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 | Joint Ventures and Strategic Alliances | | | | We have executed infrastructure projects in the past independently and in joint ventures. Our joint venture partners include M/S BSCPL with whom we have been working for over eight years. Recently we have entered another joint venture with M/S Sukhmani Engineers to address the water sewerage and sanitation segment in the infrastructure space. | | | This has enabled us to obtain larger projects that require resources beyond those that we may have individually, such as financial strength, capital equipment, technical expertise and local content resources. | | | In a project-specific joint venture, each member of the joint venture shares the risks and revenues of the project according to a predetermined agreement. The profits and losses of the joint venture are shared among the members according to a predetermined ratio. The fixed assets that are acquired by the joint venture are generally transferred to the respective joint venture members upon completion of the joint venture project. The construction contracts that the joint ventures enter into, typically impose joint and several liability on the members. Thus, should the other member(s) of our joint ventures default on its or their duties to perform, we would remain liable for the completion of the project. The project-specific joint venture typically terminates at the completion of the defect liability period, at which point the project-specific joint venture liquidates and dissolves. | | |
| Our Strengths | | | | Continuous growth in our bid capacity and pre qualification capability | | | Our business and growth are dependent on our ability to bid for and secure larger and more varied projects. Bidding for infrastructure projects is dependent on various criteria, including, bid capacity and pre qualification capability. We have focused on increasing both these parameters and have continuously increased our bid capacity and the largest order that we can bid for, the same has been illustrated below: | | (Rs. in million) | | July 1, 2002 | 3144 | 798 | | July 1, 2003 | 4746 | 1302 | | July 1, 2004 | 9389 | 2303 | | July 1, 2005 | 10328 | 3296 | | July 1, 2006 | 11872 | 4474 | | July 1, 2007 | 18173 | 4793 | | | |
| Ability to execute projects in difficult operating conditions in a timely manner | | | We have been successfully operating in difficult operating terrains and in adverse weather conditions. These conditions present challenges of trained personnel, timely supply of material, efficient functioning of machinery and security concerns.
Our hands on entrepreneurial management and enterprise of our team ensures that these challenges are met consistently to the satisfaction of our employers. | | |
| Acumen in sourcing and maintaining supply chain for raw material and achieving benefits of backward integration | | | | Our management places emphasis on the sourcing and logistics for raw material such as aggregate, bitumen, etc. Our ability to source key raw materials close to our operating sites has resulted in reducing our transportation costs. Procurement of aggregate from our captive quarries have also enabled an assured supply on a timely basis at reasonable prices. We have also setup mechanical lines for loading and unloading and used railway siding at some of our sites for transportation of material. | | |
| Sustained growth of our Afghanistan operations which has built high levels of credibility regarding our construction expertise | | | | Historically, a portion of our operations and revenues have been from Afghanistan where we have been operating since the year 2003. We have deployed substantial resources in terms of management time, capital equipment, financial resources in this country. Our Afghanistan operations cater to projects that are funded by agencies such as USAID, World Bank, ADB and are executed through international contractors such as Louis Berger Inc. These projects fall within the ambit of "Rebuilding Afghanistan" program which would continue up to FY09. We have been able to execute our projects within our contracted timelines with requisite quality standards and have as a result been able to generate repeat business. We also have an edge over our competitors due to presence of our machinery in Afghanistan which enables quick mobilization and also have good local contacts enabling smooth execution. Our Afghanistan operations also enable us to obtain premium pricing and assured payments. | | |
| Highly qualified management team and experienced employee base | | | | We believe that a well-trained, motivated and satisfied employee base is fundamental to our competitive advantage. We have more than 1100 employees including Engineers, MBAs and CAs. The skill sets of our employees give us the flexibility to adapt to the needs of our clients and the technical requirements of the various projects that we undertake. We are committed to the development of the expertise and know-how of our employees through regular technical seminars and training sessions organized or sponsored by our Company. | | | The promoters have expertise and experience in the infrastructure sector and are actively involved in day to day operations. The experience gathered over the years by our management team enables taking quick decisions thereby ensuring that projects are executed within the contracted timelines. This also enables us to meet required standards of quality and efficiency. | | |
| Ownership of high end equipment | | | | We have ownership of critical high end and modern construction equipment such as crushers, excavators, cranes, batching plants, pavers, etc. Our asset base stands over Rs. 2000 million. Ownership of such high end equipment enables quick mobilization besides ensuring continuous availability of critical equipment. This model of owning equipment gives us a cutting edge over competition. | | |
| Our Strategy | | | | Our business target is to have a balanced portfolio of business with revenue predictability, profitability and quality of contracts as the key determinants. | | | | | |
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