CCCL to get 40% stake in Dubai firm

Chennai: The Chennai-based Consolidated Construction Consortium Ltd is set to take a 40 per cent stake in Innotech Construction LLC of Dubai.

CCCL has informed the stock exchange that it has entered into a ‘strategic and investment partnership’ with Innotech Construction which will help both companies grow in the civil engineering contract business in the United Arab Emirates (UAE).

CCCL is a construction company with operations in industrial, commercial, residential and infrastructure projects.

Its annual turnover is over Rs 1,500 crore.

Company officials said that this formalises the relations between CCCL and Innotech, which over the last two years have been in the form of a management contract. CCCL did the construction on a contract basis till now.

But with growing involvement between the two partners, CCCL has decided to invest in the operations in the UAE.

CCCL’s technical expertise has helped the partners gain the licence for constructing ‘unlimited height towers’ in the emirate of Ajman and is soon to acquire a similar licence in Dubai. As of now, Innotech had the licence for constructing only single-storeyed structures.

Officials said there is a huge business potential in the UAE, which CCCL and Innotech together would be able to exploit better.

The details and value of the agreement are being worked.

Innotech has an order backlog of over Rs 50 crore (AED 50 million) and enquiries of about Rs 250 crore (AED 250 million).