Date:20/02/2005 URL: http://www.thehindubusinessline.com/2005/02/20/stories/2005022001410200.htm

Back KEC International aims to cross Rs 1,000-cr turnover

M. Ramesh

Chennai , Feb. 19

KEC International expects its turnover to cross the Rs 1,000-crore mark this year. The company has orders worth Rs 2,500 crore, executable over the next two years, the Managing Director, Mr Ramesh Chandak, told Business Line on Saturday.

The company, one of the world's larger transmission line EPC (engineering, procurement and construction) contractors, expects to end the current year with a turnover of Rs 1,050 crore, against Rs 827 crore last year. Of this, exports will account for Rs 740 crore (Rs 678 crore), Mr Chandak said.

In the first nine months of the current year, the company recorded a turnover of Rs 789 crore, against Rs 532 crore in the same period last year, and a net profit of Rs 29 crore, against Rs 12 crore previously.

Mr Chandak, who was here to participate in a seminar on Regional Trade Agreements organised by Exim Bank and the Industrial Economist magazine, said the larger orders on hand include a Rs 600-crore project in Libya and a Rs 450-crore order in Abu Dhabi.

He said project exporters had two major expectations from the Government. First is some flexibility in labour laws. "I am not asking for a `hire and fire' policy," he said.

But a company ought to be able to make contract-specific recruitment.

Mr Chandak said, to avoid being saddled with a large labour force even when orders are thin, many project exporters outsource work.

The companies that sub-contract usually do not pay their labourers enough.

Secondly, he said the Government should not change export incentives at least for those projects that were secured, taking into account the export benefits. He cited the example of reduction in DEPB rates.

Mr Chandak said the domestic market was poised for big growth, given the proposed additions to power capacity.

However, KEC International would not be interested in the scheme envisaged in the Electricity Act, passed recently, which allows companies to own transmission lines.

This is because such companies have to get their payments from the State electricity boards.

"There is no guarantee for payment," said Mr Chandak.