New Delhi: The country’s largest power equipment-maker, Bharat Heavy Electricals Limited (BHEL), on Tuesday, said it will ramp up its manufacturing capacity to 20,000 mw by March 2012.
BHEL’s capacity addition strategy for the current financial year also envisages an improvement in product cost-competitiveness and quality, said BHEL chairman and managing director B. Prasada Rao at the 47th annual general meeting of the company in New Delhi on Friday.
He said BHEL is well on track to becoming a 20,000 mw company by March 2012. The company also plans to diversify into the emerging business areas like research and development (R&D) and people management, he said.
BHEL recorded a profit of Rs 9,006 crore for the 2010-11 financial year and an all-time high turnover of Rs 43,337 crore, he added. The company declared a dividend of Rs 1,525 crore. BHEL secured orders worth a record Rs 60,507 crore in fiscal year 2010-11.
The company secured orders for seven boilers and nine turbine generators with supercritical parameters from public as well as private sector utilities during the fiscal.
With an order book worth over Rs 1,64,145 crore at the close of the financial year, the company expects to achieve robust growth in 2011-12 and beyond, Rao added.
Outlining the trends in the power sector, Rao said that environmental compulsions are driving the demand for sustainable development worldwide.
BHEL also plans to develop economically viable solar power equipment and it would be the company’s focus area this fiscal.
BHEL is also developing Advanced Ultra Supercritical (Adv-USC) technology in association with the Indira Gandhi Centre for Atomic Research (IGCAR) and NTPC, as part of the National Mission for Development of Clean Coal (Carbon) Technologies.
The company reported export orders worth Rs 3,738 crore from 24 countries spread over five continents in fiscal year 2010-11. BHEL also secured maiden orders for supply of solar cells to Hong Kong and Turkey, he said.
In 2010-11, BHEL commissioned 9,442 MW of power equipment. This included 52 sets of equipment with a combined capacity of 7,667 MW, commissioned within the country and abroad.
BHEL has established an R&D gateway at the IIT Madras Research Park, Chennai, for promoting research in ultra-supercritical power cycles and high temperature materials, he said.
As part of its R&D initiatives, BHEL will further streamline its strategy to maintain the growth trajectory in future, Rao said.
The company invested Rs 982 crore on R&D programmes during the year - 18.5% higher than the previous year. Products and systems developed in-house contributed 18% to the total turnover of the company.
BHEL is establishing a Centre for Nano Technology (CNT) at its Corporate R&D division at Hyderabad. The facility will explore the application of nano materials in products and systems relevant to BHEL. Material development for applications like power plant components, nano structured wear-resistant coatings, electrical insulating materials, solar cells, carbon nano tube applications, nano fluidics, fuel cells and sensors will be studied at this facility.
The centre is being established to carry out R&D and make the company ‘future-ready’ in the areas of ultra supercritical power and renewable energy, he added.
BHEL has also taken a 51% stake in the Kasargod unit of KEL Kerala for rapid capacity enhancement for rotating electrical machines. The company will continue to build capacities both organically as well as inorganically, he added.
For cost reduction, BHEL is focusing on key initiatives like global sourcing and quicker indigenization.
The company intends to continue its diversification strategy to enhance shareholder value and is expanding its offerings in new growth areas like solar and nuclear energy, transportation, transmission and distribution, and water.
Toward enhancing and strengthening its human resource base, 17,189 employees have been inducted in the company in the last five years, he said.