BUILDING INFRA across the globe [Oct 2011]

Afcons Infrastructure is a part of the Shapoorji Pallonji Group, the third largest construction group in India with a group turnover in excess of Rs. 90 billion. K Subrahmanian, Managing Director highlights the opportunities and challenges for infrastructure players  Afcons Infrastructure: An eventful journeyAfcons in its journey of over five-decades has many firsts to its credit. It was the first Indian construction company to have constructed an underground metro station (at Barakhamba Road, New Delhi), one of only four qualified bidders for construction of the reactor buildings in the country.
Over the period, Afcons has emerged as the leader in its business field by continuously delivering its world-class services in the areas of marine works, highways, bridges, metro works, power houses, tunnels, oil & gas, LNG tanks and other general civil engineering projects. We have a strong portfolio of completed construction projects including 176 marine works, 132 bridges/flyovers, 3,000 lane kilometres of roads, 43 kilometres of elevated metro rail, 4 LNG tanks and 9 tunnels and hydro work.
With ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certification, Afcons is also recognised by the Government of India as a ‘Star Export House’.
Globally, we have completed projects in countries like Iraq, Saudi Arabia, Oman, UAE, Qatar, Yemen, Ethiopia, Algeria, Mauritius, Madagascar, Sri Lanka and Nepal etc.  Currently Afcons is working in Oman, Liberia Jordan & Bahrain and also executing some of the most prestigious projects in India.
Growth storyIn March 2011, Afcons earned a total income of Rs.28.93 billion with a CAGR of 21 per cent over past five years. Its goal is to achieve a turnover of $ 2 billion by 2014-15, of which 25-30 per cent will be from overseas market.
With an entry into the offshore oil and gas business, we have entered a different league.
Our accolades include:• The WQC International Star Award in the Gold category by Business Initiative Directions, Spain • Safety awards from Reliance Industries, National Safety Council of India and Ishikawajima-Harima Heavy Industries Co. • The ACCE FOSROC award for effective use of construction chemicals in a civil engineering project by ACCE-I in 2001 for a tanker berth jetty trestle for RPL, Jamnagar.
Many projects constructed by Afcons, such as the Bandra-Worli Outfall Project (Mumbai); Airoli Bridge (Navi Mumbai); Mandovi Bridge (Goa); Sharavati Bridge (Honnavar); Railway bridge across Thane Creek in the Mankhurd-Belapur Railway Project have been recognised for their excellence in construction and engineering.
Challenges for the sectorToday the infrastructure sector is facing several challenges. One crucial issue that needs to be resolved on priority basis is the availability of credits for private players working on major infrastructure projects.
Industry needs to take huge initiatives in training and development to address the issue of shortages of skilled manpower. Afcons has a concept of classroom@site where training and development of its employees has been immense.
Another big hurdle is the use of improper contract documents by various government agencies. Adoption of internationally approved contract documents such as FIDIC documents, Standard Bidding Documents etc. will go a long way in solving this problem. The Government uses these documents for funded projects. We suggest that these documents should be used for non funded projects as well.
The industry also suffers because of the poor dispute settlement mechanism. This issue requires administrative reforms at the government levels.
Land acquisition is another major problem faced by the infrastructure sector in India. This has to be dealt by passing and implementing some special laws while at the same time doing away with some archaic laws, which impede the land acquisition process.
Your comments on Government’s spending of $1 trillion during 12th plan commencing 2012.While the 12th plan promises $ 1 trillion investments for infrastructure development with 50 per cent of it coming from the private sector PPP, delay in decision making process could also hamper growth. While the industry looks for an aggressive growth in the coming years, the Government needs to formulate policies to encourage private participation.
Yearly turnoverAfcons closed at US $ 515 million turnover in 2009-10 and the current year it is expected to cross US $ 650 million turnover.  In terms of its technology and innovative strength, it is considered amongst the top five construction companies in India.
