Wednesday, January 5, 2011

Veesons Energy chalks out 5 year biz plan, open to tap PE

Trichy-based boiler and power plant manufacturer, Veesons energy systems has chalked out a five year strategy to grow its existing process and power boilers’ business as well as add new verticals like CFBC boilers and bidding for EPC (power plants) upto 50 mw against 25 mw and utility boilers to generate upto 200 mw.

Veesons promoter and MD, V Ramakrishnan told ET, " We are targeting a minimum growth of 35% in topline every year to touch Rs 1000 crore by 2015 including exports. We will be investing Rs 100 to Rs 150 crore in the next three years.

We have a paid up capital value of Rs 5 crore. Our enterprise value is about Rs 100 crore. We are open to raising money from private equity funds".

He said during 2009-10, it clocked a 40% increase in turnover at Rs 162 crore. The order book went up by 65% to Rs 275 crore. This year, turnover is expected to be Rs 250 crore of which exports will be more than 35%.

This includes a battery of export orders valued at Rs 110 crore from South East Asia for supplying three 200 TPH boilers for sugar industries. He said the company will be shifting its corporate office to Chennai as part of the expansion programme. It employs more than 1000 people.

Recently, Veesons entered into a technical collaboration with Osmo Kaulamo Engineering Oy (OKE), Finland for producing circulating fluidised bed combustion (CFBC) boilers and chemical recovery boilers. OKE is a pioneer in the field.

Mr Ramakrishnan said the industries in South East Asian markets like Thailand, Sri Lanka, Bangladesh besides South Africa, which were traditionally sourcing the equipment from the Western countries, are now betting big on China and India for imports.

"Started as a vendor for Bhel, Trichy 30 years ago, we have developed strong fundamentals to support our ambitious growth plans. We have grown fast in boiler and small power plant market. Going forward, we will include CFBC boilers, effluent waste fire boilers, MSW fired, pulverised coal fired utility boilers, HRSG etc..,", he said.

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