IVRCL eyeing projects in Dubai, Abu Dhabi

City-based IVRCL Infrastructures and Projects Limited, a leading engineering and construction company in the country, is gearing up to take up infrastructure projects abroad.

The company is initially looking at Dubai and Abu Dhabi as possible markets in the Middle East. It has already bid for some water-related infrastructure projects in these countries.

The company, which has roped in Citicorp International and ChrysCapital II, Mauritius, as strategic equity partners with a Rs 78-crore investment, is now looking at some big ticket projects following augmentation of its networth and technical abilities. It is also firming up plans to enter the IT-enabled services in a small way.

Disclosing this at a media conference, IVRCL's vice-chairman and managing director E Sudhir Reddy said that the company had identified power and railways as thrust areas for future growth.

The company would particularly look at EPC (equipment procurement and construction) projects in these fields which would greatly boost the profitability of operations for the company, he said.

IVRCL has forged alliances with John Laing International of the UK and SMRT of Singapore in the railways sector, and DSD Dillinger Stahlban of Germany and Spain's Tuabensa in the power sector.

The estimated revenues of the company for the financial year 2003-04 were around Rs 785 crore, while the estimated net profit was around Rs 29 crore.

Sudhir Reddy said the company had registered a compounded annual growth rate of over 40 per cent during the last four years. The company recorded a net profit of Rs 15.5 crore on total revenues of Rs 440 crore in the previous financial year.

At present, IVRCL's thrust area as well as forte is in water-related infrastructure segment which accounted for Rs 500 crore of the total revenues last year.

The company had an order book position of Rs 1,492.7 crore as of March 31, 2004. Of this, water and irrigation projects account for Rs 862 crore, roads and highways Rs 441.3 crore, power related projects Rs 38.92 crore and building and structures Rs 150 crore.

Sudhir Reddy said the company was expecting an order book position of Rs 3,000 crore and revenues of Rs 1,200 crore by the end of the current financial year. The company has pre-qualified to bid for projects valued at Rs 11,000 crore.

On the foray into IT-enabled services, he said the company had tied up with Delhi-Hope Technologies for offering design services to customers. The company has set up a 35-strong engineering design team for the purpose, he said.