No. of employeeAfcons has 5000 dedicated personnel, which includes engineering & management personnel, highly skilled workmen and various dedicated site level personnel.Global presence We have completed various projects in the countries like India, Mauritius, Madagascar, Dubai, Oman, Yemen, Abu Dhabi and Qatar. Currently Afcons is working in India, Oman, Liberia, Jordan & Bahrain.
Landmark projects accomplishedOnshore – Marine works• Piping at jetty location during shutdown and berth modification, Jamnagar• Sulphur expansion jetty, Ruwais, Abu Dhabi• Civil & marine works  for Mole B and Galana jetty for Ambatovy project, Madagascar• Oil jetty at Port Louis Harbour, Mauritius• LNG receiving jetty for Petronet at Dahej, Gujarat • Construction of LNG jetty WP-7 at Hazira, Gujarat• Bait Al Barakah Maritime facilities for guarding the restricted area in  Oman
Onshore – Industrial structures/general works• Cofferdams for pump house  at Qatar Petroleum, Qatar• LNG concrete storage tanks 2 Nos. – 1,48,000 K.L capacity at Dahej, Gujarat for IHI • Civil and structural works for National Cement Company, Yemen • Pipavav Shipyard – largest shipyard in Asia – Drydock  construction of size 659 m X 65 m X 11.5 m • Site grading works at Kochi LNG terminal for LNG Ltd.Transportation – Bridges• Railway bridge across Thane Creek, Mumbai• Nad Al Sheba race course development, Dubai, UAE • Bridge across Zuari river, Goa• Cable stayed bridge across Mapusa river at Aldona, Goa• Rail bridge at Vallarpadam, Kerala – Longest  bridge on Indian Railways Transportation – Metro• Barakhamba Under Ground Metro Rail Station, New Delhi For Delhi Metro• Wazirpur Metro Rail Station, New Delhi For Delhi Metro• Elevated Viaduct between Tis Hazari and Trinagar Station, New Delhi For Delhi Metro
Transportation – Highways/Roads• Four Laning of Haveri to Hubli Section of NH-4• Four Laning of Hyderabad-Bangalore Section of National Highway, Karnataka • Four Laning of Ullundurpet – Padalur Section of NH-45 – Tamilnadu  • Improvement for outer ring road from IIT gate to NH 8 intersection at Delhi – Value 18,848  lakh.
Hydro and Underground• Desilting Basin for Koldam Hydro Electric Power Project, Himachal Pradesh• Honavar Tunnel at Karnataka
Key ongoing projects • Rohtang Pass – 8.8 km highway tunnel at 13,300 sq.ft above sea level in the Himalaya Region in joint venture with Strabag, Austria –  $ 350 million • Offshore Process platform of ONGC Bombay High in joint venture with Gunanusa of Indonesia – $ 366 million• Bulk Jetty for Sohar, Oman in joint venture with Saipem, France – $ 200 million• First Underwater Metro Tunnel in India for Kolkata Metro, Kolkata – $ 210 million• Marine Transport Terminal facility at Aquaba, Jordan – $ 240 million• Two packages of underground Metro Line EPC Civil Construction at Chennai (India) – $ 600 million• Four laning of NH 1 Highway at Jammu – Udhampur, India – $ 350 million• Stand-by Jetty at Dahej, India for Petronet – $ 150 million• Marine facility in Liberia for Arcelor Mittal – $ 55 million
Order book standingsWe have an order book of around Rs. 8,183 crore with an average order size of Rs. 455 crore and average execution period of about 28 months. 
Success mantraWe attribute our growth to 6 differentiators of Afcons:• Relationship Focus: Paradigm shift to “Relationship Driven Approach” from “Transaction based Approach”• Innovation Drive: Cutting edge technology and Knowledge repository    • Transparent Dealings: Total transparency maintained with all the stakeholders• Execution Culture: Track record of completing the projects ahead of schedule• HR Leadership: Successfully built “Total Satisfaction Model” and presently implementing “Wellness Model”.• Transnational Fabric: Rich experience working with various countries and many international majors.

28