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Our Bureau

Bangalore, Dec. 3 The slump in some real estate markets could result in about 25 per cent dip in revenues for readymix concrete equipment company Schwing Stetter India, a 100 per cent subsidiary of Schwing Gmbh, Germany.

The company expects its growth to be affected due to the slowdown in the economy and said it could take a hit on its revenue growth to the extent of Rs 150-200 crore during 2009-10, as fresh orders from the readymix business segment were not received this year from markets such as Bangalore, Chennai and other since supply of concrete has come down by 60-70 per cent in some markets, according to Mr Anand Sundaresan, Managing Director, Schwing Stetter India.

The company had earned revenue of Rs 800 crore last year, and expects it to be at Rs 900 crore for 2008-09. “We expect our sales growth to be at 10 per cent,” said Mr Sundaresan. The company has order worth Rs 250 crore, said Mr Mr V.G. Sakthi Kumar, Chief Operating Officer, Schwing Stetter India. The company has had a CAGR growth of about 35 per cent in the last five-six years.

The readymix business segment, which constitutes about 30 per cent of the company’s revenues, has seen a 60-70 per cent reduction in business due to the real estate market slump. However, “growth in the infrastructural projects across the country will make up for the loss of growth in the readymix market,” he said.

One of the major infrastructure projects in the country that the company is associated with is the Yamuna Expressway (earlier called Taj Expressway) an eight-lane expressway between Agra and Noida. “We are supplying 18 batching plants each with a capacity to produce 240 cubic metre/hour of concrete. The order value is Rs 50 crore,” said Mr Sakthi Kumar. Three machines have been supplied, and the supply of the rest would be over by April next year, he added.

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