September 08, 2008

HCC to float infrastructure subsidiary

It is reported that Hindustan Construction Company is planning to tap the opportunities in public private partnerships for India's infrastructure.

Mr Ajit Gulabchand CMD of HCC, while addressing on the sidelines of the India Economic Summit 2007, said that it is planning to float a wholly owned subsidiary called HCC infra to bid for public private partnership projects including airports.

He added that “We will soon float a 100% subsidiary to bid for PPP projects and will also bid for developing airports. We are in talks with foreign firms. All this would require lot of money. Initially, we will bring in the money. We will look at an IPO at a later stage".

Mr Gulabchand informed that HCC seeks to become an integrated infrastructure company with a foray in hydel power and ports apart from airport. It expects the 3 sectors of real estate, infrastructure and construction services to be its growth drivers. Acquiring a land bank of 2,000 acres in regions like Mumbai Metropolitan region and Pune is also on cards for HCC.

HCC is expecting to close fiscal 2008 with a turnover of over INR 3,000 crore, while its order book is expected to cross INR 12,000 crore up from INR 9,300 crore in 2006-07 fiscal.