Tata Projects, the engineering, procurement, and construction (EPC) arm of the Tata Group, is eyeing robust double-digit growth in FY25, buoyed by its focus on sustainability and electronics. The company reported a profit of ₹139 crore in FY24, with revenues of ₹17,247 crore, and is poised for higher bottom-line growth this year.
“We’ve already crossed $2 billion in revenues this year, and our bottom-line growth will outpace our top-line growth,” said Vinayak Pai, Managing Director and CEO of Tata Projects, during a recent interaction in Mumbai. This optimistic outlook aligns with the broader growth trajectory of its competitor L&T, which is forecasting a 15% revenue increase for FY25.
Key Growth Drivers
Sustainability and advanced engineering are core pillars of Tata Projects’ strategy. Approximately 40% of its revenue stems from green initiatives, including green hydrogen, green ammonia, and metro rail systems. Electronics and semiconductors account for 10-15% of the company’s earnings, a segment where it is actively expanding. Notable projects include a semiconductor manufacturing facility and a battery production unit in Dholera, Gujarat, developed in partnership with Tata Electronics.
The company’s order book stands strong at ₹40,000 crore, with significant contributions from green energy and infrastructure projects. Pai highlighted the rising demand for electronics and semiconductors, emphasizing the balanced growth between manufacturing and services in these sectors.
Shift in Focus
Tata Projects is diversifying its portfolio to reduce reliance on government contracts, which have dropped from 80% to 50% of its business. Key public sector projects include metro developments in Pune, Chennai, and Indore. The firm also maintains a strategic overseas presence, aiming to keep international orders at 10-15% of its portfolio.
Pai underscored the predictability of metro and airport projects, noting their linear growth potential. Meanwhile, green hydrogen, green ammonia, and pumped storage projects are emerging as significant growth drivers for the company’s future. With sustainability and advanced engineering at the forefront, Tata Projects is set to strengthen its position in the EPC sector and achieve its ambitious growth targets for FY25.
Tata Projects is one of India’s most respected and fastest-growing infrastructure companies, delivering complex and challenging projects across various sectors. With a strong focus on engineering excellence, project execution, and sustainable practices, the company operates in key areas such as power generation, transmission, railways, urban infrastructure, water management, and industrial projects.
Tata Projects is known for its innovative solutions and commitment to quality, safety, and environmental stewardship. Backed by the Tata Group’s legacy, the company has successfully executed iconic projects both in India and globally, contributing to the nation’s development while adhering to its core values of integrity, excellence, and social responsibility.
