Essar Projects Limited (EPL) is a leading engineering, procurement and construction
(EPC) contractor offering innovative execution and project delivery solutions
for projects of scale and complexity whilst simultaneously managing interfaces
with licensors and technology partners to its clients in multiple sectors. Alwyn
Bowden, CEO & President - Essar Projects India Ltd told Sandeep
Menezes that the major challenges facing India's epc sector involve uncertainties
surrounding land acquisition both status and approvals.
Essar Projects is well positioned to capitalize on opportunities arising out of investment infrastructure and industrial sectors, with public sector being a major contributor in both sectors. We have a broad spectrum of capability and expertise with a track record that is an envy of any epc company in the world. Essar Projects is one of a select few epc companies with the capability to plan, engineer and execute large & complex projects in many sectors like refining, power, steel to name a few. Over the years we have added to our competitive offering the services of a state-of-art fabrication facility and an equipment bank with an impressive array of machinery to assist in fast-track project delivery with control over more than mere engineering, procurement & construction functions. Additionally, being part of the Essar Group allows us to offer synergies of steel procurement.
As the government increases its focus on infrastructure development,
tell us about the various infrastructure segments that are expected to witness
maximum investments? 
We have tracked opportunities in minerals & metals, hydrocarbons, power,
pipelines & terminals, ports & jetties, civil & buildings and offshore
& sub-sea. And from our vantage point as one of the top epc companies in
India, we have seen the outlook for some sectors improve as compared to others
taking a shift downwards. This movement in the pecking order has many reasons.
We believe that a large proportion of infrastructure projects will be tendered & awarded on PPE basis, led by roads-sector. In order to have ring-side position in a sector that is forecast to see/attract almost US$ 1000 billion in investment, Essar Projects & group company Essar Concessions are successfully positioning ourselves to be a major player in PPP projects.
Indian epc in many ways is unlike anywhere else in the world, given
the overemphasis on lowest cost. But does this model hamper introduction of
new technologies?
Indian epc in many ways is unlike anywhere else in the world, given the over-emphasis
on lowest cost. This focus on lowest cost solution can at times work against
the introduction of new technological solutions being offered in the market.
However Essar Projects like a few other Indian companies has been incorporating
new technologies and international best practices in its epc offerings to the
market and the same is being well-received.
Essar Projects is already competing with the best in the world and we have executed large projects in challenging conditions internationally. We have executed a 106 km 24 inch diameter pipeline for the transportation of nickel slurry in Madagascar, we are currently building an airport in Papua New Guinea and are a key contractor in the epc of a $ 2.4 bn aromatics complex in Jurong, Singapore.
We have successfully leveraged our experience and expertise of executing large and complex projects in India overseas.
Epc projects especially in road segment face major challenges such
as uncertainties surrounding land acquisition, both status and approvals. Comment.
In the last year or so roads has become one of the biggest sectors in the infrastructure
space in India. The major challenges are the uncertainties surrounding land
acquisition both status and approvals. Despite assurances of local permits and
approvals being in place, more often than not active management of such issues
locally is necessary to ensure project execution & delivery on time and
within budget.
What is the future business strategy of Essar Projects?
Today Essar Projects is not only one of the biggest epc companies in India by
any metric but is also increasingly expanding its international footprint. Our
strategy over the next 3-5 years is to establish Essar Projects as one of the
top international epc companies with capability and expertise in multiple sectors
with quality and safety standards to match the best.
Which are the various industry segments currently contributing to the
revenue mix of Essar Projects? Going forward, do you foresee any major shift in this revenue mix?
We have tracked
opportunities in minerals & metals, hydrocarbons, power, pipelines &
terminals, ports & jetties, civil & buildings and offshore & sub-sea.
And from our vantage point as one of the top epc companies in India, we have
seen the outlook for some sectors improve as compared to others taking a shift
downwards. This movement in the pecking order has many reasons.
We believe that a large proportion of infrastructure projects will be tendered and awarded on PPE basis, led by roads-sector. In order to have ring-side position in a sector that is forecast to see/attract almost US$ 1000 billion in investment, Essar Projects & group company Essar Concessions are successfully positioning ourselves to be a major player in PPP projects.
