Diana Muñozcano
Chief Investment Officer
Grupo INDI
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View from the Top

Grupo INDI Committed to Economic Recovery Through Construction

By Jan Hogewoning | Tue, 12/14/2021 - 12:00

Q: President López Obrador announced a public-private investment plan for 39 infrastructure projects to reactivate the economy and spur recovery. What opportunities will this provide to Grupo INDI?

A: We like to participate not only in federal but also state projects and there are several opportunities emerging in urban transportation and road projects. We have presented offers for some tenders and we will analyze the opportunities as they arise. 

Currently, Grupo INDI participates in several maritime works and roads projects but our specialty is deep foundation. However, we have urban transportation projects, including concessions in the State of Mexico and Guerrero. The new infrastructure projects are something that without a doubt interest us but it will be necessary to analyze each of them to determine their viability. 

Q: How have the benefits of PPPs evolved in recent years?

A: Not everything can be PPPs in life. In my opinion, the PPP is a dynamic scheme but it needs to be adapted to the circumstances of each moment. Without a doubt, it is a scheme that has been proliferating and now that the resources available must be prioritized, PPPs will have to be used in the health sector. We see opportunities in concessions, mainly in projects that require more private investment than mixed investment.

Q: You have lauded the potential effectiveness of unsolicited proposals (USPs). How has this instrument evolved as a more attractive alternative with lower risks for the private sector?

A: There is still a great deal of potential in this area. USPs are complicated because there are many preconditions to meet, many studies to be done and a relevant investment to be made. Although we have seen unsolicited proposals, at the state level they still have significant growth potential. However, it is clear that it is a mechanism that has become increasingly known and that it does have the advantage of being able to detect projects that can provide important benefits and that are currently not so visible.

Q: How has Grupo Indi expanded its portfolio in recent years?

A: At the beginning of the year, the pandemic shook us up a bit and took us out of our usual way of working. But work never stopped in the construction sector, which was declared an essential activity. Of course, there was a decrease in production because we had to abide by important measures in terms of working hours, space and even logistics. Moreover, in some regions, the epidemiological traffic light was in red while in other places it was in orange and that also complicated the operation. Fortunately, in the bigger picture, there was no major impact on the company. All work has continued in a normal way.

President López Obrador is looking for infrastructure to be one of main triggers for economic reactivation and in that sense, we also see opportunities and benefits. Our main projects at the moment are the Mayan Train, which is a priority project not only for us but for the government. We are also participating in the wave breaker at the port of Salina Cruz and the construction of the Martin Carrera CETRAM in Mexico City. In addition, we have already completed our work at the maritime terminal in Manzanillo, Colima. Several other projects are progressing. 

Over the last few years, we have expanded our operations department, which was imminent due to the growth of the projects. This division, which did not exist 15 years ago, has become quite important within the company and today it is one of our main areas. Also, the commercial division has been strengthened thanks to the current projects.

Q: What differentiates Grupo INDI from its competitors in the construction sector?

A: Our specialties are the first differentiator. Deep foundation and maritime work, two of our specialties, give us a certain advantage over our competitors and allow us to compete in very specialized sectors successfully. Beyond that, Grupo INDI is a flexible company. We have been in the market for more than 40 years and this has been thanks to flexibility and the ability to adapt to changes, both in the environment and in the company itself. Part of this has been achieved through the use of multidisciplinary teams, both in terms of technical knowledge and also in terms of gender, age and culture. The company respects and values the knowledge that each individual brings. 

The company has been growing organically since its inception according to its own capacities. If a project requires funding, we look for it but we are usually quite conservative in the financial area. At the moment, we have a couple of financing plans in the pipeline but they are directed to highly specialized projects. 

Q: Who are Grupo INDI’s main strategic allies? 

A: Every partner we work with and everyone in the supply chain are strategic allies for the company. Throughout the history of the company, important alliances have been generated with both suppliers and other companies in the sector. We always seek to multiply, not just add. We like very much to generate alliances with companies that have a specialty that complements our work and projects. 

Q: What are your primary priorities for 2020 and 2021?

A: We are focusing on the most relevant projects in our portfolio, such as the Mayan Train and the port of Salina Cruz. We will definitely continue to look for opportunities where we can add value and where we feel comfortable working. We would also like to bring the name of Mexico abroad. Our priority is to support the country, especially in the current circumstances. Reactivating the economy is essential and we are committed to that.
 

Jan Hogewoning Jan Hogewoning Journalist and Industry Analyst