KNR Construction - Road Map to Success

K Jalandhar Reddy
Despite a current order book of ₹6,000 crore and major projects on EPC, HAM, metro flyovers, bridges, and waterways, K. Jalandhar Reddy, Executive Director, KNR Construction, is keen to explore newer avenues for growth as the country opens up to development across sectors.

As one of the largest road developers, how are you geared up to meet the higher pace of development of roads and highways as per the government's plans?

The Central Government has announced Bharatmala Pariyojna - a massive pan India scheme to connect all remote areas under the Transportation Grid with an objective of better roads, better connectivity, and better travelling, all of which will augment the employment potential as well.

NHAI and MORTH have awarded 17055 km of Highway Construction in FY2018, which is 7% higher than the previous year. Out of the total cost of the award of ₹1220 billion, 65% account for HAM projects; and EPC and BOT account for 33% and 2%, respectively. Developers and contractors are adopting high-tech equipment to complete projects with precision and as per the scheduled timeline. They are also giving on the job training to their workers for operating and maintaining the equipment.

KNRCL has a wide range of specialized equipment such as compactors, computerized hot mix plants, wet mix plants, excavators of varying capacities, generators, dozers, loaders, graders, cranes, concrete plants, crushers, bitumen and concrete pavers for performing a variety of operations with speed and quality. Our machineries, numbering over 2000 units, are valued at around ₹7,587 million, and we continue to acquire new and more sophisticated machines.

KNR Construction

Despite laid down quality standards for road construction, many newly constructed roads get potholes within one year of their service; what are the reasons for a road's premature failure, and the solution?

If the prescribed quality is maintained and proper care is taken at the time of construction, premature failure of road is rare. Unscheduled digging by other agencies, who may not rectify the dug-up roads with standard materials, is a reason why the roads may develop potholes.

In other cases, the original soil condition that requires special treatment, if not attended to properly, it may also be a cause of a road's failure. Inspection agencies appointed by the departments must come out with the solutions before laying the road in order to preempt any failure.

KNR Construction

What is KNR Construction's road map for growth in the near future, and what is your order book as of today and major projects in hand?

KNRCL order book as of date is approximately ₹6000 cr, and this gives topline visibility for the next 2 to 2.5 years. The company will continue to concentrate on EPC, HAM, special structures such as metro flyovers, bridges, and waterways, including reservoirs.

What is the core strength of KNR Construction?

The policy of the company is that, while tendering, the bottomline should not be sacrificed at any cost. Timely execution of projects saves cost and improves profitability. These work principles have has proved right over the years and strengthened our financial parameters and profitability.

KNR Construction

Any plans for diversification into other areas?

At present, there are a lot of avenues opening up. These include highways, flyovers, waterways, bridges, and railways, etc, which are complex projects requiring new technologies. With the country opening up in all fronts, there are immense possibilities, which we will definitely explore.

NBM&CW July 2018

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