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 Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?