Reliance Infra targets 5k-cr revenue from EPC business

After transferring 433 MW of power generation assets to Reliance Power (R-Power ), ADAG-group promoted Reliance Infra (R-Infra) is now betting big on its EPC business. The EPC order book currently stands at 19,000 crore and despite a drop of revenues in this vertical in the last quarter, the company is confident of achieving 4,000–5,000 crore for FY11. The company is the front runner in R-Power UMPPs and is also expanding its orderbook with metros, sealink and external projects.

Sources tell ET NOW that the company may be looking at de-merging this business segment, which contributes about 7% to its value. Lalit Jalan, CEO of Reliance Infrastructure, in an exclusive interview with ET NOW, said: “While we have not had any discussions on the demerger yet, we will consider the opportunity if it creates value for our shareholders.” The company also has plans to list its different verticals at a later stage. “As these companies will become larger, at some stage R-Infra will look at the space when the opportunities arise,” said Mr Jalan.

The company is currently present in all avenues of power and infrastructure. The power business consists of generation, distribution and transmission. The infrastructure business consists of urban transportation, roads and airports. The newer avenues include cement where the company is looking to set up 20-million tonne cement capacity in next five years at a cost of 10,000 crore.