Infra Growth Driving Material Handling Industry

December 11, 2010 7:22 am

Tecpro Systems provides turnkey solutions in Bulk Material Handling Systems, Ash Handling Systems, Captive Power Plants and Pollution Control Systems for the Industrial Sectors. Amul Gabrani, Vice–Chairman & Managing Director opines about the material handling business in India and his Company’s growth strategy in an interview with Subhajit Roy.
 
Tecpro Systems Ltd is a leading player in material handling systems. What is your opinion about material handling systems business in India?
The Government of India has significantly increased its spending on infrastructure projects to 7.5% of GDP by way of the Eleventh Five–Year Plan. In line with this estimated investment in infrastructure, the related industries in the power, steel, coal and cement sectors are also projected to witness significant growth. Hence, the raw material supply to these key sectors will substantially increase given the proposed investment for infrastructure projects.
 
Consequently, both private and public sector companies have planned several projects for creation of new capacity and expansion of existing plants. The process of commissioning of these projects is expected to create additional demand for machinery. The continued emphasis on the creation of infrastructure and planned funding of projects augur well for the industry and ensure a steady stream of order inflows for the capital goods companies. According to industry estimates, the material handling for power plants is estimated to be Rs. 18 billion market.
 
As far as we are concern, our current order book stands at about Rs. 5,000 crore which is 3.38 times of our FY 2010 revenues. This provides good revenue visibility for the future.
 
Which are the segments your products are catering for? And which is that one industry segment you see maximum opportunities for your business?
We offer a comprehensive range of services which includes the design, manufacture & sale of material, coal and ash handling equipment and undertake turnkey contracts in both material and ash handling. Our products cater to the needs of the core industries such as power, cement, sugar, port, mining, fertilizers and iron & steel.
 
The maximum opportunity for us arises from the Power Sector. Coal is likely to remain India’s most important energy source for Power until 2031–32 and the Power sector is therefore expected to remain a key market for material handling and ash handling sectors over the next two decades. The high power deficit in the country, coupled with the low per capita consumption of electricity, has led to the power generation targets being bigger than ever, translating into a huge opportunity for BoP players. The 75,200 MW of thermal power capacity planned during the Twelfth Plan period alone throws up a potential BoP opportunity of around Rs. 1,35,360 crore and Tecpro is well positioned to capitalize on this exponential opportunity.
 

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