Documente Academic
Documente Profesional
Documente Cultură
SUMMER INTERNSHIP
3CET REPORT
SUBMITTED TO:
Prof. R.K. Srivastava
SUBMITTED BY:
ABHISHEK SIDHU
2K16GA020
3CET REPORT
CONTENT
2 History 5
4 Board of Directors 8
5 Major Clients 9
6 Area of Operations 10
9 Financial Highlights 17
10 Human Resources 24
11 Appendix 30
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3CET REPORT
COMPANY OVERVIEW
YEAR OF INCORPORATION
Established as a Government of India Enterprise in the year 1960, National Building
Construction Corporation Ltd. (NBCC) has come a long way. The Company now
boasts of its status as a Navratna CPSE, Conferred upon it by the Govt. of India on
June 23, 2014. A construction company which under the Ministry of Urban
Development, Govt. of India, the company provides Civil Engineering Construction
Services in wide Gamut of Projects of varied nature, complexities & at socio-
political Geographical locations, both at home & overseas.
AN ISO COMPANY
NBCC has obtained ISO 9001:2008 certification for its project management and
consultancy division. The corporate mission inter alia enshrines building a high
degree of customer satisfaction and providing services conforming to ISO
9001:2008 series.
AUTHORISED CAPTIAL
The authorized and paid-up share capital of the corporation stand at Rs.150 crore.
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CORPORATE VISION
To be a world-class construction business company attaining global standards of
sustainability, quality, customer relations and responsiveness.
MISSION
To be a leading company, with high brand equity in construction business, offering
sustainable, innovative and cost-effective construction products and services
contributing to national wealth, uploading responsibility for the environment and
promoting well-being of the shareholders.
OBJECTIVES
To be the first ranked construction business company in India and to adopt best
practices and state-of-the art technology in construction business to achieve a
premier position and gain sustainable competitive advantage.
MOU PERFORMANCE
NBCC is signing MOU with the ministry of urban development since 1992-93. The
performance of NBCC has been rated EXCELLENT by the department of public
enterprise for all the years except 2012-13, when NBCC was rated VERY GOOD
AREAS OF OPERATION
Companys present areas of operation are categorized into three main segments
1. Project Management consultancy (PMC)
2. Real Estate
3. Engineering procurement contracting (EPC)
SL No SEGMENT % OF TURNOVER
1. PMC 90%
2. Real Estate 5%
3. EPC 5%
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HISTORY
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Recognition:
NBCC has been conferred with a series of awards amongst which the much-coveted
ones are:
TOP HONORS FOR NBCC AT INDUSTRY EXCELLENCE AWARDS - 2016
NBCC RECEIVES FASTEST GROWING CONSTRUCTION COMPANY AWARD - 2016
NBCC RECEIVES INDIAS TOP CHALLENGERS AWARD - 2016
NBCC RECEIVES IGBC GREEN CHAMPIONS AWARD - 2016
NBCC RECEIVES DUN AND BRADSTREET PSU AWARDS - 2016
IBC AWARD FOR EXCELLENCE 2014-15
LIFE TIME ACHIEVEMENT AWARD - 2016
LEGEND CMD OF THE YEAR FOR LEADERSHIP IN CONSTRUCTION SECTOR
WORLD BUSINESS LEADER AWARD - 2016
15TH ANNUAL GREENTECH SAFETY AWARDS - 2016
WORLD LEADER BUSINESS PERSON AWARD - 2016
GOLDEN PEACOCK BUSINESS EXCELLENCE AWARD - 2016
SHRI YOGESH J P SHARMA, CHIEF GENERAL MANAGER (ENGG.), NBCC, SEEN
RECEIVING THE INDIVIDUAL EXCELLENCE AWARD
NBCC CMD CONFERRED HOUSING INNOVATION EXCELLENCE AWARD - 2015
NBCC SMART HUB BAGGED GOLD AWARD IN TRADE FAIR UNDER PSU
CATEGORY
CMD, NBCC HAS BEEN CONFERRED BEST PSU CMD OF THE YEAR - 2015 AWARD
SWACHH BHARAT RATNA AWARD - 2015
In addition, the company has also been receiving Excellent rating from Govt. of
India consistently since 2004.
