GEI set to bid for engineering, procurement & construction contracts

GEI Industrial Systems, Bhopal-based engineering firm, will start bidding for engineering, procurement & construction (EPC) jobs for petroleum refineries and oil & gas platforms in three months, said chairman & managing director CE Fernandes.

GEI is in talks with a company each from Europe and the US for a technology transfer agreement for EPC jobs.

He did not reveal the names of the companies for reasons of confidentiality.

GEI expects to zero in on one of the two by April. “We hope to bag our first contract next fiscal,” Fernandes said. The company is also planning to expand its expertise in balance of plant (BoP) jobs for power generation units. “We won’t be tying up with anyone for this unless the technology changes. We currently have the expertise,” he said.

BoP includes cooling towers, chimney, ash and coal handling systems, air-cooled heat condensers and others while boiler turbine generator (BTG) is part of the main plant package.

GEI’s products find application in three segments—power generation, petroleum refineries and onshore & offshore oil & gas platforms.

“Power contributes 70% and the other two 30% to our business,” he said.

The company, which has been enjoying a good run in the last few years, posted strong numbers for the October-December period. Its net profit surged 122% from a year ago to Rs8.68 crore on a 79% rise in net sales to Rs109.44 crore.

Fernandes said GEI looks to end this fiscal with a topline of `400 crore and plans to take it to Rs500 crore in 2011-12. In 2009-10, GEI’s net sales stood at Rs243.68 crore.

GEI is just starting operations in Mandideep as part of Phase I and Phase II and has a capex of Rs55 crore this fiscal. It has earmarked Rs80 crore for Phase III in 2011-12.

GEI’s order book stands at Rs500 crore and Fernandes said the firm will bag another Rs200-300 crore worth of projects by March but will also execute a similar number.