Sembcorp Industries scours for growth overseas as local price pressures escalate

India is its next port of call.

Sembcorp Industries is placing its hopes on overseas projects for much-needed growth as local power price pressures intensify.

According to Maybank Kim Eng, India is Sembcorp Ind’s next growth platform as its two power assets in the power shortage-prone sub-continent are expected to grow by leaps and bounds.

India provides a welcome respite from the group’s troubles in Singapore, where acute power price pressures have caused spark spread to decline by 50% since 2013.

“SCI will continue to scour for opportunities abroad as the Singapore market saturates. In assessing projects, it has an IRR target of 10-20%. The higher end is required for higher-risk markets,” stated Maybank Kim Eng.