ITT Corporation (ITT) has been awarded a contract to provide two water pumping stations for Sardar Sarovar Narmada Nigam Limited’s Kutch Branch Canal Lift Irrigation Project in Gujarat, India. Combined capacity is estimated to be 196 million liters daily.

ITT will execute this project in partnership with Megha Engineering & Infrastructures Limited.

ITT’s Flygt vertical column discharge pump sets will make up the backbone of the system and will be the largest pumps of their kind to be constructed and operated in India.

ITT plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses industry leading brands in the Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end-markets with a broad geographic footprint.

We are particularly bullish about these two segments: a) water equipment (primarily pumps), which should benefit from the replacement and upgrade of ageing networks in developed markets and the build-out of infrastructure in emerging markets, and b) ITT’s Defense business, with the bulk of sales derived from electronic and network-centric warfare.

The Defense Electronics & Services business segment is subject to a number of risks, including defense budgets and government contract requirements and regulations, which could have an adverse impact on the results of its operations.

The Fluid Technology and Motion & Flow Control business segments are subject to certain industry risks, which could have an adverse impact on the results of its operations.

Adverse macroeconomic and business conditions, particularly in the local economies of the countries or regions where the company operates, may negatively affect its revenues, profitability and operations.

The company’s Defense Electronics and Services segment develops, manufactures, and supports high-technology electronic systems and components for worldwide defense and commercial markets, and provides communications systems and engineering and applied research. Principal manufacturing facilities are located in the United Kingdom and United States of America.

ITT Corporation, with 2009 revenues of $10.9 billion, is a global multi-industry leader in high-technology engineering and manufacturing. It is engaged in the design, manufacture, and sale of a wide-range of engineered products and the provision of services. Lockheed Martin Corporation (LMT) and Raytheon Company (RTN) are major competitors.

We currently have a Neutral recommendation on ITT Corporation.

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