Mumbai: Riding high on the pace of growth in the oil and gas, nuclear and urban infrastructure sectors, Tata Projects, a part of the diversified Tata Group, is eyeing up to Rs 16,000 crore worth of revenue this fiscal. The company, one of fastest growing infrastructure companies in the country with an order book of around Rs 50,000 crore currently, hopes to bag another Rs 25,000 crore of contracts in the current financial year, chief operating officer for industrial systems Satyanarayana K said.
He said the company is upbeat about the potential in the oil and gas sector along with the prospects of nuclear power projects picking up as thermal projects loses policy thrust for a litany of reasons including pollution. The company recently bagged an order worth around $321 million from Nuclear Power Corporation to construct the main plant buildings and structures, among others for a 2×700 mw nuclear plant from Gorakhpur-Haryana Nuclear Power Project. Besides, the company has also secured contracts for setting up fast reactor fuel cycle facility at the Kalpakkam, nuclear fuel facility in Kota and an integrated nuclear recycle plant at the BARC in Tarapur.
“With the kind of orders that we are bagging in the nuclear segment, we will continue to focus on this sector. Also, the dependence on thermal power is going down and there is a government thrust on renewable energy including nuclear,” Satyanarayana said. In the oil and gas segment, he said, the company has already bagged a contract from ONGC to execute a lump sum turnkey monoethylene glycol (MEG) regeneration project. This sector is growing very fast and is one of our focus segments. “We are also catering to the overseas market in this segment,” he said. Besides these, Satyanarayana said urban infrastructure including development of roads, ports, metro rails, residential and commercial real estate segments are picking pace, mainly due to government’s thrust and this another segment the company is focusing on and planning to bag large contracts.
“We are constructing pre-fabricated/ pre-cast buildings and high-rises with nearly 4 million sqft under-construction now, including a Rs 2,000 crore project in Andhra under the PM’s housing scheme. We are also seeing huge opportunity in the sewage and water treatment segment. We have also done the Dravyavati river rejuvenation project in Rajasthan,” he added.
The company reported nearly Rs 13,000 crore of revenue for fiscal 2019 and is eyeing up to Rs 16,000 crore revenue for this fiscal, he said.
TCS ‘hungry’ for acquisitions
India’s largest IT services firm Tata Consultancy Services (TCS) is “hungry” for acquisitions and is scouting for assets that can bring in intellectual property (IP) and widen market reach to further accelerate growth. Chief Operating Officer N Ganapathy Subramaniam said TCS had acquired two entities — W12 and BridgePoint Group — last year and both of them have been integrated well with the Mumbai-based firm. “We continue to remain open and hungry for acquisitions. We are in the market looking for the right asset which will add certain amount of IP, market reach or client addition,” he said.
TCS, which had acquired French SAP service provider acquire Alti SA for 75 million euros in 2013, has been focussing on organic growth. TCS, in November last year, acquired W12 Studios — a digital design studio based in London and the business of BridgePoint Group, LLC, a US management consulting firm. “Some of the startups are doing very well, blockchain is an area where lot of firms have come up. There are many who are working on future of financial services, future of cash, future of payments… so we continue to watch closely some of those technologies and startup firms, how their business models are emerging,” he added. Subramaniam asserted that if TCS found the right framework, it “will not hesitate” to make an offer. “It has to make sense in terms of both value and the combined value of TCS and the asset that we are acquiring should really be great,” he signed off.
