Full Press Release Details
Globalization Capital Commissions First Quarry for Commercial Use, Second
Expected to Begin Production in February
Quarries Represent $40 Million in Potential Revenue over 5-7 Years
Md., Jan. 6, 2010 - MARKETWIRE - India Globalization Capital, Inc. (NYSE Amex:
IGC), a company competing in the rapidly growing materials and infrastructure
industry in India, today 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 the
middle of February 2010.
quarry is located on 10 acres of land leased from the Government of India under
a mining license; the second quarry is on 22 acres of land. Combined capacity of
the two quarries is projected between 10 million and 11 million metric tons of
rock aggregate, representing potential revenue of approximately $40 million,
based on current pricing, over five to seven years.
Mukunda, Chief Executive Officer of India Globalization Capital,
commented: "We are excited to commission our first quarry, which
strengthen our market position for aggregate sales in Maharashtra, India's
leading industrial state. We see a very strong market for rock aggregate,
and we plan to create a pure-play rock aggregate business in India. This
industry and investments in this sector are encouraged by the Indian Government,
which is offering incentives for the deployment of quarries. With India poised
to accelerate its infrastructure build out, the demand for rock aggregate is
expected to increase substantially."
its IGC Materials subsidiary, India Globalization Capital 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, India was the fourth largest aggregate market in the world in 2006, with
annual demand of up to 1.1 billion metric tons. Sales have risen an average of
7.7% annually during the past 10 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.
India Globalization Capital
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 visit www.indiaglobalcap.com.
press release may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements reflect
management's current views and are subject to risks and uncertainties that could
cause actual results to differ materially from those projected, expressed or
implied in these statements. Factors that could cause actual results to differ,
relate to: (i) ability of the parties to successfully execute on contracts and
business plans, (ii) ability to raise capital and the structure of such capital
including the exercise of warrants, and (iii) exchange rate changes between the
U.S. dollar and the Indian Rupee. We undertake no obligation to publicly update
any forward-looking statements, whether as a result of new information, future
events, or otherwise. Other factors and risks that could cause or contribute to
actual results differing materially from such forward-looking statements have
been discussed in greater detail in the company's definitive proxy statement and
supplement filed with the SEC and incorporated by reference into the Form