Aggcon Equipments International IPO

Aggcon Equipments International Limited IPO Strengths

Extensive and Modern Equipment Fleet

Aggcon Equipments International Limited offers an extensive and diverse fleet of modern, high-quality equipment sourced from global manufacturers. With a low average fleet age of 2.91 years, the company ensures operational efficiency and minimal maintenance costs. The company’s comprehensive selection covers various infrastructure segments, positioning them as a one-stop solution for clients.

Pan-India Service Delivery

Aggcon Equipments International Limited provides seamless equipment rental solutions across India, serving customers in diverse sectors like infrastructure, construction, and mining. The company’s pan-India presence and strong supply chain network ensure prompt delivery, with an average mobilization time of 7-10 days for equipment redeployment. This responsiveness has led to strong customer relationships and positive feedback.

Exclusive Focus on Equipment Leasing

The company’s singular focus on equipment leasing and rentals provides a key competitive advantage. This specialization allows Aggcon Equipments International Limited to offer flexible, cost-effective solutions that help clients optimize capital deployment and improve liquidity. This business model allows them to leverage bulk purchasing power to secure competitive pricing, passing cost efficiencies on to customers.

Strong Customer and Supplier Relationships

Aggcon Equipments International Limited has cultivated strong, long-term relationships with both customers and suppliers. Their ability to make bulk purchases from reputable manufacturers ensures competitive pricing and access to the latest technologies. This, combined with their focus on customer satisfaction, has resulted in a steady increase in repeat customers and robust market acceptance.

Experienced Leadership and Management

The company benefits from the extensive experience of its promoters, Jitender Aggarwal and Renu Aggarwal, who have over 40 years of collective experience in the infrastructure equipment rental industry. This strong leadership, supported by a qualified senior management team, enables the company to anticipate market trends, maintain relationships, and make timely strategic decisions that contribute to sustained growth.

Robust Financial Performance

Aggcon Equipments International Limited has demonstrated strong financial performance, with impressive growth in revenue and profitability. The company reported the highest EBITDA and EBIT margins among its listed peers in Fiscal 2025 and the highest average blended yield per month in both Fiscal 2024 and Fiscal 2025. This strong financial position supports future growth initiatives.

More About Aggcon Equipments International Limited

Aggcon Equipments International Limited is among the leading and fastest-growing infrastructure equipment rental companies in India. Between FY 2023 and FY 2025, the company recorded a revenue growth of 21.56% CAGR, with an impressive EBITDA margin of 61.32% and EBIT margin of 41.11% in FY 2025 (Source: 1Lattice Report). With more than 22 years of experience, it operates an integrated network across India, offering one of the most diverse rental fleets in the industry.

Fleet and Services

Aggcon provides a comprehensive range of infrastructure equipment, including:

• Earthmoving Equipment

• Road Construction Equipment

• Material Handling Equipment

• Concrete Equipment

• Foundation Equipment

• Aerial Workspace Platforms

As of March 31, 2025, the company had a fleet of 337 units with an average age of 2.91 years, catering to industries such as road construction, railways, power, mining, and waterways.

Key Clients and Projects

The company serves major industry leaders, including:

• Afcons Infrastructure Limited

• Tata Projects Limited

• Monte Carlo Limited

• G.R. Infraprojects Limited

Aggcon’s equipment has supported landmark projects like the Mumbai Trans Harbour Link (MTHL PKG-1), INS Varsha Naval Facility, Kudankulam Nuclear Power Plant, and the Dhubri-Phulbari Bridge.

Industry Position

Aggcon is among the few Indian companies focused exclusively on construction equipment rental (Source: 1Lattice Report). Its operations are further strengthened through memberships in key organisations, such as ASSOCHAM, FICCI, CERA, COAOI, and CIDC.

Subsidiaries

The company has four subsidiaries—Savbri International Pvt. Ltd., RJSP Logistics Pvt. Ltd., Remodelers Buildcon Pvt. Ltd., and Max Rentals Pvt. Ltd.—which play a vital role in executing large-scale projects like the Rishikesh-Karanprayag Tunnel and High-Speed Rail C4 Vapi.

Leadership and Vision

Founded in 2003, Aggcon is led by its promoters, Jitender Aggarwal and Renu Aggarwal, who collectively bring over 40 years of expertise. Guided by their leadership, the company aims to serve India’s expanding infrastructure sector with sustainable, modern rental solutions, positioning itself as a trusted partner for national development.

