Cover Story

Most Admired Companies | Jaiprakash Associates

August 2014
Jaypee Group was recently in the news as Abu Dhabi National Energy Company (TAQA) withdrew from the Rs 9,689-crore (enterprise value) deal signed on March 1, 2014 to acquire the former's two hydel power projects in Himachal Pradesh. After this Jaypee Group clarified that it would not affect the Group's resolve to reduce debt and unlock stakeholders´ value.

The Group has been working on a plan of debt reduction across all its business sectors owing to the slump in the economy over the past three years that rocked the industry, with maximum impact on infra companies. In line with this, JAL has recently raised $250 million successfully by qualified institutional placement (QIP). ¨We have taken divestment as part of our objectives to reduce debt and our resolve to work towards the goal remains as steadfast as ever,¨ says Manoj Gaur, Executive Chairman, Jaypee Group. He adds that the proceeds will be used judiciously to pare down debt. On capex plans, he acknowledges that for the past two years, the company has not undertaken any capex and believes there is no immediate need to do so. The Group´s focus remains strong to improve operational efficiency, enlarge its order book in engineering and construction, engage in third-party contracts, and keep taking measures to bring its debt to a level of Rs 45,000 crore by March 2015 from Rs 66,000 crore as of June 30, 2014.

The flagship company of the Jaypee Group - a Rs 20,000 crore diversified infrastructural industrial conglomerate in India - Jaiprakash Associates Ltd (JAL) is a leader in the construction of river valley and hydropower projects on turnkey basis for over four decades. In fact, JAL has participated in the development of 27 per cent of India´s installed hydropower capacity. Beginning as a civil engineering contractor, the Jaypee Group today has business interests in engineering and construction, cement, power, real estate and expressways, to name a few.

Engineering and construction
The engineering and construction wing of the Group is an acknowledged leader in the construction of multipurpose river valley and hydropower projects. It has the unique distinction of having simultaneously executed 13 hydropower projects spread across six states and neighbouring country Bhutan to generate 10,290 mw of power.

The in-house design and consultancy company, Jaypee Infra Ventures (JIV), gives JAL a competitive edge over its rivals and has been awarded CT1 grade by ICRA with CIDC (The Construction Industry Development Council). This is the highest rating assigned to consultants in the field of engineering.

Real estate
The Group is a pioneer in the development of India´s first golf-centric real estate. Jaypee Greens, a world-class, fully integrated complex, features an 18-hole Greg Norman golf course. Stretching over 452 acre, it also includes residences, commercial spaces, corporate park, entertainment and nature in abundance.

Expressways
The Group has entered into the construction of expressways with the Yamuna Expressway project - a 165-km, access-controlled, six-lane super expressway along the Yamuna river connecting Noida and Agra on build-own-transfer (BOT) basis. Moreover, the Group has commissioned the first RIFD technology-based electronic toll collection plaza and four-lane Zirakpur-Parwanoo section of NH-5, the Himalayan Expressway, from 39.96 km to 67.55 km in the states of Punjab, Haryana and Himachal Pradesh. Indeed, transforming challenges into opportunities has been the hallmark of the Jaypee Group since inception.

  • Fact Sheet:
  • Year of establishment: 1979
  • Top management: Manoj Gaur, Executive Chairman; Sunil Kumar Sharma, Executive Vice Chairman; SK Jain, Vice Chairman; Sunny Gaur, Managing Director (Cement); Pankaj Gaur, Joint Managing Director (Construction); Ranvijay Singh, Whole-Time Director; Shiva Dixit, Whole-Time Director; Rahul Kumar, Whole-Time Director and CFO
  • Turnover for 2012-13: Rs 13,514.41 crore
  • Turnover for 2013-14: Rs 13,327.02 crore

Major projects undertaken: 

  • Largest concrete dam in India: 1,450 MW Sardar Sarovar Dam (Main dam and power house)
  • Largest rockfill dam in Asia: 1,000 MW Tehri (Rockfill dam and spillways)
  • Largest underground power house in India: 1,500 MW Nathpa Jhakri (Powerhouse and penstocks)
  • Second largest surface powerhouse in India: 1,000 MW Indira Sagar (Dam and powerhouse)

Range of projects handled: Jaypee Group undertakes projects involving Large quantities of rock excavation (both surface and underground), controlled earth/rock fill, concrete manufacture and placement (including chilling), fabrication and erection of penstock liners, hydro-mechanical equipment procurement and erection, steel structures, expressway construction, real estate development

Accolades and awards received (2013-14): 

  • JAL has received the award for the Second Fastest Growing Construction Company (Large Category) at the 11th Annual Construction World Global Awards 2013.

Key achievements: 

  • Only engineering and construction company in India with the capacity to execute EPC contracts on its own strength from concept to completion.
  • Has won three out of the five EPC contracts awarded in the last 20 years. The Group is the largest private sector hydro power producer with an installed capacity of 1,700 MW.
  • Sardar Sarovar Dam being executed by the group is the third largest in the world for volume of chilled concrete to be placed - nearly 7 million cu m.
  • Tehri Dam is the third tallest rockfill dam in the world involving placement of over 25 million cu m of all types of fill material.
  • Baglihar Hydroelectric project involved construction of 30-km of project road along with three bridges.
  • Brahmaputra Guide Bund completed in a record time of seven months.
  • Baspa-II and Chamera-II projects involved continuous concrete shuttering for tunnel lining, a first time in the country.
  • Teesta V project has been provided with jet grouting curtain, which is being provided below the coffer dams for the first time in India.
  • Alimineti Madhva Reddy irrigation project is the longest underground face to face tunnel in the world.