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Engineers India Ltd.

BSE: 532178 Sector: Engineering
BSE 13:42 | 16 Aug 68.20 0.55






NSE 13:29 | 16 Aug 68.20






OPEN 68.00
VOLUME 16852
52-Week high 82.45
52-Week low 55.95
P/E 12.61
Mkt Cap.(Rs cr) 3,833
Buy Price 68.15
Buy Qty 54.00
Sell Price 68.30
Sell Qty 117.00
OPEN 68.00
CLOSE 67.65
VOLUME 16852
52-Week high 82.45
52-Week low 55.95
P/E 12.61
Mkt Cap.(Rs cr) 3,833
Buy Price 68.15
Buy Qty 54.00
Sell Price 68.30
Sell Qty 117.00

Engineers India Ltd. (ENGINERSIN) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to present to you the performance of your Company duringthe 56th year of its service to the Nation.

Last one year have been a challenging year in the history of mankind. One of the worstdisasters (Pandemic COVID-19) struck the globe killing millions of people and perhapschanging the way we live and work forever. The pandemic has truly been a stern test forcountries and industries globally. Just when the world thought it had controlled thecoronavirus there came a devastating second wave once again plunging nations into chaos.As a result the world still continues to battle the COVID-19 crisis which has thrown upimmense challenges across operational business and health fronts. Indian economy was alsoseverely impacted due to the pandemic and consequent lockdowns.

However with the Government of India's massive stimulus package coupled with variousreform measures and the rapidly progressing vaccination drive we are confident that theeconomy will turn the corner very soon which will have a cascading effect on the criticalhydrocarbon sector and allied industries.

To overcome the impact of Pandemic we in EIL have learned & implemented new waysof working remotely and interactions have got digitised in the form of webinars videoconferences etc. This caused minimum impact on the day to day functioning of EIL exceptthe construction function since all project sites were closed. Further EIL with itscommitted workforce and unwavering dedication has maintained its position as India'sleading engineering consultancy company even during these tough times.

EIL is steadfast in its resolve to be a key contributor towards the development ofhydrocarbon and infrastructure sector in India and remains committed to helping the nationachieve its goals of selfsufficiency and all-round progress while simultaneously nurturingthe manufacturing industry and spreading the same spirit of contribution to nationalgrowth.

Despite the challenging business environment and strong competition EIL has postedagoodfinancial and operational performancein FY2020-21.

On the financial front your Company has registered an Annual Turnover from operationsof Rs.3104 Crores. Profit Before Tax (PBT) and Profit After Tax (PAT) during the yearstood at Rs.350 Crores and Rs.259 Crores respectively. Despite the pandemic your companyhas been able to sustain its topline during the financial year.

During the year your Company secured new business worth Rs.1569 Crores. This includesbusiness worth Rs.1455 Crores from domestic consultancy and overseas business worthRs.101 Crores.

Your Company continues to make good progress in all its core and diversified businesssegments.

In the upstream segment EIL secured assignments for EPCM Services for Western GatewayProject Early Production facilties (Variation Order).

In the midstream segment EIL secured orders for providing PMC / EPCM Services forNagpur-Jharsuguda & NTPC Korba Spur Section of Mumbai-Nagpur-Jharsuguda Pipeline(MNJPL) PMC Services for Krishnagiri-Coimbatore section of KKBMPL-II Project and PMCServices for Dhamra-Haldia Pipeline Project.

In the downstream hydrocarbon sector assignments secured include Overall ProjectManagement and EPCM Services (Phase 2) for 15 MMTPA to 25 MMTPA Capacity Expansion ofPanipat Refinery (P-25 Project) of IOCL EPCM services for 500 KTPA PDH-PP project of GAILat Usar Consultancy Services and Overall Project Management for CokerB Revamp of BarauniRefinery Capacity Expansion (to 9.0 MMTPA) Project of Indian Oil Corporation Limited Supply of License Basic Engineering Design Package (BEDP) Catalyst and Other RelatedServices for Sulphur Recovery Unit (SRU) for Numaligarh Refinery Expansion Project (NREP)and various other assignments.

In the Infrastructure segment EIL secured assignment for providing Project ManagementConsultancy (PMC) Services for the Development of Effluent Treatment and InfrastructureFacility at Jhagadia Pumping Station Technical assistance for supervision ofMumbai-Ahmedabad High Speed Rail Project (C4 C6 & P4 Packages) to NHSRCL PMC forConstruction of New Domestic Terminal Building and Variation Order for associated works atLeh Airport J&K.

