Business Today

Creating Assets

A good track record in building roads and low debt make Dilip Buildcon a name to reckon with
twitter-logo Dipak Mondal   New Delhi     Print Edition: November 17, 2019
Creating Assets

Dilip Suryavanshi, the CMD of the Bhopal-based Rs 5,500 crore road construction company Dilip Buildcon is like a typical first generation entrepreneur who has built a fortune. Suryavanshi is a man of few words, but his work in road construction speaks volumes. Dilip Buildcon, a 32-year-old company, has expertise in building roads and highways under the Engineering, Procurement and Construction (EPC) model. It has built roads across 17 states, and has running projects in 11 states.

The company prides itself for being among the few construction companies in the country that have never delayed any project. In its investor presentation ahead of the first quarter results this year, it claimed that 90 per cent of its projects were completed ahead of time.

Suryavanshi credits this to its team's preparation and ability to pre-empt possible problems and resolve issues that can cause delays.

While most construction companies in India faced the problem of mounting debts, to its credit, Dilip Buildcon managed to keep its debt under check; its debt/equity ratio is 1. Brokerage firms expect healthy rise in its order book and close 2019/20 with an order book of over Rs 32,000 crore, an increase of 10 per cent. Revenues are expected to grow 20 per cent in the current financial year.

Suryavanshi continues to be bullish on road construction as he says that this would continue to be a top priority for any government in power for quite some time in the future. With the Modi government aiming at spendingRs 100 lakh crore in the infrastructure sector, Suryavanshi believes a large part of it would come to the road construction sector.

Prataap SnacksBest Manufacturing Company and Best FMCG & Food Company (>Rs 1,000 crore but < Rs 2,500 crore);

Munchin' Away

At a time when industry peers are struggling, widespread manufacturing has helped Prataap Snacks bounce back. By ajita shashidhar

Grasim Industries Best Manufacturing Company (>Rs 2,500 crore)

the snack food business always attracted the Kumat brothers, Apoorva and Amit, who founded Indore-based Rs 1,160 crore Prataap Snacks along with Arvind Mehta. The company's Yellow Diamond brand of chips started with a seed capital of Rs 15 lakh in 2003 and a contract manufacturer. Then they started their own operations and the first-year revenue was Rs 22 lakh. A decade later, it hopes to clock Rs 1,500 crore (end of 2019/20). It had been growing at a robust 15-20 per cent year-on-year until the slowdown last fiscal when growth tapered to 8 per cent. But in the first quarter of FY20, its overall revenue grew 23 per cent. "We started recovering from the first quarter and now we are back on track," says Amit Kumat, MD and CEO. However, what turned around the business was the companys decision to manufacture closer to the market. The trigger was the slowdown in the auto and consumer durables segments. Lower auto deliveries meant fewer empty trucks to transport their goods. They now have more wide-spread manufacturing. Plus, they have always been a national brand.

Weaving Success

Increased focus on specialty portfolio puts Grasim in the forefront. By nevin john

grasim Industries was incorporated just 10 days after independence and Nagda village in MP became a prominent supplier of cotton and fibre. Within 16 years, Grasim became the world's first completely integrated Viscose Staple Fibre (VSF) maker. Dilip Gaur, MD, Grasim Industries, says the Aditya Birla Group has invested about Rs 30,000 crore in manufacturing in Madhya Pradesh, which includes UltraTech's investments in Dhar and Hindalco's in Mahan, besides Grasim's investments. "The replacement value of the facility at Nagda will be around Rs 15,000 crore today," he says. It is now largely into specialty products, which form 30 per cent of the basket, and includes the Liva brand. The company plans to strengthen the pulp and fibre business and specialty portfolio towards value-added, green textile solutions. They also plan a third-generation fibre plant. "We look forward to produce 200 tonnes, with an investment of Rs 2,000 crore," Gaur says.

the snack food business always attracted the Kumat brothers, Apoorva and Amit, who founded Indore-based Rs 1,160 crore Prataap Snacks along with Arvind Mehta. The company's Yellow Diamond brand of chips started with a seed capital of Rs 15 lakh in 2003 and a contract manufacturer. Then they started their own operations and the first-year revenue was Rs 22 lakh. A decade later, it hopes to clock Rs 1,500 crore (end of 2019/20). It had been growing at a robust 15-20 per cent year-on-year until the slowdown last fiscal when growth tapered to 8 per cent. But in the first quarter of FY20, its overall revenue grew 23 per cent. "We started recovering from the first quarter and now we are back on track," says Amit Kumat, MD and CEO. However, what turned around the business was the companys decision to manufacture closer to the market. The trigger was the slowdown in the auto and consumer durables segments. Lower auto deliveries meant fewer empty trucks to transport their goods. They now have more wide-spread manufacturing. Plus, they have always been a national brand.

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