NTPC, Airtel, L&T top study on infrastructure companies in 2007

KOLKATA: NTPC, Larsen & Toubro (L&T) and Bharti Airtel are the three leading infrastructure companies in 2007 in terms of total income, according to a research carried out by Dun & Bradstreet, the world's leading provider of business information.

It included Reliance Communications, Reliance Energy, Mahanagar Telephone Nigam, Tata Power Company, Tata Teleservices, Idea Cellular and Videsh Sanchar Nigam among the top 10 domestic infrastructure companies in 2007.

D&B India has just released its inaugural edition of India's leading infrastructure companies. The publication selected 187 companies with a minimum turnover of Rs 100 crore. However, it excluded companies that have not responded with critical information or declined to participate in the study.

It found private sector dominance in construction and telecom sectors with sizeable revenue contribution, while the central and state undertakings largely control the power sector. D&B selected 121 construction companies, 52 power utilities and 14 telecom services providers. In terms of the geographical spread, the western and northern regions dominate with 37% and 30% of total companies respectively.

"The western region is largely dominated by construction and power companies, whereas the southern and eastern regions accommodate most of the telecom companies. The northern region has a mix of companies catering to all three segments," the report noted.

D&B also expects infrastructure to be the next big theme that would drive policy makers and investors to make India globally competitive. "The sector will remain on a high growth trajectory on the strengths of a large domestic market, huge investment potential, conducive government policies and growing private participation," it said.

However, it said the construction sector was adversely impacted by delays in approval from authorities, procurement of technology and lack of availability of labour. On the other hand, the rural market offers immense opportunity to the telecom sector with nearly 22% of the overall telephony subscriber base consisting of rural subscribers. The power utilities have aggressive capacity addition plans that aim to double existing capacity to meet the power generation target set in the 11th Five-Year Plan.