The construction sector has embarked on a secular growth path led by the boom in infrastructure activity across sub-segments(roads,ports,power,airports,railways,urban planning etc). We estimate investments of Rs 12,66,000 crore to flow into the Indian Infrastructure sector over 2008-12,which would translate into construction orders worth Rs 7,08,600 crore. Also, we believe operating margins would remain robust in the wake of escalation clauses & higher margins inherent in fixed price contracts.

Jaiprakash Associates (JAL): With proven capabilities in hydel power, construction & an order backlog of Rs 6700 crore, the company is well positioned to capitalise on the rich pipeline of hydel power projects.

Hindustan Construction Company (HCC) : With its proven capabilities across a wide spectrum the company has a diversified order backlog of Rs 7370 crore.

This articled report as on july 12th 2007 .

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