Nagarjuna moving up the value chain
Consolidating position as EPC provider
BL Research Bureau
Nagarjuna Construction’s climb up the value chain is increasingly becoming evident with the company bagging a Rs 1,558-crore order from SAIL in consortium with Korean company POSCO E&C.
The order, which involves setting up of a blast furnace complex for the IISCO steel plant in West Bengal, will bring in Rs 1,100 crore of revenue over a two-year period and raise the company’s order book to Rs 8,800 crore.
The order is significant in two respects: one, it is the company’s largest single order in the industrial infrastructure space; two, the company appears to be consolidating its position as an Engineering, Procurement and Construction (EPC) provider from being a mere civil structure builder in the industrial sector.
‘Value-add’ focus
It is now focusing on providing more value-add services such as electrical, mechanical and other plant works.
While the key blast furnace technology in the IISCO project will be provided by POSCO, all other activities will be undertaken by Nagarjuna.
The company has also stated that it will continue to bid for similar projects through its joint venture with POSCO and bid for ‘Balance of Plant’ contracts in power projects, which involves installation of factory works around the core power plant.
Nagarjuna Construcation - IISCO