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Engineers India Ltd.

BSE: 532178 Sector: Engineering
NSE: ENGINERSIN ISIN Code: INE510A01028
BSE LIVE 15:40 | 20 Sep 156.75 -0.50
(-0.32%)
OPEN

157.55

HIGH

157.95

LOW

156.00

NSE 15:42 | 20 Sep 157.00 -0.30
(-0.19%)
OPEN

158.00

HIGH

158.20

LOW

156.05

OPEN 157.55
PREVIOUS CLOSE 157.25
VOLUME 115444
52-Week high 175.70
52-Week low 117.53
P/E 32.39
Mkt Cap.(Rs cr) 10,563
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 157.55
CLOSE 157.25
VOLUME 115444
52-Week high 175.70
52-Week low 117.53
P/E 32.39
Mkt Cap.(Rs cr) 10,563
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Engineers India Ltd. (ENGINERSIN) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to report your Company's performance during its 51styear of shaping the Hydrocarbons landscape of India.

As EIL emerges from its Golden Jubilee year with strong credentials of over fivedecades of service to the nation its robust corporate strategy steered by the corporatevision to build a world-class EPC and total solutions consultancy organization continuesto inspire its workforce to deliver excellence and to create a business portfolio for longterm sustainable growth.

This year your Company successfully carried out an Offer for Sale (OFS) as part of theGovernment of India's decision to divest 10% of its stake in EIL. The OFS wasoversubscribed by 2.54 times with overwhelming participation from FIIs banks mutualfunds and Insurance Companies. With this divestment the GOI holding in EIL is at 59.37%of the paid up share capital of the Company.

During the financial year 2015-16 your Company has registered a turnover of Rs 1496Cr. The revenue from consultancy & engineering business stood at Rs 992 Cr. ProfitAfter Tax during the year was Rs 258 Cr. Revenue from overseas operations touched all timehigh of Rs 329 crore a year on year increase of 49%. The contribution of revenue fromoverseas operations has touched 22% for FY 2015-2016 as compared to 13% in the previousfiscal.

On the business front your Company secured new business of '1596 Crore in FY2015-16which includes '1210 Crore from domestic consultancy and turnkey business and '386 Crorefrom overseas business. Major contribution in the order inflows continues to be fromConsultancy and Turnkey Business in Upstream and Downstream sector of HydrocarbonIndustry both from domestic and overseas markets and diversified areas of Infrastructure.

In the upstream segment your Company was awarded Consultancy Services for LifeExtension of Well Head Platform Project (Post Award Activities) for ONGC ConsultancyServices for Integrity Check of Platforms under PRP-4 Project for ONGC and FEED forBhagyam Polymer Enhanced Oil Recovery Project of Cairn India Ltd.

In the midstream segment HPCL has entrusted your Company with a challenging assignmentof preparation of a DFR for pumping of LPG through a multi-product pipeline a uniqueproject being executed for the first time in India. In addition to this your Company hasalso bagged the job for providing EPCM Services for Mundra Bathinda Pipeline CapacityExpansion Project (MCEP) PMC Services for Laying Skin Effect Heat Traced Pipelines withassociated facilities for BPCL at Kochi Refinery and Mumbai Refinery for integrating bothRefineries.

In the downstream segment the major orders include Diesel Hydrotreater (DHT) andAssociated Facilities at BPCL Mumbai Refinery EPCM services for DHDT Project ofNumaligarh Refinery EPCM services for Calico Tankage project at HPCL Mumbai Refinery PMCServices for Revamp and Capacity Enhancement of BORL Refinery Project ManagementConsultancy for Propylene Derivative Petrochemical Project (PDPP) at BPCL Kochi RefineryPre-project activities of VRMP at HPCL Vizag Refinery Consultancy Services for VGOHDT& SRU Revamp and Additional Offsite under Low Cost Expansion Project of GGSR Refineryof HMEL BDEP for DHDT & DHDS Units for Gujarat Refinery of IOCL Pre-projectActivities for BS VI MS Block Project (MSBP) at Kochi Refinery of BPCL among many others.

In the Turnkey domain your Company was successful in securing the job for executingInstallation of Lean Gas Compressor and LPG Column Condenser in LPG plant at HaziraComplex on OBE mode of implementation.