In the metallurgy segment EIL bagged orders for Owner's Engineer Services for 6.0MMTPA Mechanized Production and Evacuation Facilities at Kurmitar Iron Ore Mines from OMCand Preparation of DPR & Selection of Technology for Bauxite Conveying System fromPottangi Mines to Alumina Refinery Damanjodi of NALCO.

In the International segment EIL has been strongly enhancing its footprint by securingvarious engineering and consultancy assignments in various regions mainly in CentralAsia Middle East and Africa. Duringthe year overseas assignments secured by EIL includePMC Services for FEED for Site Schemes (CED Projects) AL NASR Super Complex and FieldPlant Modification Request (PMRs) and Engineering work (under ESA) Zirku IslandFacilities Studies / Engineering Packages (PMRs & FCs) (Package-3) fromADNOCOffshorealongwith a couple ofvariation orders.

Other major contributors in Overseas business included Additional Consultancy Serviceswork under ongoing contract for Dangote Refinery Project in Nigeria and Project ManagementConsultancy Services contract for "Installation of ERL Unit-2" for BangladeshPetroleum Corporation. EIL is consistently pursuing opportunities in other internationalterritories to enhance its geostrategic outreach.

This year a number of critical projects were completed by your Company. We are makinggood progress in other ongoing projects. All Procurement is carried out in consonance withPublic Procurement Principles viz Transparency Equity and Fairness ensuring desiredquality within the designated time frame at the most competitive prices and comprehensivecompetition.

Duringthe year EIL has been involved in the procurement of INR 18810 Crore worth ofgoods services and works for various projects entrusted to EIL as well as meetingin-house requirement.

Out of the several projects completed by EIL during the year 30" x 348 km Dobhi -Durgapur Natural Gas pipeline section of GAIL LPG Import Facility Project of BPCLPropylene Derivative Petrochemical Project (PDPP) of BPCL and FCC-GDS unitin BS-VI AutoFuels Project (OBE) CPCL Refinery Chennai were dedicated to the Nation by Hon'ble PrimeMinisterof India.

In the refinery segment during this year your Company successfully completed severalprojects in India including BS-VI up-gradation of IOCL Refineries at Panipat Haldia andBongaigaon BS-VI Fuel Quality Project of HMEL Bhatinda Refinery BS-VI Project at BPCLKochi Refinery Kerosene-Hydro-Desulphurization (KHDS) Unit at Bharat Oman RefineryLimited Bina among numerous other projects.

During the year major overseas projects completed include Engineering Services forInstrument Air Network Upgrade and Oily Water Treatment Plant Upgrade Project ADNOC -UAE FEED for Power Supply re-arrangement of 11 KV distribution network fed fromsubstation-0 by constructing new 132 / 33 /11 KV substation at Ruwais Refinery East (RRE)ADNOC - UAE Upper Zakum/ Artificial Island facilities - Studies/Engineering Packages(package-1) - under Engineering Service Agreement (ESA) UAE and FEED for Hail Oil FieldWater Injection Project (WIP) ADOC Japan.

The major projects completed in the Infrastructure segment include Rejuvenation of 9cities of Odisha under AMRUT Scheme (Atal Mission for Rejuvenation and UrbanTransformation) Establishment of main campus of Central University of Punjab at BhatindaConstruction of NCR Biotech Science Cluster Phase-2 works at Faridabad. For theseprojects EIL has provided its PMC services to the clients. Technical Assistance forEnvironmental Clearance of Mopa Airport Goa and Assessment of completion cost of assetsoccupied by AAI at Kempegowda International Airport at Bengaluru (BIAL) were alsocompleted duringtheyear.

In the Petrochemicals segment your Company completed several important projects whichincludes Propylene Derivative Petrochemical Project (PDPP) of BPCL Kochi Refinery NHTmodification of OMPL Mangalore for MRPL Additional jobs to increase the operationalflexibility of C2C3 Recovery Plant GAIL Vijaipur and Replacement of Regenerator Columnof Gas Sweetening Unit at GAIL Pata Uttar Pradesh. EIL provided its EPCM/PMC servicesfor these projects.

Considerable progress has been made on various petrochemical projects including LEPCMservices for 500 TPD Methanol Project and Associated Facilities for Assam PetrochemicalsLimited Namrup Assam EPCM services for 60 KTPA Polypropylene plant at PataPetrochemical Complex of GAIL Guru Gobind Singh Refinery (GGSR) Polymer Addition Projectof HMEL at Bhatinda Punjab and PMC services for HDPE & PP Units (excluding Powdersection) as well as Lender's Independent Engineer (LIE) for SBI for 1.20 MMTPAPetrochemical project of HMEL at Bhatinda Punjab

Your Company has established a stellar track record in design engineering andexecution of cross-country pipelines for transportation of crude oil refined petroleumproducts natural gas and LPG. During the year EIL successfully completed DFR forNaharkatiya - Barauni Crude Oil Pipeline Phase-3 of OIL and DFR for upgradation ofNumaligarh-Siliguri Product Pipeline of OIL.

