20TH ANNUAL REPORT 2018-19

BLUEPRINTS

RESOURCE ALLOCATION

GEOLOGICAL IMPLICATION

Innovate and Scale

AIM HIGH. DELIVER VALUE.
Innovate and Scale
Tata Consulting Engineers Limited (TCE) is a leading and well-established
company in the engineering consulting business. The focus for TCE is to stay
relevant in changing times, be relevant in the global markets and collaborate
to provide solutions in areas ensuring we meet client expectations.
To keep progressing along these focus areas, the Company is prepared
with innovative solutions that will further help us scale. Aiming higher and
focusing on providing high value to customers will help the Company
scale new heights and establish long-term relationships with customers.
A climate of innovation will help attract and retain the best of talent to drive
the growth engine.
Contents
Business Review
02 TCE at a Glance
04 Businesses
06 Presence
08 Performance Highlights
10 Chairman’s Statement
12 From the MD’s Desk
16 Q&A with the Chairman
Infrastructure | pg no 32 Power | pg no 36
18 Board of Directors and
Management Team
20 Corporate Governance
22 Risk Management Overview
24 Value Creation Model
26 Strategic Framework
Business Review
Resources | pg no 40 Programme Management | pg no 43
32 Infrastructure
36 Power
40 Resources
43 Programme Management
45 Digital and Advanced Technologies GEOLOGICAL IMPLICATION BLUEPRINTS

46 Talent Management
49 Corporate Social Responsibility
52 Corporate Information
Digital and Advanced Technologies | pg no 45

Approach to Reporting Management Review

The Annual Report is aimed at meeting the information requirements of all our For optimal presentation of the information in the Report, the strategic
stakeholders, including investors, customers, suppliers, employees, contractors, framework, governance overview, performance and value-creation model are
competitors, press, analysts, the government and others. all perused by the Senior Management.

Materiality Reporting Principle

The Report includes information which our Senior Management believes, is Through the Report, we are attempting to present our ‘integrated thinking’
material to our stakeholders and it presents an overview of our businesses and process by aligning our communication with the International Integrated
associated activities that help in short, medium and long-term value creation. Reporting <IR> Framework by the International Integrated Reporting Council
We have presented information around our strategic approach and the Report (IIRC) and the Companies Act, 2013. The Report tries to communicate a clear,
also discusses what different capitals mean for the Company. concise, integrated story that explains how all our resources are put together in
creating value for the business and its stakeholders.
Scope of the Report
We have presented the information on all our business units in a fair, balanced
and understandable manner. The performance disclosure is reported for the
period FY 19.

Forward-looking statement
This annual report and other statements – written and oral – that we periodically make, contain forward-looking statements that set out anticipated results
based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using suitable words in connection
with any discussion on future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been
prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks
or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or
projected. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
 20th Annual Report 2018-19

TCE at a Glance
Tata Consulting Engineers Limited (TCE) is an
integrated engineering consultant providing
concept to commissioning services in
Infrastructure, Power and Resources (Hydrocarbons
and Chemical, Mining and Metallurgy) sectors.
TCE is a 100% subsidiary of Tata Sons Ltd. The Tata
group is considered to be one of India’s most
respected conglomerates.

Established in 1962, TCE has completed

about 7,500 projects in over 55 countries.
With a strong knowledge base and
technical expertise, TCE has a track record
of delivering several one-of-a-kind projects.
The Company has multi-disciplinary
engineering talent with capabilities to
manage complex projects worldwide.
TCE is among the few companies geared for
the Industry 4.0 era, providing engineering
solutions for Industrial Internet of
Things (IIoT).
Currently, TCE is executing projects
(design, engineering and/or site services) at
130 sites across India and overseas.
With expertise and technological
capabilities, TCE has a dedicated talent pool
with core engineering skills, thus serving as
an integrated service model for its clients.

57
Years of
$35 bn
Worth of projects
technical excellence under management

02
Innovate and Scale

2,719
People

7,500
Projects
delivered globally

The Company’s ability to manage complex projects, and

experience in building cost-effective and environmentally-friendly
solutions, make it one of the most sought after engineering
solutions partner across the globe. TCE’s digital engineering and
3D-5D delivery models enable the Company to provide niche
services tailored to client needs. This is underscored by several
success stories in delivering one-of-a-kind projects.

Mission Vision

To provide technically excellent To be an internationally respected

and innovative solutions for adding engineering consultant offering
value for all Stakeholders, and comprehensive solutions
operate globally as Professional
Consulting Engineers

Core Values

Customer Employee Technical Organisational Responsibility

Satisfaction and Dignity and Excellence with and Individual to Society
Loyalty Self-Respect Professional Growth
Ethics

03
 20th Annual Report 2018-19

Businesses

Infrastructure Power

38%* 22%*
Built Environment - Thermal and Hydro Renewables
Water and Waste Management - Nuclear
Transportation - Transmission & Distribution (T&D)
* Share of revenue

04
Innovate and Scale

Services

- Design and engineering

- Programme Management
- Procurement management
services
Resources - Construction management
and safety
40%* - Digital and advanced
technologies
- Hydrocarbons & Chemicals
- Mining & Metallurgy

05
 20th Annual Report 2018-19

Presence
World’s tallest
statue - Statue of Unity
Himachal Pradesh
Punjab 3
2
Uttaranchal
Chandigarh 2
Haryana 1
3
Delhi
Sikkim
1
1
Rajasthan Uttar Pradesh Assam
1 4
2
Bihar
1 50
Tripura
Gujarat Jharkhand 1
Madhya Pradesh 49 47
10 West Bengal 48
3
4 45
2 42
Dadra and Nagar Haveli Chhaattisgarh
1
2 Orissa 46
7 43
Maharashtra
10

Telangana Region-wise share 44

2 in revenue (%)
64.13

Karnataka
Andhra Pradesh
6 5

19.75
Tamil Nadu 16.12
5
Kerala
1
Map not to scale INDIA MEA RoW

INDIA
Assam Dadra and Nagar • Jhajjar Kerala • Thane • Sriperumbudur
• Dibrugarh Haveli (Silvassa) Himachal Pradesh (Thiruvananthapuram) Orissa • Thoothukudi
• Guwahati Delhi (New Delhi) • Kinnaur Madhya Pradesh • Banharpali • Tuticorin
Gujarat • Kullu • Bhopal • Bhubaneswar Telangana
Andhra Pradesh
• Ahmedabad • Shimla • Nepanagar • Dhenkanal • Hyderabad
• Kakinada
• Baroda Jharkhand • Satna • Gopalpur • Secunderabad
• Shriharikota
• Bharuch • Jamshedpur • Ujjain • Narendrapur Tripura (Agartala)
• Vijaywada
• Dahod • Ranchi Maharashtra • Paradeep Uttar Pradesh
• Visakhapatnam
• Gandhidham • Noamundi • Aurangabad • Rourkela • Allahabad
• Yeddumailaram
• Gandhinagar Karnataka • Chandrapur Punjab • Bulandshahr
Bihar (Patna)
• Jamnagar • Bangalore • Mumbai • Bathinda • Noida
Chhaattisgarh
• Rajkot • Belagavi (Belgaum) • Navi Mumbai • Mansa • Sonebhadra
• Raipur
• Surat • Bellary • Pune Rajasthan (Jaipur) Uttaranchal (Dehradun)
• Durg
• Vadodara • Bidadi • Ratnagiri Sikkim (Gangtok) West Bengal
Chandigarh
Haryana • Hubballi • Shirdi Tamil Nadu • Kolkata
• Mohali
• Faridabad • Shimoga • Solapur • Chennai • Medinipur
• Nayaraipur
• Gurgaon • Tal Khed, Dist. Pune • Hosur
No. of Cities (Domestic Projects)

06
Innovate and Scale

Commissioning of the world’s

largest zinc mine (Gamsberg)

39 34
35
32

31
36 38 33

37 18
12
17 19

3 13 11
7 8
15 5 1 2 4 6
10 14

28
20 23
29
26
30
16
24
25
9

22

27

40
21

Map not to scale 41

ASIA
15. Riyadh, Saudi Arabia 28. Mekelle, Ethiopia AUSTRALIA
1. Abu Dhabi, UAE
16. Selangor, Malaysia 29. Port Harcourt, Nigeria 40. Brisbane
2. Barka, Oman
17. Seoul, South Korea 30. Rivers State, Nigeria 41. Sydney
3. Dammam, Saudi Arabia
18. Tokyo, Japan
4. Dhaka, Bangladesh
19. Yokohama, Japan EUROPE NORTH AMERICA
5. Doha, Qatar
31. Baden, Switzerland 42. California, USA
6. Dongguan, China
AFRICA 32. Berlin, Germany 43. Houston, USA
7. Dubai, UAE
20. Abuja, Nigeria 33. Gallarate, Italy 44. Mexico City, Mexico
8. Fujairah, UAE
21. Aggeneys, South Africa 34. Hamburg, Germany 45. New Jersey, USA
9. Jakarta, Indonesia
22. Chingola, Zambia 35. Handelsregister, Netherlands 46. New Waverly, USA
10. Jeddah, Saudi Arabia
23. Djibouti, Ethiopia 36. Leioa, Spain 47. New York, USA
11. Kathmandu, Nepal
24. Kampala, Uganda 37. Lisboa, Portugal 48. Oakbrook Terrace, USA
12. Korea, South Korea
25. Kigali, Rwanda 38. Saint Paul Lez Durance, France 49. Ohio, USA
13. Lalitpur, Nepal
26. Lagos, Nigeria 39. Northwich, UK 50. Vancouver, Canada
14. Ras Al Khaimah, UAE
27. Lusaka, Zambia

