SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

June 04, 2012 12:16 ET

India Globalization Capital, Inc. Announces the Creation of a China Advisory Board

BETHESDA, MD--(Marketwire - Jun 4, 2012) - India Globalization Capital, Inc. (NYSE MKT: IGC) (NYSE Amex: IGC), a company competing in the rapidly growing materials and infrastructure industry in India and China, announced today the creation of an advisory board for China. The members will advise the Company's directors and management on business transactions, mergers and acquisitions, corporate governance, including internal controls in China and in general act as a panel of experts. The initial members have extensive experience in Inner Mongolia Autonomous Region, China, where the Company has articulated a strategy of acquiring mines. Inner Mongolia is a vast area in China that has some of the largest deposits of Iron Ore, Copper, Coal, Gold and 90% of the Chinese rare earth minerals.

Ram Mukunda, CEO of IGC, said: "We are pleased to announce the appointment of four individuals with extensive experience in the mining sector in Inner Mongolia. Apart from their diverse experience, the three Senior Advisors have extensive business contacts and all three have reputations of high integrity. They are also major shareholders of IGC."

Mukunda added, "Now that our Chinese shareholders have no IGC Board seats, the Advisory Board will streamline our governance in China. As we reported earlier, contractually IGC has Board control of the Hong Kong holding company and the PRC operating company. The Advisory Board gives our largest Chinese shareholders and their key advisors a voice in ongoing operations and greater access to our board. Our management team expects to draw on their experience in rapidly expanding the platform we now have in Inner Mongolia and to bolster our presence and production capability. Once the current platform is adequately integrated with the appropriate people, processes and reporting, we will enter into a dialogue with other acquisition candidates."

The China Advisory Board comprises of the following individuals:

Senior Advisor: Mr. Hua Zhang is an entrepreneur and business leader in the Chifeng region of Inner Mongolia. He graduated from the Chinese Central Party School where he studied economics and management. He is currently the Chairman and CEO of several companies including a leading real estate development company, chrysanthemum extract development as well as Iron ore mining. In 2001 he was recognized as the Outstanding Young Entrepreneur. Since 2003 he has served as the Vice Director of the Chifeng City Chamber of Commerce. In 2004 he was recognized as the Outstanding Builder of Inner Mongolia. He is very active in Project Hope that helps individuals in Inner Mongolia obtain an education and work skills. Mr. Zhang was the former Chairman and Legal Representative of Ironman and is a major stockholder of IGC.

Senior Advisor: Mr. BenQuan Li has over 30 years of mining experience and is a highly respected entrepreneur in the mining industry of Chifeng. He has operated, owned and invested in Lead, Zinc, and Iron ore mines in Inner Mongolia. He possesses a unique knowledge of the geology of the region having lived and worked in the mining sector for most of his career. He is currently the Chairman of Weng Niu Te County Huayin Mining and a member of the Chinese People's Political Consultative Conference (CPPCC) of Weng Niu Te County. Mr. BenQuan Li is a major stock holder of IGC.

Senior Advisor: Mr. JingYu Mu has over 30 years of mining experience, and is a highly respected entrepreneur in the mining industry of Chifeng in Inner Mongolia. Mr. Li and Mr. Mu have worked together as partners for over 20 years. They are both considered role models for the local industry. From 1978 to 1998, Mr. Mu served as the Manager of Finance for the Weng Niu Te County Dong Zi Cave Lead-Zinc Company. From 1999 to 2010, he served as the General Manager of Weng Niu Te County Huanggutun Mining. From 2011 to present, he serves as the Chairman of Weng Niu Te County Long Xiang Kuang Ye Mining Company. Mr. Mu is a major stock holder of IGC.

Advisor: Mr. Wen Sang has been an attorney for the past 10 years. He currently practices law at the Germany City Law Firm in China. Mr. Wen's experience includes several public listings on the Hong Kong stock exchange and extensive work on Mergers and Acquisitions in China including in the mining sector. He has done due diligence on Iron ore mines in the Inner Mongolia region and has an expertise in both corporate and mining regulations in China. He graduated in 2006 from Wuhan University with a Master in Law.

About IGC:
Based in Bethesda, Maryland, India Globalization Capital (IGC) is a materials and infrastructure company operating in India and China. We currently supply Iron ore to Steel Companies operating in China and rock aggregate to the infrastructure industry in India. For more information about IGC, please visit IGC's Web site at

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 "continue" or the negative of those terms. These forward-looking statements are based on the existing beliefs, assumptions, expectations, estimates, projections and understandings of the management of IGC concerning PRC Ironman with respect to future events at the time these statements are made. 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 competitive environment, infrastructure demands, Iron ore availability and governmental, political, economic, legal and social conditions in China.

Factors that could cause actual results to differ, relate to the (i) ability of IGC to successfully execute on contracts and business plans, (ii) ability to raise capital and the structure of such capital including the exercise of warrants, (iii) exchange rate changes between the U.S. dollar, the Chinese RMB and the Indian rupee, (iv) weather conditions in China and India, (v) uncertainties with respect to the People's Republic of China's legal and regulatory environment, and (vi) ability of the Company to access ports on the coasts of India. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company 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 amended Annual Report on Form 10-K for the year ended March 31, 2011 and Schedule 14A filed on December 9, 2011 with the Securities and Exchange Commission.

Contact Information

  • Contact Information
    Investor Relations Contact:
    Mr. John Selvaraj