Private sector now accounts from one-fifth of EIL’s business

BL New Delhi Bureau Updated - September 11, 2024 at 09:10 PM.

The company re-entered Algeria and Kuwait and is bullish on business prospects with the UAE

Vartika Shukla, Chairman of State-run Engineers India (EIL), stated on Wednesday that the engineering and project management consultancy (PMC) firm has nearly doubled its private sector business, leveraging its six decades of experience in India and abroad.

The leading project management consultancy (PMC) in the oil and gas sector has diversified its portfolio across infrastructure, crude oil storage, fertilisers, ports, LNG, coal gasification, defence, renewables and clean energy in the past few years aiding the Navratna company to enhance revenue streams.

“In terms of order inflow, we were working at 10-12 per cent business in-flow from private sector. Today, we have 20 per cent business. With the volume of work, the business in-flow that we have is substantial in terms of absolute value. In FY21, from the private sector, we had an inflow of around ₹233 crore and in FY24, we had an inflow of about ₹650 crore,” Shukla told reporters.

As of March 31, 2024, EIL’s order book stood at ₹7,823 crore. In the current fiscal year, the CPSU has already secured new business worth ₹4,681 crore. As on August 31, its order book has expanded to around ₹11,350 crore.

Upbeat on overseas

The EIL chairman emphasised that the company is aggressively tapping business opportunities overseas. It has secured ₹499 crore in new contracts and re-entered Algeria and Kuwait. The company is bullish on business prospects with the UAE, which is increasingly patterning with India to enhance trade relations.

Shukla said the company’s expanding business acumen in the Arab nation can be judged from the fact that its employee strength in the UAE has grown from around 30 employees about a year-and-a-half ago to more than 140 at present.

“Why have we focussed on Abu Dhabi National Oil Company (ADNOC) and the UAE? One, they are investing into a project to expand their oil producing capacity from 4 million barrels per day (mb/d) to 5 mb/d. They are focussed on various verticals whether it is offshore, onshore, gas, petrochemicals, etc. We find a lot of value in our services. As a company we are now very focussed in creating that as a hub to cater to a lot of projects around the UAE also,” she said.

EIL’s unit in the UAE is profitable and the company is “hopeful” to secure assignments, both small and big, from ADNOC, she added.

“We had ₹32 crore business inflow from Abu Dhabi in FY22 and last year (FY24) we had a business of ₹146 crore. This year (FY25), we already have an inflow of about ₹141 crore. The business opportunity is several billion dollars,” Shukla said.

Published on September 11, 2024 15:25

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.