The engineering sector, which saw around 15% year-on-year (y-o-y) revenue growth in calendar year 2010, aided by a modest recovery in industrial capex, also witnessed recovery in revenue growth for engineering procurement construction (EPC) companies, unlike the sluggishness seen in March-December 2009. The industry also saw a few mergers and acquisitions (M&As). Engineering company Crompton Greaves acquired UK?s Power Technology Solutions (PTS), an electrical engineering company, for ?30 million (around Rs 200 crore), making it the sixth major overseas acquisition for Crompton in a span of five years. According to the management, PTS? acquisition was a step towards achieving revenues of $8 billion by 2015. The acquisition spree has placed Crompton Greaves among one of the leading transmission and distribution companies in the world. Similarly, in its drive to go global, Pune-based Thermax acquired European boiler maker Danstoker group for euro 29.5 million (around Rs187 crore). To further strengthen its position in the metal business, power and automation technologies major ABB in September acquired Metsys Engineering and Consultancy and Voltas signed an MoU between Mustafa Sultan Group of Oman for JV operations for execution of electro-mechanical projects (MEP) in the Sultanate of Oman to facilitate its entry in the MEP segment Sultanate in Oman.

Meanwhile, Siemens India said it plans to significantly increase revenues from its base level products and is targeting euro 1 billion (about Rs 6,100 crore) by 2020, from the current level of around euro 100 million. Engineering companies reported revenue growth as well. During the first quarter ended June 2010, engineering major L&T pleasantly surprised both on margins and order flow guidance. Fueled by 63% year on year growth in order intake, L&T’s management guided for 25% y-o-y increase in order inflow to end FY2011.

Revenue growth picked up for engineering companies during the July-September quarter. Engineering companies fared relatively better aided by modest recovery in industrial capex. Experts say the engineering sector is geared for growth as several macro trends indicate accelerated order intake and execution.