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(NTPC).The company also has a strong IT division.
Its engineers and developers do development work for not just India but also the German parent.
The Indian market offers growth opportunities for STEAG
STEAG has recognised India as a key growing market. India has planned significant investment in Power infrastructure over the next 3 years, and this offers opportunities to the company for providing its services. Power business contributes to a large part of the engineering sector. And with the government clearing the blueprint to add 100,000 MW of electricity generation capacity by 2012, the engineering sector is likely to be a major beneficiary.The company sees its current
operations in India as a means to understand the Indian market, and a necessary prelude to taking decisions on investing in power plants in India3 .
Leveraging global experience
The company has been leveraging its global experience in the power sector, for providing services in India. Its global experience enables the company to better understand the growing requirements of Indian clients, as compared to competition, and to provide customised solutions.
Clients appreciate the company for this and this has contributed to the firm’s success in India.
India, source of skilled manpower STEAG India has participated in international projects of the parent company and continues to STEAG encotec GmbH, headquartered in Essen is a
wholly owned subsidiary of STEAG AG, Germany’s fifth largest power generator, which in turn is a member of the RAG Group.The company has more than 60 years of experience in power generation and plant construction, and has project experience in more than 40 countries, with around 315 employees globally. STEAG encotec is a specialist in planning, construction and operation of power plants, energy and environmental protection systems as well as a supplier of related IT systems and services.The company’s sales in power services amount to about Euro 42 million in 20051
RAG group has 4 divisions. Apart from STEAG in power generation the group is also into coal mining and trading, chemicals (under the name Degussa) and real estate.
Background
STEAG encotec (India) Pvt Ltd was incorporated in the year 2001 as a wholly owned subsidiary of STEAG encotec GmbH (Germany). Indian operation has around 110 employees working in Delhi, Hazira and other sites.
STEAG encotec has its activities spread across three areas – Engineering Services, Operation and Maintenance of Power Plants and IT. The company provides inputs for simulation of plant conditions using its software Ebsilon, as well as software to optimize the efficiency of power plants. Its customers in India include large public sector undertakings such as Bharat Heavy Electricals Ltd.
(BHEL) and National Thermal Power Corporation
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provide them resources for their projects including support for the IT products of its sister company STEAG KETEK IT GmbH.The company has
leveraged the skilled resources available in India not just in its operations in India but also in other foreign locations.The parent company supports the Indian subsidiary with technical backstopping and training where necessary.
Future plans
STEAG encotec India aims to grow in all the three segments of its operations in the future.The company feels that India has significant growth potential which the company can tap. It sees India as a long term investment destination and wants be a long term player in the sector.
The Indian subsidiary is also planning to integrate itself more actively with the international activities of the parent. and leverage the more than 60 years of experience the group has in the power generation sector.
STEAG encotec India: At a glance
• STEAG encotec has its activities spread across three areas – engineering services, operation and maintenance of power plants and Information technology
• For STEAG, India is: A key growth market
• Factors for success: cost effective, qualified resources and low initial investment requirement.
• Future plans: Grow all the three lines of business, integrate more actively with the international operations of the parent.
