Are siloed processes holding back your business in a booming economy?

What if a platform and partner could quickly help integrate and scale your operations?

Unlocking business growth with the right technical transformation

As told by Satyanarayana Kasturi, CIO, Dilip Buildcon

In partnership with Manoj Pandey, Kyndryl Customer Partner Executive

 

 

 

Dilip Buildcon is already one of the biggest infrastructure construction companies in India, employing 35,000 people to work on modern road, bridge, and mining projects critical to the country’s economy.

In 2016, Dilip’s business processes were manual and projects in each office were managed independently. As a result, says CIO Satyanarayana Kasturi, the company could not take advantage of economies of scale when procuring fuel, energy, and other essential resources. This impeded growth by keeping up-front investment costs for each project too high for Dilip to justify taking on more projects at the same time.

Our costs, such as raw materials, power and fuel, often total as much as 50% of our annual revenue. Because our working capital requirements are so high, effective control over our spending is crucial, particularly as we aim to work on many more large-scale projects in parallel.

Satyanarayana Kasturi
engineers discussion with consultants about detail of building at construction site

Driving business growth with cost efficiency and agility

Satyanarayana knew that, above all, enabling end-to-end visibility of Dilip's supplier relationships would reduce overall procurement costs and increase agility in distributing construction materials across projects in the same or adjacent regions. By having a holistic view of the business across regional projects, Dilip would gain an advantage in how they negotiated multiple contracts in the same time-frame. As a result, Dilip could increase the number of projects done in parallel and reduce the time to complete as they expanded the business.

We knew that the ability to access and act on reliable information quickly would be essential to manage our risk as we took on a growing number of capital-intensive projects.

Satyanarayana Kasturi
two-construction-workers-on-laptop

Accelerating outcomes through trusted partnership

Dilip’s existing enterprise resources planning (ERP) solution was spread out with its employees across India at more than 65 sites. Each operated its own instance of SAP without awareness of the others. Satyanarayana needed an integrated ERP solution to bridge the geographical distances with one comprehensive source of visibility on all Dilip projects.

 

A cloud-based solution was the obvious choice. However,  Satyanarayana’s team had limited experience with cloud platforms. He would need the right partner to help design the solution, and guide and manage its implementation. 

Centralizing enterprise resources planning and analysis

Together, Dilip and Kyndryl created and integrated standardized workflows within SAP’s intelligent ERP application suite running on the S/4HANA platform deployed in the cloud.
 

The SAP S/4HANA solution enables Dilip Buildcon staff to consistently manage digital business processes from end-to-end in all of its 65 sites across India. The solution integrates applications for business intelligence, finance and controlling, human resources, and material management.
 

Also, to gain insights into the large quantities of data generated during operations, the team implemented SAP BusinessObjects Business Intelligence suite, which provides point in time analytics. level Granular analysis of projects in flight provides the information Satyanarayana needs to help the business manage risk related to inevitable shifts in projects underway.
 

In implementing the solution, Satyanarayana avoided the need for up-front capital investments in IT infrastructure by choosing Kyndryl’s cloud-based and fully managed SAP solution. This also eliminated the need for Satyanarayana to build a large infrastructure team within Dilip.
 

Because Dilip now has an accurate and comprehensive view of assets and inventory, they can forecast requirements for spare parts and raw materials with a higher degree of accuracy. That enables maintaining optimal inventory levels in each part of the organization. Improved forecasting reduces working capital requirements by 5%, which enable the company to take on in additional projects.

Our SAP S/4HANA deployment was complex, and required significant customization to integrate all of our business verticals, and enable real-time updates via mobile devices in the field. Kyndryl helped us navigate each stage of the project effectively. The team’s competencies in the areas of change management and knowledge-transfer were extremely important for a digital transformation project of this scale.

Satyanarayana Kasturi

Continuing to transform while protecting business-as-usual

As part of the continued partnership, Dilip and Kyndryl have weekly reviews of infrastructure operations as related to the current performance of the business, and monthly meetings that identify strategic opportunities for IT improvement that support business goals.
 

In 2023, to reduce infrastructure costs that were set to rise substantially with the existing cloud deployment, but also to gain true cloud agility, scale, and performance, Satyanarayana consulted with Kyndryl on alternatives. He accepted the recommendation to migrate Dilip’s entire SAP landscape from an existing cloud provider to Amazon Web Services (AWS). The migration included upgrading Dilip to the latest version of SAP and relocating the physical S4/HANA server into the AWS landing zone.
 

The highest priority was protecting business-as-usual operations during migration. To do that, the team used Kyndryl's automation framework. By making hardware interchangeable, and eliminating the work of building virtual machines manually, this approach ensured reliability in provisioning infrastructure in the new environment, increasing accuracy and reducing the time to provision infrastructure resources.
 

As a result, within the AWS landing zone, Satyanarayana’s team could quickly scale up operations by 800%, if needed. Kyndryl continues to provide the staff needed to manage the SAP Basis going forward, consulting with AWS when needed for advice on best practices in using the platform’s cloud services.

The project was estimated to take six months, but it only took 88 days. That is due to the hard work and dedication of the Kyndryl team. I could see them working on the ground day and night and on weekends.

Satyanarayana Kasturi
Engineers design and supervise road construction

What progress looks like

 Business impact

  • $7 million (USD) annual savings in decreased operations costs.
  • 5% reduction in working capital, increasing liquidity and reducing risk.
  • Doubling the number of building projects Dilip can run simultaneously (from 20 to 40) as a result of ERP integrations
  • With zero impact on operations, the team migrated the SAP Basis for Dev, QA, and Production environments into Amazon Web Services (AWS) in just seven weeks.
  • Zero incidents of any severity level in the year since migration. This contrasts with multiple Severity 1 incidents during tenure in the previous datacenter.
     

Innovations underway

  • Designing and building a Security Operations Center (SOC) within the AWS landscape.
  • Digitizing the processes that will run Dilip’s mining projects as part of a 25 year contract with the State of India. These include inventory and product management, and heavy machinery fleet management.
  • Exploring fleet, procurement, and finance management use cases for AI enablement

About Dilip Buildcon Limited

Founded in 1987 and headquartered in Bhopal, India, Dilip Buildcon Limited has grown to become the largest builder of roads in the country. With operations in roads and highways, urban development, mining and irrigation, Dilip Buildcon Limited employs more than 35,000 people.

female warehouse worker with helmet and safety vest

Meet the team

dilipsir head shot

Dilip Suryavanshi

Chairman, Dilip Buildcon
Devendra Jain, CEO, Dilip Buildcon

Devendra Jain

Managing Director and CEO, Dilip Buildcon
kasturi head shot

Satyanarayana Kasturi

CIO, Dilip Buildcon
Satyanarayana Kasturi LinkedIn
manoj-pandey

Manoj Pandey

Customer Partner, Kyndryl
Manoj Pandey LinkedIn

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