Chennai boiler plant to restart operations under new name

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Deutsche Babcock Borsig's boiler manufacturing plant near Chennai. Bijoy Ghosh
Deutsche Babcock Borsig's boiler manufacturing plant near Chennai. Bijoy Ghosh

M. Ramesh

Chennai, April 1

DEUTSCHE Babcock Borsig's boiler manufacturing plant at Poonamallee on the outskirts of Chennai is to restart operations in June under a different management and a different name.

The unit was shut down for nearly two-and-a-half years, consequent upon the German company, Babcock, becoming insolvent.

Last month, a company called Austrian Energy & Environment (AE&E) took over the unit for an undisclosed sum and renamed it AE&E Chennai Works Ltd. AE&E was originally a part of Babcock.

The Austrian principals intend to spend Rs 2.5 crore in bringing AE&E Chennai Works back to working condition.

According to Mr C.N. Sapthasayee, Deputy Managing Director, AE&E Chennai Works, the company would initially focus on doing jobs for other boiler manufacturers such as BHEL and Alstom. Once refurbished, the company's facilities can produce pressure parts components of steam boilers.

It also expects to get orders for `pressure products', like heat exchangers from the petrochemical industry. Later, the company would acquire man and machine capability to manufacture a full boiler.

Right now, AE&E Chennai Works does not have presses to make boilers. The presses are to be bought, but that is for the future.

Meanwhile, Austrian Energy & Environment has also taken over another unit of Babcock, the Chennai-based Intercontinental Development & Engineering Pvt Ltd (I.D.E.A), a company that provides engineering design services.

Anticipating work from its new principals, I.D.E.A plans to raise the number of its engineers from 200 to 350 in two years, according to the company's Managing Director, Mr Sapthasayee.

In 2004, the company achieved a turnover of Rs 12 crore which is expected to grow to Rs 15 crore this year.

It has both Indian and overseas clients. Most of the overseas clients are from the US and Europe.

(This article was published in the Business Line print edition dated April 2, 2005)
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