BHEL targets increase in overseas business

New Delhi, Apr 30: Public sector Bharat Heavy Electricals Limited (BHEL) has identified overseas business as one of its future thrust areas, as part of its 'Strategic Plan 2012' that will enable its turnover to grow from four billion to ten billion dollar by 2011-12.

Riding high on its dominant domestic position, the company is looking at exports as one of the key growth-drivers and is targeting a seven-fold increase in physical exports from the current levels.

Giving a cutting edge to its globalization efforts, BHEL will position itself as a regular EPC Contractor in international markets besides pursuing the Mergers and Acquisitions (M&A) route to avail inorganic growth opportunities to enlarge the company's operations and reach export markets.

With an outstanding physical export order book of over one billion dollar, the company has gained high growth momentum in international business in 2006-07 and is poised to further stimulate growth in its export business by consolidating its position in existing markets and widening its export base through expansion of its existing basket of products and services and by entering new markets.

The company secured export orders of Rs 1,903 crore during the year in comparison to an average yearly order book of Rs 1,275 crore in the last five years. The year witnessed significant steps towards globalization with receipt of orders for power equipment for over 900 Mega Watts (MW) of power projects and 5,600 MVA of transformer capacity, the highest ever in the transmission sector overseas, spread across ten countries, besides successful forays in a host of new market segments.

This has been achieved while operating in a highly competitive international market dominated by well-entrenched multinational corporations.

Significant orders received from overseas markets include second export order for a 240 MW ADB-funded Gas Turbine based power plant at Siddhirganj from Electricity Generation Company of Bangladesh on EPC basis and 500 MW gas turbine-based Power Plant on EPC basis from MGI, Jordan. Besides orders have been received from companies in Oman, Tajikistan, France, and Egypt.

UNI