- TV Sandeep Kumar Reddy, Promoter & Managing Director, Gayatri Projects
After carving a niche in the roads, irrigation and industrial sectors, Mumbai-based Gayatri Projects added a new feather to its cap this year by foraying into the fast-growing railway EPC sector. The company, led by TV Sandeep Kumar Reddy, Promoter & Managing Director, bagged a Rs 4,744-crore contract to design and build the Iqbalgarh-Vadodara section of the Western Dedicated Freight Corridor (DFCC), in a consortium with Japan´s Sojitz Corp and L&T. Reddy shares more on the company´s role in this project as well as its other roads and airport projects.
Tell us about the company´s strategy in entering the fast-growing railway EPC sector.
The DFCC project is going to be the biggest infrastructure push by the government after the successful National Highway Development Programme (NHDP). Also, the skill sets involved in building railway lines are similar, since both are linear forms of civil construction. Finally, for India to become a manufacturing power, we need to build more railways, because they are more efficient and cost effective than roads. Keeping all these factors in mind, we think that as a company, we should be well poised for the massive opportunities that will arise in railway EPCs.
Tell us about the DFCC contract bagged in consortium with Japan´s Sojitz Corp and L&T.
In this project, our value of work is around Rs 400 crore. The scope involves earthwork, structures, and basically everything except laying the rails.
How is the work progressing and what execution-related challenges do you expect?
We are still in the design approval stage. Going forward, we do not foresee any execution challenges because of the similarity with our highway projects.
Further, the company is in the process of demerging its eight BOT projects to sell them and focus on the EPC business. How did this decision benefit you this year?
The business model of the standalone company is now going to be only EPC, and we have done a great job in securing many new contracts this year. The demerged company, however, can continue bidding for BOT projects as a concessionaire. By demerging the two entities, we are giving investors more clarity and choice.
Zone 3 of the Navi Mumbai International Airport is being developed by Gayatri Projects...
The scope of our work, which is earthwork and site levelling, is just about to start.
In your opinion, how has the construction and infrastructure industry performed this year? How do you see the year 2017 shaping up for the company?
We are extremely happy with the number of new projects that have come out for bidding, but execution is still lagging as of now. We see 2017 as a good year because all these projects will be in full swing, in addition to the new projects we will be able to secure.