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BOARD OF DIRECTORS
SL No NAME DESIGNATION
1 Dr. Anoop Kumar Mittal Chairmen-cum-managing Director
2 Shri S.K. Pal Director (Finance)
3 Shri S.K. Chaudhary Director (Projects)
4 Shri Rajendra Chaudhary Director (Commercial)
5 Shri D.S. Mishra Nominee Director
6 Smt. Jhanja Tripathy Nominee Director
7 Shri Ashok Khurana Independent Director
8 Shri C. Subba Reddy Independent Director
9 Shri C.R. Raju Independent Director
10 Shri Rajendrasinh G. Rana Independent Director
11 Shri Sairam Mocherla Independent Director
12 Major General Tajuddin Moulali Independent Director
Mhaisale
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MAJOR CLIENTS
NBCC has able to sustained and credible performance in the area of its operation
over the years, has earned the organization, some valuable clients. Major among
them are:
Union Ministries
Ministry of urban development
Ministry of housing and poverty alleviation
Ministry of home affairs
Ministry of defence
Ministry of rural & employment
Ministry of power
Ministry of commerce & industry
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AREA OF OPERATION
Redevelopment work
Construction of roads,
colleges, hospitals and
other industrial
structures
Residential Aparment
NBCC Real Estate
Commerical Buildings
EPC
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This segment contributes about 85% to 90% in the annual revenue of Company
growth, which is highest among the entire segment. The area covered within its
umbrella include roads, hospitals & medical colleges, institutions, offices, airports,
bridges, industrial& environmental structures, redevelopments projects and etc.
Re-development Model is a game changing strategy for the company. Where the
company sources projects from the government wherein, NBCC carries out re-
development of government properties, this strategy involves optimum utilization
of the existing land parcels by applying a higher floor area ratio (FAR). The model
ensures that no funding is required from the government for redevelopment of
these properties. This is done by utilizing the available land as a resource and raising
the funds for meeting the project expenses through leasing of commercial office
space constructed on a part of this land.
The land remains with the original owner (government agency) the entire project
will be managed by NBCC. The flats developed can be given on long term lease to
PSU/ General public. This model is a win-win situation for stakeholder.
The company has secured various projects worth Rs.17516.53 crore, which
included two big ticket assignments both located in New Delhi. The first includes
the development of infrastructure works at AIIMS and the other entails the
construction of an integrated exhibition-cum-convention Centre for ITPO and other
projects include the re-development of (GPRS) colonies in Sarojini Nagar, Netaji
Nagar and Nauroji Nagar.
Under PMC the company is taking contract from the clients and making a sub-
contract with other companies, and their Profit margin is fixed between 8% to 10%
on CTC (Cost to Complete)
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Condition 1: -
CLIENTS NBCC SUB-CONTRACTOR
Let us assume that there is MOU between Now the company will enter into sub-
the client and NBCC for the construction contracts with various contractors for
of the XYZ building for Rs 500 crore, where construction of each unit of the projects
the company will take a profit margin of with help of E-tendering, but under the
10%, which means Rs 550 crore, where CTC of 500 crores.
company margin will be 50 crores.
Condition 2: -
CLIENTS NBCC SUB-CONTRACTOR
(Re-development model)
Now the company will enter into sub-
Let us assume that there is MOU between contracts with various contractors for
the client and NBCC for the construction construction of each unit of the projects
of the XYZ building for Rs 500 crore, where with help of E-tendering, but under the
the company will take a profit margin of CTC of 500 crores.
