State-run Engineers India Ltd (EIL) expects increased order inflows from West Asian countries, including Saudi Arabia and the UAE, as they step up infrastructure development to reduce dependence on the Strait of Hormuz, according to Chairman and Managing Director Atul Gupta. As reported by Business Standard, Gupta stated that there has been a slowdown in order inflows from the region as they were busy with restoration activities, but expects acceleration in Q3 and Q4 with construction of infrastructure that bypasses the Strait of Hormuz. The strategic importance of alternative shipping routes has become increasingly evident as the Bab al-Mandeb Strait has emerged as an alternative to the Strait of Hormuz, linking the Red Sea with the Gulf of Aden. This strategic route has gained particular importance as the United States' war against Iran has choked the Strait of Hormuz, making the Bab al-Mandeb a critical alternative for shipping operations. Recent developments show the Bab al-Mandeb Strait has become a vital alternative shipping route, with Around 3,000 Yemenis fleeing to Djibouti in recent weeks, highlighting the route's growing importance for regional transportation.
The anticipated projects would likely involve the construction of pipelines, terminals, ports and strategic storage reserves, as reported by Business Standard. Gupta made these comments at a press conference after the annual general meeting, indicating the company's readiness to participate in these strategic infrastructure developments. The timing aligns with the region's strategic shift toward alternative transportation routes for oil and gas operations, with the Bab al-Mandeb Strait now serving as a critical alternative to the Strait of Hormuz for shipping operations. This infrastructure development comes as nations seek to bypass the Strait of Hormuz due to geopolitical tensions and the need for alternative maritime routes.
EIL secured fresh business worth ₹7,978 crore in 2025-26, taking its order book to a record high of ₹15,109 crore as of March 31, 2026, according to Business Standard. The firm's order book reached ₹17,000 crore by Q1FY27, with 57 per cent being domestic orders. This strong performance demonstrates the company's robust business pipeline and diversified project portfolio across both domestic and international markets, positioning it well for the anticipated infrastructure projects in the Gulf region.
EIL continued to make progress on projects and engagements across Mongolia, Guyana, the UAE, Bahrain, Algeria, Kuwait and other international markets, as reported by Business Standard. This expansion strategy reinforces the company's commitment to strengthening its global footprint and diversifying its revenue streams across multiple international markets. The company has already shown interest in the projects aimed at bypassing the Strait of Hormuz, positioning itself for potential future opportunities in the region as alternative shipping routes gain strategic importance amid ongoing geopolitical tensions.
