Académique Documents
Professionnel Documents
Culture Documents
COMPANY NAME:
AFCONS INFRASTRUCTURE LTD.
SUBMITTED BY:
MAYA.I.DESAI
JAYINEE.H.BOLE
(YEAR 2008-2009)
PROJECT GUIDE:
DR. SUBIR.BHATTACHARYA
PROF. N.S.RAJAN
DECLARATION
We hereby declare that the project entitled “Key Result Areas” submitted as a
part of the study of PGDM Degree is our original work and the Project has not
formed the basis for the award of any other degree, associateship, fellowship or
any other similar titles.
Place: Mumbai.
(Maya.I.Desai)
(Jayinee.H.Bole)
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FOR DOWNLOADING THIS REPORT AND FOR MORE
PROJECTS, ASSIGNMENTS, REPORTS ON
MARKETING,
MANAGEMENT,
ECONOMICS
MARKETING MANAGEMENT,
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COST ACCOUNTING
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CERTIFICATE
This is to certify that the project entitled “Key Result Areas” is the bonafied
Atharva School of Business, during the year 2008-2009 in the partial fulfillment of
the requirements for the Degree of Post Graduate Diploma in Management studies
and that the project has not formed the basis for the award of any other degree,
Place:: Mumbai.
(Prof. N.S.Rajan)
ACKNOWLEDGEMENT
We would like to thank our family and friends who supported us to complete
our project successfully.
INDEX
3. Company Profile 14
6. Report 41
7. Format 50
9. Conclusion 53
10. Suggestions 55
11. Bibliography 56
INTRODUCTION TO TOPIC
These cover areas that make a difference to the survival of your business.
To be successful organizations have to be good businesses. The most successful
businesses in the UK have one thing in common - they set very clear key results
for their business.
-They identify the key steps that take the business to where they want it to be; they
are the short-term goals that help them reach the longer-term target. - They help
motivate employees to a common purpose.
- They give a clear measure of what they are achieving as a business.
The Key Results will be dependent on your business and the long-term targets
that you have, but they might include some of the following:
Financial:
Increased sales, profit margins, etc.
E.g. higher food gross profit, room rates, visitor spend etc.
Product or Service:
Improving existing products or services to match customer requirement more
closely.
E.g. establishing ‘No Smoking areas’; upgrading bedrooms; greater range of
facilities.
Customers/Clients:
Acquiring new customers or improving customer satisfaction.
E.g. Short breaks, increased repeat business, family Sunday lunches, gourmet
evenings.
Quality:
Gaining entry in a tourist guide; achieving Hospitality Assured; setting targets for
customer/visitor satisfaction.
Operations:
Introducing IT systems or upgrading premises.
The word seems to have originated from Pakistan into Asia that carried over to
the U.S, and throughout the first half of the 20th century was used to refer
primarily to military installations. The term came to prominence in the United
States in the 1980s following publication of America in Ruins (Choate and Walter,
1981), which initiated a public-policy discussion of the nation’s “infrastructure
crisis,” purported to be caused by decades of inadequate investment and poor
maintenance of public works.
"Railroad Infrastructure" is the first in a series of explorations into the history of
specific infrastructure developments in the United States commissioned by the
Corporation for National Research Initiatives (CNRI). A not-for-profit
organization, CNRI was created in 1986 to foster research and development for the
National Information Infrastructure (NII). Among CNRI's major goals is to identify
and nurture infrastructure technology and services that can unlock the world of
information and knowledge. Although the components of the evolving information
infrastructure represent new technical, social and economic challenges, there is
much to be learned from historical precedents, such as the evolution of the railroad
infrastructure, etc.
By all accounts, "take-off" for the railroads occurred in the 1850s. Before that
time, the lines were mostly local. During and after the 1850s, however,
construction accelerated rapidly, and relatively short routes were linked to provide
longer distance traffic. As the first "Big Business," the major railroad companies
pioneered modern business practices and organizational structures to cope with
their own size, expansive operations, and internal complexities. With increasing
size, moreover, they also became more similar and discovered advantages to
cooperation in a climate otherwise characterized by fierce competition.
Construction of railroads, like public works projects since the 1780s, was a joint
public/private enterprise. The majority of the funding appears to have come from
private sources. But public intervention played an important role, in both
increasing investors’ confidence and ensuring that sufficient funds would be
available to complete construction.
