Skipper bets big with Power T&D business,eyes overseas markets

Skipper Ltd has unveiled its business outline towards expanding its global footprint through securing major international contracts in the T&D space. Skipper has signed long term supply agreements in Latin American markets, with initial contracts value of 7.5 billion INR and expected to increase further. The observed northward growth in exports orders, from 10% of the order book in FY’13 to 40% of the order book in FY’14, a staggering 300% percentage jump, has further boosted up the company’s rightful prerogative of strengthening its business presence in overseas markets, namely in Africa, Europe, North America and Lat-Am region.

Skipper has an order book of INR 22 Billion at Q3 FY’15 in its T&D business, assuring a 24-month revenue visibility and has been growing at a CAGR of 25% for the last three years. It also enjoys a leadership position in the T&D space of eastern India and has witnessed a revenue growth of 20% at FY’14. Skipper’s global presence spans across South America, Europe, Africa, Middle East, south and south East Asia and Australia.

Mr. Sharan Bansal, Director, Skipper Ltd. commented, “We have outperformed the country’s T&D sectoral growth. We aim at carving out a conservative 5% of India’s INR 400 Billion annual Transmission market and emerge as an INR 20 Billion business by FY’18 jointly with our domestic business operation. We have set a target to be an INR 3700Cr+ enterprise by FY’19 from the current INR 1165Cr together with our water resources business.”

The Power Transmission sector is growing annually at 8% and huge investments are on the horizon with substantial private sector participation. Power Grid Corporation of India Limited (PGCIL) has an investment plan of over Rs.100,000Cr out of total planned investment of Rs 200,000Cr in the 12th Five year plan, till 2017-18 and likewise Skipper, being one of the largest suppliers to PGCIL projects is poised to get a substantial portion of this business.

Mr. Devesh Bansal, Director, Skipper Ltd stated, “We observe an amplified demand from the generation segment and development of mega transmission projects globally which is driving demand for transmission towers. The increased focus on renewable energy, nationwide grid interconnections and enriching last mile telecommunication connectivity are identified as the key growth drivers of tower manufacturing sector worldwide. Our distinctive product offering and experience of fulfilling challenging mandates in overseas markets have always placed us ahead of our competitors. These are the attributes which we focus building on further and grow our out-of-country business by 40% in FY ’16.”