India’s largest crane hiring company, Sanghvi Movers Ltd (SML), is looking forward to windmill and power plant construction sectors as prime drivers of its fortune in the current year.
Firm earmarks Rs 500 cr for buying cranes
MUMBAI: India’s largest crane hiring company, Sanghvi Movers Ltd (SML), is looking forward to windmill and power plant construction sectors as prime drivers of its fortune in the current year.
Keeping in mind the unprecedented demand coming from these sectors, the Pune-based company has earmarked a capital expenditure of Rs 500 crore over the next two years to procure cranes of a range of tonnages.
Chandrakant P Sanghvi, chairman and managing director, SML, said, “Last year the company posted a 56.91% jump in net profit, largely due to the supply to the windmill sector. The trend is likely to continue this year.”
However, in fiscal 2008-09, SML expects a major thrust from the power plant construction sector, as a number of projects are expected to kick off this year.
“The power plant construction sector will account for 30% of our revenues in the current year,” he said. Last year, it accounted for 17% of the total revenues.
Meantime, SML posted a total revenue of Rs 254.32 crore for the last fiscal, a jump of 42% from the previous year. The windmill sector, Sanghvi said, is expected to contribute up to 35% for the current year. Though, it is lower by 7% from the previous year, but still substantial. He said the company does not foresee any slowdown in any of the sectors for the next couple of years.
An analyst with a local brokerage said the company’s largest clients are in the wind mills, refineries and petrochemicals and power sectors. The market opportunity for hiring cranes is over Rs 2,800. Since, SML stands good chances of grabbing a huge chunk of the pie.
Sanghvi said apart from the windmill and power sector, cement and petrochemical sector will give a major thrust, as these sectors are in a heavy expansion mode.
Its major clientele includes
Suzlon, Enercon, Sterlite, Reliance Infrastructure and BHEL.
He said the company plans to invest Rs 250 crore this year for increasing its fleet size from the current 278 cranes to 329 cranes, which will include both crawler and hydraulic.
“Out of the total 51 cranes that we will be purchasing this year, 30 will be brand new cranes and the rest will be used,” Sanghvi said. The company would again invest a similar amount the following year.
m_promit@dnaindia.net
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