In subsequent years the word has grown in popularity and been applied with
increasing generality to suggest the internal framework discernible in any
technology system or business organization. The term “critical infrastructure” has
been widely adopted to distinguish those infrastructure elements that, if
significantly damaged or destroyed, would cause serious disruption of the
dependent system or organization. Storm or earthquake damage leading to loss of
certain transportation routes in a city (for example, bridges crossing a river), could
make it impossible for people to evacuate and for emergency services to operate;
these routes would be deemed critical infrastructure.
Indian Infrastructure: a catalyst of inclusive growth
Indian infrastructure is witnessing a major overhaul ranging from small villages
through metropolitan locations. Infrastructure industry is different from other
industries because of its vast coverage of areas such as roads and bridges, railways,
airports and terminals, aviation, water supply and sanitation, electricity, power
generation, ports, telecommunication, and irrigation.
According to approach paper of the 11th plan (2007-08 to 2011-12), investment in
infrastructure is projected to increase from current level of 4.6% of GDP to an
estimated 8%. To enable a rapid growth, Indian government has been taking
measures to open infrastructure sector for foreign and private investment. World
Bank and Asian Development Bank are some of agencies that are engaged in
funding few large-scale infrastructure projects. Government's supporting laws and
several tax breaks help private players invest in this sector.
Breadth of employment opportunities in infrastructure industry far exceeds
combined opportunities in many other industries. This industry offers employment
to almost every social class - from unprivileged and underserved section to people
with specialized skills and professional background.
Opportunities for lower section of society:
Indian infrastructure sector offers various opportunities to unprivilege, illiterate
and uneducated people. Building and road construction, carpentry or bench work,
agricultural farming, drilling, painting and spraying, welding, fitting, plumbing,
cutting, punching, soldering, drafting, brazing, security, automobile and repairing,
masonry, driving, fiber cutting, rubber work, cement work, lamination, operating
crane and other heavy vehicles are some of the areas where millions of people earn
their wages.
People with work-related skills:
Infrastructure development employs a number of less educated people with
vocational training in areas such as - site supervision, civil and mechanical work,
machine operation, aircraft body and bonded structure repair, architectural drafting,
assembling and fabricating, automotive work, lab work, billing, chemical
equipment control, data entry and computer operation, conveyer belt, database
administration, networking, electrical and electronics, forestry, gas supply, machine
installation, repair, medical transcription, and power plant.
People with graduation and above:
Every new infrastructure project comes with hundreds of opportunities for
managerial and technical leadership. Engineers, MBAs, Project Planners, and
Doctorates are in high demand to lead several large projects.
In spite of countless opportunities present in infrastructure space, a large section of
population remains unaware of them. One of the main challenges for leadership in
this industry is to educate unaware section of the population on various job
opportunities, and arrange training programs for skill-development. With increased
awareness and training, infrastructure industry displays the confidence to remain a
leading engine of India's all-inclusive growth.
Infrastructure Industry:
Construction
Construction activity is an integral part of a country’s infrastructure and industrial
development. The industry is a vital part of the economy with an output equivalent
to about 5.2% of the country’s GDP.
The industry is highly fragmented with a few large players and several
medium to small-scale entities. Infact, worldwide the construction industry
overwhelmingly consists of small and medium-sized enterprises. The industry is
highly labor intensive and is the second largest employer after agriculture in the
country. In addition to those directly involved in the construction process, the
industry also accounts for a large proportion of secondary employment created due
to forward and backward linkages with ancillary industries.
The construction industry functions in a multi-tier system. The project owners
contract the project to the main contractor, who then awards sub-contracts to
several sub-contractors depending on the type of jobs, such as plumbing,
electriÞcation, piling, etc involved in the main contract. The sub-contractor, in turn,
awards smaller jobs on piece-rate basis to labor contractors, thekedars, or petty
contractors. These contractors then carry out the work with their labor force, which
mainly comprises of daily rated temporary/casual workers.
Being largely unorganized, the industry suffers from low mechanization. Low
productivity has as much to do with the tendering process as with the unskilled
labor. The contracts are awarded on the criteria of lowest price bid. The potential
and competence are overlooked, which is why the construction sector has deluge of
project delays and cost over-runs besides poor quality output.
Lack of adequate finance has also been an impediment to the growth of the
industry. Due to inconsistent, inadequate returns and inapt security, banks and
financial institutions have shied away from funding the infrastructure projects. This
has also been the reason for low mechanization in the industry. It is only a handful
of big companies like L&T, Hindustan
Construction, Gammon India, Nagarjuna Construction etc that are able to bring in
the latest construction equipment and material.
