Pilot plants are small-scale process plants which act as a pre-commercial production system to evaluate the feasibility of certain processes before the start of full-scale production. There are numerous differentiations between pilot plant piping and process plant pipping. For example, pilot plants are smaller in size with a more compact shape, modified more frequently and subjected to more cleaning and inspection. Pilot plants are also likely to handle a more wider spectrum of, known/unknown, materials which could result in higher corrosion, unexpected clogging, higher pressure drops etc.
We have recently expanded our business by entering a new business vertical of design, engineering, fabrication and manufacturing of pilot plants, which we are carrying out from our Palwal Facility III. We intend to provide a one stop solution for pilot plant requirements of our customers which will range from conceptualisation to commissioning of a pilot plant, and will include 3-D modelling, process simulation, control engineering, design, fabrication and construction of a pilot plant, followed by installation of the pilot plant at the site specified by the customer. We intend to develop pilot plants which cater to the research and development needs of companies in the oil and gas, petrochemicals, refineries, specialty chemicals, pharmaceuticals and nuclear sectors, as well towards the research and development needs of educational research institutions. Certain projects by government owned companies, in the pilot plant sector are awarded on the basis of competitive bidding, wherein vendors are evaluated inter alia on their technical capabilities and infrastructure set up to execute such projects. We believe our Company has the required technical capabilities and infrastructure set up which enables us to bid for projects in the pilot plant sector. Other projects in the pilot plant sector, such as those by privately owned chemical and pharmaceutical companies are awarded on the basis of bilateral or multi-party negotiations.
We believe that our pilot plant offerings will enable our Company to start engaging early with our clients, create stickiness and provided end to end solutions. We believe that due to our experience and success in designing and setting up modular skids for our customers across various sectors combined with our wealth of experience in the specialized process piping solutions sector, we are well positioned to capitalise on the opportunity in the pilot plant manufacturing sector.