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Restricted launches will hurt EPC real estate players: CRISIL SME Tracker

Competition from large players, exposure to business cycles, and high working-capital intensity are key risks in the EPC segment

real estate, architect, realty, construction, sales, people, flats, buildings, concrete, vendors, developers, builders
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The first half of FY21 saw developers deferring new launches and focusing instead on completion, given customers’ preference for “ready to move in” units

Business Standard
The ongoing liquidity crisis in the real estate industry has hurt construction activities badly, directly impacting engineering, procurement and construction (EPC) players.
 
Competition from large players, exposure to business cycles, and high working-capital intensity are key risks in the EPC segment, which is highly fragmented, with small and medium enterprises (SMEs) accounting for three-fourths of the market.
 
The first half of FY21 saw developers deferring new launches and focusing instead on completion, given customers’ preference for “ready to move in” units.
 
This is estimated to have slashed the order book of EPC players by 70-90 per cent in H1, FY21.

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First Published: Dec 21 2020 | 6:46 PM IST

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