Optimistic on road segment

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[/vc_column_text][vc_column_text]RDC would clock a growth rate of 25 to 30 per cent for the next three years Y-o-Y says Anil Banchhor, Managing Director and CEO, RDC Concrete (India) Pvt Ltd.

Elaborate on the technology adaptation seen in the construction segment in the last three years?

Newer types of machineries have come up to cater to the demand of the construction segment like Material Lifting andShifting, Plastering, Precast, reinforcement bending and batching plants etc. This has increased the efficiency significantly. In the construction equipment side, we have seen the adaptation of GPS, RFIDs, which RDC has already implemented in all trucks, plants, which has enabled the customers to have real-time access to the functions. Through the app, the customer can track the movement of the vehicles. Like at what time the truck entered the site, time it left the site and how much time it actually worked. This technological adaptation has helped us improve the customer experience, quality and productivity. This tech adaptation in the products is taking RDC much ahead in the industry.[/vc_column_text][vc_column_text]Is there a competition between ready-mix and precast?

At Present, there is no competition between the two segments. But clearly the construction industry is moving rapidly towards precast due to time saving in fast track project. However, the growth rate is not as fast as seen in ready-mix.  In the case of RDC also, we are moving towards pre-cast segment.  Precast, as of now, is limited to the metro cities and some other major cities. This is because the transportation of the precast element to longer distance is not as easy as it appears.               

Does precast a target consumer for ready-mix players?

Many of precast players are already using ready-mix concrete plants. Ready-mix players are major supplier of concrete for precast elements for construction of metros, whether underground or over the ground in the different parts of the country. So both ready-mix and precast significantly contribute to the growing infrastructure segment.[/vc_column_text][vc_single_image image="34141″ img_size="full"][vc_column_text]Do you expect ready-mix to grow at the same rate as in the past few years?

Yes, it will. In fact, ready-mix will grow faster as the government has announced major initiatives to boost infrastructure projects, including rural connectivity enhancement. Though there is a lot of potentials, precast may not see that kind of growth in the immediate future.            

Which all segments do RDC focuses on?And what is your take on the market in the coming months of the current FY?

RDC is focusing on road projects, low-cost housing and metro projects. The government has timely intervened and addressed the liquidity issues that had created roadblocks for infrastructure and reals estate projects. So we will see more momentum in the infrastructure segment in the coming months.[/vc_column_text][vc_column_text]Which segment do RDC getting more traction from?

At present, it is the road and low-cost housing. But after current FY (March 2020), we expect RDC would see more traction from real estate. That is because we foresee most of the issues pertaining to the real estate segment would be sorted out by then.                  

Three quarters are almost over, but road projects awarding remained at a very lower level. Your take on this?

Bids were put off because of the liquidity issue in the system apart from land acquisition. After that has been addressed, the road construction has picked up momentum. The hurdles that had stalled the road construction pace, the government is trying to remove. Alongside the awarding process, which was muted since the second half of last year also has started. One can say, the ease of doing the projects is better today when compared to a decade ago.[/vc_column_text][vc_column_text]Do you see the same rate of road capacity addition in the current year like that of last year?

We expect that it would be higher from the next year onwards. The steps taken by the government now will be reflected on the ground only a few months later. In the normal course, it takes 5 to 6 months to see actual results on the ground. Hence by the next financial year, there would be excellent visibility.      

What is your outlook for RDC for the next three years?

Last year we had a turnover of around Rs 800 crore, this year we would touch Rs 1000 crore, the following year would be Rs 1250 core and year after that would be Rs 1500 crore. That will be almost 30 to 35 per cent Y-o-Y growth for the next three years. RDC is the fastest-growing ready-mix segment with a 22 per cent growth yearly.[/vc_column_text][vc_column_text]What are the significant challenges faced by the ready-mix players? 

The major challenges are coming from the local players who are not abiding by the laws of the country like installation of plants which don't follow the rules, no approvals, no compliance with the pollution control norms, environmental clearance so on so forth apart from tax avoidance.

Do the stricter compliances pause a challenge for RDC?

Compliances are a challenge to meet. However, at RDC, we don't begin the operation of any plant until all compliances are in place. And whatever machines that are required as per the compliance norms.[/vc_column_text][vc_column_text]What makes RDC different from others and able to achieve a growth rate like this?

It is the people of RDC, which is unique. The culture of RDC makes it stand out, which is  built over a period of time. This culture makes people happy, and they keep working for the company as a single unit.[/vc_column_text][/vc_column][/vc_row]

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