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Subhash Sethi tells Niranjan Mudholkar that his firm will not just continue to focus on the water sector but also expand into other segments to become a complete infrastructure solutions provider
In a way, the growth of Subhash Projects & Marketing Ltd (SPML) represents India’s infrastructure development opportunities in the last quarter of a century. What started as a water pumps agency 27 years ago, is more than a Rs1,000 crore company (Rs1,167 crore turnover in 2007-08) today with a diversified portfolio in the water, power and infrastructure domains.
SPML is expanding its portfolio to construction of airports, metro rail and freight corridors. In view of this expansion plan, SPML has also pre-qualified for urban transport projects including metro rail in Kolkata and bus terminals in Bangalore and Orissa, and car parking in Chandigarh.
The company is bidding for dedicated freight corridors in Bihar and Uttar Pradesh. After its foray into ports, SPML is now all set to foray into airport construction and has received pre-qualifications for two airport terminal projects at Indore and Raipur from Airports Authority of India.
“These new segments are a part of SPML’s vision to become a complete infrastructure solutions provider,” says Subhash Sethi, vice-chairman, Subhash Projects & Marketing Ltd.
Of course, while expanding into other areas, SPML will continue to focus on the water sector. “SPML’s immediate focus in FY 2008-09 will be on water management solutions, leveraging its proven domain capabilities and experience of the last two and a half decades in the water sector,” Sethi says. Sustainable water management has been SPML’s core competence right from inception; Sethi also foresees bullish growth for this sector in the next five years.
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Sethi draws attention to the fact that investment of Rs2.3 trillion is proposed for water resource management in the XIth Five Year plan.
“Moreover, India’s water market is one of the largest in the world, with approximately one-third of the total estimated value dedicated for water provisioning, one-third for municipal water treatment and one-third for industrial water treatment. Overall annual growth rate is 15-20%, with the drinking-water and industrial segments growing even more rapidly. The urban water demand is expected to double, and its industrial demand to triple, by 2025,” he says.
Interestingly, SPML’s current order book position shows a good mix of various projects including water (Rs1,500 crore), infra (Rs900 crore) and power (Rs1,000 crore). It is hardly surprising that the company expects to generate revenues up to Rs5,000 crore by 2013. And it seems quite likely given the growing significance of infrastructure in the country. “Infrastructure is an issue of critical importance. A world-class infrastructure will be needed in India to provide a platform for faster, consistent growth and for India to become a major world economic power,” Sethi says.
Today, SPML is indeed one of Indian construction industry’s important success stories. Sethi owes SPML’s success to its ability to innovate. At the micro level, this is in terms of engineering solutions. “From laying pipeline in difficult hilly terrain and forest areas which required an out-of-the-box thinking approach to constructing the highest single stage pumping station in the world at 12,000 feet above sea level, SPML has seen opportunity through innovation where many peers have even declined to venture,” says Sethi.
At the macro level, SPML has introduced services that have been unique. “Be it the waste management in Delhi - a novel PPP initiative, or the sewer rehabilitation services or the country’s three stage sewage treatment plant, SPML has stayed ahead through offering innovative services to India’s infrastructure needs,” says Sethi.
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