In a recent discussion at the BSE, JIKA explained how its product-driven EPC model—integrating design, manufacturing and deployment—has enabled it to build a strong niche in the data centre segment despite high entry barriers. The company highlighted its focus on precision, performance track record and value engineering as key differentiators supporting sustained growth.
Sheryll D’Souza: I’m Sheryll D’Souza, let me introduce myself to all of you and let me ask you one question and that actually popped into my mind the fact that you all have entered an EPC space. Very challenging, very difficult, very competitive but in that you found the niche that is the data centres. If you’re going to help us understand and everyone out here understand exactly what are the gaps that you’d seen at that you felt that you needed to fulfil or fill in and that’s why you chose this segment.
Rushabh Dedhia: Hello, so I’ll tell you something that you know we are not a typical EPC player. We are a product driven EPC where we build, fabricate, design our own products. Though the format of the contracts are EPC because we have an end-to-end compliance requirements of fulfilling the performance requirements claimed by us in the designs but it’s not a typical EPC services.
It’s a product driven approach where we design the products, we fabricate those products in our subsidiary and these are then installed in a very high accuracy environment which is primarily we cannot touch the servers but we cannot leave air gaps. So these kind of accuracies is something that we have developed the niche. So if you look at a global aspects there are a lot of international players who do this.
There were till 2019 the imports were still going on due to COVID. Primarily this opportunity opened up that you know because of our experience in steel fabrication or in terms of on-site direction we could develop JIKA as a separate entity focused purely on creating these solutions for the data centre segment. Of course we are not stuck to data centres.
There are other sectors that we are doing business in because there’s a high rise of demand in data centres in the last four years that I said that we have grown almost 4x or 5x in terms of data centre capacity in the span of last four years. The spike of revenue is primarily in data centres. Right.
Sheryll D’souza: So the fact that the spike of revenue is primarily data centres you are actually a part you are engaged in other segments as well but you can help us understand the fact that you are in data centres which it is growing massively but there would be entry barriers as well right. Isn’t that true or you can correct me if I’m wrong about it but if there are entry barriers could you tell us what is that one edge that your company has and has actually built on over the years.
Rushabh Dedhia: So as I said JIKA is a design, develop, deploy, brand tagline or brand promise.
You know there’s not a single player who has all these three under control and you know being an EPC player or being called an EPC player somebody would not expect manufacturing also to be part of your core competencies or design mostly the EPC contractors do not have a design capability. There are very few EPC players who have a design capability, have a manufacturing capability and then a deployment capability. This is one reason.
Secondly because the products that we deal in or we the products that we provide for are generally less than 1% of the total project cost but we are in the hardcore, the heart of the system, very close to the servers and if our systems fail probably a cloud player can lose billions. So nobody would want to risk that for a 1% cost. That is one reason why performance track record like the previous company has a mode of having a performance track record and experience and now proven track record with about 400 plus megawatts that we have done and about 350 ongoing, 350 megawatts of ongoing.
You know the architects or the consultants generally prefer not to touch much on or you know experiment much on the server space. That is one of the reasons why you know there’s a huge entry barrier. Of course this will eventually be broken by someone but then our value engineering skills will take over at that point of time.
So cost optimisation for the customer, you know higher value addition for internal margins. This is something that eventually will be taken care by value engineering. So because we have immensely strong design capabilities, this helps us keep our gross levels high, our net levels high while being competitive, fitting into the budget of the customer, all this being taken care of.
Sheryll D’Souza: Right, so the fact that big mote that you all have and I think an edge. Let me answer that question on your behalf but you can correct me if I’m wrong. If I’m summarising it right, you believe that your design, your manufacturing and your deployment skills is what will set you apart from even players or competitors which are direct as well as indirect competitors, right?
Rushabh Dedhia: Yeah, I mean you can find a contractor who can instal if you import but import again will bring timeline challenges, customisation challenges.
If you have a consultant who can design things right, probably you will not find a manufacturer who can manufacture it right and then also getting an installer who can instal it right and ultimately who will build the cat is the question. So who will take the onus of doing it right? That is where the entire mote lies.
Sheryll D’Souza: All right then but I really like to wish all three of you all the best and not only just three of you, the entire team at JIKA EPC services as well.
Given the fact that you’re in a niche segment, all the very best for the future and hope you scale new growth levels going ahead.