Z-Tech India Introduction:

Company was incorporated as a private limited company with the name of “Z-Tech (India) Private Limited” dated November 09, 1994. Company at the Extra Ordinary General Meeting held on November 20, 2023 and the name of our Company changed from “Z-Tech (India) Private Limited” to “Z-Tech (India) Limited”

Overview of Z-Tech India:

company originally designs civil engineering products and services with state-of-the-art specialty in Geo- Technical Specialised Solutions in the field of infrastructure and civil construction projects to India. It includes a range of techniques, methodologies, and technologies aimed at optimizing the performance and stability of structures built on or in the ground. In addition to this, we are actively engaged in the waste management sector, where our focus involves creating theme parks through the utilization of recycled scrap materials. Simultaneously, we are dedicated to implementing innovative waste water management solutions for industrial units, employing the cutting-edge GEIST technology. This dual commitment underscores our holistic approach to sustainable practices, transforming discarded materials into recreational spaces while efficiently managing industrial wastewater through state-of-the-art technology.

MAIN OBJECTS OF Z-Tech India

The object clauses of the Memorandum of Association of our Company enable us to undertake our present activities. The main objects of our Company are:

1. To carry on the business of manufacturers, distributors, traders, buyers, sellers, importers, exporters, processors, fabricators, suppliers, installers and to deal in construction specialty products and equipments such as expansion joints, bridge bearings, crash barriers for bridges, architectural joints, utility railings, Building materials, geotechnical products including woven and non-woven geotextiles, geogrids and geo composites for soil stabilization and reinforcement, erosion control, drainage and water proofing and geomembranes for environmental protection and improvement and measuring/ monitoring equipments.
2. To carry on the business of providing innovative, safe and ecologically friendly engineering solutions which includes designing, supplying and construction of reinforced earth/soil walls and slopes, ground improvement, lining solutions, landslide mitigation, coastal and river protection, slope protection, pavement strengthening, with the aid of geotechnical products including woven and non-woven geotextiles, geogrids and geo composites for soil stabilization and reinforcement, erosion control, drainage and waterproofing , and geomembranes for environmental protection and improvement.

Board of Directors of Z-Tech India

Promoters of Z-Tech India

Mission:

Our mission is to be a catalyst for sustainable positive change in the manner that public administrations and the boards of corporations engage with the environment and the communities in discharge of their respective remits.

Vision:

Our vision is to offer innovative, unique and customised solutions to underpin resilient and environmentally conscious development in the public space and sustainable growth in the private space.

Strategy:

• Expansion of our geographical footprint.
• Focus on building environment friendly and sustainable operations along with growth
• R & D

Industry Outlook

The Indian economy has been remarkably resilient amid a global slowdown, buoyed by solid domestic demand. Major globally renowned rating agencies have also shown confidence in India’s economic strength. While one agency has retained India’s economic growth at 6.7 per cent for FY24, another has raised India’s medium-term potential growth estimate by 70 basis points to 6.2 per cent.

The supply-side economy in FY24 so far vindicates the confidence. In the agriculture sector, rapid progress in the procurement of wheat and rice has ensured a continuous increase in food buffers. Rural demand has sustained sequential momentum in Q2 of FY24 as incomes from food grain production have been stable and inflationary pressures moderate. At the same time, increasing production and expansion in sales have been driving growth in the manufacturing sector. Services activity has also been expanding, driven by favourable demand conditions and a strong influx of new businesses. Despite rising input costs, overall sentiment in the services sector remains upbeat, driven, among others, by an upswing in the tourism and hotel industry as leisure and business travel pick up momentum.

• Up beat agricultural output
• Rural demand strengthening
• Industrial activity on an expansionary path
• Housing demand strengthening
• Largest waste producers worldwide
• Global waste streams
• Fighting the global waste problem

Market size

In Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3 per cent of GDP. As per the Union Budget 2023-24, a capital outlay of Rs. 2.40 lakh crore (US$ 29 billion) has been provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013-14.

