 Dubai crisis: Which Indian companies may be affectedPublished on Fri, Nov 27, 2009 at 11:00 | Source : Moneycontrol.com Updated at Mon, Nov 30, 2009 at 15:28 13512 Investors following Nagarjuna Const. Share this News with them.
Let's run a status-check on which companies, especially in the infrastructure sector, are exposed to Dubai and how it may impact their businesses. YD Murthy, Executive VP - Finance of Nagarjuna Construction, said that the company has only one venture in Dubai, a 440-apartment project, and is going slow on it. The company is also doing a Rs 100-crore water pipeline project at Dewa, Dubai. "There is no default payment problem at the Dewa project," Murthy said. "The company's Middle-East exposure is mostly to government-owned agencies," he added. Larsen & Toubro has exposure in multiple segments in Middle East, R Shankar Raman, Executive VP - Finance told CNBC-TV18. "The company has exposure in the hydro-power segment. Our total exposure to the Middle-East over the last two years is to the tune of USD 200 million," he added. The infrastructure player has no exposure to Dubai or real estate exposure in UAE, Luv Chhabra, Director of Corporate Affairs at Punj Lloyd said. "We are doing only oil & gas projects in Abu Dhabi where there are no concerns at all," he said. "40% of our order book comes from West Asia. The crisis has particularly hit the real estate sector in Dubai. No impact is expected in other states like UAE capital, Abu Dhabi." MM Miyajiwala, Executive VP and CFO at Voltas, said the company is executing a Rs 900-crore project in Dubai as part of a joint venture where Voltas has 37% stake. "We are executing the project for Emaar and the client has fully funded the project. Thus, we are not anticipating any delays," he said. "Our order book is primarily from Abu Dhabi and Qatar. Dubai also has not defaulted on any of our payments." Bank of Baroda has some real estate exposure to Dubai accounting to 5-6% of its loan book but CMD MD Mallya there won't be any impact. "Interest on all loans in Dubai have been paid till last due," he said. "Bank of Baroda has 10 branches in the Gulf region. It has small banking exposure, mainly for remittances in the region." Mallya added that the bank also has exposure in Abu Dhabi, Ras-Al-Khaimah and Bahrain. The company said it had not exposure to Dubai real estate. DLF has no exposure to Dubai, it said. The company does not have any direct/indirect investment in Dubai and West Asia, it said. "Any of the Indiabulls Group companies and in particular Indiabulls Real Estate doesn't have any direct or indirect investment in Dubai or Middle East," the group stated in a release. Hiranandani Group The unlisted group is constructing a project in Dubai, 97% of which was already sold and 65% payment had been received, Chairman Niranjan Hiranandani said. "The Dubai market crash won't have any negative impact on the company." Omaxe is likely to exit its two real estate projects in Dubai. "We will soon decide on exiting the Dubai realty projects," Dow Jones quoted Omaxe Chairman Rohtas Goel as saying. HDIL has no exposure to Dubai, it said. Dubai World's investment arm, Istithmar, holds 13% stake in SpiceJet The oil exploration company has deployed six rigs in West Asia.
Here's how the stocks reacted on the indices. Prices are those trading at 14.00, Friday:
Company Price % Chg Aban Offshore 1,215 7.70 HDIL 295.5 6.97 Indiabulls Real Estat 190.7 5.45 Bank of 517 5.44 SpiceJet 44.7 5.40 Nagarjuna Const 153.75 4.86 Omaxe 91.05 4.56 Punj Lloyd 197.05 4.44 DLF 339.1 4.28 Larsen & Toubro 1,562.10 4.20 Unitech 3.05 3.95 162 3.31 Hiranandani Group
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With dark clouds gathering around the global economy once again on concerns that two of Dubai-owned companies may default on their debt obligations, fledgling corporate India, which has begun spreading its wings globally in recent years, is feeling some impact here. India infrastructure companies especially have exposure to the Dubai economy and its once-booming real estate business.
