Interview with Deep Industries Ltd.
We are developing processing capabilities in terms of different applications for various industries to have a larger incremental share of the overall market.
In conversation with Paras Savla, Chairman and Managing Director, Deep Industries Ltd.
What are your top three strategic priorities as of now?
Firstly, there is a great push from the Government of India in terms of making India a Natural Gas production and consumption hub and already significant progress has been made in terms of broader vision as well as specific policy push measures. So obviously we are also forming and pursuing our strategic priorities there. We are already having a good meaningful presence in Natural Gas Processing via Natural Gas Compression and Natural Gas Dehydration both being very critical before the Natural Gas gets put into any kind of usage. We are also enhancing our processing capabilities in terms of different applications for different industries to have a larger incremental share of the overall market and be ready with our service offerings to tap the newer opportunities in the Natural Gas industry. I believe this puts us in a stronger and better position over the medium to long term.
Secondly, we believe that not just the industrial demand but also the retail consumption is coming up in a huge way for natural gas in India. As you see CNG has already started becoming the new preference among the consumers in a big way due to it being a relatively cheaper and cleaner energy source. India has abundant reserves of natural gas and this again makes it a strong contender as fuel among industrial and retail consumers. As a part of the huge CGD Network expansion initiative, as many as 23000 booster CNG Compression stations and 6600 online CNG Compression stations are expected to come up during the next 7-8 years. This makes up a very compulsive and strong demand scenario for booster compressor packages which our subsidiary RAAS Equipment manufactures. We expect multi-fold growth at RAAS over the next decade.
Thirdly we have started working on reciprocating compressors which run on biogas as a fuel. The space has got remarkable growth potential in the backdrop of large rural energy requirements and relatively weaker energy networks there. We believe that biogas will play a larger role in the overall energy mix in the coming years.
What are your growth drivers?
The above stated strategic initiatives and priorities should be largely driving the growth going forward. The Indian Government is already aggressively pushing for a “Gas Based Economy’ and this allows us to further our push in that direction. Gas application, be it for industrial or domestic usage, now holds the potential for multi-fold expansion in India in the backdrop of clear and aggressive policy push by the Government. Apart from the booster of CNG compressors, we are also looking in for the gas generating sets, because around two or three years down the line, we can expect a paradigm shift from a diesel economy to a gas economy. We strongly believe these endeavours will augur well for our business and help us contribute to the growth of the energy sector.
What are the challenges faced by Deep Industries to achieve its strategic goals?
Adapting technology on time, ensuring efficient execution with precision and staying relevant by way of having services offering to tap new opportunities are key to fulfilling these strategic goals. We look forward to exploiting our rich experience and execution capabilities and are confident of mastering these challenges.
What steps have been taken to increase your market share?
Deep Industries Ltd works around a robust strategy and hence our strategic initiatives are directly tied towards enhancing our services portfolio and specific deliverables for every different application. This helps us to increase our market presence and share and that too in a sustainable fashion. So, the goal is to have a sustainable increase in market share.
Also, we believe that from here on the markets would be growing at quite a good pace but will also be ever-changing and hence the key is to adopt upcoming technologies to address upcoming changes in the markets. I believe our strategic initiatives are well-aimed at enhancing our market share.
Our recent foray into the manufacturing of booster compressors is the step in this direction – to increase our presence across the value chain.
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