1. INDUSTRY STRUCTURE & DEVELOPMENTS
Indian economy showed early signs of growth post various initiatives and reform
measures undertaken by the Central Government. The Company believes that public and
private investment spending to drive the capex growth will be critical to Indias growth
outlook. The Government has taken measures to boost spending by increasing the capex
allocation towards infrastructure projects by reforms in the budget. The Government is
also taking various initiatives to unlock stuck investments in the core and infrastructure
projects, revive investments from the private sector by reforming policy, improving the
ease of doing business and accelerating the project related activities. Post the regime
change in Indias federal Government, there have been firm signals of development agenda
and pushing of reforms required to revitalize the economy.
The Government has taken measures to revive the economy by modifying FDI policies for
various industries, pushing hard for infrastructure spending and towards creating smart
cities. Reforms to create flexibility in labour markets, safety net for the unorganized
sector and passing of GST to create a common market will go a long way to take the growth
momentum to a different level. The power sector in India continue to be victimized by
structural issues like fuel shortages, poor financial health of State run power
distribution companies and numerous regulatory issues. The demands for power in India
continue to grow with increasing industrialization faster urbanization.
We have been seeing a significant impact of "Make in India" initiative by the
Government of India. This should boost the manufacturing activity and fast
industrialization. This will also create demand for construction activities particularly
in Cement and Power Sectors. The Govt. of India has come out with a Comprehensive Reform
Program for the Power Sector called "Ujwal Discom Assurance Yojna" (UDAY),
envisaging financial and operational turn-around of Electrical Distribution Companies.
This scheme is beneficial because it provides for affordable power to all, financial
increases the Renewal Energy penetration.
With the concept of "Make in India" and scheme of UDAY, the demand for power
is expected to rise year on year basis. We are expecting more Power Plants as well as
Renewable Energy Projects coming up in the near future. Further, Thermal Power Plants
which are stalled for non-availability of coal- linkage are also expected to get the coal
linkage from the therefore your Company will have immense opportunity in the Power Sector.
Government of India under the Coal Allocation The construction of Roads has been
accelerated and this has paved huge demand for Cement and Steel and therefore your Company
is expecting good amount of jobs in construction of cement plants in the near future.
Over a period of time, your Company has developed the capabilities construction
contracts covering below of executing vertical mentioned comprehensive scope across all
sectors, which will be preferred mode of execution of future contracts and multiple
project execution simultaneously.
Composite Construction Solutions are as follows:
• Civil & Structural Works
• Mechanical & Engineering Work
• Equipment Erection Works
• Shutdown Work
• Piping Works
• Offsite Fabrication Works
• Electrical & Instrumentation Works
• Refractory & Insulation Works
2. OPERATIONS DIVISION WISE ENGINEERING & CONSTRUCTION
During the year (2018-2019) following contract was successfully completed:
- Above Ground Piping Works for SEZ PCG CO-SHIFT TRAIN-2 for J3 Project of Reliance
Industries Limited, Jamnagar.
- Civil and Structural work for JSW Cement Ltd. 2x1.2 MTPA Clinker and Slag Grinding
Unit of JSW Cements Limited at Salboni, Paschim Medinipur, West Bengal.
- Civil work of Plant Building & Silos i.e. Stacker & Reclaimer, Crusher,
VRM-II and Miscellaneous Work at Karnataka (Kodla) Cement Project For M/s. Shree Cements
Limited, Rajasthan.
- Civil and Structural work for 1.2 MTPA Cement Grinding plant at Jajpur, Odisha For
M/s. JSW Cements Limited.
The work on the following projects substantially progressed during the year
(2018-2019):
- Civil work of Plant Building & Silos Miscellaneous Work for Odisha Grinding
Project at Village: Chandrabali, Shyampur Distt, Cuttack, Odisha for M/s. Shree Cements
Limited, Rajasthan.
- Carrying out Civil & Structural, "Fabrication & erection of SS Piping
(inside plant area) and Erection of Equipments"
Electrical and instrumentation works on Cost Plus basis. Pertaining to LNG
Re-gasification Project of M/s IOLPL at Ennore Port, Chennai for M/s. KSS Petron Pvt.
Ltd., Gurgaon.
- Civil and Mechanical works for Line II project at Kolaghat Grinding Unit, West Bengal
For M/s. The Ramco Cements Limited, Tamilnadu.
