Date:21/06/2008 URL: http://www.thehindu.com/2008/06/21/stories/2008062155501500.htm

Business

Era Group to invest Rs. 1,600 crore

Special Correspondent

To set up plant in Nagpur

Plans to expand construction equipment unit
Intends to enter gas pipeline, marine piling sectors

NEW DELHI: Backed by a strong order book of Rs. 5,000 crore, infrastructure major Era Group has chalked out plans to invest Rs. 1,600 crore during the next three years in activities ranging from expanding construction equipment management division to setting up ready-mix concrete (RMC) plants.

While around Rs. 800 crore would be spent on importing machinery for the construction activities, the company would invest Rs. 400 crore in setting up nationwide network of 60 ready-mix concrete units in three years.

The group also plans to set up a plant for manufacturing pre-fabricated buildings in Nagpur with an investment of Rs. 200 crore to cater to the western and southern markets for construction of warehouses and stadia. To cash in on the popularity of quick-fix solutions for the construction industry, the company will expand its ready-mix concrete division ten-fold from the current six units to 60 plants in the next three years.

Commenting on the performance, H. S. Bharana, Chairman and Managing Director, Era Infra Engineering, said: “We are extremely happy for performing beyond targets. The increase in our revenues reflects our strong focus, expertise and experience in core infrastructure projects. “Activity in the RMC space is accelerating and we are seeing some strong traction in this space. We expect to invest Rs. 400 crore in the RMC business over three years,” he said.

The group is further gearing up to consolidate its position in airport projects. The company intends to enter into gas pipeline and marine piling sector and is in the process of acquiring technological expertise through the joint venture or acquisition route,” the Chairman and Managing Director added.