Concrete

Golden rule for project managers

Published

5 years ago

March 5, 2021

admin

Many a time, colleagues would ask me what is the sure shot recipe for success in managing projects. The answer would come to me very easily, and I would naturally respond by saying that there is no such magic bullet in project management. At the same time, I always hasten to add, that there is but one pre-condition for success. And that is, We must think of the project contractors as our partners, and not as opponents. This may sound quite easy to practice, but in actual practice I have seen that it is almost always observed in its violation. Contractor bashing is so common-place amongst us, that we have almost made it a religion in itself.

Before we delve into the strange behavioural aspects of this phenomenon, let me explain the contractual relationships that define a contractor. This is easier done with an example. Let us say that in Delhi, the Delhi Metro Rail Corporation enters into a public-private partnership with a company named DAMEPL for setting up the Airport Metro Line. Let us assume that DAMEPL, in turn, engages Siemens, among many other parties, to carry out signalling installation. Now, Siemens again, employs M/s XYZ Pvt Ltd for the actual erection work, and this XYZ Pvt Ltd asks M/s ABC Co., as labour contractors. Thus, in this illustration, we have created a 5 tier contractual structure. We can see here that as we step down this so called ladder, a contractor in turn becomes a customer, and that there are many customer-contractor relationships existing in such a large project at different levels.

I am a little confused. I do not know precisely why we tend to treat our contractors in a condescending manner, suspecting them all the time, and persecuting them all the time. Is this attitude rooted in our colonial past, or is it arising from our public sector mentality? Or, is it that we are always afraid to befriend the contractors, lest we are seen to be unfairly favouring them? Is it a cultural approach of ours, to play safe like true-blue bureaucrats, or is it driven by some kind of innermost sadistic tendencies that we harbour? I am clueless on this, but I do know this for a fact that we mistreat our contractors, and I also know that this can be most damaging for a project. Also, isn?? this behaviour surprising and downright funny, considering that the two entities, customer and contractor, have, in the end, a common purpose, which is to complete the project successfully.

Take the foregoing example. Going by our absolutely normal behaviour patterns, the project would have failed, (delayed, etc.) primarily because everyone in the whole chain who is a customer/owner would have dealt with the contractor down the line in the most non-cooperative and unhelpful manner. Like we say, in an organisation culture flows top down, in our example also, the way a customer will behave with the contractor, will largely depend on the kind of treatment he has in turn received as a contractor, from HIS customer. If DMRC were to follow the golden rule and embrace DAMEPL as a partner, this helpful attitude would have spread downward to DAMEPL, Siemens, and others. But alas, this is not to be! Even in a so-called ??ublic-private partnership??contract, the public sector makes a mockery of the word partnership, and proceeds to deal with the hapless ??artner(s)??in the traditional and time-tested contractor treatment formula.

One small corollary to this golden rule. A potential contractor is not necessarily a friend. We must maintain proper arms length distance in our interactions with all potential contractors, before the contract is awarded. During competitive bidding, during negotiations and during the finalisation process, the owner/customer will be well-advised to be distant, formal, fair and transparent with all competing bidders. But once the contract is signed with the successful bidder(s), they immediately become partners to embrace and not contractors to persecute. So we have to discriminate between the pre-contract and post-contract phases, in defining and shaping our relationship with our contractors.

To sum up, a project manager must view all contractors as partners, and not as a subordinate, nor as a necessary evil in a project. S/he must behave like a friend of the contractor, not as a foe. The contractor is very much a part of the project team, united in a common goal, and has to be treated as such. Remember, this is just a pre-condition to success in projects, not a complete solution to project management.

– SUMIT BANERJEE

Concrete

Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

Published

2 weeks ago

July 29, 2026

admin

Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

Concrete

UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

Published

2 weeks ago

July 28, 2026

admin

UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

Concrete

Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

Published

3 weeks ago

July 20, 2026

admin

Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.