In 1965, we were chosen as partners for building nuclear reactors.

In 1971, we delivered India’s

first nuclear reactor and set up nuclear steel generators. BHEL (Bharat Heavy Electricals Limited)
was the only other company selected. In 1972, India launched its space programme. Once again,
ABC was invited to participate and we did. I was the one responsible for taking the programme
further. I was already in charge of the whole manufacturing and then from SLV (space launch
vehicles) to advanced SLV to PSLV (Polar Satellite Launch Vehicle) to GSLV (Geosynchronous
Satellite Launch Vehicle) and now to advanced GSLV. Most of ABC’s expertise has been built from
scratch[3].

The current chairman of ABC Constructions was appointed as the CEO in 1999 and became
the chairman and managing director in 2003. During the annual general meeting held in
March 2012, the role of the chairman and managing director was split. While the chairman
was given a five year extension in his role as the executive chairman, another member of the
board of directors was appointed as the CEO and managing director with effect from April 1,
2012. Accordingly, the new CEO and managing director would be responsible for the
businesses of the company, and the executive chairman would focus on completing the
portfolio restructuring, institutionalizing the independent companies structure, and
mentoring and developing the leadership team and future leaders to face the global
challenges.
In spite of having a diversified expertise, the revenues of the company are highly
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concentrated at present. For the financial year ending 2008, the construction division
accounted for approximately 69.3 per cent of the company’s total revenues and 75.2 per
cent of the total income. Of these the construction division had been the largest contributor
to the top line growth of the company. This division is the focus of this case study.

Construction division
The Construction division of ABC Ltd, headquartered at Chennai since its inception, is
India’s largest construction organisation. The construction industry in India had been
considered to be India’s second largest employer, employing approximately 33 million
people. It figures among the top 225 contractors in the world and ranks 47 among global
contractors (revenues outside home country) and 72 among international contractors
(revenues from home as well as outside country)[7]. Many of the country’s prized landmarks
have been built by ABC. Its capabilities cover all disciplines of construction – civil,
mechanical, electrical and instrumentation. It is also equipped with the requisite expertise
and wide ranging experience to undertake engineering, procurement and construction jobs
with single-source capability.

ABC: vision[8]
ABC shall be a professionally managed Indian multinational, committed to total customer
satisfaction and enhancing shareholder value. ABC-ites shall be innovative, entrepreneurial
and empowered team constantly creating value and attaining global benchmarks. ABC shall
foster a culture of caring, trust and continuous learning while meeting expectations of
employees, stakeholders and society.
ABC Construction’s range of services include (Department of Corporate Communications,
ABC Constructions, 2007-2008):
B pre-engineering, feasibility studies and detailed project reports;
B engineering, design and consultancy services;
B complete civil and structural construction services for all types of buildings, industrial and
infrastructural projects;
B complete mechanical system engineering including – fabrication and erection of
structural steel works; manufacture, supply erection, testing and commissioning of plant
and equipment; heavy lift erection; high-pressure piping; fire-fighting; heating, ventilation
and air conditioning (HVAC) and low pressure/utility piping networks;

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PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 3 NO. 6 2013