Totem Infra To Expand Its Portfolio With Real Estate

Hyderabad-based Totem Infrastructure Limited is looking to expand its portfolio by adding real estate to its group of operations. It plans to build Rs 200-crore multi-use apartments in about 10 acre close to the outer ring road here. The company presently is executing infrastructure works relating to irrigation, power, railways and roads.

Also, the company is looking to change its business model from cash contracts to long-term revenue channels like build, operate and transfer, Totem director and chief operating officer Abhijit Roy told the media.

In February the company had, raised $10 million (about Rs 40 crore) from Singapore-based private equity fund Aquarius Investment Advisors. It plans to utilize this money for growth plans, expanding to new locations and operations.

Right now, Totem has offices in Hyderabad, Delhi and Indore and new offices are being planned in Kolkata and Nagpur shortly. “We want real estate to account for at least 25 % of our portfolio,” Roy said.

Totem’s current order book stands at Rs 1,000 crore to be executed in two-and-a-half years. Most of the existing projects are cash contracts and hence the required investments are mobilized through advances and other means. To fund these, the company has also formed a consortium of banks with Union Bank of India as the lead bank. The company expects the order book to increase to Rs 2,500 crore for this financial year and in three years, it plans to go public to raise funds for various projects.

Among the various projects, it is building about roads in Maharashtra, Uttar Pradesh and Karnataka on a BOT (build, operate, transfer) basis. It established its presence in central India recently by bagging the order for the III phase of the Omkareshwar Project Canal System from Sadbhav Engineering Limited for Rs 310 crore.

Totem is also executing an NTPC power project in Nagpur and constructing minor bridges, culverts and others for an internal railway line for expansion of the Bhilai power project for RITES, a government of India enterprise.

The Rs 150-crore company is now looking to forge a public-private partnership in a state project in Rajasthan and recently submitted a request for quotation (RFQ) in this regard.

One Comment

  1. Posted July 9, 2008 at 3:32 am | Permalink

    The first golden rule of investing is to diversify your portfolio. Even though high paying categories are always lucrative, the risk factors involved are even higher. Direct commodity investment is advisable only for market savvy investors, who keep a close tab on the market. Stocks, bonds etc should be a part of your saving instruments and all of it. Commodity oriented mutual funds and other such indirect investments though are less risky, they are not exactly what we term as ‘user friendly’.So what else is there?For many, real estate investment is an essential part of a well-rounded portfolio. Buying and selling real property, or even long-term owning, has proven to be one of the most profitable and least risky investments available.When it comes to investing in real estates, you will find a wide array of options like property oriented mutual funds, REIT (Real Estate Investment Trusts), and many other types of mortgage backed securities.However, one should keep in mind that they are not “zero risk” affairs – there’s no such thing in investing! Prices fluctuate, relative to other goods and investment channels. But if you educate yourself with basic market laws and have sufficient cash and other liquid assets to be able to hold until the time to sell is right, you’ll never have any reason to regret in making real estate investments a major portion of your portfolio.For more view-

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