Coromandel Engg firms up 3 projects in Chennai, to enter Karnataka

CHENNAI: Coromandel Engineering (CECL), part of the $3 billion Murugappa Group, has firmed up residential and commercial projects in Chennai even as it is finalising its foray into Karnataka. CECL has lined up three projects in the metro, which includes a 30-apartment in ABM Avenue in the posh Boat Club area in the city.

The other two residential projects would come up in Pallikarnai and Kotturpuram, Diversified Business Group of Murugappa, CEO K E Ranganathan said. "We are aiming to touch a revenue of Rs 500 crore in the next 3-4 years��� through sharper focus on ���contract��� and ���property development��� segments," he said.

From a construction contracting player, CECL is keen on stepping up its presence in the realty segment by launching residential and commercial projects. It had completed over 50 projects in the residential segment, spanning an area of over 2 million sq ft.

After it had completed and delivered the 80-apartment project in Coimbatore, CECL is gearing up to announce a 1000-plus apartment complex in the textile city in the next three months. The 1-million sq ft project would entail an investment of Rs 200 crore. In Karnataka, it has identified Mysore where it is working on a Rs 100-crore joint development project on 10-acres.

Mr Ranganathan said by March 2010, CECL would touch a turnover of Rs 130 crore, with commercial business accounting for 70%. All the housing projects would be branded ���Coral��� for which a new promotional campaign is in the offing. The Madras stock exchange listed entity is planning to list its stock in Mumbai bourse.

It clocked a turnover of Rs 100 crore for the year ended March 31, 2009, up by 47% from the previous year. It has an order book of Rs 60 crore in the commercial segment for projects that are expected to be completed within four months.

Started in the year 1947, CECL has built projects across the country and overseas in Mauritius. Betting on strong growth, CECL is keen on doubling the turnover by 2011. Its list of clients include Madras Cements, India Cements, Silkroad Sugars, NLC, Siemens, Ashok Leyland, Ford India, LMW, Visteon, Alliance Tires and Tata Ryerson.

Earlier this year, it completed a Rs 70-crore project for Silkroad Sugars. CECL has specialised in constructing plants for various sectors like cement, power and chemicals. It has also done several hotel projects across south ��� Chola Sheraton and Trident (Chennai), Windsor Manor, Ashoka and Holiday Inn (Bangalore), Mr Ranganathan said.
With 200-plus qualified engineers on its rolls, CECL has started reviving the construction business since 2006, says CECL senior VP Kumar.