MUMBAI: Kalpataru Power Transmission (KPTL) plans to divest noncore assets to focus on its core engineering business and participate in more power transmission projects that will come up via the ‘Public-Private Partnership’ route.
The company plans to monetise its real estate asset in Indore, is looking for a strategic investor for arm Shree Shubham Logistics, and is in talks to sell road projects held by another arm JMC Projects, Manish Mohnot, managing director and chief executive off ..
“Our vision is to focus on our core expertise in engineering, procurement and construction (EPCNSE 4.79 %), unlock non-core assets, create new assets which can be monetised. Our most important goal is to create value and improve return on capital,” Mohnot said.
The company is simultaneously scouting for acquisition opportunities abroad, which will help expand its offering in countries where it is just a contractor or supplier of transmission equipment. “We are already present in about 65 countries for EPC jobs. But to expand the markets in terms of scope and scale, we are looking for acquisitions in some markets. We have already covered the Nordic region with our acquisition in Sweden, now we want to make acquisitions in the US and Latin America,” he s ..
“We are divesting not out of desperation, as is the case with most companies in the infrastructure sector, but to have more investable capital for new projects. We have been talking to potential buyers for some time for sale of JMC’s road projects, they are not as profitable as some of our transmission projects, but we hope to close deals for some roads by end of the current financial year,” Mohnot said. JMC Projects has been on the lookout for strategic investors for around six years now.
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