Date:28/11/2008 URL: http://www.thehindu.com/2008/11/28/stories/2008112857951600.htm

Business

Totem scouting for Rs. 150 cr. funding

Special Correspondent

Forms four strategic
business units
Will add 500 employees
in one year

HYDERABAD: Totem Infrastructure Ltd., which has taken Rs. 30-crore private equity funding, is scouting for another Rs. 100-150 crore of funding from three to four other private equity players.

Addressing a press conference here on Thursday, Abhijit Roy, Director (strategy and acquisition), said the 20 per cent of the company’s equity was picked up in the first round by the Singapore-based Aquarius Capital.

The Rs. 160-crore infrastructure company, with an order book of Rs. 1,600 crore, targeted to increase its order book position to Rs. 2,000 crore in the next three to four months, as it would be participating in bids for some upcoming road and power projects.

The company formed four strategic business units (SBUs) for roads, railways, industrial buildings and power and irrigation. It was planning to achieve a turnover of Rs. 1,000 crore before it would go in for an initial public offering (IPO) in 2012.

Mr. Roy felt that the infrastructure sector had a bright future as huge investments were committed by the Government and also private players in this realm, in spite of the fact that it was certainly impacted by the economic meltdown. Totem was executing several projects as a cash contractor in building highways, irrigation projects and railways.

The maximum revenue earner for the company was the road sector. It would add 500 employees in the next one year.