The Hindu Business Line : Kirloskar bidding for global EPC projects

Kirloskar Brothers Ltd has said that exports will constitute almost 30 per cent of its revenues in the next five to six years. It is in the process of transition from being only a pump manufacturer to that of a major EPC (Engineering, Procurement & Construction) contractor for infrastructural projects.

The Chairman and Managing Director, Mr Sanjay Kirloskar, told presspersons here that the company has bagged a number of projects in EPC and is now in the process of expanding it by bidding for such contracts in overseas projects.

"We already have the expertise required and while we have till now kept our role limited as a deliberate strategy, it is time to take on the role of EPC contractor now that we are seeing a boom in infrastructure projects on the domestic front", he said.

The company has also bagged Rs 124-crore contract for the design, manufacture, erection and commissioning of pumping stations with allied electro-mechanical systems for the Rs 844-crore first phase of the Devadula project, which will supply drinking water to the parched Telengana region of Andhra Pradesh.

The total project, to be executed in five phases is worth Rs 4,284 crore. The first phase of the project, which is being done in joint venture with Hindustan Constructions, will utilise the waters of the Godavari to irrigate over 2,00,000 hectares of arid lands in the region and bring relief to millions in over 500 villages.

Mr Kirloskar said the EPC contract, bagged against stiff international competition, would be executed in the next 18 months. It uses pumping systems that would significantly bring down power consumption, capital costs and brings about huge savings in running costs.

"Our scheme will consume only 52 MW against 67 MW envisaged by international consultants, thus saving 15-MW power and Rs 60 crore in capital costs among other things'', Mr Kirloskar said pointing out that the technology used is now pending domestic and international patents.

In the first phase of the Devadula project, water will be transported in steel pipes of 2.5-m diameter through a distance of 135 m across the terrain and delivered at a location near Ghanpur railway station from where it will be distributed for drinking and irrigation.

Kirloskar Brothers is also executing the Tadipur lift irrigation scheme and Purushothapatnam lift irrigation scheme projects to irrigate over 1,50,000 hectares of land in the west and east Godavari districts of Andhra Pradesh in a contract worth over Rs 85 crore.

Meanwhile, the company has bagged Rs 23.8-crore order this week for the supply of large vertical axial flow pumps for the Paramaribo irrigation project, according to Mr J.R. Sapre, Vice-President, Corporate International Division.

He said the company has also got orders from Egypt for the supply of pumping stations in the 200-800-hp range along the Nile under a refurbishing, replacement and expansion project for such pumping stations being undertaken by the Irrigation Ministry.

While the company has supplied pumps in the 20,000-litres/second category for the Sardar Sarovar project, it is for the first time that it is supplying pumps in the 6,000-litres/second class for the Egypt project.

The company said its net profit for the third quarter ended December 31, 2003 was Rs 5.18 crore, up from Rs 3.21 crore in the corresponding period of the previous year. Its net sales increased to Rs 116.29 crore from Rs 113.28 crore.

For the nine months ended December 31, 2003 the net profit increased to Rs 16.09 crore from Rs 6.33 crore and net sales to Rs 337.35 crore from Rs 312.79 crore.

The company's board, which met here, has also approved a decision to exit from its silk business, Kirloskar Silk Industries, Mr Sanjay Kirloskar said.

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