Aiming a revenue of Rs. 350 crore and EBITDA around 11% for FY 2023-24: Vikas R. Bhatia, Managing Director, Rieco Industries

  • June 04, 2023

Rieco Industries Ltd. is setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

Major milestones achieved by Rieco during FY2022-23? Key targets set by the company for FY 2023-24?

Rieco has achieved record levels of order booking, both in international and domestic markets. Order growth of nearly 100% over last year and a substantial order backlog is a positive sign for us. The targets for this year will be to further accelerate by innovating, adding more solutions by investing in R&D, adding to our customer footprint and industries that we serve. One of the focus areas for Rieco would be to add more Industry 4.0 solutions which involves robotics, Artificial Intelligence/Machine Learning (AI/ML), etc. Through these product and solution level innovation, we will strive to be ahead of other players in the market.

Rieco recently bagged two large contracts worth Rs. 100 crores from the paint and petrochemical sector? Would you like to share the details? Key deliverables and timelines of the two projects?

In the first contract, we are overseeing construction and commissioning of paint raw material storage silos across three locations in India. The customer is making a big foray into the paints business and aims to challenge the market leader Asian Paints. In this construction of more than 80 silos with capacities up to 550 cubic meter, lot of critical technologies like tractor welding machines, auto beveling machines, and high capacity cranes of 500 T lift are being used. The deliveries have already started and it is expected to be completed by July 2023.

Secondly, we have been engaged by a Lithuania-based client who is a leading player in the oil and gas sector. Our scope of work for this project involves the supply of material handling systems to feed catalysts to the reactors. The demanding nature of industry and environment means that most equipment is being designed for operations at freezing temperatures of -35 degree centigrade. Additionally, they must be certified for safe operations in zone 21 and 22 and must confirm to CE/ATEX standards.

Being a leading player in powder and bulk solid technology, what have been your notable deployments in FY2022-23?

Apart from the two very large projects, we have several firsts and notable projects deployed. One is a very large size fluidized bed with diameters of 28 m for an aluminum storage silo. Then others involve complex material handling needs for wall putty (dry mortar) making and mixing plant for large paint players. We also got orders for ATEX rated equipment in which we are designing and constructing screw conveyors. 




How is the company leveraging its new facility in Ankleshwar and other facilities in Alandi and Chakan Phase 3? How have these facilities helped in capacity expansion for the company in terms of production?

All these plants have been equipped with both CNC high precision machines and also conventional manually operated machines. Through these, we can manufacture very high precision and quality equipments which are critical to the working of the integrated systems we design for our customers. Through these facilities, we have been able to witness better traction and confidence from our customers. Apart from direct addition to the revenue, there is a huge multiplier effect in our ability to get business.

Tell us more about your plans to add a fourth facility in FY 2023-24 in terms of Capex, location, and manufacturing?

Currently, the plans to add a fourth facility are under evaluation. Possible locations could be in Gujarat or Uttar Pradesh other than Pune. The exact numbers are still to be worked out, but the quantum of investments would range from Rs. 15-20 crore.

Objectives behind hiring 200+ new employees in the next 18 months? Expected outcomes and how will it drive the company's growth?

We are now 300+ already. We are a project-based company and with the robust inflow of orders, we also need to ramp up the employee resources to be able to fulfill the growing demand. The addition of human resources to our pool would increase our delivery capabilities, directly increasing the revenue.

Your revenues and profitability numbers during FY 2022-23? What is the forecast for FY 2023-24?

For FY 2023-24, we expect to have a revenue of Rs. 350 crore and EBITDA of around 11%. Our current year numbers are being audited so cannot disclose these now. 

How do you see the industry trends unveiling during the upcoming year and how is Rieco planning to leverage it in the long run?

Industry is moving towards adopting higher levels of automation and making the processes energy efficient. We are setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

How has the company managed consistent technology upgrades to fulfill its customers’ evolving needs both nationally and internationally?

Technology upgrades are necessary, and we have added several new products and solutions to our portfolio. One of our successful products has been the Powtran which is a vacuum unloading system. Through these world class solutions we aim to serve the evolving needs of the customers.