BGR ENERGY SYSTEMS LTD

The Company was originally incorporated in 1985, as a joint venture between GEA Energietechnik GmbH, Germany and the Promoter, Mr. B.G. Raghupathy, to manufacture and sell On-line Condenser Tube Cleaning Systems, Debris Filters and Rubber Cleaning Balls used in Thermal and Nuclear Power Plants. In 1993, Mr. B. G. Raghupathy and members of his family became the sole shareholders of the Company and began to expand the range of product and services range in the Power and Oil & Gas industries. On June 28, 2007 the Company name was changed from GEA Energy System (India) Limited, to BGR Energy Systems Limited.

BGR Energy carries on the business in two segments, the Supply of systems and Equipment and Turnkey Engineering project contracting.

In the Turnkey Engineering project contracting business, the company engineer, manufacture, procure, construct and commission projects in the Power and Oil & Gas sector, wherein it take Turnkey responsibility to supply of a range of equipment and services, including the civil works required for a project and other work as may be required under the contract for such project.

The company executes Turnkey Contracts to supply the Balance of Plant ("BOP") Equipment, Services and Civil works for Power Generation projects, in which it supply, from a single source, the Balance of the plant, i.e. items other than the Boiler, Turbine and Generator. Having successfully executed BOP contracts, it has begun to focus on Engineering, Procurement and Construction ("EPC") contracts, in which it Design, Engineer and Supply all of the equipment required for a Power Plant including the Boiler, Turbine and Generator and Civil works. The Company is currently executing BOP and EPC contracts tailored to customer demands.

The Company consists of five complementary businesses, including:

• Power Projects business, which provides turnkey EPC and BOP services for coalbased Thermal Power Plants and Gas-based Combined Cycle Power Plants typically over 100 megawatts ("MW"), and which completed its first contract in 2002
• Oil and Gas Equipments business, which designs and manufactures gas conditioning & metering skids, storage tanks, pipeline pig launching & receiving systems, gas processing complexes and gas compressor packages related to the oil and gas industry for companies in India and abroad, and which began operating in 2001
• Air Fin Coolers business, which designs and manufactures Air Fin Coolers which cool process fluids and gases used in the refining, petrochemical, and oil and gas industries, and which began operating in 1994
• Environmental Engineering business, which designs manufactures and provides Deaerators, Desalination plants, Water treatment plants and Effluent treatment plants, which have application in Power and Process plants and other Industrial plants, and which began operating in 1996

Mr. B. G. Raghupathy (60), a science graduate and a first generation entrepreneur, early in his life, identified opportunities in the power sector. He laid the foundation for this organization with a small factory at Pannamgadu Industrial Estate, Nellore in 1986. He began by doing fabrication work for BHEL's ancillary unit in Ranipet. Simultaneously he was in negotiations with various foreign companies. He established contact with GEA Energitechnik, GmbH and secured large contracts for GEA. GEA then proposed and entered into a 40:60 joint venture agreement and set up GEA Energy System India Private Limited in 1985. The company commenced manufacturing load condenser tube cleaning systems and debris filters - both import substitutes. Even before completion of the civil works the company received its first order worth Rs. 17 lakhs from Neyveli Lignite Corporation in 1987.

In 1991-92 GEA Energy System (India) Pvt. Ltd., achieved the distinction of having won the Indo German Chamber of Commerce Award for outstanding export performance. His focus on international quality in products and services helped the company win many Export Performance Awards. GEA India won an order from Tenaga Nasional Berhard of Malaysia as part of their modernization program. GEA clinched the deal competing with a tough International player. In an interview with Business India magazine, Mr. B.G. Raghupathy had said, "It was most trying time in my life. The fight was bitter at every stage".

Subsequently in 1993 GEA Energietechnik divested its stake to Mr. B.G. Raghupathy. From 1993 to 2000, Mr. B.G. Raghupathy entered into many technical collaborations and joint ventures for various equipment and services for Power Sector. With a good record of completed projects, and a slew of technical collaborations, Mr. B.G. Raghupathy pioneered the concept of Balance of Plant (BoP) in India. He created a new market in the sector. This would mean execution of contracts which is outside of the Power Island the Boiler, Turbine and Generator. He went on to create the Power Projects Division in 1997 and the company got the first BoP contract in 2000 and an EPC contract in 2003. In 2008 the company went public, renamed as BGR Energy Systems Limited became a turnkey service provider for Power Plants. In 2010, a JV was signed with Hitachi Power Europe for Super Critical Boilers and another with Hitachi Limited Japan for Steam Turbines and Generators. In subsequent years, he enabled the company catapult to the top league in EPC segment with orders from NTPC and other State Electricity Boards.

Mr. B.G. Raghupathy’s strategic thinking, network, quick and bold moves helped him create an enterprise that can handle projects of any size anywhere in the world.