Our strategy is to grow from the current $3.3 billion to $7 billion worldwide by 2020
OIL & GAS

Our strategy is to grow from the current $3.3 billion to $7 billion worldwide by 2020

G Sathiamoorthy, Country Manager & Managing Director, Black & Veatch

One more year and Black & Veatch will celebrate its centenary worldwide. No surprise for a company with a global turnover of over $3.3 billion and a peerless track record of proven concept, completion, startup, operation and modification solutions. Operating in India for over 40 years, Black & Veatch offers valuable solutions to complex challenges in power, oil and gas, water and telecommunications. In conversation with G Sathiamoorthy, Country Manager & Managing Director, Black & Veatch, SHRIYAL SETHUMADHAVAN learns more about the company's global expertise and its solutions for India.

Highlight Black & Veatch's contribution to India over the years.

We have tried to bring concept to commissioning solutions in the fields of energy, oil and gas, water and telecom. Going by our motto, we try to offer world-class solutions with a local flavour. Also, adding to our strengths, unlike many other companies, we own technologies in sulphur recovery units and sulphur handling and degassing. By sheer capacity and not clients, we have supplied almost 90 per cent of the sulphur treatment capacity in India in the refinery sector. In the oil and gas sector, we have had the opportunity to work twice with Reliance Petroleum, Jamnagar, and have done one of the biggest consultancies in this area.

As for the power sector, name a big capacity project and we have been involved - though not directly in the construction part of it. In India, we have worked with Reliance Infrastructure, this being one of the big capacities. We have been involved in a big, six-line 3,960 MW plant. On the technology front, we own Prico liquefaction technology, where the gas that comes from the fields is liquefied with this power proprietary technology. This may not be very relevant in India because we don't have much gas for export. However, many clients in India are certainly looking at floating L&G solutions and this is where we will be able to offer our solutions.

Further, we have been involved with the Kerala Water Board for water plant projects and have been a consultant for the Mumbai Municipal Corporation for some sewage projects.

In addition, recently, we have executed big projects in London through our Indian office.

Tell us about your most challenging project in India.
As an EPC consultant, we have designed one of the biggest capacities for Reliance Power. There were design complications and, during construction, we had to undertake equipment and network in a restricted time schedule. This is one of the most aggressive schedules we have had to meet.

How do you view opportunities in the power sector in India?
At present, it is quite dull. But with the momentum picking up, there has been good response for the two ultra mega power projects (UMPPs) in Odisha and Tamil Nadu and all bidders have been qualified. Being big-ticket projects, even the Government is quite dedicated towards ensuring these are implemented. Energy requirement is one of the biggest challenges for India. The country's growth depends on infrastructure growth and energy will top the list. Overall, there is a lot of optimism; we look forward to the upcoming elections after which things should start moving.

With the Cabinet Committee on Investment clearing big-ticket projects in the oil and gas sector, where do you see the sector heading to?
The oil and gas sector has been one of the prime movers in terms of infrastructure investment. In 2013, we did see a lull owing to fluctuations in dollar rates. However, finally in December we observed foreign institutional investors investing back into India. This is a good sign because this will stabilise oil prices as well. Also, this year will witness huge investments in oil and gas refineries and other refineries along with expansion through blocks. And as the fertiliser and power requirements go up, we will initiate these investments as well. Gas itself will play a crucial role and the LNG terminal will be the business to watch out for.

What are the challenges you face while using construction equipment or materials for your projects?
Construction in India is labour-intensive and not very mechanised. That is one of the reasons project costs tend to be low in India compared to Gulf countries, Europe or the US, where construction cost is 40 per cent more. We have been using some new construction materials in our projects but this ultimately depends on our client's requirement. In terms of construction equipment, big cranes are a challenge because they are not assets owned by construction companies. Safety is also an important factor here - not just safety on site, but safe ways of working with equipment, testing it and ensuring accident-free execution on site.

