BETHESDA, MD--(Marketwire - 10/29/09) - India Globalization Capital, Inc. (AMEX:IGC - News), a company competing in the rapidly growing materials and infrastructure industry in India, today announced it has finalized plans and advanced construction for two rock quarries in Maharashtra, India. The two quarries are expected to be in production by the middle of December 2009, in time for the full swing of the construction season.
Combined capacity of the two quarries is projected between 10 million and 11 million metric tons of rock aggregate, representing potential revenue, based on current pricing, of around $40 million over five to seven years.
IGC has agreements with five landowners for joint ventures to develop five separate rock quarries and is advancing construction phases on two of the quarries at this time. The joint ventures are structured with land and license owners who contribute their land and license to the joint venture with IGC contributing sales, engineering, and capital. Profits are shared between IGC and the landowners based on a pre-negotiated formula.
Ram Mukunda, CEO of IGC, commented: "We recently raised about $6 million and we are putting it to work in expanding the materials side of our business. These new quarries will strengthen our market position for aggregate sales in one of the fastest-growing regions of the Indian construction market. Maharashtra is India's leading industrial state. We are capitalizing on construction growth opportunities in India with expansion of our mining and quarrying business, and these first two quarries are part of a series of planned expansions."
IGC Materials produces crushed rock for construction projects in India, where developing infrastructure remains vital to maintaining the country's economic growth. According to the Freedonia Group, in 2006, India was the fourth largest aggregate market in the world with annual demand of up to 1.1 billion metric tons. Sales have risen an average of 7.7% annually over the past ten years compared to a global average of approximately 4.4%, with roughly 40% of the demand being for crushed stone. The quarry market is fragmented, with much of India's aggregate supply coming from small local quarries.
About India Globalization Capital
India Globalization Capital is an infrastructure and materials company operating in India, and builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China. The Company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi, and Bangalore. For more information about India Globalization Capital, please visitwww.indiaglobalcap.com.
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