'Will cover inaccessible areas too'
Hindustan Prefab Limited (HPL) a Central Public Sector Enterprise under the ministry of housing and urban poverty alleviation, which was almost on the verge of closure in 2005-06 has staged a turnaround. Its chairman and managing director Jaiveer Srivastavaa, spoke to Hindustan Times on a range of issues. Excerpts:business Updated: Jan 31, 2010 21:23 IST
Hindustan Prefab Limited (HPL) a Central Public Sector Enterprise under the ministry of housing and urban poverty alleviation, which was almost on the verge of closure in 2005-06 has staged a turnaround. Its chairman and managing director Jaiveer Srivastavaa, spoke to Hindustan Times on a range of issues. Excerpts:
You had joined the organisation in August, 2006 when it was on the verge of closure and with a turnover of hardly Rs. 8 crore or so. How is the company doing now?
I am happy to say that HPL is now fully turned around. It is now a profit making organisation from the financial year 2008-09. The turnover has increased to Rs. 150.32 crore with a profit of Rs. 9.38 crore against a loss of Rs. 13.75 crore in the year 2007-08.
What has been the impact of financial restructuring?
The corporation has a loan payable to the government to the extent on Rs. 128 crore. This has been converted to equity in the finalised restructuring. Thus the company has now a positive net worth from 2008-09. This enables the company to compete in the tenders of large value to enhance its business activities in addition to least cost of interest against its earnings.
Do you think that revival is going to be sustainable?
We have drawn a long-term plan for the corporation growth. It is expected we will attain a growth of at least 20 per cent during 2009-10. We already have orders for approximately Rs. 2,000 crore and expected to grow further during the current year. In addition we plan to work on our core business strengths-prefabrciation and precasting activities, which will further enhance the order book and turnover.
What are the steps you have taken to restart prefab and precast
The board of directors of HPL has constituted an expert committee under the chairmanship of a professor from IIT Delhi and members from Bureau of Indian Standards, DDA, BMTPC to recommend the most appropriate prefab / precast technology which can be utilised by HPL.
The committee is already on the job and we expect to get their report in four weeks.
What are your business plans on prefab / precast technology?
HPL plans to concentrate in prefabricated “low end areas” such as mass housing for urban poor and middle class segment. Besides, we are prepared to give quality and quick solution for mass requirement in the health sector, education sector, sports sector, tourism, warehouses, institutional buildings and infrastructure.
We would not only be covering all metro cities, towns only but also difficult and inaccessible areas in the mountains or tribal areas of North East.
It has been observed that HPL is surrounded three sides by the railway lines and most of the adjoining lands are encroached. How are you going to transport your prefab products?
One of the problems normally faced in prefabricated civil engineering components is the issue of transporting the material and its cost so as to be competitive. HPL is better located to handle this problem. It has a railway siding within the factory. This will facilitate transportation of the prefabricated products by the rail.
However, there is a need of a clover leaf for direct road connectivity with the Nizammudin-Ashram Bridge on Mathura Road. Land is already available for the purpose and the plans drawn in 1956 are being redrawn with the help of our ministry to achieve the above.
I hope the government is definitely going to have a positive view, once the manufacturing restarts.