Lloyd’s scouts buyouts in nuclear space

Lloyd’s Register Group, UK-based safety and risk mitigation firm, is scouting for acquisitions in India as it aims to more than double revenues from the country to about £34 million, or Rs260 crore, in three years, said chief executive Richard Sadler.

Lloyd’s, which has been operational in India since 1874, operates in various sectors such as energy, shipping and food, oil & gas, railways, utilities, general engineering and manufacturing among others.

For the year ended June 30, nearly 12 million pounds, or 70% of its topline in India, came from non-marine sectors, foremost among them power.

K Swaminathan, area general manager, South West Asia, Lloyd’s, said the firm executes a lot of global contracts using Indian resources.

Asked why India contributes only 2% to Lloyd’s global revenues of 860 million pounds, which it plans to double in four years, despite a very long presence in the country, Swaminathan said it has to do with the nature of its business. “We don’t sell a product. But we think there are significant opportunities for growth in the coming years.”

Lloyd’s is engaged in 30,000 megawatt of power projects in several countries. Besides certifying power equipment, it also oversees safety requirements at the plant.

“We’ll also be doubling our headcount of 230 in India in three years,” Swaminathan said.

Though the targeted growth in India will be organic, Sadler said Lloyd’s is mulling acquisitions in, among others, the nuclear power space.

Swaminathan said most safety operations in nuclear power are, like its generation, are not open to the private sector. “But there are some areas where the private sector can participate and it is where we are looking at an acquisition. And we can also use the resources in our other markets,” he said, without divulging details about the acquisition plan.

Lloyd’s is also targeting the transportation space in India, especially metro and mono rail projects. “We’ve had talks with Reliance Infrastructure and Larsen & Toubro, but nothing has materialised yet,” Swaminathan said. While Reliance Infra is the concessionaire for the Mumbai metro project and Delhi Airport Metro Express Line, L&T is developing the Hyderabad metro project.

Lloyd’s Register is known mostly for classification of ships globally.

Classification of ships refers to inspecting and grading the vessels depending on their condition and seaworthiness. But it expects more rapid growth from its non-marine businesses in India.

On business opportunities in the power generation business, Sadler said Lloyd’s can help Indian utilities overcome environment and safety related issues.