International Project Locations

07
 20th Annual Report 2018-19

Performance Highlights

Financial capital
Comprises of funds we raise, our earnings, the overall
revenue generated

`729 cr `106 cr
Revenue Underlying profits before tax

`1,096 cr `134 cr
New business / order EBITDA
book value

Manufactured capital
Project design, engineering, construction, maintenance and
management - stages when we use materials, equipment, tools
and technologies

17
Offices (includes project,
sales and branch offices)

Intellectual capital
Innovations around technologies for increasing project efficiency and
advances in digital technologies, preparing for the era of Industry
Internet of Things (IIoT)

63
Technical whitepapers
175
New automation
published programmes added

8
New technology offerings
4
Patents filed/pending
and granted

08
Innovate and Scale

Human capital
Collective skills, knowledge and capabilities of our employees and contract staff, which are
at the heart of our business operations

81% 94.8 Diversity

Utilisation of people Office index 14% women

13 86% men

Training man-days
per employee
(technical and behavioural)

Natural capital
Natural resources that our business activities and projects depend on. Efficient operations and optimal use
of natural resources ensure all our business activities have minimal impact on the environment. Through our
technology-enabled solutions, we also help our clients in preserving natural resources. Some of the projects that
we undertake in water, waste management, smart cities, mining & metals, etc. are specifically addressed at natural
capital enhancement

3,529 kwh
Energy consumption
Innovative projects for natural resource conservation
Commissioning of the Gamsberg project turned around a zinc mine that was
unproductive for 40 years. Gamsberg was not considered a viable project due to the
(TCE offices)
high amount manganese embedded in ore and associated complications for zinc
beneficiation. TCE’s involvement with the client since 2013 in carrying out possible
beneficiation techniques has made the project viable. The project adopted a phased
approach campaign processing philosophy including modification in concentrator
and state-of-the-art floatation cells and commercial production of lead, resulting in
additional value. The end-to-end solution optimised the mine’s zinc and manganese
ore production.

Social and relationship capital

Knowledge sharing with project partners, complying with regulations, providing financial and technical
support and ensuring employee involvement in our projects. It also includes the relation TCE shares with the
neighbouring communities.

`172.57 lakh 13,154.25 1,009

Rainwater harvesting
Rainwater harvesting projects
CSR Expenses Corporate volunteering Employee undertaken by TCE in the tribal belt of
manhours volunteers Jawhar have helped provide a means of
sustenance in the water-starved terrain.

09
 20th Annual Report 2018-19

Chairman’s Statement
Dear Stakeholders,

We are in a disruptive era driven by

technological advances and innovative
applications of technology. These are On the back of its strong credentials, I am
positive that the Company will scale new
very much evident in the engineering heights of growth.
consulting business, making it imperative
to turnaround service offerings in tandem
with customers’ changing requirements.
Tata Consulting Engineers Limited (TCE)
set forth in this direction in the last few
years as a result of which the Company
has stood its ground through the cyclical
turns in the macro economic conditions,
ready with solutions that are customer-
centric. 2018-19 was a year of all-round
progress for TCE.

10
Innovate and Scale

Financial People
TCE posted a record turnover of ` 729 crore as against TCE is among the few organisations that has a large
` 651 crore in the previous year. Profit Before Taxes congregation of engineers with core engineering
(PBT) for FY 19 was at ` 106 crore, an increase of 45% expertise. This talent is the very backbone for TCE’s
over FY 18. The y-o-y growth in gross revenues was at success. Our immensely talented workforce, passionate
12%. Return on capital employed stood at 15% in about their projects has, time and again, helped
FY 17, was at 19% in FY 18 and grew to 25% in FY 19. deliver great value to its customers. With the increased
TCE as a company has always been a profitable entity requirement of digital engineering delivery mechanisms,
with sound fundamentals. On the strength of its strong the focus in FY 19 was of reskilling engineers across
credentials, I am positive that the Company will scale business units with training in advanced engineering
new heights and growth. applications. With a strong order book of ` 1,096 crore,
the hiring and retention of relevant and skilled talent is
Governance & systems crucial for achieving our goals. We infuse young talent and
trained them through the Young Engineers Development
TCE has always focussed on good governance practices
Programme (YEDP).
and established systems and processes to enforce the
same. Anti-bribery & anti-corruption, Prevention of TCE engages with communities through its flagship
Sexual Harassment (POSH) at workplace, adherence to programmes and structured volunteering programmes.
General Data Protection Regulation (GDPR), whistle- FY 19 saw about 1,009 employees participate
blower framework, etc have been institutionalised enthusiastically in CSR initiatives to benefit the
through policies and guidelines. Business processes community, clocking in about 13,154 hours.
have been strengthened through IT systems, making
for a transparent mechanism with a view to protect Into the future
client IPR and build client confidence. The risk
In all, it has been a momentous year for TCE. My best
management process has been strengthened with a
wishes to our employees, customers and partners who
clear focus on addressing and mitigating material risks
have placed their trust in us. I would like to thank the
to the organisation.
Management and the Board members of TCE.
Mr. S. Padmanabhan (Chairman), Mr. P K Ghose (Audit
Committee - Chairman) and Ms. Hema Ravichandar
`729 cr `106 cr (Nomination and Remuneration Committee - Chairperson)
for their valuable contribution to the success of the
Record turnover PBT for FY 19
Company.
45% ∆
Wishing you all the very best.

12%
y-o-y growth in
25%
Return on capital
Sincerely yours,

Ashok Sethi
gross revenues employed

11
 20th Annual Report 2018-19

Managing Director’s Overview

Yet another year rolled by in the pages of
TCE’s long haul in the engineering consulting
business. This time around, as several
landmark moments in the past, we have
another new story to tell. The last couple of
years were those of rigour, as the Company
firmly established itself in readiness for the
future. I am proud to say that we are ready
for the next generation of engineering and
are absolutely prepared for the disruptive
technologies of Industry 4.0. Our efforts and
diligence paid-off as we crossed the golden
milestone of ` 1,000 crore in business I am proud to say that we are ready for
the next generation of engineering, we
orders and PBT of ` 106 crore. In a highly are absolutely prepared for the disruptive
fragmented industry with great challenges in technologies of Industry 4.0.
talent retention and profitability, TCE stood
its ground as a strong and reliable player in
the engineering consulting space. As TCE
moves ahead, it’s worthwhile to relook at the
things that went right and set the Company
on the right course.

12
Innovate and Scale

Performance review
FY 19 saw the highest growth in the Company’s 57-year
history. Total revenues grew 12% over the previous year
at ` 729 crore for FY 19 and PBT at ` 106 crore.
Our multi-pronged approach to maintain a well-
balanced portfolio of client accounts helped us tap
every possible opportunity.
• The clear focus on domestic-international mix helped
us retain our leadership position in the domestic
markets and our niche capabilities ensured large
businesses from marquee international customers.
• 36% of revenues came from international markets
while 50% of our revenues were derived from
strategic relationships, providing consistency in
earnings. It also established the TCE brand as a
reliable and long-term, trusted associate, globally.
• Moving away from total dependence on cyclical
capital investment (capex) scenario, an achievement
of 23% revenues from clients’ opex investments
(operational investment of customers in their asset
lifecycle management) provided consistent earnings
even in adverse investment conditions. This was
possible due to our readiness in client requirements
for asset upgrades, expansions, environment
offerings, and Industry 4.0 solutions, especially in the
international markets.
• Lean operations and agility combined with efficiency
in working capital management ensured resource
optimisation contributing to a strong bottom line.
Strong internal processes and systems also ensured
delivery efficiencies.
• A strategic focus across the businesses and a
consistent approach lead to all business units within
TCE being profitable.
• Strong order books in FY 18 of ` 895 crore provided
a good head start for FY 19 and the year closed
with a milestone in order bookings of ` 1,096 crore.
Our strategic focus of client mix, targeting select
geographies and unique delivery models specific to
each geography, augured well.

13
 20th Annual Report 2018-19

Managing Director’s Overview continued...

