Gammon India to foray into logistics biz.
Gammon India to foray into logistics biz.
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Construction firm Gammon India (Q, N,C,F)* is shoring up its transmission unit and is planning to enter logistics business, in a bid to expand its presence in infrastructure development, report agency sources. “We have been changing our profile from a construction entity to being a project-related company,“ Parvez Umrigar, group spokesman and head of its infrastructure development arm said. The Mumbai-based firm, which last week announced a tie-up with a unit of Wyndham Worldwide Corp, will develop a budget hotel chain across India. It has a strong presence in road, power and port projects through its infrastructure development arm. Gammon, which posted revenues of Rs 18.6 billion in 2006/07, currently focuses on infrastructure projects through its unit Gammon Infrastructure Projects and on transmission tower business through Associated Transrail Structures (ATSL). > With all three businesses stabilising, the company now plans to expand into areas where it sees synergies and high growth potential, Umrigar said. Gammon is ramping up capacity at ATSL and is also bidding for transmission projects to benefit from the government`s focus on increasing transmission networks in India. ATSL, in which it holds nearly 60% stake, is investing Rs 400 million to set up a 30,000-tons-a-year conductor unit at Silvassa, which will be completed in the next few months. The unit, which expects to touch 7 billion Rupees in revenue in 2007/08, will increase focus on export markets towards this end is eyeing small units to boost growth. Gammon is now considering entry into the logistics business in both road and port segments. In ports it is looking at both physical and services business, while in roads it is eyeing fleet management and transport services. The company is also very strong in the roads segment, having bagged several toll road projects across the country. Shares of the company closed up Rs 2.25, or 0.49%, at Rs 460. The total volume of shares traded was 34,744 at the BSE.(Friday)
