Those in the business of infrastructure have the unique pleasure of being able to shape modern cities. Their works are everywhere, from bridges and roads to dams and canals, overpasses and flyovers, with imagination and ingenuity on full display.
One of India’s leading city builders is J. Kumar Infraprojects, which was founded in 1980. It provides end-to-end construction services from design to construction to project management, all with a diverse and innovative range of capabilities.
It’s also a family business, established by Jagdishjumar Gupta, who remains Executive Chairman today. The company’s Managing Directors are his sons Kamal and Nalin; as Projects Head, Nalin is particularly close to every part of the company’s portfolio.
“We’ve always believed in taking up projects that were of national importance,” he tells The CEO Magazine. “And from the beginning, we’ve worked as a main contractor and not as a subcontractor to anybody.”
Expanding innovatively
As an independent operator, J. Kumar Infraprojects has always had the freedom to take on the jobs it preferred. According to Gupta, these were initially flyovers, subways and vehicular underpasses.
“We built up confidence to take bigger jobs, and along the way, we acted on our belief in innovation and implementing the newest technologies,” he says.
“We’ve always believed in taking up projects that were of national importance.”
This made J. Kumar Infraprojects the first company in India to use reinforced earthwork, which was strong, aesthetically pleasing and quick to build. Today, that pioneering spirit continues.
“We’ve been doing all types of infrastructure work with the latest technology available on a real-time basis, on par with the best in the world,” Gupta says. “I’m very proud that we, as an Indian company, can do that.”
Pain points
Gupta holds a Doctorate in Construction Management from the European International University, Paris. He is also a proud member of the Indian Institution of Bridge Engineering, and has completed Unit 1 of the Owner/President Management Program and is currently pursuing Unit 2 at Harvard Business School – an experience that broadened his global perspective and deepened his commitment to lifelong leadership development.
His background builds a bridge of its own between the two sides of the business.
“A major pain point for every infrastructure company is that 10 percent of the bank guarantee makes up 10 percent of the project cost,” he says.
“We need to pay in the form of bank guarantees. If you have projects worth around INR250 billion [US$2.8 billion], you need to pay around INR25 billion [US$281.8 million] per project as the performance guarantee.
“Banks are often reluctant to do this because of the rate of defaults, so it’s a pain.”
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In his role as a member of the Contractors Federation of India, Gupta has faced this challenge by discussing with the finance ministry and other government bodies the possibility of surety bonds.
“These are issued by insurance agencies and are less in cost,” he says. “They also solve the problem of default for non-performance. Some government bodies have accepted this solution, and we’re working hard to get more on board.”
The other challenge the industry faces is the sourcing of skilled labor.
“This is, as you’d expect, a highly labor-oriented job,” he says. “The top infrastructure companies have collaborated to develop skill centers to develop the next generation of laborers.”
“J. Kumar Infraprojects is known to be a family organization that’s professionally driven in terms of human values.”
At the same time, J. Kumar Infraprojects is endeavoring to make the construction process safer and more efficient through automation. So far, its efforts are set to reduce labor requirements by almost 50 percent for jobs such as steel cutting and bending.
“We’re also trying for more recasting in elevated jobs, where labor efficiency is greater on the ground floor than 10 stories up,” he says.
A valued team and trusted suppliers
Far from taking jobs away, Gupta says automation in the infrastructure industry is about safety and consideration for the wellbeing of workers.
“J. Kumar Infraprojects is known to be a family organization that’s professionally driven in terms of human values,” he says.
“We’re very connected with our people, some of whom have been with us for more than 30 years. Some who’ve joined as trainee engineers are vice presidents today.”
The J. Kumar Infraprojects team is more than 7,000-strong, with yet more external partners and stakeholders contributing to the company’s portfolio of projects.
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Gupta says each member of the team is as crucial as the next.
“Every project has a fully-fledged team that works on a solution, led by a project manager with a planning engineer, purchase manager, account store, billing and quality manager; they all work together as a dedicated team for that project,” he says.
These teams are served by the J. Kumar Infraprojects supply chain, which is controlled from the company’s Mumbai head office. Supply comes from a range of vendors selected after vigorous due diligence and technical evaluation.
“The majority of our steel, for instance, comes from JSW,” he says.
“Our people aren’t easily poached because they are committed to our company. They dream big, and as a result, our achievements are towering.”
Much of the company’s cement comes from UltraTech, tunnel boring machines from Terratec and on-site equipment from METAX – the geotechnical, drilling and oilfield division of CIMA.
“We believe in standardizing our equipment, which builds a trust between J. Kumar Infraprojects and our vendors,” Gupta says.
“We believe in long-standing relationships, whether it’s with external players or internal staff. Our people are our strength; they’re the ones who run the company.”
A sustainable future and big dreams
Sustainability is another concern that looms larger over the infrastructure industry than ever before. Gupta says J. Kumar Infraprojects’ approach to sustainability is safety first.
“From noise pollution to recycling of waste products and even planting trees around campus, we take sustainability seriously,” he says.
“We recycle raw materials and water. You have to invest money in these pursuits, but eventually it ends up cheaper and more environmentally friendly.”
The company’s tagline, ‘We dream so we achieve’, is just as potent now as it was in 1980. Its achievements pepper the cityscapes of India and make life easier for those interacting with them.
Gupta says that while J. Kumar Infraprojects is renowned for its work, internally, great effort is made to acknowledge the individual efforts of its people.
“Our people aren’t easily poached because they are committed to our company. They dream big, and as a result, our achievements are towering,” he concludes.