The sector’s performance was largely dependent on the central government’s
spending on physical infrastructure. The share of construction in GDP (constant
prices) went down from 6.1% in 1970.71 to 5.2% in 2004.05, respective of
government’s inability to bolster infrastructure development. Lack of adequate
infrastructure has in turn constrained the growth of the economy.
The sector was accorded the status of industry in the year 2000 only. Since
then, there has been increased emphasis on involving private sector for
infrastructure development through public private ownerships and
mechanisms like BOT (Build Operate Transfer),
BOOT (Build Operate Own Transfer) and BOLT (Build Operate Lease
Transfer). The last few years has seen the central government take up huge
infrastructure projects, mainly the Golden Quadrilateral, East-West and North-
South corridor, port connectivity, up-gradation of international airports, creating
berths and container terminals at seaports, setting up thermal, hydro and nuclear
power plants and developing canal structures for increased and improved water
supply. All these projects are underway through private participation. Foreign
construction companies have also forayed into the Indian construction industry
through the joint venture route.
In 2005, Government permitted 100% foreign direct investment in the
construction sector with the liberty to repatriate profits after a three-year
period.
Recent Trends
Order inflow for construction companies’ gains momentum
With conversion of healthy order backlog into revenues, majority of construction
companies continued to post accelerating sales growth in the December 2007
quarter. Aggregate sales of 63 companies that declared their results grew by a
robust 45.8%. However, profitability came under pressure because of rising
expenses. The aggregate PBDIT and PAT margin of the industry remained flat
during the quarter. In the backdrop of favorable investment climate to support a
sound growth trajectory, order inflow for the construction sector is gaining
momentum. This is reflected in the swelling order-book-to-sales ratio of major
construction companies. As at the end of December 2007, order book of top six
companies in the sector was at least twice their trailing four quarter sales. Healthy
order–book position provides enormous visibility to the revenue and earnings
growth for construction companies in the coming quarters.
Construction companies continue accelerating sales growth
With conversion of huge orders received over the recent quarters into revenues,
majority of the construction companies continued to post accelerating sales growth
in the December 2007 quarter. Among the 15 largest companies in the sector, year–
ago data for two companies –
Maytas Infra and Consolidated Construction Consortium was not available. Of the
remaining 13 companies, seven registered at least 55% growth in sales. Lanco
Infratech topped the list with a whopping 204.3% growth. Jaiprakash Associates
was at the bottom of the list with its sales stagnating at Rs.900cr. A huge other
income of Rs.102cr propelled its total income, which grew by 7.6%. Rising
investment in civil and industrial infrastructure has ensured a massive surge in
order backlog for construction companies. This is reflected in their healthy order-
book-to-sales ratio. As at the end of December 2007, order–book of top six
companies in the sector was at least twice their trailing four-quarter sales. Patel
Engineering and Punj Lloyd had the highest order-book-to sales ratio of around
four times.
Order backlog at the end of December 2007 quarter (Rs. cr)
.
COMPANY PROFILE
MISSION
“To be a Prominent Transnational Infrastructure Company
recognized for Business Innovations,
focused on Total Satisfaction and
Enhanced Value Creation for
all its Stakeholders."
OVERVIEW
AFCONS INFRASTRUCTURE LIMITED, is the premier - most engineering,
construction, rehabilitations and infrastructure companies in India with an annual
turnover of around 400 Million USD in this current financial year, which is
expected to touch 1.0 Billion USD in about two years time. Over the last five
decades, AFCONS has emerged as the leader in its business field by continuously
delivering its world-class services in the areas of Marine Works, Highways,
Bridges, Power Houses, Tunnels and other General Civil Engineering Projects
Since its establishment in 1959, AFCONS has played a pivotal role led the growth
of construction industry, creating in the process customer trust and enviable
reputation for itself.
AFCONS is a certified with ISO 9001:2000, OHSAS 18001:1999 and ISO
14001:2004 company and conduct its business through an established Quality
System. AFCONS has a commendable record in terms of safety at their various
project sites and has received a number of awards as well as appreciation letters
from their clients.
