Powergear plan to foray into renewable energy sector
December 31st, 2010

High voltage electricity equipment manufacturer Powergear Ltd has proposed a Rs 150 crore “greenfield project” with an European partner for making its formal foray into the renewable energy sector.
The Bangalore-headquartered company, which has been manufacturing “busducts” and “control cubicles” for the energy sector, is currently “holding talks” with top officials of an European company, Powergear Ltd Founder-Chairman X Durairaj said.
“We have started diversifying into Renewable energy sector and already we are in talks with European partner …The deal is likely to be completed in January second week”,he told PTI.
It would be a Rs 150 crore “greenfield” project whereby the European partner would provide “technology” and  “funding” support while his company would look after the “construction” and “operations” of the project.
It is understood that in the joint venture, the Indian company would hold a majority stake of 51 per cent. “It is too early to comment on this..”, he said.
For setting up the manufacturing facility through the joint venture, he said they were scouting for locations in Gujarat, Andhra Pradesh, Karnataka and Maharashtra.
“We need a 25 acre land for the facility.. While the wind energy in Tamil Nadu is exhausted, in these four states there is huge potential for us.. In Andhra Pradesh alone 90 per cent of the wind energy potential remains untapped…”, he said.
“We want to commence the production of the plant by January 2012 and in another 3-5 years we are expecting revenues (from this facility) of Rs 500 crore”, he said.
On future plans, he said they were expecting revenues of Rs 148 crore this year too.”That is mainly because of the recession .. Last year we reported Rs 148 crore. This year too we are expecting it to be the same..”, he said.
About 70 per cent of the products are exported and there is still some recession in the overseas markets, he said.
The company currently has four manufacturing facilities — two in Chennai, one in Bangalore and one near Andhra Pradesh, he said, adding they planned to make additional investments in the Chennai facility as part of expansion plan.
“We have planned to make Rs 10 crore additional investments in our plant at Maraimalai Nagar near Chennai. This is mainly to expand the facility. We want to increase the capacity of the plant”.
The Chennai facility manufactures busducts and control cubicles.
Durairaj and other company officials were here last night to announce the major shipment of 2×817 MW generator units for a nuclear power plant in Mexico.
“This is the first time an Indian company is exporting such huge generator units to a Nuclear power plant in Mexico”, he said.

Source – Chronicle

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