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[ Source - Business India, Dated - 11 Feb. 07 ]
AFCONS Infrastructure, a Shapoorji Pallonji group company, is planning to equip itself to meet the growing infrastructure demand
Construction companies never had it so good. Huge project outlays in the infrastructure sector and the capacity additions embarked by the private sector has led to a sharp surge in project investments. The total project investments in infrastructure, as per a Cris-lnfac study, has gone up from Rs.1,03,400 crore in 2002-03 to nearly Rs.1,44,400 crore in 2005-06. The total number of projects envisaged in the private sector also has gone up significantly, CMIE and Crisil has estimated that the average annual investments is expected to go up from Ks22,000 crore per annum over the seven-year period (1999-05) to go up to over Rs86,500 crore in the subsequent five-year period (2005-10).
Given the opportunities arising from these projects, it is not surprising to see construction companies gearing up to meet the additional demand made on the sector for executing the same. Order books are bulging with even medium sized companies boasting of two-three years of order back-log.
Against this background, many of capital markets for raising funds. AFCONS Infrastructure, a Mumbai-based, Shapoorji Pallonji group company, is planning to come out with a maiden public offering, to raise funds primarily to fund its equipment cost of Rs. 125 crore and repayment of debts to the tune of Rs.75 crore, besides raising funds for meeting its other strategic initiatives.
Incorporated in 1959, the company is primarily into civil engineering, engaged in executing large and complicated projects across sectors with special emphasis on building jetties, docks, harbours, roads, bridges, tunnelling and special foundations. Most of the projects undertaken are for the government and quasi-government bodies, with private sector projects accounting for only around 36 per cent of the total. Income from international projects accounts for around 8%.
Besides marine jobs, the company has also constructed several bridges in India and overseas. One of the prestigious projects being executed currently is the 1,315 m Chennab bridge in Jammu & Kashmir, which is part of the Jammu-Udhampur-Baramullah Rail link project being undertaken by Konkan Railway. We are now keenly looking at expanding our presence in the energy sector, particularly oil and gas and power." says K. Subrahmanian, MD, adding that the
new gas finds across KG basin will require special storage facilities, Indian Oil as well as GAIL had mooted the construction of gas caverns, even as the gas find were being Announced.
Dedicated distribution networks are also being planned to be set up by various players including Reliance Industries, Essar, besides ONGC and BPCL. The total investments including the setting up or gas and oil pipeline over the next five year is estimated to cost Rs. 1,70.200 crore . As against the project cost In exploration and production of oil and gas accounting lot just 4 per cent of the total com, civil construction accounts for nearly 80 per cent of the overall cost In gas and pipeline projects.
