Domestic power transmission segment is expected to attract investments worth Rs 3.4 trn between 2021-2025.

- Amit Uplenchwa

Director, Group Strategy & Subsidiaries Operation, Kalpataru Power Transmission

Please share your views on how the power and infrastructure sector is expected to drive the country to become a USD 5 trillion economy?

The availability of world class infrastructure is pre-condition to rapid economic development and the Indian Government has attached great importance to growth and development of physical infrastructure segments such as roads, ports, airports, railways, power and the like. Simultaneously, similar focus has been given to strengthen social infrastructure including water supply, sanitation, education and health, which has a direct impact on the quality of life.

Infrastructure creation also contributes to employment creation, which further boosts the economy through demand generation.

The government has given a massive push to the infrastructure sector with allocation of around USD 1.4 trillion towards the National Infrastructure Pipeline for 2019-2025. Additionally, policy reforms through investment schemes, such as permission of 100% FDI under the automatic route in a wide variety of sectors will improve the ease of business and increase sources of financing for infrastructure.

Hence, infrastructure development is the cornerstone of the Indian economy and will play an important role in accelerating India's competitiveness towards achieving the USD 5 trillion economy goal by 2025.

How does the company evaluate the opportunities for players like KPTL in bringing privatisation in the distribution and transmission space?

The past decade has seen major developments in the Indian power sector, like reforms to facilitate the entry of private sector players across the generation, transmission and distribution segments along with permitting 100% FDI. Further, with the advent of tariff-based competitive bidding, public and private sector players are operating at a level-playing field. These measures have encouraged private players to enter the fray and contribute meaningfully to the sector.

The domestic power transmission segment is expected to attract investments worth Rs 3.4 trillion over the period 2021-2025. In line with the shift in policy focus from conventional to renewable sources, the focus of the transmission segment too is towards evacuation of power generated by renewable energy projects. Moreover, cross-border transmission lines, rail electrification and rising penetration of electric vehicles will also help drive the growth of transmission infrastructure in India.

KPTL has strong track record and expertise across the entire project cycle from manufacturing, construction, funding, operating and monetising transmission assets and is well positioned to seize the massive potential in the burgeoning power transmission and distribution sector. 

Can you tell us about the opportunities for players like KPTL in the railway infrastructure sector?

The Railways sector is highly responsible for propelling India's overall development and enjoys intense focus from the Government. As per the Vision 2024 document of the Indian Railways, the Government is expected to invest around INR 2.19 lakh crore during the period 2021-2025.

We have a very positive outlook for the Railway sector, as the Government has set out a clear plan for 100% railway electrification by end of 2023, upgradation of existing tracks to reduce travel time, enhancement of signalling and telecom infrastructure, station redevelopment and many other projects. Moreover, projects like High-Speed Rail (HSR), Regional Rapid Transport System and Metro Rail projects in various cities are the top priority of the Government.

The overall Rail business landscape offers a huge opportunity got KPTL given that we are amongst the leading players in overhead electrification, railway track laying, signalling & telecommunication (S&T), power systems and civil works associated with railway networks.

What is your take on the growth prospects of the Oil and Gas Pipeline Infrastructure in India?

India has a relatively lesser developed oil & gas pipeline infrastructure and there is a requirement to develop massive infrastructure to transport natural gas from offshore production sites to consumption centres. This includes new processing platforms, offshore pipelines, cross-country pipelines and distribution pipelines.

The government is expected to invest around USD 60 billion, till 2024, to establish infrastructure for natural gas consumption in the country and increase its share in the energy mix by up to 15%, by 2030. National Gas Grid has been envisioned to ensure adequate availability and an equitable distribution of LNG and India has over 16,000 km of pipeline which will require significant extension to build the 33,000 km 'National Gas Grid' pipeline. 

KPTL, with its proven project management capabilities, well-experienced team and credentials of successful execution of cross-country pipeline projects, is best placed to leverage the opportunities arising in the Indian Oil & Gas sector.

Can you tell us about KPTL's plans for manufacturing galvanised steel structures?

KPTL has one of the largest installed transmission tower fabrication capacity of around 2.4 lakh MT spread across two plants in India. Our plants have state-of-art technology with fully integrated planning system. Apart from transmission towers, we are also catering to the needs to overhead electrical structures for Railways. Both of our plants have global certifications and cater to needs of domestic as well as international clients. We will continue to leverage our low cost base & efficient procurement capabilities to acquire new clients across the globe.

How has the pandemic impacted execution of projects across the sectors? Do you think the worst is over now?

During the first wave of pandemic, most of the activities at our plants and most of the construction sites were affected due to restrictions and shortage of labour. However, we were swift to implement our business continuity plans with the help of our technology backed systems to bring back our operations to normalcy in a span of few months. As of today, all of our sites and plants are running at productivity similar to pre Covid levels.

We have tackled Covid-19 with 2 main objectives: First and foremost is to ensure health and safety of our employees and Second, is to deliver exceptional services to customers through the crisis.

You are present in over 60 countries. How do you see the growth opportunities in India vis a vis the international markets?

As indicated by the reforms implemented by the Government, there is immense push on Infrastructure development in India. Government's plans under NIP & NMP, national gas grid, rail electrification and metro projects, renewable energy auger well for the growth opportunity of the sector.

However, as a company, we have also been working towards de-risking our business through diversification. Both - through expanding into newer businesses as well as newer territories.

Our recent acquisitions in Sweden and Brazil were to drive this strategic tenet.

This positions KPTL well to leverage the growth momentum of both - the domestic as well as international markets.

What is your vision for KPTL by 2025 and what is the CAGR growth expected by then?

Under the dynamic environment we live in, it's difficult to provide a hard growth number for the next 5 years. However, at KPTL we are focused on strengthening our core EPC business in targeted verticals with a clear goal to be amongst the top EPC companies globally. KPTL's performance is built on a solid foundation of a excellent execution capabilities, a strong balance sheet and trusted brand.

While we remain focused on our core EPC business, we are adapting organic and inorganic growth strategies to take our major business verticals to emerging and high potential markets across the world.

We are innovating more than ever before and are investing in our people, technology and operations to develop solutions that take advantage of emerging trends in the industry. Our well diversified consolidated order book provides good visibility for growth in years ahead.

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