'Construction cos to make concrete gains from infra boom'
Construction companies will reap the maximum benefit out of the current buoyancy in the country's infrastructure sector that is luring real estate developers to tie up with these firms, an official of investment banking firm Enam Securities said o...
By PTI |
MUMBAI: Construction companies will reap the maximum benefit out of the current buoyancy in the country's infrastructure sector that is luring real estate developers to tie up with these firms, an official of investment banking firm Enam Securities said on Thursday.
India is estimated to spend around Rs 17,570 billion during the 11th Plan (2007-12) across the sector, Enam's Head (Infrastructure) Brijesh Koshal said here, adding typically 45 per cent of infrastructure budget is spent on construction.
"This provides a room for a whole lot of activity in the construction sector and it is only obvious that real estate developers will go for joint ventures or other routes with the existing construction players to reap benefits," he noted.
Asked whether there is any such deal in the offing, he evaded a direct answer, saying "there is a strong case for such things happening in the near-term".
Already, the country's biggest real estate firm DLF has tied up with UK-based construction company Laing O'Rourke, while another property developer Ansal recently joined hands with Malaysia's UEM Builders.
Khosal said the buoyancy in construction sector will also attract foreign direct investments in the form of strategic partnerships for infusing capital or bringing in technology, which is a key factor for timely execution of projects.
Timely execution, Koshal said, will determine the ultimate winner in the construction sector in the long-run since it not saves cost and also inflates the bottom line of the project.
India is estimated to spend around Rs 17,570 billion during the 11th Plan (2007-12) across the sector, Enam's Head (Infrastructure) Brijesh Koshal said here, adding typically 45 per cent of infrastructure budget is spent on construction.
"This provides a room for a whole lot of activity in the construction sector and it is only obvious that real estate developers will go for joint ventures or other routes with the existing construction players to reap benefits," he noted.
Asked whether there is any such deal in the offing, he evaded a direct answer, saying "there is a strong case for such things happening in the near-term".
Already, the country's biggest real estate firm DLF has tied up with UK-based construction company Laing O'Rourke, while another property developer Ansal recently joined hands with Malaysia's UEM Builders.
Khosal said the buoyancy in construction sector will also attract foreign direct investments in the form of strategic partnerships for infusing capital or bringing in technology, which is a key factor for timely execution of projects.
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Timely execution, Koshal said, will determine the ultimate winner in the construction sector in the long-run since it not saves cost and also inflates the bottom line of the project.
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