Strategy and operations Talent Management

The future in engineering lies in digitalisation, While we focus on asset management for our clients,
standardisation and modularisation. TCE made a foray our biggest asset is its highly skilled workforce of
in delivering a modularised solution for a global power engineers with diverse backgrounds. In a competitive
major. The expectation from clients is engineering environment for the best available talent, we
solutions for digitisation of assets and asset lifecycle recruited 105 fresh graduate engineers from leading
management. Asset sweating takes precedence over engineering institutes across India and inducted them
asset creation. TCE has secured a first-mover advantage through our flagship orientation programme, the
in Industry 4.0 and IIoT technologies in the engineering Young Engineers Development Programme (YEDP).
consulting domain. With disruptive technologies breaking through, the
need for re-training existing talent is a necessity. We
Our investments in high-end engineering design and
introduced training across levels for technical, software
project management tools have helped us develop a
and knowledge upgrade programmes. FY 19 ensured
distributed delivery environment and provided us the
technical training for 1,395 persons and - overall
leeway to service customers with a globally distributed
training for 2,358 employees.
model enabled by a digital collaboration backbone.
Bringing in efficiency to delivery and operations, we
adopted several tools for process, project, delivery
and financial management. We also formalised our
engineering processes with digital engineering
tool sets.
TCE continues to work on its strengths of providing
solutions in niche areas, serving as engineers to India’s
Smart City agenda with key solutions in ramping up
India’s cities as sustainable cities and contributing to
development. TCE continued to serve the country’s
unique needs through strategic projects in space,
defence, nuclear power and research projects such
as ITER. Our expertise in mining and metals came to
fruition with the commissioning of the world’s largest
zinc mining facility in Gamsberg, which was possible
due to innovative engineering to turn around a mine
that remained defunct for over 40 years. Water and
waste management continues to be the Company’s
strength with projects being managed in about
seven states in the country. TCE’s strong operational
efficiencies have helped build trusted relationships
with large clients in Hydrocarbons and Power in the
Middle East, Africa and Asia.

14
Innovate and Scale

Future readiness to help anchor TCE on the path of innovation and scale
as we ready ourselves for the next growth milestone.
The future is driven by the need for sustainability
and ‘green’ solutions, and the disruption is Going forward, TCE looks towards leveraging the
happening towards this end. In a stressed capital young talent available in India. We have built a robust
investment climate, long-drawn projects with huge training and induction programme. With the need
investments are no longer feasible. The need of the for new skills in the Industry 4.0 era, we hope to ramp
hour is extremely quick returns on investments and up our campus recruitments and increase the youth
sustainable models that drive a circular economy. quotient within the ranks of the Company. In 1963,
Demand is high on standardised designs and Mr. JRD Tata, in his speech on 25 years as the Chairman
engineering that can be repeated and reused. In of the Tata group, said, “ Future belongs to the young.
response to this market need, TCE has adopted 3D-5D We must not only trust them with responsibility but
engineering and constructability analysis. The process must thrust it upon them whilst they are still young and
industry is witnessing increased plant automation, full of energy, zest, hope and even illusions. However
asset-sweating and plant-life extensions, pushing opex heart-breaking it may be to ourselves, we must make
spends. TCE has developed unique delivery models way for the new generations even when we feel we are
and readiness in IIoT technologies for servicing this still in our prime.” This is more relevant today, especially
requirement. The infrastructure space in the domestic for TCE, a company that is about 57 years old! Our task
market is characterised by capital investments in urban ahead lies in orienting the young engineers into new
development, transportation and utilities. TCE has engineering, creating a new breed of young leaders
established a leadership position in this space. with a spirit of entrepreneurship and innovation.
TCE’s expertise in opex provides opportunities in water This, we believe, will springboard us to the next level of
sector that will help in optimising water management growth and keep us centred around our customers and
efficiencies in the country, which we expect will be their changing requirements.
a game changer. Clean energy through renewable
Sincerely yours,
sources is a commitment that is an imperative.
The focus is on clean chemicals and metals, electric Amit Sharma
vehicles, energy storage efficiencies, etc. TCE’s focus in
the coming years will be building capabilities towards
this end.
Sustainable development is the requirement from
customers and this will be the driving motive for TCE’s
growth. Our mantra for FY 20 is innovation and scale
with customer centricity as the driving force. In an era
of transformation, TCE is poised to leap-frog to the next
level in its growth agenda and with the support of our
employees, I am sure that we will blaze a trail adopting
the sustainability agenda.
FY 20 is also a year of change for the senior
leadership at TCE. Our erstwhile Board members
Mr. Padmanabhan as Chairman and Mr. P K Ghose and
Ms Hema Ravichander as Independent Directors,
retired from the Board w.e.f. May 13, 2019. I would like
to express my sincere gratitude for the wise counsel
and insights offered by the Board in helping TCE’s
growth agenda and the drive for strengthening
business processes. I would also like to welcome the
new Board with Mr. Ashok Sethi, Chairman and
Ms. Anjali Kulkarni and Mr. Sriram Kadiyala as Directors.
I look forward to the support from the new leaders

15
 20th Annual Report 2018-19

Q & A with the Chairman

Q & A with Mr. Ashok Sethi, Chairman, TCE

4.0
1
You have been on the
Boards of several companies
for a decade and on the
Tata Power Board for five
TCE, as a large entity in the design
engineering services industry, is well poised
to deliver value to the nation through the
adoption of cutting-edge technology.

The buzzwords for growth worldwide today are: India and China. Since the
announcement of liberalisation in 1978 by the Chinese Premier Deng Xiaopeng,
over the course of 40 years, China built huge infrastructure capabilities, tapped
trade avenues across the globe and lifted its people out of poverty. In the case of
years. Your expertise spans India, the liberalisation that began in the 90s still requires a lot of catching up to
the entire value chain of do. India stands at an inflection point where it has to seize opportunities to take
the power business and off. As the world eyes India as a nation with the greatest development potential,
engineering services. What the writing on the wall is clear. India is faced with a choice of an existential crisis
does the future hold for the or growth and development. The Chinese growth strategy was founded on the
infrastructure sector and boost to the infrastructure sector to begin with. Once this was underway, the
the engineering services country was able to leverage the favourable macro-economic trends of that era.
industry? India also has huge opportunities to leverage upon. The country is the largest
democracy with strong governance systems in place, which is essential to boost
domestic growth.
Given the current situation, India’s growth can be put on a high growth
trajectory only with a focus on developing India’s infrastructure. Investments
in infrastructure plays a major part in pushing up GDP – it generates
employment, boosts ancillary sectors and spurs all-round economic activity,
which in turns spurs GDP growth. Alongside GDP growth comes improvement
in social infrastructure and consumerism. The icing on the cake is the role that
technology development has to play. Present-day India has the greatest digital
penetration and thereby augurs well for technology-driven infrastructure
development. Currently, the key drivers for GDP growth are sectors such as
Infrastructure (roads, transportation, water, buildings, ports), Power (solar,
nuclear, T & D) Resources (hydrocarbons, mining, metal, chemicals etc).

16
Innovate and Scale

These sectors are highly technology driven and need to grow. They are also the
most capital-intensive sectors and require skilled manpower while generating
large-scale direct and indirect employment. They are governed by costs and
the safety of stakeholders. Optimal design solutions, cost effectiveness and
safety can be provided only by high-end engineering design companies.
Design engineering companies play a major role in helping the nation build
infrastructure with the most optimum designs through efficiencies and cost.
In order to deliver the efficiencies expected, design engineering firms need
to integrate to deliver growth. Small players co-existing tends to dilute the
potential for cost efficiencies and quality. TCE, as a large entity in the design
engineering services industry, is well poised to deliver value to the nation.
Through the adoption of cutting-edge technology. The key value proposition
that is expected of the engineering services industry is that of high value
solutions and high levels of safety at low cost.

2
You are credited with the Digitalisation is the basic requirement and the first step towards adopting
transformation of Industry 4.0. This brings us to the question, what brought about the advent of
Operations and Maintenance Industry 4.0? The explosion of ICT technologies and their availability globally
(O&M of the Tata Power was the feed while the need for innovation in production services was the
Generation, Transmission demand. Both have to be exploited to create new innovative solutions in
and Distribution (GTD) assets production processes. The means of survival today is to exploit Information
through digitalisation for and Communication Technology (ICT) to create differentiation whether on the
reliability-centred manufacturing side or in the engineering aspect. TCE is among the very few
maintenance on IIoT organisations in the world to have understood this strategy for differentiation
platforms. What is and is able to offer Industry 4.0 specific solutions to the world. IIoT platforms
the value that such are the biggest transformation agents in the engineering sector, worldwide.
digitalisation offers? The general contention is that increased reliability implies increased costs. The
transformation that IIoT platforms have brought about is the fact that ensuring
reliability does not come with a cost burden. The solar industry stands
testimony to this.

3
TCE, as an engineering I envisage TCE as an organisation with huge potential to grow, especially with
consultant, has diversified the kind of engineering talent the Company has nurtured. My vision for TCE is
and evolved, over the for it to stand for reliability, safety and value for money and these will be the
decades, keeping up to the pillars of the Company while delivering efficient service.
changes in the engineering
The first step towards growth for TCE will be to create innovative delivery
services industry. Where
models for serving its customers. This can be achieved by tapping into the
do you see the Company
potential of people and talent, providing an environment for innovation that
heading from here ?
will propel TCE into a higher growth path in the coming years. The next step
would be to help stakeholders create the next practices and not just best
practices. The need of the hour is to help stakeholders to innovate and create
value for their own stakeholders. Thus, will roll out a value creation cycle. The
third step would be to engage with the communities in such a way that we
help in building their capability through education and sustainability. This will
result in value creation across the economic value chain and turns out as a win-
win scenario for all.

