SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

November 02, 2009 09:55 ET

India Globalization Capital Awarded Contract to Supply Rock Aggregate to Indian Railways

Expects Order for Rail Giant to Generate $1 Million in Revenue

BETHESDA, MD--(Marketwire - November 2, 2009) - India Globalization Capital, Inc. (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India, today announced it was awarded a contract to supply 200,000 metric tons (mT) of rock aggregate to Indian Railways. The order is expected to be filled this fiscal year and is expected to generate approximately $1 million in revenue.

Indian Railways is the state-owned railway company of India, which owns and operates most of the country's rail transport. It boasts one of the largest and busiest rail networks in the world, transporting more than 18 million passengers and more than two millions tons of freight each day.

Ram Mukunda, chief executive officer of India Globalization Capital, Inc., stated: "This contract is a significant achievement for us. The Indian Railways is one of the largest consumers of rock aggregate in India, and we anticipate that they will become a key long-term strategic customer of ours as we demonstrate our capacity to fill their requirements."

IGC Materials Private Ltd., a wholly owned subsidiary of India Globalization, produces crushed rock for construction projects in India, where developing infrastructure remains vital to maintaining the country's economic growth. According to the Freedonia Group, India was the world's fourth largest aggregate market in 2006, with annual demand of up to 1.1 billion metric tons. Sales have risen an average of 7.7% annually over the past 10 years compared to a global average of approximately 4.4%, with roughly 40% of the demand being for crushed stone. The quarry market is fragmented, with much of India's aggregate supply coming from small local quarries.

About India Globalization Capital

India Globalization Capital is an infrastructure and materials company operating in India, and builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China. The Company has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi, and Bangalore. For more information about India Globalization Capital, please visit www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors that could cause actual results to differ, relate to: (i) ability of the parties to successfully execute on contracts and business plans, (ii) ability to raise capital and the structure of such capital including the exercise of warrants, and (iii) exchange rate changes between the U.S. dollar and the Indian Rupee. We undertake 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 the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

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