Godrej EPC Arm Unaffected by West Asia Crisis, Eyes Rs 3,000 Crore Order Book
In a significant development, Godrej Enterprises Group's engineering, procurement, and construction (EPC) operations have been declared completely insulated from the ongoing conflicts in West Asia. This resilience stems from the company's strategic avoidance of oil-linked imports and supply chains, as confirmed by Raghvendra Mirji, Energy Solutions Business Head and Executive Vice President at Godrej Enterprises.
No Impact from Regional Conflicts
Speaking to ANI in New Delhi, Mirji emphasized that the company does not import any materials from West Asian countries and is not involved in oil-based businesses. "We are not impacted at all by this crisis at this point in time," he stated, while noting that the situation is being closely monitored. He added that the Indian government has provided assurances regarding supply stability, further mitigating potential risks.
Regarding concerns over rising crude oil prices, Mirji indicated that electricity tariffs are unlikely to increase immediately. He highlighted that future pricing trends will largely depend on policy decisions by the government, underscoring the importance of regulatory frameworks in the energy sector.
Strong Growth Momentum and Financial Targets
The Energy Solutions business, which specializes in EPC turnkey projects for power infrastructure—including substations and transmission lines up to 765 kV—is experiencing robust growth. Currently, the company boasts an order book of approximately Rs 2,600 crore and aims to surpass Rs 3,000 crore in the next financial year.
Mirji projected that FY26 revenues will reach about Rs 1,600 crore, marking a 15-20% growth over the previous year. Looking forward, the company anticipates a 20-25% growth rate, driven by strong demand in the power sector and strategic initiatives.
Drivers of Growth: Renewable Energy and Infrastructure
India's ambitious renewable energy targets are a key growth driver for Godrej's EPC operations. With installed capacity at around 258 GW and a goal of 500 GW by 2030, states like Gujarat and Rajasthan are leading large-scale projects, particularly in solar energy. This surge is creating significant demand for power evacuation infrastructure, such as substations.
To capitalize on this, Godrej has established project hubs in Gujarat and Rajasthan to support faster implementation. "We are building substations mainly to evacuate this renewable power, and hence we have taken a lot of projects in these states," Mirji explained.
Additional factors fueling electricity demand include:
- Electric Vehicle Expansion: Rapid growth in EV adoption is increasing power needs.
- Data Centre Growth: With a 25% CAGR, data centres set up by global players like Microsoft and Google are boosting infrastructure demand.
- Railway Electrification: Indian Railways' annual capital expenditure of about Rs 60,000 crore includes Rs 9,000-10,000 crore for traction substations, offering substantial opportunities for EPC players.
Technological Investments and Future Strategy
Godrej Enterprises has invested approximately Rs 1,200 crore across its businesses in digital platforms, IoT, and artificial intelligence to enhance productivity and project execution. In the Energy Solutions division, these technologies are being leveraged to improve visibility and reduce project timelines.
Mirji clarified that the company is not currently pursuing acquisitions. Instead, it will focus on expanding its existing portfolio in substations and transmission lines, while leveraging growth opportunities in the power infrastructure sector. This strategic approach aims to sustain momentum and capitalize on India's evolving energy landscape.
