The Mumbai-based Rs3,000-crore air-conditioning and engineering services company, is likely to bag a large overseas order that could be worth Rs600-800 crore.
MUMBAI: Voltas Ltd, the Mumbai-based Rs3,000-crore air-conditioning and engineering services company, is likely to bag a large overseas order that could be worth Rs600-800 crore.
The order from West Asia would be in the electro-mechanical segment and come before the end of the current fiscal, a source close to the development said. It is also learnt that the Tata group company is readying itself for bigger bets into special economic zone space for long-term contracts.
Talking to DNA Money, M M Miyajiwala, executive vice president-finance, Voltas, said, “Bidding and bagging orders is a continuous process for us and I don’t want comment anything on fresh orders at this stage.”
He said that Voltas order book size has swelled to Rs3,500 crore, of which Rs2,700 crore are from overseas and Rs 800 crore from the domestic market.
Voltas’ order book has witnessed a strong growth in the last couple of months on account of significant order flow from international markets. The company has also been successful in bagging repeat orders from the Middle East.
Voltas reported an order backlog of Rs3,500 crore led by strong order booking in the international electro mechanical projects at the end of third quarter of 2007-08, which is a growth of 44% year-on-year.
Some of the large international orders bagged during the quarter include Rs500 crore for Barwa city project in Qatar, Rs300 crore for district cooling plant in UAE and Rs100 crore for a theme park in Dubai. Its international electro-mechanical projects division has witnessed a growth of 46% year-on-year in order backlog at Rs2,700 crore.
Voltas aims to be a Rs10,000 crore company by the end of 2010-11 and would invest around Rs50 crore in the current year for business growth.
Its electro-mechanical projects and services segment’s revenues grew by 6% while engineering products and services segment revenues rose 37%. The major contributors have been mining & construction equipment, which grew by 98% and textile machinery by 19%.
Analysts Mukul Jain and Apurva Patel of Prabhudas Lilladher said in a report that Voltas would be a major beneficiary of airport privatisation as it has an edge over other bidders. But increasing attrition rates and talent-shortage at different levels have emerged as bigger problems for Voltas. The company is likely to go on massive recruitment drive over the next fiscal.
“We have recruited almost 10% of our total employees in the last few quarters. The company regularly visits campuses for recruitment as getting people in infrastructure is not an easy job these days,” Miyajiwala said.
r_mithun@dnaindia.net
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