<div>Faizal E Kottikollon, founder-chairman of UAE-based KEF Holdings, sold his valve manufacturing business to Tyco International, the $17.5 billion global security systems company, in 2011. He sold the business for $400 million at a time when the world economy just recovering after the financial meltdown of 2008 and 2009. Kottikollon toyed with the idea of investing Rs 1,500 crore in India. His plans came to fruition in 2013, when his company acquired a 42-acre facility in Tamil Nadu to build a large manufacturing plant for offsite construction for industrial parks. He spoke to BW|Businessworld's Vishal Krishna about his plans.</div><div> </div><div><strong>Excerpts:</strong></div><div> </div><div><strong>What business model do you follow in India to help the construction industry and hospitals?</strong></div><div>KEF Holdings specialises in offsite construction. It is an exciting industry that directly addresses India’s massive need for infrastructure development. KEF combines its own in-house expertise with that of its global partners to bring the best quality, cost-effective and sustainable solutions into the market. We are modelled as a social enterprise and we are particularly interested in applying such industrial solutions towards building infrastructure for two key sectors that are critical to India’s welfare – education and healthcare. In both of these sectors, India needs to execute high quality projects on a wide scale, with speed, efficiency and reduced costs. This is where KEF’s core expertise comes in. We are aiming to create and replicate several industrial parks dedicated to offsite construction. Our 42-acre KEF Industrial Park in Krishnagiri, Tamil Nadu is a prototype, and is scheduled for launch in April 2015. KEF also believes in fostering strategic partnerships with organizations that are leaders in their space, thereby bringing to India global industry best practices. For example, for the 500-bed Premium Medical Healthcare Providers (PMHS) hospital in Calicut, Kerala, we are collaborating with The Cleveland Clinic, Ohio – the world’s leading medical and research facility, and with TAHPI (Total Alliance Health Partners International) of Australia, leaders in the design of medical facilities and health planning.</div><div> </div><div><strong>Give us a sense of the kind of cost savings KEF Industrial Park would provide to the industry? How much does it save on carbon footprint?</strong></div><div>Inherently, offsite construction reduces project costs by as much as 30 per cent. It also shrinks project timelines, which means faster delivery by as much as 50 per cent. It is important to understand why offsite construction can deliver so well in terms of speed, scale and costs. Think about whole building components such as walls, staircases, pillars, bathroom units that are entirely manufactured inside a factory, in settings that are controlled by computers and aided by automation. High-end automation of processes will mean increased focus on quality and precision. For example, computers calculate the precise amounts of raw material that need to go into particular processes. There is optimal resource conservation throughout the manufacturing process and wastage is reduced. Wherever possible, we also recycle material. In terms of carbon footprint, the KEF Industrial Park subscribes to LEED platinum benchmarks. Working with our green consultants En3 Sustainability Solutions, we are designing the facility to use 40 per cent less water as opposed to conventional buildings. Similarly, energy consumption will be 30 per cent lesser compared to a conventional facilities.</div><div> </div><div>Almost all of the waste water will be treated at the Park itself and will be reused. Buildings will make smart use of electricity through the "envelope design", the use of natural lighting wherever possible, and energy efficient air conditioning systems.</div><div> </div><div><strong>What is the amount KEF has invested in India?</strong></div><div>We will be investing approximately Rs 1,500 crore through our projects. This includes our two projects currently under construction – the KEF Industrial Park in Krishnagiri and the 500-bed PMHS hospital in Calicut.</div><div> </div><div><strong>How many locations do you want to open your manufacturing facilities in?</strong></div><div>We aim to open four more industrial parks – similar to the KEF Industrial Park in Krishnagiri – across India within the next five years. Broadly speaking, we are planning for these industrial parks to be strategically located in Andhra Pradesh, Delhi and the NCR region, Gujarat and Maharashtra.</div><div> </div><div><strong>What is ailing the Indian industry today, what should be done to meet the infrastructure requirements of his country?</strong></div><div>I think it is important for us to look ahead as a country. I believe India is on the verge of a construction revolution. The government has already resolved to create a hundred smart cities. The country needs such cities, which will become new hubs for sustainable economic activity and employment. The creation of India’s smart cities will require us to quickly adopt not just modern – but futuristic– processes across the board, right from arranging urban spaces, to designing its transportation, communication and building infrastructure. Offsite construction will undoubtedly be an important part of this equation.</div><div> </div><div><strong>How much did you sell your previous company to Tyco for?</strong></div><div>I started my entrepreneurial journey by establishing Emirates Techno Casting FZE (ETC) in Sharjah in 1999. The facility specialised in the manufacture of industrial valves and within ten years it had grown to become the key supplier to major oil and gas companies in the region. It came to be recognised as the third most technologically advanced foundry in the world. As a social enterprise, KEF is founded on the vision that it will work to towards making a positive difference to society. There is plenty of work for an organization like KEF to do: as a nation, we need 110 million housing units by 2022. We need to build several more hospitals – currently, we don't even have one hospital bed per 1,000 people. Millions of our children drop out of school because the infrastructural facilities at government schools are inadequate and outdated.</div><div> </div><div>The KEF objective is to use its industrial expertise – as well as that of its local and global partners – to efficiently develop India’s infrastructure. We will focus on viable projects that answer to the needs of the community and the nation, while adhering to industry best practices as well as sustainability. Healthcare and education being our two main focus areas, our emphasis will continue to be on the building of related infrastructure such as schools, colleges, dormitories, hospitals and clinics.</div>
