Conflict-hit West Asia contributed about 25% of the RPG Group’s engineering, procurement and construction (EPC) arm, KEC International’s order book, and 28% of order inflows. In an interaction, Vimal Kejriwal, managing director and CEO of the company, tells Raghavendra Kamath about KEC’s operations in West Asia and its strategy going forward.
What is the situation at your sites now? Has there been any disruptions?
Around 90% of our sites are operating as usual. We are present in four countries — the UAE, Saudi Arabia, Kuwait and Oman. Oman is functioning normally. In Saudi Arabia, where we have about 17–18 projects, two are currently on hold — one located next to a refinery and another closer to the border. The rest are progressing as usual. In the UAE, a couple of projects are seeing intermittent, stop-and-start activity. Overall, we have around 20–25 sites in the region.
In the near term, post the war, do you expect a significant change in West Asia’s contribution to the order book or inflows?
To me, it’s a million-dollar question today. There are two or three possibilities. For instance, I hear that in Kuwait some transmission lines have been damaged, creating urgent requirements for restoration. That is a one-time opportunity, though relatively small.
The bigger question is where capex will flow post-war. Historically, transmission and distribution (T&D) infrastructure receives strong focus, especially when countries look to strengthen capabilities, including defence and related infrastructure. In fact, last week we announced a large order in Saudi Arabia — even during the war.
New tenders are also being issued. Unlike some discretionary projects, these are essential, need-to-have investments. A large part of this pipeline is linked to renewable energy, which is likely to gain further traction given the disruptions in hydrocarbons, both in India and globally.
What are the issues with hydrocarbons?
The challenges are evident in developments around the Strait of Hormuz. Countries are realising that heavy dependence on hydrocarbons can pose risks, and are therefore looking at alternatives. For instance, LNG facilities in Qatar have reportedly been damaged, which could affect supply. Similar disruptions have occurred elsewhere.
As a result, countries may prefer to conserve hydrocarbons rather than use them for power generation. We are seeing similar thinking in India as well. At the Bharat Electricity Summit, the renewable energy target was increased from 600 GW to 900 GW, aiming for 900 GW of non-fossil fuel capacity by 2035.
At the same time, if the situation in Iran stabilises and sanctions are lifted, it could emerge as a large market. It could also become an important logistics hub for accessing the former Soviet Union region. We already have projects across the CIS — in Georgia, Moldova and Armenia — and improved connectivity could offer significant logistical and cost advantages. That would present meaningful opportunities for Indian companies.
You were looking at more oil and gas orders in West Asia, targeting business of over ₹1,000 crore. What is your strategy now? Will you continue with it?
We will have to wait and watch how the situation evolves. So far, we have not faced any issues related to payments or execution in Gulf countries, and we expect that to continue. If payment security and overall conditions remain stable, we will certainly look at expanding our presence.
Over the next 10 days or so, we will get a clearer sense of how budgets and external balances in these countries are shaping up. At this point, we do not foresee any major issues. We believe these markets will continue to grow, and we intend to remain engaged.
Are you looking to expand beyond West Asia and explore new geographies due to the conflict?
Not at this stage. We already have a presence in Africa and the Far East, and operate across multiple geographies. It is a bit early to take a call on entering new markets specifically because of the current conflict. Our approach remains unchanged — we are already diversified geographically, and this situation does not alter that strategy.