Chennai-based diversified infrastructure firm Marg is planning to go global by entering Sri Lanka and Africa through EPC and port-related activities. Marg CMD GRK Reddy tells FE’s Sajan C Kumar about his plans.
Post consolidated in South what will be your next move?
Recently, we have taken up some projects in North and look to become a pan-India player. Since we have entered into the consolidation phase, we would like to tap the overseas markets for engineering, procurement and construction (EPC) and port-related activities. We will be looking at Sri Lanka and Africa. We have signed an MoU with PYCSA Infrastructures, a Spain-based company engaged in the business of engineering consulting, construction & management among others. We aim to explore opportunities in both domestic and overseas construction and port projects. Marg and PYSCA will apply as a consortium for bids/tenders, for relevant public and private projects in water management, hydraulic resource and water quality, transport infrastructures and environment engineering and related sectors.
What about the restructuring plan for which PwC has been mandated?
PwC, which has been appointed as consultant to evaluate and conduct the restructuring exercise, is on the job. It will take into account real estate, EPC, SEZ, malls and port verticals. This will help to unlock the value hidden in the books and enhance it for all the stake holders. We have hived off the real estate business into separate division called Marg Properties. We have also tied up with International Infrastructure Consultants for management advisory services.
What are your investment plans for the four verticals?
We have a five-year investment plan for the verticals. In marine infrastructure, phase 2A of Karaikal port is under way at Rs 1,569 crore which will be completed by October 2011 and work on phase 2B for Rs 1,390 crore will be commenced, subsequently. The phase 1 of proposed Mugaiyur ship repair yard cum minor port will be completed for Rs 900 crore.
In urban and industrial infrastructure, we are developing 2.88 mn sq ft of engineering SEZ space, 4.5 mn sq ft of multi-services SEZ space and 14.66 mn sqft of residential space within Swarnabhoomi. In EPC, investment on machinery and equipment based on a need basis towards the execution of the Rs 2,822 crore order book will be made as well as R&D investments directed at reducing time, cost and improving quality parameters. In real estate, it plans development of 3.9 mn sq ft of residential space. We plan to completion Marg Junction, a mall which includes 1 mn sqft of retail space, 0.27 mn sqft of office space, and 0.517 mn sqft of hotel plus serviced apartments space at Rs 728 crore. The company will be taking up the phase 2 development of Bellary airport at Rs 232 crore and Phase 1 development of Bijapur airport at Rs 108 crore.
What is your revenue target? What are you plans to scale up footprints in North?
Last fiscal, our revenue stood at Rs 760.9 crore and we hope to end this fiscal with 30% growth. We will be raising funds through internal accruals plus some PE funding. In North, the EPC division is executing orders worth Rs 367 crore for firms including MES, NBCC, LDA, Bhel, IOCL, HPCL, HUDA, HSC and Northern Railways. It will be executing two projects for UPHDB and LDA for Rs 200 crore. We will be incresingly bidding for projects in North.