Rental power provider Aggreko to expand presence in India

UK-headquartered, rental power provider Aggreko is keen to cater to India's growing demand for temporary power. The company which entered the Indian market in 2009 through the takeover of Cummins India Ltd's power rental business has all this while set up two depots-one in Pune and the second in Manesar with an initial investment of $300 million. In an interview to moneycontrol.com, Debajit Das, managing director, Aggreko Asia speaks on his company's goals of having multi-hub system with depots located in strategic cities across India. Edited excerpts of the interview.

Q Aggreko has completed three years of operations in India. Could you brief us about your business plans for the Indian market?
A.Aggreko's first project in India was commissioned in 2002 to provide a 6 MW emergency power package to Tata Chemicals.  Aggreko established a permanent presence in the Indian market in 2009 with the acquisition of Cummins Rental India Ltd and we opened our first depot at Wagholi in Pune on September 29, 2009. Last year, we started operations through our second depot in Manesar located on the outskirts of New Delhi. These depots help us explore business from the west and north regions of the country.

Q You sound bullish on your India operations. Who are you customers currently and what kind of growth do you anticipate by the end of CY2012 in India?
A. Our customer base has more than doubled last year and presently we are set on commissioning a significant number of megawatts that will see continued strong growth in India into 2012. We have an unparalleled capacity to mobilize power wherever required in a short span of time and therefore we foresee a very steep growth curve.

Q.The rate of growth in power rentals globally has been accelerating in recent years on the back of growing demand energy intensive industries. Can you give us a sense as to  countries in which you operate seem more promising in terms of expansion?
A. The emerging markets in Asia offer profuse opportunities to Aggreko as they are in a constant need of emergency and temporary power solutions due to lack of infrastructure and an ever increasing demand for power both from industry and domestic users. Countries like India, Philippines, Indonesia and Bangladesh essentially need to bridge the widening gap between the rapidly growing demand for power and the availability of reliable power supplies.

Q. In that case, how much does India contribute to your overall revenues and what kind of topline improvement you anticipate from the country going forward?
A. Aggreko's business in India is at a nascent stage and we are still in the investment phase. As India is the fourth largest energy consumer in the world with over one third of the rural population and 6% of urban population lacking electricity we anticipate India to be the leading contributor to Aggreko's business in the ensuing five years.

Q. Talking about expansion plans, last year your company commissioned a 13.6 MW gas fuelled power plants? What is your target for this year?
A.2011 saw Aggreko commissioning a 6.6 MW gas fuelled power plant for Kaveri Gas Power Ltd., a 7 MW power package for Polyplex Corporation Ltd. and receiving a contract to provide a rental power package to Bharat Oman Refineries Ltd. which will be used to power the 6MMPTA refinery in Bina, Madhya Pradesh, until the permanent power plant at the refinery is commissioned. Aggreko aims at ensuring a consistent power supply to all regions facing acute power shortage and especially the ones bearing major obstacles for smooth industrial power generation through its mobile power rental solutions and technical services.