Hindustan Dorr targets Rs 1000cr turnover

The IVRCL group-owned Hindustan Dorr Oliver Limited (HDO) has embarked upon an ambitious growth plan of increasing its turnover five-fold to over Rs 1,000 crore by 2011 from the level of Rs 208.5 crore in 2006-07.

Besides expanding the capacity of its process plant equipment manufacturing facility at Vatva in Ahmedabad at a cost of Rs 50 crore, the company is also looking towards setting up a second manufacturing facility in south India.

HDO executive director, SC Sekaran, said the new state-of-the-art manufacturing equipment like plasma cutting machine, high capacity plate-bending machine and material handling facilities were being installed at the Vatva plant as a part of the expansion programme.

"We are currently catering to manufacture of pressure vessels and heat exchangers to leading industries including L&T, Befesa, Ion Exchange, Reliance, Bharat Oman Refineries, Bangaigaon Refinery and Petro Chemicals, Hindalco, Chennai Petroleum Corporation, Dresser Rand and Aquatech. Hence, from the current level of Rs 50 crore from manufacturing, we are targeting a turnover of Rs 200 crore by year 2011," Sekaran said.

With synergies from its parent company IVRCL, Sekaran said HDO had ventured into executing large-scale EPC projects in mineral beneficiation, environment and fertiliser business segments on a turnkey-basis in the last three years. After completing a grassroot aluminium refinery for Vedanta in Orissa for Rs 200 crore, HDO is currently executing the fourth phase expansion of Nalco's alumina plant valued at Rs 77 crore. At present, it has an order book of Rs 400 crore in EPC projects.

According to Sekaran, HDO will be a direct beneficiary of the growing mineral processing and environment management sectors. It will also gain against competition on account of being an end-to-end engineering solutions provider along with an in-house manufacturing facility. In view of this, HDO's turnover from EPC and lump sum turn key (LSTK) projects is expected to touch Rs 750 crore in the next three years.

This apart, HDO has ventured into the knowledge process outsourcing (KPO) business, which it is currently using to carry out EPC projects of Indian Oil Corporation, Hindustan Petroleum Corporation and Rashtriya Chemicals and Fertilizers (RCF).

It has procured software 'Microprotol' and PV-ELITE for computer-aided design of pressure vessels and heat exchangers.

Recently, HDO bagged a contract for basic designing, engineering and handing the plant along with associated facilities for Rs 82 crore for RCF's ANP granulation plant package.

The KPO currently has 400 engineers of various disciplines and diverse industrial exposure working at Mumbai, Chennai and Ahmedabad. It would be expanding the headcount to 750 in three years.

The company expects that the income from this division would touch Rs 10 crore in the next three years from the current Rs 3 crore, Sekaran said.