Bharat Heavy Electricals Ltd (Bhel), which is aggressively pursuing its capacity expansion programme in boiler manufacturing to meet the XIth Five-Year Plan target, wants to boost its non-core business as well.
The company has lined up an investment of Rs 900 crore for its non-core operations.
Under its non-core operations, Bhel's offerings scale across transmission products, electricals for urban transportation system, non-conventional products and equipments & assemblies for onshore rigs.
Ravi Kumar, chairman and managing director, Bhel, said: "We have earmarked an investment of Rs 500 crore over the next 2-3 years in our non-core business." Besides, the company will also invest Rs 400 crore in two years in augmenting its transformer manufacturing capacity.
He said the major part of the investment will go into transportation system products and transformers.
"Under transformers, we are looking at augmenting our capacity from approximately 20,000 MVA to 35,000 MVA by 2009-end." Currently, Bhel has two transformer manufacturing plants in the country located in Jhansi and Bhopal.
He said though the company is not setting up any new manufacturing centres for transformers, the capacity of both the plants will be augmented.
"Though our main focus will be on boiler, turbine and generator manufacturing and on boosting the capacity to 20,000 MW by 2012, we want to sustain a steady focus on other businesses as well," said Kumar.
He said the non-core business currently contributes up to 20% to the overall revenues of the company and by the end of 2011-12, it is expected to touch 25%.
The revenues of the company for the financial year ending March 2007 stood at Rs 17,614 crore while for year ending March 2008, it is expected to be above Rs 21,500 crore.
Kumar said the company is also looking at inorganic growth options at home and abroad.
"As far as foreign shores are concerned, we have not been successful so far but in the domestic market things are quite in line," he said.
Kumar said Bhel may be very close to acquiring a domestic company that will perfectly synergise with its core business. "Domestically, there are some proposals and we are looking at a size of acquisition to the tune of Rs 1,000 crore," he said. He refused to divulge further on the subject.
The company is in the process of signing a joint venture agreement with state utilities on the lines of what it has in Tamil Nadu. "We are expecting to ink an agreement with Gujarat and Orissa in the current financial year," Kumar said. Under the joint venture, Bhel will have a 26% stake in all upcoming power projects in the state.
The company has lined up an investment of Rs 900 crore for its non-core operations.
Under its non-core operations, Bhel's offerings scale across transmission products, electricals for urban transportation system, non-conventional products and equipments & assemblies for onshore rigs.
Ravi Kumar, chairman and managing director, Bhel, said: "We have earmarked an investment of Rs 500 crore over the next 2-3 years in our non-core business." Besides, the company will also invest Rs 400 crore in two years in augmenting its transformer manufacturing capacity.
He said the major part of the investment will go into transportation system products and transformers.
"Under transformers, we are looking at augmenting our capacity from approximately 20,000 MVA to 35,000 MVA by 2009-end." Currently, Bhel has two transformer manufacturing plants in the country located in Jhansi and Bhopal.
He said though the company is not setting up any new manufacturing centres for transformers, the capacity of both the plants will be augmented.
"Though our main focus will be on boiler, turbine and generator manufacturing and on boosting the capacity to 20,000 MW by 2012, we want to sustain a steady focus on other businesses as well," said Kumar.
He said the non-core business currently contributes up to 20% to the overall revenues of the company and by the end of 2011-12, it is expected to touch 25%.
The revenues of the company for the financial year ending March 2007 stood at Rs 17,614 crore while for year ending March 2008, it is expected to be above Rs 21,500 crore.
Kumar said the company is also looking at inorganic growth options at home and abroad.
"As far as foreign shores are concerned, we have not been successful so far but in the domestic market things are quite in line," he said.
Kumar said Bhel may be very close to acquiring a domestic company that will perfectly synergise with its core business. "Domestically, there are some proposals and we are looking at a size of acquisition to the tune of Rs 1,000 crore," he said. He refused to divulge further on the subject.
The company is in the process of signing a joint venture agreement with state utilities on the lines of what it has in Tamil Nadu. "We are expecting to ink an agreement with Gujarat and Orissa in the current financial year," Kumar said. Under the joint venture, Bhel will have a 26% stake in all upcoming power projects in the state.
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