Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals

Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals
Kashyapi Infrastructure Pvt. Ltd. (KIPL) main focus is on Civil Construction, our strength is our highly motivated team of professionals and Engineers. We employ several cost-saving strategies throughout the project lifecycle, working side-by-side with all key stakeholders to reduce costs without sacrificing the goals or the quality of the final product. We are well equipped with latest construction machinery and equipment, says Mr. Kamlesh Kumar Upadhyay, Managing Director, KIPL, in his inteview with S. K. Khanna.

Please introduce Kashyapi Infrastructure Pvt Ltd (KIPL), its presence in infrastructure space, its evolution and progression, its work culture to enable it to come to its present status in infrastructure market.
Kashyapi Infrastructures (P) ltd, established in 2008, is engaged in Civil Construction. We are working mainly for govt. and semi govt. departments. Our contribution to the nation in infrastructure development is by way of constructing residential projects, roads, sewer & water system, electrification work, public utility services and other development work.

As MD of the company, I owe success to my team; we inculcated a culture of responsible work force, and have empowered middle management to take all routine day-to-day decisions without top management involvement. Besides this, we constantly invest in upskilling our resources to maintain our edge in market.

As far as company’s growth is concerned, the government policy has been very conducive to infrastructural development, we can see from merely 3–4% of the GDP, today infrastructure is standing at about 9%. Now the government is hoping to spend about $500 bn on this sector in XI plan as compared to $200 bn in X plan, which is a significant jump but more is in the offing.

We have already seen that due to increased spending on various infrastructure projects, most companies today have an orderbook which is almost three to four times more than the previous years, and same happened with us.

Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals

What are KIPL’s important business areas and its supported strength in terms of quality work attributes, managerial and technical fundamentals? As a professional company, how do you pursue your set business target?
KIPL main focus is on Civil Construction, our strength is our highly motivated team of professionals like Engineers & Managers, Experts from different fields as Advisors & Consulting Associates to take up any construction project and execute every aspect of it with precision and success. We employ several cost-saving strategies throughout the project lifecycle, working side-by-side with all key stakeholders to reduce costs without sacrificing the goals or the quality of the final product. Kashyapi invests in its people to move ahead with pace towards progress in a true professional manner. Our time management and resource optimization techniques help us complete project in minimum possible time.

What are the company’s equipment assets enabling it to handle multiple infra projects? Is the company also involved in the business of equipment rental?
We are well equipped with latest construction machinery and equipment like RMC Plant, Putsmizer Concrete Pump, Mini Mobile Concrete Batching Plant, Total Station, Generator Sets, Transit Mixer, Hot Mix Plant, JCBs, Volvo Compactor, Road Roller, Hoists, Reif. Cutting Machines and other Testing Equipment. As of now company is not involved into equipment rental business.

Some details of company’s completed projects, projects in hand, their nature and clients response to the work quality, timeliness, and overall cost effectiveness that benefits to the clients.

Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals

It would be a long list of completed projects, however, some of our projects are:
  • Construction Of Cricket Stadium, 350 Seater Boys Hostel, Sports Centre, International Centre, Utility Centre, Administrative Building, Animal/Green House, Law Faculty and Faculty Houses in Gautam Budh University, Gr. Noida, a world class university.
  • Construction of Income Tax Office Building at Noida awarded by (NBCC) National Building Construction Corporation Ltd.
  • Construction of Multilevel Parking in Darjeeling.
  • Construction of Residential Houses in various schemes awarded by Gr. Noida Authority, Allahabad Bank, a Nationalized Bank, National Building Construction Corporation Ltd.
  • P/L Storm Water Drainage, Sewerage & Water Supply Network around F-1 Racing Track, Gr. Noida awarded by J.P. Associates Limited.
  • Construction of Shell Roofs, Store Depot and Other Civil Work in Bhuvneshwar awarded by East Coast Railway & Construction of Railway Platforms at Anand Vihar, Delhi and Police Station in New Delhi are in pipeline for acceptance.
  • We have started construction of Multistoried Residential Towers La-Royale at Indirapuram, Ghaziabad & Noida Extension.
We are fully aware of client’s preferences, needs and budgets. No wonder, the company has a satisfied list of clients.

