Apart from the traditional brick-and-mortar method, the company has been adopting various technologies to ensure quality construction.
Last year, NBCC recorded a turnover of Rs 6,200 crore. (And, I am expecting a 25 per cent increase this financial year, says Dr Anoop Kumar Mittal, Chairman-cum-Managing Director, NBCC (India). In fact, the company is targetting a 30-35 per cent CAGR growth in its top-line in the next three to four years.
At present, NBCC is working on the $1-billion Kidwai Nagar redevelopment project, which is likely to be completed by December 2019. We also recently started the redevelopment of three colonies like Kidwai Nagar in Delhi; one in Nauroji Nagar worth Rs 3,000 crore where work has started, one is Netaji Nagar and the other Sarojini Nagar, where construction is expected to start by the end of March, shares Mittal, adding that these three projects together total to about Rs 25,000 crore. Another ambitious project in Delhi is the redevelopment of Pragati Maidan and the traffic intervention around it, he adds. While the traffic intervention is about Rs 1,000 crore, the project includes a convention and exhibition centre at about Rs 2,500 crore alone v all these projects are expected to be completed in the next two years.
In the irrigation segment, NBCC is undertaking a project in Nagpur for the Maharashtra Government, worth around Rs 7,000 crore.
For the Railways, it is redeveloping 10 stations. This apart, it is also doing works in the Northeast, including roads for different state governments and has
several other projects in the pipeline for both, infrastructure development and re-development.
Today, NBCC has an order book worth around Rs 75,000 crore, which needs to be constructed in the next four to five years, says Dr Mittal. Generally 60-70 per cent of the total project cost is invested in building materials, cost on labour is about 20 per cent of the project cost.Sixty per cent of the company's projects are funded by the government, and the remaining are self-revenue raising projects. For example, in the Kidwai Nagar project, we are selling 10-15 per cent inventory in the market to raise the money, which is then used for the construction of the entire project, he adds.
The company's current and future projects will be technology-driven. Apart from brick-and-mortar technology, it has been adopting various new technologies such as aluminium shuttering or composite steel structures methods. We are using maximum machineries and equipment because there is a dearth of skilled manpower, which affects our quality and workmanship, says Dr Mittal. Hence, these projects will boost equipment manufacturers as well as skilled manpower, opening new avenues for skill development.