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INFRASTRUCTURE FACILITIES I RAW MATERIALS
The major raw materials required for the civil works are RMC/Cement, Steel, Sand, Metal, bitumen, Bricks, Granular sub base, tiles, aluminium, lifts, electrical items, other building and civil construction materials and asphalt products and for manufacture of RMC are Cement, Metal, Sand, flyash and Ad Mixture. The RMC required for construction work is sourced inhouse.
We manufacture various grades of RMC depending upon the end user requirements. The various grades are Slurry (Manual), STP (Manual), Lean Mix (Manual), DLC (Manual), M-5 (Manual), M-7.5 (Manual), M-10 (Manual), M-15(Manual & Piling), M-20(Manual), M-25(Manual & Piling), M-30 (Manual & Piling), M-35 (Manual & Piling), M-40 (Manual & Piling), M-45 (Manual & Piling), M-50(Manual) and M-60 (Manual). The requirement of raw materials for a sample grade of M-30 Piling /cum.mt. of RMC is as below:
Sr. No. Raw material Quantity
(kg/cu.mt. of RMC) 1 Metal 960.00 2 Sand 650.00 3 Crushed sand 280.00 4 Cement 320.00 5 Flyash 120.00 6 Admixture 5.24
Our major suppliers of raw materials during the year ended March 31, 2010 are as under: Sr.
No. Name (Rs. In lakhs) Purchase
1 Devdhar Steel 1447.21
2 ACC Limited (Cement) 1366.87
3 Binani Cement Ltd. 597.38
4 Sakashi Enterprise 572.14
5 Bhavin Steel Pvt.Ltd. 457.70
6 Dikshita Trading Co. 333.88
7 Sandeep Steels 282.20
8 Cement Corporation Of India Ltd 246.30
9 Lafarge Aggregates & Concrete India Pvt. Ltd. 223.69
10 Rolex Enterprise 204.71
Hot Elevator Vibrator Screen
Separation Aggregating Unit
Weighing Bin Mixer Unit Discharge Hopper Oil Thermit Bitumen Tank Bitumen
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We constantly endeavour to procure raw materials at the lowest prices using our experience, relationships with the suppliers and economies of scale enjoyed. We follow a centralized purchase system for cement, steel, diesel, and bitumen through our purchase department. We maintain minimum inventory, so the supplies are made on a just-in-time basis. In case of steel, diesel and bitumen our requirements are project specific. We procure steel from various steel suppliers to ensure availability and timely delivery to meet our project schedule needs. We have over the years developed relationships with a number of vendors for key material, services and equipment. We have also developed vendor database for various materials and services. The requirement is processed through negotiations with the suppliers keeping in view the logistics of location of project and timing of supply
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II. WATER Present requirement:
Major water is required for RMC plants. 3 RMC Plants : 130 kl/day
Wadala RMC Plant : 75 cu.mt./hr is estimatd at 45 kl/day
1 Wet Mix Plant : : 80 to 100 litres per tonne of wet mix produced The present requirement is met through tankers
Requirement for proposed plants: 3 RMC Plants : 110 kl/day 2 Wet Mix Plants : 120 kl/day
Total : 570 KL/day
For drinking purpose the water would be taken from the concerned municipalities / local bodies or purchased from outside. III. POWER Existing:
i.
BKC RMC Plant Sanctioned Load – 77.60 KW Connected Load – 77.60 KW Supplier –Reliance Energyii.
Wadala RMC PlantSanctioned Load – 150 KW Connected Load – 150 KW
Supplier – The Brihanmumbai Electric Supply and Transport Undertaking (BEST)
iii.
Dahisar RMC PlantSanctioned Load – 78.50 KW Connected Load – 78.50 KW Supplier – Reliance Energy
iv.
Mulund RMC PlantSanctioned Load – 107 KW Connected Load – 107 KW
Supplier – Maharashtra State Electricity Distribution Company Ltd.
v.
Nagla, ThaneAsphalt Batch Mix Plant – Sanctioned & Connected Load – 560 KW
Drum Mix Plant – Sanctioned & Connected Load - 67 KW Crusher – Sanctioned – 66.4 KW & Connected Load – 65 KW
Supplier – Maharashtra State Electricity Distribution Company Ltd.
vi.
Khargar, PanvelFor Wet Mix Plant and Crusher Sanctioned Load – 107 KW Connected Load – 107 KW
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Proposed Requirement:
3 RMC Plants – 200 KVA for each plant Asphalt Batch Mix Plant – 560 KVA 2 Wet Mix Plants– 125 KVA each Crushers– 67 KVA
Once the location is finalised, we would approach the concerned State Electricity Boad / Distribution Company for connection of power.
IV. Fuel:
We require 8 -10 litre of LDO & Furnance Oil per tone output of asphalt batch mix plant and drum mix plant. Diesel is required for all moving equipments, vehicles and generetors. The same is bought from the oil companies.
