With six HAM projects, the company is envisaging huge procurement of cement, steel and construction equipment.
MEP Infrastructure Developers achieved a turnover of over Rs 1,800 crore in terms of its total top-line in FY2016-17.
And, Jayant D Mhaiskar, Vice Chairman & Managing Director, MEP Infrastructure Developers, expects it to cross the Rs 2,000-crore mark this year. We envisage a minimum 10-15 per cent growth over the next three to four years, he adds. The company forayed into the HAM space in road construction in 2016 and has a total of six HAM projects in its kitty valued at Rs 3,836.99 crore covering 1,059.97 lane km. Besides, it has entered into a service level agreement (SLA) with Mumbai-Nashik Expressway for rendering services, including operating and managing two toll plazas v Arjunali and Ghoti v and allied facilities for three years. As Mhaiskar says, Our project portfolio now comprises 14 projects: Six HAM (1,059.97 lane km), one BOT (42 lane km with five toll plazas), three OMT (1361.32 lane km under maintenance with nine toll plazas), and four toll collection projects (five toll plazas in five states).
From its six HAM projects, MEP has received the appointed dates for four projects where construction has already commenced; the appointed dates for the other two are expected in the first week of February. We have achieved the first milestone for three of the four projects with appointed dates, where 20 per cent of work has already been completed, shares Mhaiskar. The milestone for the fourth project, which is already under construction, will be around mid-February.
For building the six HAM projects, the company envisages a requirement of around 7-7.5 lakh tonne of cement, 28,000-30,000 tonne of steel and 12 lakh kilo litre of diesel. As far as material is concerned, it is linked to actual construction activity involved, says Mhaiskar. Materials are procured based on what is available and the project requirement. In terms of equipment, he adds, Pavers, RMC plants, tippers, crushers, rollers are something we would need, of which 80-90 per cent is already procured, and the balance will be procured as and when required. According to him, the procurement of equipment is more a one-time activity required initially to begin with; over time, one keeps adding as and when the company has multiple projects.
As for subcontracting, the company has taken two different approaches for EPC construction work: Undertaking maximum work in-house, and giving out a part of it while undertaking the top layers on its own. For this, what's important is the quality and timeliness of project completion, which we will strictly adhere to. So, we are particular about what we procure and from where. For instance, we have been procuring state-of-the-art, 9-m concrete pavers from Wirtgen, Germany. And, specifically for crushers, RMC batching plants, graders and tippers, we have been selective in what we buy.