Ramky Infrastructure Targets Overseas Sales as India Orders Slow
Ramky Infrastructure Ltd. (RMKY), an Indian construction company that counts Swiss Finance Corp. among its investors, is targeting increasing the share of sales from overseas fivefold by 2016 as growth at home slows.
The company, based in the southern city of Hyderabad, expects to earn half its revenue from overseas in five years, compared with a forecast of sales from abroad of about 3.5 billion rupees ($72 million), or 10 percent of the total, in the year ending March 31, Chairman A. Ayodhya Rami Reddy said in an interview yesterday.
The builder of roads, bridges, water projects and irrigation networks that has completed the first phase of a special economic zone in Gabon, Africa, aims to win more contracts overseas, Reddy said. India may fall short of meeting its target of spending $50 billion in public work projects in the five years through March 2012, Montek Singh Ahluwalia, deputy chairman of India’s Planning Commission, said this month.
“If you want to scale up, India alone is not sufficient,” Reddy said. “You have to have a global footprint. Also, margins abroad are relatively better.”
Ramky Infrastructure expects orders to grow to 200 billion rupees in the year to March 31 from 120 billion rupees at present, Reddy said.
Shares fell 1.6 percent to 209 rupees as of 2:23 p.m. in Mumbai trading. They have declined 34 percent this year, compared with a 20 percent drop in the BSE India Sensitive Index.
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