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We see strong demand for process equipment in next 5 years: Shalabh Singh
Articles- Jun 27,25
in this exclusive conversation with Rakesh Rao, Shalabh Singh, Chief of Business Development at Isgec Heavy Engineering Ltd, delves into how Isgec is aligning itself with national priorities while tapping global opportunities.
Isgec Heavy Engineering Ltd - a diversified, global engineering company – is renowned for its capabilities in manufacturing presses, boilers, process equipment, castings, and turnkey industrial solutions such as boilers, emission control, sugar plants & distilleries, captive power plants, and material handling solutions, across multiple sectors. With over three decades of experience in the heavy engineering and process equipment industry, Shalabh Singh, Chief of Business Development, Isgec Heavy Engineering Ltd, has been instrumental in steering Isgec’s equipment business across sectors including fertilizer, power, petrochemicals, and refinery. As India pushes ahead with its "Make in India" initiative and energy transition goals, in this exclusive conversation with Rakesh Rao, Shalabh Singh delves into how Isgec is aligning itself with national priorities while tapping global opportunities.
How did Isgec perform in FY 2025, and what factors contributed to its growth?
In FY 2025, we saw growth in revenue, but more importantly, our profitability improved by more than 20 per cent year on year. Several factors contributed to this growth. First, we focused on improving productivity across our operations and implemented measures to reduce costs. Second, we increased our focus on digitization, making our processes increasingly IT-enabled to enhance operational efficiency. Third, we benefited from the government's "Make in India" policy, which has had a positive impact on the manufacturing sector.
What is the contribution of exports to your overall turnover?
Exports contribute between 10 per cent and 20 per cent of our annual revenue, depending on opportunities during the year. Prior to the COVID-19 pandemic, our export business was more robust and contributed a much larger share to our revenues. However, given the changes in the global market due the challenges posed by the pandemic and subsequently the geopolitical tensions, we have had to work harder to regain momentum in the export space. Exports will continue to be in focus in our growth strategy going forward.
How is the process equipment market in India currently performing, especially in the sectors you serve?
The process equipment market in India is robust and diverse, catering to a wide array of industries, including refineries, petrochemical plants, thermal power plants, and chemical plants. We also supply equipment to the nuclear power sector. During the last year, the refinery & petrochemical sectors experienced slowdown, with fewer projects progressing. However, looking ahead, we expect a positive outlook with at least four to five major refinery projects moving forward, particularly as the government continues to invest in energy infrastructure.
Along with the refineries, petrochemical projects are also expected to be implemented, as modern-day refineries and petrochemical units are integrated. We are seeing growth in the nuclear power sector as well, with several new reactors under construction, and the government has been actively pursuing private sector involvement in these projects.
In the next five years, we foresee strong demand for process equipment, particularly in the refinery, petrochemical, and power sectors, as India continues to invest heavily in these critical industries and also in the green energy sector, where positive policy initiatives are being undertaken by the government.
Is there any development in hydrogen-related projects, particularly green hydrogen?
The Indian government has placed significant emphasis on green hydrogen, aligning with global sustainability trends. The policy focus is primarily on green hydrogen and green ammonia, and the government has allocated capacities for electrolysers and green hydrogen production based upon the SECI tenders & the PLI schemes. However, while there is a lot of enthusiasm and policy support, the pace of progress has been slower than expected, largely due to the high cost of producing green hydrogen compared to traditional forms like grey and blue hydrogen.
Green hydrogen remains an emerging sector, and it will take some time before it reaches significant scale, especially given the high cost of production.
Can you provide an update on your order book status as of March 2025 and the key sectors driving demand?
Our order book as of March 2025 was Rs 80.76 billion, and we expect our order book to continue growing. The key sectors driving this demand include ethanol plants, steel, cement, nuclear power, thermal power, automotive refinery and petrochemicals. According S&P Global Ratings, the Indian corporate sector is expected to invest around $850 billion over the next five years, and this will drive demand across various industrial segments. Additionally, we are seeing a positive shift in the defense sector, as the government continues to focus on "Atmanirbhar Bharat" (self-reliant India), in all sectors including in the defense production. This shift presents new opportunities for companies like Isgec, as we are expecting an uptick in the inquiries for defense-related projects.
How do you view the defense sector?
While our involvement in the defense sector is currently limited, we are gradually looking to expand our footprint. We supply presses for manufacturing various defence equipment, also components for some military equipment. We have also participated in important projects, though I cannot share specific details due to confidentiality agreements. The defense sector is growing, and we expect to see more opportunities as OEMs look to increase their production capacity.
How are you addressing supply chain challenges amidst geopolitical tensions and trade policy shifts?
The geopolitical tensions, trade wars, and COVID-19 disruptions have all impacted global supply chains, leading to higher logistics costs and longer delivery times. We have been affected by these challenges, as sourcing raw materials and shipping costs, as well as time, have increased. Despite this, we have worked diligently to manage these disruptions by optimising our supply chain and finding alternative sources for raw materials.
The China Plus One strategy, where many international companies are looking to derisk their supply chains away from China, has presented opportunities in general, and we also seek to benefit from it. The major international companies are increasingly looking at India as an alternate source, and we have been approached to supply products that were previously sourced from China. We expect this trend to continue, and we are well-positioned to capitalise on it.
How does Isgec view decarbonization and sustainability?
We are deeply committed to sustainability and decarbonization. We have already been involved in supplying equipment for green fuel projects, including reactors for biodiesel production in the US. Additionally, we are working with several industry partners to provide engineering solutions and be a part of the value chain.
What are the focus areas for your R&D initiatives?
We have an in-house R&D department and hold several patents in areas such as sugar and boiler technology. We are also investing in R&D in our machine building and automation, enabling our products to be Industry 4.0-enabled. Our R&D efforts are focused on developing innovative and more value-added added for our customers.
India, however, has a long way to go in terms of R&D investment. We spend only 0.6 per cent of our GDP in the R&D which is quite low when compared with US, China, Germany, Israel, Japan & Brazil which invest between 1.5 to 3.5 per cent. The corporate sector in India contributes only about 40 per cent of total R&D spending, with the government covering the rest. If India is to remain competitive on the global stage, it is crucial that the private sector increases its investment in R&D and offer more & more technology-embedded solutions.
How do you see the future of India's manufacturing sector?
India is in a favorable position with its growing GDP, political stability, and the government's "Make in India" initiative, focus on import substitution and now we are hearing about the ‘National Manufacturing Mission’ aimed at increasing the share of manufacturing in GDP to 25 per cent. These factors, coupled with a strong domestic market, create a positive outlook for the manufacturing sector. However, challenges such as geopolitical tensions and tariff wars, and protectionism persist. Still, with the right policies in place, India has the potential to become a global manufacturing hub.
How does Isgec plan to align its future growth with India's evolving industrial policy?
We plan to continue moving up the value chain, focusing on offering technology-intensive products rather than simple, traditional solutions. We are also expanding our manufacturing capacities to cater to the expected demand in various sectors.
Isgec Heavy Engineering
Shalabh Singh
Process Equipment Industry
Make in India Initiative
Green Hydrogen Projects
Rakesh Rao
Defence Manufacturing in India
Industrial Decarbonisation
China Plus One Strategy
R&D in Manufacturing
Indian Export Growth
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