Tuesday, January 22, 2013

The company’s aggressive plans

Lalit Jalan, CEO, R-Infra, discusses the company’s aggressive plans in this exclusive with B&E

B&E: What is the strategy of R-Infra to deal with the competition?
LJ:
We are looking at power generation. In transmission, we are the largest private sector transmission company in India. We are presently doing three projects worth Rs.40 billion in power transmission. In distribution we are again the largest private sector company. We have six million customers. We have got Mumbai, Delhi and Orissa which are all growing. We are the largest private sector ‘EPC’ player in the country. Then we are developing new projects in metro rail, roads, airports and atomic energy plants. In infrastructure we have 9 projects worth Rs.160 billion. So we are in a very good position. Our balance sheet is very strong. Our net debt position is zero which is very good in this sector. We always welcome competition. They are very healthy. Tata''s are very good competition.

B&E: What are the most critical challenges for Reliance Infrastructure in the coming years?
LJ:
There are two types of challenges, viz. internal as well as external. Internal challenges relate to managing vendors, equipments, finance, retaining and hiring new talents. The external challenges relate to getting land, environmental and other regulatory clearances. We are very sure of internal challenges. But external challenges are taking a lot of time. Getting land is proving to be a very time consuming process. If you want 2,000 acres of land for starting a power plant, it will take a lot of time.

B&E: What are your future plans?
LJ:
In the EPC business, power generation remains the prime focus. But we are also going into metro rail construction and electronic power plants construction. We are also tying up with some EPC companies in steel to do steel plant construction. We are also planning to tie-up with world leaders in metros & airports.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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