Industry Outlook

Market Size & Growth Prospects

The Indian construction equipment industry is witnessing rapid expansion, supported by the government’s infrastructure agenda and rising private investments. The market is estimated at around USD 8.5 billion in 2025 and is projected to grow to USD 12.7 billion by 2030, registering a CAGR of about 8–9%. Other estimates suggest growth from USD 14.3 billion in 2024 to USD 29.5 billion by 2033, reflecting a CAGR of nearly 7.6%, while more optimistic projections indicate an 11.9% CAGR until 2032.

Growth Drivers

• Government Push: National Infrastructure Pipeline, Smart Cities, PMAY housing, and highway development projects.

• Urbanisation & Industrialisation: Growing demand for real estate, railways, power, and mining equipment.

• Technology & Sustainability: Increasing adoption of electric machinery, automation, and telematics solutions.

Equipment Rental Market Outlook

The Indian construction equipment rental market is on a stable growth path, expected to expand at a CAGR of 5.1% between 2025 and 2030. Renting has become a preferred option due to cost savings, flexibility, and the inclusion of operator and maintenance services. The material handling segment, particularly cranes, dominates rental demand, driven by mega projects such as bullet trains, freight corridors, metro rail, and expressways.

How Will Aggcon Equipments International Limited Benefit

• Rising infrastructure investments will drive consistent demand for Aggcon’s equipment across highways, metros, and industrial projects.

• Growth in the rental market at a steady 5% CAGR aligns directly with Aggcon’s business model, ensuring recurring revenue opportunities.

• Increasing reliance on material handling and earthmoving equipment places Aggcon’s fleet in a strong demand category.

• Urbanisation and industrialisation will expand project pipelines, enabling Aggcon to strengthen its partnerships with leading construction firms.

• Adoption of modern, sustainable equipment in the industry complements Aggcon’srelatively young fleet, enhancing operational efficiency.

• Government-backed mega projects create long-term visibility, positioning Aggcon as a trusted partner in India’s growth story.

Peer Group Comparison

Name of the Company	Total Income (₹ mn)	Face Value (₹/share)	EPS (₹)	NAV per Share (₹)	P/E	RoE (%)
Aggcon Equipments International Limited	1,651.01	1.00	3.40	15.46	NA	24.73%
Peer Groups
Sanghvi Movers Limited	8,228.64	1.00	18.08	131.97	15.19	14.53%
Vision Infra Equipments Solution Limited	4,548.08	10.00	15.97	66.95	10.08	36.12%
Tara Chand Infralogistic Solutions Limited	2,540.49	2.00	3.15	15.40	23.88	22.99%

Key Strategies for Aggcon Equipments International Limited

Continue to Focus on Building Current Fleet with Quick Equipment Turnover

We follow a structured approach to equipment lifecycle management to ensure our fleet remains modern, efficient, and aligned with operational demands. Our strategy involves acquiring new machinery, using it for a defined period of eight to ten years, and then replacing it with upgraded models. This proactive replacement cycle minimises risks of obsolescence and excessive maintenance while ensuring efficiency. We also monitor emerging technologies and market trends to integrate innovations that improve productivity and align with evolving industry standards. Regular fleet upgrades strengthen long-term customer relationships and improve project execution. Furthermore, we are committed to investing ₹840.35 million from the Net Proceeds of this Offer towards capital expenditure for new equipment purchases.

Expand Geographical Footprint and Sectoral Presence

Our expansion strategy focuses on entering high-growth regions, strengthening existing footholds, and forming partnerships with regional players and government agencies. We aim to diversify beyond traditional infrastructure projects into renewable energy, warehousing, and smart cities, supported by tailored leasing solutions and innovative models. International expansion is also a priority, leveraging relationships with global suppliers and customers. Participation in global conventions enhances credibility and opens new opportunities abroad. Regional diversification will improve business resilience and mitigate risks from economic fluctuations.

Strengthen Supplier and Customer Relationships

We recognise the importance of reliable supplier and customer relationships for long-term growth. With suppliers, we plan to establish strategic alliances, diversify sourcing, and implement performance-based metrics to improve quality and timeliness. On the customer side, we aim to strengthen service frameworks by introducing dedicated account managers, feedback mechanisms, and flexible leasing solutions. Technology-driven CRM systems will help manage contracts, track equipment, and resolve issues more efficiently, supported by predictive analytics for demand planning. A user-friendly digital platform will further enhance customer experience, satisfaction, and retention.

Use of Technology for Fleet Optimisation and Customer Engagement

We intend to leverage advanced technologies to optimise fleet utilisation through predictive maintenance, reducing downtime and enhancing performance. Our focus includes developing a digital application to simplify leasing, provide real-time updates, and improve customer interactions. A seamless digital platform will enable clients to manage contracts and access support services with ease. These initiatives will drive operational excellence, increase customer satisfaction, and give us a competitive edge in the infrastructure equipment rental industry.