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On Contract
“The sky’s the limit!”
Nalin Gupta, Director, J Kumar Infraprojects Ltd, shares
his outlook on business.
This is a textbook study on how successful businesses are
grown. From a modest beginning, Mumbai-based J Kumar Infraprojects
Ltd (JKIL), which was established in 1980 by Jagdish Kumar
Gupta, its present Chairman and Managing Director, has evolved
into a leading infrastructure development company, particularly
in the transportation sector, and entered the capital market
early this year. Gupta is ably supported by sons Kamal and
Nalin. The numbers say it all: the turnover of JKIL has vaulted
from Rs 35 crore in 2004-05 to Rs 215 crore in 2007-08. The
company’s target this year: Rs 350 crore.
Over the years, this ISO 9001:2000 company has executed a
diverse range of infrastructure projects. Though the company’s
business covers many segments of construction - from residential
and commercial buildings to sports complexes, dams, canals,
aqueducts and foundation piling - its primary focus area has
been transportation engineering, with flyovers, bridges, subways
and roads its forte. JKIL also undertakes designing and construction
of flyovers and bridges to the client’s specified requirements
on a turnkey basis.
Apart from a strong presence in Mumbai, it has projects in
Pune, Aurangabad and the Vidharba region of Maharashtra.
Its clientele includes public-sector entities such as the
Brihanmumbai Municipal Corporation, Public Works Department,
Mumbai Metropolitan Region Development Authority, Maharashtra
State Road Development Corporation Ltd, Mumbai Rail Vikas
Corporation, Airport Authority of India, Bhiwandi Municipal
Corporation and Pimpri Chinchwad Municipal Corporation. However,
the piling work it undertakes all over India is basically
for private-sector giants, including Gammon India, Simplex,
L&T and Afcons.
Nalin Gupta, Director, JKIL, who also heads its Piling Division,
speaks to JANAKI KRISHNAMOORTHI about the company’s
mission, performance, projects and the industry…
Our mission
We want to build strong infrastructure with the latest technology
on par with global standards of excellence.
Where we stand
Whether a company is big, medium or small is a subjective
issue. In front of giants like L&T, Gammon, Hindustan
Construction and Nagarjuna, we may be considered a small player.
But we have a good brand name in transportation engineering.
Everyone knows JKIL can execute any top-grade project in this
area. The fact that two-thirds of the projects in and around
Mumbai today are being constructed by us speaks for itself.
Core business
While our business activities cover a wide area in the infrastructure
industry, our focus has always been on transportation engineering,
from where 80 per cent of the company’s revenue is generated.
We have not only handled diverse projects but many technically
challenging ones. It is a specialised field with very few
good contractors. It has a fantastic future as bridges, flyovers
and roads will always be necessities, like food and clothes!
No new regions can be developed without access roads, bridges,
etc. Even in existing towns and cities, there is ample scope
for growth. For instance, with rapidly increasing population
and traffic in Mumbai there is a need for improvisation. With
expressways, elevated skywalks, elevated bridges, monorails
and sea links, the field is only set to expand.
Formula for success
Quality construction, commitment to perfection, reliability,
competitive pricing and strict adherence to project completion
schedules are the major factors that have helped us reach
where we are today. This has been possible owing to our two
strong in-house resources: manpower and machinery. Our operations
are adeptly supported by well qualified technical engineers
and skilled labourers. We have an edge over others as we own
a large fleet of latest machinery that helps us complete projects
on time. This includes hydraulic piling rigs, RMC plants,
transit mixers, tippers and trucks, excavators, dozers, rock
breakers and various capacity cranes and gantries.
Our USP
We do not subcontract our work. After you reach a certain
size, you may have no option but as of today we do not. This,
apart from retaining profit margins totally, also eliminates
dependency on other agencies and makes timely execution of
work easy, which is our USP. We also design core activities
in the pre-construction stage with the CPM Pert method, which
saves valuable time. There have been delays owing to late
handing over of site or deferred decisions by clients. But
we have never been levied penalty or demurrage because of
delays from our side. On the contrary, JKIL has earned bonus
for completing projects before the scheduled time. We also
excel at executing projects in densely populated and high
traffic intense locations in urban as well as far flung and
undeveloped areas.
