+
We are happy to have avoided HAM projects
Real Estate

We are happy to have avoided HAM projects

              CW Top Challengers 2018-19

Gayatri Projects is one of India’s leading construction and infrastructure companies with interests in EPC, highways and power plants, and active operations in 19 states. Its EPC operations, the mainstay of the company, include roads, bridges, railways, dams, irrigation canals, underground mines, steel plants and power plants. Gayatri has also developed seven highway assets, now held by its associate company, Gayatri Highways, and has co-developed a 2,640-mw thermal power complex with Sembcorp Utilities of Singapore. Established in 1975, the company now has an annual revenue in excess of Rs 35 billion.TV Sandeep Reddy, Managing Director, Gayatri Projects, shares more….

Name one major challenge faced in FY2018-19. How did the company approach the same?  
Today, Gayatri Projects has industry-leading margins in terms of EBITDA and project profitability, but we are still being held back by debt from earlier infrastructure asset investments. We are actively pursuing opportunities to monetise our power investments, as well as to monetise claims we have been awarded from contracts from earlier years. Once we complete these activities and become an asset-light EPC player, we can double down on upcoming opportunities and become the dominant player in highway and irrigation construction.

 What is one decision you consider the biggest contributor to the company’s growth in FY2018-19?
Over the past five years, our single best decision was to go with the cluster-bidding model where we can leverage economies of scale and synergies. In the future, we hope to use this expansion strategy to establish a monopoly across India in key focus areas like highways.At the same time, we are actively leveraging cutting-edge technologies like Internet of Things (IoT) and artificial intelligence (AI) to increase profitability. We’ve looked closely at the systems being used by construction industry leaders across the globe, and are proud to say that our integrated project and equipment management platform is the most advanced in the world.

Name one single factor you avoided that could otherwise have impacted the company’s topline and bottomline.
We continue to maintain our position that we are happy to have avoided HAM projects. A lot of newer players who have not already experienced the difficulties of the asset-heavy model have been gung-ho about HAM projects but I think we’re already seeing evidence of the challenges. We are going to continue focusing on an asset-light EPC strategy.

Going forward, what are your plans for the company’s growth in FY2019-20?
We are taking a three-pronged approach for future growth in the topline and bottomline: Bidding for new highway projects in clusters where we already have synergies and economies of scale Expanding and consolidating our foothold in specialised industries like underground mining and water supply Leveraging technology for improved project execution and equipment utilisation.

Read on the CW Top Challengers selection criteria and methodology at https://www.constructionworld.in/articles/beststories/CW-identifies-the-Top-Challengers-of-FY2019/21687


              CW Top Challengers 2018-19Gayatri Projects is one of India’s leading construction and infrastructure companies with interests in EPC, highways and power plants, and active operations in 19 states. Its EPC operations, the mainstay of the company, include roads, bridges, railways, dams, irrigation canals, underground mines, steel plants and power plants. Gayatri has also developed seven highway assets, now held by its associate company, Gayatri Highways, and has co-developed a 2,640-mw thermal power complex with Sembcorp Utilities of Singapore. Established in 1975, the company now has an annual revenue in excess of Rs 35 billion.TV Sandeep Reddy, Managing Director, Gayatri Projects, shares more…. Name one major challenge faced in FY2018-19. How did the company approach the same?   Today, Gayatri Projects has industry-leading margins in terms of EBITDA and project profitability, but we are still being held back by debt from earlier infrastructure asset investments. We are actively pursuing opportunities to monetise our power investments, as well as to monetise claims we have been awarded from contracts from earlier years. Once we complete these activities and become an asset-light EPC player, we can double down on upcoming opportunities and become the dominant player in highway and irrigation construction. What is one decision you consider the biggest contributor to the company’s growth in FY2018-19? Over the past five years, our single best decision was to go with the cluster-bidding model where we can leverage economies of scale and synergies. In the future, we hope to use this expansion strategy to establish a monopoly across India in key focus areas like highways.At the same time, we are actively leveraging cutting-edge technologies like Internet of Things (IoT) and artificial intelligence (AI) to increase profitability. We’ve looked closely at the systems being used by construction industry leaders across the globe, and are proud to say that our integrated project and equipment management platform is the most advanced in the world.Name one single factor you avoided that could otherwise have impacted the company’s topline and bottomline. We continue to maintain our position that we are happy to have avoided HAM projects. A lot of newer players who have not already experienced the difficulties of the asset-heavy model have been gung-ho about HAM projects but I think we’re already seeing evidence of the challenges. We are going to continue focusing on an asset-light EPC strategy.Going forward, what are your plans for the company’s growth in FY2019-20? We are taking a three-pronged approach for future growth in the topline and bottomline: Bidding for new highway projects in clusters where we already have synergies and economies of scale Expanding and consolidating our foothold in specialised industries like underground mining and water supply Leveraging technology for improved project execution and equipment utilisation.Read on the CW Top Challengers selection criteria and methodology at https://www.constructionworld.in/articles/beststories/CW-identifies-the-Top-Challengers-of-FY2019/21687

Next Story
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

DGTR Proposes Anti-Dumping Duty on Aluminium

The Directorate General of Trade Remedies (DGTR) has proposed imposing an anti-dumping duty of up to Rs.577 per tonne on aluminium frames imported from China, as reported by the Economic Times. This move aims to address concerns about unfair trade practices and protect the domestic aluminium industry from the adverse effects of low-cost imports. The proposed anti-dumping duty comes in response to allegations that Chinese aluminium frames are being sold in the Indian market at prices below fair market value. Such practices are deemed harmful to domestic manufacturers, potentially leading to ma..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Talk to us?