Continue Focusing On Roads And Highways Projects While Selectively Expanding Our Geographic Footprint.
Company is continuously focusing on the operations, maintenance and development of our existing projects while seeking opportunities to expand our portfolio of projects. Our strategy is to continue to focus on strengthening our market position and developing and executing EPC projects in the roads and highways sector, while seeking opportunities to bid for additional projects. We intend to draw on our experience, effectively use our assets, market position and our ability to execute and manage multiple projects across geographies, to grow our project portfolio. We will continue to leverage our existing technology and adopt new technologies, designs and project management tools to increase productivity and maximize asset utilization in capital intensive activities. We plan to continue our strategy of diversifying and expanding our presence in different states for the growth of our business. Our strategy of selective expansion is designed to help us in mitigating diversification related risks. We are selective when we expand in a new location and typically consider geographies where we can deliver high-quality services without experiencing significant delays and interruptions on account of adverse climatic conditions or regulatory delays. We intend to expand into states which are economically and politically stable and have favorable geographic and climatic conditions. We intend to broaden our revenue base and reduce risks of volatility of market conditions and price fluctuations by expanding our geographic footprint.
Attract, Train And Retain Qualified Personnel
We understand that maintaining quality, minimizing costs and ensuring timely completion of construction projects depends largely on the skill and workmanship of our employees. As competition for qualified personnel and skilled workers is increasing among construction companies in India, and as we pursue greater growth opportunities, we seek to attract, train and retain qualified personnel and skilled workers by increasing our focus on training our staffing advanced and basic engineering and construction technology. We also seek to offer our engineering and technical personnel a wide range of work experiences, in-house training and learning opportunities by providing them with an opportunity to work on a variety of large, complex infrastructure projects and by forming cross functional teams with the objective of giving such teams opportunities to innovate.
Continue Focusing On Enhancing Execution Efficiency
We intend to continue enhancing our operational efficiencies to better absorb our fixed costs, reduce our other operating costs and strengthen our competitive position through the following initiatives: Continue scientific selection of projects: We will continue our practices of scientific selection of projects and calibrated growth by avoiding projects that may over-leverage our balance sheets or may require significant investments in equipment or manpower. We will continue to expand into states with less competition, high GDP, stable political conditions, favourable geographic and climatic conditions. We will continue to focus on geographically clustering our projects to further improve our business and financial performance. Our future growth will depend on how successfully we undertake our projects in other states and cluster our existing and new projects to achieve optimal efficiency and profitability. Focus on timely delivery and quality execution: We intend to continue to focus on performance and project execution in order to maximize client satisfaction and profit margins. We intend to integrate best practices from different sectors and geographic regions and continue our practice of efficient planning and project management and centralizing procurement of major equipment and raw materials. This is designed to help us scale up our operations at a lower cost and enjoy greater economies of scale. Enhance our existing project execution capabilities: We intend to further enhance our execution efficiency and improve our operating systems of equipment usage, procurement and manpower. We intend to ensure continuous availability of equipment for our projects and exercise better control over the execution of our projects. We intend to adhere to our practice of quick mobilization of the equipment needed for our new projects, further increase spare parts availability and reduce procurement and maintenance costs. We intend to continue using our centralized procurement system to gain bargaining power with our equipment and raw material suppliers and further reduce our procurement costs. We source funding for our projects primarily through loans from banks and other financial institutions. We intend to continue to evaluate various funding mechanisms which will enable us to enhance our credit rating and in turn reduce our borrowing cost and improve our liquidity position.
Develop relationship with our clients and optimize our client mix
We will further develop our client relationships by providing high quality services to our clients with the same amount of dedication as we did in the past. Through our strong operating systems, we will keep monitoring our clients’ needs and requests and be responsive to them. We believe that completing our clients’ projects on time and with quality is an effective way to develop and maintain strong relationships with our clients and thus will strive to deliver our best performance in every stage of the projects we undertake. Government contracts accounted for the largest portion of our total Order Book during the last five audited financials. We intend to continue focusing on securing bids for government contracts in the near future.
Promotion of our brand recognition
We propose to increase the brand recognition through various brand building efforts, communication and various promotional initiatives. Such promotion would enhance the visibility of our brand and also enhance our business positioning.
Continue to focus on quality and timely project delivery
We believe that we have acquired a reputation for undertaking quality projects in our civil infrastructure and real estate development segments and completing them on time. We intend to continue to focus on quality and timely project execution thereby maximising customer satisfaction in all our business segments. We intend to continue building our in-house design capabilities, including, building our on-the-job expertise through participation in design projects, recruiting qualified personnel, expanding our equipment. We believe that this strategy can help strengthen our ability to engage in complex projects.
Capturing the high growth opportunities in the Infrastructure segment
We intend to take advantage of opportunities in the infrastructure space by bidding for BOT projects under PPP mode. An additional advantage of BOT projects is that they offer long-term revenue streams. We intend to leverage on our PMC and real estate development businesses to procure large infrastructure projects. In order to meet the pre-qualification requirements for certain infrastructure projects, which require higher capital adequacy or technical expertise and execution experience, our Company may have to enter into joint ventures or strategic alliances with third parties. We intend to pursue strategic alliances with established domestic as well as international players which we believe will augment our prospects of securing such projects.