Wednesday, July 16, 2008

Varun Manian

"What we really look forward to in the construction industry is that the margins will have to be realistic, rather than being unrealistically low as now. The skew happens because of under-quoting just to get the project, accompanied by the absence of any checks and counters on the estimates. A best practice can, therefore, be to have (as in the US) the specification of 'freak high' and 'freak low' for any contract. For instance, if a project is estimated to be at Rs 100 crore, bids at plus or minus 20 per cent may not be entertained."

Varun Manian, NAPC Ltd

July 16, 1 pm


Murali said...


Varun Manian is a third generation young entrepreneur at NAPC Ltd.

Graduating in 2004 from NYU – New York University with a degree in Business, he gave up opportunities to work in Goldman Sachs and Merryll Lynch as he was attracted to return to booming India and join the family business at NAPC Ltd. Varun had a finger on the pulse of the growing infrastructure world, and started NAPC Properties adding this real estate investment arm to the parent company, NAPC Ltd.

When he returned, the Indian telecom story was just beginning to take root. Among other projects NAPC was hired as the subcontractor to Leighton to build the Nokia factory as a fast track project. Varun Manian had his first big project to manage. His people skills and keen business acumen make him the business accelerator at NAPC Ltd.

Since then Varun has led NAPC Ltd teams to work with 16 nationalities, in companies like Hyundai, Ford, Flextronics, Nokia, Toyota and several others.

His interests include golf, tennis and travel.
About NAPC

Established in 1949, NAPC specialize in the areas of land development, road and building construction. It has experienced impressive growth since its inception and has emerged as one of the leaders in the industry. An ISO 9001:2000 certified Construction Company; it has an enviable track record anchored on expertise, experience and entrepreneurship.

Today, its reach spreads across the nation with full-fledged offices in Chennai, Bangalore, Mumbai, Goa and Orissa, enabling operations in even the remotest locations. Its dedicated engineers and workmen, complemented with a large fleet of construction machinery and supported by strong financial resources, ensure efficient handling and execution of work of any magnitude. NAPC believes in the four corner stones of good construction; Safety, Quality, Schedule and Value.
Sandhya Raju
PR Manager
Integrated Brand-Comm Pvt Ltd
New # 7, Old #4
Seetha Nagar Main Road
Nungambakkam, Chennai 34
Ph: 044-28252450 / 51
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M: 9380572123

Murali said...

date22 July 2008 18:00

Here are a few questions for a possible email interview.


1. The last couple of years have been good for the infrastructure space, with the industry (and the stocks) witnessing a strong run. However, there seems to have been over capacity built up. Is lower demand and higher supply a worrying factor for you? What is your outlook for the industry this year?

2. Do you expect a slowing down of new real estate projects? If yes, what is your strategy to manage this slowdown, given that you are just entering this space? Is there a possibility of you postponing your expansion plans in the real estate space, given the challenging environment?

3. What is your view on the (real estate) price levels in Chennai? The last year has seen rentals double. Do you think it has peaked for the moment and can we see a more realistic and affordable price levels in the future? How much of a price correction do you expect to happen?

4. What are the geographies you are looking at for investment into real estate projects and will it be high-end projects targeted at the IT /BPO staff. What could be the typical size of projects?

5. Are you also looking at Tier 2 towns for investment? For example, there has been lot of talk about companies expanding into Coimbatore, Madurai and Tirunelveli in Tamil Nadu. Are these on the radar for NAPC?

6. How do you see margins and profitability in the space, as compared to the other businesses (mining…)?

7. Is this diversification into real estate a part of your long term strategy to invest in this space? How much do you expect the real estate business to contribute to your overall business in the long run – say over the next 3-5 years