Hindustan Construction Company

Hindustan Construction Company, also known as HCC, is a construction company working in India for the past 80 years. With its vision statement of "being the industry leader and a market driven engineering construction company renowned for excellence, quality, performance and reliability in all types of construction", HCC has been working in various sectors of construction including Transportation, Power, Marine Projects, Oil and Gas Pipeline Constructions, Irrigation and Water Supply, Utilities and Urban Infrastructure, the company has a executed some of the best civil engineering projects across the nation. It also qualifies to be the first construction company in India to be certified for ISO 9001, ISO 14001 and OHSAS 18001 for its Quality, Environmental and Occupational Health & Safety Management System. The company is headed by Mr. Ajit Gulabchand, Chairman and Managing Director of HCC.

Reference: http://www.hccindia.com

Nuclear and Thermal Power

HINDUSTAN CONSTRUCTION COMPANY

Hindustan Construction Company Ltd. (HCC) is a leading infrastructure construction company with a rich heritage of experience. The company specializes in pioneering large-scale civil construction and developing new age construction technologies. The company executes construction of technically complex and high value projects across segments like transportation, power, marine projects, oil and gas pipeline constructions, irrigation and water supply, utilities and urban infrastructure.

It is the endeavour of the HCC team to create value for its clients, shareholders, associates and employees, by building a sustainable, profitable business through innovation, maintaining high quality standards and passionate commitment.

Taking the company forward is an experienced and strong management team led by Mr. Ajit Gulabchand, Chairman and Managing Director. The management is backed by a large talent pool of civil engineers, project managers, architects, planners and project staff who consistently seek to improve their own benchmarks for quality and efficiency.

Financial Performance and Fundamentals

Listed on the Bombay Stock Exchange (Scrip code 500185) and NSE (Scrip Code HINDCONS), since 1984, HCC shares have witnessed strong value growth, with P/E ratios increasing by 151.9% YoY and EPS (Earnings per share) registering 47% YoY growth in FY 2005-06.

Year Turnover (Rs crore) Profits (Rs crore) 2003-04 1171.4 35.7 2004-05 1576.5 74.0 2005 -06 2028.2 124.8

In terms of annualized growth, the company had a 28.7% increase in topline growth, with a turnover of Rs 2028.2 crore and a 68.6% increase year on year in bottomline growth for the financial year 2005-2006. However, the Profit after Tax for 2005-06 includes a one-time pre tax extra-ordinary income to the tune of Rs 40 crores (post tax Rs 32.6 crore) for transfer of land development rights to Hincon Realty.

Business growth – a reflection of trust

The order book of HCC has grown at a CAGR of 20 % since 2002 and currently stands at over Rs 9604 crores, which is almost four times its FY 2005-06 turnover. Project assignments have been secured across diverse sectors like transportation, nuclear and hydro power generation, water supply and irrigation. The company’s varied expertise and presence in diverse sectors reduces dependence of growth from any one segment of business, thereby minimizing risks and ensuring stronger returns.

Best practices in business

More than ever before, parameters such as efficiency, productivity, quality, and safety have become critical differentiators for the Indian construction industry. In its pursuit of quality, HCC has established global best practices in project management and execution. It has sought to challenge the unchallenged by successfully implementing some of India’s most difficult projects such as nuclear power plants, expressway corridors and metropolitan railway projects. Project managers and engineers at HCC have combined their knowledge and expertise in civil engineering and construction with newer innovative technologies to build a number of significant projects in India and overseas.

The company’s talent pool is over 2400 people strong, including 1650 people with technical and engineering skills and experience. In addition, the company is a large downstream employment generator with over 24,000 on-site workers at various project locations.

Some of the company’s major ongoing infrastructure projects include the prestigious Bandra-Worli Sea Link, a major part of the Golden Quadrilateral Highway Development Project, Water Supply Project in Tirupur, Nuclear Power Plants at Kudankulam & Rajasthan and, several road projects in J &K.

Joint Venture & Technical Collaborations

HCC has always been known for leadership in technology to enhance quality, efficiency, and productivity. To further improve on its commitment to customers of providing greater technical capability and advanced technology, HCC has entered into several joint ventures & technical collaborations with companies from across the globe to bring in the latest know-how and execution capabilities for specific projects.

Some major projects of HCC, for which joint ventures / technical collaborations have been forged are:

• Ennore Breakwaters, Tamil Nadu - Longest in Asia with Van Oord ACZ BV, Netherlands • Godavari Rail Bridge, Andhra Pradesh - India's only bow string girder Rail Bridge with M/S Bureau BBR, Switzerland • Nathpa Jhakri Hydro-electric Project - Construction of Head Race Tunnel and Surje shaft with Impregilo SPA, Italy • Naini - Allahabad Bridge - One of the first Cable Stayed Bridge across river Yamuna in India with Hyundai Engineering & Construction Co. Ltd., Korea • Delhi Metro Project – Underground Metro Corridor with Kumagaigumi Co. Limited, Japan; Skanska Civil Engineering AB, Sweden and Itochu Corporation, Japan • East-West Road Corridor Project in Rajasthan with M/s. Continental Engineering Corporation, Taiwan

Pursuance of Quality, Health and Safety

HCC’s commitment and adherence to global best practices is reflected in its quality, occupational health and safety policies. HCC has established and implemented an integrated management system for Quality (ISO 9001:2000), Environment (ISO14001:2004) and for Occupational Health & Safety (OHSAS 18001:1999). This system has been audited by Rheinisch - Westfälischer Technischer Überwachungs Verein (RWUTV) of Germany conforming to all requirements of the standards.

