Aggreko Energy targets 30-40% growth in 2013
Dec 02 2012 , Pune
“Our rental power business to a range of industries in India is growing and we want to tap this market aggressively,” V Radhakrishnan, country head at Aggreko Energy Rental India, told Financial Chronicle. He said the firm will launch three large service centers in Gujarat, Andra Pradesh and West Bengal next year to develop a hub and spoke business model to achieve 30-40 per cent growth in calendar year 2013.
The Scotland-based company, in the last three years, has invested a total of Rs 150 crore in setting up three large depots in Pune, Delhi and Chennai and the new service centers will be connected to these depots. “At present, we supply over 100 mw power to diverse sectors such as manufacturing, chemicals, oil and gas, shipping, pharmaceuticals, food and process industries, mining and construction and sports events,” Radhakrishnan said.
“The three new service centers will eventually be expanded to full-fledged depots. Each depot generates business worth about Rs 50-Rs 55 crore annually,” Radhakrishnan said. He said India was one of the major developing markets for rental power, providing a huge business opportunity for Aggreko for growth. “We have a firm plan to set up four more new depots and 10-12 service centers for the hub and spoke business model to take off in India in the next five years,” Radhakrishnan said.
He said one megawatt of power supply to industries in India generates Rs 8 – Rs 11 lakh rentals per month depending on voltage usage and switches used. The company supplies 0.5 mw upward of power to all sectors of industries, he said.
“On an average at any given time there is 11-12 gw power deficit in the country, which will increase to 20-25 gw in the next couple of years, providing a big business opportunity,” Radhakrishnan said.
He said even though the demand for rental power in India had dipped 10-12 per cent in the third July-September quarter due to overall economic slowdown, it had now picked up by 15-20 per cent in the fourth quarter.
“We are bullish that demand for rental power in India will be better in 2013 than this year as enquiries for power had spread across all industry sectors,” Radhakrishnan said.
He said Apac region, which includes India, contributed 20 per cent of the total revenues of Aggreko’s $2.1 billion in calendar year 2011, and Europe and West Asia 42 per cent and North, South and Central America 38 per cent.