What's New?
Vaccum Dewatering Machine from Trimix, Sweden.
Financial Strength
A core principle of the Makhija Group is a disciplined and conservative approach to the use of our financial resources.
The Makhija Group has been very successful in building a strong financial base over a number of years. This financial strength is fundamental for a contracting organisation, which is required to fund bonds and guarantees, working capital, and significant investments in plant and equipment.
The Group's strong financial base is a core element of our strategy, driving growth through selective equity stakes and funding capital intensive activities. The best business partners are attracted to the Group: they understand that our ability to deliver goes hand in hand with the financial support we bring. Project investors are encouraged by Makhija's commitment to sharing development risk by taking equity stakes, and clients understand that the guarantee of our financial strength makes us a better partner.
Investing for growth
Makhija is committed to providing a solid return to investors and has averaged a very creditable return on equity over the last five years. We continue to see opportunities for profitable growth through investment and our track record in this area demonstrates the benefits it brings.
Selective allocation of funds
Our funds are selectively allocated across the Group's companies. Allocation is based on the historic performance of the business unit wanting to invest and on careful assessment of the proposed returns. A comprehensive investment analysis process is also used to evaluate all potential risk factors.
Plant and equipment
The Group's substantial resources include a large fleet of mobile plant, machinery and equipment. The latest technology is used to maximise our technological advantage and to drive improvements in efficiency and productivity.
Working capital
As a contracting organisation the Group needs to support significant amounts of working capital, which includes items such as the procurement of construction materials, the payment of subcontractors/ suppliers and employees, plant costs and other operating costs.
Bonds and guarantees
By the nature of its contracting work, the Group is often required to provide undertakings to clients that projects will be satisfactorily completed. Large projects will often require the Group to provide a performance bond, which covers the performance of a particular contract and generally represents a percentage of the contract payable if a project is not completed as specified. Performance bonds are secured by the Group's balance sheet.
In some cases, undertakings are provided by way of bank guarantee, which provide comfort to a client that a bank will guarantee that any outstanding claim is settled. We have excellent relationships with all our bankers.
Acquisitions extend capability
The Group is well positioned to acquire businesses that extend our range of capability and the scope of our services.
