New facilities to boost BGR Energy`s exports

Ahmedabad: BGR Energy expects its orders from exports to double from Rs 600 crore to Rs 1,200 crore in the next two-three years once its proposed manufacturing facilities at the Mundra Special Economic Zone, the West Asia and China become functional.

The company plans to manufacture air fin coolers, deaerators, desalination plants, and water treatment plants among others for the power sector at the new facilities.

It also plans to tap markets in China, Bahrain, Indonesia, Thailand, Vietnam, Morocco through the overseas facilities. At present, BGR Energy owns and operates a manufacturing facility at Panjetty, near Chennai, and another through its subsidiary, Progen, at the same location.

The company would invest around Rs 82 crore in the new facilities. Of this, the Mundra unit would be set up at a cost of around Rs 27 crore, Bahrain facility Rs 33 crore, and the China facility will see an investment of Rs 21.8 crore.

To fund the expansion, the company will hit the capital markets on December 5 with a public issue of 9,136,000 equity shares of Rs 10 each through the 100 per cent book building process. The issue closes on December 12 and the price band has been fixed at Rs 425 to Rs 480 per equity share.

The company is mainly into power followed by captive power, oil and gas equipment business, and air fin coolers among others.

The company has executed balance of plant (BOP) power projects in Valuthur in Tamil Nadu, and Chittorgarh and Dholpur in Rajasthan.

It is executing turnkey BOP coal-fired power projects in Vijayawada and Bhoopalapalli in Andhra Pradesh and Khaperkheda in Maharashtra.