Iran Construction Investment Co. (Plc)

Future plans

The company’s future plans are logical and defendable due to their principle field of activities which is housing and construction not for the short but for the mid and long term. Based on the past experiences, constant monitoring and analysis of the current evolving and changing market conditions together with the analysis of the competitors’ status and endeavor to correctly identify the needs of the changing society, the future plans are outlined as follows:

Rising stockholders dividends

One of the major goals of the company is to make reasonable profit from the core activities of the company and as a result, increasing the stockholders dividends. Although the core activity of the company, that is “construction”, is not categorized as an activity with short term return of investment, but by defining a variety of construction projects we will en-devour to define our profitability vision in such a way to include gradual profitability as an inalienable part of the plans.

Expansion of the subsidiary companies’ activities

The main focus of the subsidiary companies is their presence in the "construction" field. To increase these companies’ efficiency, the following measures which were taken since past year, are still included in the future plans.

  • Collecting and creating a database relating to housing market changes (the database is being completed and the after final verification it will be ready to be presented to the public)
  • Identifying opportunities and threats in the housing market, which may have the potential of correct identification and utilization, considering the imminent approval of the “Comprehensive Housing Plan”.
  • Continuation of major competitors’ identification and monitoring the new entrants to the housing construction field.

In conjunction with the above-mentioned points, identification and negotiation with the potential partners in the field of housing construction, and definition of the suitable solutions for increasing mutual capability of the company and its partners with defendable formula, will be on our agenda and be followed in future.

Enhanced utilization of the financing methods

Considering the undeniable advantage of innovative financial practices (based on the Government’s strategic policies), the development of various methods of financing, as mentioned below, are noted.  Considering the final declaration of the government strategic policies, particularly in the field of “housing” and “banks effective involvement” in this area, these policies will be noted continuously:

  • Housing units’ sales and pre-sales with different approaches
  • Utilization of bank’s loans and facilities, taking into account the financial costs, in order to avoid the ineffectiveness of the profitability of projects
  • Utilization of innovative financial instruments and securities in the stock market
  • Attempting to prepare the qualified companies to enter the stock market to offer their shares to the public

Establishment of the evaluation system for the projects and sub-organizations

To create an efficient and effective system, two important issues were put on the agenda: Firstly, the modification of the organizational structure; Secondly, the establishment of a comprehensive financial discipline system. In this path, the full activation of the audit and risk management committee has provided the possibility of constant and permanent monitoring. These committees’ continuous activities provides for continuous performance evaluation in order to correct and modify, as much as possible, the commercial activities which is the major element of the future plans of the holding.

To continue the decision making for fate of low-profit companies

Decision making process for the low-profit companies started last year. In this regard, it was decided to either sell the low-profit companies in order to avoid the value depreciation of the investments, or increase their profitable activities.


Completion of formulation of strategic plans

Reactive decisions, usually not only do not lead to good and predictable results, but can confront the company with unpredictable risks.  Preparation and development of short, medium and long-term plans based on the last year “Future Plans Report” were put on the agenda.

Preparation of these kind of plans and finalization of the company’s “Mission Statement” are influenced, to a considerable extent, by external as well as internal environment, and these external environment has been subject to great changes due to foundational changes in government policies.

Although the last year study has progressed but it has been greatly affected by the external environment due to the above-mentioned reasons. Although part of the study has been reviewed but finalization of Vision Plans are seriously followed in the company’s future plans, and by doing that the company’s profitability vision only for one year, but for future years will be formulated based on a relatively accurate analysis of the external effective developments and flexibility of the organization, and after the complete final analysis it will be presented and will be acted upon.