Business Daily from THE HINDU group of publications
Thursday, Sep 20, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, Sep 20, 2007 ePaper |
|
|
|
|
|
|
|
|
|
|
|
Home Page
-
Stock Markets Markets - Stocks Corporate - New Business
BL Research Bureau Nagarjuna Construction’s climb up the value chain is increasingly becoming evident with the company bagging a Rs 1,558-crore order from SAIL in consortium with Korean company POSCO E&C. The order, which involves setting up of a blast furnace complex for the IISCO steel plant in West Bengal, will bring in Rs 1,100 crore of revenue over a two-year period and raise the company’s order book to Rs 8,800 crore. The order is significant in two respects: one, it is the company’s largest single order in the industrial infrastructure space; two, the company appears to be consolidating its position as an Engineering, Procurement and Construction (EPC) provider from being a mere civil structure builder in the industrial sector. ‘Value-add’ focusIt is now focusing on providing more value-add services such as electrical, mechanical and other plant works. While the key blast furnace technology in the IISCO project will be provided by POSCO, all other activities will be undertaken by Nagarjuna. The company has also stated that it will continue to bid for similar projects through its joint venture with POSCO and bid for ‘Balance of Plant’ contracts in power projects, which involves installation of factory works around the core power plant. EnablerA transition to a comprehensive service provider is likely to improve Nagarjuna’s profit margins. Private equity investor Blackstone recently infused about Rs 615 crore into the company by picking up a 14.5 per cent stake, strengthening Nagarjuna’s networth and enabling it to bid for larger projects. More Stories on : Stock Markets | Stocks | New Business | Real Estate & Construction
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
