Currently, we have a well-diversified & strong order book and L1 of over Rs 30,000 cr

- Vimal Kejriwal

MD & CEO, KEC International

How is KEC International contributing to the progress of national infrastructure projects in the country?

Over the past seven decades, KEC International is actively contributing towards the development of the nation by building infrastructure for the India of tomorrow. We continue to deliver projects in key infrastructure sectors such as power transmission & distribution (T&D), railways, civil, urban infrastructure, solar, smart cities, oil & gas pipelines and cables. Our strong project management capabilities, quest for world-class quality, 'safety-first' attitude and a continued focus on ahead of schedule completion makes us one of the most respected EPC players globally.

In T&D, we are building complex transmission lines and substations for clients that include PGCIL, state utilities and private players. Over the years, we have built power infrastructure projects in tough, inhospitable terrains and under extreme weather conditions, such as India's highest substations at Kargil-Drass-Khalsti-Leh at an altitude of more than 11,500 ft, 765 kV Gas Insulated Substation spread over nine levels in the hilly terrains of Uttarakhand, 765 kV, 400 kV transmission lines for Khargone Transmission Limited, part of Western Region Strengthening Scheme, and 500 kV Thai Lao Border-Ubon Ratchthani River Crossing Transmission Line, Thailand, amongst several other iconic projects. We have also recently secured an order to build India's first 765 kV Digital GIS Substation from PGCIL.

As part of our railway business, which has delivered a CAGR of 60 per cent in the last six years, we are building critical infrastructure to connect different parts of India through railway lines and associated infrastructure. We are one of the largest contributors to Indian Railways Electrification Mission and have electrified 23 per cent of the Indian Railway network in FY22. In the conventional space, we are also delivering projects that involve track laying and linking for new railway lines, doubling and tripling of tracks, signalling and telecommunication and construction of railway stations, platforms, bridges, depots, etc, in addition to speed upgradation and port connectivity projects.

Our civil business focusses on EPC for industrial factories and process plants, residential buildings, public spaces, water pipelines and water treatment plants, defence, data centres and warehouses. One of our key growth drivers, the business has grown over seven times in the last five years and has added over 20 new projects and 10 new clients in FY22. We are currently delivering world-class construction for over 40 projects across sectors in India, including six large water pipeline projects, part of Government of India's Jal Jeevan Mission, comprising over 1,700 km of water pipelines and more than 330 elevated storage reservoirs, to touch lives of around 3.4 lakh households across rural India. We have also forayed into the building public spaces for citizens and are constructing an Airport in Tamil Nadu and a High Court Complex in Jammu and Kashmir.

Our urban infrastructure business focusses on EPC for viaducts, stations, track works and electrification and power supply systems for Metro Rail and Regional Rapid Transit System (RRTS) segments, with an aim to make intercity travel more convenient and ease lives of thousands of commuters. We are constructing viaducts and stations for several Metro and RRTS projects across India, in New Delhi, Kochi and Chennai, for clients such as Delhi Metro Rail Corporation, Kochi Metro Rail Corporation and Chennai Metro Rail Limited. We are also delivering the Delhi-Meerut RRTS project, India's first RRTS for National Capital Region. As a technology player, we are executing complex tech-intensive projects in Metro electrification - OHE as well as Third Rail, power supply systems and track laying for Metro Rail operators in New Delhi, Kochi, Kolkata and Patna.Very recently, Prime Minister Narendra Modi inaugurated our first Metro Rail project, the Phase-I Extension Kochi Metro. 

In FY21, we acquired Spur Infrastructure Private Limited, an Indian EPC company engaged in setting up of cross-country oil and gas pipelines to accelerate the growth of our oil and gas pipelines business. We are presently executing over 20 projects for marquee customers and contributing towards enhancing the nation's network of cross-country oil and gas pipelines.

Looking at the Government push towards infra projects in all sectors, what is the future outlook of your company?

With a favourable macroeconomic scenario in terms of large capex investments by government and private players, in addition to the recent softening of commodity prices and significant improvement in the Covid-19 scenario globally, the future looks promising for the company. Currently, we have a well-diversified and strong order book and L1 of over Rs 30,000 crore, which is the highest in KEC's history. Additionally, our tenders under evaluation and in pipeline stands at over Rs 1,10,000 crore, through which we expect to significantly boost our order intake in the coming months. While we expect most of our businesses to deliver growth going forward, the following three businesses will be the key growth drivers for the company:

Civil: Government spending across segments, especially in segments such as urban infrastructure and water pipelines continues to lead the way for growth of the civil business. We are also witnessing a gradual revival in the private capex, which is expected to give rise to significant opportunities in the industrial and residential sector. With consistent order inflows across segments and an all-time high order book + L1 of over Rs 10,000 crore, we are confident that this business will be the key growth driver for us going ahead.

Railways: The railways tender pipeline continues to remain robust across conventional, technologically enabled/emerging areas, as well as international opportunities. We continue to focus on opportunities in conventional OHE as well as orders in new areas of speed upgradation, TCAS (Train Collision Avoidance System) under 'Kavach' technology and OHE and track laying for Metro Rail. With a continued thrust on execution, strong tender pipeline and an order book + L1 of over Rs 6,500 crore, the railway business will continue to drive growth for the company.

Transmission and Distribution: The overall tender pipeline in T&D is strong across both international and domestic markets. With the significant upcoming opportunities of Green Energy Corridor Phase II and Leh Ladakh HVDC lines, we are witnessing a gradual uptick in the Domestic T&D market which has been sluggish for the past couple of years. Additionally, we are also seeing opportunities in states such as Karnataka, Rajasthan, West Bengal, Tamil Nadu and Bihar. Internationally, we are seeing increased traction across regions, especially in the Middle East and the Americas.

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