Suyog Gurbaxani Funicular Ropeways Share price and Fundamental Analysis

Company History

The Company was incorporated as 'Suyog Gurbaxani Funicular Ropeways Private Limited' on February 11, 2010 with the RoC, Mumbai. The Company got converted to Public Limited and name of the Company was changed to 'Suyog Gurbaxani Funicular Ropeways Limited' vide Special Resolution dated August 21, 2017. The fresh Certificate of Incorporation consequent to conversion was issued on September 09, 2017 by the Registrar of Companies, Mumbai.

The Company is an Infrastructure Development and Construction Company engaged in building & operating the Funicular Ropeways Systems. The Company is currently involved in an Infrastructural Development project through a Build, Operate and Transfer mode (BOT) wherein, it completed construction of a Funicular Ropeway System project (also known as Incline Ropeways) at Saptashrungi Gad Temple situated at Vani, Nashik, Maharashtra. The project is spread over in an area of 10 acres, which houses the funicular ropeway system, a shopping mall, a parking facility and a hotel facility.

In addition, the Company engages sub-contractors, who provide with casual and temporary contract labor from time to time. Having a large work force enables to mobilize skilled employee resources depending on location and necessary expertise for projects undertaken by them. The sophisticated equipment and skilled employee resources enables Company to implement modern infrastructure and construction methodologies successfully.

The Saptashrungi Project primarily has a Funicular Ropeway System consisting of 2 Air Conditioner funicular vehicles / Coaches which carry 60 passengers/ devotees at a time. The Shopping Complex, forming a part of the project, provides the facility of more than 50 shops providing various buying avenues to the visitors including food shops. The parking facility built in the vicinity of the funicular ropeway, has a capacity of more than 150 vehicles including four wheelers and two wheelers. The Company has constructed a hotel which houses 28 guest rooms & dormitories, a multi cuisine restaurant and a coffee shop as well.

The Company have priced the funicular ropeway tickets keeping in mind the economically conscious devotees / tourists so that services are accessible to class of visitors. The prices ranges for a to-and-fro trip to the temple is Rs.50/- to Rs.100/- and provide discounts on the children and senior citizen tariffs. Keeping in line the recent trends, Company launched own website, where devotees / tourists can pre-book the rides and make online payments for same.

As the Funicular passenger ropeway was a new concept in Indian at the time of launch, the Company has been accredited by Ukraine-based Project and Design Institute M/s SOYUZ ' Pro- Mmekhanizatsiya' (Promechanism) for techniques used by Company and act as technology and design suppliers for the Company. The institute designs passenger and freight cableways, handling machinery, cable cranes and funiculars. The Company has taken into consideration all safety measures related to projects, its Ropeway is being designed with all safety measures and consist of Two by Two Unit's Spring Loaded Emergency Rail Brakes, Emergency Brake on Bull Wheel, Spring Applied Hydraulic Release Brake and Deceleration Controlled Service Brake which can stop and hold the ropeway even at the steep at the time of some contingency or in the event of breakdown of rope.

Accordingly, the Company planned to build a hotel in the vicinity of the ropeway. The hotel houses different types of accommodation for people of different demographics providing a customer-oriented approach to maximize bookings. The accommodation service includes 28 rooms, divided into 6 suites and 22 Deluxe Rooms and caters to people from economically higher and middle class tourists. The hotel as well houses a dormitory, which provides accommodation for men and women in 2 different halls, both with 16 beds each. The dormitory is aimed to provide accommodation for lower income group devotees.

Further, the hotel includes a restaurant and coffee shop providing different guests at hotel and other tourists a variety of options to choose from. The Company have separate air conditioned and non-air conditioned dining halls in the restaurant. The entire operation and management of the hotel premises is done by the Company and is provided a specific booking website with the increased use of technology and online payments. In-house management of booking and overall hotel operations ensures high level of service and cost efficiencies.

The Company has developed a shopping zone as part of the 'Saptashrungi' project. The shopping zone consists of a dedicated mall building, with a capacity of 56 shops including 14 dedicated shops and a huge open space which can accommodate 34 shops by way of kiosks / stalls. The mall building also has a food court serving various delicacies to the devotees / tourists. Further, the Company allotted various sweet shops in the ropeway compound which offers traditional sweets to the devotees / tourists on their way up to the funicular ropeway. On the 1st floor of the mall building, the Company currently have site office and 5 rooms, including into 2 suites and 3 resting rooms, which are used for visiting employees / directors and other dignitaries, and an open area which the Company plan to rent out to restaurants and develop a museum / art gallery.

