Engineers India Ltd & Engineering Projects India Ltd

A brief review of the two organisation

CIAL Diversification Plan models 12/07/2013

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Contents
A. Engineering Projects India Ltd ....................................................... 3 1. Introduction ...................................................................................................... 3

2. Financial indicators........................................................................................... 4 3. Segment-Wise Performance ............................................................................. 5 4. Areas of Consultancy ......................................................................................... 5 5. Board of Directors ............................................................................................. 7 6. Organisational Structure.................................................................................. 8 7. Major Projects .................................................................................................. 8 B. Engineers India Ltd ...................................................................... 10 8. Introduction .................................................................................................... 10 9. Human Resources ........................................................................................... 10 10. 11. 12. 13. Diversification ...............................................................................................11 Business Overview ....................................................................................... 12 Financial indicators ..................................................................................... 14 Segment-Wise Performance ........................................................................ 15

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A.

Engineering Projects India Ltd

1. Introduction
As on 31.03.2012, there were 16 central public sector enterprises in the Industrial Development & Technical Consultancy Services group, amongst which EPI during the last 40 years, is engaged in the field of execution of large and multi-disciplinary industrial & construction projects on the turn key basis and project consultancy services. EPI was incorporated in 1970 as A Government of India Enterprise under the administrative control of Department of Heavy Industry. Since then, EPI has admirably performed its assigned roles as the countrys leading Prime Contracting Company and has left its imprint not only in India but in the overseas market as well where its past operation spread over a decade in the wake of oil boom in the Middle East. EPI successfully executed 30 odd projects valued over US$ 782.00 million in Iraq, Kuwait, Saudi Arabia, UAE, Yugoslavia, Maldives, Bhutan and Thailand EPI has executed over 522 multi-disciplinary projects in India valuing over Rs. 6214.817 million. Through the execution of these projects, EPI has in its own way contributed immensely in the development of the Nation and there is hardly any state in India where EPIs pronounced presence is not visible. EPI has the rare distinction of having worked for almost all Power Sectors and Steel Plants in India in Public Sector as well as in Private Sector. EPIs contribution in project execution for various sectors is also quite substantial. The performance of your Company was rated as Very Good for the year 2010 -11 by the Department of Public Enterprises (DPE) under the MOU signed with the Government.

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2. Financial indicators

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3. Segment-Wise Performance

4. Areas of Consultancy
EPI offers the following services: FEASIBILITY STUDIES DETAILED PROJECT REPORTS DESIGN AND ENGINEERING SUPPLY OF PLANT & EQUIPMENT QUALITY ASSURANCE CIVIL AND STRUCTURAL WORKS ERECTION, TRIAL RUN AND COMMISSIONING TRAINING OF SUPERVISORS AND OPERATORS OPERATION AND MAINTENANCE TURN-KEY PROJECT MANAGEMENT PROJECT MANAGEMENT CONSULTANCY The core competence lies in the following areas Housing and Townships Prestigious and Sophisticated Public Buildings High Rise RCC Structures Civil and Structural Works of Steel Plants, Power Plants, Refineries, Oil Terminals etc.

Page |6 Infrastructure and Development works. Roads Storage Silos Airports and Control Towers Sea ports Sport Stadia Rural and Urban Water Supply Systems Water Treatment Plants Water Distribution Sewage Treatment Chemical Effluent Treatment Lump Iron Ore in Mines Raw Materials in Steel Plants Raw Coal from Mines Crushing and Conveying Coal at Thermal Power Stations Fly Ash /Bottom Ash Non-ferrous Ore Fertilizer at Ports Limestone at Cement Plants Reheating Furnaces Electric Arc & Reduction Furnaces Lime & Dolomite Kilns Lime Calcination Plants Steel Melting Shops Walking Beam Furnaces Finishing & Processing Lines Sponge Iron Plants Tube Mills & Related Projects

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5. Board of Directors
Shri SPS Bakshi Shri Vinoo Gopal Shri Rajesh Kumar Singh Dr. K S Rao Chairman-cum-Managing Director Director(P) Part time Official Director Part Time Non-Official Director

Shri S.P.S. Bakshi (50 years) has joined EPI as Chairman-cum-Managing Director in February, 2009. Shri Bakshi is a Post Graduate in Civil Engineering (Highways & Trans.. Engineering). He is a Fellow Member of the Institution of Engineers (India) and a Member of the Institute of Transportation Engineers, USA. Shri Bakshi has a rich and comprehensive experience of 30 years in following fields: Specialization in Project Planning, Execution and Coordination on turnkey basis, i.e. from Concept to Implementation/Commissioning; Expertise in Project Management operations with key focus on profitability and optimal utilization of resources, with mean and lean infrastructure; Strategic planner with expertise in planning and execution of construction projects; Proficient in implementing Project Management solutions; Excellent team leader,adept at building effective and professionally competent team. Shri Bakshi has Specialized Experience in: Planning, Designing and Implementation of Mega Building & Airport Projects on turnkey basis; Design & Construction of Pavements for Runways and Highways; Quality Management of Engineering Projects; Testing and Evaluation of Construction Material;

