Infra development is essential to sustain economic growth
Government’s determination to bridge infrastructure deficit provides opportunity to financial institutions and infrastructure companies to participate in the National Highways Development Project. – LALITHA RAO
With India planning huge investment in infrastructure development, which sectors are likely to witness maximum activity in this decade?
Infrastructure development is today recognised as essential to sustain India’s economic growth. The Indian road network is today one of the largest road networks in the world with a total network of more than 3.3 million km. Road development is being accorded a high priority by all stakeholders due to its reach and vast network. It is seen as one of the important initiatives to boost the country’s economy. KMC is happy to be one of the largest players in this important industry. Others like power, railways, non-renewable source management and ports too are growing at a phenomenal pace.
What has been the impact of global infrastructure developers entering India?
The government’s determination to bridge the infrastructure deficit provides an immense opportunity to international financial institutions and infrastructure companies to participate in the National Highways Development Project. You would be hearing a lot of PPP model with, global companies also being a partner to help push the aggressive growth targets the
industry has envisioned to achieve. As already shared our strategic relationship with 3i is one of such stories.
How does KMC Constructions plan to leverage opportunities in the road sector?
Yes, a vision of such scale is important knowing the country’s roadway being one of the largest road networks in the world. The other initiatives from the government like raising cap on foreign institutional investor investment in government
and corporate bonds, and also the policy of government to allow FIIs to invest additional resources in bonds issued by firms engaged in this crucial infrastructure sector, are right moves towards achieving the same.
As you would be aware, we have just received a funding of `500 crore from 3i Group plc, Canada. We see 3i as a strong partner who understands the local infrastructure space and the roads sector and this also offers us a wide global network of contacts and experience.
The railway budget has emphasised on infrastructure upgraupgradation. Are there plans to grab opportunities in this sector?
Yes, our pursuit and focus to be one of top infrastructure companies operating in Indian space in next few years has pushed us for an allround value creation for investors and partners alike. Our core experience adds merit to our plans to
invest into niche sectors like power, railways, non-renewable sources and transportation verticals.
How is shortage of skilled and trained manpower affecting infrastructure companies?
The order book has been encouraging for us. The industry does understand the challenges in sourcing skilled labour. We also foresee some concerns on availability of manpower in niche areas of infrastructure space. However, we have initiated
some out of box approach like providing training and skill updation to prospects from rural India in this crucial sector through one of our divisions and in turn create a pool of professionals with hands on experience. I am positive of our confidence, like other major core infrastructure players across this vibrant sector in handling the skilled manpower concerns.
What are KMC Construction’s long-term plans?
Being one of the largest operators in the premium infrastructure space, we are looking forward to consolidate our position
in this important sector. We plan to integrate our operations further through real-time investment on advanced IT services.
We are hopeful that our investments in cutting-edge technologies into our planning, design and day to day operations would significantly help improve our capability to deliver unique offerings while reducing lead time along with being environment conscious towards project completion. We are looking forward to increasing our presence in critical niche areas like power, railways and non-renewable energy space apart from roads and structures. KMC Constructions has successfully completed more than 20 major projects in the last decade.
Can you tell us about this achievement?
To give a brief about us, KMC was established in 1970, when my father, Mr. M. Raja Mohan Reddy, started a partnership
firm ‘Krishna Mohan Constructions’. Being a technocrat with immense focus on quality systems, the company under his
able leadership has to date executed more than 100 projects related to construction of state and national highways.
Krishna Mohan Constructions’ became a private limited company in 1993 and in 1994 got established into a public limited company known today as KMC Constructions Ltd. Today KMC boasts an outstanding track record and is recognised as one
of India’s foremost players operating in premium infrastructure space. KMC has executed as on date some of the largest and most complex EPC projects in the country.