TRENDS:

• Increasing Focus over Combination of Conventional and Novel Wastewater Treatments to Transform Market Outlook
• Stringent Regulations on Effluent Treatment to Drive Market Growth
• High Investment Needed for Wastewater Treatment Technologies May Limit Adoption

Challenges

• Issue of Safety- The problem of safety is one of the main obstacles in commercial metal recycling. Managing substantial quantities of metal may be exceedingly hazardous, therefore it’s critical for businesses to implement appropriate safety measures to safeguard both their employees and the environment. Strict safety protocols, such as frequent training and safety audits, are also in place to ensure that staff members are adequately prepared to manage the hazards inherent in this line of work.
• It is projected that an unorganised flow of waste metals and a dearth of collection zones will impede market expansion.
• The main obstacle to market expansion is a rise in import duties on steel.

QUALITATIVE FACTORS of Z-Tech India

• Sustain able Business Model
• Environmentally conscious approach
• Cordial relations with our customers
• Quality Deliverables

Share holding pattern of Z-Tech India

Holding company of Z-Tech India

M/s Terramaya Enterprises Private Limited is the Holding Company of our Company. For Further details regarding our Holding Company, please refer to the chapter titled “Our Holding Company” on page 195 of this Draft Red Herrig Prospectus.

Major share holders

Total Shareholding

Group companies:

1. Tribar Enterprises Private Limited
2. Inaccess Geotechnical Solutions India Private Limited
3. Vera Resources Private Limited
4. Aamya Resources LLP

Business of Z-Tech India 

Verticals of Z-Tech India:

1. Sustainable Theme Park Development
2. Industrial Waste Water Management
3. Geo Technical Specialised Solutions

Sustainable Theme Park Development

includes but not limited to creating beautification artwork and infrastructure, landscape designing, sourcing and execution of waste materials and transforming them into meaningful and attractive show pieces. It involves incorporating environmentally friendly practices and responsible resource management throughout the planning, design, and operational phases of the project. It goes beyond traditional development approaches by prioritizing ecological, social, and economic considerations.

BUSINESS MODELS FOR THE SUSTAINABLE DEVELOPMENT PARK

company work in three different types of model:

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1. Hybrid Annuity Model (HAM): Under this collaborative investment model, our company and the government pool resources to fund the development of the park. Once operational, the generated revenue from ticket sales is shared between our company and the government. This approach ensures a cooperative effort in both financing and benefiting from the park’s development and ongoing success.
2. EPC & ONM: In this model, we refrain from making direct investments. Instead, our role is limited to offering engineering, procurement, and construction services, for which we receive revenue. Additionally, we extend our services to include the operation and management of the parks on behalf of the government earning recurring revenues during the contract period.
3. Public Private Partnership (PPP): In this model, we make investment for development of park and government contribute by way of land and scrap material to be used and enjoy a revenue sharing of approximately 90% from ticket revenue for some years, which will thereafter reduce over the period of time. In addition to this, we also receive additional income by organising events at these parks. This revenue structure is particularly advantageous for metropolitan cities as it draws large crowds to the parks, ensuring a rapid return on our investment and promising substantial profits in the ensuing years.

COMPLETED PROJECTS

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ON GOING PROJECTS:

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Industrial Waste Water Management

involves the systematic treatment and responsible handling of wastewater generated by industrial processes. The goal is to mitigate the environmental impact of potentially harmful substances, promote water conservation, and even extract valuable resources from the wastewater. Under this segment, we have acquired GEIST, a water treatment technology, developing solutions for the recovery of chemicals from industrial waste water streams. It offers Turnkey Solutions for achieving profitable zero liquid discharge (ZLD). This technology is also termed as WOOW (Wealth out of Waste) Technologies.

