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Shriram EPC scouts for partners in foreign markets

TE Narasimhan  |  Chennai 

Shriram EPC is scouting for partners in Africa, West Asia and South Asia to form joint ventures for its proposed entry into these geographical areas.

Speaking to Business Standard, T Shivaraman, managing director & CEO of Shriram EPC, said the company is looking beyond India for water and power mainly in these countries.

“We will have a local partner in the respective countries, both for domain knowledge and for marketing. For instance in Australia, we don’t have expertise in mining, so a local partner will be roped in. We are yet to work on what the structure should be,” said Shivaraman.

The company recently entered new verticals like solar power and expanded operations internationally into countries like Zambia, France and Australia.

It is also planning to raise around Rs 150 crore through a rights issue to increase the group’s holding. Commenting on the proposed issue, he said they had appointed a merchant banker. “We want to increase the promoter shares from the current 45 per cent. Up to what level the shares should be increased, is yet to be decided.”

Shriram EPC, a $290-million company provides end-to-end solutions to engineering challenges, offering multi disciplinary design, engineering, procurement, construction and project management services.

Its order book, as on March 31, 2012, was around Rs 3,802 crore, of which EPC alone was around Rs 2,924 crore. The other includes from the power sector, water and its subsidiaries.

The company has bid for three-four projects, primarily relating to water, in the West Asia through its subsidiary, added Shivaraman.

Recently, it received an order in the municipal services segment amounting to Rs 165 crore from the Kerala Water Authority for setting up a water distribution system for Kozhikode and adjoining villages.

The percentage of urban population in India has been increasing at a tremendous pace. And, over a period of 20 years, that percentage of population with access to sanitation has only risen by 7 percentage points. Government investment in the sector is expected to rise up to $ 26 billion by 2012, the company said quoting a World Bank report.

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First Published: Tue, August 07 2012. 00:23 IST