Your Company is executing numerous Pipeline projects which are in various stages ofexecution. Some of the major projects under execution are EPCM Services for Crude OilImport Terminal (COIT) at Paradip Paradip - Numaligarh Crude Oil Pipeline (PNCPL) and PMCservices for NRL- Siliguri marketing terminal (SMT) PMC services for 12"/8" x450 km Kochi-Salem LPG Pipeline for KSPPL EPCM services for 10" x 131 km HSDIndia-Bangladesh Friendship Pipeline Project from Siliguri India to Parbatipur Bangladeshamong various others.

Your Company is also leveraging its capabilities to tap significant businessopportunities presented by the fertilizer sector.

As part of strategic investment in the fertilizer sector EIL has picked up 26% equitystake in a JV Company M/s Ramagundam Fertilizers & Chemicals (RFCL) along with NFL andFCIL. RFCL has been formed to pilot the Revival of Ramagundam Fertilizer ProjectTelangana. EIL is executing this project on EPCM mode. Commercial operation of the plantwas achieved on 22.03.2021.

Besides assignment for undertaking Techno-Commercial Viability and Preparation of DPRfor Technical & Food Grade Phosphoric Acid Project at Sikka Unit Jamnagar Gujaratwas secured during the year.

Your Company is making promising in-roads in the Nuclear power sector as well. DetailedEngineering Consultancy and Construction Supervision for setting-up Greenfield NuclearFuel Complex at Rawatbhata Kota Rajasthan has been completed this year.

In the Alternate Fuels space your Company is providing EPCM services for Assam BioRefinery Project of M/s Assam Bio Refinery Pvt. Ltd the first of its kind plant in India.

As part of related diversification strategy of EIL the Board of Directors of yourCompany accorded the approval for acquisition of Bharat Petroleum Corporation Limited(BPCL) shareholding in Numaligarh Refinery Limited (NRL) by a consortium of Oil IndiaLimited (OIL) and Engineers India Limited (EIL) wherein OIL is the consortium leader.Based on this your Company in consortium with Oil India Limited has completed theacquisition of NRL. Post acquisition your Company's equity shareholding in NRL stands at4.37%.

Numaligarh Refinery Limited is the owner of the largest refinery in North-East whichhas strong regional presence in North-East India good proximity to export markets highGross Refining Margins (GRM) and the largest wax unit in country. NRL is also expandingits refinery capacity from current 3 MMTPA to 9 MMTPA. Acquisition of part equity stake inNRL along with the lead investor may prove to be a good opportunity for EIL to enter intothe Refinery segment as a co-owner enhance its presence in hydrocarbon sector inNorth-East having a regular and sustained income stream in future and also for futurecollaborative opportunities with NRL for further value addition in Refinery and inResearch and Development.

EIL takes pride in being a technology-driven organization and being one of the fewengineering consultancy companies that have a dedicated Research and Development Divisionboasting of developing more than 35 commercialized process technologies. During thisfiscal the Company filed 11 new patents and 6 patents filed earlier were granted thisyear. With this the technology portfolio of EIL comprises 35 live patents and 32 patentapplications under consideration.

The COVID-19 situation has underscored the importance of robust IT systems in ensuringbusiness continuity. Your Company continued to make advances in integrating high-tech ITenabled services in its business operations to deliver uninterrupted services withemphasis on speed quality and efficiency.

Keeping employee safety as the top objective EIL successfully transitioned to a"work from home" mode while providing 24*7 support to employees and at the sametime ensuring data privacy and cyber security.

Digitalization of workflow and technology adoption were accelerated both for ourinternal business departments as well as external clients in the current environment of'New Normal'.

Key focus areas in the IT sphere included establishing de- perimeterization withsuitable centralized IT infrastructure allowing flexible access within office premises andoutside remote and automated IT Infrastructure Management without regular humanintervention and zero tolerance features / protocols to ensure data protection.

Sustainability is at the core of EIL's business philosophy. Your Company strives forcompliance to environmental regulations norms and sustainable development goals as aresponsible organization transparent to all its stakeholders by addressing the local andglobal issues. Right from conceptualization to plant commissioning and subsequently thecommercial operation sustainability is inbuilt into our processes and performance.

