K. Narasimha Reddy
Managing Director
Even without Engineering background, K. Narasimha Reddy possesses 40+ years of extensive knowledge and experience in multi project planning, scheduling, and cost controls in addition to overall construction and multi-project management. It is for his inevitable leadership and guidance that the company has grown to the current size, scaling up profoundly with accomplishments of significant projects in the roads sector.
K. Narasimha Reddy engaging in an exclusive conversation with CEO Insights elucidates about KNR’s exclusivity and his leadership stint.
Describing about KNR Constructions, shed light on its acknowledgeable works?
KNR Constructions is a pronounced player in the country’s infrastructure sector, where it mainly focuses on providing infrastructure services for Highways, Flyovers & Bridges, and Irrigation sectors. Having created roads, bridges, and irrigation assets worth about Rs.11,000 crores in the recent years and Rs. 8,100 crores worth of orders are in hand, it participates in all the formats of Bids including Item Rate Contracts, EPC Contracts, BOT (Toll/Annuity), and HAM mode. It also has equipment block of over Rs.1400 crores for executing the projects on its own without depending on sub-contractors.
KNR is known for delivering projects on time and ahead of schedule and some of such prestigious projects are(i) Four laning of Walayar-Vadakencherry section in Kerala (Km.182/250 to Km.240/000 of NH-47)Package NS-2/BOT/ KL-2 on DBFOT (Toll) basis under NHDP Phase-II; (ii) Six laning of NH-140 from Chittoor to Mallavaram (61.128kms) in the State of Andhra Pradesh under Bharatmala Pariyojana on Hybrid Annuity Mode, (iii) Construction of Two Tier Flyover at Five Road Junction including
Construction of Flyover up to Ramakrishna Road Junction and Four Road Junction in Salem City, and others. KNR has successfully executed over 7500 lane km road length.
What are the factors you take into account when developing effective corporate growth strategies?
We need growth strategies in place for guiding the company to set the targets such as top line, bottom line, expansion, diversification, beginning of new verticals, and more, thus to realize the same in a planned manner we duly take into account the current and future challenges, alongside appropriate remedial measures.
For example, during business expansion as we wanted credentials and finances, we went ahead with forging joint ventures and also gathered funds by stretching to public issue. Furthermore, when the MoRTH & NHAI switched to DBFOT (Toll) & (Annuity) mode of contracts, we trained ourselves to become developer to take up the BOT Projects. Maintaining stabilized growth has been always a challenge in the dynamic space of opportunities and risks in the sector, hence sustainability and continuous embarking upon the new technologies and mechanisation of construction without missing anything has always helped us to be in the game. We have also been adhering to the philosophy of enriching the investors by continuous declaration of Dividends and we even issued 1:1 Bonus shares during the critical pandemic phase.
Under your administration, how have you been guiding the company to maintain quality in delivering services?
I have a set of senior officers at the Head office and at Project sites apart from the project management teams with supporting functional teams. There is constant supervision at different levels including management level for monitoring the progress and quality of work under execution. They make periodical visits to the project sites for guiding and ascertaining quality execution with a constant vigil on the functioning of QA & QC team. Periodical site visits help in timely addressing of any issues faced by site and seen at site for immediate remedial measure so that rework can be avoided in future. Internal Technical Audit also helps in regulating the processes and procedures during execution.
How do you ensure the company remains environmentally responsible?
We monitor all the pre-construction and construction activities meticulously. We ensure that all the requisite permissions such as Consent for Establishment, Consent for Operation for major plants like crushers, concrete batching plants,
What are the factors you take into account when developing effective corporate growth strategies?
We need growth strategies in place for guiding the company to set the targets such as top line, bottom line, expansion, diversification, beginning of new verticals, and more, thus to realize the same in a planned manner we duly take into account the current and future challenges, alongside appropriate remedial measures.
I encourage and direct the site managements to have adequate greenery in the camp sites
For example, during business expansion as we wanted credentials and finances, we went ahead with forging joint ventures and also gathered funds by stretching to public issue. Furthermore, when the MoRTH & NHAI switched to DBFOT (Toll) & (Annuity) mode of contracts, we trained ourselves to become developer to take up the BOT Projects. Maintaining stabilized growth has been always a challenge in the dynamic space of opportunities and risks in the sector, hence sustainability and continuous embarking upon the new technologies and mechanisation of construction without missing anything has always helped us to be in the game. We have also been adhering to the philosophy of enriching the investors by continuous declaration of Dividends and we even issued 1:1 Bonus shares during the critical pandemic phase.
Under your administration, how have you been guiding the company to maintain quality in delivering services?
