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Fernando Castillo: “Our sales have increased sixfold in 4 years”
It is one of the five main companies of the construction sector in Peru, but historically it has always kept a low profile. Close to celebrate its first half century, now ICCGSA has a lot of things to tell. Its manager shared with us, as an exclusive, the company plans.
What motivates you to talk about the company now?
We are growing considerably. Our sales have increased sixfold in the last four years and this takes us to another phase as a company. Now we need a higher level of exposure, among other aspects, because we are entering the real estate business and we need our potential clients to know more about us and the services that we can provide to them.
The company has 48 years. Do you represent the second generation?
That is right. My father was the founding partner, and the company has already been transferred to the second generation. We are very optimistic about the future of Peru in general and of this particular sector.
Which have been the main milestones in the history of the company?
The company was created in 1965 and it originally aimed at the infrastructure sector. During the military government of Juan Velasco, the State became the main client of this sector, with companies such as Minero-Perú, Hierro-Perú, Petro-Perú, among others. Thus we spent the 60s and the 70s. Then, we faced the crisis in the 80s and things started to get better in the 90s. Private clients, who were very few before, started to arrive. Investment in the mining sector was the breakpoint.
How did you start in the mining business?
In the 2000 decade, we were hired to develop the mineral pipeline of Antamina, which would take the production from the mine to the port of Huarmey. At that time, it was the second or third largest mineral pipeline in the world. We worked hand in hand with a French company leader in the industry, and from then on we started working with the mining sector a lot. In addition to this French company, we partnered with a Chilean company for electromechanical aspects.
What happened next?
The growth levels of the sector were erratic –like the economy during our first years– and many companies did not know how to get by. We succeeded instead because we could look at things with attention and determined that it was not appropriate to get into debt under certain circumstances. Unfortunately, the companies that went for growing with too much debts could not continue. We chose not to do it and now we are very well positioned to face the major challenge of closing the infrastructure gap that affects the country. Now no one doubts that it is necessary to face this challenge and therefore, we have plenty of field to continue growing in that area.
And what did you do to increase your sales sixfold in four years?
The possibilities in the construction sector were in place. We were focused on infrastructure and we saw the opportunity to diversify our business to construction and other sectors. Before, we carried out road infrastructure and earthmoving works most of the time. Then we grew considerably, for example, when we took part in sections 2 and 3 of the Interoceanic highway partnered with other leading companies of the sector. We also decided to enter the real estate business with our brand “Valora”, and we have been expanding in those areas.
How important you expect the real estate sector to be in your total turnover?
Perhaps 15% or 20% if we grow in this business as expected. Regarding the total turnover, we expect to double it in the next two or three years.
How much will it increase then?
To US$500 million.
In what other sectors you plan to diversify your business?
We have entered other businesses related to construction such as cranes and hoisting services, with state-of-the-art equipment in Peru. We have also done so with a partner and we are providing services to such sectors as mining and energy. If we enter a new business, we always try to do it with an expert partner in order to avoid a learning curve that implies losing many resources.
Are you looking at sectors other than construction and real estate?
Yes. We have also entered the forestry, agricultural and agroindustrial businesses. We have 1.000 hectares in Olmos and other 100 in Sullana. We are looking for partnerships in these sectors.
Source: El Comercio
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