Last updated : July 20, 2024 11:49 am
The company is directing its focus towards green energy and hydrogen technologies in line with emerging trends
What is the global and Indian EPC market size with respect to chemical and petrochemical? Where does Nuberg stand?
The global chemical and petrochemical EPC market is projected to be valued at US$ 456.91 billion in 2024, with an anticipated growth to US$ 576.52 billion by 2029, representing a CAGR of 4.76%. Within the Indian context, this market segment is estimated at US$ 178 billion, expected to reach US$ 300 billion by 2025. Nuberg maintains a strong presence in the Indian market, focusing on the chemical, steel, hydrocarbon, green hydrogen and fertilizer sectors. The company plays a significant role and actively participates in these industry verticals.
Nuberg's focus in the last fiscal and what's your focus in the coming fiscal?
We focus on chemical process plants and have been working on different types of chemical process plant technologies like Chlor-Alkali, Sulphuric Acid and Hydrogen Peroxide. Likewise, we are currently undertaking several projects in the hydrocarbon sector. For instance, we are executing projects such as the Sulphur Recovery Unit (SRU) and the Propylene Purification Unit (PPU) for Indian Oil Corporation Limited (IOCL), along with the NPK Fertilizer project for FACT. Again, there are projects in upcoming fields that we have segmented, such as green energy, which includes projects like Bio-Ethanol and making green hydrogen.
We have successfully delivered India's First Hydrogen Fuelling Station in Vadodara for IOCL, a project that has been fully commissioned. In line with emerging trends, the company is directing its focus towards green energy and hydrogen technologies.
Leveraging our extensive experience of over 28 years in hydrogen management, including the successful delivery of Hydrogen Plants, Nuberg is now embarking on various projects centred around green hydrogen. Our ongoing initiatives include the exploration and development of cutting-edge technologies, such as electrolyzers for hydrogen production.
Nuberg has its own manufacturing unit called Indian Peroxide Limited (IPL). Performance of IPL and any expansion that you are planning?
Indian Peroxide Limited (IPL) diversified from Nuberg, which started its first plant for Hydrogen Peroxide. It was commissioned in mid-2018 and after that, the company expanded and doubled its capacity. The initial plant capacity was around 125 TPD and post-expansion, the present capacity is around 300 TPD.
IPL is an emerging company of Nuberg Group with huge growth potential. We will be investing in upcoming projects that are in the pipeline and will soon be declaring the next project for IPL.
In terms of revenue, how has the company performed in FY 2023–24?
In the fiscal year 2023–24, the Nuberg Group, encompassing both the EPC business and equipment manufacturing, is projected to achieve a turnover of approximately Rs. 1,000 crore. This figure excludes the revenue generated by Indian Peroxide, as it operates as a separate legal entity. Notably, we have recently completed expansion projects, and the initial plant in operation is anticipated to yield a turnover of roughly Rs. 120 crore in the same fiscal year. Looking ahead to 2024-25, our objective is to double the turnover.
Most of the players in chemical and petrochemical are talking about expansion, either brownfield or Greenfield. How are you looking at the current fiscal situation?
There are a lot of expansions, with many new projects coming up. We are quite well placed and would have an order booking worth Rs. 2,000 crore as of today. We have been growing at a very good pace and we are confident of continuing at the same pace.
Nuberg is expecting good revenue growth, so are you looking at increasing your manpower?
As a company on a growth trajectory, Nuberg recognizes the pivotal role of manpower in our line of business. Over the past several years, we have consistently expanded our workforce. Presently, we employ over 460 engineers, contributing to a total of 400,000 engineering man-hours. While it is challenging to predict the exact number of hires for the upcoming year, we anticipate recruiting additional personnel across various fields and disciplines to meet our evolving needs.
How has been FY 2023-24 for Nuberg?
This year has been exceptionally fruitful for the company, with revenues reaching approximately Rs. 1,000 crore. We successfully commissioned several noteworthy projects and embarked on initiatives involving cutting-edge technologies. Notably, we have recently finalized the commissioning of Hydrogen Peroxide plants in Uzbekistan and Egypt, each with a daily capacity of 85 and 70 tons, respectively.
Regarding new projects awarded domestically, Nuberg is actively engaged in several significant endeavours. We are currently involved in the construction of a sulphur recovery unit for IOCL Vadodara, as well as the execution of an NPK fertilizer plant in Kochi for FACT. Additionally, we have been entrusted with the construction of a PPU unit by IOCL Panipat. In the chemical sector, we have secured the contract for India's largest Chlor-Alkali Project, with a capacity of 2200 TPD, awarded by the Adani Group. The commissioning of this plant is scheduled to be completed within fifteen months.
Moreover, we have executed a Bio-Ethanol plant for IOCL Panipat. It has been a prestigious project in Make in India with Made by India technology. We have also commissioned India's first Hydrogen Fuelling Station. It is a trial project by the government and is doing quite well.
In terms of international projects, we are setting up a Sulphuric Acid plant in the Czech Republic, Egypt, Saudi Arabia and Turkey. We are executing a Calcium Chloride project in Oman and a Hydrogen Peroxide plant in Indonesia. Apart from these, there are various projects in Turkey, Egypt and other countries.
What portion of your revenue comes from exports?
If you look at current financial numbers, the revenue from exports would be around 55 to 60 percent.
Are you looking to increase your international exposure and what kind of projects are you looking for globally?
Our operations encompass over 30–32 countries, providing significant international exposure. In our pursuit of new projects, we adopt a balanced approach, actively participating in both international and domestic markets. This strategy is aligned with our core objective of "Making Ideas Happen" and remains integral to our future endeavours.
Are you seeing any particular trend with respect to sustainable technologies? Do you see any licensing agreements that need to be changed or do you see any technology coming up to change the overall scenario?
When we say EPC into chemical plants, there are various technologies in the market for different chemical plants. Whatever new chemical technologies we are working on, there is always a continuous process of improvement. We are very closely integrated into working on new technologies. We have our own technology for Hydrogen Peroxide which has three patents as of today.
The most upcoming thing is green hydrogen, whether it is to do with the electrolyzer for water electrolysis or into purification or green ammonia. For sustainability, it is a very important step that the world has taken and there is a tremendous amount of development. This emerging trend is garnering significant attention from numerous companies, and we are likewise receptive to exploring projects in compressed biogas (CBG) moving forward.
What are your plans for the current financial year?
In the forthcoming financial year, our strategic focus is on pioneering advancements in green energy technologies. This initiative aligns with the industry's growing emphasis on sustainability and renewable energy solutions. Additionally, we are gearing up for our next phase of expansion in Indian Peroxide Ltd., aiming to commence a new project that will further solidify our position in the market. Given our robust order book and the positive outlook for the EPC industry, we anticipate significant growth and are poised to capitalize on emerging opportunities.