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India Global Capitalization, Inc. Wins Three New Quarry Licenses; Expects Annual Revenue From Quarries Between $9M to $10M

IGC is capitalizing on construction growth opportunities in India with expansion of its mining and quarrying business.

BETHESDA, Md., May 19 PRNewswire-FirstCall — India Globalization Capital, Inc. (Amex: IGC.U, IGC.WT, IGC), a company developing infrastructure in India, today announced that its Indian subsidiary, Sricon Infrastructure, has won three new quarry licenses and has started work on two existing quarries for the production of construction aggregate, a category of coarse particulate material used for a wide range of construction needs.

Sricon now has five site licenses with two installed crushers and is producing approximately 600,000 metric tons of aggregate annually. The annual production capacity is projected to expand to between 2.5 to 3 million metric tons over the next 18 months as the other sites become operational. The quarries are expected to yield this capacity for five years. At current aggregate prices, IGC projects the annual revenue from the quarries to be between $9 and $11 million. Sricon has a business order backlog estimated at approximately $195 million, and IGC expects completed projects to generate over $100 million in revenue in the current fiscal year ending March 31, 2009.

According to the Freedonia Group, in 2006, India was the fourth largest aggregate market in the world with annual demand of up to 1.1 billion metric tons. Sales have risen an average of 7.7% annually over the past 10 years compared to a global average of approximately 4.4%, with roughly 40% of the demand being for crushed stone. The quarry market is fragmented, with much of India's aggregate supply coming from small local quarries.

Ram Mukunda, CEO of IGC, commented: "As we expand our mining and quarrying business, our medium term objective is to quickly establish ourselves as a dominant regional player with a rapidly expanding revenue. By deploying blasters and rock crushers in quarries that we own and operate we can sell aggregate and also control the cost of an important raw material used in the construction of highways. For example, the price of aggregate has doubled in the past 24 months. We have broad technical skills in this sector and will be focused on bidding on many more rock quarry, coal and ore mining licenses, and contracts."

The Government of Maharashtra awarded Sricon the licenses, based on a competitive process in which Sricon demonstrated technical prowess in the mining sector including handling blasters in open pit mines, safety record, logistics, prior experience, financial capability and a strong regional presence.

India is one of the fastest growing economies in the world with a current GDP growth rate of 9 percent. India's government expects to spend an estimated $475 billion on infrastructure over the next five years to support the country's rapidly expanding economy, and provides powerful incentives for public and private partnerships including privatizing key assets such as highways, mines, airports, seaports and power plants. Mukunda added: "Our core areas of business capitalize on these high growth opportunities."

About IGC

Based in Bethesda, Maryland, IGC controls two infrastructure companies in India, Sricon Infrastructure Private Limited ("Sricon") and Techni Bharathi, Limited ("TBL"). IGC has three core competencies: 1) highway and other heavy construction, 2) mining & quarrying and 3) civil construction and engineering of high temperature plants. The Company's medium term plans are to expand each of these lines of business.

IGC's operations are based in India with offices in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form S-3 and IGC's other filings with the SEC containing information about IGC, the Indian companies and other relevant documents, are available at no charge at the SEC's Internet site (http://www.sec.gov). For more information about IGC, visit the company's web site at www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully execute on the contracts and business plan, (ii) our ability to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes in the exchange rate between the US dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward looking statements have been discussed in greater detail in the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

SOURCE India Globalization Capital, Inc.

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