On December 30, 2011 IGC shareholders approved the acquisition of Ironman. Ironman is engaged in the processing and extraction of iron ore from sand and dirt at its beneficiation plant on 2.2 square kilometers of hills in southwest LinXi in the autonomous region of eastern Inner Mongolia.
For more information, please visit Ironman's website at www.hfironman.net .
Ram Mukunda CEO of IGC said, "PRC Ironman has audited revenues of approximately $13.5 million and approximately $5.9 million in net after tax earnings for FYE March 31, 2011 and a good liquid balance sheet. In addition to an immediate impact on earnings, this acquisition will greatly enhance our position in the materials business by creating a rapidly growing, profitable iron ore business for IGC. PRC Ironman refines low-grade ore to high-grade ore, which commands a higher price and margin in the market. Our strategy is to both mine and ship low-grade ore to the refining facilities and through a beneficiation process convert the ore to high-grade ore. Over the next 24 months, we expect to expand this business rapidly through organic growth. Additionally, there are great values in this space which may provide additional opportunities for bolt-on acquisitions. This is the first step towards creating a value added, vertically integrated iron ore business that extends from India into China."
India Globalization Capital, Inc. (NYSE MKT: IGC), an infrastructure and materials company based in India, provides materials to the fast growing infrastructure industry in China and India. The Company was incorporated in 2005 and is based in Bethesda, Maryland with offices in Mauritius, Nagpur, Cochin, Delhi and Bangalore. IGC offers strategic high demand services including : 1) the export of iron ore to China and the resale of iron ore to traders in India; 2) operations and supply of rock aggregate; 3) civil construction of roads and highways; and 4) the construction and maintenance of high temperature cement and steel plants. IGC’s present and past clients include various Indian government organizations and steel mills in China. Including subsidiaries, IGC has approximately 251 employees and contractors worldwide. The Company is focused on building out rock aggregate quarries, expanding relations and export hubs for the export of iron ore to China, and winning construction contracts.
IGC’s subsidiaries include IGC-India Mining & Trading, Private Limited (IGC-IMT) a company located in Chennai engaged in the export of iron ore to China, IGC Materials Private Limited. (IGC-MPL) a company located in Nagpur that operates rock quarries and provides construction material to the industry, Techni Bharathi Limited ("TBL"), a construction company located in Kerala, IGC Logistics, Private Limited (IGC-LPL) a company that provides supply side logistics.
IGC’s goals are to grow organically as well as acquire and grow operating infrastructure businesses located in India.