17
 20th Annual Report 2018-19

Board of Directors and

Management Team
Board of Directors

Ashok Sethi Anjali Kulkarni Sriram Kadiyala Amit Sharma

Chairman Director Director Managing Director

Management Team

Sachin Dewasthalee Kalpana Jaishankar Sachin Mishra S. Vidyanand Manoj Kumar

Chief Financial Officer Chief Human Resource Legal & Company Power Resources – Chemical &
Officer Secretary Hydrocarbons

P. R. Shahu Rajat Kaushal Ashwani Sadhu Rajashekar Malur Rajeev Tanna

Digital & Special Projects International Marketing International Marketing Chief Technology Officer Chief Risk Officer
Group (ROW) Group (MEA)

18
Innovate and Scale

Board composition until 13.05.2019

S. Padmanabhan P. K. Ghose Hema Ravichandar

Chairman Director Director

Subsidiary
Ecofirst Services
Board of Directors
Amit Sharma S. Vidyanand
Chairman Director
K. Ramesh
Director
Tapan Choudhury Manmohan Soman K. Ramesh
Resources – Mining & Infrastructure Business Program Management
Metallurgy
Executive Management

Aditya Kumar Mishra Mallika Sriraman Col. Anurodh Mishra Chitranjan Kaushik
Strategy & Planning Corporate Communication Corporate Administration Chief Executive Officer
& CSR

19
 20th Annual Report 2018-19

Corporate Governance
Our Board of Directors and management committee work
in tandem to drive the core values that form TCE’s guiding
philosophy. Our business decisions are taken by the management
committee in consultation with the Board. The different Board
committees oversee the governance standards followed at TCE
and are closely associated with the execution of programmes and
initiatives, maintaining the highest standards of ethics and integrity.

Our governance framework

Board of Directors

Corporate Social Audit and Risk

Responsibility Management
Committee

Nomination Banking
and Committee
Remuneration
Committee

20
Innovate and Scale

Key Roles of the Board Committees

Key decisions by the Board

Area Explanation

Leadership • Legal compliance, audit, accounts and risk management are overseen by the Audit Committees
accountability • The Company’s HR philosophy and practice is reviewed by the Nomination and Remuneration Committee
• The Company’s commitment towards society and as required under the Companies Act, 2013, the CSR spend is
overseen and managed by the Corporate Social Responsibility Committee

Strategy • No. of Board meetings conducted: 6

accountability • Attendance: 100%
• Strategy and action taken is reviewed in the year and performance on key business goals is reviewed annually
• Achievements and important Company affairs reported to the holding company annually, key account risk review,
succession planning and key talent management review, CSR budget approvals, programme review and third-party
audit, discussions on Audit Committee reports are part of the review process

Fiscal • Legal and compliance audit conducted and recorded by the Audit Committee
accountability • GDPR implementation was also conducted.

Transparency in • Relevant information, including financials, is shared with all stakeholders on a timely basis
operations • Information as stipulated by the Companies Act is shared on the Company’s website.

Selection of Being a wholly owned subsidiary of Tata Sons, TCE has adopted the procedure of the Tata Sons Board, which includes-
Governance a. Board selection methodology
Board members b. Board governance system
The Independent Director requirement is done away by the Companies Amendment Act 2017 and the
Corporate Governance Guideline is available on the Company website at www.tce.co.in

Independence and The Company has adopted the policy for rotation of the audit partners. Managing partner dealing with TCE,
effectiveness of internal in both the cases, is changed every five years. Internal audit reports are presented to the Audit Committee and
and external audits deliberated by the Board.

Protection of • Expectations from customers and employees gathered through surveys and other mechanisms for
stakeholder interests communication/ feedback
• Feedback is reported to the Board on exception basis
• Group HR and Legal also communicate with the Company management on policy guideline changes
• Stringent applications of key policies such as, Code of Professional Ethics Policy, POSH, Whistle Blower Policy, Gift Policy,
Corporate Communications Policy
• During the year, the Company did not issue any equity shares. The Company has neither bought back any of
its securities, nor issued any further shares by way of sweat equity and bonus shares. The Company has not provided
any Stock Option Scheme to the employees. The Company has complied with the requirement of converting the
shares in the DEMAT form

Sustainability and Two cases were reviewed under the Risk Management Framework and presented in ARC meeting. Formal risk
risk management management process implemented at proposal and execution level.

Succession planning Succession plans for key positions are made and put up to the Nomination and the Remuneration
Committee. Management teams are invited to make presentations to the Board on Company matters for assessing
Senior Management’s performance and capabilities.

21
 20th Annual Report 2018-19

Risk Management Overview

TCE has adopted the Enterprise Risk Management process that recognises
and seeks to address the key risks at Business Unit (BU) and broader
TCE level. Risk process covers bid stage to execution stage for projects, and
also evaluates strategic, financial, operational, legal and reputational risks,
amongst others. TCE has adopted a business lifecycle approach to manage
risks that arise at three key stages – prebid/bid stage, project execution
stage and BU / corporate functions / enterprise level.

BID STAGE EXECUTION COMMERCIAL ENTERPRISE

Risk Profiling: Key Risks and How We Mitigate Them

Capitals
Risk Category Key Risk Areas Mitigation Strategies
Impacted
Economic • Demand for our services is mainly capex based. Sectors in • TCE’s presence is in diverse sectors, cushioning the
uncertainties which our clients operate may get impacted by economic Company from downturn in any single sector
downturns, reductions in government or private • Diversified business across sub-sectors, geographies, opex
spending, political uncertainty, etc. vs capex, and others
• Uncertain global economic and political conditions may • Proper due diligence of clients & projects undertaken
negatively impact project funding

Business order • Ambiguity in large order bookings due to a lengthy and • Develop new key accounts & enter new areas through
booking & complex bidding and selection process, which includes partnerships, etc.
revenue flow several factors such as market conditions, government • Build customer connect & deepen relationship, for
and environmental approvals key accounts
• Delay in timing of awards or cancellations of such projects • Ensure right quality and quantity of manpower for
could impact our forecasted results achieving project delivery in time and quality
• Cash flows from projects can fluctuate significantly • Enhanced focus on contract & claims management
over the execution period depending on the timing of through review rigour at various levels to ensure project
contract, financing contingencies, approvals, delays, etc. delivery with profitability

22
Innovate and Scale

Capitals
Risk Category Key Risk Areas Mitigation Strategies
Impacted
Project / cost • Long project gestation results in costs increase beyond • Proper due diligence during bid time and higher
overrun budgeted estimates, project delays and scope creep accuracy of manhour estimates for given scope of work,
especially for large projects having long tenures
• Impact on profitability due to deficiency in design,
unanticipated technical problems, change in • Follow project and contract management best
design requirement, multiple iterations, vendors’ or practices to avoid delays and cost overruns
subcontractors’ inability or failure to perform, etc.
• Use of technical tools for efficient project management

Manpower • Our business success depends on our ability to hire, retain, • Multi-pronged strategy with focus on key talent
resources and utilise qualified personnel. Need for specially-skilled retention and recruitment needs
manpower that is project specific as per the needs of our • Better and flexible manpower planning practices
clients, impacts recruitment turnaround time • Source from consultants’ pool for specially-
• The uncertainty of our contract award timing poses skilled manpower
challenges in manpower planning

Dependency on • The loss of or a significant reduction in business from one or • Diversify business across clients and avoid heavy
few customers a few customers could have a material adverse impact on us. dependence or concentration on any single client.
• Unilateral reduction, delays or cancellation of contracts from • Have higher number of key or large accounts
longstanding customers and their ecosystem • Strengthen business relationships with clients at all
levels

Liabilities • Impact due to liability as per contract conditions in • Adequate professional liability insurance at organisation
project execution and project level
• Exposure to monetary damages, claims or reputation risks • Proper due diligence at bid time to avoid taking up of
due to deficiencies in third-party contractors large liabilities, compliance to contract requirements
and professional best practices

Locked working • Time lag in project progress or performance milestones • Due diligence and factoring in locked capital or cash
capital vis-a-vis payment receipts from the customer. flow impact
• Delays in payments from clients on the bills submitted • Better working capital management and collections in
line with contract terms

JV / Partnerships • Inability to fulfill contractual obligations by our JV partners, • Proper due diligence of JV partner during pre-bid/
partnerships and similar arrangements bid stage, esp. on financial ability, experience and
• Limited ability to control the actions of our JV partners, track record
including non- performance, default, bankruptcy or legal • Strong back-to-back contractual arrangement to share n
compliance liabilities and penalties by JV partnership

Geopolitical • Exposure to unfavorable political developments and weak • Proper due diligence during bid time in terms of
developments foreign economies in the international markets such as country or location risk. Avoid excessively risky, unsafe,
changes in foreign government policies, regulations and economically unstable geographies
protectionist measures. Potential non-compliance with • Have systems and processes to ensure compliance
regulations and evolving industry standards, renegotiation to all key regulatory, government and contractual
or nullification of existing contracts, economic instability, compliances, standards, laws, etc.
currency fluctuations, etc.

Intellectual • We protect our IP through contractual arrangements, • Strengthen processes, contracts and other mechanisms
Property (IP) registration, licensing, etc. to safeguard our IP as well as the IP generated during
• Our employees and contractors are subject to confidentiality project execution
obligations from client side to protect their IP. We have • Robust controls and security systems for protection of
contractual and other mechanisms in place to deter or client IP
prevent misappropriation of confidential information and
infringement of IP
• We may be exposed to such risks including litigations
pertaining to scope and protection of IP rights, which
could prove to be costly and could adversely impact
management’s attention and time

23
 20th Annual Report 2018-19

Value Creation Model

At TCE, creating sustained value for all the stakeholders is at the core of our
strategy. Using our resources and relationships and taking actions aligned to our
strategic focus areas, we create sustainable long-term value.