Stumbling blocks
To start a business from scratch and build it up naturally
has its own difficulties, but nothing is insurmountable. Till
we became financially strong we did have our share of problems,
more so as we did not wish to work as subcontractors. When
you work as a subcontractor you lose out on profit margins
and also do not get the credit for the work you do and thus
lose out on opportunities to bid for future projects.
Exceptional projects
All our projects, small or big, are special to us and we execute
all of them with equal precision and diligence. But yes, there
have been some outstanding and challenging projects like the
Konkan Bhavan twin flyover at Belapur with pre-stressed concrete
girder and continuous span road overbridge that won second
price in the outstanding bridge awards competition conducted
by Indian Institute of Bridge Engineers in 1999; the pedestrian
subway by box pushing method near Santacruz on Western Express
Highway (WEH) in Mumbai; and the Aurangabad flyover with precast
pre-stressed concrete T girders with cast in situ deck slab
both completed ahead of schedule.
Two projects, however, placed us in the big league. One was
the Bhiwandi flyover, which cost nearly Rs 22 crore, completed
in 2006. It was 1.5 km long with part file and part open foundation
and constructed in the heart of Bhiwandi city, a congested
and utility-prone area. Despite the adverse conditions we
did a good job and on time. During the same period we also
constructed a Rs 18-crore bridge over Mithi River carrying
a B-3 taxi track at Mumbai International Airport. It is a
RCC multi-cellular, box-type superstructure. Our ability to
execute large projects gained recognition after we completed
these two assignments. Immediately thereafter, big orders
began pouring in.
Ongoing projects
Today, we are executing a Rs 112-crore project - a package
of four flyovers - at Sion Hospital, Kings Circle, Tulpule
Chowk and Hindmata Junction in Mumbai. It is a JV with Nagarjuna
Constructions but the entire work will be executed by us.
We have also nearly completed the Rs 100-crore project of
constructing and widening the WEH from Goregaon to Dahisar.
Recently, we bagged a Rs 62-crore order in Pune, a bridge
cum flyover on Mula river, near the existing Holkar bridge
at Khadki, a very critical loop. Right now, we have an order
book of Rs 630 crore, up from Rs 461 crore in November 2007.
The future
We will continue to focus on transportation engineering. There
is ample business within Maharashtra for the future growth
target we have in mind. Even to reach a Rs 1,000-crore turnover,
there is no reason for us to look beyond the state. Piling,
a profitable venture, will also remain as a mainstay. Today,
we are one among the top five piling contractors in India
undertaking assignments across the country for many leading
private-sector companies.
The boom
The infrastructure industry continues to boom. Infrastructure
is an essential component today and even if you wish to, you
cannot stop its growth. And the growth is not localised in
one state or city - it is spread across the country. With
the government and World Bank pumping money into this sector,
infrastructure companies are flooded with orders. The sky’s
the limit now!
Stray concerns
Of course, rising steel and cement prices are critical and
can affect the industry in the long term. I am sure, though,
that the government will take corrective measures to protect
the infrastructure sector. Further, there is a shortage of
good contractors now. Earlier there used to be 15 to 20 bidders
for government tenders. But today, there are hardly three
to five bidders for large projects. Skilled labourers are
also in short supply. Even at the management level, there
is scarcity, particularly for good engineers, accountants
and storekeepers.
Major transportation projects
Project /location Contract value
(in Rs lakh)
Flyover at Bhiwandi city 2,112.00
Bridge over Mithi River carrying B-3 Taxi track at
Mumbai International Airport 1,813.00
Flyover with pedestrian subway, ramps
at Saswadphata Junction, Pune 1,450.00
Flyover at Seven Hills Chowk, Aurangabad 950.00
Vehicular underpass on WEH, Malad, Mumbai 815.00
Rail overbridge at Udaybaug, Pune 754.00
Bandra Terminus Station building, Mumbai 603.00
Pedestrian subway on WEH at Santacruz,
Mumbai 456.73
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