Kolkata-based BTL EPC, part of the Shrachi Group, is expecting an order book of ₹1,500 crore by March 2019. Its order book by the end of this fiscal is expected to be around ₹800 crore.
BTL EPC – the engineering, procurement and construction company – accounts for around a third (33.33 per cent) of the ₹1,000-crore revenue of the Shrachi Group.
According to Ravi Todi, Managing Director, Shrachi Group, the healthy growth in order book will be supported by improvement in demand across the steel and power sectors.
BTL EPC Ltd was primarily into coal and chemical handling business. But, following the volatility in the segment, it has diversified into transmission, solar, water and equipment divisions. The company is also looking to foray into product manufacturing in power and steel sectors.
“The scope [for growth] is looking good, particularly in power and steel sectors. A number of projects which were stalled are now picking up. We are hopeful of achieving an order book of ₹1,500 crore next fiscal,” said Todi during a select media conference here on Wednesday.
While nearly 95 per cent of BTL EPC’s revenues come from government projects and PSUs, it is now looking at a greater share from private businesses. In fact, it is already doing EPC contracts for larger conglomerates such as JSW Steel and Tata Steel.
Over a period of time, the revenue contribution between government and private sector EPC contracts will be around 75:25.
“We expect to grow at a CAGR of 15 to 20 per cent at least for the next few years. Additionally, we are also exploring inorganic growth by way of domestic acquisitions,” said Todi.
BTL EPC is already in advanced talks for the acquisition of a Chennai-based company. The acquisition will help the Todis gain a foothold in the south Indian markets.
“We can leverage their order book and also manufacturing units in north and south for greater access to these markets,” he said.
BTL EPC is present in West Bengal, Jharkhand, Uttar Pradesh, Odisha, Chattisgarh, Himachal and Uttarakhand. In the south, it is present in Andhra Pradesh and Telangana.