Sets a turnover target of Rs 1,000 cr by 2010
Ahmedabad, Feb 4 Doshion Ltd, the Ahmedabad-based water management company, is planning to acquire one company each in India and abroad. It is targeting a turnover of Rs 1,000 crore in 2010. The company, which received Rs 300 crore order from Rajasthan last month, is in talks with the two companies in a bid to acquire them this year for around Rs 50 crore, Mr Ashit Doshi, Managing Director, told Business Line here. However, he declined to give details.
To expand capacity Doshion, he said, is investing Rs 40 crore this year to create additional infrastructure at its new campus in Ahmedabad.
The company, with an order book of nearly Rs 300 crore, has recently been awarded a Rs 50 crore turnkey project from Indian Oil Corporation to build the world’s largest refinery effluent recycling plant at Haldia in West Bengal, providing comprehensive waste water treatment, recycling and demineralisation at the rate of 1,250 cubic meters per hour.
This project is scheduled to be commissioned in September 2008.
Doshion, which provides water and waste water management to all the Vedanta Group projects, among others, currently has some 15 projects abroad and is poised to export its products worth Rs 100 crore next fiscal, he said. The company recently completed a $4 million project with Mitsubishi in Taiwan, setting up a water treatment facility for the world’s largest power plant there.
Doshion recently completed a Rs. 60 crore project in Tirupur, TamilNadu, where it built the world’s largest textile effluent recyling plant, which recycles 1,200 cubic meters of waste per hour for nearly 400 textile mills. Trial runs are in progress now and commissioning would take place in the next few weeks, he added.
IDFC had agreed to invest Rs 35 crore in Doshion in November 2007, Mr Doshi said, adding the company would approach othe rprivate equity players to fund its project before considering the IPO route for further expansion after 2010 once it crossed its targeted turnover of Rs.1,000 crore.
The company, founded in 1978, has seen phenomenal growth after it won an EPC contract for Rs. 35 crore from the Vedanta Group in 2004 when its turnover was only Rs.30 crore. Winning the Hindustan Zink Ltd(HZL) project from Vedanta catapulted Doshion sales to Rs 100 crore in the same year, a growth of 250 per cent. It has since bagged HZL orders for Phase II expansion and completed water treatment facilities for Vedanta Alumina Ltd in Orissa, totalling Rs 60 crore.
In 2006-07, its turnover was Rs 210 crore and is projected at Rs 350crore this year. Following the Vedanta example, Doshion, too, has encouraged entrepreneurial spirit amongst its employees many of whom have set up their own businesses and become sub-contractors to the parent organisation, receiving technical and management support from the company, Mr Doshi said.
The company has now been asked by the Rajasthan State Mines and Minerals Ltd (RSMML) to set up a 20 million liters per day (MLD)brackish water desalination plant on design, build, own, operate and transfer (DBOOT) basis for 15 years at Kasnau-Matasukh lignite mines at Nagaur. The state-owned PSU is the largest producer of high grade rock phosphate in India.
Earlier, Doshion had installed India’s first sea water reverse osmosis (RO) plant for supplying water to 300 villages in Ramanathapuram district of Tamil Nadu. In Gujarat also, the company has taken up a similar project for 300 villages and some municipal bodies.