CCC has Tuticorin SEZ approval, waiting for notification

Consolidated Construction Consortium plans to raise Rs 188 crore in their IPO with a price band offer of Rs 460-510. S Sivaramakrishnan, MD, Consolidated Construction Consortium said that the company is already geographically spread across six regions with offices in Pune, Kolkatta and Delhi to cover the North, West and East region. He added that though presently, South India is leading the order book, they hope to balance it out over the years.

Talking about their proposed food processing SEZ near Tuticorin port, he said that they are working on the master plan. He added that the approval has been obtained and they are waiting for the notification.

Excerpts of CNBC-TV18’s exclusive interview with S Sivaramakrishnan:

Q1: Your order book as on July 31 2007 which is stated at 2050 is about 2.5 times your FY07 sales. What sort of an order book position do you see at the end of FY08 vis-a-vis the kind of revenues you will do for the same?
A: I am constrained to speak on the future. Otherwise we hope to get the same kind of growth, upto 40-50% growth.

Q2: Your fixed price contracts, can you tell us how much that gives you as a percentage of your order book and how much does it give you as a percentage of your overall revenues?
A: Our fixed price contract is hardly about 10% of our overall order. For all the rest, we have the escalation past through, it’s there available.

Q3: Also your exposure to South India, at this point in time what percentage of your total order book position comes in from South India and how are you looking to diversify?
A: Right now we have already geographically spread across six regions. We already have offices in Pune, Kolkatta and Delhi, to cover the North, West and the East. Right now our Delhi regions are already picking up large orders.

In that surrounding Delhi region about six states we have already working Rajasthan, Himachal Pradesh, Uttarakhand, UP we are already working apart from Delhi itself. The Kolkata region is already started picking up order from Bhubaneshwar and Kolkata.

So geographically, yes presently South India is leading the order book. But we hope to balance out over the years.

Q: Specific word on your SEZ and plans you are looking to setup a food processing SEZ. Could you tell us what area of land and what are the plans in terms of investments for the same?
A: Basically it’s that we have already acquired 358 acres near Tuticorin port. It’s exclusively for food processing. We are just working on the master plan. We are yet to get the notification, the approval has come and the notification is likely to come later. So we are discussing with our master plan consultants.

Source: MoneyControl.com