Lanco Infratech

Lanco Infratech Limited

Type	Public company
Industry	Energy Infrastructure
Founded	1986
Headquarters	New Delhi, India
Number of locations	Global
Key people	Lagadapati Madhusudhan Lagadapati Rajagopal
Products	Natural gas Real estate electricity generation distribution
Revenue	₹9681 crore (US$1.4 billion)(2015)[1]
Number of employees	Over 6500
Website	www.lancogroup.com

Lanco Infratech (Lagadapati Amarappa Naidu and Company Infratech) is a large Indian business conglomerate involved in construction, power, real estate, and several other segments. In 2010, the group of companies was listed among the fastest growing in the world.^[2] In 2011, the group became the largest private power provider in India. Lanco was one of the first Independent Power Producers (IPP) in India.

History

Lanco was founded by a businessman Lagadapati Amarappa Naidu and his son Lagadapati Rajagopal, who was a member of 15th Lok Sabha representing Vijayawada. While Rajagopal remains inactive, his brother Lagadapati Madhusudan Rao is the executive chairman. Another brother Sridhar Lagadapati, was involved with the company in the early years, but now heads the related entertainment business, Larsco.

Lanco grew at a tremendous pace since the early 1991s. Initial growth was driven by large contracts primarily in construction. Later, other infrastructure areas such as power generation, transportation etc. were also added.

Business

• Engineering, Procurement & Construction (EPC)
• Power - Thermal, Hydro, Wind, Solar
• Natural Resources - Mines
• Infrastructure

Major Operational Power plants

• 2 X 300 MW Lanco Amarkantak Power Limited - Two units of 300 MW are already commissioned.
• 2 X 600 MW Lanco Anpara Power Limited - One unit of 600 MW commissioned in December 2011 and second unit of 600 MW was commissioned in January 2012. The power plant is located in Sonebhadra district of Uttar Pradesh.
• 2 X 600 MW Udupi Power Corp. Limited - Commissioned in 2012, the power plant is located in Udupi district, Karnataka. On August 14, 2014, Adani Power Ltd, controlled by billionaire entrepreneur Gautam Adani, has acquired the plant in a Rs. 6,000 crore deal.^[3]
• 1466 MW Lanco Kondapalli Power Limited - Gas based Combined Cycle Power Plant located at Kondapalli Industrial Development Area near Vijayawada in Andhra Pradesh.
• 120 MW Lanco Tanjore Power Company Ltd - Gas based Combined Cycle Power Plant located at Karuppur village of Tanjore district, situated around 260 km from Chennai, Tamil Nadu.
• 20 MW Hydro Power Plants

At this stage it has another 7000+ MW under construction and 10,000+ MW under Development and is heading towards successful completion of its Vision of 15,000+ MW by 2015. Major Power Projects under construction are:

• 2 X 660 MW extension of Lanco Amarkantak Power Limited
• 2 X 660 MW Lanco Vidarbha Thermal Power Limited
• 2 X 660 MW Lanco Babandh Power Limited
• 4 X 125 MW Lanco Teesta Hydro Power Pvt Ltd
• 2 X 76 MW Lanco Mandakini Hydro Energy Pvt Ltd

Debt Restructuring

In June 2013, Lanco had won a contract for setting up two 300 MW power plants in Gujarat. However, the contract was cancelled in October 2013, when the company failed to put up the 10% guarantee required in the contract. ^[4]

By July 2013, the company had filed for debt restructuring, citing a business slowdown.^[5] In September, it was revealed that the company had cut down its employees by nearly half.^[6] In December 2006, the company won a large contract citing a collaboration with Singapore firm Globeleq.^[7][8]

In 2007, after winning the bid for the 1000 MW Anpara-C power plant, Lanco requested that the power output be re-negotiated. Some competing firms protested^[9] since the re-negotiation process made the initial bidding meaningless. However, Lanco managed to retain the Anpara project.^[10] Repeatedly tarnished by charges of corrupt practices^{[7][9][11][12][13][14]} the company ran into financial trouble and has filed for Corporate Debt restructuring^[15] in July 2013.^{[16] [16][17]}

References