I have a set of senior officers at the Head office and at Project sites apart from the project management teams with supporting functional teams. There is constant supervision at different levels including management level for monitoring the progress and quality of work under execution. They make periodical visits to the project sites for guiding and ascertaining quality execution with a constant vigil on the functioning of QA & QC team. Periodical site visits help in timely addressing of any issues faced by site and seen at site for immediate remedial measure so that rework can be avoided in future. Internal Technical Audit also helps in regulating the processes and procedures during execution.
How do you ensure the company remains environmentally responsible?
We monitor all the pre-construction and construction activities meticulously. We ensure that all the requisite permissions such as Consent for Establishment, Consent for Operation for major plants like crushers, concrete batching plants,
hot mix plants and more, are taken at appropriate stage duly fulfilling the obligations in maintaining the environmental indicators for soil, water and air. Similar measures are taken at execution sites as well. Periodic checking for these indictors provides us opportunities for addressing any untoward increase in the said levels. Environmental Audits are also carried out by the third-party agencies for guiding the sites. I encourage and direct the site managements to have adequate greenery in the camp sites and in the ROW if permits, adequate watering facilities for minimizing dust pollution possibly with sprinkler systems in camp sites, crushers, borrow areas, access roads, diversions, including identification of tanks. I’ve also initiated correspondence for exploring ways to reduce the requirement of earth for embankments by minimizing excavations. I provide all necessary support for utilizing the dismantled materials including bituminous materials by proposing reuse of such materials.
What is the future destination you are heading towards?
My individual journey started in 1967. Whereas, K. Narasimha Reddy & Company was formed as a Partnership Firm in 1979, KNR Constructions was established in 1995. In 2008, the company floated IPO and got listed on BSE and NSE. There has been consistent growth in terms of top line and bottom line over the years. Though we executed projects in Orissa, UP, Bihar, earlier, we presently focus mostly on South India and Highways, Bridges, Irrigation Tanks, Canals, Pump Houses, and more are the areas of concentration now. We plan to work on extending our operations PAN-India, and on establishing regional business units. Also, having a remarkable turnover in 2021-22, we intend to grow further effectively analyzing the opportunities in other areas such as Mining, Metros, Railways, Buildings, Real Estate, Pre-casting, while also measuring the associated risks as growth in the top line is possible only with diversification and business expansion. Further, we may expand in the neighbouring developing countries.
Any advice to future industry leaders?
I sincerely advise all the industry leaders to look at sustenance and stay vigilant and practical while quoting for ensuring adequate performance and healthy competition in the industry. Also, one should focus on limiting or avoiding unscrupulous expenditures and target the required timelines for completion. Most importantly, all should work unitedly towards reforms and addressing problems such as GST issues, arbitrations, pending payments, contractual matters, and more in the sector to become more successful.
K. Narasimha Reddy, Managing Director, KNR Constructions
Having over 40-years of extensive knowledge and experience in multi project planning, scheduling, and cost controls in the construction and infrastructure sector, Narasimha is a maestro in his field of work.
What is the future destination you are heading towards?
My individual journey started in 1967. Whereas, K. Narasimha Reddy & Company was formed as a Partnership Firm in 1979, KNR Constructions was established in 1995. In 2008, the company floated IPO and got listed on BSE and NSE. There has been consistent growth in terms of top line and bottom line over the years. Though we executed projects in Orissa, UP, Bihar, earlier, we presently focus mostly on South India and Highways, Bridges, Irrigation Tanks, Canals, Pump Houses, and more are the areas of concentration now. We plan to work on extending our operations PAN-India, and on establishing regional business units. Also, having a remarkable turnover in 2021-22, we intend to grow further effectively analyzing the opportunities in other areas such as Mining, Metros, Railways, Buildings, Real Estate, Pre-casting, while also measuring the associated risks as growth in the top line is possible only with diversification and business expansion. Further, we may expand in the neighbouring developing countries.
Any advice to future industry leaders?
I sincerely advise all the industry leaders to look at sustenance and stay vigilant and practical while quoting for ensuring adequate performance and healthy competition in the industry. Also, one should focus on limiting or avoiding unscrupulous expenditures and target the required timelines for completion. Most importantly, all should work unitedly towards reforms and addressing problems such as GST issues, arbitrations, pending payments, contractual matters, and more in the sector to become more successful.
K. Narasimha Reddy, Managing Director, KNR Constructions
Having over 40-years of extensive knowledge and experience in multi project planning, scheduling, and cost controls in the construction and infrastructure sector, Narasimha is a maestro in his field of work.