Deep Industries to diversify into services to offshore rigs, biogas industry

Deep Industries, a leading provider of services to the oil and gas industry, is looking to diversify into providing services to offshore rigs and the biogas industries over the next two years. The company recently also diversified into making CNG compressors which are used at fuelling stations.
“Offshore has always been on our mind and we want to get into this space,” Paras Savla, Chairman & Managing Director, Deep Industries told ET.

The company wants to begin with offering diving services for the maintenance of offshore oil rigs over the next two years and then subsequently add other maintenance-related services. It is also eyeing the biogas industry where it wants to offer similar services of compression and dehydration to producers.

“Biogas is getting very popular in India and the government is also giving it a push,” Savla said. “Once this sector gets into a growth phase we would be providing very similar services there.”

However, no definitive investment plan has been drawn for the diversification and the company will draw on its cash reserves.

The company recently ventured into the manufacturing space through its subsidiary Raas Equipment which manufactures booster compressors which are used at retail CNG fuelling stations. The company’s orderbook has been filled till March next year, Savla said.

Deep Industries provides services like drilling and workover rigs as well as compression and dehydration of natural gas and counts the likes of ONGC, Oil India and Vedanta amongst its customers. The company owns eight workover rigs and three drilling rigs.

The stock of Deep Industries has gained over 300% in the past six months. Prices declined by 0.78% on the BSE on Monday to close at Rs 152.05 against a 0.75% gain in the benchmark Sensex.