10%, which means Rs 550 crore, where
company margin will be 50 crores. If a
Client(Government)does not have money
to pay for construction. In that case, NBCC
can propose client to sell a small part of
building occupied space to private
investor in exchange for Rs. 550 crore.
That same amount can be used for
construction and to pay NBCC for their
services.
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REAL ESTATE
The company enter into this segment in 1985, which contributes about 4% to 5%
in the annual revenue of the company growth, where the company constructs
residential & commercial real estate projects by buying the land from private and
government agencies alike develops the land and sells it off.
For overall valuation of the projects they contact to IPC (International Property
Consultants) like Knight Frank, Cushman and Wakefield, Colliers International and
etc.
Real estate is totally dependent on the environmental factors which include Micro-
Individual needs or demands, Income level and Number of buyers and sellers and
Macro- Economic Conditions, RBI monetary policy)
The company spent around 3% on marketing of their projects, where they use ATL
(Above The line) Promotion mix tools like advertising, hoarding in order to have a
mass reach or awareness among the people.
Commercial spaces are allotted with the help of E-auction and residential flats are
allotted on basis of 1st draw of lots. Profit margin in this segment is much higher as
well as risk factor is also very high, since it is totally dependent on the current
market conditions.
The recent establishment of real estate regulatory authority as the apex body
governing the Indian real estate sector, the establishment of 100 smart cities in the
first phase, atal mission for rejuvenation of urban transformation and the
ambitious Housing for all by 2022 vision of the government will certainly act as
strong growth catalytic.
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Under this segment, the company is executing projects such as chimneys, cooling
towers and civil works for power plants which will encourage construction work in
power sector. It is also known as engineering procurement through open market
operation. This segment contributes around 5%-6% in the annual revenue of the
company growth.
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In order to fulfill its social mandate, NBCC has been engaged in various CSR
activities all across the country. Under various schemes of CSR, the Company is
participating in execution of Bio-digester Toilets in village schools at various
locations of the country, providing scholarships to the poor school children for
their education, helping in skill development of workers in various trades etc.
OVERSEAS OPERATIONS
NBCC ventured into Overseas Operations in the year 1977, executing projects of
diverse nature in countries like Libya, Iraq, Yemen, Nepal, Maldives, Mauritius,
Turkey, Botswana. Presently, the Company has its presence in Maldives, Turkey
and Botswana implementing various projects and earning consistent revenue.
NBCC has opened an office in Oman and also signed an MoU with Al Naba Services
LLC in Oman in order to jointly explore and secure infrastructure projects in
Sultanate of Oman & neighboring countries. To further its prospects overseas, the
Company has also entered into MoUs with Construction Industry Development
Board Holdings, Malaysia and Form Yapi Malzemeleri Insaat Samayi Ticaret Ltd.,
Turkey.
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TOWARDS GREEN
NBCC has successfully executed LEED certified Green Building project called Indian
Institute of Corporate Affairs (IICA), Manesar with captive solar power, solar
heating and energy saving system. This iconic Green Building for the Ministry of
Corporate Affairs at Manesar, Haryana, which earned NBCC a niche for itself in
construction of Green Building, was inaugurated by the Honble Prime Minister of
India in April, 2012. Indian Green Building Council of the Confederation of Indian
industry has awarded the prestigious LEED India Gold Rating to this building. This
is the first Government Green Building in the millennium city of Gurugram to have
received the esteemed IGBCs Gold rating. Along with that, the other Green
Building executed by the company include:
Civil Services Officers Institute (CSOI) in New Delhi, a GRIHA 3-Star Building
National Institute of Food Technology Entrepreneurship and Management
(NIFTEM) in Sonepat, Haryana.
Aaykar Bhawan in Noida (UP)
SIB, Kolkata (WB)
Coal India Building, Kolkata (WB)
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NBCC had also entered into MOU with The Energy and Resources Institute (TERI)
for implementing projects of NBCC with Green compliance. TERI shall provide
advice and consultancy to NBCC for undertaking future construction work as per
green building and sustainable building concepts.
