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Sterling & Wilson integrates MEP business, eyes Rs 3000 cr revenue

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Over the past 5 years, Sterling and Wilson has shown exceptional growth; with operations all over the globe, as well as an expansion in its range of services, the company’s turnover has shown an extremely positive growth. From a turnover of Rs 1,760 crore in 2012, Sterling and Wilson group crossed a turnover of Rs 6,000 crore and is likely to exceed Rs 10,000 crore by 2020. On the sidelines of the inaugural event, T.P. Prakasan, COO – MEP Business, Sterling and Wilson speaks to Shashi Kumar Sharma and gives an overview of the company’s growing footprint in India,
with a predicted Rs 3,000 crore for the MEP division by 2020.

What was the thought process behind the integration of the MEP business?
As the Government of India spearheading its focus on infrastructure development, dominant players such as Sterling and Wilson are keeping in line with the industry’s demand. The company is currently contributing to more than 25 per cent of the passive infrastructure space in India. Commercial and industrial projects across the country have also witnessed accelerated demand with the integrated MEP services market showing immense potential. In this regard, Sterling and Wilson realised the opportunity early and today, it has evolved as India’s leading MEP contracting company, having integrated its various offerings and services under a single MEP entity.

As MEP continues to remain at the core of Sterling and Wilson’s future growth, Electrical, HVAC, Firefighting and Plumbing to IBMS – all five services been successfully incorporated in to a single business unit which today has an order intake of about Rs 1,600 crore. The integration has enabled the company for multiple services to be streamlined for a seamless and unified direct project delivery system with a lean organisational structure operating at lower overheads thus, making Sterling and Wilson a very competitive and strong leader in the market.

What is your take on the rising demand for infrastructure development in India?
Over the next 20 years, the infrastructure sector in India is expected to see close to Rs 65,000 crore in developments.

As the EPC and MEP industries witness increased demand, engineering and construction services will see a subsequent demand for greater and more efficient management. This will significantly increase market growth opportunities for leading EPC players such as Sterling and Wilson.

What are the major growth drivers for the MEP business?
Commercial and industrial projects across India have witnessed accelerated demand with the integrated MEP services market showing immense potential. In this regard, Sterling and Wilson realised the opportunity early and today, it has evolved as India’s leading MEP contracting company, having integrated its various offerings and services under a single MEP entity.

Coupled with the integration, the five newly introduced services- Industrial Fire and Safety, Flue-gas desulfurization, Process Control and Instrumentation, Industrial Clean Room EPC and IBMS Special Projects (smart cities and defence segments) are expected to take the company to soaring heights, with a predicted Rs 3,000 crore for the MEP division by 2020.

What is the company’s business plans post integration of MEP business?
The integration of the MEP business will also pave the way for simultaneous, seamless services and timely project delivery for clients as well as reduced costs, time and coordination efforts for internal stakeholders.

Furthermore, the introduction of five new services and with one of the largest teams of engineers in place, Sterling and Wilson will create greater expansion, including a market share of 15 per cent and penetration in to foreign geographies such as Bangladesh, Bhutan and Nepal and beyond.

Coupled with the integration, the five newly introduced services- Industrial Fire and Safety, Flue-gas desulfurization, Process Control and Instrumentation, Industrial Clean Room EPC and IBMS Special Projects (smart cities and defence segments) are expected to take the company to soaring heights, with a predicted Rs 3,000 crore for the MEP division by 2020.
T.P. Prakasan, COO – MEP Business,
Sterling and Wilson

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