Sargon Geosynthetics to make Hyd its south hub

Expects one-third of its turnover from Andhra Pradesh

New Delhi-based Sargon Geosynthetics Limited, which recently set up an office in Hyderabad, is planning to make the city its hub for the entire south region.

One of the reasons for this is the increasing number of infrastructure and irrigation projects that the state has taken up. The company, which recently forayed into Andhra Pradesh, is expecting one-third of its turnover for 2005-06 from the state.

Geosynthetic products are basically used to reinforce soil structures, in erosion control, drainage, pavements, highway construction, landscaping, etc.

The products are either used to retain soil in place, prevent any water flow or even to minimise erosion. Geosynthetic materials used in such applications are usually made of plastic, nylon or other synthetic materials.

Sargon, which specialises in this niche area, has executed projects like Jaipur-Kishangarh expressway on NH-8 where it has reinforced soil wall for approaches of three flyovers and erosion control in Hasimara, West Bengal. At present, it is executing a (reinforced soil structure) project in Gaya, Bihar, for a wall area of 7,000 sq mts.

"In this first year of operations in Hyderabad, we expect to source at least one third of our company's targeted turnover from Andhra Pradesh for the year 2005-06," Vikramjiet Roy, managing director of Sargon Geosynthetics, told Business Standard.

The company has done a business of Rs 6 crore in 2004-05. It is targeting to achieve a turnover of Rs 15 crore this year.

"We also plan to undertake significant market development exercises so as to take these technologies to all corners of the state. Our company's priority would be to establish ourselves firmly in Andhra Pradesh in terms of technology acceptance and promotion. We will then shift our attention to other areas in southern India," he added.

The kind of works that the company is currently trying to pursue in the state are supply and installation of low density polyethylene (LDPE) lining system for sewage treatment plant at Amberpet besides construction of reinforced soil structures for the approaches of flyovers for the Municipal Corporation of Hyderabad (MCH).

Canal lining jobs for major irrigation projects of the state, reinforced soil structures for the Jurala Dam project and slope stabilisation in Singareni Collieries are some of the other projects that it is aiming at.

The company sources the polymers that go into these solutions from abroad. "Only five per cent of the products that we use are available in India," Roy said, adding that it is difficult for them to convince the contractors to use geosynthetic products in spite of it costing only around two per cent of the project cost.

"This is because the awareness of these products is low in India," he said. "The industry that is worth Rs 200 crore in India is, however, growing at a fast clip of between 30 per cent and 40 per cent," Roy added.