Geo Technical Specialised Solutions includes but not limited to reinforcement of soil walls and slopes, slope stabilization, retaining structures, ground improvement, riverside erosion control, coastal protection and similar activities. These services are offered including designing, supplying and construction undertaken by the company’s in-house chartered engineers and backed up by a full indemnity supervision team.

Our highly competent team of engineers and trained technicians spearhead the process to timely deliver the solutions at your doorstep. We have a strong, diverse, and dedicated leadership and delivery team that is positioning the firm for growth and for the seamless transition of the next generation of leaders.

GEIST

In 2020, our company acquired the GEIST technology from Earl Exim Private Limited vide an Assignment Agreement dated November 01, 2020.

The GEIST technology comprises of a bouquet of technologies which includes freeze crystallization, calcium magnesium recovery, stable bleaching powder technology, selective extraction and monochloro acetic acid, and caters various industries that excrete the chemical laden water.

1. Freeze Crystallization: It is a process where Anhydrous Sodium Sulphate (AnSS) is extracted from chemical laden water in caustic chlorine industry. Sodium Sulphate is introduced in the caustic chlorine manufacturing process through Sodium Chloride. Barium Chloride is used to remove Sodium Sulphate. Barium Sulphate is generated through this process during precipitation.

GEIST technology selectively recovers Sodium Sulphate from depleted and de-chlorinated brine. It is a standalone system which purifies the brine solution and produces valuable Anhydrous Sodium Sulphate in its purest form. This process works in a continuous mode without addition of any new chemicals. The purified return brine is sent to saturator.

2. Calcium Magnesium Recovery: Sodium Chloride is the main raw material for caustic chlorine production, contains impurities such as calcium and magnesium.

GEIST technology separates calcium and magnesium as value added products such as precipitated/ activated calcium carbonate and magnesium hydroxide. These products are selectively recovered from brine as pure products meeting the desired Indian standards. This technology works continuously leaving a small footprint.

3. Stable Bleaching Powder Technology: Chlorine is generated during the course of manufacturing of caustic soda. Conventional stable bleaching powder technology is labour intensive and work in batch mode. GEIST technology has developed an innovative process for production of High Strength Stable bleaching powder (H- SBP). This process helps in extracting more than 40% available chlorine. The process also recovers the by- product, i.e. Calcium Chloride in pure form thus generating additional revenue. This technique works continuously and is less manpower intensive.

4. Mono chloro Acetic Acid: Caustic Chlorine manufacturers are looking for production of value added products from chlorine. Mono-Chloro Acetic Acid (MCA) is an important chlorine based derivative. GEIST technology has developed an innovative process for production of high purity Monochloro Acetic Acid. The new process is able to give product having more than 99% purity with very low Dichloro Acetic acid. This process works continuously, thus providing consistent performance with better process safety.

Selective Extraction: Selective Extraction technology is used for separation/recovery of organic compounds which are dissolved in water. In this technology, a solvent is brought into counter current contact with the wastewater stream. The choice of solvent is important. The targeted molecule changes phase due to selective solubility. This technology is used for recovery of Carboxylic acid such as Acetic Acid from wastewater streams.

COMPLETED PROJECTS

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ONGOING PROJECTS:

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GEO TECHNICAL SPECIALISED SOLUTIONS

Geotechnical engineering solutions are employed to address challenges related to soil and rock mechanics. Geotechnical engineering focuses on understanding and managing the behavior of the Earth’s materials, such as soil and rock, to support the design and construction of infrastructure projects.

Following are the services falls under this category:

Retaining Wall and Reinforced Soil Structure

Are engaged in the designing supplying and building retaining structures, including modular block reinforced soil systems, concrete panel faced reinforced soil, gabion faced reinforced soil and planted. Grassed reinforced soil slopes. A retaining wall is a structure designed and constructed to hold back or retain soil, rock, or other materials in a sloped or uneven area. They are  commonly  used  in  landscaping,  civil engineering, and construction to create level areas in landscapes that are naturally sloped, and to prevent the erosion and movement of soil. Retaining walls can be constructed using various materials, including concrete, stone, brick, wood, or reinforced soil.

