At Small Cap Spotlight, we cast the spotlight on Mr. Raghunath Srinivasan, Vice President, ISGEC Heavy Engineering Limited, where he shares how the 90-year-old company is pioneering India’s green industrial transformation. From building boilers and turnkey power projects to tackling emissions in steel, cement, and petrochemicals, ISGEC is now focused on sustainability—investing in biomass solutions, desulfurization tech, and cleaner air systems. Backed by sound leadership, the company is integrating eco-conscious practices into every layer of its operations and supply chain. Tune in for the entire conversation.
Mubina Kapasi: Hello and welcome to Small Cap Spotlight. ISGEC Heavy Engineering is a company that all of us of course know. It’s been in existence for more than 90 years.
And today I have with me Mr. Raghunath. He is the head of the Air Pollution Control Equipment and Projects Division in the company. Thank you so much Mr. Raghunath for joining us.
I mean, like I said, ISGEC is a company that’s known to almost everybody. But still, for the benefit of some of our new investors and viewers too, why don’t you introduce it to our viewers?
Raghunath Srinivasan: Yes, thanks Mubina, first of all.
And as far as the company is concerned, it is more than 93 years old. We started way back in 1933. And this is the fourth generation of the promoters by Mr. Puri.
Mr. Aditya Puri is the Managing Director. Company started with sugar plant way back, long back during the British days. And slowly diversified into pressure vessels, heat exchangers, machine building divisions, where all these automobile companies, you know, we supply those presses and all.
It started with boilers, which are very much important for all the industries, whether it is petroleum or steel or you name any industry where you require power plants for their captive applications and all. So that is another division which we started. And then once you have all these things and you need to control the pollution also, because once you are creating, you’re polluting the environment.
So you need to control. So this area also we entered. And this is one of the major divisions what you are doing.
Air pollution, apart from the main boilers and pressure vessels, so many fields we are into. We also do a lot of turnkey projects. We have done a lot of projects, power plants on turnkey basis, material handling projects on cross-country conveying for the raw materials and all.
So we are doing so many things. But the main focus now is towards the green energy like biomass-fired boilers or municipal solid waste, which are being collected from many of the cities. And there are plants like even in Deonar in Mumbai, there is set up a plant.
But so many places which we are doing the incineration things, generating the power. We are also taking care of all the biomass which are being sent into the atmosphere. They are polluting all this atmosphere.
You must have heard about the problems of Punjab, the Parli problem and all. So we have solutions. We have given boilers like for Sukbir Energy, where the boilers are running very well.
Though these are all coming with some technology tie-up from a Belgian company, Denmark company. But yes, we are very actively into that. And particularly when I talk about my journey, it’s been more than 25 years.
I am working in this organization. And earlier I was in the boiler side. Now, last six years, I am into the air pollution thing and trying to see.
We all need fresh air at the end of the day. And if you talk about any industries, whether it is refineries, petrochemicals, fertilizers, cement. So you find a lot of raw materials being used, a lot of processes which are generating heat.
And then when the pollution also goes out, when you talk about any like we are taking part in the steel exhibition. So in steel process also, if you talk about any steel plant, there are so many raw materials which are required. So when these raw materials also get transferred from one place to another, it generates a lot of dust which is going to the atmosphere.
So we also in the air pollution, we are trying to control the particulate emissions which are going to the atmosphere, capturing it and sending it at a level which are good to breathe for the people. Then also we take care about the sulfur like it’s a desox plants. You have to capture the sulfur which are going into the atmosphere.
Same with nitrogen. So we are doing and we are doing FGD plants like very FGD for this NTPC projects and all big, big power plants. There was a government policy.
They wanted to control the sulfur. We are doing for the NTPC projects, doing capturing the sulfur. These are all huge.
These are all huge projects. These are all huge projects. So that is what we are doing is we are trying to see that the next generation.
So I still remember I am from Delhi, you know, I’m working in the NCR region and all a few months in a year are very tough to breathe. Mumbai is still better. So we are trying to see that we create a cleaner atmosphere so that the next generation is very well taken care.
Mubina Kapasi: I think personally invested also in it, right? Being a Delhiite, it’s something that you struggle with on a day to day basis. I think that in itself is a motivation to work.
Raghunath Srinivasan: Of course, yes, of course, yes.
You know, one more thing I like particularly if I talk about pollution, this is pollution norms and all other things. It is more of an opex cost. It never helps in any company to productivity and all rather it increases the cost.
So the main awareness what we are trying to do is, you know, it’s a human tendency if your vehicle is very much old, the first tendency comes, let me get a certificate which allows me instead of investing in controlling the pollution. So it is an opex cost. It doesn’t help you in reducing the manufacturing cost.
But what we are trying to talk about is the sustainability, the bringing the awareness. This pollution is now not about for us. We have lived our lives almost, you know, we’re crossing.
