NBCC (India) Share Price

NBCC (India)

NBCC (India) Limited, formerly known as National Buildings Construction Corporation Ltd, is a blue-chip Government of India Navratna enterprise under the Ministry of Housing and Urban Affairs. Over the years, it has emerged as one of the key players in the construction and infrastructure sectors. The company’s operations are primarily divided into three key segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement & Construction (EPC) contracting. Through these segments, NBCC has contributed significantly to various sectors, including infrastructure, housing, and urban development.

Core Business Segments

NBCC’s operations are categorised into three main areas:

1. Project Management Consultancy (PMC) PMC is the core strength of NBCC, contributing around 90% of the company’s annual revenue. Under this segment, NBCC undertakes various large-scale projects, including the redevelopment of government properties, roads, hospitals, medical colleges, offices, airports, bridges, and more. This segment has been instrumental in the company’s growth and has allowed NBCC to manage multiple landmark projects across India.

2. Real Estate Development NBCC is also involved in the development of real estate projects. This includes both residential and commercial projects, where the company has successfully completed a number of developments across the country. Real estate development, though not as large as the PMC business, remains an important part of the company’s portfolio.

3. EPC Contracting NBCC’s EPC (Engineering Procurement & Construction) contracting services focus on the construction of critical infrastructure projects such as chimneys, cooling towers, and various power plant works. This segment allows NBCC to contribute to the infrastructure needs of the power and industrial sectors.

Historical Background and Incorporation

NBCC was incorporated on November 15, 1960, as a private limited company. The company was initially established as a wholly owned Government of India undertaking under the Ministry of Works, Housing & Supply (now known as the Ministry of Urban Development). Over time, NBCC has evolved into a major player in the Indian construction industry, with the Government of India currently holding a 73.69% stake in the company (as of June 30, 2018).

Expansion into Overseas Markets

In 1977, NBCC ventured into international markets and successfully executed complex projects in countries such as Libya, Iraq, Yemen, Nepal, Maldives, Mauritius, Turkey, and Botswana. The company is currently active in countries like Maldives, Mauritius, and Dubai, where it is implementing several prestigious projects. Additionally, NBCC is executing projects in African nations, including Niger, Uganda, Malawi, Zambia, Liberia, Gambia, Burkina Faso, Togo, and Gabon. The total value of these international projects is approximately ₹2,000 crore. Some of the key international projects include the construction of the India Pavilion at the World Expo in Dubai.

Achievements and Recognition

Over the years, NBCC has been recognised for its exceptional work in the construction and infrastructure sectors. The company has been awarded various certifications and accolades:

1. Government Recognition and ISO Certification In October 2008, NBCC was granted "Schedule A" PSU status, which signifies its importance as a public sector enterprise. The company was also awarded the ISO 9001:2008 certification from the Bureau of Indian Standards for its consultancy and project management division.

2. Excellent Rating from MoUD From 2004 to 2010, NBCC received an Excellent rating from the Ministry of Urban Development (MoUD). This rating is a testament to the company’s consistent performance in the field of construction and project management.

3. Awards and Honors In 2013, NBCC won several prestigious awards, including the Real Estate Awards 2013, the Engineering Excellence Award 2013, and the Special Jury Governance Now PSU Awards 2013. These awards highlight the company’s excellence in the real estate and engineering sectors.

In the following year, 2014, the company continued its winning streak by receiving the India Public Sector Enterprises Award for Excellence, the NAREDCO National Real Estate Award, and the Dun & Bradstreet Infra Awards. NBCC’s recognition as a key player in the industry continued to grow, and in 2014, the company was conferred with Navratna status, further reinforcing its position as a leading public sector enterprise in India.

Subsidiaries and Strategic Initiatives

NBCC has made several strategic moves to diversify its operations and strengthen its market presence:

1. Formation of Subsidiaries

• NBCC Engineering Consultancy Limited: In December 2015, NBCC announced the formation of this wholly owned subsidiary to provide consultancy services for construction and development of buildings, infrastructure, and smart city projects.
• NBCC International Limited: In July 2017, NBCC incorporated NBCC International Limited, a wholly owned subsidiary to carry out construction, real estate, and project management consultancy overseas.
• NBCC Environment Engineering Limited: Also in July 2017, NBCC launched this subsidiary to focus on environmental and sustainability projects. This reflects the company’s commitment to green construction practices.

2. Acquisition of HSCC (India) Limited

In FY 2018-19, NBCC completed the acquisition of HSCC (India) Limited, a Mini Ratna, Category I Public Sector Undertaking. HSCC specialises in the construction of healthcare infrastructure, and this acquisition has strengthened NBCC’s portfolio in the healthcare and specialised infrastructure sectors.

3. International Projects NBCC has actively participated in international projects. Some of the notable projects include:

• Mahatma Gandhi International Convention Centres: NBCC is building convention centres in nine African nations as part of its international expansion.
• Indian Pavilion at the World Expo 2020, Dubai: NBCC is responsible for conceptualizing, designing, and constructing the Indian Pavilion at this prestigious global event.

Recent Developments

1. Amrapali Projects

In 2019, the Honourable Supreme Court of India appointed NBCC as the Project Management Consultant to complete the stalled projects of the Amrapali Group. This includes completing 24 projects comprising 46,500 houses, valued at approximately ₹8,300 crore. As of 2021, NBCC had completed 695 flats and handed them over to homebuyers, with work ongoing on other projects.

2. Diversification into Road Construction

In 2018, NBCC diversified into road construction by signing an agreement with the Ecotourism Development Corporation of Uttarakhand Ltd. The project involves constructing an eco-tourism circuit along the Kotdwar-Ramnagar Kandi Road in Uttarakhand. The project, estimated at ₹2,000 crore, will be developed under a green infrastructure model and includes the construction of elevated roads to allow for the free movement of wild animals.

3. Supreme Court Building in Mauritius

In July 2020, NBCC completed the construction of the new Supreme Court building in Mauritius, which was jointly inaugurated by the Prime Ministers of India and Mauritius. This project showcases NBCC’s growing international presence and its ability to execute high-profile projects abroad.

Overview

NBCC (India) Limited has come a long way since its inception in 1960. As a Navratna PSU, it has established itself as a leader in the construction and infrastructure sectors, both in India and abroad. Through its diversified business segments, strategic acquisitions, and international expansion, NBCC continues to play a significant role in the development of large-scale infrastructure projects. With a strong focus on sustainability, green construction, and technological innovation, NBCC is well-positioned to remain a key player in the global construction industry for years to come.