Marg Limited to finalise restructure plan soon

CHENNAI - City-based infrastructure development company Marg Limited expects PricewaterhouseCoopers (PwC) to submit a report on restructuring of its operations in two months, after which a decision would be taken by the company, an official of the firm said Tuesday.

“The residential real estate business is under a separate subsidiary Marg Properties. We expect the PwC report in two months, following which a decision will be taken,” CMD G.R.K. Reddy told reporters here while announcing the company’s third quarter results for this fiscal.

Speaking to IANS, executive director B. Bhushan said: “The dynamics of residential and infrastructure projects are entirely different. Hence, it was decided to (develop) the residential real estate business into a separate subsidiary.”

He said the Marg group always focused on leasing out the commercial real estate and not outright sale.

According to Reddy, Marg Limited would focus on engineering, procurement and construction business under the verticals - marine construction, integrated urban construction and industrial construction.

He said Marg Limited closed the third quarter of the current fiscal with a revenue of Rs.317 crore and a net profit of Rs.15.9 crore.

According to him, the order book position of the company stood at Rs.3,597 crore, of which external orders (other than orders from subsidiaries) account for Rs.765 crore.

“We have tendered for projects worth Rs.3,838 crore, of which Marg Limited is the L1 (lowest) bidder for projects worth Rs.862 crore,” Reddy said.

According to Munavar Sherif, executive director, the company was aggressively bidding for marine and power sector projects.

The company was also looking at photovoltaic solar power projects, he said.

“There is a lot of construction in solar power projects other than the modules. We would focus on that. We will not get into owning solar power plants,” said Suresh Kumar S., CEO-EPC (engineering, procurement and construction), industrial project.