Companies

Arvind’s engineering arm aims to be a full solutions provider for oil sector

Rutam Vora Ahmedabad | Updated on May 14, 2018 Published on May 14, 2018

Rishi Roop Kapoor, CEO, Anup Engineering

Plans to double capacity with ₹80-crore capex

Ahead of its proposed demerger from the parent Arvind Ltd later this year, engineering arm Anup Engineering Ltd is gearing up to redefine itself from a fabricator to a complete solutions provider in the process equipment engineering for key sectors of oil and gas and petrochemicals.

Besides its core strength in the fabricated process equipment engineering, Anup Engineering has started investing heavily in design software and expert manpower to provide overall solutions for the specialised engineering requirements through mechanical design domain, using finite element analysis and 3-D modelling. By expanding its product mix, the company aims to reap more from the offshore business.

Rishi Roop Kapoor, CEO, Anup Engineering, told BusinessLine that next on the company's radar will be technology tie-ups and creating own products as complete engineering solutions. It has laid down capex plans of ₹80 crore to double existing fabrication capacity of 15,000 tonnes per annum by implementing product mix. Out of the planned investment, ₹40 crore has already been invested.

“Design and engineering is now turning into our strength. Over the last couple of years, we have been investing in designing software - thermal design software and hired experts in this area. The mechanical design domain is a link to that, which will help us move into our targeted direction. We would like to have our own product to offer a complete solution to our customers," said Kapoor.

The company's current strength lies in design and manufacturing of complex shell and tube heat exchangers using different metallurgy.

The engineering segment of Arvind contributed ₹224 crore or about 2 per cent to the diversified textile giant's consolidated revenues of ₹10,880 crore for the fiscal 2018.

“Engineering business registered strong growth and delivered revenue of ₹84 crore (up 32 per cent) during the quarter. EBITDA for the (fourth) quarter also grew strongly to ₹25 crore, a growth of 75 per cent over the corresponding quarter in previous financial year," Arvind Ltd said in a statement.

Anup Engineering currently gets 50 per cent of its revenues from offshore business, mainly from Middle-East region. “We are also looking at opportunities from upcoming refineries in India and the US refiners as well as emerging businesses such as shale gas exploration," said Kapoor, adding that the company is debt-free and has capacity to fund its expansions through internal accruals.

“Looking at the offshore opportunities, we are looking to have a second facility to be located along the Gujarat coast. It will be much bigger from the existing capacity and will be developed in phases," he added without divulging further details.

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Published on May 14, 2018
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