New Delhi, India: Efkon India, a subsidiary of European construction company Strabag, will invest more than INR 100 crore in the domestic urban transportation and highways tolling business over the next four to five years, announced Pushkar Kulkarni, chief executive officer of Efkon. According to Kulkarni, while toll system equipment and services make up the bulk of the company’s revenues, logistics management, GIS mapping and vehicle tracking system contribute 10-15 percent.
Efkon, which offers solutions for the transportation market including toll collection systems and services, holds about 50 percent market share in the segment. Besides manufacturing toll system equipment, Efkon also operates two toll plazas on the Bangalore and Vijaywada highways.
According to the company, the INR 250-crore domestic highway tolling equipment market has the potential to grow ten fold over the next five years, while the toll plaza operation and maintenance business could double in the next three to four years, from INR 600 crore at present.
“Since 5-7 percent of the total project cost is of tolling equipment and on operations and maintenance, we see a larger portfolio in the next few years,” Kulkarni said, adding that the company would be looking at operating more toll plazas in the future.
Efkon, whose projected turnover for 2012-13 is about INR 100 crore, is currently executing the INR 50-crore Yamuna Expressway project.
It is pertinent to mention here that there are 1.5-2 lakh city buses in the country and the government has allocated INR 45,000 crore under the city modernisation plan.
“About 10 percent of this would be for technology companies, which presents a huge opportunity for growth,” Kulkarni said, adding that the approximate investment for setting up fare collection and tracking systems on 500 buses for five years would be INR 60-70 crore.
Source: Economic Times