HINDUSTAN CONSTRUCTION CO Share price

The Company founded in 1926 by the pioneer industrialistlate Shri Walchand Hirachand was the first wholly Indiancompany to undertake and successfully execute large civilengineering Projects in India. The Certificate ofincorporation dated January 27 1926 was issued to theCompany by the Registrar of Companies Maharashtra and theCompany was converted to a Public Limited Company onDecember 15 1939. The Company is a subsidiary of WalchandHindustan Ltd. (erstwhile Premier Construction Ltd.) whichholds about 64.5% of its equity.The Company is engaged in various activities in theconstruction field and its forte lies primarily in heavycivil engineering areas specialty in the power sector andbridges. Since its inception it has completed 38 powerprojects 13 barrages 22 dams 10 earthworks/embankments31 piling works 108 environmental engineering works 13aqueducts 54 railway bridges 118 road bridges 14 marineworks 20 industrial structures 30 tunnels and 5 generalbuildings of total value around Rs.30000 crores.Some of the major projects which the Company has executed independently include the aqueduct across the river Gomti UP which is a pre-stressed concrete aqueduct completed in January 1978 and the Lower Periyar Hydel project in Kerala (ongoing). Other major projects include (figures in brackets give the extent of involvement of the Company in physical terms) the Farakka Barrage in West Bengal which is 2253 meters long completed in July 1970 (82%); the Idduki Dam Kerala which is a 170 metres high double asymmetrical archdam completed in May 1976 (99%); and the Metro rail atCalcutta (39%) the first metro project in the country. The Company has over the years built up a large inventoryat equipment to enable it to execute large and complexprojects within the specified time frame. It possesses alarge complement at of earthmoving equipment hydraulicdrills concrete manufacturing and other diverse materialhandling equipment. It also specialises in severalconstruction techniques such as units for industrialstructures and jetties slip forming for tall structuresand underground shafts bridge builders for segmentedconstruction of long span bridges three dimensionalcomputer aided design technology for bridges dredgers forspeedy sinking of monoliths and various others.The company has formed a partnership venture viz. NathpaJhakri Joint Venture (NJJV) with Impregilo SPA of Italy forexecution of Head Race Tunnel and Surge shaft of the WorldBank-aided Nathpa Jhakri Hydroelectric Project in HimachalPradesh. The Company has a 40% stake in the partnershipventure while Impregilo has the balance 50%. this projectis being set up by the Government of India and Governmentof Himachal Pradesh for the generation of 1500 MW ofHydroelectric power at an estimated cost of Rs.6000crores. NJJV has been awarded a part of the project ofvalue Rs.608 crores at time of award. The present value ofthe project (inclusive of escalation) is Rs.718 crores. Theproject is expected to be completed by the year 1999-2000.The Company''s share of the total billing for this projectupto June 30 1995 aggregated to Rs.3721 lacs.GANGA CONSTRUCTION LIMITED (100% subsidiary)Ganga Construction Limited purchased the development rightsof the Company''s property at Hariyali village Vikhroli (W)measuring 10396.08 square metres for Rs.33557600 in1989. Ganga Construction has part Rs.3355760 to date andthe balance Rs.30201840 remains outstanding on which theCompany is proposing to charge interest @ 18% pa. witheffect from July 1 19S5 subject to the approval of theBoard of the Company.Ganga Construction Limited has not defaulted in the paymentof dues to financial institutions banks debentureholdersand holders of fixed deposits. There is no pendinglitigation/dispute pertaining to matters likely to affectthe operations/finances of Ganga Construction Limited as onSeptember 14 1995. The turnover of Ganga Construction increased from Rs.14.41lacs during 1992-93 to Rs.999.44 lacs during 1993-94 anddecreased to Rs.149.84 lacs in 1994-95 due to theaccounting policy followed for income recognition(recognised on the basis of percentage completion onproperty sold). Ucchar Investments LimitedUcchar Investments Limited is closely held investmentcompany. Ucchar Investments Limited has not defaulted in the paymentof dues to financial institutions banks debentureholdersand holders of fixed deposits. There is no pendinglitigation/dispute pertaining to matters likely to affectthe operations/finances of Ucchar Investments Limited as onSeptember 14 1995.