Dolat Capital: Kalpataru Power Transmission Establishing A Strong Worldwide Network  

Dolat Capital Research

Kalpataru Power Transmission Ltd. has laid out a three-pronged strategy of disciplined bidding to protect margins, improve wheeling charge and liquidate non -core assets. It is targeting becoming debt-free in FY21, mainly from proceeds from selling transmission assets.

Similar to KEC International, it has also diversified with rail and oil and gas as key areas.

In international markets Kalpataru Power established operations in three more countries in SAARC, Africa and Europe. It increased its presence in Europe in FY20, through subsidiary Linjemontage with its ongoing investments towards the refurbishment of existing transmission and distribution (T&D) lines.

For the future, it has identified Latin America as the next market. The company has an order book of approximately Rs 220 billion in SAARC, which is the biggest focus market. Kalpataru Power fortified its leadership position in the railways, oil and gas and T&D segment in Africa and SAARC.

The company expanded operations in oil and gas segment winning largest engineering, procurement and construction order worth approximately Rs 6.2 billion for a gas pipeline.

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