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Ramky plans coal mining in Indonesia

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K Rajani Kanth Chennai/ Hyderabad
Last Updated : Jan 21 2013 | 1:24 AM IST

Ramky Infrastructure Limited, a Hyderabad-based integrated infrastructure construction and development management company with strategic emphasis on environmental projects, is planning to foray into coal mining in the next nine months.

“We are still working out the overall business plan. We are looking at some coal mines in Indonesia and are contemplating acquiring captive concession agreements for one or two mines there,” M Goutham Reddy, director (international operations) of Ramky, told Business Standard.

The company is venturing into power and in this connection, it is exploring the coal linkage. It is currently in discussion with three mining players in Indonesia and is likely to seal deals in six to nine months from now, he added.

Ramky, which completed the acquisition of cleantech business from Singapore-based Sembcorp Environment Private Limited in October this year, is currently doing waste management business overseas including in Muscat.

“We plan to expand into the waste management space in West Asia and Southeast Asia,” Reddy said, adding the company expects about Rs 300 crore revenues to flow in from its international operations by the end of the next financial year.

Ramky on Thursday said it had bagged orders worth Rs 175.43 crore, which include an order valued at Rs 30.61 crore for the construction of flood lighting along the Indo-Bangladesh border, Rs 59.21-crore for construction of houses and development of infrastructure for slum localities in Bhopal, a Rs 22.20-crore project that envisages construction of a trauma care and medical research centre in Bengal, and a project worth Rs 63.41 crore for providing lateral network and water supply distribution in Bangalore.

The company currently has an order book aggregating Rs 9,000 crore on hand in infrastructure business alone, of which about Rs 6,000 crore worth of orders are to be executed in the next 24 months. On the development business side, it has 12 BOT projects, which include three road, five industrial parks, one bus terminal and three property projects.

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“We should be going in for an initial public offering in June 2010 to raise anywhere between Rs 400 crore and Rs 500 crore. The issue proceeds will be deployed for working capital requirements, capital assets and equity into the BOT projects,” Reddy said.

Infrastructure Leasing and Financial Services (IL&FS), International Finance Corporation and Sabre-Abraaj Capital had invested around Rs 140 crore for a 14 per cent stake in Ramky Infra in December 2006.

“We expect to garner a net profit of Rs 120 crore on revenues of Rs 2,400 crore this financial year, as against Rs 70 crore and Rs 1,500 crore respectively during last fiscal, primarily on account of our contracting business. We are largely growing in water, waste waster, buildings and roads segments,” he said.

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First Published: Jan 01 2010 | 12:55 AM IST

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