kec: KEC International buys Gujarat company for oil & gas projects
RPG Enterprises’ flagship infrastructure company, International, has diversified into engineering and construction for the oil and gas sector with an acquisition and a key appointment of a senior executive, and has ambitions of bagging big-ticket orders in future, its chief executive told ET.
On Saturday, KEC announced the acquisition of Gujarat-based Spur Infrastructure at an enterprise value of ₹62 crore. The company recently appointed former Shell executive Gouri Venkatesh as its chief technology officer.
While Spur Infrastructure will help KEC fulfil eligibility criteria for oil and gas pipeline projects, Venkatesh will guide the company to expand its offerings to the sector by tapping into his experience at the Dutch energy major, said Vimal Kejriwal, who is also the managing director at KEC.
“The government is talking about ‘one nation-one grid’ and we expect around ₹5,000 crore to ₹6,000 crore of tenders to be floated every year. There are only 3-4 players in the country and we felt there was an opportunity for us,” Kejriwal said. “We will work on projects in India and then we can look at overseas markets like the Middle East.”
Spur Infra, incorporated in 2016 by oil and gas sector professionals, has been working on cross country oil and gas pipelines and city gas distribution networks and has annual revenue of more than ₹100 crore. The company has an order book of ₹600 crore, which KEC will acquire. KEC currently has confirmed orders and likely orders where it has emerged lowest bidder worth ₹27,000 crore.