Resources and Relations Strategic Focus Areas

We Depend on
Financing Financial Customers
• Equity • Focus on profitability • Offer cross business and
• Debt with working capital integrated solutions
optimisation across customer asset
• Acquire business in lifecycle
Materials, Tools &
new sectors; 50: 50 • Trusted advisor to
Equipment
international domestic marquee clients
• Design suite
mix of orders • Customer engagement
• Application licenses
• Focus on large deals and and customer satisfaction
• Hardware
work with consortiums
and partnerships
Technology &
Management Insights
People and Learning Attract, Retain and Retrain Talent
• Design engineering
• Project management
• Consultancy
• OPEX optimisation
• Knowledge management

Employees
• For engineering solutions
• At project sites
• Shared services

Raw Material Business Sectors

Suppliers and Vendors

Infrastructure Power

24
Innovate and Scale

Outcomes

• Highest profitability in • 23% of new business

TCE history of ` 106 crore; from opex services
highest order books of
` 1,096 crore • Consortium-based
approach established :
• 45% business from TCE a leader in
Processes
international markets Smartcities and water
• Strengthening processes
projects
for operational, technology
excellence
• Productivity improvement & Customers
cost optimisation • 20% of business orders through cross selling and offering
integrated solutions
• 50% sales revenues from key/strategic accounts
• Customer feedback index at 70%

Processes
• Processes were strengthened through several automation
applications for technology (knowledge management),
Responsible Member of Society
people process, sales & operations. Way of Working
(WoW) process was adopted in more sectors. This helped
streamline deliveries and improve sales along with long-
term relationships with customers
We use our
Learning/People
capital inputs to
• Focus was on reskilling and training. All-round training
help us carry out
was at 13 man-days per employee & technology training
activities that align
was at 4 man-days per employee. Attrition of key talent
to our vision
was curtailed at 8%. 122 young engineers were hired
from campus and made industry ready through the YEDP
• Safety was a key focus on site and in offices. Safety index
was at 4.09 at sites

Responsible Member of Society

• Infrastructure solutions for making tribal villages water
positive was successful in the model village. 2 new clusters
were adopted to provide water management solutions to
benefit about 2,000 people from tribal areas
• Skilling for employment was conducted for 60 students
• 391 migratory workers’ children were provided with
Resources (Hydrocarbons • Integrated solutions
bridge schooling
& Chemicals, Mining & • Program management
• Health camps covered about 322 people from tribal areas
Metallurgy) • Digital and advanced
• Total CSR spends were at ` 1.72 crore
technologies
• Corporate volunteering clocked 13,154.25 hours
• Engineering studies,
design engineering,
• Opex services

25
 20th Annual Report 2018-19

Strategic Framework
1 Target

2
`1,000 cr
Revenue by 2021

Scale
35% growth by FY 21

Innovate across
customer value chain
With best-in-class talent

Goals

Relevance to
stakeholders
Sectors. Market. Services. Talent

Target
Collaborate
Leverage partner ecosystems
5
Approach
6
Strategic Focus

Global Implementation Plan

Reach and markets
Industry 4.0 Innovate
Sustainable solutions
Service portfolio

26
Innovate and Scale

Customer Approach
Design Design Design
Leverage
Infrastructure Power Resources
strengths,
minimise risks
En En
gineering gineering

Program Management

Digital and Advanced Technology

Strategic Map
Trusted advisor to
Within ENR 100 rank strategic clients and Asset lifecycle
International-domestic
(w.r.t. revenue from preferred partners in footprint of
revenue mix 50:50
outside home country) their growth business minimum 30% opex
(75/25)

` 1,000 crore revenues by 2021 & organically grow to ` 2,500 crore by 2026

Leverage strengths, minimise risks

Innovate Relevance to customers

Collaborate scale Scale relevance
Global reach Global reach

Digital asset management Urbanisation and MEGA

Cities - smart Infrastructure,
Digital engineering for a
Industry 4.0 solutions smart city, smart grid, smart IIoT : Plant automation /
circular and sustainable
mobility IIoT / asset digitalization
economy
Innovation in opex and / smart plant
capex solutions in line with Clean and green energy and
market requirements electrification of everything

27
Innovate and Scale
Our core strengths lie in our diversified presence,
spanning over six decades in providing
engineering consultancy services across various
sectors, inclusive of Infrastructure (water and
urban/build environment), Power (nuclear, other
conventional power and energy sources) and
Resources (chemical, steel, metal and mining).

Evolving Context
The growth in the infrastructure segment with policy support and
investments by the government in smart cities and sewage and
water treatment have been very encouraging for our business.
With the advent of IIoT and renewed focus of clients on varied
engineering services supported by digital technologies, we see a
great opportunity associated with opex revenues.
Our focus on opex-based dedicated engineering services for
large multinationals across the globe through exclusive delivery
centres has been instrumental in reducing revenue volatility
associated with capex projects that are inherently vulnerable
to macroeconomic and political factors.

23%
Of new business
from opex services

45%
Of business from
international markets
28
 Prepared to Innovate and Scale
There is an onslaught of digital engineering led standardisation,
modularisation driving circular and sustainable economy,
urbanisation and mega cities, clean and green energy and
additive manufacturing, including 3D printing. Our businesses are,
therefore, aligned to innovative sustainable solutions and services
portfolio and meet customer requirement across the value chain
using the best talent in the industry.

Further, our business strategy is based on the 3S Pillars:

Simplicity: Retaining our core competency

of being an advanced engineering solutions
provider, a simple global structure and our clear
and focussed strategy
Synergy: Leveraging the Tata group’s synergies

3S
as the group’s engineering and design
consultants, building strategic partnerships with
global players and a devising collaborative way
of working internally
Scale: Well positioned to enable growth levers
for the nation, enable scale aspirations of
Tata group’s firms and retain leadership in the
domestic market

`106 cr
Highest profitability
in TCE history

`1,096 cr
Highest order books

35%
Growth targeted
by FY 21
29
Business Review

Infrastructure
 20th Annual Report 2018-19

Infrastructure
The infrastructure business creates new spaces that benefit the society at
large. TCE has successfully managed complex engineering projects across
the infrastructure spectrum, securing a high degree of differentiation in
building large-scale infrastructure facilities.

+20%
Growth in the last
~32%
Contribution to the
38%
Contribution to
three years order book revenue

Market leader in the Smart

City development initiative

One of the top three infrastructure

consulting companies in India

Areas of expertise
Water and environment rainwater harvesting, pollution control, • Developing smart cities that sustainably
• Providing water, wastewater and sewage biodiversity conservation, green building use resources and catalyse economic
treatment systems, among others, to solutions growth
assist authorities in water conservation
Built environment Transportation
and leakage management
• Building a city within a city with complete Creating standalone urban transport
• Offering geotechnical investigations and planning, design and commissioning infrastructure, including airports, rail
underground design innovations systems and ports planning, development
• Providing engineering solution for
to industries and commissioning; as well as connecting
large capacity industrial units and
tech cities and large SEZ spaces
• Managing environment improvement manufacturing facilities
projects such as heritage conservation,

32
Innovate and Scale

Key trends shaping the global industry

Urbanisation: By 2030, 66% people will sources, efficient distribution of quality hyperloop train technologies, as well as fossil
live in cities and there will be increased water in towns and cities. The degree of fuels alternatives to power transportation,
emphasis on smarter infrastructures, privatisation in the water industry will are areas of opportunities. Notably, electric
smarter cities and smarter grids. The pace expand, with a wide range of opportunities, vehicles are projected to usher in the next
of urbanisation will be faster in developing for smart water management, alternative phase of the transport sector’s evolution.
economies. Focus on the needs of the urban water sources (desalinisation) market and The onus is on developing transport
market will enhance, meriting the creation water reuse/recycling, along with irrigation infrastructure that is based on renewable
for new urban entities as well the oversight and rivers. energy sources.
of a holistic integrated planner. The Indian
Mobility: As the population growth surges Digital engineering and digital tools:
demand for infrastructure development
forward, hand in hand with urbanisation Creation and management of assets using
is in the government’s 100 smart city
and industrialisation, more efficient digital tools, together with the interfacing
development and the brownfield upgrade
transportation services are in high demand, and collaboration of physical and digital
of smaller cities under the AMRUT projects.
particularly mass commuting services both assets. Building Information Modelling (BIM)
Climate change: The rise in global within and between cities. Smart mobility is expected to gain ground, as a reliable,
warming and climate change concerns is the focus, with a greater demand for shared knowledge resource for information
translates into extreme weather events and efficient public transport driven by clean and decision-making. TCE delivers most of
high level of water stress. There is a growing technologies. Urban rail services (metro/ its infrastructure engineering on
demand around identifying alternate water mono), high-speed rail and super-fast digital suites.

