?EIL is getting back into fertiliser project consultancy?

Engineers India Ltd (EIL), established in 1965, is a rich public sector resource of technical expertise with 2,800 engineers on its roll. The company has helped build India?s petroleum industry with its diverse expertise in offshore structures, platforms, oil & gas processing and refineries. It also offers engineering skills in areas like port building and fertiliser plants. The company reported a post-tax profit of Rs 345 crore in 2008-09, while its turnover stood at Rs 1,532 crore. It has a cash surplus of Rs 223 crore. Having taken up over 4,300 assignments in India and abroad in various fields, the company is looking for further diversification. In an exclusive interview with FE?s Noor Mohammad, AK Purwaha, chairman & managing director, EIL, spells out the company?s future plans and growth strategies.

What initiatives has EIL taken in recent months for business development in the overseas market?

We opened an office in China this November. China has a lot of vendors. Besides, we are also looking for consultancy opportunities there. In Africa, EIL is already operating in Algeria with a team of 45 engineers. Now, we?re also looking at venturing into new markets like Nigeria, Ghana, Sudan and Kenya. Meanwhile, we are also trying to enter the Latin American market, and Brazil is particularly on our radar. The company already has a significant presence in the Middle East. It is operating in various countries, including Qatar, Oman and Kuwait. The company?s Middle East office is in Abu Dhabi. It is also involved in oil & gas sector projects being implemented in Iran.

Which are the new areas that you are venturing into?

We are looking at getting into the solar power project consultancy business. Our plan is to provide end-to-end solutions for the development of solar power projects. Meanwhile, we are also planning to enter the gas-based power project consultancy business. Once we get a foothold in gas-fired power consultancy business, we can also diversify into coal-based power consultancy.

The company is also planning to tap the nuclear power consultancy business. We are trying to leverage our expertise to provide consultancy for balance of plant packages for nuclear power projects.

Earlier, EIL was in fertiliser project consultancy. It had provided consultancy services for various fertiliser plants, including National Fertilisers Ltd?s (NFL) Bhatinda and Panipat units. But subsequently, the company had to quit this business in favour of another public sector consulting firm, Projects and Development India Ltd (PDIL). Now that business environment has changed, EIL is planning to get back into the fertiliser consultancy business.

The company is also very bullish on the water management consultancy business. EIL is already working with Delhi Jal Board and looking to expand in this area. The company is also planning to move into the infrastructure consultancy business. It has been assigned the task of conducting quality inspection for most flyovers coming up in Delhi.

What are EIL?s strengths in project management?

EIL has a staff strength of 3,500, out of which 2,800 are hardcore engineers. Our team comprises engineers with experience ranging from two to 37 years. So,we have a strong engineering team. The company was set up in 1965 to provide engineering and technical services for petroleum refineries and other industrial projects. The company?s initial focus was on the refining sector. But subsequently, it diversified into new areas like petrochemicals, pipelines, mining & metallurgy and infrastructure. The company has been involved in the implementation of more than 400 projects. Most of the projects implemented by EIL are running successfully at above their rated capacities.

EIL has the expertise to provide services in areas like engineering, project management and construction management, third-party inspection services, ?independent engineer? services and technical audits. We also provide other related services for infrastructure development projects like townships, airports, highways, bridges and intelligent buildings.

What is EIL?s track record in the petroleum refining sector?

EIL has provided its services in the development of 47 major projects worth 100 million tonnes of refining capacity or about 2 million barrels a day. These include ten grassroots refineries, 22 expansion projects and nine hydrodesulphurisation projects. Besides, we have also implemented a large number of revamp and modernisation projects in the petroleum refining sector.

EIL has provided consultancy services in areas such as visbreaking, delayed coking, sulphur recovery, fluidised crude cracker, naphtha hydrodesulphurisation, naphtha reformer, kerosene hydrodesulphurisation and hydro-cracking and wax hydro-finishing.

Our clients include public sector companies like Indian Oil Corporation and Bharat Petroleum Corporation as well as private players such as Essar. EIL can manage the entire work relating to implementation of refining projects on its own, except for process design of a few licensed units. The company also has technologies for lube refining complexes.

What is EIL?s experience in handling petrochemical projects?

The company has provided consultancy services for various petrochemical projects. These include naphtha cracker and aromatics complex and downstream plants at Vadodara, Maharashtra Gas Cracker Complex at Nagothane and Gandhar Petrochemicals Complex at Dahej for Indian Petrochemicals Corporation Ltd (IPCL), integrated refinery-cum-aromatics based petrochemical complex of Bongaigaon Refinery and Petrochemicals in Assam, GAIL?s Auraiya petrochemical complex in Uttar Pradesh, HPL?s Haldia petrochemicals complex, Indian Oil Corporation?s integrated paraxylene and PTA complex at Panipat.

EIL has also done considerable work overseas?in Iran, the United Arab Emirates and Malaysia. We have been providing project management consultancy services to NPC for Tabriz Petrochemicals, Khorassan Petrochemicals and Shiraz Petrochemicals. EIL has also provided its services to the Borogue expansion project in Abu Dhabi.

What are the key pipeline projects implemented by EIL?

EIL has implemented key pipeline projects in India such as GAIL?s 2,300-km HBJ natural gas pipeline, 1,265-km-Kandla-Loni LPG pipeline and IOC?s 1,400-km Kandla-Bhatinda multi-product pipeline. EIL has also worked abroad on pipeline projects. It has handled work relating to implementation of Takreer?s inter-refineries pipeline project in Abu Dhabi and the Khuff gas pipeline project in Qatar.

What types of projects have you handled in the upstream oil & gas sector?

EIL has capabilities for providing the full range of services for offshore oil production projects like well-head platforms and gas compression, water injection and submarine pipelines. It has been the main consultant to the upstream oil major ONGC for its offshore activities in the Mumbai High area and also for other fields like South Bassein, Heera, Neelam, Panna, Mukta and Ratna on the east coast. Abroad, EIL has handled offshore projects in Qatar, Vietnam, Norway and the UAE.

EIL also has the expertise to implement various types of onshore projects, including crude gathering stations, multi-stage separation, crude desalting & dehydration and heavy, sour oil processing, gas collection systems and compressor stations. It has handled many ONGC projects. EIL also has the skills to provide consultancy services for storage of crude oil in unlined underground rock caverns. Currently, the company is involved in storage projects coming up at Vizag, Mangalore and Padur. EIL has provided consultancy for Sonatrach?s LPG and LNG projects in Algeria.