NBCC bets big on Growth Avenues

"NBCC's expertise in areas of development and redevelopment of properties gives it an edge over others. We believe in setting high standards when it comes to construction business and also delivering on time. We have adopted the best practices and state-of-the art technology in our construction business to achieve a premier position and gain sustainable competitive advantage," informs CMD, NBCC, Dr. Anoop Kumar Mittal in an interview with P.C.Sharma.

Being the CMD of a Navratna Enterprise of Government of India, how do you see the PM's vision and mission of Housing for all by 2022? What are your views on this daunting task becoming a reality?

With population growing at a faster pace especially in metropolitan cities, India is faced with challenges of providing 'Housing to All'. It is through this very challenge that our Hon'ble Prime Minister Shri Narendra Modi carved out the vision Scheme – 'Housing for all by 2022'. We see a wealth of opportunities as being an instrumental company in this regard and giving hope to all Indians that their dream is our dream too and worth realising. NBCC's exclusive expertise in areas of development and redevelopment of properties makes it a company that has an edge over others. Moreover, NBCC is already involved in this activity spreading across the nation. As things unfold in times ahead, we are quite hopeful that the company being a major player, is likely to bag a significant share of this programme of the Govt. in near future and I am sure even though the task is huge, making the initiative a reality is quite possible.

Constructing 100 Smart Cities is another ambitious project of our PM; what is your view on the structure of smart cities as there is still much confusion on its basic guideline? Also tell us your view on developing India's own smart city concept as replicating Europe's smart city structure will not be feasible due to socio-economic fabric of our country.

It is an ambitious initiative but at the same time it is not impossible. The Smart Cities concept is one where our country will witness vast development in terms of infrastructure, construction and incorporation of smart features. A smart city uses technologies to enhance performance and well-being, to reduce costs and resource consumption and to engage more effectively with citizens. All this being said, we at NBCC are engaged in studying the current regulatory and policy guidelines of smart city projects, so as to identify the key issues, probably options for policy improvement both for central Govt. and states.

NBCC can play a big role in development of existing as well as new smart cities; how do you see this opportunity?

With huge opportunities opening up for NBCC, due to present govt's policy decisions in respect of housing, infrastructure, smart cities development, redevelopment of Govt. properties etc, we are now simply rearing to go for a growth unmatched. NBCC has taken major strides in promoting a sustainable way of living by using eco-friendly and low energy consumption materials in our business of construction. Some projects worth mentioning are Development of East Delhi Hub, Karkardooma, New Delhi under TOD Norms and Walk-to-Work Concept which will be in line with Smart City concept based on Smart Mobility, Smart Living and Smart Infrastructure. The Re-development of General Pool Residential Accommodation at New Moti Bagh, New Delhi by the Company and its ongoing Rs.5000 crore East Kidwai Nagar Redevelopment on Smart Sub-City concept are projects made following socially and environmentally responsible practices and incorporating sustainable ideas.

Will you please shed light on NBCC growth and success story, its operational strategy that boasts of its status as a Navratna Enterprise, Govt of India?

NBCC since its establishment in 1960 has definitely witnessed immense growth. This is clearly indicated by our stocks status today which is performing phenomenally, in comparison to the stock price at the time of listing in 2012. This behemoth-like success and growth of the Company, is the result of its strategy shift, in operation of late, adoption of well thought out unique business model, addition of some new verticals in business such as redevelopment, residential real estate, reconstruction and renovation of heritage structures and last but not the least, the systemic changes in the overall functioning of the Company. The fact that NBCC is a debt-free company, there is nothing that is holding us back from growing today. NBCC believes in setting high standards when it comes to construction business and also delivering on time. We have adopted the best practices and state-of-the art technology in construction business to achieve a premier position and gain sustainable competitive advantage.

What are NBCC's main areas of operations and its healthy order book and recent prestigious national and overseas infra projects in hand and the USPs of these projects?

NBCC has taken major strides in promoting a sustainable way of living by using eco-friendly and low energy consumption materials in its business of construction.

The three main segments that we work are Project Management Consultancy (PMC), Real Estate (RE), Engineering Procurement & Construction (EPC) and all these have been witnessing consistent growth for the past several years. Our order book has grown substantially and now stands at around Rs.36,000 crore which is likely to touch the figure of approximately Rs.60,000 crore in next few months. Here at NBCC, we give immense thrust to Sustainable Development in its various areas of operation. Our Recent Major works include Redevelopment of IIPA campus in Delhi valuing Rs.435 crore; Redevelopment works for AIIMS- Rs.5828 crores; Development of Trauma Centre for AIIMS-Rs.2000 crores; Re-development of Integrated Exhibition-cum-Convention Centre at Pragati Maidan for ITPO, New Delhi- Rs.2149 crores. In recent times, we have bagged quite a few huge works in the redevelopment sector which includes the on-going Rs.5000 crore East Kidwai Nagar smart sub-city Redevelopment Project, another Zero Waste Disposal Project of its kind. Indeed, Exclusive expertise in redevelopment segment and unique business model of the company facilitated by our systemic changes in overall functioning has become USPs for all project execution.

