KEC International sees data centers emerging as a promising business vertical

An EPC infrastructure player, KEC International Limited is in the process of building a separate portfolio of data center businesses. With its first data center going live in the next three to four months, KEC has bid for a few more as the digital economy and governance push fuels demand for data centers.

“As part of our civilian business, we are building two data centers. One is for defense and the second is for one of the largest telecom service providers. This will be the first for KEC,” Vimal Kejriwal, MD and CEO, KEC International Ltd said Activity area during his recent visit to Gujarat.

Notably, data centers were not part of the business previously for KEC, an RPG Group company. Enterprises, government agencies, and service providers are increasingly building data center infrastructure to ensure safe, secure, and hassle-free data access and storage.

Kejriwal said the defense data center will go live in about 3-4 months, while work on the telecom player’s has just started and “it will take about another 1.5 years to complete. “said Kejriwal.

“We have bid for a few more, and we might get one or two. We already supply extra high voltage (EHV), high voltage (HV) and low voltage (LV) cables, at the most of these data centers as part of our cable business,” he said, adding that the data centers — which are currently part of a civilian business — have the potential to become a vertical business. distinct for the company, in addition to its existing verticals of transmission and distribution, civil, solar, cables, railways among others.

Company Performance

In the 2021-22 financial year, the company’s civil business recorded a strong performance with revenue growing by around 75% (year-on-year) to around ₹1,900 crore. The civil affairs vertical, which was launched around four years ago, will now see around 100% growth in revenue as Kejriwal expects it to earn ₹3,600 crore over the course of the year. financial year 2022-23.

Increased expansion activity in the cement, steel, mining and metals sectors is fueling the company’s growth in civil business. Shares of KEC International traded in the red at ₹406.80 on Friday, down 0.5% from the previous close on BSE.

Published on

July 08, 2022

Ramon J. Espinoza