Key trends shaping the domestic market

• At 6.8% of GDP growth, India is one of the • The world’s 10 fastest-growing cities are • 1,000 km of metro rail, with increasing
fastest-growing large economies located in India density in existing cities, is planned across
20 cities in the next six years
• India is projected to require • Unmet water demand, by 2030, will be
US$ 4.5 trillion worth of investment in its twice the available supply • Port development is expected to see an
infrastructure, by 2040, to sustain its pace investment of ` 57,000 crore in the next
• 10 high-speed corridors, spanning 6,000
of economic growth three years
km and requiring ` 10 lakh crore for the
next 15 years are in the works

Expanding horizons and opportunities

TCE’s Infrastructure BUs are consultants for The infrastructure sector will continue to evolve, integrating various industries, rather
an ambitious waste-to-energy project in than simply focusing on installation and services. To stay relevant amid a rapidly
Mumbai that is designed to process 3,000 changing world, TCE will leverage its innovation excellence and project expertise
TPD waste to convert to 25-30 MWe energy. to scale new heights and establish enduring relationships. In India each year, the
The successful completion of this large-scale addressable consulting market is delineated here.
project is expected to serve as a blueprint
Going forward, TCE will participate in the urban rejuvenation programme; reinforce
for India’s waste management process going
the water management vertical, expand presence in metro rail services, ports, river
forward.
interlinkages and transportation; and explore partnership / collaboration opportunities
for high- speed rail networks.

33
Business Review

Power
 20th Annual Report 2018-19

Power
TCE’s Power business is a market leader in providing value-added concept to
commissioning services in Power generation (Thermal, Nuclear, Renewable, Hydro),
T&D. With changing requirements, the Power business also provides opex services such
as modernisation, plant upgrades, asset lifecycle management, etc. Having made its mark
in engineering and project management of various thermal power plants across the
global, TCE’s Power business has stayed relevant by adapting to the changing needs of
more greener and environmental-friendly power plants. Also, the business has leveraged
several super-critical, large MW plants globally. The business has stayed relevant and
leveraged opportunities in modular plant design, helping large OEMs and Engineering,
Procurement and Construction (EPC) players reduce time to market with modularised and
standardised solutions.

The Power BU is responsible for about 6,780 MWe

22% 27%
Revenue share Contribution to
total nuclear power installed capacity and 4,300
the order book
MWe of nuclear power currently being generated
in India

Exploring new avenues in smart grids, smart

energy, smart metering, scada, renewable and
clean energy generation, interchange storage
and distribution, Storage to be first distribution
& storage

More than five decades of experience in

providing ‘concept to commissioning’
value-added engineering services

Areas of expertise
• Thermal energy: Coal, gas, captive • Renewable energy: Solar, wind, biomass, • T&D: Transmission lines, substation,
and cogeneration hybrid, battery energy storage and distribution and system studies
waste-to-energy
• Nuclear energy: Power generation, • Opex services: Plant renovation,
fuel fabrication, fuel reprocessing, • Hydro power: Small, medium and large modernisation and performance
waste disposal improvement projects and various
Industry 4.0 solutions in existing facilities

36
Innovate and Scale

Key trends shaping the global industry

• Solving the trilemma of energy security, • Gas-based power and renewable energy • Digitalisation of power plants and
energy equity and environment and hydro energy sources and nuclear electricity networks, with a closer
sustainability underscores the power are poised to provide sustainable integration of supply and demand, are
transformation in the sector form of power generation driven by Industry 4.0 technologies
• In tandem with the pace of economic • There is increasing investment in T&D • OEMs and EPCs focus on
development, demand for power to strengthen connectivity standardisation, modularisation and
is growing at an accelerated rate in reuse to gain competitive advantage
developing economies, as compared and reduce time to market
with the advanced countries where
energy efficiency gains offset the growth
in demand

Key trends shaping the domestic market

• Projected capacity addition of 300 GW in • ‘Power for all’ initiative translating into • Retrofit of emission controls and Flue Gas
the next five years with a greater thrust a higher investment in T&D corridors, Desulphurisation (FGD) systems (where
on energy conservation and efficiency rural electrification, microgrid and feasible) in existing coal-based thermal
smart metering power plants and the implementation
• Greater stress on nuclear energy and
of other compliance norms to conserve
renewable sources of power generation. • Deriving greater value from existing
water and generate clean energy
75% of capacity addition is likely to be assets through digitalisation, Internet-
met through green sources (solar, wind, of-Things, smart grid and prudent asset
hydro, nuclear and waste-to-energy) performance management

Going the extra mile

In response to the emerging trends, TCE is stepping up its core focuses on digitalisation and IIoT services relevant to the Power
service offerings in the Power business, reinforcing its strengths and business and opex services for plant upgrades and asset lifecycle
judiciously pursuing the opportunities presented by the Industry management. As renewables come of age, TCE is moving towards
4.0 revolution. TCE will expand its customised requirement-based offerings across solar and wind energy and energy storage
solution offerings by partnering with marquee clients. TCE also technologies for electric the vehicle industry.

37
Business Review

Resources
 20th Annual Report 2018-19

Resources
TCE’s Resources sector has a track record of providing comprehensive engineering
services from concept to commissioning. This translates to consistently delivering
smart engineering solutions for its customers across the value chain.

Hydrocarbon and Chemicals Maintained consistent growth in FY 19 through

successful annuity businesses with large
multinationals in the Middle East and USA

27%
CAGR over the
12%
Contribution to
21%
Revenue share
last three years order books

Areas of expertise
The HCBU provides comprehensive EPCM services to clients in the fields of oil, gas and refineries, petrochemicals, fertilisers,
chemicals, speciality chemicals, cement, food & pharmaceuticals, glass, tyres and allied industries

Opportunities and growth plans Apart from the capex projects in the This strategy is expected to help the sector
domestic market, TCE expects to have good maintain its growth momentum in the
The HCBU envisages growth opportunities
opportunities in the international market coming years. FY 19 saw the strengthening
in the Indian markets fuelled by high
for the following types of projects: of TCE’s relationships with marquee clients
consumption. Large investments
• Plant upgrades, automation and revamps and more such long-term engagements in
are expected in the refinery sector,
• Asset integrity management the pipeline.
petrochemicals, LNG regasification
• Efficiency improvement and
terminals and speciality chemical sectors.
debottlenecking projects
In the international markets, growth
opportunities lie in digitalisation and Globally, the increasing need for green
asset sweating driven by customer needs technologies is spurring growth in
for efficiency improvements and tighter the sector. TCE sees opportunities in
emission controls. bio ethanol and bio CNG investments in
India and requirements for engineering
India’s refining capacity is planned to be
solutions arising from stricter
increased from 230 MMTPA to
environmental norms requiring plant
440 MMTPA by 2030. All the refineries
revamps.
are now integrated with downstream
petrochemical complexes to improve ROI The HCBU is well poised to leverage
and also to cater to the increasing demands these opportunities with a healthy mix of
of plastic polymers in the domestic market. domestic and international clients.

40
Innovate and Scale

Mining & Metallurgy

19%
CAGR over the
12%
Contribution
19%
Revenue share
last three years to order books

Areas of expertise Key trends shaping the market beneficiation, rebuilding and
replacement, capacity additions and
With more than 12 years of expertise in the • Globally, consumption growth is on the
asset-related opex services
Mining & Mettalurgy sector, TCE provides fast track and investments in core facilities
• There is a huge demand for plant
engineering solutions across the value are expected to pick up pace, in emerging
upgrades along the metals value
chain in iron, steel, coal and base metals. markets. India, in particular, will see huge
chain, asset integrity management,
The Company focusses on ferrous and investments over the next decade, as it
process efficiency improvements and
non-ferrous metals in the areas of process builds core infrastructure to cope with the
debottlenecking
metallurgy, material handling, iron making, demand surge. The steel, zinc, copper and
• Stricter environmental norms to restrict
coke making, steel making, ferro alloys and aluminium sectors are expected to see
plant emissions and incentives to revamp
rolling mills. The focus areas in the mining growth due to increased investments
plant assets and optimise production
sector are geology and mine planning, • Disruptive technologies have given
mineral processing and beneficiation, and impetus to new and emerging raw Growing demand across infrastructure,
material handling. materials. Solar, renewable energy oil and gas and automobile sectors, is
generation and electric vehicles are the catalysing the demand for metals. TCE is
Areas of expertise prime drivers for these raw materials. exploring capacity expansion opportunities
Emerging metals that are raw materials in growth metals (Aluminium, Copper
• Design engineering, EPCM and
for the e-mobility segment such as rare and Zinc) in the domestic market and
commissioning services
earths, lithium, nickel and cobalt are leveraging strategic partnerships to elevate
• Process
expected to see new investments. consulting, benchmarking and optimisation
• Asset health assessment and improvements
The world is transitioning to the concept of service offerings. Digitalisation continues
• Layout and logistics
of ‘circular economy’, encouraging a to be the overarching theme to many
• Sustainability
sustainable mine-to-metal process of TCE’s initiatives. TCE has a first-mover
• Slime management
through the entire value chain advantage in advanced process simulation
• Portfolio management
• Within India, the opportunities in iron and analytics. Combined with IIoT
• Digitalisation
and steel making lie in low- grade ore engineering and digitalisation will be the
• Operational advisory
way forward for TCE’s growth in the sector.

