EIL poised for growth in energy sector
EIL Chairman and Managing Director Mukesh Rohatgi spoke to Gaurav Choudhury on a range of issues.business Updated: Nov 10, 2008 01:16 IST
Engineers India Limited (EIL) was established in 1965 mainly to indigenise design, engineering and project management capabilities in the petroleum sector. In addition to petroleum refining, with which it started initially, it has over the period of 43 years diversified and excelled in various other fields and has been responsible for implementing over 400 major projects. EIL Chairman and Managing Director Mukesh Rohatgi spoke to Gaurav Choudhury on a range of issues. Excerpts:
What makes EIL a leading consultancy and contracting firm of Asia?
EIL started in 1965 with a handful of people and a share capital of Rs 25 lakh. It is a measure of the faith reposed in the organisation and the commitment of its founding management and small work-force that it has evolved into a world-class organisation with a paid-up capital of Rs 56 crore, mainly through issue of bonus shares. EIL has earned recognition for jobs executed not only in India but also in West Asia, North Africa, Europe and South East Asia and the appreciation for the quality of service is reflected in clients coming back to EIL repeatedly for implementing their projects.
How would you rate EIL’s recent performance?
EIL’s performance has consistently improved over the years. The recent years have been particularly good with the highest ever profit of Rs 194 crore in 2007-08, recording a growth of 36 per cent over the previous year. The company is presently executing projects in India and abroad worth over Rs 1,20,000 crore in the hydrocarbon sector, non-ferrous metals and infrastructure.
In light of the present global economic scenario and in India and increasing energy demands worldwide what is the strategy for EIL’s future growth?
Inspite of the recent turmoil in the international financial market, we do not expect any reduction in growth of sectors in which EIL operates.
The world’s energy requirements are growing. India’s major focus is to enhance energy security for the country and improve infrastructure. We foresee attractive business opportunities for EIL to build up plant capacities, revamp existing units and improve infrastructure, besides opportunities in non-ferrous metallurgical plants, bio-fuels, clean coal technology and sustainable development. To meet the challenges, our focus has been on initiatives to increase engagement in the firm’s core strength areas; entering future boom areas and strategic/new viable areas; improvement in processes and giving priority to training and recruitment.
Being a knowledge based company what are EIL’s initiatives in technological development?
We continue to lay emphasis on the role of research in consolidating existing capabilities, developing new technologies, processes and hardware and enhancing our portfolio of special technology-related services. It has played a pioneering role in development of indigenous plant and manufacturing capability successfully raising the indigenous equipment content in process plants from 10 per cent in the ’60s to over 90 per cent now.