Patel Engineering Ltd (PENG.BO) has tied up with privately-held Turkish firm Limak to jointly bid for road projects in India, a move that will enable it to bid for large projects.
"We are looking at large road projects, about `30to 40 billion, and have tied up with a Turkish company, Limak. We will require a large balance sheet to begin with, and most companies in India are also tying up with other companies," Rupen Patel, managing director. We have to bid for larger packages because... margins will be better."
The construction and engineering firm is in talks with a couple of private equity firms to offload stake in its power unit.
OUTLOOK
Patel Engineering expects its order book to grow "substantially" by at least 50 percent by end FY11, which would mainly come in from its engineering and construction operations.
The company is the lowest bidder for projects worth `31 billion, mainly from central and government firms.
Patel Engineering expects to tie up funds for its proposed Tamil Nadu power project by March 2011, and by the first quarter of next year for its Arunachal Pradesh hydro power project.
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