Engineers India Ltd (EIL) Chairman and Managing Director A K Purwaha talks to Priya Kansara Pandya about the new growth opportunities and financial performance outlook. Edited excerpts:
………Then why do you want to diversify into other sectors? How much will those contribute to the company’s financial performance and by when?
As part of strategic initiatives for enhanced growth and to leverage our strong engineering consultancy and EPC capabilities and track record, we intend to selectively diversify where we believe there is high growth potential and we enjoy competitive advantage.
We intend to explore opportunities in sectors like renewable energy, nuclear power, infrastructure, CGD and fertiliser. The Indian infrastructure sector provides attractive opportunities, given the expected $1-trillion investment in the next five years. The new sectors will contribute considerably to the top line and bottom line of the company in the next three-five years. This will be followed by healthy margins. However, our focus will continue to be in the hydrocarbon sector, as that is our area of core competency.
What about competition in these new sectors?
The competition is prevalent across the potential sectors, but there is an immense opportunity. For example, India is going to be a large market for renewable energy, as it is increasingly gaining attention from companies, both in terms of doing business and protecting the environment. The National Solar Mission aims at the generation of 20,000 Mw solar power by 2020. This entails an investment of around $16 billion in the coming years. We will focus on providing professional and value-added services to clients in the diversified areas by leveraging our knowledge bank, skill sets and project management capabilities.
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