Schwing Stetter (India) Private Limited (SSIPL), the wholly owned subsidiary of German concrete equipment major SCHWING Gmbh is looking at growing at a modest 10 per cent growth rate this year and posting a turnover of Rs 900 crore, despite the current slump in the real estate market which the company feels would be compensated by the boom in the infrastructure projects.
Speaking on the sidelines of the launch of its new concrete pump SP 1400 in Kolkata on Thursday, Anand Sundaresan, managing director, SSIPL said “We expected to grow at 30-35 percent growth rate this year since for the last four years the company maintained an envious CAGR of 45 percent, but due to the current market scenario and slump in demand the company would be able to achieve a turnover of Rs 900 crore this calender year at a modest 10 percent growth rate.”
SSIPL, a leading player in the Indian ready mix concrete equipment industry, posted a turnover of Rs 800 crore in the year 2007 contributing roughly eight percent of the total group turnover. It hopes to contribute 13 percent of the group turnover this year posting a turnover of Rs 900 crore. We hope to maintain this 10 percent growth rate and touch Rs 1000 crore by 2009 end, informed Sundaresan.
With a healthy order book position in hand this would not be difficult, the company has an order book position of Rs 250 crore at present, the liquidity crunch would not affect our industry directly, he mentioned.
Sundaresan also pointed that the parent company would continue to invest in India given its huge domestic market and big potential in the infrastructure sector. India would be a major contributor to the group turnover, in five years time we hope to contribute 30-40 percent of the group turnover, he said.
Since only 30 percent of the company's turnover came from real estate ready mix market and 70 percent from the infrastructure projects and construction companies the company feels that it would help compensate the current slump in the real estate market.