Asphalt Reinforcement

Asphalt reinforcement refers to the process of enhancing the mechanical properties of asphalt pavement, typically to improve its durability, strength, and overall performance. It involves incorporating various materials or techniques into the asphalt mix to mitigate common issues such as cracking, rutting, fatigue, and thermal distress, which can result from traffic loads, environmental factors, and aging.

Coastal and River Protection

The Company is capable of providing solutions for protecting waterfront structures using engineered products and bespoke solutions, specific to a particular project site.

Drainage of Structure

Drainage of a structure refers to the process of managing or controlling the flow of water or other liquids away from the structure in order to prevent water accumulation, seepage, or potential damage. Proper drainage is crucial in various types of structures, including buildings, roads, bridges, and other infrastructure, as it helps to protect the integrity and longevity of the construction.

Basal Reinforcement or Ground Improvement

Basal reinforcement refers to a technique commonly used in the field of geotechnical engineering to enhance the stability of soil or rock structures. This method involves the implementation of various engineering solutions at the base or foundation level of a structure to improve its load-bearing capacity and overall stability.

When the land is reclaimed from the seabed, or the in-situ soil does not fulfil the requirements of bearing capacity, lateral stability and liquefaction potential, the ground improvement techniques with different products offers a qualitative and economical solution.

Erosion Control Or Slope Protection

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Erosion control refers to the practice of preventing or controlling the process of erosion, which is the gradual wearing away of the earth’s surface by natural elements such as water, wind, or other environmental factors. It is a critical aspect of environmental management, particularly in areas where soil degradation and loss can have significant detrimental effects on land quality, agricultural productivity, and overall ecosystem health.

Erosion control methods aim to protect soil from being displaced or washed away, thereby preserving its fertility and structural integrity.

Soil Stabilization

Soil stabilization is a process used in civil engineering and construction to improve the engineering properties of soil, making it more stable, durable, and better suited for construction purposes. This technique is commonly employed in situations where the natural soil conditions are not ideal for supporting the planned structures or where soil erosion and other environmental factors pose risks to the stability of the construction site.

Landslide Mitigation

In order to mitigate the landslide, it requires in-depth knowledge of multi-disciplinary fields. We have a team of experienced geotechnical designers and geologist who provide support for identification of landslide, designing, execution and monitoring.

COMPLETED PROJECTS

Ongoing projects

Product wise break-up:

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The geographical wise revenue breakup of the Company as follows:

REGION-WISE REVENUE BREAKUP ON THE BASIS OF CONSOLIDATED FINANCIAL STATEMENTS

Patents

Customer segment:

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TOP TEN CUSTOMERS

For Financial Year 2023-2024 (Upto 30^th September 2023)

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TOP TEN SUPPLIERS

For Financial Year 2023-2024(Upto 30^th September 2023)

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Customers concentration

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Clients

Bhartia Infra Projects Limited	Dilip Buildcon Limited	GMR Infra Limited
Punj Llyod Limited	NCC Limited	Mep Infrastrastructure DevelopersLimited
Gammon Engineers & ContractorsPvt. Ltd.	IRCON International Limited	Hindustan Construction Co. Ltd.
EKK Infrastructure Limited	Madhucon Sugar and Power Industries Limited	GVR Infra Projects Limited

Comparison with industry peers

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Comparison of KPI with listed industry peers

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Competitive strength

• Experienced and Qualified management team
• Well organized organization structure
• Efficient business model
• Strong execution capabilities with industry experience.
• Quality Assurance and Standards

