Ducon sees FGD-related business opportunity of INR 10,000 cr to INR 15,000 cr, over the next 3-4 years

Ducon Infratechnologies Limited (BSE:534674, NSE: DUCON), ("DUCON") is increasing its footprint in India's Flue gas Desulfurization (FGD) market, the Company announced.

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 a successfully operating FGD system installations for more than a decade in India stands to gain tremendously from this potential growth.Among the Company's many successfully operating FGD installations in India, the notable ones include: (i) 500 MW seawater FGD systems at Dahanu power plant and (ii) 2x600 MWWet Limestone FGD system at Udupi Power Plant.

In order to make strides in this rapidly evolving FGD market, Ducon has adopted innovative strategies to advance its FGD footprint in the Indian market. A single FGD project can range in value from INR 200 cr to 600 Cr, and takes 2 to 3 years for completion, thus Ducon can only secure couple of such projectson 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 FGDrelated business opportunity of INR. 10,000 cr to INR 15,000 cr, over the next 3-4 years.

Shares of Ducon Infratechnologies Limited was last trading in BSE at Rs. 11.16 as compared to the previous close of Rs. 13.94. The total number of shares traded during the day was 2650038 in over 3196 trades.

The stock hit an intraday high of Rs. 16.50 and intraday low of 11.16. The net turnover during the day was Rs. 32553768.00.

Source : Equity Bulls

Keywords

DuconInfratechnologies INE741L01018 FGDMarket FlueGasDesulfurization