India Globalization Capital, Inc.

India Globalization Capital, Inc. CRUSHING THE COMPETITION

With roots firmly planted across Asia, Ram Mukunda, president and CEO is taking this materials and infrastructure company to the next level.

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Crushing the

Competition 2 Spring 2011

SPECIALITY

With roots firmly planted across Asia,

India Globalization Capital, Inc.

is taking the infrastructure and materials industry by storm.

by Rebecca Rodriguez

| INTERNATIONAL

S

ince its inception in 2005, India Globalization Capital, Inc. has positioned itself as one of the few U.S. materials and infrastructure companies serving India and China.

Based in Bethesda, Md., with operations in India, IGC has strategically repositioned its business model during the past year to focus more on its iron ore and rock aggregate materials businesses.

Rising prices and strong demand for exports of iron ore to China bodes well for IGC. The company has contracts in place with Chinese steel mills to provide more than $200 million of iron ore during the next few years.

Much of the rise in prices is driven by China’s rapid economic development. With a $1.55 trillion economy, China imports half of the iron ore that is produced worldwide, said Ram Mukunda, CEO and president.

China’s demand for steel is skyrocketing as it focuses on building out its cities and highway system. As the third largest exporter of iron ore, India is well positioned to serve China’s demand.

Construction Leaders Today 3

COVER AND FIRST SPREAD: The conveyor belts direct crushed rock into piles according to size, type and shape.

THIS PAGE: (TOP)Three types of crushers, jaw, VSI and cone (pictured) are used to crush rock into different sizes, types and shapes, which are then screened and directed to the appropriate conveyor belt. (BOTTOM) Conveyor belt detail.

Photos courtesy of India Globalization Capital, Inc.

“India and China’s infrastructure industries are growing very quickly which means they are in need of a lot of basic materials,” Mukunda said.

IGC currently has two rock aggregate quarries in India and continues to seek teaming agreements with land owners to build out many more rock quarries. India is the third largest rock aggregate market in the world with production forecasted to reach about one billion tons in the next nine years. The market in India for rock aggregate has increased an about eight percent annually over the past 10 years compared to the global average of just over four percent with roughly 40 percent of the demand being for crushed stone.

“Demand for rock aggregate is so strong and construction is so fast that we’re building out rock aggregate quarries in India as quickly as we can,” Mukunda said. “Rock aggregate is used mostly for the building of railways, power plants, dams and roads. The market is fragmented with lots of small players. But IGC’s use of large crushers allows it to control the quality of the rock and puts us ahead of the competition.

“It’s a fragmented market, but the large crushers give us the opportunity to consolidate that market. With India poised to accelerate its infrastructure build-out, the demand for rock aggregate is expected to increase substantially. The government of India recognizes the critical importance of the infrastructure build-out and is offering incentives for the development of quarries, which we are taking full advantage of. We think we are becoming increasingly well positioned to take full advantage of this exceptional opportunity.”

Richard Prins, board member, says IGC's management team, both in the U.S. and India, has done a superior job positioning the company to participate in building the infrastructure in two of the world's fastest growing economies.

"Today, there is no other U.S.-based, publicly traded company with the operations in place to seize this opportunity. We are still relatively small, however," Prins said. "The key going forward is finding the resources and key industry partnerships to fully exploit the opportunities which are so huge and expanding so quickly. This is a big challenge with an even bigger upside if we can execute.”

Because of the incredible demand for iron ore and rock aggregate, as well as IGC’s ability to handle the logistics of acquiring the ore and exporting it to China, there is an opportunity for a high return on investment, said Robert Poole, a member of the management board at Bricoleur Partners, L.P., a hedge fund that is an investor in IGC. “It is important to have relationships in India and to be local,” Poole said, referring to Mukunda's strong connections with mine owners which put him in the unique position of enabling IGC to have a considerable amount of strength in the market. “There are very few people who can do what Ram does. He is working extremely hard to make IGC successful and I see a high return opportunity with this company.” CLT

Mining & Quarrying Exporting Iron Ore to China Highway & Heavy Construction

India Globalization Capital, Inc. NYSE Amex: IGC www.indiaglobalcap.com

PO Box 60642 Potomac, MD 20859 Tel: 301-983-0998