Interarch Building Products Ltd. expects to bag orders worth up to Rs 300 crore from its recently announced strategic partnership with Jindal Steel and Power to jointly construct steel structures, the company's Founder and Managing Director Arvind Nanda, told NDTV Profit on Friday.
Interarch Building Products and JSPL in December announced a strategic partnership “to redefine India's urban infrastructure by promoting the use of steel as the preferred material for multi-story buildings, data centres, and heavy structures."
Under the agreement, Interarch will make use of its design, engineering, manufacturing, and project management capabilities, while JSPL will use its state-of-the-art manufacturing facilities for the heavier structures to make high-performance steel solutions.
Nanda said it is expected to bring revenues and orders to both companies.
“I think we should get Rs 200 crore to Rs 300 crore of business because we are together,” he said.
The order inflow expected because of this partnership will be over 250 crore, Nanda mentioned.
“We are expecting that order flow to Interarch should be in excess of Rs 200-250 crore in the coming 12-to-18 months because of our agreement with JSPL,” he said.
The Interarch founder revealed that the partnership is “not a totally new working arrangement.”
“It's something that we have done in the past; JSPL has done in the past. Now together I think we will get more synergy,” he said.
Nanda clarified that the Rs 250 crore order book that he mentioned was only the one that Interarch will get due to its partnership with JSPL.
“Our last declared order book at the end of October, when we had our quarterly results, was Rs 1300 crore,” he said.
“Our order intake is very good, and as we increase capacity, it will go up in the coming months,” the top executive added.
Nanda revealed that Interarch Building Products had already started working with Jindal Steel a few months ago, even though the partnership was announced in December. He mentioned that the companies have a “couple of very good projects” with them.
“One is a microchip semiconductor assembly plant, and the other one is a semiconductor assembly plant,” he said.
Shares of Interarch Building Products Ltd. dipped 1.9% during Friday's trade to touch Rs 1,784 apiece on the NSE, while the benchmark Nifty 50 was down 0.6% at 24,004.75.
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