It’s yet another year of building a better India for GVK Reddy
“He is very dynamic! He has built up a professional team with clear lines of responsibilities,” avers Kamlesh Kotak, Vice President – Research, Asian Markets Securities, on being asked about G V Krishna Reddy, chairman of GVK Power and Infrastructure Limited. The audacity with which GVK Power and Infrastructure Ltd. snatched the Mumbai Airport project from the jaws of well established international players also speaks volumes about the leadership at the top of the company.
So, what is it that puts GVK Power & Infrastructure Ltd and its chairman G.V. Krishna Reddy in the watchout list for 2008? Well, there are a slew of reasons why this company will make some deafening noise in the coming year. As Kotak unhesitatingly states, “the company will be in the limelight at least for the next five years as it has an excellent business model, strong growth credentials & high earning visibility.” Another analyst tracking GVK, on the condition of anonymity said “GVK has quite a few big and long projects.”
The company has been impressively increasing its presence in the lucrative power sector and is also planning to get into power transmission and distribution – a step that further diversifies the business of the company, which is already into infrastructure, roads and construction, power generation, et al. Even the current airport business would generate higher cash flows in the future (or at least once the commercialisation of the space inside the airports happens). The company will also see a surge in revenues stemming from advertisements, rents, et al, along with the normal aero related revenues.
However, one can argue that it’s not always a cake walk. Agreed! GVK is operating in a sector where competition is definitely high, with the fight coming from the likes of REL, Gammon, Punj Lyod etc. But Kotak who has interacted with the company management reveals, “GVK has a good management team in place which is highly focused in their respective business domain and taking newer initiatives. Moreover, the pie is getting bigger by the day so, every one will get a fair share.” Apart from the competition, there’s one more thing that might prove to be heartbreak for the company – the execution. Winning projects is one thing, but many believe that the sector inherently embodies more than a few bureaucratic bottlenecks that may create problems in execution. For example, in the airport business, land availability, clearing slums, and getting approvals, are big problems that a company has to deal with, eventually causing project delays.
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Source : IIPM Editorial, 2008
“He is very dynamic! He has built up a professional team with clear lines of responsibilities,” avers Kamlesh Kotak, Vice President – Research, Asian Markets Securities, on being asked about G V Krishna Reddy, chairman of GVK Power and Infrastructure Limited. The audacity with which GVK Power and Infrastructure Ltd. snatched the Mumbai Airport project from the jaws of well established international players also speaks volumes about the leadership at the top of the company.
So, what is it that puts GVK Power & Infrastructure Ltd and its chairman G.V. Krishna Reddy in the watchout list for 2008? Well, there are a slew of reasons why this company will make some deafening noise in the coming year. As Kotak unhesitatingly states, “the company will be in the limelight at least for the next five years as it has an excellent business model, strong growth credentials & high earning visibility.” Another analyst tracking GVK, on the condition of anonymity said “GVK has quite a few big and long projects.”
The company has been impressively increasing its presence in the lucrative power sector and is also planning to get into power transmission and distribution – a step that further diversifies the business of the company, which is already into infrastructure, roads and construction, power generation, et al. Even the current airport business would generate higher cash flows in the future (or at least once the commercialisation of the space inside the airports happens). The company will also see a surge in revenues stemming from advertisements, rents, et al, along with the normal aero related revenues.
However, one can argue that it’s not always a cake walk. Agreed! GVK is operating in a sector where competition is definitely high, with the fight coming from the likes of REL, Gammon, Punj Lyod etc. But Kotak who has interacted with the company management reveals, “GVK has a good management team in place which is highly focused in their respective business domain and taking newer initiatives. Moreover, the pie is getting bigger by the day so, every one will get a fair share.” Apart from the competition, there’s one more thing that might prove to be heartbreak for the company – the execution. Winning projects is one thing, but many believe that the sector inherently embodies more than a few bureaucratic bottlenecks that may create problems in execution. For example, in the airport business, land availability, clearing slums, and getting approvals, are big problems that a company has to deal with, eventually causing project delays.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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