19 November 2019

Interaction-Rahul Katyal, MD, Capacit'e Infraprojects

Capacit’e will soon be a name to reckon in the EPC and Turnkey business in India

 

Incorporated in the year 2012, Capacit'e Infraprojects Limited is a fast growing civil construction company that is driven by the passion to excel, executing landmark building projects spread across major cities of India. The current order book of the company is over Rs.5,800 crore, spread across Mumbai MMR, Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai & Cochin. Capacit'e has clocked sales revenue of over Rs.1000 Cr in FY 2015-16. RAHUL KATYAL, MANAGING DIRECTOR, CAPACIT’E INFRAPROJECTS speaks to  CONSTRUCTION OPPORTUNITIES on the company’s current and future plans

 

Tell us about your ongoing projects across various real estate segments – residential, commercial and mixed? (places, locations, features, cost and timelines of completion?)

Capacit'e Infraprojects Limited, a leading construction company which specialises in construction of super-high rise buildings, has bagged new construction orders aggregating to Rs.900 crore in the year to date from different developers in Mumbai, NCR, Bengaluru, Chennai and Cochin.

In a major development recently, Capacit'e has bagged an order from Saifee Burhani Upliftment Trust for the construction of Residential Towers at Bhendi Bazar in Mumbai. It has also bagged an order from Karwa and Kewal Kiran for construction of a residential tower in Dadar, Mumbai. Capacit'e has won repeat orders from Ahuja Group for construction of a residential tower in Worli, Mumbai and from Transcon - Sheth Creators for construction of the third residential tower in Auris Serenity, Malad, Mumbai.

In the NCR area, Capacit'e has been awarded a Multi-Level Car Parking project for Sri Gangaram Hospital in Delhi and the World Mark, a Commercial Complex in Gurgaon. Making foray in Chennai, Capacit'e has bagged a Rs.150 crore order from Puravankara to construct a residential project. A repeat order has been received from Puravankara for construction of a project in Bengaluru. Adding to this illustrious portfolio Capacit’e has added a new project worth Rs.200 Cr in Cochin for Prestige Group

 

 

The past 2 years of the new government has held promise of a project push but the momentum has been slow for various reasons. Tel l us how your firm has fared during this period and the challenges faced by you?

Yes, you are right that in the last 2 years the market has seen correction in many ways. Developers have become more prudent in launching projects. At the same time there is a whole lot of onus on the contracting community to perform. Developers have become more conscious to the fact that the contractor requires monetary support at regular intervals to steer the project towards completion.

But this is only true with developers who are less leveraged and have also attained substantial sales revenue from projects.

But to add to the misery there was no substantial rate cuts in the interest by major banks, overall bleak economic scenario, insane pricing of new inventory, no substantial salary rise for the salaried class & high inflations have scuttled the overall growth projection of the RE market.

Capacite’s project portfolio is more diversified than any other player in the market. We have made a huge impact in the market in the last 4 yrs with close to 42 projects under execution in diverse areas and with different contractual arrangements. In the last four years we have carved a niche in the High rise and Super high rise construction which is averse to market fluctuation. Currently we are having 60 per cent of the projects in High rise/Super high rise segment.

To add to this in the last 2 years we have seen a trend in bagging projects which are turnkey in nature. Hence I feel that we are in a better position to handle crises in the current scenario with a huge bankability on staff. The Great Place to Work Institute has given Capacit'e 66 points which goes to show employee satisfaction above all the achieve the desired vision set by the management.

 

 

Going forward what are the opportunities you are seeking in the Smart Cities domain? Also please provide details on the SBUT project bagged by your company.

Smart cities are a unique concept which is also one of the most flagship initiatives of Govt of India. Many Smart city projects have been launched in India and many Tier 2 and 3 cities have come under its ambit. This would be of Green Field and Brown field in nature. As per the details available on the official website of smart cities it is clear that the objective of a Smart city development is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of ‘Smart’ Solutions. The focus is on sustainable and inclusive development and the idea is to look at compact areas, create a replicable model which will act like a light house to other aspiring cities.

Addressing this requirement of smart city, Capacit’e has ventured in construction of the Saifee Burhani Upliftment’s Cluster 3 Development in Mumbai at Bhendi Bazar area.It’s one of the most congested localities of South Mumbai and Saifee Trust have taken the initiative for upliftment of the people living in these areas. A very noble intiative spread across 9 phases/clusters. This project also won the Best Smart City Project Award 2016 in the recent held Smart City Expo in Delhi. This is also one of the first cluster development projects which have been given green signal by the state govt.

Capacit’e works with the latest formwork and would provide bespoke solutions to projects in the smart city development.

We would be able to cater to project requirements from Design to completion.

 

 

As a real estate veteran how would you like the landscape of existing and next cities to be? What is your vision for future urban development?

I would attribute a lot of points for the envisioning the future landscape of existing and next cities in India

  • Self-sustaining & Green
  • Abundant with Water and Power
  • Walk to work concept. People living and working in the same township. Not having the need to relocate to new town for jobs.
  • All daily requirement of food, clothing, shelter and entertainment getting addressed at a single location.
  • Effective and green transport.
  • Best IT connectivity
  • Effective transportation system & Management
  • Digital records for all government files
  • Public housing

 

 

What is your take on affordable housing and what is your company doing in that direction?

Affordable housing is a term used to describe residential units whose total housing costs are deemed “cost effective" to a group of people within a specified income range. Taking some facts from few articles on affordable housing-The generally accepted definition of affordability is for a household to pay no more than 30 per cent of its annual income on housing.

It’s also important to know that in after Modi led government has resumed office there is a Huge Impetus on Affordable housing schemes for the economically weaker sections of the society. This need has also been spearheaded byrespective state governments under various affordable housing schemes.

As a contractor we see a huge volume business in this area. Recently we have acquired a formwork technology- Tunnel Form from Turkey to cater to mass housing schemes. We are also working with prefab and pre-engineered building to address the immediate housing requirement in SRA projects. We are and can provide total turnkey solutions to this segment from design to completion

 

 

Tell us of the best construction practices/technology (scaffolding, Formwork/ softwaresetc) and special materials used in your projects?

Capacit’e is the only company in the Indian construction sector which has the youngest fleet of plants and equipment’s with average age of equipment is less than 3 years. Equipment sourced from reputed vendors like Potain, ACE, Schwing Stetter etc. Capacit’e also has a strong policy of maintenance of plant and machinery. Our young fleet with efficient utilisation of assets has helped CIL to execute projects in timely and cost efficient manner.

We possess various formwork which includes Aluminium, Tunnel form, Horizontal Panel, Vertical Panel and Vertical form, Jump and table form.

CIL’s understanding of construction technologies and timely strategic alliance is a major advantages for bidding and winning large contracts

We have plans of adding more projects and enter new markets, efficient utilisation of asset will be important to maintain in its execution quality and ensure higher return on investment in the years to come.

 

 

What will be the company’s plan of action for 2016-17?

CIL has been able to grow at a phenomenal pace winning projects in a competitive market while maintaining industry level margins and strong profitability ratios.

  • Moving forward the company will focus on the following
  • To secure more projects in High rise and Super high rise building sector
  • Enter into fast growing segments of Smart cities, Mass Housing, integrated townships and institutional building projects
  • To form strategic tie ups with reputed/leading international technology players in construction business to help win complex and large value projects
  • We also have plans to explore the international business by leveraging the rich domestic experience.

Capacit’e will soon be a name to reckon in the EPC & Turnkey business in India providing solution to complex buildings with high focus on technology, improving margins and focused Growth outlook.




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