Page |8 Completion of Mega Projects without any time or cost over-run; Expertise in handling projects on Public Private Partnership basis; Establishing world class training facilities for technicians and artisans in Construction Industry. Prior to joining EPI, Shri S.P.S. Bakshi has worked as Executive Director/Regional Executive Director, Airports Authority of India and Chief General Manager, National Highways Authority of India. He has handled major Infrastructure Airports and Highways Projects of National Importance.

6. Organisational Structure
The company has nearly 450 employees on roles.

7. Major Projects
During the financial year 2011-12, Company has secured 12 projects valuing 1017.21crores. Some of the major projects are given below:

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B.

Engineers India Ltd

8. Introduction
Engineers India Limited (EIL) was set up in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects. EIL is working under the administrative control of Ministry of Petroleum and Natural Gas (MoP&NG), Government of India. In addition to Petroleum Refineries, with which EIL started initially, over the years it has diversified and excelled in various other fields. EIL today has emerged as Indias leading design, engineering and turnkey contracting company providing a complete range of project services needed to conceptualize, plan, design, engineer and construct projects to meet the specific requirements of its clients in the following fields:

Petroleum Refining Petrochemicals Pipelines Offshore Oil & Gas Onshore Oil & Gas Terminals & Storages Mining & Metallurgy Infrastructure

9. Human Resources
Human resources along with technology are the two prime resources of consulting organizations like EIL. Over the years, EIL has earned the reputation of being a veritable treasure of technical knowledge, skills and professional competence. At present, EIL has a staff strength of more than 3370 as on March 31, 2013 of which about 2950 are engineers, technologists and specialists in various disciplines like chemical engineering, mechanical engineering, civil engineering, structural engineering, computer sciences, information technology, geotechnical engineering, welding sciences, material technology, ocean engineering etc. With this manpower, EIL has about 4.5 million manhours available annually in its design offices along with about 9600 man months of construction management services per annum and is in a position to handle a number of large projects at a given point of time.

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10.

Diversification

Engineers India Limited is a public sector undertaking and all the directors are appointed by the Government of India. The Board has a mix of executive and nonexecutive Directors. The Articles of Association of the Company stipulates that the number of Directors shall not be less than five and not more than twenty five. Presently EIL is having 13 Directors on its Board viz. C&MD 5 whole time Executive Directors (Functional) and 7 Non-Executive Directors. With a vision To be a World Class Globally Competitive EPC and Total Solutions Consultancy Organization, the Company is targeting higher business projections and closely looking at diversification avenues based on its strengths in design, engineering and project management capabilities. New endeavors for diversification have identified that thrust needs to be given to overseas operations in EILs core areas including targeting medium to large size EPC projects. Entering into new sectors e.g. Nuclear and Water and closely following sunrise sectors like Solar Power, Coal to Liquid projects constitute the diversification initiative. Joint Venture Companies have been floated for tapping business opportunities. In this regard, TEIL Projects Ltd (TEIL), the joint venture company with Tata Projects is exploring business opportunities in EPC sector. EIL is looking at getting into the solar power project consultancy business. EIL plans to provide end-to-end solutions for the development of solar power projects. Meanwhile, EIL is also planning to enter the gas-based power project consultancy business. Once EIL gets a foothold in gas-fired power consultancy business, it can also diversify into coal-based power consultancy. The Company is also planning to tap the nuclear power consultancy business. We are trying to leverage our expertise to provide consultancy for balance of plant packages for nuclear power projects. Earlier, EIL was in fertiliser project consultancy. It had provided consultancy services for various fertilizer plants, including National Fertilizers Ltds (NFL) Bathinda and Panipat units. But

P a g e | 12 subsequently, the Company had to quit this business in favour of other public sector consulting firms. Now that business environment has changed, EIL is planning to get back into the fertilizer consultancy business. The company is also very bullish on the water management consultancy business. EIL is already working with Delhi Jal Board and looking to expand in this area. The Company is also planning to move into the infrastructure consultancy business. It has been assigned the task of conducting quality inspection for most flyovers coming up in Delhi.

11.

