Parag Shah, Managing Director, Man Infraconstruction Ltd
It’s a first that will always set this company apart – Man Infraconstruction Ltd holds the distinction of executing India’s first premier private port contract. In addition, it has also made its heavy-duty presence felt in the construction of roads, buildings and various industrial segments. Managing Director Parag Shah, looks back at the company’s journey and forward at future strategies. Excerpts...
Starting from scratch
The company was formed in 1964 as PD Constructions under the able leadership of my father Kishore Shah and uncle Prabodh Shah as a partnership firm. It was largely undertaking industrial contracting works at the time. I joined the business in 1999 and Man Infraconstruction Ltd was incorporated in 2002. Our company achieved a major breakthrough when we were awarded India’s first premier private port contract in 1997 by Nhava Sheva International Container Terminal at Jawaharlal Nehru Port Terminal, Navi Mumbai. The project was completed well ahead of schedule adhering to best quality service. We have executed three more projects in the same sphere since, including two container terminals; one for GTI (a JV of AP Moller Terminal and Container Corporation of India Ltd) and the other, the International Container Transhipment Terminal for DP World at Vallarpadam, Kerala. Apart from infrastructural projects like ports and container freight stations where we have emerged as leaders, Man Infra has also developed residential projects, commercial and industrial work spaces, educational and religious institutions and hotels and clubs for the hospitality industry. We are nearing completion of work for three towers of 55 storeys, which as of now is one of the tallest towers in the western suburbs of Mumbai. We aim to achieve a revenue growth of 30-35 per cent in FY11. We have already clocked a turnover of Rs 298 crore in the first half of FY11.
We are heavily operational in residential and commercial projects. In the residential space, we are executing SRA Township in Mahul, Mumbai, that sprawls across 6.36 million sq ft. We are also developing a mass housing complex consisting of 123 buildings for the Pimpri Chinchwad Municipal Corporation in Pune. We are undertaking the construction of civil structural works for two towers of 79 floors for Neelkamal Realtors Tower in Mumbai spread over 4.37 million sq ft. Construction for a commercial complex for Adani Developers as well as a school building, including substructure and superstructure over 0.17 million sq ft for DBS Realty is on in full swing. We are also executing a few port and road projects at the moment. Among the road projects, we are constructing the BRTS Corridor (32 km) of PCMC at Pune for Thakur Infraprojects Pvt Ltd. We are also a part of an interesting port project involving reclamation, soil consolidation, paving and operational services at ICCT, Kochi, for Simplex. This project is almost on the verge of completion.
In our business, quality of construction and timely delivery are critical. We have consistently invested in enhancing our quality control systems and technology to enable us to deliver the desired results in the desired time frame. We own all our equipment and subcontracting is limited only to specialised items, which allows close monitoring of the projects. We are a debt-free company and efficient capital management has enabled us to consistently have a positive operating cash flow. The company has maintained good and long-term relations with clients. We have a zero track record of litigation with clients. The company has not paid any liquidated damages in the history of its operations. In addition, we are an OSHAS (ISO 18001) certified company. We undertake safety programmes for employees and labourers working on site on a timely basis.
So far, we have worked only in India and there are enough opportunities to be tapped in the country itself. As the size of the company grows, and as and when we come across any lucrative opportunity, we will look to expand ourselves internationally as well.
We have acquired state-of-the-art formwork technology that ensures speedier and more efficient construction. We are among the largest users of Mivan technology in India. Besides completing work in a shorter time frame compared to conventional technology, this ensures a very strong, accurate and high quality of finished concrete surface.
The green imperative
The concept of environment-friendly buildings, or green buildings as they are popularly known, is catching on in India. A green building essentially uses better design and construction material to minimise consumption of power and water within the building. Developers are looking at green buildings to do their bit for the environment. We have constructed a 150-bed hospital for Kohinoor Group which is a Platinum-rated LEED certified green building project. We are also an ISO 14001 environmental management certified company.
The construction industry has a high growth potential because the Indian government is strongly supporting private construction companies to undertake and execute large infrastructure projects. A number of initiatives have been taken to accelerate the pace of investment in the infrastructure sector. Our company is uniquely positioned to be a key beneficiary of this momentum. We believe in having a quality order book from a reputed client base. The focus is to increase profits in tandem with a growth in turnover. As part of the growth strategy, the company intends to invest Rs 120 crore towards capital expenditure over the next two years. We have received a LOI of a PPP project in Pune and we are also L1 in a BOT road project, which will mark our entry into a new segment. With a unique business model, execution capabilities, excellent track record, client support, experienced management team and an employee base of over 1,100, we aim to grow at a healthy pace in the years ahead. A strong balance sheet with a liquidity of about Rs 300 crore and net worth of Rs 500 crore, coupled with almost zero debt, gives us confidence going forward.