Megha Engineering To Pump in Rs 40,000 Cr Capex in 3 Years, Eyes Rs 2 Lakh Cr Topline in 5 Years

Hyderabad, Jul 3 (PTI): Megha Engineering & Infrastructures Limited (MEIL) Group will invest up to Rs 40,000 crore over the next two to three years towards capital expenditure, with the aim of achieving a topline of Rs 2 lakh crore within five years, according to a top executive of the infrastructure major.

PV Krishna Reddy, Managing Director of MEIL, said the group is also planning to take some of its subsidiaries public through Initial Public Offerings (IPOs) every couple of years. The first is expected to be Evey Trans Pvt Ltd, followed by the Defence vertical, Gas Distribution business and others.

Evey Trans, established in 2018, is India’s only 100 per cent electric bus operator. The company currently operates electric buses in multiple cities, including Mumbai, Pune, Surat, Silvassa, Goa, Hyderabad, Dehradun and Nagpur.

“Last year, the entire Group did around Rs 60,000 crore. This year we are expecting Rs 80,000 crore. We aim to achieve Rs 2 lakh crore topline in the next five years, the entire group including new businesses,” Krishna Reddy told PTI in an exclusive interview.

Reddy said the flagship company, MEIL, currently contributes around 60 per cent of the Hyderabad-headquartered conglomerate’s overall topline. Going forward, he expects other verticals such as green energy, electric vehicles and other emerging businesses to contribute significantly to the group’s growth.

“We are planning to invest Rs 30,000 crore to Rs 40,000 crore in the next two to three years depending on the requirements. We are concentrating more on new innovative technologies, innovative businesses like cell and battery manufacturing and physical intelligence,” he said.

The MEIL Group recently announced a joint venture with Abu Dhabi-based Analogue in the field of Physical Intelligence. The joint venture has committed to invest USD 300 million to USD 500 million over the next five years.

On electric vehicle mobility, Reddy said group company Olectra Greentech Ltd has a manufacturing facility in Telangana with an annual capacity of 10,000 electric buses. At present, the plant produces more than 4,000 buses annually and has a pending order book of 8,000 to 10,000 buses.

He said the company plans to establish additional manufacturing units at two locations and is in discussions with multiple state governments.

“Whoever offers good incentives, whichever state is proactive, we will consider them (for setting up plants),” he said, adding that the same approach would be followed for other proposed manufacturing facilities.

The MEIL Group has around 13 business verticals spanning construction, defence manufacturing, electric bus manufacturing and operations, city gas distribution, and offshore and onshore rig manufacturing. The group currently provides city gas distribution services to about 10 million connections.

Without elaborating further, Reddy said MEIL is also in discussions with an electric car manufacturer to set up a plant in India, citing the rising demand for electric vehicles.

The group currently employs around 40,000 people directly and supports nearly three lakh personnel indirectly.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)