India’s Most Valuable CEOs: Growing In Stature
NBCC is one of India’s flagship public sector enterprises that competes for projects globally. Under Mittal’s stewardship, it is growing in stature and size
NBCC, earlier known as the National Building Construction Company, is a listed ‘Navratna’ company today that engages in the construction business as well as in real estate development and project management consultancy. It was chairman and managing director Anoop Kumar Mittal who actually turned NBCC into a Navratna company — a feat he is credited to have achieved in under 15-months of taking charge in April 2013. A Navratna status public sector enterprise gets enhanced financial and operational autonomy that empowers it to invest up to Rs 1,000 crore or 15 per cent of its net worth on a single project without seeking government approval.
Under Mittal’s leadership, NBCC has clocked a 43 per cent jump in revenue, from Rs 4,066.96 crore in FY14 to Rs 5,827.10 crore in FY16. As of July 2016, it had over Rs 70,424 crore in order book. It bagged new orders in FY16 for projects worth Rs 17,516.53 crore, including two big-ticket assignments: development of infrastructure works at AIIMS, and construction of an integrated exhibition-cum-convention centre for ITPO.
In the last three years, NBCC has brought some sweeping changes to the company and formulated new policies, including streamlining HR practices, online appraisal systems, and creating board-level positions to deal with growing work load, among others, to add value to the company’s overall growth.
Recently, NBCC signed an MoU with Russia’s Rosinformexport LLC to jointly participate in the smart city and railway projects in India. “The purpose of this MoU is to develop and redevelop some of the railway stations and smart cities as per the government policy,” says Mittal. NBCC is designated as the implementing agency for executing projects under Jawaharlal Nehru National Urban Renewal Mission, Pradhan Mantri Gram Sadak Yojna, Solid Waste Management and developmental work in the North East. A number of central government ministries and various state governments are using the services of NBCC as their extended engineering arm.
Amongst some recent gains, Mittal recently said that NBCC will start booking revenue from its Rs 400-crore hospital project, awarded to it by the ministry of labour, in the January-March quarter of FY17. It will get a commission that will be 5 per cent over the construction cost. The project involves NBCC constructing hospitals in Uttarakhand (Haridwar, Dehradun) and Madhya Pradesh (Indore). The company has to complete the projects in about 24 months. “I hope from last quarter of this financial year, revenue booking will start,” Mittal said in a television interview recently.
Mittal has also added a new vertical to NBCC’s business operations that will work on renovation and face-lifting of national heritage buildings. Mittal has signed agreements with CPWD, NAWADCO, Air India and DDA for redevelopment of their huge properties all across the country.
For his exemplary work in the Swachh Bharat Abhiyan, Mittal was conferred the Swachh Bharat Ratna Award 2015.
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