabad, Bengaluru and Chennai
What are the key inputs?
Key inputs for Capacite is reinforcement steel and ready mix concrete (RMC)
Has direct procurement tie-ups with manufacturers for steel
RMC is typically sourced from established suppliers, such as ACC Limited, within the geographical proximity of its project sites
Engages subcontractors in line with the project requirements
Owns ‘Core assets’ including system formwork, tower tower cranes, passenger and material hoists, concrete pumps and boom placers
Sources formwork materials (scaffolding systems) from international suppliers including RMD, DOKA and MFE
How does it add value?
Specialized high-rise construction systems:
Niche specialization (in terms of skills & equipment) in complex high-rise construction
Exclusive focus on building projects, allowing them to meet rigorous prequalification standards for large/complex projects
In-house MEP, formwork and finishing
Comprehensive EPC services covering entire project lifecycle from design and engineering through procurement, construction, MEP installation, and final finishing
Owning a significant fleet of critical machinery and advanced formwork systems allows for faster project turnarounds and adherence to stringent quality standards
Revenue Model
Mobilization Advance: Clients typically provide an initial mobilization advance at the project's commencement
Revenue Recognition: Revenue is recognized using the percentage-of-completion method, based on input costs. Work is measured and certified monthly, with a 45-day total timeline for this process
Retention Money: A percentage of the contract value is withheld by the client as retention money. This is paid in parts: after project completion and at the end of the applicable defects liability period
Defects Liability Period: This period ranges from 12 to 72 months after project completion
Raw Material Funding: In some contracts, clients may provide funds for raw materials
Performance Security: Capacite is required to provide performance security, typically in the form of bank guarantees, as a fixed percentage of the contract value