HCC's Swiss subsidiary Steiner to make India foray

Last Updated: Sun, Apr 29, 2012 12:57 hrs

Hindustan Construction Company's (HCC) Swiss subsidiary Steiner AG is likely to make a foray into the Indian market this year.

"Steiner has established itself as the largest building construction company in Switzerland. Now Steiner will also migrate to India during the fiscal," HCC Chairman and Managing Director Ajit Gulabchand said.

In May 2010, HCC made its first international acquisition by taking a controlling stake (66 per cent equity stake) in Switzerland-based building construction company Karl Steiner AG (KSAG).

KSAG specialises in turnkey development of buildings and refurbishments and offers services in all facets of real estate construction.

"The acquisition of Steiner has helped HCC to establish its presence in the Swiss market. We are hopeful that in the next two years, it (Steiner) will be able to establish itselfin the Indian market as well," he said.

KSAG has undertaken several projects, including the headquarters of Nestle, Google, World Economic Forum, Terminal T3 of Geneva airport, and several hotels and residential buildings.

"There is tremendous scope for a company like Steiner to establish its base in India given the huge opportunity of refurbishment of old and heritage structures here. We are waiting for the right project to come our way," said another official, who did not wish to be named.

For the last fiscal (FY12), Steiner registered a revenue of Rs 3,996 crore and a net profit of Rs 15.8 crore. The closing cash balance of the company was around Rs 644 crore. "During the last year, Steiner was able to notch up an order backlog of almost USD 2 billion. When we took over the company two years ago, its order backlog was hardly about USD 500-600 million. We have been able to turn it profitable in the Swiss market," Gulabchand said.

HCC group's turnover last year was Rs 8,157.6 crore of which Steiner AG accounted for nearly half at Rs 3,996 crore.

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