Bethesda, Oct. 23, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC) announces that it is expanding its heavy equipment rental business from Kerala, India to neighboring state of Karnataka, India.
IGC currently rents out heavy equipment such as bulldozers, pneumatic rollers, trailers, generators, and Bobcats; with trained operators to the construction and agricultural industry in India. We are expanding our model geographically in anticipation of higher overall growth in infrastructure build out under the recent newly elected government.
According to the Times of India on September 16, 2014, citing the consultancy firm Price Waterhouse Coopers, "India's share of the Asia-Pacific infrastructure market is expected to continue to grow, reaching about 12.5 per cent or $6.6 trillion by 2025."
Ram Mukunda, IGC'S CEO, states: "We currently operate in Kerala, which lies along the Arabian Sea coast and is affected by the monsoons that virtually shuts down our operations in this region for three to four months a year. The neighboring state of Karnataka, on the other hand, enjoys 12 months of favorable weather. The recently announced acquisition of land from the settlement with Sricon allows us to obtain bank lines to support the expansion. Once we are established in Karnataka, we expect to expand the model to other states."
IGC has created a very attractive rental model that can be replicated and positioned rapidly for the anticipated growth in infrastructure. Our program allows construction contractors to have access to our equipment, which is necessary to bid on contracts. It curtails contractors' need for massive investment in equipment, maintenance and training of operators. We are a fairly early entrant with this model in this highly fragmented business with competition coming mostly from individuals renting smaller pieces of equipment. The model allows us to rent equipment with our operators to contractors retaining the ability to take our equipment back for non-payment, or if the contractor runs into problems with the contracting agency.
"In addition to the expansion in India, we also continue to make great progress in the legal Cannabis business and vertical farming and expect that to be a driver of growth next year. " asserted Mukunda.
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including medical marijuana, specialty pharmaceuticals and solar energy. We are currently engaged in trading, vertical farming and rental of heavy equipment in India, China and the United States.
Forward-looking Statements:
Some of the statements contained in this press release that are not historical facts constitute forward- looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our acquisition and diversification strategy, our competitive environment, infrastructure demands, iron ore availability and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India. Except as required by federal securities laws, IGC undertakes 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 IGC's Form 10-K for fiscal year ended March 31, 2014, and in subsequent reports filed with the U.S. Securities and Exchange Commission.