Punj Lloyd to leverage on alliances

Punj Lloyd is working overtime to ensure that it meets its expansion plans and keep investors happy. Its looking at global giant GE to partner with in a strategic alliance to build more value for investors. If things work out between them then Punj Lloyd will be GE's preferred construction company, while GE will get them bigger contracts and global expertise. “We are talking to GE and the moment there is something to announce, we'll tell you about it,” said Luv Chabbra, Director, Punj Lloyd. Meanwhile, Punj Lloyd is going ahead with their big plans in other sectors of infrastructure. It has bought 50 per cent stake in a real estate company Ramprastha Group. It has bought 25 per cent stake in Pipavav Shipyard. Pipavav is likely to go for an IPO soon and it has applied for a licence to make defence equipment. An alliance with GE would give Punj Lloyd help expand faster and get bigger contracts. They would also get access to a world-class engineering company. GE would have strategic alliance in the construction sector, which is struggling to keep up with the increasing demand. Punj Lloyd is also confident about its capability to get into the nuclear energy sector. It says that its UK wing SembCorp has the right expertise for this sector. “Nuclear energy would emerge as one of the biggest sector in the future and we see ourselves entering this sector. It all depends on the Indo-US nuclear deal,” said Chabbra. Indo-US nuclear deal or not, Punj Lloyd will continue to grow as the EPC sector grows at a scorching pace.