Ramky Group draws up Rs 700cr plan

Hyderabad-based Ramky Group, engaged in businesses like infrastructure, waste management, real estate and bulk drug manufacturing, is charting out an over Rs 700-crore investment plan for India and abroad.

This includes setting up an electrical and electronic waste management centre each in Andhra Pradesh, Tamil Nadu, West Bengal, Karnataka and Delhi and a smelting, crushing and refining facility at the Hardware Park near Hyderabad at a total outlay of Rs 110 crore, besides building an integrated waste management project in the Ivory Coast at a cost of $150 million (approximately Rs 600 crore).

"We have already acquired around six acres each in these states and have applied for necessary clearances from the respective pollution boards. Five acres of land for the Hyderabad facility too has been acquired from the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). We should be starting the construction work on these projects in a month or two," A Ayodhya Rami Reddy, chairman of Ramky Group, told Business Standard.

The group currently runs 20 bio-medical waste management facilities, 13 hazardous waste management facilities, six municipal waste management centres and five infrastructure industrial parks across the country.

Stating that the group is also focusing on tapping the niche market of Ivory Coast, Reddy said they had submitted a detailed feasibility report to the government of Ivory Coast and were awaiting its approval. "We will take the private equity placement route besides roping in strategic partners to fund these projects," he added.

According to him, the group is also considering foraying into the manufacture of ethanol from waste, and is currently exploring various opportunities including entering into a technology tie up with a US-based company. It intends to start the project by this year end.

The Ramky Group is also in the final stages of spinning off its engineering services arm, Ramky Infra Consultancy Services private Limited (RICL).

"A US-based investor has already picked up 26 per cent stake in RICL, which was recently rechristened as Voyounts Solutions Private Limited. While RICL's employees will hold 49 per cent in the new entity, we are currently in talks with infrastructure majors like IL&FS for the remaining equity. The entire transaction is expected to be through in a week or so," Reddy said.

The group's revenues crossed Rs 1,000 crore for the financial year ended March 31, 2007, with its flagship company Ramky Infrastructure accounting for nearly Rs 700 crore. Revenue outlook for the current fiscal is around Rs 1,800 crore.