The most unique turnaround for a zinc mine in Gamsberg

The world largest single-stream zinc concentrator was inaugurated in February 2019 by the
South African President, Cyril Ramaphosa. TCE reached yet another milestone in a complex
project, managing it from concept to commissioning.
The zinc mine in Gamsberg, was defunct for 40 years. TCE’s initial Definitive Feasibility
Study provided solutions to make this mine profitable. The zinc mine in Gamsberg was not
considered a viable project due to the high amount of manganese embedded in ore and
associated complications for zinc beneficiation. TCE was involved in the project since 2013
in carrying out numerous investigations of the various possible beneficiation techniques.
TCE has made the project viable by adopting phased approach for the project, campaign
processing philosophy including modification in concentrator and state of the art floatation
cells and introduction of commercial production of lead resulting in additional value.
The entire project was managed on 3D/4D engineering platforms.
This is a world-class project and a first of its kind that TCE has successfully helped
to commission.

41
Business Review

Programme
Management
Innovate and Scale

Programme Management
The Programme Management Business Unit (PNBU) serves as a horizontal
service line for infrastructure, power and resources sectors. The offerings
span EPCM services, project management, commissioning support,
engineering programme management and planning, and quality,
inspection and equipment management.

130+
Sites in India and
900
Skilled, dedicated
overseas engineers at sites

Key market trends TCE will continue to adopt new technologies and work
with partners to leverage capabilities and provide
Investments and growth across key sectors where
value to customers. Moving in this direction, smart
TCE is present in, such as, infrastructure, minerals and
construction management practices combining digital
metallurgy, chemicals and hydrocarbons, and power,
tools and engineering expertise is the unique value
promises growth opportunities for the PMBU. Each
proposition that TCE has to offer its customers.
of these sectors are integral to the nation’s economic
progress and TCE’s PMBU is a lead player in India and is
well positioned to leverage its competitive strengths
The projected CAGR for the infrastructure, power and
Process industries is in the range of 21-25%. The PMBU
is a key player in the customer value-chain across the
sectors that TCE is present in, serving as a key link to
complete the clients’ requirements from concept to
commissioning. This offers good growth potential for
the BU.
TCE has invested heavily in digital engineering tools
to serve the requirements of clients adopting Industry
4.0 technologies. Construction management services
can provide tremendous value additions and cost
efficiencies through digitalisation. TCE’s focus will be on
digitalisation using 3D-5D technologies. This will help
critical decision-making in a simulated environment
and increase construction efficiencies.
Safety services is a key focus for the PMBU. TCE, in
its efforts to digitise processes, has introduced a
safety portal called ‘Suraksha’. It provides access to
PMBU engineers and other staff across TCE sites for
knowledge and sharing of best practice.

43
Business Review

Digital and
Advanced
Technologies
Innovate and Scale

Digital and Advanced Technologies

The Digital and Advanced Technologies business is a horizontal business unit that
provides services in Digitisation, Asset Information Modeling, Industrial Internet of Things,
Product Engineering and Special Projects and also Technology with IIoT that supports
other business units of TCE, including Infrastructure, Power and Resources. This BU helps
convergence of information and operation with the Industrial Internet of Things (IIoT).
This convergence helps bring in management for industrial plants and
predictability, cost efficiency, speed and systems across sectors
value engineering in the conventional
As part of the digital services, TCE’s
capital projects, as well as in the
offerings include 3D modelling, 4D
operational sustenance activities of TCE’s
simulation, asset digitalisation, asset
clients. The key service offerings of this
information modeling, engineering IT
unit include digital services and product
services, IIoT and Building Information
engineering. TCE provides end-to-end
Modelling (BIM) services.
advisory, implementation services
for digitisation and advanced asset Product engineering offerings include,
new machine development, design
validation, Finite Element (FE) analysis,
Key market trends
machine localisation, machine component
Internationally, investments are growing development and special projects.
at a rapid pace in digital solutions for the TCE has also made its mark in one-of-a-kind
engineering and construction industry. product engineering service provider and
Moreover, the emerging digital solutions is a proud partner to India’s satellite launch
are adjacent to TCE’s core competencies. and space programme.
Some of the transformative digital
technologies that are disrupting the
engineering and construction sector
include, pre-fabrication and modular
construction, advanced building materials,
3D printing and additive manufacturing,
autonomous construction, augmented
reality and virtualisation, big data and
predictive analysis, wireless monitoring and
connected equipment, cloud and real-time
collaboration and BIM.
GEOLOGICAL IMPLICATION BLUEPRINTS

Scaling up
In line with the key trends, going forward, we plan
to build our business on IIoT, FEA and BIM. We also
aim to grow our asset digitisation business and are
focused on building an internal centre of excellence
for digital engineering.
In the process, TCE will also be focused on building
the partner ecosystem with software OEMs, IIoT
service providers, analytics solutions providers and
other outsourcing partners.

45
 20th Annual Report 2018-19

Talent Management
At TCE, we believe our people are our most important differentiating
factor and it is their hard work, determination and passion that enable
us to deliver successful projects time and again. We offer a conducive
work environment that nurtures talent and prioritises the safety of our
people. With a culture steeped in learning, we offer ample skilling and
reskilling opportunities.

We are confident that these steps help us create

an engaging and positive workplace, provide

13 hours
opportunities to reward and recognise talent, and
help deliver differentiated services to our clients.
Our business facilitates teamwork and we encourage
Training man-days
collaboration and facilitate knowledge management.
per employee
We use various tools and platforms to help us
collaborate with remote teams smoothly and
build engagement.
During FY 19, we progressed towards infusing new
talent in our team, besides reskilling engineers across
our BUs, with training in advanced engineering
applications to cater to digital engineering delivery
mechanisms.

Overall gender
ratio
86% men
14% women

46
Innovate and Scale

Recruitment Training, Learning and Reskilling

We hire fresh graduates and postgraduates as part of campus We nurture our people and train them on behavioural, procedural
hiring from top-notch engineering colleges across India. and competency-related skills through various structured
We also engage in lateral hiring, along with strategic hiring and programmes. By mapping the skills of our teammates, we ascertain
the pre-onboarding phase is managed digitally through TalBoard their current skills and skill gaps, on which they are mentored
for these experienced candidates. and trained.
We offer e-learning for increasing international cultural sensitivity
and project management skills among our people. The training and
Orientation
development interventions (other than induction programmes) are
We have structured induction programmes for recruits at TCE, grouped under:
whether freshers or experienced:
• Continuing education
Young Engineers Development Programme (YEDP): We have a
• Leadership development
methodical benchmarked process for training
graduate/postgraduate hires through our 12-month training • Strategic developmental initiatives identified to align with
programme, YEDP, aimed at making them outcome-focused within short and long-term goals
five months. The Programme enjoys good traction in campuses.
Individual training: Individual training needs are identified at the
YEDP trainees receive 3D tools training and their final project
time of appraisals, wherein appraisers identify programmes based
comprises preparing designs using a 3D-platform.
on the aspirational competencies of the person and competency
In Touch: All lateral hires undergo the In Touch programme. gaps. Thereafter, individual learning plans are created under SMILE/
It focuses on providing them an overview of TCE; values; Skillport for soft skills.
information about our various businesses and functions, including
Technical learning: After the appraisal process, the HR manager
safety, quality, business-enabling functions; and a project-specific
prepares a list of consolidated training needs, derived from the
induction. Additionally, each recruit is assigned a ‘buddy’ who helps
appraisal process, with the BU Training Managers (BUTMs) who
them assimilate with our culture. It orients new hires and improves
incorporate them in their annual training plans.
their overall first experience in the organisation.
Behavioural training: The HR department plans these soft skills
training programme. Customer-focused training needs are included
Retention in the annual training plan of every person onboard.
Our employee retention architecture rests on the robust pillars of
talent management, talent development, career management and
rewards and recognitions programmes.
Individual Development Plans (IDPs): We develop leaders at
strategic and tactical levels to prepare for changing capability and
capacity needs through this programme. We ensure that we create
talent pools with industry-specific domain knowledge at each BU,
which provides agility to manage growth. Additionally, we focus on
cross-skill training and retraining to help our people acquire new
competencies across technologies, roles and functions.
At the project level, workforce continuity is facilitated through
identification of back-ups for key roles and a structured
handover process.

We ensure that we create talent

pools with industry-specific domain
knowledge at each BU, which
provides agility to manage growth.

47
 20th Annual Report 2018-19

Talent Management continued...

Communication
We encourage our people to upload their value additions and
innovations in the intranet and participate in contests such as Tata We concentrate on enhancing a two-way communication process.
Innovista. We also inspire them to participate in seminars, paper We use townhalls, communication meetings, intranet portal and our
presentations and publications, sharing of case studies through in-house magazine — TCExpression — for key communication. Our
Job Completion Reports (JCRs), knowledge sharing sessions and senior leadership members also interact informally with our teams
others that help in internalising key learnings. Innovative ideas are to inform them about organisational developments and the market
shared across, the board, motivating others to think out of the box. conditions. We have provided a designated email for encouraging
Employees are encouraged to share improvement ideas through our people to send in their queries. TECH Speak — a blog — that is
iThink and Reflexions. available on the company website, Tech Tweets — a mailer — and a
knowledge management portal promotes two-way communication
on relevant technology topics.
Safety and Health
We have a formal Safety, Health and Environment policy that acts
Motivation
as a guideline in ensuring the health and safety of our people.
Besides, ISO 9001 audits, TBEM (Tata Business Excellence Model) We have several awards such as the Value Awards (announced
assessment feedback, ICSS feedback and periodic checks by the twice a year) and iThink Awards that recognise contributions on
concerned authorities provide inputs for designing/improving ideas toward the growth of the organisation and provide suitable
these processes. rewards.
Another people engagement programme is -
Engagement • WE-Connect: Our managers conduct informal assessment of
employee satisfaction through frequent interactions with them
Our employee engagement model at TCE drives
while managing the day-to-day affairs. Additionally, the location
‘Affinity - Satisfaction’ dynamics. People engagement is driven
HR also assesses employees’ satisfaction rate through this
through various initiatives townhalls, channel of informal
programme.
communications, formal briefings and updates, etc.
Several activities are conducted to keep the youthful spirit of
the organisation.

