Hyderabad-based Gayatri Projects will soon be entering the urban infrastructure and water treatment business segments.
MUMBAI: Hyderabad-based Gayatri Projects will soon be entering the urban infrastructure and water treatment business segments.
The company had announced a foray into power and hospitality sectors just a couple of months ago.
K G Naidu, vice-president - finance, Gayatri Projects, told DNA Money, “Urban infrastructure and water treatment are the two new initiatives of Gayatri Projects, for which the company has also formed joint ventures.”
Though the major contributor of revenues will still be its road construction division, which brings in 60% of the revenues (irrigation, industrial construction and other activities contribute 35%), the two new initiatives would offer an efficient de-risking of the business model, said Naidu.
Gayatri Projects has signed joint venture agreements with real estate giant DLF for a foray into urban infrastructure and with Ino Exchange for a foray into the water treatment arena.
In water treatment, the partners recently bagged an order for a project worth Rs40 crore in Hyderabad. Work on the project is expected to start soon.
“In urban infrastructure, we are interested in a number of projects but no deal has yet been struck,” said Naidu.
As per the JV agreement between Gayatri Projects and DLF signed in January this year, the partners are looking at build-operate-transfer projects of Rs5,000-10,000 crore in roads.
Meanwhile, Gayatri Projects will undertake real estate construction for a Rs30 crore DLF project in Hyderabad, said Naidu.
A few months ago, the company had announced its entry into power generation and hospitality sectors. These ventures will be undertaken by different group companies where Gayatri Projects, the flagship, will act as a promoter, said Naidu.
“It is too premature to talk about the power plans of the company. We are working on the blueprint and in a months’ time, will be able to freeze on some concrete strategy,” Naidu said to a question.
Under the hospitality sector initiative, however, Gayatri Projects is constructing two premium hotels in association with the Hyatt Group. One will be a seven-star hotel
and the other a five-star hotel, he added.
The company currently has an order book of Rs3,400 crore, which it expects to execute over the next 30 months. This is expected to be around four times the size of its turnover, expected to be around Rs 800 crore by the end of this fiscal.
The group expects a turnover of Rs5,000 crore in 3-4 years, said Naidu.
m_promit@dnaindia.net
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