“We need this for our growth plans. Not only will it help us scale up our operations in terms of management expertise, global best practices and technology, the partnership will also give us access to Blackstone’s global network,” says P. Ravindra Reddy, chairman, MTAR.
The privately-held company, which hopes to triple its revenues of around Rs 100 crore (for 2006-07) by 2010, is now sensing new opportunities emerging with the entry of MNCs and big players into the aviation and oilfields businesses (the company now has plans to enter the oil fields equipment sector, too).
Currently, around 65 per cent of MTAR’s revenues come from nuclear projects, about 25 per cent from space and the remaining 10 per cent from defence. Its major customers include the Nuclear Power Corporation of India, the Indian Space Research Organisation (ISRO), Hindustan Aeronautics Ltd (HAL), ONGC and BARC. Just about 2 per cent of its revenues come from the private sector. But that will change in the years ahead, as the private sector increasingly forays into fields like aviation, oil fields and also nuclear energy (provided of course the Indo-US nuclear deal goes through). MTAR hopes to get between 50 and 60 per cent of its revenues from the export market in about five years from now.
Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.