Your Company has diversified into Port Infrastructure development and secured majorjobs such as PMC Services for LPG Import Facility at Haldia for BPCL PMC Services forConstruction of Fifth Oil Berth at Jawahar Dweep Mumbai Harbor DFR for Development ofBerth in the Spending Beach to Handle Chemical Small Parcel Size Vessels at New MangalorePort and DFR & DPR for Providing Handling Equipment at Berth No.8 for HandlingContainers and Clean Cargo for New Mangalore Port Trust.

In the Infrastructure segment your Company has synchronized its strategic directionwith the impetus created by Government of India for Urban Infrastructure Developmentviz. Smart Cities & AMRUT Schemes. Your Company has secured various prestigious jobsdespite stiff competition like Preparation of Smart City Proposal (SCP) for assistingRampur Nagar Palika Parishad & Moradabad Municipal Corporation to participate in theSmart Cities Challenge. Under the Water & Waste Water Management segment your Companywas awarded Project Development and Management Consultant (PDMC) Services under AMRUT forGovernment of Odisha PMC services for implementation of Sewerage Projects on the commandof Najafgarh Drain for segment A-B (Dhansa to Goyla) and B-C (Goyla to Keshopur) for DelhiJal Board (DJB) under the Namami Gange Programme - Execution of entry level activities(Ghats Crematoriums & Village level drain treatment) and Sewerage Infrastructure.Technical and Financial Audit of Infrastructure works to be executed by the Urban LocalBodies and Punjab Water Supply & Sewerage Board for Punjab Municipal InfrastructureDevelopment Company EPCM Services for Effluent Treatment Plant at Tengakhat Assam for OilIndia Limited.

In the buildings and other infrastructure development projects your Company securedvarious assignments like DPR for development of Vijayawada Airport to InternationalStandards PMC Services for Data Center Complex at Hyderabad for State Bank of India PMCServices for construction and development of various buildings and services for IIT Patna.

In the overseas segment your Company has maintained its business growth in the MENA (Middle East North Africa ) Region. In the UAE market your Company secured two major PMCassignments viz Al- Dabbiyah ASR Gas Development Project for ADCO and Improvement of FireFighting Facilities at Abu Dhabi Refinery for Takreer. In Bahrain your Company wassuccessful in signing the extension of its long term General Engineering ServicesAgreement with the state owned company M/s BAPCO. Under this contract BAPCO awarded yourCompany a number of engineering assignments which included FEED package for HeaterReplacement and LBO Oil System Study.

Your Company has also forayed into training services segment for its overseas clientsand has provided four training sessions for BAPCO in Bahrain. Trainee Engineers of DORC(Dangote Oil Refining Company) are being provided an insight into various facets ofProject Management Process Design Detailed Engineering and Construction Management byin-house faculty of your company including the detailed information about DORC Refinery.

Your Company has entered the Mauritius market by undertaking Feasibility Study relatedto supplying petroleum products in and around Mauritius and mainland Africa for M/s.State Trading Corporation of Mauritius. In appreciation of the work carried out forSonangol Angola earlier for their refinery your Company was awarded further consultancywork for cost estimation licensor selection BDEP review for their upcoming LobitoRefinery for Sonangol Angola.

Additional works were also awarded by Dangote Nigeria as part of its 20 MMTPA refineryfor which your Company is providing EPCM/ PMC Services.

Your Company bagged a contract for additional services from Turkish PetroleumCorporation (TPAO) with whom EIL was working for advance FEED for their offshore pipelinesand Platform project.

This year saw a number of critical projects commissioned and good progress achieved onother ongoing projects. In the Refinery Segment CDU-4 project of BPCL Mumbai Refinerywhich was executed by your Company in EPCM Mode has been completed and successfullycommissioned this year. The IREP project of BPCL's Kochi Refinery to increase refiningcapacity from the current 9.5 MMTPA to 15.5 MMTPA is in the advanced stages ofconstruction and is close to completion EPCM services for conversion of CRU to ISOM andrevamp of NHDS to NHT at BPCL Mumbai Refinery is progressing well and PMC services forimplementation of Captive Power Plant of IOCL's 15 MMTPA Paradip Refinery Project has beencompleted.