Business Overview

For the year Company gained business worth Rs. 758 crores with segment-wise breakup isas follows:Domestic Consultancy Domestic Turnkey Overseas - Rs. 507 crores - Rs. 130 crores - Rs. 121 crores

There was a noticeable increase in overseas business, with its contribution in orderinflow increasing to 16% against historical trend of 5% to 8%. The overseas businessregistered a strong growth of 234% on year-on-year basis. All the major segments of EIL's business i.e. Hydrocarbons (Refining, Pipeline, Oil& Gas Processing), Petrochemicals, Metallurgy and Infrastructure have contributedpositively towards order inflows. Sunrise power sectors have also secured new orders thisyear. Overall, hydrocarbon sector continues to be the major business segment for the Companywith 70% contribution in orders secured for the year followed by Petrochemicals with 21%share. In the Refining Sector, major consulting orders secured include CDU-4 Project at Mumbai& Stage-1 of the Integrated Refinery Expansion Project at Kochi of BPCL and South OilJetty Project of IOCL. EIL has also been entrusted for implementation of the RO Plant ofGujarat Refinery of IOCL. Major Petrochemical orders gained this year include Health Check-up of Gas ProcessingUnits (GPUs) at Vijaipur, Gandhar, Vaghodia & Usar for GAIL (India)

P a g e | 13 Limited and PDARevamp of Hindustan Petroleum Corporation Limited. In the field of Pipelines, major projects secured include Kota-Piyala Section ofMumbai-Manmad-Bijwasan Pipeline of BPCL and Mehsana-Bathinda Pipeline of GSPL India GasnetLimited (GIGL). In the field of Metallurgy, EIL has been awarded the job for Additional Cast Housefacilities at Mahan Aluminium Smelter Project of HINDALCO. Significant order inflows were received in Oil and Gas Processing segments with awardof Western Onshore Redevelopment Project for Mehsana, Ahmedabad & Ankleshwar Assets,Requalification/Recertification of 50 numbers of Offshore Jackets and TurnaroundReconstruction Works of BPA & BPB Platform Complexes of Oil & Natural GasCorporation Limited. EIL once again strengthened its presence in the Infrastructure sector by winning neworders for Green R&D Centre at Bangalore of HPCL. EIL has also forayed into the Solar Projects and has been awarded jobs by Areva for thePower Block of Concentrated Solar Thermal Power Project of Reliance Power (ADAG). EIL hasalso been entrusted the job of Techno-Economic Feasibility Report for CTL Project inMeghalaya by the State Government. EIL's efforts in building relationship with Nuclear Power Corporation of India Ltd.(NPCIL) resulted in an award of Engineering Services for the BOP for the KudankulamNuclear Power Plant. EIL also entered in strategic alliances in Korea for partnering in execution of EPCprojects. EIL has also formed a Joint Venture Company in Saudi Arabia for undertaking EPCprojects. In order to increase its geographic foot prints, EIL is focusing on othercountries viz. Venezuela & China. In addition to the above, EIL continues to provide alarge number of value added specialized services in fields relating to Project FeasibilityStudies, Risk Analysis, Environment Management, Energy Efficiency Management etc.

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12.

Financial indicators

The main highlights of the financial performance of the Company for the year along withthe corresponding performance for the previous year are as under: (FIGURES IN Rs. LAKHS) No. A(i) Description INCOME FROM SERVICES RENDERED 2011-12 2010-11 369882 282328 23218 16037

A(ii) OTHER INCOME TOTAL INCOME B. i) ii) EXPENDITURE Cost of rendering services Depreciation TOTAL C D E F G H I J K L PROFIT BEFORE TAX (A-B) Provision for Current tax Provision for Deferred Tax Prior Period Tax Adjustments, Short/(Excess) PROFIT AFTER TAX (C-D-E-F) Dividend Tax on Dividend Retained Profits RESERVES & SURPLUS NET WORTH

393100 298365

299678 1945 301623 91477 32026 (3862) (318) 63631 20216 3223 40192 167558 184405

218487 1430 219917 78448 29943 (3412) (335) 52252 16847 2664 32741 127365 144212

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13.

Segment-Wise Performance
Year ended 31.03.2012 Year ended 31.03.2011

Segment Revenue Consultancy Projects Turnkey Projects Total Segment Operations Consultancy Projects Turnkey Projects Total (A) Prior period adjustment Interest Other unallocable expenditure Total (B) Other Income (C) Profit Before Tax (A-B+C) Capital Employed (*) & Engineering 51091 24521 75612 192 116 7045 7353 23218 91477 184405 48659 19564 68223 578 147 5087 5812 16037 78448 144212 Profit From & Engineering 120731 249151 369882 112794 169534 282328

(FIGURES IN Rs. LAKHS)