If details about the electoral bonds had not been made public, P.V. Krishna Reddy would have stayed under the radar for most Indians, despite managing a diversified `32,000-crore business. The attention makes the media-shy Reddy a little uncomfortable and he takes time to warm up but declines to talk much about the electoral bonds issue in an interview with Business Today. The MD of Megha Engineering & Infrastructures is known in Andhra Pradesh and Telangana as a smart businessman who has capitalised on the opportunities that came his way. Known to manage relationships well across political parties, the 53-year-old has grown the company not just in India but also in markets abroad. In the interview—his first major one ever—he talks about his businesses, technology, and the way ahead. Edited excerpts:
You have a diversified business portfolio. How do you choose the segments you want to be in?
We started our journey in 1989. Sometime in the 1990s, we decided to bring new technologies to India and create a business proposition around that. We entered solar power in 2005… it was a very new concept [then]. And [then] we went on to do a canal top project in Baroda (Vadodara)... perhaps the first time in India. Then, we had a 50MW solar thermal project in Maharashtra. Our approach has been simple—look for opportunities early in the day and see how they can work in India. It’s not just about money anymore. It is important for the larger Megha family of 40,000 employees to be comfortable. That is a big reason for taking a few big bets and making those diversification moves.
Tell us why you invested such a large amount in electoral bonds.
I don’t want to talk about that. You wouldn’t have come to meet me but for that… I became visible only because of the recent developments. [Smiles]
What does technology mean to you?
It excites me and is also of great interest. You can see what we have done with our electrical buses business. Now, it will be electrical trucks; we have also submitted an application for passenger cars with BYD. We have the resources to do all this, coupled with a workforce that is dynamic and extremely talented.
Your businesses have infrastructure at the core. How have you managed that over time?
India presents a multitude of opportunities in infrastructure… we would like to focus our attention on the needs of the common man. For instance, we are present in the Har Ghar Jal project, or in piped gas, or the roads being laid. There is a lot of work we do on transmission lines and solar. Just on water, we are there in every part—drinking water, irrigation, and sewerage—to name a few areas.
We have spent a lot of time in infrastructure and that experience helps. Every project of ours is completed before schedule. That is very important for us. We are often asked how we manage to do that, and the secret is all about good execution. You can say we are obsessed about it. Starting with getting it right on the availability of land, the funding process and great attention to detail, they help in strengthening our execution capabilities.
One must understand that [infra] projects can be very complex. Take the case of the Zoji-la tunnel in Jammu & Kashmir. We have been working through the winter on this. The first part is complete, and we are close to finishing the second part.
In India, there is a certain mindset about what a contractor does. Since the opportunity is huge, all kinds of people have come in. But you must execute well to get more work and that is not easy. We look at our job as a way to build for society and create high levels of employment. If you take the number of people who are provided direct and indirect employment by our organisation, that number will easily exceed 500,000.
What is your view on technological disruption and how are you positioning yourself?
The game has changed dramatically. AI is necessary today and one must make that a strategic advantage. For example, using AI, I can say how much radiation is generated. That becomes very useful in our solar business and with live updates, it becomes possible to course correct. Likewise, with construction projects, I can see things as they progress and that helps in meeting deadlines. A lot is said about how competition uses technology well, but my focus is only on what we do. We are determined to execute high-quality projects with the best of modern technology.
How technology has progressed is a great learning for all of us. I remember the 1980s and 1990s when computers first came into banks and railway stations. There was a lot of needless fear and people thought their jobs would get eliminated. Technology alone cannot win you the game. You cannot build roads, dams or lay pipelines with that. To get it right, you need to do a lot more than get the best technology. A lot of people don’t understand that and land up in difficult situations.
What is the vision for the business over the next few years?
We ended FY23 with revenues of over `32,000 crore at the group level and in the last fiscal (FY24), it crossed `50,000 crore. Growth on a large base can easily continue only because of the volume of work available. If you marry the large number of opportunities with focus and hard work, the sky is the limit. Today, Megha is a global story given our presence in many countries. As a businessman, I prefer to keep a low profile and let my work do the talking. This is my first interview ever! It’s only over the last few weeks that we have been in the news [referring to the electoral bonds issue] and that has put a lot of attention on me and the organisation. Else, it is work as usual and will always be that way!
@krishnagopalan
Read the cover story:
Megha Engineering: Unravelling the mystery behind the second biggest electoral bond buyer