New Delhi: State-run power equipment major Bhel on 17 September said it is looking at mergers and acquisition to fuel inorganic growth and targets a turnover of Rs45,000 crore by 2012.
The company has drawn what it calls ‘Strategic Plan 2012’ to ensure sustainable profitable growth over the next five years with the objective of reaching a turnover level of Rs45,000 crore, Bhel chairman and managing director A.K. Puri said at the shareholders meeting here.
He said mergers and acquisitions (M&A) route will be pursued to avail inorganic growth opportunities to enlarge the company’s operations both in domestic as well as export markets.
Outlining the company’s future course, he said the growth planks for the next five years will be driven by capacity and capability enhancement that will leverage Bhel’s efforts in its core area of power supported by industry, transmission, exports and spares and services businesses.
Riding on the robust demand, Bhel’s turnover hit an all- time high of Rs18,739 crore, registering a growth of 29%, while net profit increased by 44% to touch Rs2,415 crore in 2006-07.
He also declared a final dividend of 60% on the enhanced paid-up share capital consequent to 1:1 bonus issue.
The company paid the highest ever dividend of nearly Rs600 crore for 2006-07, which is 245% of the paid-up capital pre-bonus, he said.
Talking about business growth in the current fiscal, Puri said with an order book position of Rs55,000 crore, Bhel expects to achieve robust growth in 2007-08 and beyond.
The company is well on its way to increasing its size of operations supported by phased manufacturing capacity expansion where a capacity of 10,000 MW per annum will be completed by December 2007 and 15,000 MW per annum by December 2009, he said.
Outlining the trends in the global and domestic economies, he said the global macroeconomic environment appears healthy with a growth rate of around 5% in the last 3 years and may moderate somewhat during 2008.
Growth is expected to remain very strong among emerging markets and developing countries, he said, adding that these trends have been driving the global demand for capital goods.
On the export market, he said the company continued to expand its international footprint by entering new markets and building existing ones. The company booked export orders worth Rs1,903 crore in 2006-07 against an average yearly order book of Rs1,275 crore of the last five years.
Bhel commissioned 7,863 MW of power plant equipment comprising 4,791 MW Utility and Industrial sets in the country and 1,332 MW in overseas markets in 2006-07.
Besides, 1,740 MW was added to the national grid by erecting and commissioning non-Bhel sets, including part supplies.