The energy sector is expected to account for 35% of revenues for Tata Projects, the engineering, procurement, and construction (EPC) arm of the Tata Group, in the next two to three years, up from 25% at the moment. To this end, the company intends to expand internationally, boost business from group companies, and build its operations in the oil and gas, power, metal, and other industries.
“As a business unit, energy contributes about 25% to our revenues, and each of them, like oil and gas, metal, transmission, and distribution, would become equally placed within that,” stated Rajiv Menon, Tata Projects’ chief operating officer for energy and industrial. Advanced semiconductors are another product of Tata Projects. On revenue of Rs 5,412 crore, the company reported a profit after tax (PAT) of Rs 120 crore for FY24.
According to Rajiv Menon, having a mix of business from the group and outside companies, as well as a mix of EPC, alternative contracting, transmission and distribution, power, metals, oil and gas, and other industries, is all part of the company’s strategy. The company anticipates growth of 10% on a compound annual growth rate basis, he said.
Menon continued, saying that the organization wants to grow the group companies’ portion of their operations. Tata Enterprises have a five percent stake in the company’s operations. For transmission and distribution projects, Tata Projects collaborates with Tata Power, and for certain steel operations, it works with Tata Steel. It is currently seeking to enter into semiconductor business partnerships with group companies.
He stated, “We are finishing up a few projects in the oil and gas segment in Abu Dhabi and we are also evaluating a few other geographies to see how we position. We’ve performed admirably in terms of international distribution and broadcast. We are attempting to apply the knowledge we have gained to the countries of the Saarc, Africa, and the Middle East (West Asia), he continued.
A combination of renewable and thermal energy sources is required. For renewable energy to be a dependable source, it must become continuously available. Until we go to a renewable method, both will coexist, but it won’t happen instantly,” he stated.
Companies like Larsen & Toubro, Sterling & Wilson, Bharat Heavy Electricals, and others are competitors of Tata Projects. According to consulting firm Bluewave Consulting & Research, the power EPC market is expected to reach $45.36 billion by 2029 at a compound annual growth rate (CAGR) of 21.9%.
