Ranchi-based capital equipment maker Heavy Engineering Corporation Ltd (HEC) will soon kickstart its Rs 1,240-crore turnaround capex plan that is aimed at revitalising the PSU and quadruple its topline to over Rs 1,600 crore in the next five years.
The modernisation and expansion plan will be funded by a mix of internal resources raised through excess land monetisation and debt, the company said.
“We are waiting to get government approval to kickstart the capex plan. We don’t foresee any major delay as we are not seeking any government financial assistance,” HEC Chairman and Managing Director Avijit Ghosh told PTI in an interview.
He said the total capex plan is estimated at Rs 1,240 crore and it would be deployed in phases based on priority sectors over the next few years.
HEC had altered the original turnaround plan submitted by state-owned consulting firm Mecon in 2014. The company has shifted its focus on defence and nuclear energy sectors as new strategic focus areas to become a strategic partner for the country in supporting the government's ‘Make in India’ programme.
“We have modified the plan internally and got the same corroborated by the global consultant Ernst and Young before submitting it to the Heavy Industries Ministry,” Ghosh said.