NBCC’s behemoth-like success and growth, is the result of its strategy shift, in operation of late, adoption of well thought out unique business model, addition of some new verticals in business such as redevelopment, residential real estate, reconstruction and renovation of heritage structures and last but not the least, the systemic changes in the overall functioning of the Company.

Being a civil engineer and CMD of green conscious company NBCC, what are your initiatives to construct green projects with zero wastage and low environment impact? What sustainability/green means does NBCC adhere to?

When I took charge as CMD of NBCC in 2013, I had a goal that besides creating economic value, we would make it a point to look into the company's impact on society and the environment. Active involvement in many social programs to promote cleanliness, education, skill development, public utility schemes on socio economic growth is being encouraged. In fact, NBCC has been conferred with Swachh Bharat Ratna Award 2015 for this very reason. After successful implementation of redevelopment of Govt. owned New Moti Bagh, GPRA Complex in Delhi now certified as the largest Green Home Complex of its kind in India, NBCC has started getting huge work orders in this segment one after the other. This has been followed by the on-going Rs.5000 crore East Kidwai Nagar Redevelopment Project. The projects like Indian Institute of Corporate Affairs, Manesar (Haryana); Aaykar Bhawan, Noida (UP); New Moti Bagh GPRA Complex, New Delhi; Civil Services Officers Institute, New Delhi; CBI HQ Building, Delhi etc. implemented by NBCC are some of the finest examples of Green Building initiatives by the Company where sustainable site planning, sustainable building design and energy performance optimization have been taken care of for the sake of the environment upkeep. At NBCC, we understand the responsibility that we have, as a PSU that operates Pan-India and Overseas. As such, we take it very seriously looking into every aspect that counts as environment-friendly and sustainable.

NBCC has recently formed a JV with DDA for a smart city project in Delhi. Could you please shed some light on this project and status?

Yes, we have signed two MoU's with DDA for projects on Smart City concept. One is for integrated development of Lake View Complex, Trilokpuri, New Delhi and another is development of huge East Delhi Hub, Karkardooma, New Delhi on TOD norms and "smart city" principles. The project will take three-four years to complete. The ongoing of huge 75 Acre East Delhi Hub will revolutionise the way of living in India in walk-to-work concept. The project will be a green complex. It will follow the zero discharge principle. All sewage generated within the project will be treated/recycled in-house. There will be no surface parking. The highlight of the project is a signature tower that will have 100 storeys. The projects are presently at planning stage.

What is the role of NBCC in rural development?

We all know that more than two-thirds of India's population live in villages. Therefore, integrating the fortune of Villages & Cities with one another and making Villages self-sufficient in terms of basic Socio- economic growth and Infrastructure remains our priority. NBCC has already initiated number of Skill Development Programmes pan India through its CSR wing. The Govt's PMGSY scheme in which NBCC is also actively involved for the last many years, is gaining increased relevance with the time. NBCC also participates in Swachh Bharat Abhiyan of the Govt. under their CSR activities, implementing various Sanitation schemes, education schemes, social schemes available for the rural population.

For sustainable construction, innovative and technologically advanced equipment are quite important; how does NBCC look on this important aspect and what is your equipment bank strength as of today and plans to acquire new equipment in near future?

NBCC believes in setting high standards when it comes to construction business and also delivering on time. We have adopted the best practices and state-of-the-art technology in construction business to achieve a premier position and gain sustainable competitive advantage. We engage ourselves in constantly upgrading our technology so that our construction and sustainability go hand in hand. NBCC is proud to say that in association with IIT Roorkee, we have set-up a R&D Centre through which innovative applications are applied in our construction works. We also hire contractors and implementing agencies to handle the projects with dedication and care.

How do you see the future outlook of NBCC and the target you set for next five years?

I would like to share with you that during the last 2-3 years, the Company has established a niche for itself by taking up many new initiatives. These include putting up extensive focus on redevelopment of government properties with incorporation of maximum green features aiming to take care of sustainable aspect in construction which is the order of the day. It is fair to say that due to all our accomplishments in such a short span of time, we have set the benchmark as one of the ideal construction companies of the 21st century. We are getting lot of Orders in PMC as well as Redevelopment Segment. I would like to also add that there are some more high value work orders on Redevelopment segment that are expected soon. The three segments that we work such as EPC, RE and PMC have all been witnessing consistent growth and our Order Book is also growing at a faster pace. The results are already evident and in the next financial year, the growth will be more visible. From the next financial year onwards, we are targeting to achieve 25% CAGR and is also confident to maintain the trend in the following 5 years as well.