Founded by industrialist Seth Walchand Hirachand in 1926, Hindustan Construction Company (HCC) has constructed a majority of India´s landmark infrastructure projects 25 per cent of our hydel power; over 50 per cent of nuclear power generation capacities; over 3,500 lane km of expressways and highways; over 290 km of complex tunnelling; and more than 350 bridges. Today, HCC is a business group of global scale, developing and building responsible infrastructure in transportation, power and water through next practices.
Major achievements in 2013-14
In the transportation sector, HCC has been a contributor to the success of the J&K Rail Link Project, having completed the 12-km Pir Panjal tunnel. Arun Karambelkar, President and CEO, Hindustan Construction Company Ltd, adds, ¨In the hydro power sector, the company successfully completed the head race tunnel using tunnel boring machine (TBM) in the 3 + 110 mw Kishanganga Hydroelectric Project, which is HCC´s largest hydro power project under execution. This is the first successful TBM operation in the Himalayan region as earlier three attempts by other companies had failed.¨ In the nuclear power segment, HCC had a proud association with Nuclear Power Corporation for the construction of Kudankulam Nuclear Power Project in Tamil Nadu.
During last year´s difficult phase, HCC undertook various initiatives to stay lean and cost-efficient. It also strengthened the inventory management process at each project level to monitor and manage material with emphasis on reducing wastage and minimising non-moving inventories. ¨HCC re-evaluated its project portfolio and consciously made efforts to expedite and close out slow-moving and ?nancially challenging projects,¨ adds Karambelkar. ¨The company also recalibrated its strategy to focus on securing a higher project win rate by rationalising the number of bids as well as the internal processes that accompany bidding.¨
To tide over the liquidity crunch seen for the most part of last year, the company intensified its efforts to settle rightful claims with customers. ¨This expedited liquidation of receivables,¨ shares Karambelkar. ¨At the organisational level, HCC focused on positioning the right people for the right job with a strong emphasis on successful execution. All these efforts paid dividends at the end of the year.¨
HCC has traditionally focused on transportation, power and water supplies. And in the last couple of years, it has also developed a portfolio of industrial construction projects. ¨Given the growing requirements of the market, HCC has extended the scope of its business to include complete EPC services and is constantly working on upgrading its capabilities,¨ says Karambelkar.
Recommendations to the Government
According to Karambelkar, the Government must take up all stalled projects and clear last-mile hurdles. ¨Also, payments held up by PSUs such as National Hydroelectric Power Corporation and National Highways Authority of India should be reviewed, and relief granted to private-sector players. The act of releasing held-up payments would not only send out the right signals for recovery but provide much needed succour in terms of working capital for private players. Besides, important ministries such as power, telecom, transport and environment must review earlier decisions and set an immediate agenda of growth,¨ he concludes.
¨We have extended the scope of our business to include complete EPC services and are constantly working on upgrading our capabilities.¨
- Arun Karambelkar, President and CEO, Hindustan Construction Company Ltd
Year of establishment: 1926
Top management: Ajit Gulabchand, Chairman and Managing Director
Number of employees: 1,800
Turnover for 2012-13: Rs 4,113.5 crore
Turnover for 2013-14: Rs 3,837.3 crore
Latest orderbook: Rs 14,249 crore (as on March 31, 2014)
Biggest project undertaken: Kishanganaga Hydel Power Project, Jammu & Kashmir
Landmark projects completed:
Accolades and awards received (2013-14):