Indu Projects targets Rs 1000 crore turnover by '07

Indu Projects Limited (IPL), an infrastructure development company, is currently focusing on structuring its operational and business model to achieve a turnover of Rs 1,000 crore by 2007.

The company proposes to come out with an initial public offering two years later.

"Our turnover is expected to cross Rs 1,000 crore in the current year, Rs 2,000 crore next year and Rs 3,000 crore two years later," company's founder and managing director, I Syam Prasad Reddy, told mediapersons here on Thursday.

He said that the company has a land bank of over 2,000 acres and projects on hand worth Rs 15,000 crore, which would be executed over a period of next five years. In 2005-06, the company posted 142 per cent growth in its turnover to Rs 312.2 crore compared with Rs 128.4 crore in 2004-05.

IPL will be diluting 8.5 per cent of its equity stake in another company in the next couple of months for a consideration of about Rs 150 crore.

"The process is on. We have reached an agreement with a company in which we will dilute the equity stake by August, this year," Reddy said, adding that post dilution, the company's equity capital would be Rs 15 crore.

Earlier, the company had diluted 8.9 per cent stake to non-resident Indians at Rs 900 per share.

Explaining the business model, Reddy said that the company would be operating through four strategic business units (SBUs) - realty, construction, realty infra, and build, operate and transfer (BOT) projects. Each SBU would be operationally independent and be responsible for building and nurturing the relative business.

IPL is also looking at growth and expansion through several strategic networking through partners and alliances. It also proposes to rope in international consultants.

"In the coming year, we also plan to look at raising resources to fund our businesses and encourage strategic partners into realty projects to synthesise our core competence as a developer," Reddy said.