HYDERABAD: Hyderabad-based IVRCL Infrastructure and Projects is confident of meeting its guidance of 35% growth and Rs 5,000-crore revenue despite the economic slowdown looming ahead. Its key bets? The government and water.
E Sudhir Reddy, chairman and managing director, told DNA Money, “Primarily we cater to the government and the slowdown, if any, is unlikely to affect our projects that are either allotted to us or those that are already being executed.”
According to Reddy, the company has an order book of Rs 15,000 crore, to be executed over the next three years. In addition, the company is in the process of bidding for projects, again in the government segment, for various construction activities.
“For every one rupee of work we complete, we are adding a fresh project worth Rs 1.25. This way, the order book is only building and there is no sight of any slowdown as of now,” Reddy said.
The big area for IVRCL today is water, right from purification to supply and monitoring.
In Reddy’s own words, “Water business is turning out to be company within a company for us. Most of our projects are related to water and we see a big business there.”
Indeed, water-related projects make up as much as 60% of IVRCL’s Rs 15,000-crore order book today and the company is trying to improve its capabilities so as to be able to tap the full potential when the segment opens up completely.
“We are ready. We have everything to offer for everybody. Right now, we are executing a supervisory control and data acquisition project for the authorities in Hyderabad. This is based on technology and helps the civic body to monitor the water drawing by every customer. We are also participating in some of the biggest irrigation projects in the country,” Reddy explained.
IVRCL’s recent acquisition, Hindustan Dorr Oliver, too is focusing on water related projects. However, the company is working on specialising in water treatment and currently building effluent treatment plants for four refineries in the country.
Several foreign players have also been eyeing the segment, But, Reddy feels the business currently available in the country would be unviable for a foreign player if it comes on its own.
