MEIL Group to Invest Rs 40,000 Crore and Launch IPOs for Subsidiaries
The Hyderabad-headquartered conglomerate Megha Engineering & Infrastructures Limited (MEIL) Group has announced plans to invest between Rs 30,000 crore and Rs 40,000 crore in capital expenditure over the next two to three years. Managing Director PV Krishna Reddy revealed that the group aims to achieve a revenue topline of Rs 2 lakh crore within five years and intends to launch Initial Public Offerings (IPOs) for several of its key subsidiary companies.
According to Reddy, the group plans to take some of its subsidiaries public every couple of years. The first company slated for an IPO is Evey Trans Pvt Ltd, an electric bus operator. This will be followed by the defence vertical ICOMM Tele and city gas distribution arm Megha Gas. Evey Trans, established in 2018, currently operates electric buses across multiple Indian cities, including Hyderabad, Mumbai, Pune, Surat, Silvassa, Goa, Dehradun, and Nagpur.
The MEIL Group recorded a revenue of approximately Rs 60,000 crore last year and expects to reach Rs 80,000 crore in the current year. The flagship infrastructure company, MEIL, currently contributes around 60 percent of the overall topline. However, Reddy noted that other verticals like green energy and electric vehicles are expected to catch up in the coming years.
The planned capital expenditure of Rs 30,000 crore to Rs 40,000 crore will focus on new innovative technologies, including cell and battery manufacturing, physical intelligence, and innovative businesses. Recently, the group announced a joint venture with Abu Dhabi-based Analogue in the field of physical intelligence, committing an investment of USD 300 million to USD 500 million over the next five years.
In the electric vehicle sector, MEIL's group company, Olectra Greentech Ltd, operates a manufacturing facility in Telangana with an annual capacity of 10,000 electric buses. The facility currently produces over 4,000 buses and holds a pending order book of 8,000 to 10,000 units. Reddy stated that the group is looking to set up more manufacturing units at two locations and is in negotiations with various state governments.
The conglomerate operates 13 verticals, ranging from construction and defence manufacturing to city gas distribution and offshore and onshore rig manufacturing. The group employs about 40,000 direct workers and supports an additional three lakh personnel indirectly.