Talking about residential projects, what is your expectation from La-royale Indrapuram and other residential projects, What are your future residential project plans and where do you see market going in next five year?
Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals
We launched La-Royale a luxurious residential project, as per plan, the project will have towers of 20 floors each, with 3 & 4 BHK units measuring between 1425 and 2800 sqft respectively, the construction is in full swing in 3.5 acre and is expected to be completed by the end of 2015. Since its launch, we received good response and have already sold about 40% of inventory in HNI market.

As far as the Indian real estate market is concerned, it is today standing at about $90 bn is growing at CAGR of 30%, and is expected to reach $180 bn by 2020. Housing will account for about 60% in overall real estate growth, around 65% of the buyers are in the age group of 30 – 40 yrs and investing in range of Rs.25 to 50 lacs. Young buyers see this as an attractive investment option along with tax benefits. Keeping the average ticket size of investor our next project is about to be launched in Noida extension.

On the future front, looking at ever increasing disposable income group in non-metro cities and exponential rise of land price in NCR region, the company has already acquired and is in process to create a substantial land bank in big non-metro cities across north India.

What has the business performance been of the company during the past 1-2 year, the impact of present slowdown on its business targets if any? How has the company been able to insulate itself from the present slowdown, thus enabling it to not only maintain its business tempo but also taking it to the next level of performance?
We completed our projects within the stipulated time and have progressive turnover during FY 2009-10. Our performance was much more to our expectations. Though there was a slowdown in the construction industry but we were having projects in hand to complete during that period. New opportunities are coming again in the market. The company has enough liquidity to sustain during though time. We have now focused towards Tier II and Tier III cities where there is a large scope for development and construction activities. People of such cities also require development in their areas to close the difference with Tier I cities. We are very much sure that step towards these cities will enable us to maintain our business tempo as well as progressive performance.

Is there any skilled manpower crunch in the company, if yes, then what are the enabling systems placed to train and retrain its personnel and induct new skill and expertise so as to enable them to take A-Z responsibility in various works in housing, road construction?
We are engaged in construction business for long and never faced the crunch of skilled manpower. We organize in-house training programme to update our manpower with latest construction technologies from time to time. Our manpower is our strength. Upgradation with latest equipment, timely encouragement and social behavior are the key to retain personnel in an organization. Our motivation and their dedication maintain strong confidence to understand and fulfill their responsibilities towards their work and duties.

Do you think that present reforms being initiated in infrastructure and financial sector are compatible with the emerging business realities to motivate the infrastructure companies to participate more proactively in the infrastructure market? What could be the new initiatives for which the time has come but still eluding the attention of policy making and implementation bodies concerned with infrastructure development?
Though the reforms in the field of infrastructure and financial sector are not in accordance with the need of time. Now our government has taken initiatives to further development in infrastructure in the country. The FDI in retail marketing shall be one of the steps to create new opportunities in this field. The govt. should take effective steps in financing the Infrastructure Projects. India being a developing country, needs the development and construction of Roads, Buildings, Bridges, Flyovers and Power Stations to develop the business and create similar opportunities.

One can see Kashyapi Infrastructures has done most of it projects in Uttar Pradesh and later on Diversifying to Central government works and other states like Orissa etc. What are your expectations from the present government, and what all suggestions you would like to give in order to make working environment more healthy.
Infact, Kashyapi Infrastructures has undoubtedly done substantial amount of work in UP, our 90% of turnover in first few years came from development work from Noida. We have executed one of the best projects in Greator Noida Gautam Budh University, UP, and the company has recently bagged two consecutive projects for Northern Railways.

Now, UP has a young and educated CM, Mr. Akhliesh Yadav, at the helm of the affair, this is itself a very good indication for infrastructural development. I am sure that he knows how much needs to be done at infrastructure front. Besides this, bodies like UPRNN (Uttar Pradesh Rajkiya Nirman Nigam) UP PWD, JAL NIGAM and State development Authority etc are working proactively on Infrastructure development front.

Kashyapi Infrastructure on Strong Technical and Managerial Fundamentals

I would only suggest that the UP government departments should immediately start proceedings to allot Infrastructure Projects, which are already approved and funds are allocated.

As economy is growing over next 10-15 years, the state will have to invest more for the development of infrastrure as well as other supporting industries.
NBMCW December 2012
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