SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

October 19, 2009 09:30 ET

Indian Globalization Capital Wins Chinese Iron Ore Contract Valued at $1.8 Million

'Hat-Trick' of Chinese Iron Ore Contracts Reflects Successful Strategic Entry Into Materials Market

BETHESDA, MD--(Marketwire - October 19, 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 an iron ore supply contract worth $1.8 million. The third in a recent series of contracts with Chinese companies, the order totals 40,000 metric tons (mT) of iron ore.

"This third order will ship out of the port in Goa on the west coast of India," said Ram Mukunda, Chief Executive Officer of India Globalization Capital. "We are making rapid progress with our plans to operate out of our second shipping hub on the west coast at Goa. On the east coast of India we operate out of the Krishnapatnam port. We are excited and on plan about creating an ability to ship from both coasts of India as this will open up markets other than China."

Mr. Mukunda continued: "With a hat-trick of Chinese iron ore contracts totaling $6.5 million booked, we believe we are meeting our strategic goals and expect the tactical execution of potential operations within our materials business segment to drive long-term contracts and profitability. We have never been better positioned to take advantage of the growth in the materials marketplace in India and China, and we expect that our materials segment will sustain meaningful contributions to the company's operations and bottom line."

Iron ore's importance cannot be overstated. Iron ore, the main ingredient in steel used for construction, bridges and ships, is the most widely used of all metals, comprising 95% of the metal tonnage produced worldwide. In 2008, the market for iron ore totaled nearly $80 billion; and global use of finished-steel products has increased markedly since 2005, especially in countries with expanding infrastructure, like China, where steel demand has risen by more than 13% in recent years. China is the largest importer of iron ore, importing roughly half of the world's supply annually.

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

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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