I’m already in my 50s. So it’s a balance of another few years. The last I’m in that my T20, like the point is the next generation should be, they should be healthy, you know, they should be having more longevity.
So what is important is to control the pollution. As a company, we are focusing a lot. Not only that, whatever products we are into, we are focusing on the green energy or not only that, whatever it is, the main theme is the green.
So if you see our stall, what we have, what we are displaying and what we are trying to do is all towards the green energy.
So is, ISGEC, I mean, it’s always been new, like the name is heavy engineering, right? Like you said, traditionally boilers, sugars, etc. That’s been your businesses.
Yeah. But is there like a conscious choice now to move towards green solutions? Green steel is something that you all have actually put out in your.
Raghunath Srinivasan: Yes, there are conscious efforts.
And not only that, when you talk about industry that we are talking on moving into the hydrogen side, there are so many other things. The total focus is on that. It means whatever solution we are giving to the industry, whether it is steel or cement at all, we are trying to see how the green element comes into the picture.
So it’s when you talk about green, it’s all about, you know, making the environment more greener. So those things which we are focusing.
Mubina Kapasi: Even in your traditional or mainstay businesses, you will try to infuse a certain level of sustainability in your business.
Raghunath Srinivasan: Yes, yes, yes. Not only that, when you talk about sustainability, more important is how you are selecting your vendors. So we are now focusing the companies, the contractors, you know, the vendors.
We are trying to enforce this clause that whatever they are doing, it has to be a sustainable business. So what is more important for us at the end of the day, when we talk about green, it is also important to educate our vendors or suppliers also. So they also practice those things.
Ultimately, we have to maintain ecological balance. And that is what we are trying to do.
Mubina Kapasi: Okay, you mentioned a very important point that it’s an OPEX, right? That’s when companies have to inculcate certain green practices, appoint you, your team for, you know, greenifying their processes.
That’s an OPEX. It does not necessarily directly contribute to productivity. Do you think that culture is changing?
Raghunath Srinivasan: Of course, yes.
Okay, the next generation, naturally, when we are trying to talk and when we go into the market and we talk to the clients and all, there is an awareness. They are looking for solutions. Of course, when you talk about any investment and all, they always look forward for the most optimum solution.
But there is an awareness. There is a change in culture. There is a shift in approach that yes, this is the only thing which can make us survive.
Not only that, the human can, you know, the humanity and everything. The race has to be. Yes, yes, yes.
It has to be.
Mubina Kapasi: But of course, there are certain reporting norms, etc. as well now.
Raghunath Srinivasan: Yes, there are norms globally, different industries and all we are doing. And the most important thing is as a management, if you talk about it, it comes from the top. Our managing director, Mr. Aditya Puri is very much focusing on this about the green solutions.
Not only that, we have planned our own manufacturing where we are cutting down on the dependability upon the grid power and all the solar panels, even the rooftop, the workshop shed. Slowly, we are moving into that manufacturing and all. So, Mr. Puri is always telling that whatever every business, we have different verticals.
Like when I talk about green energy, particularly air pollution, the chief executive, Mr. Suman Jain. So, now we are trying to see what we can do, whether it is in the green, you know, we are focusing totally on that. It is driven from the top.
And luckily, the fourth generation, the families into this business, very well covered into, you know, we are very well in Bombay Stock Exchange, a very well listed company and all, you know about it very well. So, you have been covering the news and all. So, the focus is totally towards environment and all.
So, I am sure in the coming years, we will totally, you know, we see India so far from the developing countries, like Mr. Modi is also talking about making India. Our total focus is also towards bringing the technology tie-up, what we have to make things in India. So, we are also focusing on with our all the partners, wherever we have the joint ventures or collaboration.
We are trying to tell them that let us have 100% manufacturing in India and taking care of the environmental aspects.
Mubina Kapasi: Let’s talk about your division, air pollution control equipment and projects. So, could you tell me what exactly are you talking about? I mean, what exactly are these equipments? How do you contribute to making perhaps a manufacturing unit more greener and reducing their emissions?
Raghunath Srinivasan: Yes.
As far as air pollution control equipment is concerned, in this, we take care about the particulate emission, which is going to the atmosphere. If you traditionally, if you, to make you understand, if you look at any thermal power plant and all, in the stack, you can see, you know, the smoke’s coming off. But this carries a lot of coal particles also.
So, of course, central government has set up an ops and people are doing that. But when we talk about from the industrial range, so there are industries, whether it is steel or cement, today we are talking about, we are participating in steel expo. So, all the steel mills and all, during the manufacturing different stages, a lot of emissions goes on.
We are trying to capture those particulate emissions and sending it to the atmosphere in a much cleaner manner. These are all project business. And in the project business, what happens? These are all turnkey solutions.
We need to do engineering, then procurement and constructions, and then construction and commissioning. We have to demonstrate by the PG test and all. So, the project gestation period can be 10-12 months to 2 years, 3 years.
