Sanghvi Movers eyes Rs 360 cr revenue in FY11

Crane leasing company Sanghvi Movers today said the company is eyeing 20 per cent growth in the next three years and Rs 360 crore revenue by this fiscal on the back of growing power sector.

"With major power projects in the pipeline coupled with rise in windmills and refineries, we expect to clock 15-20 per cent growth in next three years," Sanghvi Movers Chief Managing Director Chandrakant Sanghvi told PTI.

The company expects a growth of over five per cent in revenue this financial year at around Rs 360 crore compared to Rs 342 crore during 2009-10, he said.

The company has lined up a Rs 300 crore capex for this financial year and around Rs 150 crore is planned for 2012 fiscal for adding fleet of cranes, he said.

Sanghvi Movers has a fleet of 360 cranes and to keep up with the growing demand for crane rentals, the company is planning to add another 22 in the 400, 600 and 1,600 tonne category, of which four are already delivered, he said.

"We have placed orders for 10 cranes of 400 tonnes which will be used in windmills and power stations up to 300 MW, 600 tonnes machines will be used for power plant and refineries and for erection of refineries and this 1,600 tonne cranes will be used in refineries," he added.

Sanghvi Movers is spending over Rs 750 crore for buying these 22 cranes and and 25 odd balancing cranes, he said.

Sanghvi said the company is booked heavily for the power sector, which presently contributed around 28 per cent to the business.

"Looking at the growing order book in this segment which is expanding at a fast pace we anticipate that in two to three years time, 50 per cent of our business will be from the power sector," he added.

Other sectors like windmill sector contributed 24 per cent to the business, while cement 17 per cent, refinery and gas 14 per cent, sheet and metals 10 per cent and metros and other industries seven per cent.

The company, he said, expects a huge demand for the 1,600 tonne machines, with lot of refinery projects coming up or in pipeline.

"This 1,600 tonne crane, which is used in highly specialised segment, can also be used for nuclear power plants," he added.

The company is also venturing into multi-axle trailers and has already placed orders of worth Rs 70 crore for 200 axle line spread over a period between 12 months and 24 months starting next year.