India Globalization Capital Commissions First Quarry

It has been reported that infrastructure and materials company India Globalization Capital, Inc., has announced that it has commissioned the first of two quarries for commercial production in Maharashtra, India. The second quarry is in the final construction phase and is expected to begin production in February.

The combined capacity of the two quarries is expected to be 10 - 11 million t of rock aggregate. The first quarry is incorporates 10 acres of land leased from the Government under a mining license; the second quarry is located on 22 acres of land.

The company’s total revenue for the three months ended 30 September 2009 was US$ 5.4 million, compared to US$ 10.5 million for the corresponding period in 2008. Revenue for the quarter ended 30 June 2009 was US$ 2.7 million representing a growth of nearly 100% when compared to the previous year. The projected revenue from the two new quarries is expected to reach some US$ 40 million over the next five to seven years.

The Indian government is encouraging industry and investments in the infrastructure sector, and currently offers incentives for the exploitation of quarries. The commissioning of the quarries will strengthen the company’s market position in the state of Maharashtra, where the demand for rock aggregate is very strong. India Globalization Capital also plans to create a pure-play rock aggregate business in India. The company already produces crushed rock for construction projects in India through its subsidiary IGC Materials.

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