The Hindu Business Line : A diversified entity

Anand Engineering Products Pvt Ltd (formerly Anand Engineering Industries) is one of the leading engineering enterprises in the Tiruchi region established in 1976 as a fabrication unit to cater to the needs of power plant equipment manufacturer BHEL.

Over the years, the company has grown rapidly and today caters to a wide customer base with varying product profiles. It currently has four manufacturing facilities spread over 4.5 lakh sq. ft. on over 67 acres of land in the industrial belt of the district.

Apart from this, it is also planning a greenfield facility in Nagpur involving an investment of Rs 100 crore over a period of three years.

From being a manufacturer of power plant equipment, Anand Engineering diversified over a period into areas such as heavy steel fabrication, electrical control panels and furnaces. As a result of continuous development of technology and expertise, in 1997 it forayed into manufacturing of windmill towers with energy producing capacity of 750 Kw to 1650 Kw.

However, it still supplies equipment such as column, bracings and ductings to BHEL. The share of revenue from BHEL has been constantly increasing year-on-year. From just 5 per cent in 2005-06, the BHEL business now contributes 15 per cent of Anand Engineering’s total revenues.

“Our aim is to become a ‘preferred supplier’ to BHEL and we started working towards that. We are targeting a revenue share of 30 per cent from BHEL,” says K. Premanathan, Managing Director of the company.

Anand Engineering now operates in four verticals – conventional power, non-conventional power, earthmoving and mining, construction and projects.

In the conventional power sector, the company is manufacturing components for thermal power plant equipment for companies such as BHEL Ansaldo Boilers and Thermax.

In the non-conventional power sector, it manufactures wind towers for Vestas and Suzlon. Both these sectors contribute 30 per cent each (60 per cent in total) of the company’s overall turnover. In the earthmoving and mining sector, Anand Engineering manufactures dumper bodies for caterpillar and Komatsu. By manufacturing skip structures and silos for biggies such as Schwing Stetter, Greaves Cotton, it marks its presence in the construction sector too. In the projects division it caters to companies including FLS and Thysenkrupp.

While conventional and non-conventional power sector equipment business contribute 30 per cent each, and earthmoving and mining equipment and projects contribute 10 per cent each to Anand Engineering’s overall turnover, its products in the construction sector chip in the rest.

The company earned Rs 50 crore in 2007-08 as against Rs 46 crore in the previous year. During the last financial year, it expanded its capacity.

“So, with the expanded capacity put into use, we expect 100 per cent growth in topline to Rs 100 crore during the current financial year,” said Mr Premanathan.

According to him, the company has already procured Rs 40-crore orders from Vestas, BHEL, Thermax, Caterpillar, Komatsu and Schwing Stetter. “These orders will be executed in the next five months,” he says.

More Stories on : Engineering | Diversification | Power | Non-conventional Energy | Tamil Nadu

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