Road map for future

• India must enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion. India’s population growth and economic development requires improved transport infrastructure, including through investments in roads, railways, and aviation, shipping and inland waterways.
• The government has also suggested an investment of $750 billion to strengthen railway infrastructure and envisioned the Maritime India Vision 2030 which estimates massive investments in world-class infrastructure development at Indian ports.
• 220 destinations (airports/heliports/water aerodromes) under UDAN are targeted to be completed by 2026 with 1000 routes to provide air connectivity to unconnected destinations in India.
• 102 critical projects under the Gati Shakti masterplan worth $7.67 billion are to be completed by 2024, making 2023 a critical year for effective execution and celerity of completion.
• India’s Infrastructure forms an integral part of the country’s economic ecosystem. There has been a significant shift in the industry that is leading to the development of world-class facilities across the country in the areas of roads, waterways, railways, airports, and ports, among others. The country-wide smart cities programmes have proven to be industry game-changers. Given its critical role in the growth of the nation, the infrastructure sector has experienced a tremendous boom because of India’s necessity and desire for rapid development. The expansion has been aided by urbanisation and an increase in foreign investment in the sector.
•  The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from 2018-30. India’s GDP is expected to grow by 8% over the next three fiscal years, one of the quickest rates among major, developing economies, according to S&P Global Ratings. India and Japan have joined hands for infrastructure development in India’s Northeast states and are also setting up an India-Japan Coordination Forum for development of Northeast to undertake strategic infrastructure projects for the region.
• India being a developing nation is set to take full advantage of the opportunity for the expansion of the infrastructure sector, and it is reasonable to conclude that India’s infrastructure has a bright future ahead of it.

Financials:

Key Financial Ratios

Balance Sheet

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Profit & Loss

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Cash Flow

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Share Capitalization

SWOT

1. Strengths:
   • Sustainable Theme Park Development: Z-Tech India is involved in the design, development, and operations of theme-based city parks. This unique business segment could provide a competitive advantage.
   • Highly Competent Team: The company is driven by a team of highly competent engineers and trained technicians, ensuring timely delivery of solutions.
   • Geo-Technical Specialized Solutions: Z-Tech India specializes in geo-technical solutions, which can be a strength in the market.
2. Weaknesses:
   • Unfortunately, I couldn’t find specific weaknesses for Z-Tech India Limited in the available data.
3. Opportunities:
   • Advancements in Technology: Adopting and integrating newer technologies like autonomous driving features, connected vehicles, and advanced infotainment systems can offer a competitive edge.
   • Market Expansion: Exploring new markets or diversifying their offerings could open up growth opportunities.
4. Threats:
   • Market Competition: The company operates in a competitive market, and staying ahead of competitors is crucial.
   • Economic Factors: Economic fluctuations, inflation, and currency exchange rates can impact the business.
   • Regulatory Changes: Changes in regulations or policies can pose threats.

IPO details

Issue Details

Why need funds

 intend to utilize the proceeds of the Fresh Issue, in the manner set forth below:

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Risk factors 

• Operating in three distinct segments that lacks connections poses a significant risk to our business
• Present promoters of the Company are first generation entrepreneur.
• Derive a substantial portion of our revenue from our newly introduced business Sustainable theme park as compared to Geo technical specialized solutions and WaterWaste management. Our dependency on sustainable theme park can have a material adverse effect on our business, financial condition, results of operations and cash flows
• Promoter or holding company has incurred losses in the past and may incur losses in the future also.
• Have had negative cash flows in the past and may continue to have negative cash flows in the future.
• business is subject to seasonal fluctuations that could result in delays or disruptions to our operations during the critical periods of our projects and cause severe damages to our premises and equipment’s
• The mismatch between the water samples and actual water may cause significant financial loss and cause harm to integrity and viability of our industrial setups
• Changes in technology may render our current technologies obsolete or require us to make substantial investments.
• Majority of our state wise revenues from operations for the last 3 years is majorly derived from Delhi. Any adverse developments affecting our operations in this state could have an adverse impact on our revenue and results of operations.

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Litigation involved

Refer DRHP page numbers 286-294

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