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FINANCIAL HIGHLIGHTS
Shareholders
5,082,347
29,106,116
36,223,616
69,683,510
84,904,411
675,000,000
Promoters Financial Institutions General Public Foreign Institutions Others NBFC and Mutual Funds
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Consolidated
During the year, the Company total income from operation Increased by 32.69%
i.e. to Rs. 5838.26 cr as compared to 4399.84 cr previous year and Profit after tax
Increased by 11.80% i.e. to Rs. 311.11 cr against Rs. 272.28 cr previous year.
Standalone
During the year, the Company total income from operation Increased by 32.37%
i.e. to Rs. 5827.10 cr as compared to 4402.11 cr previous year and Profit after tax
Increased by 11.36% i.e. to Rs. 308.79 cr against Rs. 272.30 cr previous year.
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VALUATION OF RATIO
CONSOLIDATE
Mar 16 Mar 15
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STANDALONE
Mar 16 Mar 15
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Dividend
Your Direction have recommendation dividend of Rs. 2 per equity share of face
value of Rs. 2 each (i.e. @100%) for the financial year 2015-16, subject to the
approval of the members in the ensuring Annual General Meeting. The total
dividend payable works out to Rs 120 cr (Excluding dividend distribution tax of Rs.
24.43 cr).
The dividend payout has been recommended considering the development of
companys internal accruals for growth plans.
CHARTS
Turnover: -
6000
5000
4000
3000 5749
4361
4009
2000 3429 3187
1000
0
2011-12 2012-13 2013-14 2014-15 2015-16
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Net Profit: -
350
300
250
200
309
150 277
247
190 208
100
50
0
2011-12 2012-13 2013-14 2014-15 2015-16
Net Worth: -
1600
1400
1200
1000
800 1489
1324
600 1127
951
795
400
200
0
2011-12 2012-13 2013-14 2014-15 2015-16
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Segment-Wise Revenue: -
Revenue
5.35%
4.77%
89.88%
Segment-Wise Pbit: -
PBIT
7%
22%
71%
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HUMAN RESOURCES
With a view to attaining operational excellence, rigorous and constant efforts have
made in human resource to meet the organizations expectations and keep pace
with a dynamic industrial scenario.
Several new policies have been introduced while few of the old policies have been
revisited. Some of the new policies implemented deal with incentives on acquiring
higher/additional qualification, training based on self-nomination to encourage
self-learning, new internship/mentor-mentee development, guidelines for
premature retirement and coverage of management trainees under the group
medical scheme.
In line with the Governments Initiatives, the Company has done away with
interview for B, C and D workers. The had also launched the Give It Up campaign
for voluntarily surrendering the domestic LPG subsidy and introduced KRA-based
appraisal for employee performance evaluation. Yet another notable initiative
aimed at paperless communication for routine internal function has demonstrated
an encouraging response from employees on the internet. It is noteworthy that all
application for fresh recruitment are managed online.
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BOARD LEVEL 2 1 - - - - 3
CVO - - - - - - 1
A 424 152 132 12 7 - 727
B 55 6 25 4 19 - 109
Group A, B, C& D.
C (I) 90 - - - - - 90
C (II) - 3 54 4 - - 61
C (III) - - - - 42 1012 1054
D - - - - - 51 51
TOTAL 571 162 211 20 68 1063 2096
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ORGANIZATION STRUCTURE: -
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APPENDIX
REFERENCES: -
http://economictimes.indiatimes.com/nbcc-(india)-ltd/stocks/companyid-
4531.cms
http://profit.ndtv.com/stock/nbcc-_nbcc
http://www.moneycontrol.com/financials/nbcc%20(india)/profit-
lossVI/NBC01
http://nbccindia.gov.in/nbccindia/nroot/njsp/AboutUs.jsp
56th Annual Report 2015-16
HR Manual (Confidential)
Business Model Given by Mentor
29