HISTORY
1959 - Born as Rodio Hazarat Co, a partnership between Rodio Foundation,
Switzerland and Hazarat & Co., India
1976 - Consequent to the exit of Rodio Foundation Engineers and Hazarat & Co,
renamed as Asia Foundations and Construction Limited wherein from a partnership
it became a closely held private limited Company with equity shares distributed to
the employees
1977 - Became a deemed public limited Company
1993 - Shipping Credit and Investment Corporation of India (SCICI) became a
20% shareholder, which shareholding was transferred to ICICI pursuant to the
merger of SCICI with ICICI
1997 - Became a full-fledged public limited Company by the name of “Afcons
Infrastructure Limited”. In 1998, ICICI subscribed to further shares in the
Company, which made ICICI the single largest shareholder with 47.37% equity
stake in the Company.
2000 - Shapoorji Pallonji Group acquired 53.96% shareholding in the Company in
2000 where 47.37% was acquired from ICICI Ltd. and 6.59% was acquired from
the Hazarat family.
AWARDS AND CERTIFICATES
7. Tankers Berth Jetty Trestle for RPL, Jamnagar was awarded ACCE
FOSROC Award for Effective use of construction chemicals in
Civil Engineering Project in the year 2001 by Association of
Consulting Civil Engineering (India), Bangalore.
Details
8. Airoli Bridge, New Mumbai won the first prize Award in the
competition for 6th Most outstanding Bridge National Awards 1999
- Category I by Indian Institute of Bridge Engineers.
9. Airoli Bridge, New Mumbai was awarded ICI-MC-Banchemie
Award for the Best concrete structure Award in the year 1999 by
Indian Concrete Institute.
10. Mandovi Bridge, Goa was awarded THIRD prize in the competition
for Most outstanding Bridge National Awards 1995 - Category II by
Indian Institute of Bridge Engineers in the year 1995.
11. Sharavati Bridge at Honnavar was awarded SECOND prize in the
competition for Most outstanding Bridge National Awards 1995 -
Category I by Indian Institute of Bridge Engineers in the year 1995.
ALLIANCES
Afcons has business alliances with many multinational organizations like:
Recently, Afcons has also completed Two Nos 14000 cum capacity LNG Tanks, 80
m dia and 40 m height for Ishikawajima Harima Heavy Industries Co., Japan for
LNG Petronet project at Dahej. This was executed ahead of time schedule and to
the complete satisfaction of client.
Some of the major civil engineering projects carried out by Afcons are highlighted
below
1.Construction of workshops "A" "B" and Bldg "D1" for Mazgaon Dock Ltd
2.Construction of workshop "C" including covered Dry Dock and Bldg, "D2" for
Mazgaon Dock Ltd
3.North Dry Dock at Visakhapatnam - Diaphragm Wall & Civil work - phase - I.
for Director General Project Visakhapatnam
4.Construction of covered Building Dock Complex at Visakhapatnam for
Hindustan shipyard Ltd.
5.Building of Special Berthing facilities at Visakhapatnam for Director General
Naval Project Visakhapatnam
Major Projects in progress
1.Construction of main civil works of desilting arrangement for KolDam Hydro-
electrical Project for NTPC.
2.Construction of marine, civil and pipeline works, Jamnagar for Reliance
Infrastructure Ltd.
3.Design and Construction of Cut & Cover Tunnel Including Switchover Ramps
and One Underground Station in Airport Area, for DMRC.
4.Site Grading Works at Kochi LNG Terminal, Kerala for M/s Petronet LNG
Limited.
5.Construction of 2Nos LNG Storage Tanks at Kochi for IHI Corporation, Japan.
6.Construction of 9 Sheds at Pipavav Port for E complex Pvt. Ltd
7.Fabrication of 2 Nos. 600 Tonne Goliath Cranes for Pipavav Shipyard Ltd.
8.Civil Works at Kakinada for Reliance Industries Limited.
V] PIPELINE
Seeking newer horizons, Afcons also entered into laying of land and submarine
pipelines. The company executed two and half KM long pipeline across the Thane
Creek for HPCL and NOCIL. A major feature of this was the use of 200 Tonne
capacity linear winch for laying the pipe by bottom pull method.
Afcons has executed in excess of 7500m of offshore Pipeline & in excess of
41000m of on Jetty / land pipeline.
AFCONS is presently executing a major EPC contract for laying of cross country
pipeline for ONGC in Assam and have decided to enter into the construction of Oil
& Gas Pipeline in a big way.
Major Projects in progress
1.Modernisation of Marine Oil Terminal Berth J1 to J3 at Jawahar Dweep Mumbai
for Mumbai Port Trust.
