Fast Growth Propels India to the Top of the World’s Hot Markets
Large Indian contractors are reporting annual sales rising over 30%, and margins are fatter than those in the West. "Less than 6 to 7% [after tax] may not be acceptable in future," says K.V. Rangaswami, senior vice president of the main construction unit of In- dias largest contractor, Larsen & Toubro Ltd., Chennai.
With growth of the $75-billion-a-year industry based on modest state investment, the future looks bright. Government indications last year of raising infrastructure spending to 4% of gross national product "shows there is a recognition that we have to grow to 6 to 7%," says Ajit Gulabchand, chairman and managing director of Hindustan Construction Co. Ltd., Mumbai.