The Hindu Business Line : Sanghvi Movers to spend Rs 550 cr for buying cranes

Wide reach
The company has 265 cranes (from 20 tonne to 800 tonne capacity) worth over Rs 700 crore.
The cranes provided by Sanghvi Movers are used in infrastructure and core projects for industrial applications such as heavy lift and maintenance services.
Its client list includes Suzlon, Reliance, Enercon, BHEL, Aditya Birla Group, Vedanta Group and Larsen and Toubro.

S. Shanker

Mumbai, Dec. 15 Cashing in on the boom in the infrastructure sector, Pune-based crane hiring company Sanghvi Movers Ltd plans to purchase 100 cranes worth over Rs 550 crore over the next 18 months.

This includes 72 second-hand ones from the US at Rs 160 crore, primarily for power sector operations. About 0.5-0.7 per cent of infrastructure spends translate into crane hiring charges. Rental charges depend on the length of contract.

Deepak Fertilisers had paid Rs 1 crore for a one-day operation to raise 400 tonne towers. But it took 50 trailers and 15 days to kick-start the operation, not to mention the time spent on detail engineering regarding positioning and transportation. Sanghvi Movers now has 265 cranes (from 20 tonne to 800 tonne capacity) worth over Rs 700 crore. The fleet comprises a range of telescopic, crawler, and truck mounted lattice cranes.

Allied businesses

The company is also venturing into allied businesses such as boom placers (concrete mix pumping equipment) and offshore services for the oil and refinery companies.

The cranes provided by Sanghvi Movers are used in infrastructure and core projects for industrial applications such as heavy lift and maintenance services. Its client list includes Suzlon, Reliance, Enercon, BHEL, Aditya Birla Group, Vedanta Group and Larsen and Toubro.

For the year ended March 31, Sanghvi Movers reported revenues of Rs 178.63 crore as against Rs 149.05 crore for the year ended March 31, 2006. Net profit at Rs 47.18 crore was 46.61 per cent higher, while operating profit margin stood at 73.75 per cent.

Mr Chandrakant P. Sanghvi, Chairman and Managing Director, Sanghvi Movers, said the company was keen on acquiring 10 barges from China or Singapore for offshore operations that require barge-mounted cranes.

Hiring services

This apart, with Suzlon’s support, the company intends launching hiring services in China, the US and South America in the next six months. “We may tie up with a local partner or go it alone,” he said.

Suzlon is a major client of Sanghvi Movers. Sixty per cent of the company’s revenues come from the windmill segment and 10 per cent from the power sector. However, over the next two years, Mr Sanghvi is confident of the power sector providing a 30 per cent share. On Friday, the company stock closed at Rs 316.50, down 1.31 per cent over previous close.

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