KEC International , a global infrastructure Engineering, Procurement, and Construction (EPC) major, has taken a significant step to support its overseas operations. The company announced the issuance of a corporate guarantee worth USD 13.20 million for its subsidiary, Al Sharif Group & KEC Limited Company.

Guarantee Details

The corporate guarantee was provided to an overseas bank that has extended banking facilities to the subsidiary. This financial move is aimed at supporting the operations of Al Sharif Group & KEC Limited Company, which is based in Saudi Arabia.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KEC International disclosed the details of this transaction to the National Stock Exchange of India Limited and BSE Limited. The company emphasized that the guarantee represents a contingent liability and currently has no impact on its operations.

Transparency in Transactions

KEC International has explicitly stated that neither the promoter, promoter group, nor any group companies have any interest in this transaction. This disclosure ensures transparency and adherence to corporate governance norms.

Financial Implications

While the corporate guarantee does not have an immediate impact on KEC International's financials, it is recorded as a contingent liability. This means that the company may be required to fulfill this obligation in the future, depending on the financial performance of its subsidiary.

Strategic Support for Subsidiary

The issuance of this guarantee demonstrates KEC International's commitment to supporting its international subsidiaries. Al Sharif Group & KEC Limited Company, as a subsidiary operating in Saudi Arabia, plays a crucial role in KEC's global operations, particularly in the Middle Eastern market.

This strategic move by KEC International underscores the company's focus on strengthening its international presence and supporting its subsidiaries in securing necessary financial facilities for their operations. As the infrastructure sector continues to grow globally, such financial backing can be instrumental in helping subsidiaries compete effectively in their respective markets.

KEC International Limited, a global infrastructure EPC major and part of the RPG Group, has announced securing new orders worth Rs. 1,402.00 crores across its various business segments, significantly bolstering its order book.

Diverse Order Portfolio

The company's Transmission & Distribution (T&D) business has clinched two notable contracts:

1. A 765 kV transmission line project from a prominent private player in India
2. Supply of towers, hardware, and poles in the Americas

In the Civil sector, KEC International has received a repeat order for a high-rise residential project from a well-known real estate developer in Northern India. This repeat business underscores the company's strong reputation and client relationships in the Buildings & Factories (B&F) segment.

The Cables & Conductors division has also contributed to the order influx, securing contracts for the supply of various types of cables and conductors both in India and overseas markets.

Strong Year-to-Date Performance

Mr. Vimal Kejriwal, MD & CEO of KEC International Ltd., expressed satisfaction with the company's recent achievements, stating, "We are pleased with the order wins across our businesses. In the India T&D business, we have expanded our customer base by securing a prestigious order from a reputed private player."

Highlighting the company's robust performance, Mr. Kejriwal added, "With these additions, our YTD order intake has surpassed Rs. 8,400.00 crores. These orders, along with the orders announced earlier during the year, will substantially contribute towards our targeted growth going forward."

Strategic Implications

The diverse nature of these new orders reflects KEC International's strong market position across multiple infrastructure sectors. The company's ability to secure repeat orders, particularly in the competitive real estate sector, demonstrates its execution capabilities and client satisfaction.

Moreover, the expansion into private sector T&D projects in India indicates KEC's strategic move to diversify its client base beyond traditional public sector undertakings.

As a global player with a presence in over 110 countries, these new orders are expected to reinforce KEC International's position in the infrastructure EPC market, both domestically and internationally.

With these new contracts, KEC International continues to build on its reputation as a key player in infrastructure development, contributing to its parent RPG Group's growth trajectory in the infrastructure, tyres, pharma, IT, and specialty sectors.