Nikhil Kumar, managing director (MD) of TD Power Systems, on Wednesday said renewable energy is showing good growth.
The company reported a 122 percent growth in Q1FY22 on a year-on-year (YoY) basis, but down 3 percent on sequential.
In an interview to CNBC-TV18, Kumar said, “We are seeing increased offtake nationwide for garbage incineration plants. There is a very strong drive by the government to implement these power plants across the country so that instead of dumping garbage into the ground we burn it and generate electricity. We are seeing large power plants coming across the country. This is going to be a huge market in the future for India.”
“Internationally, most of our business, on the steam turbine side, is coming from renewables; basically waste heat recovery or biomass plants and also in Europe especially, there is a very strong demand for garbage incineration plants, very large ones like 40-50 megawatt, across the whole of Europe,” said Kumar.
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On the order book, he said, “Q4 (of financial year) is always a heavy quarter for the engineering industry. Q1 tends to be a bit weaker, but we have a very strong order book for the next three quarters and we will grow our business by almost 30 percent year on year (YoY).”
On international business, Kumar said, “We had two years of extraordinary sales in Turkey, almost Rs 100 crore this year. So, we have done really well, but that market was always very dependent on local incentives for local manufacturing and the government revised set of incentives, which does not really promote local manufacturing and that tapered off demand for locally made products, but because TDP had established itself in the Turkish market over the past few years by selling local machines, what we are seeing is that business which would have come to our Turkish subsidiary is now actually coming back to India. So we don't lose overall.”
For the entire management interview, watch the video
(Edited by : Bivekananda Biswas)
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