2.Crude Unloading Jetty & Associated Facilities onshore cross country pipeline
refinery at Nagapattinum for CPCL.
3.Construction of intake & discharge structure for Dabhol Plant for M/s. Bechtel
International Inc U.S.A.
4.Onshore Pipeline & Trestle Bridge at Visakhapatnam for HPCL.
5.Submarine Pipeline & Marine loading arms, Visakhapatnam for HPCL.
6.Fabrication & laying of effluent disposal conduit including concrete coating,
corrosion protection coating & associated works for effluent pretreatement project
at Uran for ONGC.
7.Submarine Oil pipeline across Thane Creek for NOCIL & HPCL.
Some of the other projects are in the following segments:
– TUNNELS
– INTAKE AND OUTFALL STRUCTURES.
– OVERSEAS PROJECTS
HUMAN RESOURCE
REINFORCE YOUR CAREER WITH A CONSTRUCTION GIANT
AFCONS INFRASTRUCTURE LIMITED - “An ISO 9001-2000 Company” a
pioneer in the construction field for over 5 decades having executed large and
sophisticated civil engineering projects in India and abroad, primarily focusing on
Marine works, bridges/flyovers, Roads, Highways, Power Projects, LNG tanks and
large civil works.
In order to strengthen their team of highly skilled human resources, and man their
projects at various sites all over India they invite dynamic Professionals with an
impressive track record.
INFRASTRUCTURE
I] FOUNDATION EQUIPMENTS
Afcons Infrastructure Limited is engaged in various types of prestigious projects
for National development. To execute these Projects as per schedule, they deploy
varieties of equipment. To operate, maintain, repair and overhaul, they have
competitive team in all levels.
In addition to increase the quantity of equipments, there is a constant up-gradation
of technology. For example, from tripod piling system to crane mounted rigs to
integrated piling rigs.
Extensive use of imported Desander has brought in high saving in Bentonite
installations and consumptions.
Piling hammers also have been bought to drive steel piles.
Types of Foundation Equipments:
• Integrated Piling Rigs
• Piling Hammers
• Vibro Hammer
II] MARINE EQUIPMENTS
They are equipped with several number of Barges, Pontoons and Jack Up
Platforms to operate any difficult job on / off shore.
Their varieties of equipments help them to undertake challenging assignments in
marine structures like Pile Crushing, rock socketed piling in deep water,
breakwater construction etc.
Types of Marine Equipments
• Jack up
• Pontoons
• Barges
QUALITY POLICY
The policy of AFCONS INFRASTRUCTURE LIMITED is to conduct their
construction business through an established Quality Management System, which
aims to achieve Customer Satisfaction by providing goods and services to the
stated expectation of their customers and in the process improving company's
competencies and competitiveness.
They shall achieve this through continual improvement of their business processes
and effective human resource management. They value training and sharing of
information at all levels with in the organization.
QUALITY OBJECTIVES:
CONTACT DETAILS
Address:
“AFCONS HOUSE” 16 Shah Industrial Estate,
Veera Desai Road, Andheri (West),
Azadnagar P.O.,
Mumbai - 400 053 INDIA
Phone No:
+91 (22)-6677 3100 Ext 138
Fax No:
+91 (22)-2673 0047/2673 1031
Website:
www.afcons.com
It is actually not very easy to implement and practice KRA in organizations. It may
be three small words Key Result Areas, but when it comes to studying, it is a very
vital and a vast concept. Many of them think that KRA is a new concept. However,
it is not so. KRA always existed, but it was given its due recognition much later. It
is of so much importance that it can either make or break an organization. An
organization’s success and failure is determined by its KRA. An organization will
fail to achieve its objectives if its KRA is not implemented correctly and carefully.
There are many common queries and questions regarding KRA that comes to a
person’s mind, that are discussed in detail further.
AFCONS INFRASTRUCTURE LIMITED has implemented KRA in its
organization to a certain extent. As it is into infrastructures, they have many sites.
Moreover, for every site they have a Project Manager (PM). Now it is the duty of
the PM to see to it that every individual working on the project has well understood
his KRA. And for this the PM first should be clear about KRA. While
implementing KRA, a very important thing is to set targets. However, in this
organization, they say that targets should be set on a weekly basis because then it
appears to be more realistic. Moreover, other advantage they feel of setting weekly
targets is that employees know that they have only seven days; hence, they will
strive to achieve that target. Still this organization has
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