The Rs 641-crore public sector engineering enterprise Mecon Ltd is considering diversification into solar energy, wind and nuclear power as also defence production. The company currently functions in three operational verticals – metals, oil & gas and infrastructure.
According to the Mecon's perspective plan document, it is looking for cooperation agreement with a few other public sector engineering companies, such as Bridge & Roof Co and Hindustan Steelwork Construction Ltd, Garden Reach Shipbuilders & Engineers Ltd, Engineers India Ltd and Engineering Projects India Ltd.
For EPC assignments it is in talks with Bridge & Roof and HSCL for collaborative association in civil and structural work. It has also mooted the idea of working as a consortium with the two. It has sought Garden Reach Shipbuilders' assistance for “supply of critical equipment”.
Oil and gas
In the oil and gas space it wants to partner EIL for detailed engineering and consultancy for long distance pipelines and utility services in a refinery.
The company has sought autonomy form its administrative Ministry of Steel to enter pre and post tender tie-ups for acquiring technology and execution of projects.
“The CMD or the directors should have the decision making power on such issues”, a senior Mecon official told Business Line .
Mecon witnessed a jump in net profit, net worth and order book in FY2011. It recorded a net profit Rs 93.69 crore (Rs 82.62 crore) in the previous fiscal, while its net worth reached 203.97 crore (Rs 113.95 crore).
It procured business worth Rs 627.65 crore in 2010-11 against Rs 125.62 crore in 2009-10.