- Jahid Vijapura, Managing Director, GHV Group
Mumbai-based GHV Group has always believed in quality assurances, with the aim to delivering project within set timelines and quality standards. The company was established in Ahmedabad, Gujarat, in 1965, and today, it stands as a gateway for technological excellence in infrastructure. Jahid Vijapura, Managing Director, GHV Group, shares more on the company, its procurement requirements and related investment plans.
How has the change in NHAI awarding projects from BOT to EPC and HAM helped companies? How has it improved profitability for your company?
This has certainly been a helpful move for companies like us. Executing projects under EPC and HAM are beneficial and quick.
And there is no liability where we have to wait for 10 to 15 years.
Tell us about the key strategy applied by the company while bidding for its projects in FY17-18.
In terms of bidding for NHAI projects, there is immense competition in the market.
However, we have slightly changed our strategy where we are selective about our projects. Over the years, GHV has built an image in the market, which has also played a role in being able to bag so many contracts. As a company, we complete projects in time; there has been no issue with funding. All this has helped us bag more contracts.
Please list your recently bagged projects under NHAI. What are the related requirements for these in terms of construction equipment, technologies and materials.
We have orders worth about Rs 60 billion in hand; between 2017-18 and 2018-19, we are going to invest Rs 1 billion to buy equipment. With a number of orders in hand, we have already started purchasing equipment.
We have installed ERP software and the rest of our investments are in machinery.
Are you looking at executing projects on a consortium basis or JV? If so, why?
Apart from one or two projects that we are executing in JV, all our projects are executed independently. What compels us to form JVs is, for example, our JV partner in Kerala may not have a turnover as large as ours. And, many contracts come with a bidding qualification condition that the company should be worth more than Rs 5 billion or Rs 10 billion. So, we bid in our company's name but the JV partner executes all the tasks.
How do you intend to raise funds for these projects?
As an EPC contractor, we based limit, but what we require is non-fund based limit on a long term scale. So, for whatever fund requirements that we may have, it is funded through internal accruals and a strong liquidity position of the company.
Tell us about the company's performance in FY2017-18. Considering the current market and opportunities, what are your expectations for FY 18-19?
Evidently, there is a lot of movement and opportunities in the infrastructure sector in India. However, as a company, we are being extremely selective in terms of the projects we bid for. That said, we are looking at an order book worth Rs 100 billion in the near future with a turnover of Rs 20 billion in FY18-19. In FY17-18, our recorded turnover was Rs 8.57 billion; we are planning to close the books of accounts at Rs 13.50 billion in FY18-19.