Speed-breaker: Infra sector may see a slowdown
The infrastructure sector is likely to grow at a slower rate than expected amid concerns of a slowdown in the Indian economy and global debt worries, said Ramesh Chandak, managing director and CEO, KEC International. Sandeep Singh & Shrenik Avlani reports.business Updated: Jul 31, 2011 22:40 IST
The infrastructure sector is likely to grow at a slower rate than expected amid concerns of a slowdown in the Indian economy and global debt worries, said Ramesh Chandak, managing director and CEO, KEC International.
"If you ask me, is the business growing? Yes it is. But is it growing at the expected rate? Then I must say no, it isn't," said Chandak.
KEC, the Rs 2,100-crore RPG Group company, feels that there is a strong potential for growth in emerging economies particularly in Africa.
The company sees a robust two-three years ahead for the infrastructure industries and especially KEC, which has now added water, power, railways and cabling to its transmission-driven business.
"These days you talk about countries in trouble. The first thing a country in trouble does is to increase its spend on infrastructure -roads, power, water, etc. The power sector is growing very fast in the emerging economies, particularly Africa. I see a lot of potential for growth. For the next five years we are in the right business, right company and have the right credentials."
Chandak also stressed on the need to create a pool of skilled workforce for the sector as the industry is facing a crunch on that side. The only long-term solution to this is to improve the salary structure of skilled workers, he said.
First Published: Jul 31, 2011 22:38 IST