We Can Only Grow If Customers Are Happy: Gummi Ram Reddy

Gummi Ram Reddy understands all facets of the construction industry. "I know construction very well because I started from scratch and I did everything on my own with my own hands," he tells The CEO Magazine . The Chair and Managing Director of Ark Group exemplifies a virtue that makes for a great leader: knowing a field from the inside out.

"I have a great advantage of being a civil engineer. Whenever there is a problem, I am there to technically support the team." Ram may have started small but he quickly grew into a seasoned entrepreneur. "After completing my engineering degree, while working for private companies, I attended an interview for the Roads and Buildings Department," he recalls.

"I went for the interview but it wasn’t right for me. I didn’t want to do any government job. I wanted to be an entrepreneur." Drawn to honesty in business, Ram decided he wanted to lead with this attribute as the foundation of his own company, so he founded Ark Group where he could serve with both "transparency and confidence".

Despite achieving great heights, the company has never expanded aggressively, nor has it ever focused on pure profit. Instead, it emphasises providing value. Part of the reason why Ark Group has a small but enviable list of clients is that Ram treats each project as a personal challenge that needs to be overcome with ingenious and honest solutions.

I went for the interview but it wasn’t right for me. I didn’t want to do any government job. I wanted to be an entrepreneur.

"We executed so many challenging buildings and one of these was the Atomic Energy project," he explains. "There was a groundwater reservoir with a 27-metre diameter and a folded plate roof. The overhead reservoir with a shaft at the bottom was four metres by six metres. When it went to the top, it became six by six metres, with its blade shaft at a 40-metre height. A cantilever slab with four compartments at that height – that’s 150,000 litres each. This was one of the biggest challenges for me." But the effort and dedication he put into each project paid dividends.

"I’m very happy to share that, after the completion of the building, we never walked back into that project again, not even for maintenance," he smiles. Ram has a knack for creating acronyms which makes it easy for people to remember. For example, the company’s core values were condensed into a single word, OATH: Openness, Accountability, Trust and Happiness.

In December 2019, the entire Team Ark took an OATH to go ‘Above and Beyond’ – the new mantra to work towards, delivering delight and exceeding expectations. He also ushered in his daughter, Meghna Gummi, who studied architecture and construction, to add wings to his dreams. Ram doesn’t measure his company’s success by numbers. Instead, it depends on three factors: retaining staff, striving to become a great place to work, and ensuring all stakeholders are happy, including employees and customers. Under Ram’s leadership, happiness and satisfaction form the core of any project Ark Group undertakes.

"I tell my employees that your salaries are paid by customers and clients, and not by me. I’m only transferring it to you. That’s it. We can only grow if customers and clients are happy," he points out. His focus on happiness is visible in the way he treats his workforce as well.

Internally, he created much motivation by coming up with a revolutionary ‘3T’ formula that urged the team members first to have Trust in their abilities, focus on Training and sharpening the axe, and Track metrics because what gets measured gets done. His brand of leadership resembles the Tata Group and, unsurprisingly, Ram considers Ratan Tata to be one of his role models. He has fond memories of Ark Group’s 30th anniversary.

"I received a lot of things from eminent people. But Ratan Tata’s signed letter is one of the greatest treasures for me," he reveals. Ram emphasises the need to build long-term relationships with all parties involved in a project right from the beginning. He narrows down five key partners that he believes are essential to run a successful construction business: finance partners or bankers, construction material suppliers, civil contractors, employees and workers.

He’s proud of the fact that his bankers have stuck by him for 27 years, and his longest-running partnership with a supplier is ongoing at an impressive 32 years. Ram’s close-knit circle of partners, customers and employees is a refreshing sight in today’s corporate India but it’s not just his investment in people that shines through; he is equally interested in innovative technology to streamline workflow and optimise infrastructure.

"Instead of using river sand, nowadays we use mechanised sand," he explains. "It was started in Hyderabad and I was the first person to promote it." His old-school approach is successful but Ram is now ready to grow further. "I’m planning the ways in which the company should develop. By 2030, my company has to be a US$670 million company," he says.

For Ram, his ‘why’ was obvious. By Ark Group becoming a US$670 million company, he could generate employment for thousands of employees and secure their families. The growth imperative would impact more people positively and deliver more square metres of happiness to customers. That’s an ambitious plan, but Gummi has the mettle and the experience to make it happen. And he has already started turning the company into a bigger construction brand across India.

In the next year, the company plans to work on a few million square metres spanning five projects in Hyderabad and Bangalore. Over the years, Ark Group has expanded across India and added well-known names to its portfolio. As a leader, Ram believes one should have the conviction to have a big hairy audacious goal, the courage to announce it to the world and ensure that there is a route map to achieve it, come what may.

Sarala Gummi, his wife, shares a passion for natural farming and heads up Ark Agro, which has plans to practice and promote this type of agriculture. One of the recent additions is the dream to create the finest Gir cow Gaushala as part of Ark Agro and to come out with a healthy brand of natural cow ghee.

Much like the evolution of India itself, Ram’s winding journey from young civil engineer to innovative leader is not only inspiring, but built on hard work and honesty. for thousands of employees and secure their families. The growth imperative would impact more people positively and deliver more square metres of happiness to customers. That’s an ambitious plan, but Gummi has the mettle and the experience to make it happen.

And he has already started turning the company into a bigger construction brand across India. In the next year, the company plans to work on a few million square metres spanning five projects in Hyderabad and Bangalore. Over the years, Ark Group has expanded across India and added well-known names to its portfolio.

As a leader, Ram believes one should have the conviction to have a big hairy audacious goal, the courage to announce it to the world and ensure that there is a route map to achieve it, come what may. Sarala Gummi, his wife, shares a passion for natural farming and heads up Ark Agro, which has plans to practice and promote this type of agriculture.

One of the recent additions is the dream to create the finest Gir cow Gaushala as part of Ark Agro and to come out with a healthy brand of natural cow ghee. Much like the evolution of India itself, Ram’s winding journey from young civil engineer to innovative leader is not only inspiring, but built on hard work and honesty.

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