In Petrochemical Sector Assam Gas Cracker Project a grass-root petrochemical projectof Brahmaputra Cracker and Polymer Limited executed by EIL on EPCM mode was commissionedthis year. The availability of petrochemicals from the project will boost the developmentof plastic industry in the North-Eastern region of the country. Dahej PetrochemicalComplex of ONGC Petro additions Limited (OPaL) being executed on PMC mode is in advancedstage of completion and Captive Power Plant and utilities have been commissioned.Propylene Derivative Petrochemical Plant of BPCL Kochi Refinery among other petrochemicalprojects are progressing well.

As part of strategic investment in the Fertilizer sector EIL has taken equityparticipation in Revival of Ramagundam Fertilizer Project along with National FertilizersLimited and Fertilizer Corporation of India Limited. A joint venture company (M/sRamagundam Fertilizers and Chemicals Limited) has been formed to pilot this project. EILis also executing this project on EPCM Mode with significant progress achieved this yearon front end activities. During this fiscal your Company also successfully completedfertilizer projects in Nigeria Bangladesh and Indonesia.

In Infrastructure Segment significant progress was achieved in Head Quarters Buildingof UIDAI in Delhi Inland Container Depot for Container Corporation of India Limited whereyour Company is providing PMC Services among other ongoing infrastructure jobs.

Under Phase-I of the GOI's Strategic Storage programme your Company is providing PMCservices to Indian Strategic Petroleum Reserves Limited (ISPRL) for construction ofunderground unlined rock cavern storages in Vishakhapatnam Mangalore and Padur having atotal capacity of 5.33 MMT. During the year significant progress has been achieved andthe Vishakhapatnam storage has been commissioned. Pre-commissioning activities areunderway at Mangalore and Padur.

In the metallurgy segment your Company successfully completed appointment of MineDeveloper-cum-Operator for Kapurdi and Jalipa Mines of Barmer Lignite Mining CompanyLimited in Rajasthan Feasibility Study for revamping of Rectifier Station-I for HirakudSmelter of HIL among various other ongoing projects.

Your Company's overseas operations have been augmented with an Engineering Hub in AbuDhabi to cater to the business in the MENA region. Significant overseas jobs completedduring the year include Detailed Engineering & Procurement services for Slops &Drains Upgrade at Umm Sharif Super Complex (USSC) of Abu Dhabi Marine Operating Company(ADMA-OPCO) Study for Up-gradation of Anti Surge Valves for Propane Compressor of Train 1& 2 for ADGAS Shahjalal Fertilizer Project of Bangladesh having a capacity of 1000MTPD Ammonia Plant and 1760 MTPD Melt Area and Urea Granulation Plant among others.

To meet the rising expectations of clients and stay ahead in the technological curveyou Company has invested significantly in research and development with the consolidationof existing capabilities development of new technologies and hardware besides enhancementof the portfolio for special technology related services. R&D Division is pursuingdevelopmental activities both in-house and in collaboration with academic institutes likeIIT Delhi and other R&D organizations like IOCL-R&D CSIR-IIP BPCL (R&D) etc.Apart from these established R&D organizations EIL (R&D) has also beencollaborating and cooperating with small companies to promote the creative ideas generatedby them. During the year your Company's R&D Efforts were recognized by grant ofpatent for Novel Distributor Tray for Trickle Bed Reactor Trademarks. In addition 5Patents have been filed during the year. With this your Company's patent portfolio hasgrown to 17 live patients and 18 pending patent applications for various processtechnologies. Trademarks for 9 in-house technologies have been applied for registration tobolster your Company's brand equity.

Information Technology Services (ITS) division of your Company continued to providestate-of-the-art IT enabled services to your Company's main stream activities bydeveloping / implementing leading IT solutions with an aim to deliver better qualityservices with increased efficiency at reduced costs. Key projects developed by the ITSDepartment include - as a part of statutory requirement of the Government of India theeTDS system at EIL which was modified in line with the changed formats and validationsreleased by NSDL. Also modifications were made in vendor TDS return filing program incompliance with the latest file validation utility of NSDL a single window facility wasdeveloped for NEFT transfer of employee salary. To achieve operational improvement variousproject execution related dashboards have been integrated to have all the datawell-structured and well connected at one place.

