New Delhi : India's leading infrastructure company Ramky Infrastructure Ltd is eyeing several water projects overseas. The company is making efforts to increase the share of overseas sales at least fivefold by 2016.
Ramky Infrastructure is eyeing water and wastewater projects in several countries in the Middle East as well as Asia. It is also looking to consolidate its position in the water and wastewater treatment space in the domestic market.
The initiatives on this front are part of its plans to increase focus on the water industry to push the group's consolidated revenues as it faces increased competition in some other verticals it is engaged in including roads & transport and buildings.
Ramky Infrastructure Ltd Managing Director Y R Nagaraja told India Water Review, "the company is exploring water and wastewater projects in Middle East, particularly in Saudi Arabia and Oman. We are also looking at projects in Asia and are exploring Indonesia, Vietnam and Sri Lanka".
Nagaraja said the company would only be interested to take up water and wastewater projects that have clear funding. "Ramky Infra would be looking to maintain a no-risk policy in terms of project finance and we would like to ensure that the fund commitment from our side is low", he added.
To this end, the company has decided to only concentrate on projects with strong external funding in place from multilateral funding agencies like the Asian Development Bank (ADB) and others like Japan International Cooperation Agency (JICA).
The company is also keen to bring down its working capital cycle. It is looking to bring down working capital cycle of about 150-155 days to 120-130 days by the end of the current financial year.
In the water space, Ramky Infrastructure has a healthy order book position, with Rs 2500 crore of projects in the water and wastewater segment in hand as of April 2011. Most of these projects are in the municipal segment and are to be completed over the next two years.
"We would also be bidding for projects worth about Rs 1000 crore in the water space in Oman over next two-three months. We are also looking at water projects in Saudi Arabia and other countries in the Middle East", said Nagaraja.
The company is also looking forward to bagging $400 million worth of projects in Gabon in Africa.
"We have bid for projects worth $1 billion in Gabon, and expect to win projects worth $300-400 million," Ramky Group Executive Director Goutham Reddy was quoted as saying in recent news reports.