Sunil Hitech seeks partners to build power plants

April 2nd, 2008 - 11:34 am ICT by admin  


Chennai, April 2 (IANS) Mumbai-based fabrication and erection contracting major Sunil Hitech Engineers Ltd is seeking partners to bid for power plant projects on balance of plant (BOP) basis. In the scheme, the promoters contract out all the construction work of power plants except the work of setting up boiler and turbine generator.

Speaking to IANS, Vijay Gutte, director (finance) of Sunil Hitech, said: “We are talking with several companies including some Chinese so that we can bid for power projects on balance of plant basis.

“Power project contracts could be broadly divided into 14 packages: fuel piping, bunker and others. We have expertise in 12 activities and now we are seeking partners for executing chimneys and cooling tower packages.”

With such partnerships, Sunil Hitech can bid for power project contracts upwards of Rs.3 billion.

The firm has bagged orders worth around Rs.900 million from National Thermal Power Corp (NTPC) for its proposed 2×500 MW power project at Ennore in Chennai and Rs.100 million contract for structural works at Bellary for JSW Steel.

The company now has orders worth Rs.8.23 billion to be executed over the next three years.

Asked about the order, Gutte said: “Nearly 70 percent will be related to power plants, 10 percent each for steel and erection of transmission and distribution lines for power and the balance for overhauling and maintenance.”

According to him, the company would close the 2007-08 fiscal with a top-line of Rs.2.80 billion and a bottom-line of Rs.210 million.

“The target turnover for 2008-09 is Rs.4.5 billion,” he added.

The company had recently augmented its financial resources by raising Rs.810 million from qualified institutional players, taking its equity base to Rs.120.28 million.

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