Tuesday, September 23, 2008

BHEL Plans Joint Venture Company For Forgings And Castings - Sep 23, 2008

Bharat Heavy Electricals Ltd (Bhel), India’s biggest power equipment maker, plans a joint venture company worth of a Rs1,500 crore for forgings and castings to gain technology, according to chairman and managing director K. Ravi Kumar.

He also added that the state-controlled equipment maker has received interest from as many as 15 companies, which includes both local and overseas. But the proportion of the equity stake to be offered hasn’t been decided. He also said that There is a short supply of forgings and castings and we don’t have the technology for higher tonnage. “Supply chain management is the main reason for this. We want to source our material from this joint venture.”

Along with this, the company is forming joint ventures with NTPC and Nuclear Power Corp to increase its capability to meet the rising demand for the power generation equipment and gain know-how.

With a view to diversify its business footprints in the international business arena, Bhel is also in talks with infrastructure Leasing and Financial Services for financing its overseas operations. The company is eyeing to make its entry in West Asia, Europe and Africa

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