Quality processes and systems, not order flow, is the key concern for Interserve Plc of UK, which entered the construction business in India last year.

Interserve will focus on delivering support to maintain the quality and integrity of business in the joint venture with a local partner, the Hyderabad-based SSPDL, said Lord Normal Blackwell, Chairman, Interserve.

For the joint venture — SSPDL Interserve Pvt Ltd — Mr Blackwell said the company “does not see a lack of orders, but the challenge for us is building a quality organisation.” SSPDL Interserve, owned 51 per cent by listed company SSPDL and 49 per cent by Interserve, will concentrate on offering a distinct product, known for its quality.

This is more to do with the way projects are run, project management including addressing rising labour costs through automation and mechanisation, and quality of labour. One of Interserve's construction equipment companies will support mechanisation of construction which will help address efficiency and cost, he said.

Its partner, SSPDL, is a strong player in the residential sector. There is a demand for high quality residential construction in India, which the joint venture will tap. It will also look at opportunities in hotels, office and commercial buildings, he said.

Infrastructure development

Interserve has long-term plans to enter infrastructure development here, but will focus for now on third party construction services.

The multinational company has a major presence in infrastructure in other markets. Mr Prakash Challa, Managing Director, SSPDL Interserve, said its order book is about Rs 350 crore, including two hotels for the Accor chain to come up in Chennai on the OMR and SSPDL's 7-acre mall project on the IT Corridor.

Its projects are distributed across Chennai, Bangalore and Hyderabad.

The joint venture is investing in construction equipment and formwork to be supplied by an Interserve group company RMD Kwikform.