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Coimbatore,” says business historian Mahadevan.
“Political connections did matter in those days as there were hardly any entry barriers in terms of stringent grading or pre-qualification. So, there was room for manipulation,” admits E Sudheer Reddy, vice chairman and managing director, IVRCL Infrastructures. The metamorphosis from small-time, family-run construction businesses into professional, project-driven entities has seen Andhra’s infrastructure companies adopting new operating structures. Some are even taking a leaf from sectors like the automobile industry where manufacturers focus just on core operations and assembly, outsourcing ancillary functions. The Rs 300-crore Indu Projects is an example. “We give smaller companies assured business for say, five years as well as the necessary finances, thus enabling them to focus on quality and timely construction,” says I Syamprasad Reddy, the company’s managing director. “Now we are working on a model of even taking equity in those companies.” Such is the interest that Indu funded a first-of-its kind chair for research in real estate studies at ISB.
As for the road ahead, for every GVK or GMR, there are at least a dozen others with ambitions of making it big. “The demonstration effect has worked powerfully,” says Mahadevan.
Aviation: taking wings
Unlike the above three sectors, there is no imaginable reason for aviation to grow big in the south, which is home base for India's first no-frill low cost carrier Air Deccan, full-service Kingfisher Airlines and all business class Paramount Airways. Of course, Bangalore has the PSU Hindustan Aeronautics Ltd and is also a major base for the Indian Air Force. But unlike IDPL, it has not been much of a reason for the birth of the three private airlines. Then, what explains this rise? Again, its simply seizing an opportunity and cashing in on it. “What I feel, as far as aviation is concerned, is that the entry barriers are high. However, it is a function of a new drive of entrepreneurship with an ability to take risks. For me it is the passion for the aviation business. It is a rare opportunity to convert your passion into a meaningful and profitable business,” says Thiagarajan, managing director, Paramount Airways, and himself a qualified pilot. But Paramount is old money with interests in textiles, manufacturing, banking and finance. Thiagarajan’s grandfather Karumuthu Thiagarajan was known as the textile tycoon of the south. Similarly, Kingfisher has entered the fray with all the backing of Vijay...
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