The Work on the following recently awarded projects have commenced:
- Carrying out Civil & Structural, "Fabrication & erection of SS Piping
(inside plant area) and Erection of Equipments" Electrical and instrumentation works
on Cost Plus basis. Pertaining to LNG Re-gasification Project of M/s IOLPL at Ennore Port,
Chennai for M/s. KSS Petron Pvt. Ltd., Gurgaon (Amendment Order)
- Civil and Mechanical works for Line II project at Kolaghat Grinding Unit, West Bengal
For M/s. Ramco Cements Limited, Tamilnadu (Amendment Order)
ELECTRICAL & INSTRUMENTATION
During the year (2018-2019) following contract has been completed:
- Construction of Electrical & Instrumentation Work (SEZ-AGR) for J3 Project of
Reliance Industries Limited, Jamnagar
Presently, the following Orders of the Division are under execution:
- Supply and erection Contract for Inland transportation, Insurance, Installation,
testing, tests under Electrical equipment supply & erection Package for for National
Thermal Power Corporation Limited
- Supply and erection Contract for Inland transportation, Insurance, Installation,
testing & commissioning of "Electrical equipment supply & erection
Package" for Kudgi STPP, stage I (3x800 MW) for National Thermal Power Corporation
Limited
ROCKWOOL INSULATION & REFRACTORY
During the year, the division has successfully completed the following contracts:
- No Orders during F.Y. 2018-19
Presently, the following orders of the Division are under execution:
- No Orders during F.Y. 2018-19
PETROFAB DIVISION
- No work carried out by Petrofab during F.Y. 2018-19
3. ACHIEVEMENTS
Your Company has successfully completed safe man-hours at Bharat Petroleum
Corporation Ltd. (BPCL), Cement, Salboni, West Bengal; The Ramco Cements Ltd.,
Jayanthipuram; Ultratech Ltd., UTCL Nagpur site, Technip (JBF)
Mangalore, Shree Cement (Aurangabad), Reliance (Jamnagar).
Your Company has also received Best Safety Performance-2016 Trophy from National
Thermal Power Corporation Limited, Kudgi, Karnataka; Certificate of Excellence (first
prize) from Bharat Petroleum Corporation Ltd. (BPCL), Kochi, Kerala; Certificate of
Excellence and other awards from The Ramco Cements Ltd., Jayanthipuram.
Your Company has also received ‘Certificate of Merit from Nation Safety Council
of India-Maharashtra chapter for achieving "ZERO Accident Frequency Rate in the
contest year-2015 for our UTCL Project, Nagpur.
4. OUTLOOK
The year 2018-19 has been challenging year. However, PECL booked orders aggregating to
Rs. 25.83 Crores.
With the expansion of various refineries and fertilizer plant, we have started getting
new enquiries from our clients and expect to get new purchase orders for Carrying out
Electro mechanical construction work.
The Major Orders received during 2018-2019 are as follows:
| Client |
Description |
Order Value |
|
|
(Rs. In Cr) |
| 1 M/s The Ramco Cements Limited |
Civil and Mechanical works for Line II project at Kolaghat Grinding Unit, West Bengal |
12.16 |
| 2 M/s Indian Oil LNG Pvt. Ltd |
Civil & Structural, "Fabrication & erection of SS Piping (inside plant
area) and Erection of Equipments" Electrical and instrumentation works |
13.67 |
| Total Amount |
|
25.83 |
FY 2018-19, will bring prospects for sectors like Refinery, Petrochemical, Power,
Cement and Fertilizer etc.
Infrastructure sector is a key driver for the Indian economy. The sector is highly
responsible for propelling Indias overall development and enjoys intense focus from
Government for initiating policies that would ensure time-bound creation of world class
infrastructure in the country. The Government of India is taking every possible initiative
to boost the infrastructure sector. foreseeing tremendous opportunity in the Cement
sector.
The Indian power sector is undergoing a significant change that has redefined the
Industry outlook. Sustained economic growth and "Make in India" initiative will
continue to drive power demand in India. The Government of Indias focus to attain
‘Power For All has accelerated capacity addition in the country. Therefore, the
Power Sector is expected to throw ample opportunities to your Company which would be the
key growth driver.
In the coming years, with the growth in Agriculture, Fertilizer Industry is also
expected to grow. Your Company is expected to undertake construction jobs in the
Fertilizer Industry.
5. OPPORTUNITIES
Government Initiatives
The Government of India has launched a major National Program "Make In
India", which is been designed to facilitate investment, foster innovation, enhance
skill development, build in best in class manufacturing in the country as well as protect
intellectual property. The primary objective of this initiative is to attract investments
from across the globe and strengthen Indias manufacturing sector. The "Make in
India" program is very important for the economic growth of India as it aims at
utilizing the existing Indian talent base, creating additional employment opportunities
and empowering secondary and tertiary sector. "Make in India" program will be
focusing on 25 sectors. These include: construction of roads highways, ports, railways,
thermal power and, renewable energy.
