The Hindu Business Line : Tata Honeywell hopes to double revenues — To add 400 staff for meeting orders from power units

THE Electricity Act 2003, which ushered reforms in power generation and distribution has led to a surge in orders for industrial automation solutions company Tata Honeywell Ltd, according to senior company officials. The Rs 300-odd-crore company plans to add 400 employees to its staff strength of 900 this financial year.

"We hope to double our turnover in the next three years," Mr Vinayak Deshpande, Managing Director, Tata Honeywell, told Business Line.

According to Mr Deshpande, the Electricity Act that has freed power generation and eased restrictions on selling power only to financially unviable State Electricity Boards, has led to a substantial spurt in orders from captive power generation units and from private sector entrants in the power sector.

"We have received big automation orders from Hindustan Zinc, Gujarat Ambuja, Indal, HEG, Balco and Tata Steel for automation of their captive power plants," Mr Deshpande said.

The company helps captive power producers (CPPs) maximise plant efficiency and track the condition of plant, equipment and also costs through its scalable automation system `Experion PKS', said Mr Harsh Chitale, senior official at Tata Honeywell.

The company had, however, expected a surge in the power business around three years ago when the power sector reforms were first spoken of. It had entered into tie-ups with US power major General Electric and with its 40 per cent owner Honeywell Group for technology on boiler generation efficiencies, Mr Chitale said.

The company had then invested Rs 4 crore on setting up a unit at Chennai for training around 40 engineers to specialise in power sector automation.

Traditionally, Tata Honeywell's large industrial automation clients have been the pulp and paper, metals and mining industries which form roughly 50-55 per cent of its turnover. Roughly one-fourth revenues come from automated security solutions for homes and businesses and 20 per cent from exports to the US, Canada and Europe.

Mr Deshpande, however, claims the company's future will not only include the power sector but also the oil and gas and petrochemicals industries.

"All these verticals are growing at 20 per cent plus each year. The overall growth has reflected in Tata Honeywell's growth as we have had to add 250 new employees in financial year 2003-04 taking our staff-strength to 900-odd employees for meeting expanding needs," he said.

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Tata Honeywell hopes to double revenues — To add 400 staff for meeting orders from power units