EIL accords highest priority to Health Safety & Environment (HSE) across itsoperations. Your Company is certified for ISO 45001:2018 which is the latestInternational standard on Occupational Health and Safety. EIL is also maintaining its ISO14001:2015 (Environmental Management system) certification. These HSE Certificates arevalid up to 14.12.2023.

Apart from this your Company has aligned the requirements of Standard OperatingProcedures (SOPs) issued on COVID-19 pandemic in its HSE system for the safety of itsstakeholders. On the operational front Emergency Preparedness and Response Plans (EPRP)are in place across all office locations of EIL to secure safety of its employees andassets.

We at EIL consider Human Resources as our most valuable asset. In today's fast-pacedworld of uncertainty and change it is human resources which enable an organization toachieve its goals and serve all its stakeholders. Your Company is committed towardsproviding the best environment for its employees in order to foster a culture ofpositivity and performance.

As on March 31 2021 EIL has 2814 employees including 2480 professionally qualifiedemployees. Approximately 3.28% of our employees are located outside India functioning ininternational work environments.

EIL's CSR policy aims at creating a sustainable environment through making a positiveimpact on the wider community and the environment. Budgetary allocation for the projectshas been done in line with government guidelines.

The Company's CSR initiatives cover a wide spectrum of activities including art andculture education healthcare drinking water and sanitation rural electrificationwomen empowerment and skills training with special emphasis on the CSR theme announced bythe Government each year and the Aspirational Districts.

During the year EIL supported the construction of additional classrooms in governmentschools of Darrang Assam & Karaikal Puducherry & charitable school at TilharShahjahanpur district Uttar Pradesh.

In the healthcare field EIL conducted general health camps for poor and needycommunity living in and around EIL's areas of operation in various states and 6 camps(Assessment and Distribution) for distribution of assistive aids & appliances to poor& Persons with Disabilities (PWDs).

To address the issue of malnourishment amongst children EIL is supporting 140 ModelAnganwadi Centres by providing basic infrastructure at Dhurbri Assam.

EIL also contributed to the PM CARES Fund to help in the fight against the COVID-19pandemic.

To address the needs for the rapidly evolving industrial scenario and economicchallenges posed by COVID-19 EIL undertook the initiative for Skill Development TrainingProgramme (SDTP) for 902 candidates from backward classes on pan-India basis andcontributed towards operational funding of Skill Development Institute (SDI) BhubaneswarKochi Vishakhapatnam Ahmedabad Raebareli & Guwahati.

EIL has been continuously synergising its vision with the policies of the Govt. ofIndia and creating an ecosystem to promote import substitution and self-reliance underthe aegis of Ministry of Petroleum & Natural Gas. The indigenous contribution in thecapital goods industry catering to the refinery sector was about 10-15% in late seventies/early eighties. With the Government's and EIL's consistent efforts today thiscontribution has risen to an impressive 85-90%. Similarly in the petrochemical and gasprocessing sector the indigenous contribution has grown from almost negligible to closeto 60%.

As part of Make In India and Aatmanirbhar Bharat campaigns various initiatives arebeing taken by EIL like encouragement to indigenous manufacturers to enhance theirproduct portfolio and manufacturing capabilities and capacity in collaboration with theirforeign principals. EIL has also introduced certain new policies in its Vendors EnlistmentSystem for ease of registration of vendors. Under the guidance of MoP&NG EIL hasdeveloped a reliable scalable information system to be used by Oil & Gas companies tohighlight all Capital goods & MRO items procured by OPSUs and provide opportunitiesfor new entrepreneurs and existing manufacturers to invest/expand their manufacturing basein India under the Make In India policy.

During FY 2020-21 your Company won multiple awards and honours at national levelwhich are a testimony to the hard work and dedication of 'Team EIL'.

The major awards include 12th CIDC Vishwakarama Awards 2021 for Best ConstructionProjects for establishment of Main Campus of Central University of Punjab in Bathinda12th CIDC Vishwakarama Awards 2021 for Best Practices in Construction Health Safety &Environment for the MS Block BPCL Kochi Refinery project and FICCI Chemical andPetrochemical Awards 2021 special award in the category of 'Sustainability Award for BestGreen Process'.

Your Company is committed to good Corporate Governance as per the requirements of SEBIRegulations and DPE Guidelines in this regard. Your Company is compliant with SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 and DPE Guidelines onCorporate Governance.

I am indeed thankful to you for your continued support and faith in the Company andlook forward to your valuable feedback and advice. EIL management joins me in wishing youand your family lot of prosperity and good health.

Vartika Shukla

(Chairperson & Managing Director).