HINDUSTAN PREFAB LIMITED

 Brief about the Company

Govt. of India set up Hindustan Housing Factory in the year 1950 at Jangpura, New Delhi – 110 014 on a plot of land measuring 28.639 acres primarily to manufacture prefabricated houses for the displaced persons from West Pakistan (now Pakistan).  Later on the company diversified its activities into pre-stressed concrete electric poles and PRC railway sleepers for Railway.  It was converted into private company in 1953 and established as a PSU in 1955 under the Ministry of Housing & Urban Poverty Alleviation.   

In 1978, name of the company was changed from Hindustan Housing Factory Limited to Hindustan Prefab Limited having its registered office at Jangpura, New Delhi – 110 014.

Vision and Mission of the Company  

The vision and mission for HPL are designed in line with the Company’s objectives – establishing a presence in the modern construction sector and furthering its position in the market over the coming years.  The vision and mission are elucidated below: 

Vision 

Ø                  To become a "World Class" organization in the field of Civil Construction; 

Ø                  To embrace with latest prefab technology to cater the ever growing demand of housing and infrastructure developments in the country; 

Ø                  To enter into Real Estate for providing durable housing solutions to the people while acting as a market stabilizer. 

Mission 

“To Enhance Pre-Fabrication Methods for Augmenting Innovative Technologies for the Quality and Fast Construction Techniques at Economical Cost” 

Strength  

Ø                  Potential to leverage the PSU status and the MoHUPA advantage to carve the housing and sanitation market;

Ø                  Thriving order book – sustaining revenue flow and opportunities to tap diverse public and quasi-public orders;

Ø                  Land as a strategic asset 

Opportunities 

Ø                  Growth in construction  industry and gaining acceptance for newer technologies in the prefab domain;

Ø                  Government investment in infrastructure reforms and housing projects

Ø                  Focus of Government departments on outsourcing construction projects  

Management 

HPL is managed by the following Board of Directors:  

·                    Sh. Jaiveer Srivastavaa, Chairman & Managing Director full time Official Director of HPL took over charge of CMD w.e.f. 01.08.2006;

·                    Sh. S.K Singh, IAS (Joint Secretary - Housing), Ministry of Housing & Urban Poverty Alleviation, Part Time Official Director of HPL;

·                    Dr. R.K Vats, IAS (Joint Secretary & Financial Advisor), Ministry of Urban Development and Ministry of Housing & Urban Poverty Alleviation), Part time Official Director of HPL. 

Corporate Office & Regional Offices 

HPL is managed by its Corporate Office at Jangpura, New Delhi and with its Regional Offices at Raipur (Chhattisgarh), Patna (Bihar), Shillong (Meghalaya) & Thiruvananthapuam (Kerala).  Currently, it has operations in 14 States across the country.  

Turnover 

The company has considerably increased its turnover manifolds.  The turnover of the company for the preceding five years is tabulated below:

                 (Rs. In Crore)

#          The manufacturing activities in the factory has been stopped since Sept 2004 due to lack of viable orders. 

(*)     MOU (2009-2010) Target 

After joining of Sh Jaiveer Srivastavaa as full time Chairman & Managing Director of the company w.e.f. 1^st August 2006, the Company has diversified its activities and is now mainly engaged in the execution of projects, Project Management Services, Real Estate and third party Quality Assurance services etc.  Currently, it is engaged in JnNURM projects, National Rural Health Mission (NRHM) projects and projects for Delhi Police, Para-military Forces etc. and other institutional buildings for various clients like ESIC, EPFO etc. 

HPL has achieved a turnover of Rs.150.16 Crore (approx.) during the financial year 2008-09 and the company has recorded operating profit of approx. Rs.6.16 Crore before PBDIT.  The Provisional Profit & Loss (Unaudited) Account for the year ending as on 31^st March 2009 has been drawn to this effect showing therein the marginal profit earned by the Company during the year 2008-09 and is attached for information. 

