Middle East, Africa will be growth drivers

KEC International Ltd, India's leading power transmission EPC company, achieved a major milestone with its order book position crossing Rs 4,000 crore. The order book of the RPG Group enterprise touched Rs 4,200 crore, excluding L1 positions, as of March 31, 2008, compared with Rs 3,000 crore last year.
Speaking to Projectmonitor, Ramesh Chandak, Managing Director & CEO, KEC International Ltd, said that overseas orders played a dominant role accounting for Rs 2,950 crore or 70 per cent of the order book position. "Middle East, Central Asia and Africa will be our thrust areas in the international market," Chandak said. Elaborating on the demand drivers, he added that rising crude oil prices had inspired a significant increase in capital expenditure in the Middle East region. In several African countries too, multilateral funding has prompted widespread infrastructure upgrade programmes, Chandak noted.
The company began the current fiscal year on an encouraging note with a Rs 482-crore order from Saudi Electric Company for a 380kV transmission line order to be executed with Saudi Arabia-based Al Sharif Group, on turnkey basis.
KEC International is expecting a 20-25 per cent increase in fresh order inflow during 2008-09. "We also expect much better business from national utility Power Grid Corporation of India Ltd during the current year as compared with 2006-07," Chandak said.
Optimistic of prospects in the power sector, Chandak asserted that rural electrification and power distribution would form key areas for the company's diversification programme. Commenting on India's plans to build large power transmission lines through private sector participation, he asserted, "We would be very interested in bidding for these projects and shape up as an independent power transmission company."