The Company have built a large parking facility as part of the Saptashrungi Project which accommodate more than 100 four wheelers and 50 two wheelers at a time. The parking lot is situated between the Hotel and the Shopping mall, providing easy access to guests staying at the hotel and to tourists who need to visit the temple and shopping areas. The parking area is managed by Company and provided on a pay-n-park basis at affordable rates, till the period of operation. Further, the parking facility has helped streamline the traffic flow in avoiding congestions and traffic jams.

The project being involved in Funicular Ropeway and infrastructural activities require huge electricity consumption; the Company has taken electricity power from Maharashtra State Electricity Distribution Co. Limited and having 1500 KW power supply. The Company has installed DG Set facility at the Saptashrungi premises for meeting out continuing operations in the period of power cuts. It installed totally 3DG sets namely:- 320 KVA Make Kirloskar, 100 KVA Make Cumins and 82.50 KVA Make Cumins.

The Company have taken into consideration all safety measures required for project and received a certificate from foreign consultant which confirm the safe operation of Funicular Ropeway, being designed considering all safety measures which can stop and hold the funicular ropeway at a particular place even at the steep, at the time of some contingency or in the event of breakdown of rope or some technical problem arise in ropeway.

In the year 2009-10, the PWD Department, which conducted the tender process, awarded the Company the tender to Built, Operate and Transfer the Funicular Ropeway project.

The Company has been awarded the work to design, engineer, procure, finance, construct, operate and maintain Funicular Ropeway on Build, Operate & Transfer (BOT) basis at Saptashrungi Gad, Vani, Kalwan, Nashik, and to charge and collect the toll fees as per Concession Agreement dated Jan 12, 2010, executed with Government of Maharashtra, Public Works Department.

In February 2010, the Company received Work Order for construction of Funicular Ropeways at Saptashrungi project.

In June 2010, the Forest Department granted 4 hectare of land for construction of project to the Company.

In July 2010, the Government granted possession for the 4 hectare of land received for construction of the project.

In September 2010, the Company Received Water permission for the project from the Maharashtra Water Department.

In December 2010, the Company Received consent of Gram pachayat for construction of the Project.

In February 2011, the PWD Steering Committee, which conducted the tender process approved the Company's project drawn for with single track system.

In November 2011, the Company obtained confirmation from RITES to act as technical consultant for the single track project.

The Company obtained RITES confirmation for change in project plan to double track instead of single track in January 2012.

The Company received consent from Temple Trust to build machine room near the temple in May 2013.

In June 2014, the Company had requested for an extension of concession period citing the various delays in the project including delay in possession of land, drawings approvals, temple and Gram Panchayat approvals, change in design and plan, etc. Considering the above, it was decided to grant an extension of approximately 3 years and 2 months to the PWD citing various statutory clearance delays and change in plans.

The official Project management Consultant certified the Company that the construction of the Funicular ropeway is as per approved drawings & specification of PWD in July 2015.

In January 2017, the construction, operations and management of the Saptashrungi project was allocated to the Company with further extension period for 3 year- 1 month and 27 days received from the PWD, Nashik. During the same period, the Foreign Safety Consultant suggested additional braking facility before certifying the safety measures of the Funicular Ropeway to the Company.

The Company received Final Safety Certificate from Tribal Public Works Division for completion of construction of the entire Funicular Ropeways Project in October 2017.

The Company was awarded 'Navratna Award' for the Indian construction Industry for first BOT Funicular Ropeway in India at Saptashrungi, Vani, District Nashik, Maharashtra in the year 2017.

In January 2018, the Certificate from Damodar Ropeways Private Limited was received confirming the employee training for operating the Funicular Ropeway project.

In February 2018, the Company received Provisional Completion Certificate from PWD, Nashik.

The Company received Fire NoC in operating the Ropeway for public use in March 2018.

The then Hon. Chief Minister of Maharashtra, Mr. Devendra Fadnavis, inaugurated the completion of construction of a Funicular Ropeway project at Saptashrungi Gad Temple situated at Nashik, Maharashtra in July 2018. The Company completed the project and started collection of toll with effect from July 03, 2018. The Company received Final Completion Certificate from PWD, Nashik in January 2019.