By Puran Choudhary

Copyright indiatimes

In order to cut losses and improve margins, engineering and construction firm Tata Projects is realigning its strategy to focus on predictable project delivery, new-age technology, and sustainability. Also, data centres will be a huge growth area for the company, for which it is working with major US hyperscalers, managing director Vinayak Pai told ET during an interview.“The scale is mind-boggling. What used to be considered large, such as 40 or 100 MW data centres, is now moving to gigawatt-scale facilities. This represents one of the biggest opportunities’’, said Pai.The company has shifted focus from long-term public infrastructure projects, which often faced time and cost overruns, to a mix of public and high-tech private projects. Three years ago, the public sector comprised almost 85% of its order book; today that has dropped to around 50%. Pai said the construction industry is moving towards shorter project cycles.“Earlier, when average projects ran four years, you needed four years of revenue visibility in your order book. Now, with quicker cycles, three years is sufficient’’, he added.Tata Projects, part of the Tata Sons Group, said it expects a turnaround as major projects, including the Micron semiconductor facility in Gujarat, Noida airport, the dedicated freight corridor, and units of HPCL’s Rajasthan refinery wrap up this year.“These new projects are technology-led, need higher-skills, and bring better margins. The real impact will be seen next year and the year after when such projects will account for a larger share of our portfolio’’, Pai explained.In FY25, Tata Projects recorded a net loss of Rs 696.57 crore compared with a profit of Rs 81.96 crore in FY24. The company cited the challenges of legacy projects and lean margins as the reasons for this.Next-gen manufacturingPai said the company is betting on clean and green fourth-generation manufacturing. The clean segment includes semiconductors, electronics, and pharmaceuticals, while green manufacturing covers solar panels, batteries, and EVs. “Both are high-growth areas in India. The government’s schemes are pushing massive investments here’’.He added that there is a first-mover advantage in this industry. “You can’t wait until the wave arrives; you need to be ready ahead of time. The new complexity and scale of projects in India bring a huge opportunity for us’’.On talks about its IPO, Pai said that the management’s focus over the next six months is to achieve financial fitness, stabilise revenues, and ensure steady growth. In March, the company announced a Rs 2,500-crore rights issue, which, according to Pai, will help ease liquidity pressures and fund investments in prefabrication, precast construction, and technology upgrades.