GE India, a 100% subsidiary of GE, the world’s second-largest company by market capitalisation, is mulling a foray into the airport business in India.
NEW DELHI: GE India, a 100% subsidiary of GE, the world’s second-largest company by market capitalisation, is mulling a foray into the airport business in India.
GE is currently present in energy equipment, infrastructure, finance and healthcare businesses in India.
Pratyush Kumar, president and chief executive officer, GE India Infrastructure, told DNA Money: “We are looking at getting into investments in airport infrastructure.”
The company may tie up with a construction company for aiports. GE already manufactures airplane engines and security systems.
Airport modernisation in India is likely to attract investments worth Rs 40,000 crore, with the government opening up the airport sector.
Kumar added that the company would also look at non-metro airports, once the Airport Authority of India puts a policy into place.
Besides the modernisation of Chennai and Kolkata airports, the government plans to develop 35 non-metro airports through the public-private partnership route.
GE on Monday also announced a tie-up with Triveni Engineering & Industries Ltd for high-speed reciprocating (HSR) compressors to be used in the oil and gas industry.
Triveni Engineering will import bare compressors from GE’s Oshkosh-based facility in the US and will design and assemble it at its Bangalore unit.
GE India is aiming to increase its revenue by more than half to $3 billion in 2007 from $1.9 billion and to $8 billion in 2010, said TP Chopra, president and chief executive officer, GE India.
“India is going to be an extremely important market for us…Our key drivers are infrastructure, which includes energy, oil and gas, railways, aviation and water, healthcare solutions and financial services,” he said.
The tie-up with Triveni is for an initial term of five years. The compressors are used in gas lift, transmission and storage, the GE statement said.
“The market for HSRs would be about Rs 500 crore and we are aiming at a 25-30% share,” Triveni chairman and managing director Dhruv M Sawhney said.
While about 25-30% of the total HSR package would be imported, Triveni, which is a sugar manufacturer and has an engineering division that manufactures steam turbines, high-speed gears and water and waste treatment equipment, would add the remaining 70-75% value to the package.
“Besides improving our cost competitiveness, partnering with a local player like Triveni will also improve our pre-sale and post-sale customer support and responsiveness,” said Riccardo Procacci, country manager for GE Oil & Gas in India.
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