The company has won accolades for its contribution to the field of engineering construction from several prestigious organizations like the American Concrete Institute Award for the Salal Dam (Jammu & Kashmir), the IFAWPCA (International Federation of Asian & Western Pacific Contractors Associations) Award for the Kapurthala Rail Coach Factory (Punjab), the Association of Consulting and Engineers Award for the Varanasi Bridge (Uttar Pradesh) and Chamera Hydroelectric Project (Himachal Pradesh).

Environment Focus

Respect for the environment and focus on protecting the environment are core values of HCC’s corporate culture.

Among the various initiatives undertaken by HCC, through its government recognized Research and Development Centre is that of use of fly ash in concrete which helps reduce carbon emissions and makes for a more environment friendly construction material. Fly Ash based self-compacting concrete is a technology that is not only eco-friendly, but also enables construction of more durable structures even in extreme environmental conditions. In recognition of its efforts by the Government of India, various ministries & departments came together to jointly confer the National Award for facilitation of Fly Ash Utilization to the company.

Social Responsibility with responsiveness

Fundamental to the ethos of the organisation is a sense of social responsibility. As an organisation, HCC seeks to alleviate the concerns of people affected by various crisis situations, disasters, trauma or personal issues.

Disaster Resource Network

In line with its social responsibility objectives, HCC is one of the founding member of DRN – an initiative of World Economic Forum, formed in the wake of the Gujarat earthquake of 2001. The network acts as a bridge between business and relief organizations during emergencies to provide relief and rehabilitation support in the mitigation phases of a disaster. Mr Ajit Gulabchand, Chairman and Managing Director of HCC is on the board of DRN Global and leading DRN India.

Through its efforts, DRN seeks to streamline and increase delivery of industry resources at disaster sites. Through DRN India HCC has provided relief to people and areas affected by the South Asian tsunami of 2004, floods in Mumbai & Andhra Pradesh, and in Jammu & Kashmir after the recent earthquake. HCC also offered support in USA post Hurricane Katrina.

DRN India has demonstrated the ability of timely response and resourcefulness in its efforts to provide relief in disaster affected areas. This has been achieved by the establishment of an effective network of key stakeholders, service providers and other corporate houses. This year, emphasis would be laid on creating a larger, wider network of resources that transcends international borders, and partnerships are established with organizations across countries to achieve better participation and training. DRN India has also offered to facilitate the creation of DRN-Pakistan, which would be symbolic step in furthering cross border partnerships.

HIV and AIDS Awareness
HCC has undertaken an HIV/AIDS education and awareness initiative in association with the French AIDS awareness organisation FXB. This programme was launched on 19 March 2004, with the key objective of raising awareness levels on the subject through prevention and control program among workers and their family members.

Initiation of the campaign started with Workplace Intervention Programme at the Head Office conducted at various project sites in Mumbai. Celebration of the World AIDS Day 2005 was marked by most of HCC project sites - Water supply project, Bandra-Worli Sea Link, Polavaram, Allahabad Bypass, Pune BOT, Kudankulam, USB Rail Project & Munger and TALA C4 at Bhutan translating HCC into a truly responsible corporate.

Landmark Projects by HCC

Vaitarna Dam, Maharashtra	Iduuki Dam , Kerala
India's first all concrete gravity dam	India’s only Double Curvature Arch dam.
Tala Hydroelectric Power Project, Bhutan	Kolkata Metro, West Bengal and Delhi Metro
One of the challenging power projects in South Asia	India's first underground mass rapid transit system and India’s newest MRTS system
Bandra-Worli Sea link Project, Package IV, Mumbai	Farakka Barrage, West Bengal
8-lane cable-stayed bridge	Longest barrage in the world (listed by Guinness Book of Structures)
Kudankulam Nuclear Power Plant, Tamil Nadu.	Koyna Hydel Power Project, Maharashtra
India’s largest and latest nuclear power facility	Largest hydel project in the state of Maharashtra
Mumbai-Pune Expressway	Mumbai Water Supply Tunnels
The first 6-lane concrete pavement expressway in India	Constructed using the Tunnel Boring machines
Kaliabhomora Bridge Brahmaputra, Assam	Bhandup Water Treatment Plant, Maharashtra
The only road bridge on the mighty river	One of the largest projects of its kind in Asia