Engineers India Ltd Aims for Growth in the Middle East as Energy Transition Nears

State-owned Engineers India Ltd (EIL) (ENGI.NS) is setting its sights on Middle Eastern markets as the world edges closer to a major energy transition, according to the company’s chairperson. Recognizing the importance of boosting oil production in the interim, EIL aims to capitalize on opportunities available in the Middle East.

“Harnessing the benefits of increased production prior to the onset of energy transition is our prime focus,” EIL Chairperson Vartika Shukla announced during an earnings conference on Friday. “The Middle East offers significant potential, and our efforts are geared towards solidifying our presence there.”

To better accommodate regional requirements, EIL has notably expanded its staff strength at its Abu Dhabi office. The number of employees has surged from 23 to 84, highlighting the company’s commitment to the region.

Diversification into New Verticals

Historically known for its expertise in oil and gas infrastructure, EIL is now exploring new avenues for growth. The company is diversifying its offerings into sectors such as hydrogen, carbon capture, biofuels, fertilisers, and steel. This strategic expansion not only underlines EIL’s innovative mindset but also its preparedness for the imminent energy transition.

The impact of these efforts is already visible in the company’s financials. The share of international business in the new orders received so far this fiscal year stands at 30%, a substantial jump from about 15% in the 2022/23 fiscal year.

EIL’s Current Projects and Future Plans

EIL’s current order book is valued at 90.79 billion Indian rupees ($1.10 billion). This includes projects for which companies have given an initial go-ahead. The firm is currently undertaking projects for leading companies such as Hindustan Petroleum Corp (HPCL.NS), Indian Oil Corp (IOC.NS), and Mangalore Refinery and Petrochemicals (MRPL.NS).

EIL is also making strides in international markets. It is currently building a refinery in Mongolia and a urea project in Africa. Furthermore, the company is proud of its recently commissioned Dangote refinery in Nigeria, marking a significant achievement in its portfolio.