Key highlights

• Veremax is the key vendor of Reliance Jio, managing its critical operations like fiber networks, 4G/5G tower installations and data centers across India.
• Successfully commissioned a 50 MW solar plant in Tamil Nadu
• Veremax reported a strong revenue of INR 620 Cr in FY25.
• Veremax reported a strong profit after tax of INR 61.6 Cr.
• In FY25 Aditya Birla Capital initiated insolvency proceedings against P. Ravi – personal guarantor for Veremax Technologies. As per NCLT disclosure, Veremax defaulted for a loan of over INR 17.38 Cr.

Overview of Veremax

Veremax Technologie is a telecom infrastructure EPC company started in 2009 by a Chennai-based telecom engineer. The company specializes in 4G/5G network deployment, renewable energy infrastructure, data centre and drone technology solutions. The authorized share capital of the company is INR 35 Cr out of which 22.16 Cr is paid up capital as of FY26.

What Does Veremax do

Veremax is a mid-tier infrastructure and engineering firm primarily operating as an EPC contractor. The operational model of the company relies on following pillars:

• Asset foundation, Strategic Capital and Licensing
  Veremax holds the IP-1 (Infrastructure Provider Category -1) and ISP (Internet Service Provider) licenses from Department of Telecommunication of India. This allows the company to lease, build, and maintain telecom assets like towers, network cables and etc.
• Procurement & Technical Design

This is where Veremax procures telecom projects and handles its end-to-end execution till completion. Their operations include:

• • Engineering & Procurement: Involves designing, developing and procuring raw materials, optical fiber cables, active router technology, concrete and steel for cell towers.
  • Construction: Manage heavy field operations, make the project operational and delivers to client such drone assisted site surveys, horizontal drilling for fiber cables, and tower erection.
• Testing & Client Integration

At this stage, completed projects are tested on quality parameters and then passed to clients.
Unlike any other telecom company that focuses on expanding its client portfolio, Veremax derives majority of revenue from contract of Reliance Jio (particularly in Tamil Nadu region), it implies construction schedules and inventory planning align directly with Jio’s network expansion plan. Making its revenue vulnerable.

• Operation & Maintenance (O&M)

Once the infrastructure is deployed and delivered to client, the company pivots to ongoing maintenance model. Where it provides operations and technical support and monitor hardware longevity and implement routine maintenance to avoid network downtime.

How does Veremax makes money?

Veremax is an infrastructure EPC company that is in the business of designing, deploying and maintaining telecom and energy infrastructure on behalf of telecom operators, government agencies and enterprises. The company makes money from multiple streams explained below:

Stream 1 – Telecom Infrastructure EPC

Veremax is does not own towers and manufacture equipment instead it executes telecom turkey projects, make them operational and delivers to clients. Projects include construction of cell sites, tower foundation, electrical works, tower erections, optical fiber cable works and other telecom projects. Telecom operators and large enterprises are some of the key clients.

Revenue under this stream can be milestone-based billing upfront material procurement cost, followed by progress billing and final payment on commissioning. So far, the company has completed projects over 1000.

Stream 2 – Renewable Energy Infrastructure

In addition to core telecom infrastructure EPC, Veremax also provides solar EPC, O&M services, energy storage solution and sustainable green energy infrastructure. Recently the company has completed a 50 MW solar power plant in Tamil Nadu.

Stream 3 – Data Centre Construction and Management

Instead of owning and operating Data Centre, Veremax designs and constructs high performance data centre and secure long-term operations and management contracts creating a predictable source of income. This is a service led model that shields Veremax from high debt and heavy capex cycle associated with being data centre operator. In addition, it enjoys a faster cash flow conversion cycle and healthier ROCE.

Stream 4 – Smart City and Drone Technology

Their Smart City project is currently restricted to early stage “Smart Metering Solutions” and smaller utility led system integration. Drone Technology vertical is not standalone revenue generating segment instead it is used as a value-add technology tool to support their core business.

Competitors

Veremax technologies operate in telecom infrastructure EPC segment – one of India’s highly competitive industries – dominated by large and listed players often put mid-size EPC companies through disproportionate stress.

Primary Listed Competitors in telecom infrastructure EPC:

• HFCL Limited
• Sterlite Technologies
• ITI Limited
• Tejas Networks
• RITES Limited, KEC International

During the 4G and 5G network rollout period - 2020 onwards, several reginal and national EPC contractors competed for the few telco contracts from Reliance, Jio, Bharti Airtel and BSNL. Some of the peer set includes:

• Gemini Communication Limited
• Consolidated Construction Consortium Limited
• GTL Infrastructure Limited
• Sujana Towers Limited
• Synergy Thrislington/Synergy Group

Investor Analysis

Investor Concern: The CIRP Proceeding – What it means for shareholders?

The Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code 2016 is a time bound process initiated by creditor against company that defaulted on loan. Once admitted by NCLT, a Resolution Professional is appointed who takes charge of management from existing leadership. Market value of shares of those company facing CIRP tanks down to zero because during the process liabilities of the company is settled according to waterfall rule – means secured financial creditors are settled first then operational creditors and last comes the shareholders.

However, if we talk about Veremax, the company has defaulted a loan of INR 17.39 Cr as on November 2024. The petition against Veremax is under review and pending adjudication.