Capacit'e On Fast Growth Track

Rahul Katyal
Capacit'e Infraprojects Limited was incorporated in October 2012 and in a short span of two years, it has built an Order – Book exceeding Rs.4000 crore in building construction segment alone, in Mumbai, Gurgaon, and Bengaluru. Mr. Rahul Katyal, Managing Director speaks to Maria R. on the future growth of Capacit'e and the group's initiatives to sustain its public image in the current competitive scenario. Excerpts:

What is the inspiration behind the evolution of Capacit'e Infraprojects Ltd? Would you like to share your experience with our readers about how you elevated the company to its current stature?
Capacit'e is young but the management is well-experienced, driven as it is by the passion to excel. When we founded Capacit'e, it was clear in our mind that the focus of our operations would be in the domain of our core competency i.e. construction of buildings in the private sector. We decided to concentrate in mature and stable geographies namely Mumbai, NCR, and Bengaluru.

We secured our initial orders by making personal commitments, winning the confidence of our clients based on our representations and warranties. It is a matter of great pride that we have been able to book a number of repeat orders in quick time, not anymore on the basis of promises by the promoters but on the strength of our performance on ground.

Realizing the importance of a robust project delivery mechanism, we established systems and practices that complement the human capital, for successful execution. Our Project In-charges are empowered and made responsible for timely completion within budgeted cost, ensuring compliances.

The concentrated focus has enabled us to build the Order Book of over Rs.4000 Cr in less than two years, leading to exponential growth in sales. We are targeting annual revenue in excess of Rs.550 Cr this year and over Rs.1000 Cr in 2016-17.

How has the group been able to sustain its public image delivering assured end-result to the satisfaction of its clients in the present competitive scenario?
We accord top priority to process quality assurance and product quality control. Occupational health, safety and environmental management are built into our operational routine.

We have adopted the lean construction philosophy of delivering the value proposition to a customer at minimum cost, by eliminating waste of resources including waste of idling time and avoiding rework.

We have implemented Buildsmart ERP system that enables efficient operations in quick time at minimum cost.

We have engaged expatriate consultants and expatriate project heads to inculcate world class practices for successfully delivering projects on time, in an efficient manner.

What are the group's important business areas? Please briefly touch upon the functional areas in construction ambit.
We are focussed on the construction of buildings in the private sector domain as of now.

We look forward to securing building construction projects in the public sector besides foraying into construction of urban infrastructure projects, factories, and warehouses.

What about the landmark projects the Group has executed so far and important infra projects in hand?
We are executing the Trump Tower of Mumbai at Lodha Park, the tallest residential composite steel structure in India at the Altamount Road, besides a number of super-highrise buildings.

How do you view the growth in real estate sector in tier II and tier III cities? What are the plans to expand your business in these cities?
We are adopting a wait and watch mode right now, looking forward to increase in momentum spurred by the recent initiatives of the Government of India.

How do you see the Government's decision to ease FDI norms in construction and real estate sectors? What are the other strong steps you think the Government should take for the betterment of the sector?
This will infuse additional capital in the cash-starved system, enabling faster execution of projects, benefitting all stakeholders. Increase in liquidity in the system is essential for growth.

Moreover, faster clearances besides restructuring of the clearances to enable uninterrupted progress of works from excavation stage through completion and handing over are required.

What are your views on the new government's dream of housing for everyone by 2020? Is this daunting task achievable?
This is a commendable target and we have resolved to contribute positively towards this. We are gearing up to meet the opportunities in mass housing by adding the skills required for this purpose. Given the fact that all resources required for this (excluding fuel) are available within the country, the mission to provide housing for all will lead to beneficial growth of all stakeholders, providing millions of jobs.

Trained and semi-skilled manpower is an issue for the builders. What are the ongoing initiatives to raise the skill level of the work force?
We are tying up with skill development centres to develop a strong base of skilled manpower. We have established a dedicated labour resource cell for meeting the requirements of our ongoing projects.

Could you please brief us about the plant and equipment resources of your company to back up its projects implementation?
We have invested only in critical Plant & Machinery such as Tower Cranes, Concrete Boom Placers, Passenger & Material Hoists etc. We have strategically invested a lot in state-of-the-art system formwork including automatic climbing systems / jump forms. We have procured only from top end formwork specialists such as Doka, RMD and Mivan. Our asset base has rapidly swelled over to Rs.100 Cr in no time at all.

How do you visualise the growth of infrastructure and real estate industry in general and your business in particular in the next 2-3 years? What are the new directions that capacite Infra projects are looking towards for future growth?
We find the business outlook exceptionally bright in the coming years, benefitting from the new Government's development initiatives.

We are planning to expand our operations in the Urban Infrastructure segment and in Factories & Warehouses segment, besides looking forward to more business from the public sector in the construction of Buildings.
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