Ketan Pendse, Chief Financial Officer (CFO) of TKIL Industries, has outlined an ambitious growth plan, targeting Rs 1,000 crore in green hydrogen revenue by 2030. In an exclusive conversation with ET CFO, Pendse discussed the company’s aggressive push into clean energy, identifying green hydrogen and ethanol as the key growth drivers for the company.
Green Hydrogen: The Future of TKIL IndustriesPendse is highly confident about the potential of green hydrogen, describing it as a critical part of TKIL’s future.
He revealed that the company has already entered into partnerships, including one with SoHHytec, to tap into the emerging green hydrogen market.
“We are currently incubating this business and expect significant growth within the next three to five years,” Pendse added. He also provided insights into the scale and flexibility of the company’s green hydrogen offerings.
Pendse also highlighted that these plants could be installed quickly—typically in 12 to 18 months—enabling customers to see returns on their investments in a relatively short period. “In terms of business projections, within the next 3 to 5 years, we expect this sector to generate anywhere from Rs 1,000 crore to Rs 2,000 crore in revenue. This is our base case scenario, considering the speed of plant installation and payback efficiency,” Pendse said.
He added that once these plants are operational, green hydrogen could become one of the company’s dominant verticals. “Looking ahead, this could become one of our major business verticals within five years, with significant contributions to our overall revenue by 2030,” Pendse noted.
Ethanol: Transforming the Sugar Industry
In addition to green hydrogen, Pendse discussed TKIL’s shift in focus within the sugar sector. He highlighted the growing role of ethanol and biochemicals in the company’s future. “Ethanol is no longer just a byproduct in the sugar industry; it’s now a primary product,” he said, emphasizing the company’s strategic pivot to capitalize on the rising demand for biofuels and sustainable chemicals.
This shift is part of TKIL’s broader diversification strategy, positioning the company to become a significant player in the ethanol market. “We are positioning ourselves to be a major player in the ethanol space, which is a key part of our growth plan,” Pendse explained.
Strong Growth Forecast for FY25
Despite facing challenges in the first half of FY25, Pendse expressed optimism about the company’s prospects in the second half. “We expect around 20% growth in the top line for FY25, with an 8% increase in bottom-line profits,” he shared. This optimism stems from the company’s diverse portfolio, which spans cement, mining, and power sectors.
“Our diversification strategy has proven effective, and we expect strong performance in the second half of the year,” Pendse added, reinforcing his belief that the company is well-positioned for continued growth.
Private Sector CAPEX: Key to Infrastructure Growth
Looking forward, Pendse sees private sector capital expenditure (CAPEX) as a key driver of infrastructure growth, particularly in power and port sectors. While government CAPEX has remained subdued, Pendse anticipates an uptick in private sector investments in energy and infrastructure. “Private sector CAPEX, especially in power and port development, is expected to rise in the coming years, and TKIL is well-positioned to capture these opportunities,” he said.
Strategic Investment in Green Hydrogen and Biochemicals
As part of its long-term strategy, TKIL is set to invest Rs 120-130 crore in capital expenditure over the next three years, with a focus on expanding the company’s green hydrogen and biochemical capabilities.
“Our investment in green hydrogen and biochemicals is central to our growth strategy. We are committed to making significant progress in these areas and capitalizing on the emerging opportunities,” Pendse said, underscoring the company’s commitment to clean energy solutions.
With green hydrogen, ethanol, and biochemicals at the core of its strategy, TKIL Industries is positioning itself for substantial growth in the coming years. Pendse’s vision for the future is centered on these emerging sectors, which he believes will be pivotal to the company’s long-term success.
“We are confident that our focus on green hydrogen and ethanol will drive TKIL Industries’ growth and ensure our long-term sustainability,” Pendse concluded.