Employees and Employee Relations
We employ a number of well-qualified and skilled employees. As on February 28, 2011, we have 273 permanent employees, the break-up is given below. Besides this most of the labour requirements at construction sites are met through contractors. We also employ labour contractors for supply of personnel for our operations. Our success depends to a great extent on our ability to recruit, train and retain high quality professionals. Accordingly, we place special emphasis on the human resources function in our Company. We believe that our relations with our employees are satisfactory.
The Department wise breakup of our manpower is as under: Sr.
No Name of the Department No. of Staff
1 Construction, Operation & Production 241
2 Marketing And Sales 4
3 Accounts / Finance 21
4 HR/Administration 7
Total 273
The additional requirement of manpower in our Construction, Operation and Production department is as detailed below:
Sl. No. Plant/Equipments No. of People
1 Equipments 105
2 RMC Plants 150
3 Asphalt Batch Mix 37
4 Wet Mix Plant 60
5 Quarry 27
Total 379 We propose to run the plants/equipments either by ourselves or on contract basis under our supervision. No difficulty is envisaged in sourcing the additional manpower requirement.
PRODUCTS
Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant. Ready-mixed concrete’s ubiquitous use as a building material is largely because of two advantages. It is cost effective and it also allows great diversity in design and function, because in its fluid form, it can be poured into moulds of any shape. The mixtures from Asphalt Batch Mix plant/Drum Mix plant/Wet Mix Plant are used for our construction projects. MARKET, MARKETING & COMPETITION
For detailed analysis of Industry Stucture, Future Prospects, Competition please refer to the “Industry Overview” on page no. 52 of this DRHP.
Our competition in construction services depends on the size, complexity and location of the project. While service quality, technical ability, performance record, experience, health and safety records and the availability of skilled personnel are key factors in client decisions among competitors, price (or in the case of BOT projects, either the amount of the grant or the amount a tenderer is willing to pay for the right to receive the concession) is often the deciding factor in most tender awards. There are over many major
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construction companies in India, many of which are either involved in construction contracts, BOT projects or have stated a desire to be involved in BOT projects. However, our main competitors for EPC contracts includes Simplex Infrastructure Limited, MBL Infrastructures Limited, PNC Infratech Limited, Man Infraconstruction Limited, Madhucon Projects Limited, Era Construction Limited, ARSS Infrastructure Projects Limited, Gayatri Projects Limited, Tantia Constructions Limited, Supreme Infrastructure Limited, J. Kumar Infraprojects Ltd, PBA Infrastructure Ltd., Unity Infraprojects Ltd., RPS Infraprojects Pvt Ltd., Mahavir Roads & Infrastructure Pvt Ltd and GL Constructions Pvt Ltd.. Some of our competitors may have significantly greater resources than us.
The ready-mix concrete business is a relatively new business in India and there are only a few large established companies in this market. The firms that solely operate in the ready-mix concrete market are ACC Ltd., Ultratech Ltd., RMC (Readymix) India Ltd. Ambuja Cements Ltd, Lafarge Cement Ltd. and Skyway RMC Plants Pvt Ltd. In addition, there are some large construction companies that sell ready-mix cement to third parties, but this is not the main focus of their businesses. Because ready-mix concrete must be delivered within three hours of being poured into the transit mixer, competition is localised. Customers generally place orders based on the closeness of the competing firms’ ready-mix concrete plants and the price charged.
Marketing Arrangement: Construction projects:
We execute projects primarily taken through a competitive bidding process. Government and other clients typically advertise potential projects in leading national newspapers or on their websites. Our tendering department regularly scans newspapers and websites to identify projects that could be of interest to us. The head of the tendering department evaluates bid opportunities and decides whether we should pursue a particular project based on various factors, including the client’s reputation and financial strength, the geographic location of the project and the degree of difficulty in executing the project in such location, our current and projected workload, the likelihood of additional work, the project’s cost and profitability estimates and our competitive advantage relative to other likely bidders. Once we have identified projects that meet our criteria, we submit an application to the client according to the procedures set forth in the bid process.
Strategic, financial partners and collaborators
At present, we do not have any strategic and financial partnership with any other entity. We have not entered into technical collaboration with any entity.
RMC:
RMC required for the projects undertaken by us is sourced inhouse. We sell RMC directly to third parties through our marketing team headed by Business Head, RMC. Quality of our RMC is well established and in the past we have supplied RMC to following companies:
1. L&T
2. Unity Infraprojects Ltd 3. Simplex Infrastructures Ltd 4. Gammon India Ltd
5. Parinee Developers Pvt Ltd. 6. Shreepati Infra Realty Ltd.
7. Bucon Engineers & Infrastructures Pvt Ltd 8. Suyojna Impex Pvt. Ltd.
9. Vitraj Construction Co. 10. Five Vision
11. Nakta Investments Pvt Ltd
12. Siddhivinayak Construction Pvt Ltd 13. Shree Ahuja Properties & Developers
For the proposed RMC plants we will continue to adopt the same policy and approach contractors / builders having projects near to our RMC plants.