Indu Projects Ltd, part of the Rs 643-crore Indu group, has joined hands with the UK-based DLF Lango Rourke to bid for high value road sector projects. The alliance with the international company will give credibility to the company in handling big road projects.
Speaking to FE, I Syam Prasad Reddy, managing director and chief executive officer, Indu Projects Ltd said: “We have the necessary expertise to handle road projects. But to bid for big projects, the company should have the credibility. Our partnership with DLF Lango Rourke will help in addressing this issue. In fact, the company has already bid for three big projects worth Rs 1,500 crore each and have almost got qualified. Probably after completing these projects, the company will be able to qualify for big road projects on its own.”
The company is also looking at getting investments from other companies for (build operate and transfer) BOT projects. “We do not want to invest the whole money in BOT projects. We would like to get some foreign partners invest in such projects. Indu Projects might invest to the tune of 25% of the equity, while the balance can be invested by other partners. We would like to do 60% of the work and 40% can be done by the partners. So for our contract business, we get more than what we invest. The idea is to execute more projects rather than getting the money stuck in one or two projects”, he explained. In fact, the company is trying to replicate this model in its real estate business.
Talking about the various projects of the company, Reddy said, the company has already found an European client for the 8 lakh sq ft IT park coming up in Gachibowli at a cost of Rs 240 crore to Rs 250 crore. The client would be buying one portion of the park and the other half would be given to them on lease with a provision to sell whenever they want. They would have the right of refusal for the first three years. “We have another IT Tech Zone project coming up in about 150 acres of land. We are building 7-8 million sq.ft of office and 10 million sq.ft of residential space. Work has commenced at the first phase. We have appointed Gensler, an American consultant for the residential portion. They would bring in the concept and master plan for the project, while the local constractors will do the services”, he added. The company is also building a 650-room hotel for another European client.