Yancharla Rathnakara Nagaraja, Managing Director, Ramky Infrastructure Ltd.
Ramky Infrastructure has reached a milestone in its corporate journey by successfully executing a Restructuring Exit Agreement (REA) with its lenders and repaying ₹3,859 crore debt comprising both term loans and working capital facilities. Its working capital facilities are now classified as regular and standard by the lenders. Since the incorporation of its business in 1994, the Company has completed a wide range of construction and infrastructure projects focusing on Industrial Infrastructure development and EPC projects in the fields of Water, Waste Water Treatment, Roads, Bridges and Urban Infrastructure Development. businessline had a chat with YR Nagaraja, Managing Director, Ramky Infrastructure. Excerpts:
In the current industry scenario, where do you see scope for business growth for infrastructure firms?
There has been significant transaction in many areas of infrastructure in both industrial and solutions segments. The industrial parks policies of different states augur well for the economy as well businesses and we see a lot of opportunities in this segment. The National Highways Authority of India is also rolling out many projects. There is scope in waterways development as well. Urban solutions segment also holds good promise for the infrastructure players like Ramky with focus on common sewerage treatment plans and residential and commercial space development.
What are your plans to ramp up business going forward?
Currently we are strong in both industrial and urban solutions space. We have successfully executed and are operating the Jawaharlal Nehru Pharma city in Parawada in Visakhapatnam (which now comes under Anakapalli district of Andhra Pradesh) and want to showcase it as a model industrial park to attract more business in the segment. In the urban solutions, we are focussing mainly on wastewater treatment, residential and commercial housing projects.
Your company has not been seen much in Engineering, Procurement and Consultancy (EPC) projects. Can you tell the rationale behind it?
As per our perception, EPC contracts are not attractive from a long-term perspective. Even ordinary companies are participating in the bids and quality infrastructure is becoming an issue in general. We did travel on EPC road in some projects but now are consciously focussing on Build, Operate and Transfer (BOT) projects.
What are the specific projects in the pipeline for Ramky under BOT mode industrial parks?
Ramky has already inked a Memorandum of Understanding (MoU) with Maharashtra for a project. We are also in the initial discussions for some key projects in Himachal Pradesh and Karnataka. With our successful experience in Visakhaptnam Pharma city, we can now provide plug and play industrial parks with end-to-end sustainable solutions like water treatment facilities, power supply while catering to the specific requirements of different industries.
What is your order book now? How well are you capitalised to execute projects on the hand?
Our order book stands at ₹8,700 crore. Our debt – equity ratio is at 0.25. We are sufficiently capitalised for the next 3 to 4 years. Discounting future annuities will take care of cash-flow requirements. And project finance could be availed from banks as and when required. We have a double digit CAGR at 17 to 18 per cent for the five years and expect EBITDA to be the similar range over next five years, though we don’t make any forward looking statements for immediate future.
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Published on July 21, 2025