Russell Waugh, Managing Director, Leighton Contractors India Pvt Ltd. Leighton International, one of the leading contractors and project developers in Asia, has made its presence felt in India since 1998. Indeed, Leighton Contractors India Pvt Ltd, which has a mixed bag of projects in its kitty, is setting a new benchmark with every project it undertakes. In his plush office in Windsor House, Mumbai, Managing Director Russell Waugh was all smiles while speaking about Leighton’s achievements in India. Against the backdrop of a wall reserved for family pictures, Waugh candidly discussed his company, its strengths and strategies with Jayanthi Nararyan. Excerpts…. Strong presence A mechanical engineer by qualification, I have been with Leighton in India for the past six years. I have been in the construction industry all my life and have generally worked in Asia. Leighton was established in 1949 and was listed in the stock market in 1967. It’s growing to be the largest construction company in Australia; about the 25th largest construction company in the world. Also, we are the world’s largest contract mining company. We have been in India since 1998 and have been growing our business since 2004. We are probably the largest foreign-owned contracting company in India. Core strengths We operate in all sectors of construction. We gain local knowledge, information and experience. We learn and implement and bring out our depth of expertise. We have built factories and high-rise residential towers, constructed over 100 km of national highways, carried out installation works for not less than eight single point mooring systems for the import and export of crude oil and refined products, laid more than 200 km of subsea pipelines, and completed topside works at more than 80 offshore platform locations. We have a turnover of about Rs 2,000 crore; the Leighton Group’s turnover is about $18 billion (nearing Rs 100,000 crore). Big ticket projects We have close to Rs 4,000 crore worth of work on hand. We also have ONGC’s pipeline replacement project worth Rs 3,000 crore on hand. We have won a second port project in recent months from Paradip Port Trust, which acknowledges our expertise in marine construction as we have also received the contract for the Vizag Port expansion. The work on the Paradip Port is expected to be completed in the next two years. We are also chasing the Rs 6,700 crore JNPT terminal project. We also have on hand the Rs 2,500 crore Chenani-Nashri tunnel project in Jammu-the two-lane, 14 m diameter tunnel is about 9 km long, and will be one of the longest road tunnels in Asia. The construction work will take about 54 months to complete. In the residential segment too, we have built high-rises in various cities in northern India. We are happy to do these kinds of projects too, but in selected places. However, our focus is not so much on residential projects. Favourite project I enjoyed working for PRP2, which was the highest valued contract ever awarded by ONGC. Leighton amassed a number of outstanding achievements at this project. Our scope of work comprised full engineering, procurement, fabrication and installation of 178 km of rigid pipelines, 54 km flexible pipelines and 78 platform topside modifications spread over three seasons. In the first season for PRP2, we completed 51 km of rigid pipelines, 18 km of flexible pipelines and 18 platform modifications. Owing to the large volume of work, we mobilised marine spread as early as September 2009 to assure timely completion of the second season. The scope of work covered some 81 km of rigid pipelines, 17 km of flexible pipelines and 40 platform modifications. During Season 2, Leighton amassed a number of outstanding achievements. Our modern purpose-built barge, Eclipse, successfully laid 235 joints (2,800 m) of rigid pipe in one 24-hour period, topping the record for pipe laid in a single day by any contractor in ONGC fields in India. Leighton also registered records for laying 2,700 m of flexible pipeline in a single day and for the highest number of platform modifications completed in a single season by any contractor. At peak, Leighton had a total of 34 vessels and around 1,200 men offshore during Season 2. The project also achieved over 4.4 million man hours without LTI and received a number of awards for its safety performance. Equipment and technology We are always looking at new technology. We are adopting various technologies based on new construction methodologies. By using the latest power equipment, we could achieve records in offshore pipe laying. We focus on zero wastage and adopt all techniques for safety. We have a large pool of equipment worth Rs 100 crore. We are also planning to buy more equipment worth Rs 250 crore. Good initiatives We are active with regard to corporate social responsibility too. We minimise the impact of our work on local communities and their environment. We strive to maintain the highest ethical standards in everything we do. We have conducted various education programmes and other activities to highlight environmental concerns. We take green initiatives too, but in most cases these depend on the clients. To check wastage, we monitor how much fuel is consumed. In India, there is lot of wastage of power and available power is not constructively used. The inefficiency of distribution and supply encourage building small generators, and in the process burn lot of fossil fuels. It is much more energy-efficient to generate power from a 2,000 mw power station than 2,000 small generators. India could do something that will make the biggest difference. Future strategies First, we are looking to build our business in oil and gas as we have a strong presence there. We will continue to chase projects in a wide range of industries and are looking more closely at BOT projects and building strategic partnership with key developers. The way to go The industry needs to focus on developing safety parameters, new technologies and look at the big picture of the future of infrastructure. We have to deliver best in class. There needs to be a strong focus in India: put the country in good stead for the next 50 to 60 years and not just for next year. “We are planning to buy more equipment worth Rs 250 crore, which includes:• Earthmoving equipment• Road construction equipment• Tunnel equipment.” Fact sheet: Year established: Leighton India: 1998, Leighton Holdings: 1949Top management: Russell Waugh, Managing Director; SV Rajadhyaksha, Business Development Director; Jignesh Derasari, CEO - Oil and Gas; Michael Shaw, CEO - Engineering and Construction.Total number of employees: 609 Projects completed in 2009-10: Palm Springs Residential Towers, HPCL Vizag SPM Project, IOCL Residual Offshore Construction, BINA refinery SPM and Pipeline project.Ongoing projects: Ramanujan IT Park, Chenani Nashri Project, Paradip Port Project, Visakhapatnam Port Project, Mangala Field Development Marine Facilities, Pipeline Replacement Project.Centres of Operation: Mumbai, New Delhi and Chennai