MEIL to invest Rs 40,000 crore over three years, targets Rs 2 lakh crore topline

MEIL Group plans to invest up to Rs 40,000 crore over the next two to three years and aims to achieve a Rs 2 lakh crore topline within five years. The company also plans IPOs for subsidiaries and expansion into new technology and EV businesses

Hyderabad: Megha Engineering & Infrastructures Limited (MEIL) Group will invest up to Rs 40,000 crore over the next two to three years towards capital expenditure, aiming to achieve a topline of Rs 2 lakh crore in five years, a top executive of the infrastructure major has said.

PV Krishna Reddy, Managing Director of MEIL, also said the group aims to take some of its subsidiaries public through Initial Public Offerings (IPOs) every couple of years, with the first being Evey Trans Pvt Ltd, followed by the defence vertical, gas distribution and others.

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Evey Trans is the only 100 per cent electric bus operator in India. Established in 2018, the company operates e-buses in cities including Mumbai, Pune, Surat, Silvassa, Goa, Hyderabad, Dehradun and Nagpur.

“Last year, the entire group did around Rs 60,000 crore. This year we are expecting Rs 80,000 crore. We aim to achieve a Rs 2 lakh crore topline in the next five years, including new businesses,” Krishna Reddy told PTI in an exclusive interview.

Reddy said the flagship company, MEIL, accounts for around 60 per cent of the overall topline of the Hyderabad-headquartered conglomerate. Going forward, other verticals such as green energy, electric vehicles and related businesses are expected to contribute more.

“We are planning to invest Rs 30,000 crore to Rs 40,000 crore over the next two to three years, depending on the requirements. We are concentrating more on new and innovative technologies and businesses such as cell and battery manufacturing and physical intelligence,” he said.

The MEIL Group recently announced a joint venture with Abu Dhabi-based Analogue in the field of physical intelligence. The joint venture has committed to investing USD 300 million to USD 500 million over the next five years.

On EV mobility, he said Olectra Greentech Ltd, a group company, has a manufacturing facility in Telangana with the capacity to produce 10,000 electric buses annually. It currently produces more than 4,000 buses, with a pending order book of 8,000 to 10,000 buses.

Krishna Reddy said there are plans to set up manufacturing units at two more locations, and negotiations with some states are at various stages.

“Whoever offers good incentives, whichever state is proactive, we will consider them (for setting up plants),” he said, adding that the same principle applies to other proposed manufacturing facilities.

The MEIL Group has about 13 verticals across sectors ranging from construction and defence manufacturing to electric bus manufacturing and operations.

The group is also into city gas distribution, with 10 million connections, and offshore and onshore rig manufacturing.

Without elaborating, Reddy said MEIL is in discussions with an electric car manufacturer to set up a plant in India as demand for EVs continues to rise.

The group has about 40,000 direct employees while indirectly supporting three lakh people.