BTL EPC Ltd, the engineering firm from Shrachi Group, is planning a foray into the renewable sector as it faces the pressure to diversify from its coal handling business amid a global movement to phase down the use of the fossil fuel.

The company has already executed the engineering and installation of a small solar power plant at Panagarh and is looking out for more opportunities. “Solar is the future. We will diversify into this segment,” Ravi Todi, managing director of BTL EPC, said.

Renewable energy is part of a concerted effort by the company to build capabilities in other areas. BTL earns nearly all its revenue from material handling works at power plants or mines. It recently executed a transmission project in Chhattisgarh and is bidding for more.

As part of the diversification strategy, the company is also exploring buyout opportunities. While BTL is predominantly an EPC (engineering, procurement and construction) company, it wants to expand to the product segment.

A product company typically gets paid after delivering the material. In contrast, EPC firms usually have to wait longer, especially if the client is a PSU or a government department, for payment, which poses cash flow challenges.

“We are in dialogue with a potential target. It manufactures products for material handling,” Todi said.

On Thursday, BTL also announced bagging a Rs 317cr contract from NTPC for coal handling. The company’s order book now stands at

Rs 1,400 crore. It completed the last fiscal with a revenue of Rs 300 crore, up by 20 per cent from the previous year despite the pandemic. Todi said it is targeting Rs 500 crore revenue in 2022-23 even though BTL would be happy to maintain last fiscal’s revenue in this year.