ET reported that Hindustan Construction Company has discontinued three verticals thermal power, ports and hydrocarbons that were started nearly a year ago.

The thinking at that time was that big business could be generated in these sectors. However, the economic slowdown that followed has ensured that the contribution of these verticals to HCC's current order book of roughly INR 18,000 crore is insignificant.

Only one of these three verticals, thermal power, bagged an order for INR 230 crore in the past one year. The ports vertical has been implementing INR 608 crore construction works for Naval Dockyard in Mumbai but the order was bagged before the vertical was formed. HCC will complete these two projects, but will not look for new business for the three verticals.

Mr Gulabchand chairman of Hindustan Construction Company said that the verticals have been merged to create a leaner organization that can chase large projects.

He said that "The verticals were created because of huge planned expenditure that was anticipated in these sectors. Now, the potential of these businesses becoming big does not exist.”

(Sourced from ET)