The company has introduced a smart grid programme across North America. How relevant is such a solution for a country like India?
Smart grids mean optimum use and distribution of electricity. We are talking about combining telecom solutions with power transmission. This will help understand which part of the country consumes more electricity. The data can be analysed over a period of time and this can be further incentivised. This is very relevant, especially for a country like India, which currently faces power crises and slow infrastructure development.

The year 2013 was a challenging one in India. What are your expectations from 2014-15?
As an international group, we depend on jobs in India as well as other countries. This said, 2013 has not been a very bad year. Our strategy is to grow from the current $3.3 billion to $7 billion worldwide by 2020. And India will play a key role in terms of revenue contribution. This year, we expect the sector to pick up in the second half and there will be some movement. We just have to be patient for some more time. Also, within Black & Veatch, we have set ourselves a vision for our Indian entity for 2020. The aim is to grow our resources in India from the existing 400 to about 2,000 to execute jobs here, contribute to the topline significantly and deliver world-class solutions.

Year of establishment: 1915

Top management: Steve Edwards, Chairman, President & CEO; G Sathiamoorthy, Country Manager & Managing Director
No of employees: Over 10,000 (420 employees in India)
Centre(s) of operation: Kansas City (HQ), Mumbai, Pune (India centres). The company has executed projects in the US, UK, Latin America, GCC Region, Central Europe and Southeast Asia.

Ongoing projects: Oversee construction of seven Saint Louis sewer tunnels; Black & Veatch and Thiess to renew ageing water assets in Melbourne; Black & Veatch and Chemtex help change Chinese fleet vehicles to natural gas fuel; Engaged in Scottish water hydropower programme; Wison and Black & Veatch to jointly pursue offshore LNG projects.

Completed projects: Glow Energy, Glow Phase-5 Cogen Project, Thailand; Reliance Infrastructure, Sasan Ultra Mega Power Project, Madhya Pradesh; Reliance Petroleum, Jamnagar Export Refinery; Government of Oman, Wadi Dayqah Dam, Oman; Thames Water, Old Ford Water Recycling Facility.

