India Globalization Capital's Mining & Materials Segment Completes Preparation Needed to Export Iron
Ore
BETHESDA, Md., May 22 /PRNewswire-AsiaNet/ --
Begins Foray into Supply Contracts with Chinese Companies
As previously announced in a press release dated May 7th, 2009, India Globalization Capital (AMEX: IGC -
News), a company competing in the rapidly growing infrastructure industry in India, announced that its first
shipping hub is ready to export iron ore from mines in India to customers worldwide, and that it has initiated
supply contracts with Chinese Companies.
As outlined in the release, India Globalization Capital has expanded its business model from heavy
construction and road building to include a Mining and Materials business segment. Our initial focus is to
supply rock aggregate and iron ore to the rapidly growing infrastructure industry in India and abroad.
We have created our own shipping hub at one of India's primary ports, the Krishnapatnam Port, on the east
coast of India. The hub will serve as our doorway to a global export business. The hub streamlines our
production and distribution capabilities and allows us to aggregate ore from smaller suppliers before shipping.
We have also entered into agreements with mines in India for the supply of iron ore. We have set up banking
facilities with a private Indian bank for working capital and credit facilities, and we have initially entered into
supply contracts with two Chinese companies. According to the Mineral Information Institute about 98% of iron
ore is used to make steel, a critical part of infrastructure projects worldwide.
"Today's announcement represents six months of planning and preparation associated with expanding our
business plan from building roads, bridges, and highways to supplying materials including rock aggregate and
iron ore. The addition of the export hub and its associated operations will supplement our mining and materials
business and is expected to be substantively accretive to our revenue and earnings over the short and long-
term," said Ram Mukunda, Chief Executive Officer of India Globalization Capital.
Laura Wood, a Senior Research Manager for Research and Markets, a leading international market
research house, in a published Reuters article dated February 27th, 2009, said, "A key element showcasing
India's economic rise is the considerable changes in the country's building and construction industry. The
building materials sector in India is a key constituent of the country's construction industry. Driven by recent
growth in the infrastructure and the construction industry, the building material sector has recorded
considerable growth over the last few years. Furthermore, India's economic performance and rapid increase in
per capita income signal excellent growth prospects for this sector."
About IGC
India Globalization Capital is a construction and materials company operating in India, which builds roads,
bridges and highways, and provides materials to the infrastructure industry in India.
The company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi and Bangalore. Copies of the Form
S-3 and India Globalization Capital's other filings with the SEC containing information about India Globalization
Capital, our Indian operations and other relevant documents, are available at no charge at the SEC's Internet
site (http://www.sec.gov). For more information about India Globalization Capital, visit the company's web site
Forward-Looking Statements:
This press release may contain forward-looking statements. These statements reflect management's
current views and are subject to risks and uncertainties that could cause actual results to differ materially from
those projected, expressed or implied in these statements. Factors, which could cause actual results to differ,
relate to: (i) the ability of the parties to successfully execute on the contracts and business plan, (ii) our ability
to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes
in the exchange rate between the US dollar and the Indian Rupee. We undertake no obligation to publicly
update any forward-looking statements, whether as a result of new information, future events or otherwise.
Other factors and risks that could cause or contribute to actual results differing materially from such forward
looking statements have been discussed in greater detail in the company's definitive proxy statement and
supplement filed with the SEC and incorporated by reference into the Form S-3.
SOURCE: India Globalization Capital, Inc.
CONTACT: John Selvaraj of India Globalization Capital, Inc.,
+1-301-983-0998,
info@indiaglobalcap.com
(IGC)
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