We Pay More Attention To Volume And Value - Vascon Engineers
10/11/2010 12:40 PM Monday
Vascon Engineers brings an experience of more than two decades in efficient engineering and customer-centric development of real estate across India. The property products by Vascon Builders include residential, industrial, commercial malls and multiplexes, hotels, convention halls, and IT parks. Besides all the engineering and construction works, Vascon Engineers has taken up several initiative steps towards social reform. These include an association with Cipla Centre for palliative care. The company has also played an instrumental role in the beautification of Pune city. Excerpts from the interview:
What is your business outlook for the current year?
Our EPC (engineering, procurement, and construction) and real estate businesses have shown continuous growth. However, since our approach is that of 100 per cent completion in real estate, the additions in the topline and the impact on the bottomline are registered in different years depending upon the maturity of the projects. The EPC contribution to our company’s topline and bottomline would be around 80 per cent.
Although today we have a say in terms of the square feet area construction of up to 60 per cent in EPC and 40 per cent in real estate, our books still show 70-75 per cent in EPC because this maturity will take place in 2012. So our balance-sheet will not reflect the true position of the company’s strength. The current growth of the company and its future prospects can only be understood if you go deep into the cash flow scenario.
In the EPC segment you have concentrated more on building facilities for companies. What kind of industry exposure do you have?
One of the exposures that have helped us grow is related to the pharmaceutical sector. We also have to our credit institutional buildings like the one for the Tamil Nadu Assembly, the car parking facility for Delhi Airport, the back-end operation building for ESIC, and the MAT projects for the army. In the sphere of education we have constructed the buildings for Symbiosis Institute and are now setting up similar facilities for the Sinhagad group of colleges. In Pune, we are doing a project of about 2,000 rooms in the hospitality sector.
Our specific focus is on constructing buildings where high-end finishing is called for tight delivery schedules. Infrastructure companies and EPC contractors are good in RCC work and structural work but they lag behind in finishing. Our expertise born out of handling pharmaceuticals projects and residential buildings has given us an edge over the others. So when it comes to the turnkey type of assignment involving false ceilings, flooring, air-conditioning, etc, we know our job best. For example, we completed the construction of 1.5 million sq feet for the Ruby Mills project within two and a half years. If I had delayed the project by three months the client would have lost Rs 100 crore, i.e. if you calculate the rental of those many square feet at Rs 150-200 per sq feet.
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