Mumbai: Areva T&D India Ltd, the Indian arm of French energy firm Areva SA, sees revenues doubling in the next two years, a top official said.
“We should be doubling capacity by 2010, so we should be doubling sales by then,” Areva T&D India’s country president and managing director, Rathin Basu, told a gathering of analysts and reporters late on Tuesday.
For the year to December 2007, Areva India reported sales of Rs20.1 billion ($502 million).
The company also plans to add about 4,000 people by 2010 from its headcount of 3,500 now, he said.
The growth in India will be driven by the transmission and distribution segment, Basu told Reuters.
Transmission now contributes about 60% to revenues with the remaining coming from other segments. Over time, this mix is expected to change with industrial distribution showing more growth, he said.
“The transmission and distribution market will continue to grow in India, China and Russia. India is the fastest growing market if you include exports,” Areva’s executive committee member and T&D unit chairman and CEO, Philippe Guillemot, said.
Exports now form 10% of revenues and this is seen going up to 14% in two years.
“Our long-term outlook is to maintain our growth rate in India and be in a catch-up position in China, near- and middle-east, he added.
Areva T&D India offers transmission and distribution services and also manufactures power equipment. Globally Areva, which is also a significant player in nuclear energy, derives about a third of its revenues from its transmission and distribution unit.
The Indian company is also betting a lot on the high voltage gas-insulated switchgear (GIS) segment, where it already has orders worth about Rs1.7 billion.
“It is a space-saving solution and in cities and towns where land price is it a premium GIS is the answer,” Basu said.
The company is spending about Rs7 billion in over two-three years in greenfield projects, capacity expansions and localisation of future technology, Basu said.
This involves investing Rs5 billion in manufacture of large power transformers up to 1,200 kilo volts in Baroda, Rs1 billion in instrument transformers at Hosur and another billion on circuit breakers at Chennai.
Areva T&D Group holds 72% in its Indian arm with the remainder being held by the public.