John Brown Tech Has Designs On Petrochemicals, Refinery

Bangalore: | Updated: Jan 29 2003, 05:30am hrs
US-based, $1.2 billion S&B Engineering and Construction company, which has taken a 26 per cent equity stake in the city-based John Brown Technologies India (JBTI) hopes to generate 40 per cent cost saving by outsourcing engineering design contracts, especially in refinery and petro-chemical sector to JBTI.

Speaking to eFE S&B International Groups senior vice-president Rich Akin said The relationship with JBTI is absolutely critical for the success of the company as this would help us to take on competition in the US.

The majority stake in JBTI - 74 per cent - is held by the MSR Group.

The company, floated in 1991 as 60:40 joint venture between the MSR group and the UK-based John Brown Technologies, was fully taken over by the MSR Group on 1999 following the UK partner merging with some other companies.

JBTI managing director MJ Shantaram said it had completed its consolidation phase and would now focus more on upstream and downstream engineering ventures in oil and petroleum sector.

The company also has a technical partnership with the US-based Paragon Engineering Services International for reciprocal cooperation in domestic and international business.

S&B had taken 26 per cent stake in the company in November 2001.

Mr Shantaram said that the JBTI hopes to grow to 300 person company with a revenue of Rs 15 crore by the next fiscal.

At present JBTI is having a strength of 225 people.

Mr Shantaram said the company has gained expertise in handling deepwater blocks and with the government allocating several blocks for exploration the company hopes to generate good business in the coming years.

Mr Shantaram said JBTI would also pursue projects in the refinery and petro-chemical area.

According to Mr Shantaram and Mr Akin except Reliance and Mangalore Refinery Petrochemical Ltd all refineries in the country need to go in for modernisation and refurbishment.

Modernisation and refurbishment in the refinery sector is going to be good business in the coming days, Mr Shantaram said.

S&B is a global leader in the refinery and petro-chemical sector and JBTIs relationship with them would enable to the company to bring global standards in these sector to the country, he added.