Why Construction & Infrastructure can sometimes be misnomers

06 Jul 2023 CW Team

Pratap Padode, Founder, FIRST Construction Council highlights that there is a thin line between lack of understanding and misrepresentation

Construction, building, infrastructure, and real estate are often used interchangeably, sometimes incorrectly. Upon joining our organization, the new joinees are given a brief orientation, personally delivered by myself, addressing the distinctions.

To illustrate, consider the recently announced initial public offering (IPO) by PKH Ventures, aiming to raise approximately Rs 379 crores (around $47 million) in funds. Out of this total, two-thirds will be allocated to the company itself, while the remaining one-third, approximately Rs 125 crores, will be the promoter's personal bounty as he is selling his personal equity in the company. Within the Rs 250 crores received by the company, half, amounting to Rs 124 crores, will be invested in a hydro power project, in which the promoters have zero experience. The other half will be divided, with Rs 80 crores dedicated to working capital by transferring it to a subsidiary of the company, and Rs 40 crores designated for acquisitions. Thus, PKH Ventures is reinvesting the proceeds into unrelated ventures. The IPO is based upon past performance which reported a topline of Rs 200 crores for FY 2022, accompanied by a profit of Rs 40 crores. It is worth noting that PKH Ventures also generates revenue from a small hospitality business, while its subsidiary specializes in building projects.

Returning to the lesson at hand, it is evident that PKH Ventures operates primarily as a real estate developer, with its subsidiary specializing in the same field. Construction activities, on the other hand, may be carried out by building contractors and specialist contractors. Although the company's core competency lies in real estate development, it is clearly diversifying into unrelated sectors.

As per latest reports the promoters have decided to withdraw the proposed IPO. Thankfully good sense has prevailed.

Pratap Padode, Founder, FIRST Construction Council highlights that there is a thin line between lack of understanding and misrepresentationConstruction, building, infrastructure, and real estate are often used interchangeably, sometimes incorrectly. Upon joining our organization, the new joinees are given a brief orientation, personally delivered by myself, addressing the distinctions. To illustrate, consider the recently announced initial public offering (IPO) by PKH Ventures, aiming to raise approximately Rs 379 crores (around $47 million) in funds. Out of this total, two-thirds will be allocated to the company itself, while the remaining one-third, approximately Rs 125 crores, will be the promoter's personal bounty as he is selling his personal equity in the company. Within the Rs 250 crores received by the company, half, amounting to Rs 124 crores, will be invested in a hydro power project, in which the promoters have zero experience. The other half will be divided, with Rs 80 crores dedicated to working capital by transferring it to a subsidiary of the company, and Rs 40 crores designated for acquisitions. Thus, PKH Ventures is reinvesting the proceeds into unrelated ventures. The IPO is based upon past performance which reported a topline of Rs 200 crores for FY 2022, accompanied by a profit of Rs 40 crores. It is worth noting that PKH Ventures also generates revenue from a small hospitality business, while its subsidiary specializes in building projects. Returning to the lesson at hand, it is evident that PKH Ventures operates primarily as a real estate developer, with its subsidiary specializing in the same field. Construction activities, on the other hand, may be carried out by building contractors and specialist contractors. Although the company's core competency lies in real estate development, it is clearly diversifying into unrelated sectors. As per latest reports the promoters have decided to withdraw the proposed IPO. Thankfully good sense has prevailed.

Building Material

18 Sep 2025

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Technology

18 Sep 2025

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Infrastructure Urban

18 Sep 2025

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..