Watch out for Mahathi in LPG tanks tender

Vol 19, PW 21 (30 Jun 16) Midstream & Downstream
     

Until now little-known Hyderabad-based Mahathi Infra has focused on EPC projects outside India in places like Mozambique, Liberia, Kenya, Uganda and South Africa.

But as the low oil price dries up business overseas Mahathi is turning its attention to India and is the unexpected favourite to win a Bharat Petroleum tender to set up LPG storage tanks. In the first category or 'Lot 1' BPCL wants to construct 4800 tonnes of LPG 'mounded bullets' or underground storage tanks at Hissar in Haryana, Bareilly in Uttar Pradesh, Baitalpur in Chhattisgarh, Patna in Bihar, Khordha in Orissa and Durgapur in West Bengal.

It received bids on April 1 from Mahathi, Mumbai-based GR Engineering, and Pune-based Fabtech Projects & Engineers. In the second category or 'Lot 2' BPCL wants 3900 tonnes of LPG storage constructed at Tanjore in Tamil Nadu, Wai and Jalgaon in Maharashtra, Bakania in Uttar Pradesh and Raipur in Chhattisgarh.

Here bids were received on April 1 from Mahathi, Mumbai-based Sharp Tanks & Structurals, GR Engineering, Jamnagar-based Vijay Tanks & Vessels, Fabtech Projects and Mumbai-based Fab-Tech Works & Constructions. "Mahathi is probably finding it tough to get business overseas," says a rival.

"They could quote aggressively to break into the market. We know little about them.

All the other bidders are known quantities and have a fair idea of each other's strengths and risk appetites."

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