BHEL identifies overseas business as major growth plank; Targets Seven-fold increase in overseas business by 2012

Riding high on its dominant domestic position, Bharat Heavy Electricals Limited (BHEL) is making long strides to become a major global player by enhancing its presence in international markets. It 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 US$4 Billion to US$10 Billion by 2011-12. 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 in export markets.

With an outstanding physical export order book of over US$1 Billion, the company has gained high growth momentum in international business in fiscal 2006-07 which is poised to further stimulate growth in its export business by consolidation 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 physical export orders of Rs.19,030 Million during the year in comparison to an average yearly order book of Rs.12,750 Million of the last five years. The year witnessed significant steps towards globalization with receipt of orders for power equipment for over 900 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 performance 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; 500 MW Gas Turbine based Power Plant on EPC basis from MGI, Jordan - a major breakthrough in the IPP segment; first order for Gas Turbines for co-generation application – 2x26 MW for Oman Refinery Company, Oman; first-ever order from Tajikistan for R&M and upgrading of Varzob Hydro Project of Barji Tajik, Tajikistan; first-ever order for Compressors from France, secured from Grande Paroisse (a Total Group company) and the largest as well as the first export order for 23x125 MVA Transformers from Egypt.

In the area of overseas project execution, a significant landmark was achieved with the completion of the 600 MW Western Mountain Power Project in Libya, equipped with four Gas Turbine generating units of 156 MW each. The Western Mountain Project, incidentally, is the highest capacity Gas-based power station executed by BHEL. Significantly, the Turbines exceeded the guaranteed parameters during the performance tests. Similarly, with the commissioning of all the six, 170 MW units, Tala HEP in Bhutan has become the highest capacity Hydro Power Station erected and commissioned by BHEL outside the country.

BHEL is the largest Power Project exporter from India. Over the years, BHEL has established its footprints in all the six inhabited continents of the world - spanning over 68 countries and its technical competence has earned worldwide acclaim. Recognizing its outstanding export performance, BHEL has been awarded the coveted Engineering Export Promotion Council (EEPC) Award for the 16th year in succession.