Infra.Market, a pioneering platform in the building materials sector, is positioning itself to collaborate with mine owners to source essential materials directly. This strategic move aims to enhance their supply chain by securing aggregates, such as stone chips, which play a critical role in concrete production. Aditya Sharda, co-founder of Infra.Market, emphasized that this initiative is a significant step towards backward integration to ensure a steady supply of raw materials.
Expanding Production Footprint
With a robust network of over 230 concrete plants, about half of which are company-owned, Infra.Market has ambitious plans for the future. The company envisions achieving a balanced portfolio of owned and leased plants, further solidifying its presence in the market.
- Current Plant Ownership: 50% owned by Infra.Market
- Future Goal: Equal number of owned and leased plants
Infra.Market is also exploring opportunities in home furnishings by either acquiring factories or partnering with existing manufacturers. The goal is to create a comprehensive one-stop-shop for all construction needs, expanding its brand portfolio with names like Avas for home appliances and Shalimar Paints.
Financial Growth and IPO Aspirations
Founded in 2016 by Souvik Sengupta and Aditya Sharda, Infra.Market provides a wide range of building materials, including concrete, steel, and electrical appliances, catering to real estate developers and large-scale infrastructure projects. Recently, the company announced plans to raise $500 million (approx. ₹4,300 crore) through an initial public offering (IPO), aimed at providing a return to its investors. While Sharda refrained from discussing specific IPO timelines, sources indicate that draft papers could be filed within the next few months.
Earlier this year, Infra.Market successfully raised ₹1,050 crore in a pre-IPO funding round, attracting investments from notable backers like Tiger Global and Nikhil Kamath, which pushed its valuation to an impressive ₹24,147 crore.
- Target Revenue for FY25: ₹18,000 crore
- Projected Growth Rate: 20%
Shifting Focus to B2C Market
Sharda revealed the company’s ambition to grow its B2C business segment from 25% to 35%. Currently, the B2B segment dominates with a 75% share. He noted, “Building a strong B2C brand can significantly boost demand for our B2B operations.”
In terms of margins, private label brands generate a gross margin of 16-18%, while distribution brands offer lower margins of 6-7%. On a broader scale, B2B operations yield a gross margin of 8-10%, whereas B2C channels present a more lucrative margin ranging from 18-22%.
Conclusion
Infra.Market is on a promising trajectory, leveraging strategic partnerships and diversifying its product offerings to meet the evolving demands of the construction industry. As it gears up for its IPO and aims for significant growth in both B2B and B2C sectors, the company’s innovative approach positions it well for future success in the competitive building materials market.
