— Maneesh Mishra, IA Head - Energy & Civil, Citec Group
Citec is a multi-discipline
engineering and consulting
services company providing
solutions in energy, process
engineering as well as
services. Maneesh Mishra
speaks to Lalitha Rao
evolving trends in the
Indian energy sector and
Citec's role in India.
What is your broad outlook on
the Indian energy sector?
All depends on the growth we
have in the energy sector. We are
projecting a growth rate of
around 8 per cent of GDP. In
terms of power requirement, this
translates into 300-350 GW by
next five years. Currently, the
demand is sitting at 120 GW.
That essentially means we have
to grow around 25 GW per year
on installed capacity, so that is
like five times what we are currently
So there is a lot of pressure on
development of power sector
in India. This is coming mainly
from the growth we are seeing
in manufacturing and and a lot
of grid connectivity and so on.
So definitely there is a peak
requirement, a big increase
Do you suggest any reform in
Yes, mainly on the fuel side;
reform in coal policy, basically
in mining, there is a requirement
for a captive mining policy.
A mining policy has to be
formed as there are lots of gaps
and issues like political, security
etc. which is restricting mining
companies to mine in
remote areas and on the gap
side more formation of clear
policies about the reserves
which are found in India, about
regulations of the reserves, private
companies, policy decisions
around these areas on
coal, gas and the demand side
There is need for an action
plan for high efficiency in policies
on the consumer side mainly
what the Bureau of Energy
Efficiency is doing. So these
kind of measures are required to
catch up with the demand we
Energy being the primary focus
for Citec, can you summarise
your company’s activities in
Citec is an engineering consulting
company which provides
consulting services and information
management for thermal
power plants that include
gas-based, coal-based, biofuel,
biomass, and so on. We also
work on the solar side to some
extent. We provide a complete
solution in terms of basic and
detailed engineering in the
power sector where there is a lot
of potential which is projected
globally. Our other verticals are
process and manufacturing,
mainly dealing with oil and gas
and refineries, and healthcare;
though our main focus is on
process and manufacturing and
To sum up, Citec is a big
Finnish company in Europe with
presence in major countries like
Germany, France, Sweden, Russia.
So this area of energy being
in focus, in the next four to five
years scenario, the sector is
expected to have the maximum
increase in turnover. Our maximum
increase as well as the volume
of business will come from
the energy sector.
In India, Citec has a target to
double its turnover by 2014.
India is the focus of our growth.
What are the evolving trends in
designing power projects in the
thermal and other sectors
(manufacturing and oil & gas)?
The trends, basically in power
plants, is that everything is moving
towards efficiency. Like all
other power plants they are moving
towards high efficiency
power plants i.e. thermal moving
from subcritical to supercritical.
Typically, subcritical will be operating
at 30-35 per cent efficiency
from 20-25 per cent and supercritical
from 45-46 per cent. There
are also a lot of power plants coming
up in combined cycle area
So these are the trends—moving
to supercritical, combined
cycle, IGCC (integrated gasification
combined cycle) and
renewables and, as we mentioned,
integration of renewables
with existing conventional
power plants—that are emerging
and India is not far behind, I
would say. So India has lot of
activities in supercritical arena,
not much in combined cycle
because of the gas issues. But,
lot of activities in solar.
Slowly, also gearing up, as the
norms were emissioned they are
getting more stricter, and the way
regulation is tightening a lot of
activities will happen around
emission production. People have
started talking about integrated
gasification and combined cycle,
carbon capture and sequestration—
these are the new technologies
which are working in the
West and now catching on in
India because of strict norms on
emissions. We have moved from
moderate efficiency to high efficiency,
reducing emissions. So
this is the trend moving in India.
What are the opportunities
Citec is looking forward from
the Indian energy sector?
Which vertical do you see the
Other than thermal, we have
lot of synergies between various
verticals, what we are
working on, like process and
manufacturing. We have similar
kind of resource base
required in terms of engineering.
In India, our focus is mainly
on energy, process manufacturing
and engine power
because there is a lot of potential
in these areas.
What are Citec's plans for the
renewable energy sector?
Citec is working on renewable
energy, particularly in Europe,
and has started discussions with
various companies in India, mainly
in biomass. In biomass, we work
very closely with Metso Wärtsilä.
We have done heaps of their projects
in Europe. And now we are in
talks with various companies here
for the same technology, in biomass.
We have done a few projects
and will be soon getting into more
projects in biomass.
On the solar side, we have skill
sets in power supply. So we are
talking to various solar OEMs
for associating as a complete
engineering solutions company
which includes the solar package
from the OEMs.
Can you tell us about Citec’s
In India, we are giving complete
EPCM for a few projects in the
range of 3 to 10 MW. We are providing
helping evaluate different solutions
for various components
and also providing site support
apart from engineering.
We have done onshore oil and
gas for a UAE-based EPC company.
On the refining side, we
have done basic engineering
and detail engineering, which
included piping, civil, electrical,
mechanical etc. So it's a fair bit
of work with around 50-60 engineers
working on this project for
nine months, which is almost
finished. This is being done from
our Chennai office. We have
offices in Bengaluru, Chennai
What are the latest developments
since the merger of
Sentica Partners with Citec in
Yes. Lots of development, mainly
the growth targets we have.
We have to double up globally
and in India we have to go more
than three times. So these are
the big challenging growth targets
We plan to focus on developing
local markets and then integrate
engineering and information
management. We have two companies—
one is Citec Information
Management and the other is
Citec Engineering. From April
2012, these two companies will be
merged—the Bengaluru unit is
the information unit and the
Mumbai and Chennai engineering
units will form one entity, one
of the key focus areas for synergising
operation in India.
What is your order book and
revenue mix of your business?
To give you a broad figure, last
year we had a business of
40 crore of which bulk
of 70 per cent came from the
power sector. In 2012, we have a
58 crore out of which
70 per cent is coming from the
What would be key growth drivers
for Citec's power related
business in India?
The key drivers are a global outlook.
Citec in India is a company
with a global outlook with a
presence in Europe and Middle
East. So, all our systems are
excellent standards like quality
system, project management
system with leading age technology–
latest calculations, modelling
tools, softwares etc.
Then we have highly skilled
resources and we are working
on various international projects.
Citec has very good understanding
of power markets outside—
both Indian and global
power markets. We provide
EPCM solutions and work on
global customers, designated
as key customers like Siemens
and Alstom. So whether in
Europe or France or Germany
or in India, we tie up long-time
framework agreements with
these customers, which are
valid globally. So these are the
key growth drivers in India.
What are Citec's future plans?
We have to grow three times by
2014 and we have to consolidate
on EPCM. We have to capture
more market share, move into
biomass. As we grow, we have to
induct more skilled people.
Presently, we have 375 people
and with three times growth
expected, we have to go two and-
a-half times the present
strength. These are the key
growth areas we foresee in the
next three to four years.