Date:18/10/2005 URL: http://www.thehindubusinessline.com/2005/10/18/stories/2005101803340200.htm

Back SAAG-RR expects to double turnover on healthy order position

M. Ramesh

Chennai , Oct. 17

SAAG-RR Infra Ltd, which ended last year with a topline of Rs 16 crore, expects to double its turnover in the current year, thanks to "healthy order-booking".

The company's Managing Director, Mr R. Sriram, told Business Line that orders on hand added up close to Rs 45 crore, and another Rs 20 crore were under bidding. Of the orders secured, at least Rs 30 crore would be executed this year, he said.

The company is into construction of residential and industrial complexes, but with its acquisition by SAAG group of Malaysia last year, hopes to break into the oil and gas sector.

SAAG-RR's order book is built of relatively small contracts, mostly from public sector undertakings.

Among the jobs it recently won are a Rs 5.2-crore order from Nuclear Power Corporation, a Rs 2.7-crore contract from ISRO, a Rs 6.92-crore order from NTPC, a Rs 5-crore order from Chennai Metrowater, a Rs 5-crore order from BHEL, Tiruchi, and a Rs 3.5-crore order from HPCL.

From the private sector, SAAG-RR has received a Rs 5.9-crore job from B Braun Medical Services, which is putting up a plant at the Mahindra Industrial Park, near Chennai, and another Rs 4.64-crore order from Degremont, which is doing a water purification project for Chennai Metrowater.

Alongside, SAAG-RR is in talks with Iv-Oil & Gas, a Dutch company that provides a range of engineering and maintenance services for oil rigs and platforms, for doing all its back-office work in India.

SAAG-RR and Iv-Oil & Gas are also bidding jointly for ONGC projects.

SAAG-RR's aspirations to break into the oil and gas sector comes from the expertise of its Malaysian parent, the SAAG group, which has a 51 per cent stake in the Indian company.

The SAAG group is one of the larger players in the oil sector in Malaysia and SAAG Oil and Gas Sdn Bhd is licensed by Petronas, Malaysia's premier oil company, to provide value-added services, equipment and IT solutions to it.