Areva sees robust growth, plans to increase headcount

Power transmission and distribution major Areva India will hire more people in the near future as the company expects its business in the country to grow significantly.

The Indian unit of the French nuclear giant, which gets almost 60% of its revenue from transmission, employs around 3,500 people in India and plans to take this up to 4,000 by 2010, managing director Rathin Basu said at a conference on Tuesday. The French parent owns 72% in Areva India and the rest is held by the public.

This recruitment would be to support the Rs 700 crore that Areva India is investing through capacity expansion programmes at Baroda, Hosur and Chennai.

Mr Basu was speaking at a conference that was also attended by Areva’s executive committee member and T&D chairman Philippe Guillemot. India is one of the fastest growing markets for the French major, Mr Guillemot said, adding that China and Russia are the other growth areas. “Strong demand (in T&D) is due to modernisation of grids and interconnectivity and due to new generation capacities,” the T&D global chief said.

Apart from offering transmission and distribution services, Areva T&D India also makes power equipment. Mr Basu also said that Areva India expects to double its revenue in the next two years. Areva India, which follows the calendar year, posted revenue of Rs 2,006 crore last year.

Large orders are expected from the high voltage gas-insulated switchgear segment, where it already has orders worth Rs 170 crore. This segment is popular in areas such as Mumbai where land is at a premium, as the GIS saves on space.
Shares of Areva India rose 1.5% to Rs 1,425 on BSE on Wednesday.