Order Book Position 

The order book position of the company has substantially increased and stood as Rs.2000 Crore.  The company is also expected to secure more orders of projects with higher margins.   

Projects in Pipeline                                           (Rs. in Crore)

                                                                    (Approx.)

i)        Delhi Police                                  Rs.470.00

ii)        ESIC West Bengal                        Rs.540.00

The company is putting its heart and soul to secure orders and to turnaround the situation with the co-operation of our Ministry.   

Financial highlights for preceding five years 

The financial position of the company for the preceding five years is tabulated below: 

(Rs. in Crores)

(*)        BRPSE has recommended conversion of Govt. loan and interest thereon into equity w.e.f. 31.03.2008.  If this is approved by the Cabinet, this liability will not exist.  

MoU – 2009-2010 

HPL has also signed MOU with the Ministry for the year 2009-2010 with a projected turnover of Rs.335 Crore and operational profit of Rs.7.92 Crore by putting its sincere efforts to achieve the turnover.   

          Budget allocation for the last three years

            The following budget allocation for the preceding three years is given below:

                                                                                                               (Rs. In Crore)

            HPL has stopped taking budgetary assistance from the Govt. w.e.f. 01.04.2008.

Revival/Financial Restructuring of the Company

The BRPSE meeting was held on 24^th December 2008 to consider the revival/restructuring plan of HPL.  Board after detailed deliberations and taking into account all relevant factors agreed to conversion of outstanding GOI loan and interest thereon as on 31.03.2008 amounting to Rs.128 Crores into equity.  

Again, the BRPSE in their 67^th meeting held on 24.02.2009 agreed for the revival of the company and recommended cash infusion of Rs.90.86 Crore in the form of interest free bridge loan for setting up of one plant at a cost of Rs.81.20 Crore and Rs.9.66 Crore towards arrears of staff. BRPSE further recommended that HPL should set up other plants as detailed by the Consultant in the business plan out of the funds generated from internal resources / land development.  

The revival / financial restructuring proposal of Hindustan Prefab Limited is being sent to the Union Cabinet. 

            “Policies” 

The company is complying with all the policies/guidelines issued from time to time by the Ministry of HUPA/DPEs/CVC etc.

            “Schemes” 

Working Strategy: HPL, which is currently operating as the executing agency for the construction projects being assigned to HPL primarily through Central and State Government agencies, aims at evolving itself as a turnkey solutions provider to the projects.

HPL would strive to continue the currently offered project management services to facilitate steady revenue inflow.  It would aim at liaising with different government departments for maintaining a healthy order book and win diverse construction projects to gain an expertise across a spectrum of activities.

HPL would aim at maximizing the profit margin of the projects undertaken by progressively building in-house competencies to assess the profitability and the feasibility of the projects and effectively managing resources.  Leverage the experience and initiate an in-house consultancy team to monitor and evaluate the projects and undertake pre-feasibility and profitability analysis for short-listing projects, certification of designs etc.

HPL is in process to procure major turnkey projects and cost plus projects with a profit margin of agency charges to the tune of 8 to 10% on an average after meeting out all overhead expenses. It is also to emphasis that HPL is concentrating on cost plus projects only; there is no scope of any loss on these projects except a nominal variation in project ratio of earning.  The company is in a position to earn about 5 to 7% profit on these projects.  In fact in general the company is securing all deposit works and is expecting huge fund inflow and is likely to become rich in financial liquidity and will be in a position to park the surplus funds in term deposits with the Banks.  It is expecting a major turnkey project from the Employees’ State Insurance Corporation (ESIC) – West Bengal and the award of work to HPL is under process.  

.           Calendar of events during the year 

The Company has observed/celebrated Ram Navmi, Birthday of Dr. B R Ambedkar, Anti Terrorism Day, Sadbhawana Diwas and Quami Ekta Diwas every year. All the employees took pledge on the respective days.

Detailed website : http://www.hindprefab.com