Lanco Infratech

Lanco Infratech Limited
Public company
Industry Energy
Infrastructure
Founded 1986
Headquarters New Delhi, India
Number of locations
Global
Key people
Lagadapati Madhusudhan
Lagadapati Rajagopal
Products Natural gas
Real estate
electricity generation
distribution
Revenue Increase9681 crore (US$1.4 billion)(2015)[1]
Number of employees
Over 6500
Website www.lancogroup.com

Lanco Infratech (Lagadapati Amarappa Naidu and Company Infratech) is a large Indian business conglomerate involved in construction, power, real estate, and several other segments. In 2010, the group of companies was listed among the fastest growing in the world.[2] In 2011, the group became the largest private power provider in India. Lanco was one of the first Independent Power Producers (IPP) in India.

History

Lanco was founded by a businessman Lagadapati Amarappa Naidu and his son Lagadapati Rajagopal, who was a member of 15th Lok Sabha representing Vijayawada. While Rajagopal remains inactive, his brother Lagadapati Madhusudan Rao is the executive chairman. Another brother Sridhar Lagadapati, was involved with the company in the early years, but now heads the related entertainment business, Larsco.

Lanco grew at a tremendous pace since the early 1991s. Initial growth was driven by large contracts primarily in construction. Later, other infrastructure areas such as power generation, transportation etc. were also added.

Business

Major Operational Power plants

At this stage it has another 7000+ MW under construction and 10,000+ MW under Development and is heading towards successful completion of its Vision of 15,000+ MW by 2015. Major Power Projects under construction are:

Debt Restructuring

In June 2013, Lanco had won a contract for setting up two 300 MW power plants in Gujarat. However, the contract was cancelled in October 2013, when the company failed to put up the 10% guarantee required in the contract. [4]

By July 2013, the company had filed for debt restructuring, citing a business slowdown.[5] In September, it was revealed that the company had cut down its employees by nearly half.[6] In December 2006, the company won a large contract citing a collaboration with Singapore firm Globeleq.[7][8]

In 2007, after winning the bid for the 1000 MW Anpara-C power plant, Lanco requested that the power output be re-negotiated. Some competing firms protested[9] since the re-negotiation process made the initial bidding meaningless. However, Lanco managed to retain the Anpara project.[10] Repeatedly tarnished by charges of corrupt practices[7][9][11][12][13][14] the company ran into financial trouble and has filed for Corporate Debt restructuring[15] in July 2013.[16] [16][17]

References

  1. "Lanco Annual Financial report" (PDF). LancoGroup. 2015-01-01.
  2. "Companies To Watch". Forbes.com. 2010-09-27. Retrieved 2011-03-07.
  3. "Adani To Buy Lanco's Udupi Plant". Bloomberg TV India. 14 August 2014.
  4. R. Yegya Narayanan (Oct 18, 2013). "Failure to provide guarantee: Lanco Infratech loses Rs 3,300-cr contract". The Hindu.
  5. Economic Times (27 Jul 2013). "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India.Ailing infrastructure firm Lanco Infratech, which has a consolidated debt burden of over Rs 46,200 crore, said it has approached the lenders for restructuring the debt of some Rs 7,500 crore at the holding company level.
  6. pti (Sep 3, 2013). "Lanco Group cuts down 4,000 employees due to slowdown". Times of India.
  7. 1 2 "Lanco`s Sasan bid annulled". Business-standard.com. 2007-07-25. Retrieved 2011-03-07.
  8. Lanco blames Globeleq for trouble over Sasan - Livemint
  9. 1 2 "Reliance Power cries foul over Lanco Anpara plans". Financialexpress.com. Oct 6, 2007. Retrieved 2011-03-07.
  10. B Dasarath Reddy (March 30, 2007). "Newsmaker: G Venkatesh Babu : In the midst of controversy". Business Standard.
  11. M. Ramesh (March 27, 2012). "Lanco issue with Ministry of Corporate Affairs". The Hindu.quote: Lanco has misled the Government on the question of ownership of projects and has won several projects using an opaque ownership structure when the rule says that a developer can secure only one project.
  12. Rohit Parihar (March 17, 2012). "Congress Gets Burned by the Sun: Rajasthan govt issue fraud certificates to Cong MP for solar projects". India Today.
  13. "Rs 13k cr scam in national solar plan, claims CSE". Times of India. Feb 2, 2012.Quote: In violation of norms laid down by the government, a single company, Lanco Infratech has allegedly cornered 40% of the contracts bid out for the first phase of the National Solar Mission, garnering 235 mw worth projects with assured revenue of Rs 13,000 crore over the next 25 years.
  14. Lanco seeks additional coal for Anpara C power project in UP - Livemint
  15. "Lanco Infratech to restructure Rs 7,500 crore debt burden". The Times Of India. 2013-07-27.
  16. 1 2 Friedman, Thomas L. (2009-08-06). "Lanco Infratech in insurance scam | Deccan Chronicle | 2009-08-06". Deccan Chronicle. Retrieved 2011-03-07.
  17. "Lanco Insurance scam, CM orders probe". Siasat. 2009-08-28. Retrieved 2011-03-07.
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