Hyderabad: Ramky Enviro Engineers, Asia’ largest waste management company, is looking at strengthening its overseas business by expanding its footprint in Asia, Middle East and Africa, which currently accounts for one-third of the overall business. It plans to expand its business in China, Philippines, Singapore, UAE, Oman, Jordan, Kuwait and USA, besides foraying into new emerging markets such as Indonesia, Thailand, Malaysia and Taiwan. Ramky plans to double its overseas business from the current level of Rs 500 crore to about Rs 1,000 crore in next 18 months.
The company has recently acquired 50 per cent stake in Nature Environmental Marine Services’ (NEMS’) Marpol (Marine Pollution) management facility in Texas, USA. Ramky becomes the first Indian company to enter into marine pollution management space through this acquisition. The acquisition is expected to generate revenues of Rs 40 crore annually for Ramky.
It has also commenced operations of Al-Batinah Municipal Solid Waste Transportation and Disposal in Sultanate of Oman as part of a seven-year contract. This is expected to contribute revenues of Rs 86 crore annually, totally amounting to Rs 600 crore over the contract period.
Within next five years, the company has set a goal to derive 50 per cent business from the overseas markets by executing projects that had been awarded so far and bidding for new projects.
Ramky has begun construction of an integrated waste management and recycling complex in Yanbu, Saudi Arabia. The build, own and operate facility will be set up at a cost of Rs 225 crore while it is anticipated to generate revenues of Rs 50 crore every year.
Construction has also begun on a material recovery facility in Jebel Ali Free Zone (Jafza) in Dubai. Jafza accounts for 50 per cent of Dubai’s total exports. The 25-year build, own and operate project is being built at an investment of Rs 121 crore through a joint venture.
The company has also started construction of an integrated hazardous and biomedical waste management facility in Abu Dhabi. Ramky plans to invest Rs 63 crore towards the project and it is expected to create revenues of Rs 30 crore every year.
The company has also bagged new projects that include an operation and maintenance contract for hazardous waste treatment centre in Doha (Qatar) and two separate memorandum of understanding (MoU) had been signed for management of hazardous and biomedical waste in Jordan and Bangladesh. It will also take up Carpark and enforcement at National University of Singapore.
Ramky Enviro Engineers MD and CEO M Goutham Reddy told Telangana Today, “We will start exploring opportunities in setting up waste-to-energy plants overseas. We are already catering to waste management needs in certain countries. We can look at generating energy there.”
Ramky’s revenues which were at Rs 1,550 crore last fiscal are expected to touch Rs 1,800 crore this fiscal, registering about 20 per cent growth.
The company’s sales stands at Rs 1,800 crore at present with domestic contributing two-third of it. It plans to make Rs 1,000 crore investments in India in the next two years. Of the Rs 3,500 crore sales it plans to make in two years, India will contribute R 2,000 crore while the rest will come from overseas operations.