While KP Group has a diverse bunch of companies under its wing, what makes it stand out is its ability to plan ahead and sense expansion opportunities in the future.
"Every strategy I talk about has been planned two-to-three years ago. We have the data and we as a team decide which goals to achieve and when. That’s the reason behind our success," Chairman and Managing Director Faruk G Patel shares with The CEO Magazine.
He attributes extreme professionalism and advanced planning to his and the company’s ability to pivot, expand and grow since 1994. "I started KP Group as a transport and logistics company and I kept it focused on just that until 2000," he says.
Things changed at the turn of the century when Faruk began investing in other industries, including mobile communication and, through KP Buildcon, which was founded in 2001, state-of-the-art fabrication and galvanising. However, he was far from calling it a day.
"In 2008, I started KPI Global Infrastructure, which is known as KPI Green Energy today, and in 2010 I started KP Energy. Both of the companies are focused on renewable energy," he shares.
We as a team decide which goals to achieve and when. That’s the reason behind our success.
Each new company has yielded success because Faruk positioned them at the right time and in the right place. Within three years of inception, KPI Green Energy got its big break when the Gujarat government pushed for a solar energy overhaul in Charanka Solar Park.
According to Faruk, KPI Green Energy operates on three verticals. One is as an Independent Power Producer (IPP), which has produced 100 megawatts as Gujarat’s premiere solar energy producer. Next, as a Captive Power Producer (CPP), in that it has signed engineering, procurement and construction contracts with other companies. The third vertical is solar plot selling, which only makes up a small percentage of the business.
It works together with KP Energy, which builds end-to-end wind energy projects to create hybrid projects that combine both wind and solar energy.
Reaching new milestones
The sheer number of projects currently running and in the pipeline for KP Group hasn’t stopped Faruk from hitting projections and setting bigger goals for the future. "Regarding KPI Green Energy, we jumped from 49 megawatts to 100 megawatts in IPP, and nine megawatts to 65 megawatts in CPP last year," he says. "We have another 162 megawatts in the pipeline so we’ll cross 300 megawatts in March 2023."
The growth story is similar in KP Energy as well. "We have over 800 megwatts in the pipeline," he says.
Regarding KPI Green Energy, we jumped from 49 megawatts to 101 megawatts in IPP, and nine megawatts to 65 megawatts in CPP last year," he says. "We have another 162 megawatts in the pipeline so we’ll cross 300 megawatts in March 2023.
All the active projects, as well as those in the pipeline, contribute to KP Group’s top line. According to Faruk, together, KPI Green Energy, KP Energy and KP Buildcon will command a revenue close to US$600 million by 2025.
These lofty goals are not without their challenges. According to Faruk, the conglomerate needs to address three challenges – government policy changes, cash flow and right-of-way for infrastructures. But by planning in advance, he has been able to stay on top of government policies and right-of-way changes.
Being a good samaritan
Success means achieving all the milestones you set for yourself but without harming human nature, Faruk shares. "If you reach your goals without getting a red card in life, you’re successful."
KP Group, as a conglomerate, exhibits a similar moral stance, which is backed by a trusted chain of suppliers. Faruk believes that everyone you meet on your path to success is your team member – they don’t necessarily have to work at your company, and thus he maintains a strong bond with vendors and suppliers by following three key rules.
"First, their payment should be on time. Second, the clarity and quality of materials should be very particular. Third, employees must respond immediately to their queries," he says.
Alongside this, he also believes in the value of incentives. "When a vendor honours their contract on time, it is important to show appreciation, even if it’s a small thank you letter," he shares. "You need people to grow with your company."
Renewable energy is doing its part to save the world. When you leave the world, make sure to leave it a better place, for your kids and for the next generation.
For each material, KP Group has five suppliers at any given time to maintain the quality of products. "We have around 237 items and a minimum of 1,000 suppliers and vendors, out of which, around 25–30 suppliers are key to the running of the business," he says.
"We have been in constant touch with these key suppliers, including Ajay Rawat from DEK & Mavericks Infratech and Samyak Deora from Deora Wires N Machines. They have not only been good in their work with us, but have been amazing people to interact with on a personal level."
At the end of the day, it is Faruk’s vision for the future that keeps him going. "We only have one world, one home – we do not have any other option," he shares. "Renewable energy is doing its part to save the world. When you leave the world, make sure to leave it a better place, for your kids and for the next generation."
Faruk is running a conglomerate, generating millions in revenue, and doing it all with a smile. "I want to tell you that I’m the happiest person in the world. Because I have no complaints."
DEK & Mavericks Infratech
Deora Wires N Machines (a unit of Deora Group of Industries)