This would give a boost to the Construction Industry as there would be major Cement
Projects coming up giving an opportunity to your Company in Power & Cement sector.
Your Company though operating in midst of challenging market situation,is is mainly due
to the range of services it offers and to the variety of industries it caters to under: as
Cement
India has a lot of potential for development in the Infrastructure and Construction
sector and the cement sector is expected to largely benefit from it. Cement Industry in
India provides direct / indirect employment to a million people making it a vital part of
Indian Economy. The industry is currently in a turnaround phase, trying to achieve global
standards inproduction, safety, and energy-efficiency. On the back of growing demands, due
to increased construction and infrastructural activities, the cement sector in India will
lead to huge investments.
Major Companies are implementing expansion by awarding Turnkey/Composite construction
contracts and therefore, your is taking necessary steps to participate in such contracts.
Your Company is focused to achieve considerable volume in this sector. With Cement
Companys trend of adding Grinding Units at various different locations, Petron is
constantly focusing on the same.
Oil & Gas, Refineries, Petrochemicals
With the various expansion of Existing refineries and work on new refineries and
petrochemical plants it is expected that your Company will look out for business
opportunities in various refineries and petrochemical plants in the near future.
Already your company has received some new enquiries which are expected to be firmed up
with in next couple of months.
Power
Power or Electricity is one of the most critical components of Infrastructure affecting
economic growth and well-being of nations. The Indian power sectoris one of the most
diversified in the world. The demand for electricity in the country has been growing at a
rapid rate. In order to meet the increasing requirement of electricity, massive addition
to the installed generating capacity in the country is required.
The Indian power sector is undergoing a significant change that is redefining the
industry outlook. The concept of "Make in India" and the Governments focus to
attain ‘Power For All has accelerated capacity addition in the country.
There is a large opportunity in Power Sector as there is a huge shortage of power due
to increasing population and increased industrial consumption. However, due to supply
constraints of coal and gas, major projects in the area of Thermal Power are not taking
off. Your Company is looking forward to opportunities to get new orders in this sector.
Fertilizer
Agriculture plays a vital role in Indias economy. Due to which the requirement of
Fertilizer is very huge for the growth of Agriculture Sector as the consumption of food
grains has increased due to the increased population.
Normal monsoons will lead to enhanced requirement of Fertilizer and therefore the
growth in Fertilizer Company is well placed to execute projects in Fertilizer sector in
the coming years.
Steel
The Steel Industry reflects the overall economic growth of an economy in the
long term as demand for steel is derived from other sectors like automobiles, consumer
durables and infrastructure.
The Indian Steel Industry is very modern with state-of-the-art steel mills. It has
always strived for continuous modernization and upgradation of older plants and higher
energy efficiency levels. India is expected to become the worlds second largest producer
of crude steel.
6. THREATS
As the Government of India is poised to bring in reforms, competition from Companies
will bring threats along with opportunities. Stiff in the field of hydro-carbon, Steel,
cement and power sectors is expected as the economy is opening up for foreign direct
investments.
7. FUTURE PROSPECTS
The recent passage of the Insolvency and Bankruptcy Code, 2016 (‘IBC) has been a
major change in the environment of the Company.
The Honble National Company Law Tribunal (‘NCLT), Mumbai Bench, on 23rd March,
2018 admitted the application made by M/s. Kohinoor Crane Service and M/s. Industrial Gas
Distributors, the Operational Creditors under Section 9 of the Insolvency and Bankruptcy
Code, 2016 and pronounced the commencement of the Corporate Insolvency Resolution Process
(‘CIRP) of PETRON ENGINEERING CONSTRUCTION LIMITED and appointment of Mr. Rajeev
Mannadiar as the Interim Resolution Professional (‘IRP)videitsorderdated23 rd
March,2018 in CP No. 1374/IBC/NCLT/MB/MAH/2017 & CP No. 1526/IBC/NCLT/MB/MAH/2017.
At the first meeting of Committee of Creditors (‘CoC) of Petron, the members
resolved to appoint Mr. Udayraj Patwardhan as the Resolution Professional (‘RP).
Consequently, Mr. Udayraj Patwardhan was appointed as the RP pursuant to the Order of the
Honble NCLT, Mumbai vide order dated 6th August, 2018.
Professional has invited Expression of Interest (‘EoI) from prospective bidders
for submission of Resolution TheResolution Plans for revival of the Company. The Company
has a good brand name in the industry and in the last 40 years it has established itself
as a reliable EPC contractor.
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