Infrastructure Management and Property Development Ventures for Madhucon
Hyderabad-based Madhucon has big plans for the future. Apart from plans to develop 1,000 km of toll roads in two years, where the company will manage as well build the roads, Madhucon will enter the lucrative market of developing and maintaining existing highways.
The company has recently secured four toll highway projects, under the build-operate-transfer model, covering a total of 330 kms and worth around 18 billion rupees. The difference now is that in addition to the revenue for road construction, they will also get a steady revenue from developing and operating them for 20-25 years.
The company expects an IRR of between 12.5 to 13.5 percent in the toll projects with an industry standard of only 12 percent.
The company has now drawn up plans for real estate projects as part of its diversification into property development. Its focus is on Hyderabad where the real estate market is growing with the international airport, better infrastructure and a booming software market. Madhucon will cut its teeth on a project involving a three star hotel, a shopping mall and residential apartment blocks in the suburbs. The company has also formed a joint-partnership with Malaysia-based developer WCT Land Bhd., with whom it will bid for the development of satellite townships.
By INRnews Correspondent
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