Triveni ties up with GE for oil & gas sector compressors

NEW DELHI: Triveni Engineering has struck a strategic alliance with General Electric (GE) to enter the domestic market for high-speed compressors which are used in the oil & gas sector. Triveni is targeting to capture 25-30 % share of the domestic market estimated to be worth of Rs 500 crore by 2010.

As per the deal, which initially runs for five years, Triveni will import bare compressors from GE Oil & Gas sourced from its US-based facility . It would then get engaged in engineering design, manufacturing and assembly of the package. Thereafter , it would be handling the sales of the packaged product apart from after sales service.

According to Triveni Engineering chairman and managing director Dhruv Sawhney: “We would not require to make too much capital expenditure for the project as we already a unit at our Bangalore facility .

Moreover, the working capital requirement will also be minimal. As for sales, it would significantly add to our toplines in three years time.” Triveni has two distinct lines of business: sugar manufacturing and engineering.

“Oil and gas is the fastest-growing segment within our infrastructure portfolio and we see it as a big part of India’s infrastructure growth. Our agreement with Triveni is a key step in our localisation and partnership strategy,” said GE Infrastructure (India) president & CEO Pratyush Kumar.

GE clocked revenues of $1.9 billion in India during 2006 and is expecting to hit a turnover of $3 billion in the current year.