Your Company over the years has also executed projects in diversified fields of water& waste water treatment; effluent recycle and zero discharge projects;EnvironmentalImpact Assessment studies; environmental audits; air quality assessment solid &hazardous waste management fugitive emissions control environmental health & riskmanagement etc.

Your Company takes pride in its highly motivated and spirited work-force withprofessional expertise and strong technical calibre - the propellers of your Company'sgrowth engine. Engagement and Empowerment of executives is therefore critical forimproving the project performance in terms of time and cost efficiencies.

Working in the knowledge and services sector your Company recognizes and values theimportance of nurturing its human capital. This year focused on strengthening HR's role asa Strategic Business Partner with the formulation of a HR strategy 2015-2020 aligned toyour Company's Business Strategy. Internal organizational restructuring efforts have beenmade to reduce interfaces enhance productivity and improve efficiency in company'sbusiness operations. The Strategy has been drawn up for proactively facilitating theachievement of organizational plans targets and challenges through timely identificationpreparation and deployment of appropriate human resources. To create robust systems ofperformance assessment in line with Industry best practices the performance appraisalprocess and promotion policy for officers was modified and implemented to drive higheremployee engagement. The core competencies of the Company were further strengthened bydesigning and organizing Domain Specific/Specialized Training Programmes whereas themanagerial and behavioral capabilities were strengthened through adequate focus on softskills programmes.

The CSR Policy of your Company is aligned with the national focus on inclusive growthDPE Guidelines on CSR and the Companies Act 2013. The thrust areas for your Company's CSRactivities/projects were in education healthcare drinking water/sanitation ruralelectrification environment protection/sustainability women empowerment upliftment ofunderprivileged community development vocational training/skill centre. In line with theHon'ble Prime Minister's vision to provide safe and clean toilets to a large segment ofthe Indian population especially women your Company met its target for the constructionof 509 toilets in the states of Bihar Odihsa Tamil Nadu and Assam this year.

As part of the Hon'ble Prime Minister's Make in India initiative EIL is piloting themidstream sectors for Make in India initiative under MoP&NG and is a member of theSteering Committee set up for the purpose. To this effect regular vendor meets are beingorganized by EIL for interaction with the specific domain based industries and onlinevendor empanelment processes. Apart from regular vendor meets two dedicated workshopswere also organized by your Company with select domestic and overseas stakeholders inMumbai and Delhi for sensitizing the manufacturing sector to various policy initiativesbeing contemplated by GOI and by the Oil & Gas sector.

Ever since its inception your Company has accorded highest priority to Health Safety& Environment (HSE) in all aspects of its operations. During the year your Company'sHealth Safety and Environmental (HSE) Management system was certified by an accreditedCertification Body to OHSAS 18001 (Occupational Health and Safety Assessment Series) andISO 14001 (Environmental Management system). The same was revalidated by third partycertification bodies through a surveillance audit conducted during the year. Thesecertifications will enhance your Company's evaluations scores while bidding for overseasjobs particularly in the Middle East Oil & Gas market.

During the year the Quality Management System of your Company was reassessed throughexternal Surveillance Audit for continual conformance to ISO 9001:2008 by the third partycertification agency which confirmed that the Quality Management System of your Companycontinues to conform to the international standard ISO 9001.

This year also saw the Company being bestowed with number of prestigious awardsprominent being National Awards for Excellence in CSR & Sustainability by "WorldFederation of CSR Professionals" and "World CSR Day" 8th CIDCVishakarma Award for Best Construction Projects to CDU-4 Project BPCL Refinery MumbaiScope Excellence Award for Outstanding Woman Manager and Legend PSU of the Year Award forR&D in Petrochemicals. While our efforts are self-less and authentic in spirit theserecognitions from external Boards of eminent judges confirms that our progress is in theright direction.

Your Company remains committed to good Corporate Governance and ethical practices asper SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 with stockexchanges and Government Guidelines.

I thank you for your continued support and faith in the Company's growth potential andlook forward to your feedback and advice. EIL management joins me in wishing you and yourfamily lot of prosperity and good health.

Sanjay Gupta