Bharat Heavy Electricals Ltd seeks high-end naval gun ally

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Bharat Heavy Electricals Ltd seeks high-end naval gun ally - dnaindia.com

New Delhi: State-run Bharat Heavy Electricals Ltd (Bhel) is expanding its portfolio in the defence sector. Bhel aims to supply higher version of super rapid gun mount (SRGM) naval guns to the ministry of defence.

Total revenue from this order could be in the range of Rs 4,000 crore to Rs 5,000 crore. The company is looking for a technology partner and expects to finalise one in the next 9-12 months.

“The defence ministry has given us the mandate to develop a higher version of SRGM guns. We need the technology for which we will tie up with some foreign player. A lot of players have approached us and we are doing the due diligence,” said B Prasada Rao, chairman and managing director, Bhel.

A senior executive of the company said technology available with European companies looks better than elsewhere in the world.
Therefore, Bhel may strike a deal with a European company, he said.

Bhel is currently using the technology of Oto Melara, an Italian company, to manufacture 76mm SRGM naval guns for the Indian Navy.

Currently, over 75% of the company’s revenue come from the power sector. However, gradually, the company is looking to expand its portfolio into other sectors as well.

Meantime, Bhel has reported a street-beating 37% rise in provisional net profit for the year ended March 31, 2010, at Rs 4,287 crore compared with Rs 3,138 crore for the corresponding period last year.

The company is aiming aturnover of $10 billion to $11 billion by 2011-12. Bhel will raise its manufacturing capacity to 20,000 mw by March 2012 from the existing capacity of 15,000 mw.
During 2009-10, the company secured orders worth Rs 59,031 crore. Total orders in hand for execution in 2010-11 and beyond stand at about Rs 43,800 crore currently.

On the nuclear plant manufacturing front, the company said it is close to finalising its foreign technology partner. Bhel has signed a pact with Nuclear Power Corporation for making turbo generators required for high capacity nuclear power plants.

 

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BHEL eyes defence foray to boost sales idrw.org
We are on track to become a $10 billion to $11 billion turnover company by 2011-12 in line with our strategic plan,” BHEL Chairman & Managing Director B Prasada Rao told reporters here announcing the company’s results for 2009-10. BHEL’s annual turnover ballooned to Rs 34,050 crore during 2009-10 compared to Rs 28,033 crore in 2008-09 posting a growth rate of 21 per cent.

On BHEL’s proposed foray into production of defence items Rao said “talks are on for supplying certain type of equipment for the armed forces.” BHEL is working on supplying heavy duty 127-mm guns for the Indian Navy. BHEL is already supplying 76-MM guns to Navy.

Besides, BHEL is looking at business opportunities by supplying high-tech offshore oil rigs for oil and gas explorer. On BHEL’s investment plan, he said “BHEL has developed the capacity to deliver 15,000 MW of power equipment per annum. We plan to enhance it to 20,000 MW by 2012. We may make an additional investment of Rs 1600 crore for this. We will raise the necessary resources internally.”

BHEL made a capital investment of Rs 1,767 crore during 2009-10 to augment its manufacturing capacity. It spent Rs 1,082 crore in 2008-09 for capacity expansion. BHEL secured orders worth Rs 59031 crore in 2009-10. At the end of 2009-10 BHEL’s total orders in hand for executiuon in 2010-11 and beyond stand at Rs 1,43,800 crore. BHEL posted a jump of 36.61 per cent in its net profit to Rs 4,287 crore during 2009-10. It made a net profit of Rs 3,138 crore during 2008-09.