The Rs15.93-crore turnover Chennai-based Saag RR Infra
Limited is entering in to work-over services for the oil
and gas industry. The company is looking at ONGC and the
oil companies located in Middle East.
a civil and mechanical construction company, Saag RR will
get the technology from Saag Drilling and Well Services,
Malaysia, that is offering services for Exxon Mobil. The
Indian company is a 51-per cent subsidiary of Saag Consolidated
to the R Sriram, managing director, Saag RR, "The
Indian work-over services market is estimated at around
Rs200 crore. And we are confident of getting a sizeable
share of that." He also said that ONGC is in the
process of refurbishing its platform and has already awarded
the contract for 26 platforms.
about the subsidiary's new business venture, Anand Subramanian,
executive director, Saag Consolidated said, "Nearly
20 months ago we acquired the majority stakes in Saag
RR. We have put in place the necessary systems and processes.
Now the company is all set to take on new projects."
to him, the strategy of buying into a listed Indian company
(Saag RR is listed on Bombay and Madras stock exchanges)
is working out well. "We could have started a wholly
owned subsidiary. But we will not get the correct valuation
as we are getting now."
Indian offshore platforms and wells are over 25 years
old and require restoration and enhancement. Given the
increase in oil prices, oil companies are interested in
increasing their production and companies like Saag RR
wants to encash this opportunity. Work- over services
are paid on day rate basis. "The minimum rate would
be $19,000 per day and would go up based on the kind of
work," said Subramanian. The Malaysian group owns
a rig and also a rig making bed. "In case of need
we can assemble a rig at a short time."
RR has a Rs10.50-crore equity base and would need around
Rs30 crore for the new business. According to Sriram the
company would raise that through a mix of debt and equity.
the nine month period this fiscal, Saag RR has posted
a turnover of Rs18.57 crore and a net profit of Rs1.40
crore. The company has executed construction projects
for Hindustan Petroleum,
Degremont, Bharat Heavy Electricals, Bharat Earth Movers,
Nuclear Power Corporation, National Thermal Power Corporation