BUSINESS

Shriram EPC forms venture with Belgian group

K. T. Jagannathan

To be active in wet cooling, air pollution control market

Shriram to hive off cooling tower businessThe new entity will have Rs. 10 cr. as capital

CHENNAI: Chennai-based Shriram EPC Ltd., a project engineering company, has initialled an agreement with Hamon Group of Belgium to form an equal joint venture in India to provide end-to-end engineering solutions for wet cooling and air pollution control projects.

Consequently, Shriram EPC will hive off its cooling tower business (worth around Rs. 20-25 crore) with associated manpower (numbering around 30) and merge it with the Indian arm of the Belgium Group, Hamon Thermopack Engineers Ltd., which will, in turn, be renamed Hamon Shriram Cottrell.

T. Shivaraman, Director of Shriram EPC Limited, told The Hindu that the renamed entity would have a capital base of Rs. 10 crore initially. This would be increased subsequently.

Hamon Thermopack Engineers has been in operation for over two decades. The Belgian Group took over the company a few years ago, he said.

Mr. Shivaraman estimated the revenue of Hamon Thermopack at around Rs. 15 crore.

The joint venture company would be active in the fast growing wet cooling and air pollution control market, which was estimated to be in the range of Rs. 1,400 crore to Rs. 2,000 crore.

Both Shriam and Hamon were already collaborating in the wet cooling market through a joint operation agreement since 2005. Together, they booked new orders worth around Rs. 50 crore in 2006. Following the formation of the joint venture, Hamon Shriram Cottrell would get into air pollution control systems through a licence agreement for using the Hamon Research Cottrell technologies (with some restrictions in the cement market).

All formalities related to the formation of the joint venture would be completed by the end of the current financial year, Mr. Shivaraman said.

The Hamon Group is a world player in engineering and contracting (design, installation and project management).

Its activities include design, manufacturing of critical components, installation and the after-sale services of cooling systems, process heat exchangers, air pollution control (APC) systems and chimneys.

Shriram EPC is focused on engineering and contracting for thermal and wind power plants, metallurgical projects and municipal services.