Pune-based Lotus Boilers & Pressure Vessels (P) Limited is gradually changing its business strategy to focus more on boilers so that it can put its new capacity to good use

Even as a teenager the one thing Munir Ahmed knew for sure was his choice of profession. It was going to be a career in making piping systems and boilers. No wonder then that he chose to do his graduation in production technology and then followed it up with specialisation in piping design and engineering. The reason was simple. His father had started a factory in Pune in 1990 to design and supply piping systems to OEMs and Munir wanted to take it forward. "Doing anything else never crossed my mind," he says. Today, the small workshop called Lotus Engineers has come a long way with Munir leading from the front. Lotus Boilers & Pressure Vessels (P) Limited, as it is known now, with its works in the MIDC area of Pune, offers on-site installation of turnkey utility and process piping for the process industry and commercial establishments.

Its business expertise covers design and manufacturing of capital equipments, steam boilers, pressure vessels, tanks, chimneys, etc. Among its many products are steam boilers suitable for plants with low pressure steam and steam load like dairy unit, feed plant, and small chemical units with capacities up to 600 kg/hour (F&A 100?C) and 7 bar design pressure. "We undertake complete installation along with support equipment and accessories up to commissioning and IBR formalities for all such boilers," Munir informs. In project piping and utility systems, the company undertakes turnkey projects that include supply of material, on-site fabrication, erection and testing in service-specific materials like MS/GI/SMLS/CS/SS/alloy steels/CI/HDPE/PP/PVC and high pressure and temperature ratings of utility piping systems.

Its portfolio of chimneys include self-supported chimney, guy rope-supported chimney, structural-supported chimney, etc. while the pressure vessels are designed for gas storage, LPG-nitrogen-oxygen storage tanks, reboilers, distillation columns, blowdown tanks, bulk oil storage tanks, soft water storage tanks, chemical storage tanks, and air receivers. "Boiler accessories and heat exchangers which include shells and tube heat exchangers make for our additional products," Munir informs. While for many years the company was focused on piping systems, there came a change in its business mandate five years ago after acquiring a license for making boilers. "As of now 80 per cent of our projects are related to piping and the rest to making boilers but we are going to reverse this ratio in the next five years," Munir says.

Also, while its list of primary customers was earlier more or less confined to Thermax and Forbes Marshall, the repertoire has now expanded to include such blue-chip clients as Mahendra Forging, Weikfield Agro Ltd., Vizag Steel Plant, Shirke Paper Mills, Kalyani Steels, Jain Irrigation Ltd., Force Motors, Kirloskar Oil Engines, KSB Pumps, and many more. "We worked with Thermax and Forbes Marshall for almost 8 to 10 years at a stretch before we started expanding our capacity," Munir says. Now, with this growing roster of clients across India, Lotus Boilers & Pressure Vessels has invested in a new workshop at Chakan near Pune, spread across 16,000 sq feet. "We already have two manufacturing facilities in Chinchwad but the third one will be a state-of-the-art plant with integrated back-end facilities for rolling, cutting, bending and all such major operations which are now being outsourced," Munir says. In fact, the plant is almost ready and will become operational from May onwards.

Another reason for this expansion drive is that the company has gradually begun to create a niche outside India too. "We have so far executed projects in countries like Sudan, Tanzania, Sri Lanka and the UAE for clients like RAK Ceramics, Zanzibar Sugar Mills, Lallan Rubber, Uruvilla Tea Factory, Work Wear Lanka Ltd, Industrial Clothing Ltd., and Dubai Metro Rail Project and we now want to create a more established presence in these countries. So far we haven't really advertised or promoted ourselves because our capacity was limited. The orders were coming in from word-of-mouth publicity and our goodwill in the industry. Now we will participate in domestic and international trade shows to take it further," Munir says.

Such a decision is also prompted by the fact that depending on a few clients can be risky in today's industrial climate. While the company had been doing an average of Rs 12 crore in turnover each year, the last one year turned out to be a nightmare with the revenue dipping down to less than Rs 5 crore. "That's because the Indian industry went through its worst phase ever and very few companies wanted to invest in capital equipment. But now, this year has been better and we are already booked with orders for the next two months. Hopefully, the turnover will be back to more than Rs 12 crore and this should increase going forward," Munir reveals.

As for competition and challenges, Munir admits that an increasing number of companies are now entering this sector. "There are at least 40 companies in Pune itself which are into making boilers, piping systems, heat exchangers, pressure vessels, etc. But the fortunate part is that there is room for everyone and it all finally boils down to the expertise you can offer a client. Making the perfect design, selection of the right raw material, timely delivery, safety and on-site supervision are some of the factors that have helped us be a league apart from the others," he adds.

Lotus Boilers & Pressure Vessels (P) Ltd., Plot No 58-59/2, D-II Block, Chinchwad MIDC, Pune - 411 019. Tel.: 020-27463141 / 27481470. E-mail: business@lotusengineers.com.