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[ Source - Business Standard, Dated - 20 Jan. 07 ]
AFCONS Infrastructure Ltd, the flagship infrastructure
construction
company of the
Shapoorji Pallonji group, is scouting
for global partners
to enter the highrisk,
high-margin
offshore pipeline
laying business.
Having recently
forayed into onshore
pipeline construction, AFCONS, which is primarily into marineconstruction apart from specialised bridges, is seriously eyeing
the offshore segment in the light of the surge in offshore oilexploration and production activities. As offshore pipeline
construction is a specialised area, the company will have to
team up with overseas companies for the technology, which will
be leveraged with its own expertise in marine construction.
Admitting that offshore pipeline will be the next key business
area for AFCONS, Mr. K. Subrahmanian, the company's managing
director, however declined to reveal details of the company's
plans in this segment. "Offshore pipeline laying does offer
significant business potential in India, especially as only one
company in the country has capabilities in this sector," he told
Business Line.
He however said this sector represented a high-risk, high-
Seeks global partner, sees opportunitymargin one. The risk stemmed from getting specialised barges
to lay the offshore pipelines and, with only a handful of
companies in the world supplying these barges, timing was of
essence. "If a company missed the season then it had to wait
for months to get the barges," he pointed out.
Logical extension
Offshore pipeline will be a logical extension of its recent foray
into onshore pipeline, with the bagging of a Rs 40-crore
contract from ONGC to lay a pipeline in Assam. The company
also recently tied up with Peter Gas of Russia to bid for the
Jamnagar-Bhadbhut pipeline for Gujarat State Petronet Ltd.
"This tie-up is only for this specific project, if we get it. For
onshore projects, we plan to have only project-specific tie-ups.
Peter Gas will provide us technology and project management
expertise," Mr. Subrahmanian said.
AFCONS however has no plans to enter the irrigation sector or
the real estate sector. It will step up its overseas projects,
which at present constitute 19 per cent of its revenues. The
company had notched up revenue of Rs 718 crore last fiscal.
"Our present order book position is about Rs 3,000 crore, with
marine construction, including berths, jetties and backwater,
constituting 22 per cent, special bridges 28 per cent and
hydro-tunnelling 14 per cent," Mr. Subrahmanian said.
