KEC International, actively diversifying from its traditional area of power T&D-related EPC contracting, has entered into a definitive agreement to acquire 100 per cent equity in Spur Infra, an Indian EPC company engaged in the oil & gas pipeline sector.
In a release, KEC said that the acquisition would be made at an enterprise value of Rs.62 crore, and is expected to close within 60 days from the date of agreement.
Spur Infra’s core competence
Incorporated in 2016, Spur Infra (officially, Spur Infrastructure Pvt Ltd) is engaged in setting up of cross country oil & gas pipelines and city gas distribution networks. In the last three years, Spur Infra has recorded annual revenue in excess of Rs.100 crore, a profitable track record, technical expertise, and experienced manpower.
Spur Infra has an order book of around Rs.600 crore comprising of cross-country pipelines and city gas distribution network projects from marquee customers.
Also read: KEC International Furthers Presence In Metro Rail Space
Fits diversification strategy
Acquisition of Spur Infra is in line with KEC’s strategy to diversify into adjacent areas of growth. KEC’s proven project management capabilities and extensive experience of executing cross-country linear projects and managing right-of-way, along with Spur Infra’s technical knowhow, experienced manpower and relevant pre-qualifications will enable KEC to capture the lucrative growth opportunities in the oil and gas cross-country pipelines EPC sector in India as well as in international markets.
Growth enabler
According to Vimal Kejriwal, MD & CEO, KEC International Ltd. commented, “We launched the oil and gas pipelines EPC business in line with the government’s thrust in the sector and our strategy to diversify the business portfolio into adjacencies. This acquisition will enable us to accelerate growth in this sector and establish this business as one of our key growth drivers going forward.”
