Bethesda, Oct. 9, 2014 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC), announces that it has received land in Nagpur, India, valued at over $4 Million in exchange for IGC's 22% minority ownership in Sricon.
IGC's heavy equipment rental business in India and the trading business in Hong Kong have a large potential for expansion. We plan to use this land in Nagpur as collateral for bank lines that can provide increased liquidity for these businesses.
We currently rent heavy equipment like bulldozers, tractors, and other machinery to the agricultural and construction industries in India. These industries, and as a consequence this line of business, are expected to grow rapidly as initiatives are put in place by the recently elected pro-business government. We are currently positioned in the state of Kerala and with adequate financing we can expand to neighboring states.
Ram Mukunda, CEO of IGC said "while the investment in Sricon is on our books, the exchange of our minority ownership for property that can be used as collateral is of greater immediate benefit to us as it is a source of non-dilutive capital that can drive growth and profitability." The registration formalities for the land are expected to be completed by the end of this year. IGC continues to make progress in multiple fronts including heavy equipment rental business in India, commodity trading, vertical indoor farming and legal cannabis.
Ram Mukunda added, "Our immediate aim is to drive profitability and this exchange of assets will help us do that."
About IGC:
Based in Bethesda, Maryland, India Globalization Capital, Inc. has articulated a strategy to become a company with diverse operating businesses including medical marijuana, specialty pharmaceuticals and solar energy. We are currently engaged in trading, vertical farming and rental of heavy equipment in India, China and the United States.
Forward-looking Statements:
Some of the statements contained in this press release that are not historical facts constitute forward- looking statements under the federal securities laws. Forward-looking statements can be identified by the use of the words "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "potential," "proposed" or the negative of those terms. These statements are not a guarantee of future developments and are subject to risks, uncertainties and other factors, some of which are beyond IGC's control and are difficult to predict. Consequently, actual results may differ materially from information contained in the forward-looking statements as a result of future changes or developments in our business, our acquisition and diversification strategy, our competitive environment, infrastructure demands, iron ore availability and governmental, regulatory, political, economic, legal and social conditions in, among other places, China and India. Except as required by federal securities laws, IGC undertakes 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 IGC's Form 10-K for fiscal year ended March 31, 2014, and in subsequent reports filed with the U.S. Securities and Exchange Commission.