A brief thread on the making of KEC
"KEC on its way of being a Complete Infrastructure EPC Player"
KEC (originally known as Kamini Engineering Corp.), was started in 1940. Further it was acquired by RPG group in 1980 from the Kamini Family due to acute problem.
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"KEC on its way of being a Complete Infrastructure EPC Player"
KEC (originally known as Kamini Engineering Corp.), was started in 1940. Further it was acquired by RPG group in 1980 from the Kamini Family due to acute problem.
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About KEC:
KEC is engaged in the business of Engineering, Procurement and Construction business relating to infra products, projects and systems & related activities for power transmission, distribution, railway and other EPC businesses.
Revenue Share of KEC business:
KEC is engaged in the business of Engineering, Procurement and Construction business relating to infra products, projects and systems & related activities for power transmission, distribution, railway and other EPC businesses.
Revenue Share of KEC business:
With 8 lines of business, KEC is already present in verticals such as
- Business Power
- Transmission & distribution
- Railways
- Civil
- Urban Infrastructure
- Solar
- Smart Infra
- Cable and the recent addition
- Oil & gas pipeline business.
- Business Power
- Transmission & distribution
- Railways
- Civil
- Urban Infrastructure
- Solar
- Smart Infra
- Cable and the recent addition
- Oil & gas pipeline business.
• Co. is present in 105 countries & hold strong position compare to its traditional competitor like Kalpataru Power, Tata Projects, L&T.
Since last 5 years co. has taken affirmative steps from diversification of its core business of (Transmission & Distribution).
Since last 5 years co. has taken affirmative steps from diversification of its core business of (Transmission & Distribution).
T&D Division:
• Company has diverse range of customer in T&D business.
• Total manufacturing capacity of T&D segment is 3,62,000 MTPA.
• T&D vertical division has delivered 19 projects across India and the SAARC region in FY20.
• Company has diverse range of customer in T&D business.
• Total manufacturing capacity of T&D segment is 3,62,000 MTPA.
• T&D vertical division has delivered 19 projects across India and the SAARC region in FY20.
• Overseas market has dominant share of KEC’s T&D division contributing around 70% of revenue.
• Over 5 years KEC has reduced the share of revenue from 80% to 55% as of now.
• Over 5 years KEC has reduced the share of revenue from 80% to 55% as of now.
Acquisition of Spur Infra:
“Recently KEC has acquired Spur Infra Pvt. Ltd, a 100cr EPC firm engage in setting up cross country oil & gas pipeline & city gas distribution network.”
With order book of 600cr co., has already added client such as IOCL, GAIL, IHB & Indraprasth Gas.
“Recently KEC has acquired Spur Infra Pvt. Ltd, a 100cr EPC firm engage in setting up cross country oil & gas pipeline & city gas distribution network.”
With order book of 600cr co., has already added client such as IOCL, GAIL, IHB & Indraprasth Gas.
“Mgmt aims this segment to touch 1,000 cr of turnover in couple of years.”
Biggest growth driver for this segment is the recent budgetary allocation of government of natural gas from 6% to 15%.
Biggest growth driver for this segment is the recent budgetary allocation of government of natural gas from 6% to 15%.
Railways:
• Railways segment over last 5 years has grew at a CAGR of 75% from last 5 years reaching to 3400cr which was 210cr 5 years back.
• KEC is one of the largest contributor to Indian Railways 100% Electrification Mission, with KEC contribution of more than 30%.
• Railways segment over last 5 years has grew at a CAGR of 75% from last 5 years reaching to 3400cr which was 210cr 5 years back.
• KEC is one of the largest contributor to Indian Railways 100% Electrification Mission, with KEC contribution of more than 30%.
Civil Business:
• Civil business is currently one of highest growth driver for KEc which was launched 5 years ago.
• Till now, KEC has executed over 30 projects in last 5 years.
• In Fy21 KEC has secured 2 new orders from Chennai Metro Rail & Kochi Metro Rail.
• Civil business is currently one of highest growth driver for KEc which was launched 5 years ago.
• Till now, KEC has executed over 30 projects in last 5 years.
• In Fy21 KEC has secured 2 new orders from Chennai Metro Rail & Kochi Metro Rail.
In total KEC now has 7 RRRT with a combined value of 4,500cr.
Expansion:
Company’s recent acquisition in Dubai in February 2020 was commissioned in FY21. With capacity of 50,000 MTPA plant serves high growth potential market such as Middle East and another region.
Expansion:
Company’s recent acquisition in Dubai in February 2020 was commissioned in FY21. With capacity of 50,000 MTPA plant serves high growth potential market such as Middle East and another region.
Financials:
• Over last few years KEC has been focusing more on increasing the profit, rather than simply filling the order book, resulted in increased in PAT Margins over last 5 years.
• Over last few years KEC has been focusing more on increasing the profit, rather than simply filling the order book, resulted in increased in PAT Margins over last 5 years.
Order book:
• Co. is currently sitting at ATH order book of 30,000cr to be delivered in 18-24 months.
• During FY21, KEC secured 3,700cr of new orders (including large order in Oman & Mozambique).
• Co. is currently sitting at ATH order book of 30,000cr to be delivered in 18-24 months.
• During FY21, KEC secured 3,700cr of new orders (including large order in Oman & Mozambique).
With such strong order book, increasing margin efficiency & business diversification, KEC aims to grow consistently in the coming years.
(Source of Thread: Recent Interview from Business India Magazine)
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(Source of Thread: Recent Interview from Business India Magazine)
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