Ducon Infratechnologies jumped 6.98% to Rs 14.90 after the company announced the forming of alliances with leading EPC companies to jointly bid for many FGD projects, in an attempt to increase its footprint in India's FGD market.
The company said that India has been dependent upon coal-based thermal power generation for its electricity production which significantly contributes to the air pollution.
However, recently, India has planned to mitigate the airpollution from all power plants by implementing new emission norms, requiring retrofitting existing coal thermal power plants with equipment to control sulfur dioxide (SOx) & nitrogen oxides (NOx) emissions by installing equipment such as flue gas desulfurization (FGD) and selective catalytic reduction (SCR) systems respectively.
At present out of installed capacity of 211 GW of coal thermal power plants in India, FGD equipment has been ordered only for 87 GW and the remaining 124 GW power plants have yet to order this FGD equipment.
The growing awareness regarding environmental pollution and government's action to curb the same are driving the growth of FGD market. Ducon being the leading FGD supplier in the Indian market and being the only company to have successfully operating FGD system installations for more than a decade in India stands to gain tremendously from this potential growth.
Also Read
A single FGD project can range in value from Rs 200 crore to Rs 600 crore, and takes 2 to 3 years for completion, thus Ducon can only secure couple of such projects on its own annually. The company has thus formed alliances with leading EPC companies and has jointly bid many FGD projects.
The nature of these alliances involve that Ducon will provide the engineering and crucial technological parts for each project and the EPC Company will execute the rest of the project. By increasing its footprint, Ducon sees FGD related business opportunity of Rs 10,000 crore to Rs 15,000 crore, over the next 3-4 years.
Ducon Infratechnologies is India's leading fossil fuel/coal clean technology company. Ducon has a strong portfolio of clean technology IP and execution capabilities backed by continuous investments in emerging cleantech/green energy IP/Patents etc. The company has 5 divisions - fossil fuel clean technologies (FGD systems etc), green energy (green coal/bulk material handling systems), clean/green electrification, material handling/wagon handling and cleantech.
The company's consolidated net profit declined 43.97% to Rs 0.79 crore on a 3.42% increase in sales to Rs 99.37 crore in Q2 FY23 over Q2 FY22.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
