Techno Electric and Engineering Company Limited

Techno Electric and Engineering Company Limited is a large EPC contracting company that is focused on the Indian power sector. We also possess specific domain knowledge that enables us to serve the Steel, Fertilizer, Metals and Petrochemicals sectors along with specialized jobs in diversified manufacturing.

The company was formed in 1963 with a mission to provide comprehensive engineering procurement and construction services to core sector industries in India

Since inception, Techno has groomed itself in the field of comprehensive engineering, procurement and construction services for Fuel Oil Storage and Handling System, Comprehensive Piping systems including Power Cycle Piping, Process Plant installation, Fire Protection Systems, EHV Switchyards, EHV Sub Stations, Power Plant Cabling System, Plant Electrical Distribution System including Plant Earthing Systems and Lightning Protection System and Plant Illumination Systems. All in the largest sizes and complexities installed nation wide.

Techno has worked in one capacity or other in setting up of more than 50% of the Power Generating capacity in the country (more than 50,000 MW) and has similarly participated in building more than 50% of National Grid for execution and transmission of Power from one region to another.

Today we are actively involved in APDRP and Rajiv Gandhi Rural Electrification Program of Govt. of India. We have also acquired in recent past, capabilities in setting up small capacity Power Plants and executing Balance of Plant jobs for larger capacity Thermal/Hydro Power Plants.

Bearing testimony to Techno's quality and consistency of performance, not to mention its position as a market leader, are the repeat orders from industrial giants such as NTPC, POWER GRID, BHEL, MSEB and BSES, amongst others.

key devalopments

* The comnpany has received major orders from Tata Chemical and Rajasthan Vidyut .
* It has order backlog of Rs 650 crore which are executable in 18 months.

* It has cash in hand Rs 170 crore.

* Order book for generation business is of Rs 450 crore, Transmisson is Rs 350 crore, Rs 100 for Distribution and 15 crore for Refinery.

the Company has bagged many prestigious orders, the major amongst them, are for Setting up of 2 x 40 M W Waste Heat Recovery based Power Plant for Bengal Energy Limited; Fuel Oil Handing System for2 x 600 MW HisarTPP at Hisar, Haryana through Reliance Energy Limited; Ash Water

Recirculation and Treatment System Package for Farakka STPP, Stage-Ill (1 x 500 MW) and Korba STPP, Stage-II (1 x 500 MW) of NTPC Limited; Water Intake system for 2 x 500 MW Simhadri TPS ofNTPC Limited; Fabrication and Installation of Aluminium Bus Bar System at Jharsuguda Smelter Complex of Vedanta Aluminium Ltd; Turnkey execution of 400 KV GSS at Hindaun, Jaisalmer and Banner (Extension) Sub-Stations of Rajasthan Rajya Vidut Prasaran Nigam Ltd; EPC construction of 2 Nos. 400 KV Line Bays for Vijayawada TPS, Stage-IV, Unit-7 of APGENCO; EPC Construction of 132/33 KV Sub-Station at Kurseong of West Bengal State Electricity Transmission Co. Ltd; 132 KV Receiving Station at Bina Refinery Project of Bharat Oman Refinery Ltd at Bina (M.P); Power Distribution Package at Bhatinda Refinery Project of HPCL-Mittal Energy Ltd; Power Distribution Package in setting up of Coach Factory of East Central Railway at Harnaut, Bihar; Electrical Installation work for New Parli TPS, Unit-2 (250 MW) and for Paras TPS, Unit-2 of MSPGCL and Sub-Station Package (Package-C) for Sub- Transmission System associated with BSTS, Phase-II, Part-II of BSEB from PGCIL.

Company has participated in many prestigious tenders in Public and Private Sectors and some of them in which it is competitively placed are likely to be finalized shortly in Companys favour.

DIVERSIFICATION

Company has ambitious programme to be a major power producer in the field of Non-conventional Energy through setting up of Bio-Mass Power Generating Units all over the country and has already obtained licenses for 2 Nos Units and obtained permission to set up 10/12 MW Bio-Mass based-Power Plants, one in North Dinajpur District of West Bengal and the other in Rajgarh District of Madhya Pradesh. These projects are programmed to be completed during the year 2009-10. These projects are being taken up through a special purpose vehicle and are fully owned by your Company.

Company has also been selected as a Franchisee for power distribution for Barwala & Narnaund Sub-Divisions of Hisar Circle by Dakshin Haryana Bijli Vitran Nigam, Haryana. The agreement is under negotiation and is scheduled to be signed shortly. The total load involved is 85 MVA with a consumer base of+55000.

FUTURE OUTLOOK

The key concern in the power sector is that the capacity addition has not been in commensurate with the increase in demand for power. After dismal performance in the 10th plan the government set another ambitious target for me 11th plan of 78577 MW. In the first year of the plan i.e., 2007-08 an addition of 9263 MW was made which is again 57% of the target of 16336 MW. Although the annual rate of capacity addition has improved significantly over last 2 years, it has to double to meet the ambitious target set for the 11th plan period. However the silver lining is the projects over 53300 MW are under construction comprising 68% of the total 11th plan target.

Taking note of the various constraints like fuel availability, equipment crunch both for main equipment and Balance of Plant, the Government has revived the system of allotting coal blocks to Power Generating companies and also expressed the need of setting up of more equipment manufacturing companies like BHEL. The competitive bidding route for setting up/developing Ultra Mega Power Project in Private Sector with all clearances in place is a step in right direction. With efforts being made on almost all the fronts to address these bottlenecks, it is likely that performance during the 11th Plan will be much better than the 10th Plan.

To achieve the inter-regional power transmission capacity of 37150 MW by 2012 through creation of transmission super highways, the Government plans to set up a number of 765 KV Sub-Stations interconnected with matching transmission lines. In addition, the state Grids are also being up-graded to 400 KV from the present network of 220/132 KV. The focus is to utilize the unevenly distributed generation resources in the country to their optimal use by creating stable and reliable National Grid.

In the power distribution segment the emphasis is to reduce the huge technical and commercial losses through Accelerated Power Development and Reform Programme (APDRP) schemes for Urban/semi-Urban areas and through Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) for rural areas as recommended by the task force constituted by the Ministry of Power. Now the RGGVY Scheme has come under the ambit of Bharat Nirman.

Company has active participation in all the above schemes and has already bagged certain prestigious orders. Further, the Company has availed new opportunities in the Power Sector through diversification like setting up of Bio-Mass based Power Generation projects under Non-conventional Energy scheme, to be a Power Distributor as Franchisee and your Company will continue to explore all possibilities to reap the benefits of the same.

Company has a very small gross block of less than Rs 10 cr. It is not only a debt free company but a cash rich company having liquid investment worth Rs 150 cr and cash balance of approx Rs 25 cr which is equivalent to almost Rs 30 per share. Investors are strongly recommended to buy at sharp declines with a price target of Rs 200 in 15~18 months.