We are doing a lot of projects, whether it is Tata Group or JSW, Jindal. I’m talking from the steel point of view, as we are sitting in a steel expo. But yes, not only that, we also do a lot of sulfur capturing project in air pollution.
Like we are doing FGD, that is, Suchlu gas desulfurization, capturing the SOx and all. So, for NTPC, Kudgi and Gadarwara, these are all single order value of 800-850 crores. So, these are large projects, 3 years duration, 3.5 years.
These are our huge investment. Government is doing that. But yes, when you talk about industries, our main focus is to cover the cement, steel, refineries, petrochemicals, fertilizers, everywhere, wherever there are transfer points to capture the particular emissions, and then also controlling the SOx and NOx.
We have different technology tie-ups. We make most of the things in-house. But yes, for certain things, we are depending upon the overseas partners, which we are trying to indigenize it under the Make in India policy.
Mubina Kapasi: So, at what stage? Do you come in during the greenfield stage or do you come in even for set-up of factories and manufacturing?
Raghunath Srinivasan: Yes, it all depends upon the project. For example, when we talk about any new projects which are coming up, for example, JSW Steel for their Dalvi plant, in 2018-19, they started putting up a 5MTP expansion. So, yes, we supplied one major bag house for them, almost a 2 million volume capacity.
Now, they are putting up another phase expansion of 5 million ton additional in the same facility. For one of the application of Haas House, we are doing a 2.8 million volume bag house again for them. So, when you talk about such expansion and all, it is from the beginning, inception.
But when you talk about old plants and there are a lot of pollutions which they want to try to control and all.
Mubina Kapasi: And those are the ones that have more emissions probably.
Raghunath Srinivasan: Yes, the older ones, because those days the technology was different.
So, many projects we are doing where in the existing one, it becomes a brownfield, it becomes a project like an R&M project, it becomes like same way when you’re talking about controlling the emissions. If you talk about controlling the particulate emissions, you have bag houses, you have electrostatic precipitators. All the thermal plants in India, traditionally all the utility plants and all, they are all having electrostatic precipitators.
Now, we are doing retrofit and modernization work for Mahajanko’s plant in Chandrapur, 2×500 megawatt. Recently, we were awarded for this same modernization, retrofit from WBCL for 3×210 megawatt. We did for JSW’s plant for Badmehr, 8×150 megawatt.
We are doing for their 2×350 megawatt electrostatic precipitator retrofit. So, these are all to bring down the norms which were earlier at maybe 150 norms or 250 and all, trying to bring it less than 50, less than 30, depending upon the year when these plants got installed. Because government has also given certain norms, a power plant up to certain year, what should be.
It was very old plants.
Mubina Kapasi: So, there’s actually a huge opportunity.
Raghunath Srinivasan: Yes, lot of opportunities, lot of opportunities and we see a big role in next 10 years, next decade is for the pollution and green fuel.
Even in automobile, if you’re talking about battery operated cars and all, but I have my own opinion at the end of the day, this battery is again, it has to be, when it goes down. But yes, green hydrogen and all, when you talk about hydrogen fired and all, this will be a better thing. That is what we are trying to do.
We are almost contributing close to 800 to 1000 crores of business for this organization where I’m working. So, future is bright and we are trying to see how we can further scale it up. There is a big potential.
Mubina Kapasi: What’s your rough order book like right now? And let’s say if we were to have this conversation five years later, how do you see it changing and contributing to it?
Raghunath Srinivasan: I would definitely like to see five years down the line on the environmental side. We as an organization doing close to three to four thousand crores, there is a potential and there is a huge potential in the market, particularly the older plants, not only older plants, older power plants, older old cement plants. If you talk about any particular industries, there are a lot of takeovers happening, a lot of like Adani has taken over many plants.
Ultratech is taking over many plants, like Adani has taken over some of the plants, like Ultratech has recently taken over the India cement business, which was the ownership of N Srinivasan, you must be knowing it. So, when you are taking up the old plants, that old plant also requires a lot of modernization, taking care of the pollution aspects and all. So, there is a lot of potential we are seeing.
That is a big market because in the old plant, you need to again invest and this investment is not going to give a lesser production cost. These are going to. So, this is a catch 22 situation for any promoter, whether you want to invest that and then because it is not going to give any return of investment except taking care of the environment and we are trying to tell them, okay, please take care of the environment and what will happen and slowly if everybody starts taking care, automatically the prices, so the competitiveness is a question of making people aware about it.
Mubina Kapasi: But I think yours, your division is truly one that’s, you know, what we call as profit for social good.
Raghunath Srinivasan: So, yes, it comes at a cost. Totally.
Everything always has a cost.
Mubina Kapasi: But great. Thank you so much, Mr. Raghunath. It was an absolute pleasure. Making air greener.
Raghunath Srinivasan: Yes, yes, yes. Thank you. Thank you. Pleasure. Thank you.