- Group Websites
The Ramky Foundation was formed on August 12, 2006 under the leadership of Smt. A. Dakshayani, its Managing Trustee.
Strengths and Strategies
Ramky Infra believes that its principle competitive strengths are
The Government of India has targeted an investment of $1 Trillion for the country’s infrastructure development in the 12th Five Year Plan (Source: Planning Commission of India). This shall significantly enhance the infrastructure of the country.
The total construction opportunity (industrial & infrastructure) is expected to grow by 1.9 times over the next 5 years as compared to the last 5 years. This growth will be driven by investments in the infrastructure segment, which are expected to almost double over the next 5 years. Investments in roads, power, urban infrastructure, ports and railways are expected to grow more than the double over the next 5 years as compared to the last 5 years.
In the industrial segment, the oil and gas sector will be the primary growth driver with a share of 54 % in industrial construction investments. Other leading sectors in the industrial segment include metals and automobiles, which together contribute close to 30 % of the construction expenditure of the industrial segment.
The company is currently focusing on a number of PPP opportunities in the Roads, Irrigation and Railways sectors as they are currently contributing around 70% of the total investments in the infrastructure industry.
Investments in roads sectors augur well for the construction industry, as the sector has almost 100% construction intensity, i.e., nearly the entire investment in a road is channeled into the construction activity. As the government's main focus is on the development of roads sector thru the National Highway Development Programme (NHDP). Approximately 26,782 km of national highways are expected to be completed over next 5 years.
Investment in irrigation projects are mostly by the state governments. Irrigation investments, primarily driven by expenditure of state governments, are expected to grow by 1.6 times over the next 5 years. The progressive states in this sector are Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Madhya Pradesh and Uttar Pradesh, which account for around 70% of the aggregate investment on irrigation by states. There was a slowdown in execution of irrigation projects in Andhra Pradesh in the last 3 years, which is the largest contributor among all the states, because of a change in leadership in the state and unrest on account of the Telangana issue. In 2011-12, we expect a pick-up in execution of projects in Andhra Pradesh with the government's efforts towards improving the pace by prioritizing projects and better management of the funding of projects.
Construction opportunity from railways to grow by 2.3 times over the next 5 years. Research expects construction opportunity from railways to be around Rs. 1,632 Billion over next 5 years. Addition to rolling stock, construction of new lines, gauge conversion and track renewals/ repairs will drive investments along with the dedicated freight corridor (DFC), which has a total project cost of around Rs 490 billion. DFC comprises of the Western (1,534 km) and Eastern (1,839 km) corridors. The Western corridor is likely to be majorly funded through Japanese assistance from Japan International Cooperation Agency (JICA), while a major part of funding for the Eastern corridor will be provided by the World Bank.