IVRCL mulls foray into marine mining

Written by Kavitha Venkatraman | B V Mahalakshmi | Hyderabad | Updated: Dec 28 2008, 07:13am hrs
The over Rs 3,600 crore infrastructure major, IVRCL Infrastructures & Projects Ltd is looking at foraying into marine mining activities including micro tunneling when the market gets opened up completely. The company is also seeing huge business prospects in the infrastructure replacement market in the country.

Speaking to FE, E Sudhir Reddy, chairman and managing director of the company said, the company is present in water and environment, transportation, buildings and power sectors.

We have projects worth Rs 15,000 crore to be completed over the next few years. And 99.5% of the projects are government funded projects. Of the overall order book, nearly 65% comes from water, 17% from buildings, 10% power and the balance comes from roads and other miscellaneous sectors. We are looking at foraying into the marine mining works including micro tunneling, once the domestic market is ready. IVRCL has the capabilities for handling these kind of works. But, we will still go in for technical collaborations with some international company for the purpose. The company is talking to couple of companies but nothing has been finalised, he said.

He said, there are lot of business opportunities in the domestic especially in the infrastructure replacement market. There is huge potential in this segment. India has several ageing infrastructure which needs to be replaced like railway lines, sub stations and transformers, water pipelines etc. This involves new capex plans. If these projects are taken up by the government over a period of time, it will create lot of opportunities for the EPC and infrastructure development companies in the country, he said adding there is no estimate on the size of the infrastructure replacement market.

Reddy said, the company did a turnover of over Rs 3,600 crore in March 2008 and the plan is to grow 40%-45% CAGR.