Tata Projects Eyes Double Digit Growth with Focus on Sustainability and Electronics
Key Ideas
- Tata Projects expects double digit growth in the current financial year, with a focus on sustainability and electronics.
- The company's bottom-line growth is projected to surpass its topline, with a significant share of revenue coming from the sustainability sector, including green hydrogen and green ammonia.
- Key growth pillars for Tata Projects include advanced engineering, sustainability, and mobility, with projects ranging from semi-conductor facilities to battery manufacturing units.
- The company is diversifying its portfolio by reducing government orders share, focusing on predictable metro projects and airports, and maintaining a 10-15% share of overseas orders.
Tata Projects, the engineering, procurement, and construction company of the Tata group, is optimistic about achieving double digit growth in the current financial year, driven by a strategic focus on sustainability and electronics. The company reported a profit of Rs 139 crore on revenues of Rs 17,247 crore in the previous fiscal year, with a revenue of $2 billion in the current year. Vinayak Pai, the managing director and CEO, highlighted that Tata Projects' growth in the sustainability sector, including segments like green hydrogen and green ammonia, accounts for 40% of its revenue. Additionally, 10 to 15% of the revenue is generated from electronics and semi-conductor projects. With a robust order book of Rs 40,000 crore, the company is balancing its focus between manufacturing and services, underscoring the importance of advanced engineering and sustainability. Tata Projects is actively engaged in projects such as building a semi-conductor facility and a battery manufacturing unit in Gujarat. Green hydrogen, green ammonia, and pumped storage projects are identified as significant contributors to the company's growth trajectory. The firm aims to decrease its reliance on government orders from 80% to 50%, emphasizing the predictability of metro projects and airports. Moreover, Tata Projects plans to maintain a 10-15% share of overseas orders to diversify its portfolio and ensure sustained growth.