Diversification, the way to go for Gates

It seems that the move towards bigger and better things is on for Gates PCM Construction Ltd. While the company celebrates its strong financial finish to 2013 by recording its highest turnover yet, its management finds it important to reflect back at the reasons for this new success.

Till 2011, Gates PCM Construction Ltd’s core business was management of manpower resources for railway projects as a sub-contractor. But there came a point when that was simply not good enough for the management of this young, vibrant and ambitious company.

According to Chief Operations Officer, Mr Thanaraj, the decision for expansion and diversification was the natural next step for the company. “If you become really good at what you do, it is only natural for you to want to take your skills and talent to the next level. That is exactly what we are doing as a company right now” added the COO.

While these expansion efforts meant taking on projects of a much bigger scale within the railway industry, the management of Gates PCM Construction Ltd did not stop there. It went one step further by diversifying the company’s capabilities within the industry and by doing so, re-branding the company as a full-fledge railway company.

According to Chief Executive Officer, Mr Krishna, today Gates PCM Construction Ltd is capable of offering a full spectrum of services for laying and linking tracks and has ventured successfully into maintenance and new-built as well. Investment into machinery has been an important factor to establishing this diversified spectrum of services.

“Our investment into machinery has helped us to cut down on labour costs and ensure we remain competitive and efficient in the railway industry. We spent close to $1.5 million in expanding our arsenal of machinery and tools, which now includes a Flash-Butt Welding Machine. And we are very happy to announce that we are the first locally owned railway company to own this machine” added CEO Mr Krishna.

Such moves have enabled the company to diversify its services and by doing so give the company the opportunity to work with major players in the railway industry, including the two local train operators. Gates PCM Construction Ltd currently conducts works such as renewal of track and replacement of timber sleepers for railway operator SMRT. It has also engaged itself in LRT ground signal works as well.


However, expanding its scope of works in the local railway industry was not the only success that Gates PCM Construction has encountered in 2013. It has also landed railway projects overseas and is now engaged in a Malaysian project whose value is estimated at over RM 3 million. Such growth has allowed the company the scope to re-brand itself as a full-fledged railway company.

But Gates PCM Construction Ltd did not just stop at industry level diversification. Its progress in diversification went one step further as the company spread its reach across industries. It has currently employed itself in two new ventures in significantly varying industries. With its new venture, 24/7 Security Services Pte Ltd, it has ventured into the security industry. 24/7 Security Services Pte Ltd is a company that caters to its clients’ needs, in the protection of commercial and residential properties as well as the welfare of those that work and live in such areas.


Besides 24/7 Security Services Pte Ltd, Gates PCM Construction Ltd has also had vested interest in Up Man Placement Pte Ltd, which is a leading international executive search firm. Thanks to support from Gates PCM Construction Ltd, it has, just recently, established its new centralised office in Singapore. Supported by its offices in India, Up Man Placements Pte Ltd is now heavily involved in placements particularly in the Middle East and Singapore.

However, beyond these local establishments, Gates PCM Construction Ltd has made its presence felt overseas as well, showing that its diversification efforts are never restricted by geographical boundaries. This time, Gates PCM Construction Ltd once again explored new ground by foraying into property development in Thailand. Building residential townships by working in partnership with other construction companies, Gates PCM Construction Ltd has shown once again that it is by no means limited by barriers, whether industrial or geographical.

With such a strong focus on diversification, there is no doubt that the Gates brand will soon become a household name.


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