The National Highways Authority of India (NHAI) is performing near miracles in the country. According to government sources, the length of national highways has risen by almost 50 percent in the last decade alone. While the total length of national highways was 91,287 km in April 2014, it is now 145,240 km. In truth, it is hardly a wonder as the pace of construction of highways has gone up from 11.6 km a day in 2014 to around 30 km a day now (despite the slowdown in the past two financial years).
The construction agencies have already been told to push the pace of road building to over 40 km of highways per day. You might be wondering what changed. The answer to this question lies in the Union Minister Nitin Gadkari’s (Minister for Road Transport & Highways) tech-savvy mindset that triggered the NHAI's comprehensive digital transformation.
The NHAI migrated to the cloud and a new dashboard to recognize bottlenecks in real-time. It also switched to a new system to transfer the compensation for land acquisition to beneficiary accounts through the Public Finance Management System (PFMS) to fast-track the disbursement process. While these aspects constitute a significant portion of the multivariate success formula, NHAI has also been lucky to have a handful of elite infrastructure construction partners like H.G. Infra Engineering Ltd. (HGIEL) who breathe innovation and freshness while executing projects seamlessly using the technology advantage.
HGIEL delivering constant performances and timely execution with no delays has been a significant aspect of the country's central and state governments’ infrastructure success stories, thanks to the company’s visionary management team that ace corporate governance and close monitoring of execution.
The Success Story: Evolution at Its Best
Having had a humble beginning in 2003 as a small subcontractor in Rajasthan, HGIEL set the foundations right with a focus on quality, seamless, timely execution, and, most importantly, its people. The company had its successful IPO in March 2018 and never looked back. Over the years, the company expanded its business to roads and highways across India as a prime contractor bidding independent contracts with NHAI, MoRTH, Ministry of Railways, DMRC, other state governments, and private players like Tata Projects, Adani Group, and IRB.
Today, HGIEL continues diversifying its business and clientele network by bidding in the Railway, Metro, and Water sectors. With 17 active projects in PAN India, including 14 road & highway construction, two railway construction, and one metro project, HGIEL’s order book remains strong at Rs. 12,713 crores as on June 30, 2023. This includes the 151.70 KM stretch of Ganga Expressway, which is HGIEL’s largest EPC project with a value of Rs. 4970.99 crores. The company’s market capitalization recorded a y-o-y increase from Rs. 3,627 crores to Rs. 5,000 crores in 2022-2023, manifesting a whopping 38 percent increase.
Embracing New Tools & Technologies
Delving deeper into the success story of HGIEL reveals a methodical and transformative approach to construction, turning every challenge into an opportunity. Be it the transformation due to changes in demographics, technological advancements, or the need for sustainable development, the company has been the first to embrace change and, in turn, maneuver it to its advantage. For instance, HGIEL is one of the pioneers in inducting digital tools, sensors, and various automation processes to ensure proper asset management and adapt to changing climate conditions.
The company getting a grip on pre-casting to have better quality control, expedite casting, and increase productivity is a case in point.
Today, as the industry embraces Artificial Intelligence (AI) technologies, HGIEL is well-positioned to revolutionize how infrastructure projects are planned, executed, and maintained. “AI-driven design software can analyze weather conditions, and demographic data to create more efficient road and rail network layouts. Advanced algorithms can optimize design parameters, such as road curvature, bridge spans, and track alignments, reducing construction time and costs,” asserts Harendra Singh, Chairman & Managing Director, H.G. Infra Engineering Ltd. He adds, “AI can process vast amounts of construction data to provide valuable insights.
Project managers can make informed decisions based on real-time data, leading to better project outcomes”. HGIEL leverages AI across its operational areas, including, but not limited to, Predictive Maintenance, Construction Automation, Resource Allocation, Risk Management, and Safety Enhancement.
Nevertheless, technology alone can’t get you over the line. Bill Gates once said: “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Over the years and decades of experience, HGIEL has built a strong in-house team that performs clinically throughout the lifecycle of a project. The company has departments dedicated to Planning, Design, Operations, and other functions that smoothen the intricacies through a centralized project management system. They monitor the longevity of structures, considering a life span of 100 years.
Going Beyond the Norms to Set New Benchmarks
The company returns this commitment to its workforce with an excellent work and safety culture. Harendra Singh adjoins, “We have received several recognition and awards for our efforts in achieving outstanding safety performance. We have a record of zero Loss Time Injury (LTI) over the years. One of the reasons behind this is that leadership is actively involved in promoting and supporting health and safety initiatives.
We have an established culture of continuous improvement in health and safety practices. We regularly review incidents and near misses to identify areas for improvement. We have Created Health and Safety policies, which are communicated to all employees and regularly reviewed and updated.” The company even regularly practices emergency response plans, including fire drills, evacuation procedures, and first-aid training, ensuring that all employees know how to respond in case of emergencies.
HGIEL goes beyond the industry norms and standards not only in employee safety but also in overall compliance adherence. With a centralized Compliance Tool as the internal control system, HGIEL has developed and implemented various Standard operating procedures (SOPs) and processes for compliance management during the execution of infrastructure projects that involve multiple government agencies and compliance requirements.
Furthermore, the company boasts well-established research & development centers with advanced and latest testing equipment and skilled and professional staff. Moreover, the company confines its construction materials purchases to trusted and approved primary manufacturers, and the materials are subsequently rigorously tested at in-house and external NABL laboratories in line with approved inspection and quality assurance plans. “We ensure certification and approval of every activity before execution, including material and machinery validation through mockups. And the final product is inspected and tested before handing over to the client,” adds Harendra Singh.
En Route to the Future
The infrastructure construction market in India has witnessed significant growth over the past decade and is likely to continue evolving for several reasons. The government’s efforts to improve the ease of doing business are attracting more private sector participation in infrastructure projects. Sustainable and eco-friendly infrastructure practices are gaining importance, focusing on reducing the environmental impact of construction projects.
With its cutting-edge, transformative approach and a firm grip on sustainability, HGIEL is ideally positioned to leverage the opportunities. “We forayed into Hybrid Annuity Model (HAM) projects as India is increasingly pushing a public-private partnership model, and we are extensively looking at project opportunities that can be monetized and deliver a healthy IRR completion,” concludes Harendra Singh.
Harendra Singh, Chairman & Managing Director, H.G. Infra Engineering
Harendra Singh holds a bachelor’s degree in Civil Engineering from Jodhpur University and has over three decades of construction industry experience. He has been on the Board of the Company since its incorporation.
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