Turnover: Over $3.3 billion

Suggestions on contractors to be covered? Write in at feedback@ASAPPmedia.com

G Sathiamoorthy, Country Manager & Managing Director, Black & Veatch One more year and Black & Veatch will celebrate its centenary worldwide. No surprise for a company with a global turnover of over $3.3 billion and a peerless track record of proven concept, completion, startup, operation and modification solutions. Operating in India for over 40 years, Black & Veatch offers valuable solutions to complex challenges in power, oil and gas, water and telecommunications. In conversation with G Sathiamoorthy, Country Manager & Managing Director, Black & Veatch, SHRIYAL SETHUMADHAVAN learns more about the company's global expertise and its solutions for India. Highlight Black & Veatch's contribution to India over the years. We have tried to bring concept to commissioning solutions in the fields of energy, oil and gas, water and telecom. Going by our motto, we try to offer world-class solutions with a local flavour. Also, adding to our strengths, unlike many other companies, we own technologies in sulphur recovery units and sulphur handling and degassing. By sheer capacity and not clients, we have supplied almost 90 per cent of the sulphur treatment capacity in India in the refinery sector. In the oil and gas sector, we have had the opportunity to work twice with Reliance Petroleum, Jamnagar, and have done one of the biggest consultancies in this area. As for the power sector, name a big capacity project and we have been involved - though not directly in the construction part of it. In India, we have worked with Reliance Infrastructure, this being one of the big capacities. We have been involved in a big, six-line 3,960 MW plant. On the technology front, we own Prico liquefaction technology, where the gas that comes from the fields is liquefied with this power proprietary technology. This may not be very relevant in India because we don't have much gas for export. However, many clients in India are certainly looking at floating L&G solutions and this is where we will be able to offer our solutions. Further, we have been involved with the Kerala Water Board for water plant projects and have been a consultant for the Mumbai Municipal Corporation for some sewage projects. In addition, recently, we have executed big projects in London through our Indian office. Tell us about your most challenging project in India. As an EPC consultant, we have designed one of the biggest capacities for Reliance Power. There were design complications and, during construction, we had to undertake equipment and network in a restricted time schedule. This is one of the most aggressive schedules we have had to meet. How do you view opportunities in the power sector in India? At present, it is quite dull. But with the momentum picking up, there has been good response for the two ultra mega power projects (UMPPs) in Odisha and Tamil Nadu and all bidders have been qualified. Being big-ticket projects, even the Government is quite dedicated towards ensuring these are implemented. Energy requirement is one of the biggest challenges for India. The country's growth depends on infrastructure growth and energy will top the list. Overall, there is a lot of optimism; we look forward to the upcoming elections after which things should start moving. With the Cabinet Committee on Investment clearing big-ticket projects in the oil and gas sector, where do you see the sector heading to? The oil and gas sector has been one of the prime movers in terms of infrastructure investment. In 2013, we did see a lull owing to fluctuations in dollar rates. However, finally in December we observed foreign institutional investors investing back into India. This is a good sign because this will stabilise oil prices as well. Also, this year will witness huge investments in oil and gas refineries and other refineries along with expansion through blocks. And as the fertiliser and power requirements go up, we will initiate these investments as well. Gas itself will play a crucial role and the LNG terminal will be the business to watch out for. What are the challenges you face while using construction equipment or materials for your projects? Construction in India is labour-intensive and not very mechanised. That is one of the reasons project costs tend to be low in India compared to Gulf countries, Europe or the US, where construction cost is 40 per cent more. We have been using some new construction materials in our projects but this ultimately depends on our client's requirement. In terms of construction equipment, big cranes are a challenge because they are not assets owned by construction companies. Safety is also an important factor here - not just safety on site, but safe ways of working with equipment, testing it and ensuring accident-free execution on site. The company has introduced a smart grid programme across North America. How relevant is such a solution for a country like India? Smart grids mean optimum use and distribution of electricity. We are talking about combining telecom solutions with power transmission. This will help understand which part of the country consumes more electricity. The data can be analysed over a period of time and this can be further incentivised. This is very relevant, especially for a country like India, which currently faces power crises and slow infrastructure development. The year 2013 was a challenging one in India. What are your expectations from 2014-15? As an international group, we depend on jobs in India as well as other countries. This said, 2013 has not been a very bad year. Our strategy is to grow from the current $3.3 billion to $7 billion worldwide by 2020. And India will play a key role in terms of revenue contribution. This year, we expect the sector to pick up in the second half and there will be some movement. We just have to be patient for some more time. Also, within Black & Veatch, we have set ourselves a vision for our Indian entity for 2020. The aim is to grow our resources in India from the existing 400 to about 2,000 to execute jobs here, contribute to the topline significantly and deliver world-class solutions. Year of establishment: 1915 Top management: Steve Edwards, Chairman, President & CEO; G Sathiamoorthy, Country Manager & Managing Director No of employees: Over 10,000 (420 employees in India) Centre(s) of operation: Kansas City (HQ), Mumbai, Pune (India centres). The company has executed projects in the US, UK, Latin America, GCC Region, Central Europe and Southeast Asia. Ongoing projects: Oversee construction of seven Saint Louis sewer tunnels; Black & Veatch and Thiess to renew ageing water assets in Melbourne; Black & Veatch and Chemtex help change Chinese fleet vehicles to natural gas fuel; Engaged in Scottish water hydropower programme; Wison and Black & Veatch to jointly pursue offshore LNG projects. Completed projects: Glow Energy, Glow Phase-5 Cogen Project, Thailand; Reliance Infrastructure, Sasan Ultra Mega Power Project, Madhya Pradesh; Reliance Petroleum, Jamnagar Export Refinery; Government of Oman, Wadi Dayqah Dam, Oman; Thames Water, Old Ford Water Recycling Facility. Turnover: Over $3.3 billion Suggestions on contractors to be covered? Write in at feedback@ASAPPmedia.com

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