Egis, the French construction engineering and mobility services company, plans to invest 50 million euros (around Rs 450 crore) in India through its local unit over the next five years, eyeing acquisitions in railways and energy, among others, a top executive said.
The company, which operates in the road, railway, airport and smart city sectors in India, is looking to enter healthcare, tourism and nuclear energy here, CEO Laurent Germain told ET in an interview.
The government’s decision to boost infrastructure spending is a big positive for companies in the space, Germain said.
The infrastructure sector was “impacted between March and June and it’s on the recovery path now – we see the fastest recovery coming from infra. There is a large push from the government also,” said Sandeep Gulati, managing director of Egis India.
Egis expects double-digit growth in profitability at the end of the current financial year, he said.
“There is absolutely no reason for us to slow down investments that we are doing in India,” Germain said. “We have done 75 million (euros) in the last two decades and we forecast to make an investment of 50 million (euros) in the next five years.”
Egis India had a turnover of 40 million euros in 2020 with “good profitability,” Germain said. “We have a double-digit operational profitability. This means we have the financial capability to continue to invest in India, both organically and also to look into the market to acquire companies in India.”
He said the railway sector and the privatisation of airports are some prospective areas for additional investment by Egis.
Germain said there are positive trends for the infrastructure sector in India in both the short and long terms. While infrastructure development is part of the recovery process for the government, India’s growing population justifies the need for the same in the long term, Germain said.
Germain said the nuclear power plant being built by EDF in Jaitapur, Maharashtra, is an option for Egis to enter India’s power sector.
“I am looking into the (global) market to acquire an engineering company in renewables, hoping that this company would work in India,” Germain added.