48
Innovate and Scale

Corporate Social Responsibility

Powered by our different flagship programmes, along with various
volunteering initiatives, we are delivering on our social
responsibility. Our Corporate Sustainability Policy framework
offers the foundation to build our social well-being programmes
by leveraging our core capabilities. Our primary focus areas
are: Infrastructure, Sustainable livelihood, Health and hygiene,
Education and others.

Focus
Health and hygiene Education
Infrastructure Others
Sustainable Livelihood

13,154.25 1,009 154

Volunteering Employees engaged Programmes
man-hours in FY 19 in social initiatives in FY 19

49
 20th Annual Report 2018-19

Corporate Social Responsibility continued...

Sustainable Livelihood
We strive to improve the quality of life
for the most economically and socially
backward communities. Our programme
on sustainable livelihood covers scheduled
tribes in Khoripada, Malghar and Dapti
villages of Jawhar district. Till date, the
programme has benefitted about
2,350 people from tribal areas.
Jawhar Sustainable Livelihood
Programme
Our floriculture and horticulture
programmes have helped double the
+2,350
Tribals benefitted
income of 350 tribals, with successful
rainwater harvesting, farm ponds and
solar panels to pump and irrigate water.
To ensure the benefits of the Programme
Education
reach more people, we are scaling the
programme to include new clusters to We believe education is the tool that
Provided engineering
benefit 2,000+ tribals in the region. sharpens the mind and facilitates the
services to develop
ability to discern. This belief has led us to
school infrastructure
come up with a two initiatives to bring
solutions for a client in
education to children from economically
the mining community
backward homes:
• School on Wheels: A bus remodeled
Infrastructure
into a classroom visits three sites to
school migratory workers’ children. Creating infrastructure for underprivileged
The programme commenced with the communities enhances their quality of life.
enrollment of 75 students who were We are focused on contributing towards
trained every day. This serves as a bridge this goal by leveraging our core strengths.
school for the children, who have no During FY 19, we provided engineering
SCHOOL ON WHEELS SCHOOL ON WHEELS
access to education and also helps them services to develop school infrastructure
with remedial classes. The School on solutions, working with clients, NGOs and
OO
L Wheels also serves as a mobile library the Tata group.
H
SC
EP

The programme was scaled to include • We are working with the Tata Relief
T
DOOR S

more students by incorporating a fixed Committee in the disaster-struck area of

education centre near the site. Since its Uttarakhand by providing engineering
inception in 2016, a total of 665 students services for rehabilitation of schools,
have enrolled and 61 students have educational institutes and women’s
successfully joined mainstream schools. weaving centre
The total number of students who joined
• Swachh Bharat toilet construction
schools in FY 19 was 367.
in rural Gujarat
• Skill building for students in night
• Engineering solutions to hone the
schools: We organise job-oriented
70%
Placement of students
training for night school students.
Sixty students enrolled in IT-related
skills of special people and renovation
of schools for children from the
underprivileged community
courses, which increases their chances
achieved through the
of employability. The programme aims • Engineering services for rebuilding
skilling of night school
to ensure placement for at least 70% of a school to benefit children from the
students
these students mining community

50
Innovate and Scale

Health and Hygiene

Health and hygiene of a community is the indicator
of its development. In the tribal belt, lack of water
and absence of sustainable income have resulted in

+322
were screened for
malnutrition and hygiene issues. Our services include
awareness on health and hygiene, and support for
vegetable farming to address nutrition deficiency
health ailments among the people.
• Healthcare in model village: We provide healthcare
services such as health screening, diagnostics and
treatment in the tribal village. During the year
under review, ~322 people were screened for health
ailments in two health camps and 71 people were
checked in an eye camp. We also organised advanced
diagnostics and treatments.
• Swachh Bharat Mission: We wholeheartedly
support the national cleanliness drive, Swachh Bharat
Mission. Across locations, our volunteers engage
with communities to create awareness on waste
segregation, efficient waste management, beach and
Environmental Sustainability
lake cleaning, etc.
We make every effort to cut down the use of resources
such as water, paper and energy by using more efficient
Employee Volunteering
equipment. We are also trying to diminish our carbon
footprint by reducing travel and paper use and using Our corporate volunteering efforts cover varied initiatives
digital modes of communications, IT applications and across locations.
internet technologies. We manage our electronic wastes
• Health and hygiene
through recycling. As a consultant, we take on the moral
1. Blood donation
responsibility of providing sustainable solutions to
2. Cleanliness drive
customers who are conscious of their carbon foot print.
3. Tree plantation
4. Awareness sessions on health and hygiene
• Education
1. Youth employability programmes
2. Awareness session in schools
3. Remedial classes for underprivileged students
4. Educational activities for special kids
• Other activities
1. Kids’ activities in orphanages, municipal schools, etc.
2. Care of inmates in old-age homes

51
 20th Annual Report 2018-19

Corporate Information
OFFICES AND ADDRESES PROJECT OFFICE Kenya Branch – Liasion Office
D-8 Krishna Centre,
Registered office Gujarat
Woodvale Grove Road,
1 Floor, Project Office No. 106-109B,
st
Matulya Centre ‘A’, 1st Floor, 249, P. O. Box 13746 00800,
Atria Complex, KH-0 Sargasan Cross Road,
Senapati Bapat Marg, Lower Parel (West), Westlands Nairobi Kenya
Gandhinagar - 382 421
Mumbai - 400 013, India.
The Netherlands Branch Office
Chennai
Corporate Office C/o Vistra Amsterdam,
First Floor, TVK Buildings,
Atrium Building, 8th Floor,
Unit No. NB 1502 & SB 1501, Old No 38, New No 52,
Strawinskylaan 3127,
15th Floor, Empire Tower, Cloud City Eswarankoil Lane,
1077 ZX, Amsterdam
Campus, Opp. Reliable Tech Park, Alandur, Chennai - 600 016
Thane-Belapur Road,
Airoli, Navi Mumbai - 400 708
BANKERS
SUBSIDIARIES
HDFC Bank
Mumbai ICICI Bank Limited
BRANCH – DOMESTIC
Bank of Baroda
Ecofirst Services Limited
Bengaluru State Bank of India
Unit No. NB 1502 & SB 1501,
Sheriff Centre, 73/1, St. Marks Road, Yes Bank
15th Floor, Empire Tower, Cloud City Campus,
Bengaluru - 560 001 Citi Bank
Opp. Reliable Tech Park,
Janardhan Towers, 133/2 Residency Road, EXIM Bank
Thane-Belapur Road,
Bengaluru - 560 025
Airoli, Navi Mumbai - 400 708

Pune AUDITORS
Sai Trinity, Central Wing, TCE South Africa Subsidiary
B S R & Co. LLP, Chartered Accountants
S. No. 146/1/28, Pashan, TCE South Africa (Pty) Limited,
(Statutory Auditors)
Pune - 411 021 IQ Business Park Number 3,
Ernst & Young LLP (Internal Auditors)
3RD Avenue, Rivonia,
Robert Pavrey & Associates ,Company
Gauteng - 2128
Delhi (NCR Region) Secretaries (Secretarial Auditors)
Green Boulevard, Ground Floor,
Tower B & C, Plot no - 89A, Sector 62,
Noida - 201 301 OVERSEAS OFFICES
DIRECTORS
US-New Jersey Branch office
Mr. Ashok Sethi
Jamshedpur Suite 301, 100 Enterprise Drive, Rockaway,
Ms. Anjali Kulkarni
Pipeline Road, Sakchi, New Jersey - 07866, USA
Mr. Sriram Kadiyala
Jamshedpur - 831 001
Mr. Amit Sharma
Abu Dhabi Branch Office
Kolkata P. O. Box 62990, Abu Dhabi,
JC 30/A; Sector III, Salt Lake, United Arab Emirates (UAE)
Kolkata - 700 106
Nepal Branch – Liasion Office
Ward 10 Gangapdevi Marg, Budhnagar,
Kathmandu, Nepal

52
20TH ANNUAL REPORT 2018-19

TCE Corporate Communications

Corporate Office: Registered Office

Unit No NB 1502 & SB -1501, 15th floor, Empire Tower, Matulya Centre ‘A’, 1st Floor,
Cloud City Campus, Opposite Reliable Tech Park, 249 Senapati Bapat Marg
Thane Belapur Road Airoli, Navi Mumbai – 400 708 Lower Parel (West), Mumbai – 400 013, India
mail@tce.co.in | www.tce.co.in
CIN No.: U74210MH1999PLC123010