BHEL's Tiruhcy complex to diversify into defence

The Tiruchirappalli (Tiruchy) Complex of Bharat Heavy Electricals Limited (BHEL) to diversify into new areas as part of its derisk strategy. The Rs 15,000 crore complex, currently manufacture boilers for the power sector, is now planning to enter defence, oil, gas and others. The complex has decided to ear mark 20-25% of its capacity for the new business.

 

AV Krishnan, executive director, BHEL Trichy said that the process (diversifying into new areas) has started, as a first step the complex got few trial orders from Defence Research and Development Organisation (DRDO) in Avadi, near Chennai to supply 50 numbers of thermal pressure components for the battle tanks produced by DRDO for Defence.

 

He noted, DRDO's requirement is around 250-300 every year and the value is estimated to be around Rs 100 crore. The complex would take fabrication equipment for the Defence, he said.

 

Besides the Complex is also looking at oil, gas and refineries to supply different components to increase revenue from non-crore areas and to fully utilise the capabilities developed over the years.

 

While this may not reflect in this fiscal, by 2014-15, 20-25% of the capacity in Tiruchy complex will be used for diversified products, said Krishann.

 

The diversification comes at a time, when the power sector is going through lull situation, says Krishnan.

 

In 2012-13, the complex spent around Rs 415 crore on R&D and generated around Rs 3,200 crore revenue from commercialisation of new technology and improvements. A record 103 patents and copyright applications have been filed by the Complex last year, said Krishnan.

 

Despite the slow down, the complex, which contributes nearly 30% to the overall business of BHEL, has crossed the Rs 15,000 crore mark in sales (Rs 15,003 crore). The complex is expect to maintain the same number during the current financial year.

 

Order book of the complex rose by 34% to Rs 7,585 crore during the financial year ended March 31, 2013, taking the total order book size to Rs 24,902 crore.

 

“Despite difficult times and increasing competition from private sector companies, we could achieve this and it was due to its sheer process management, cost control measures and operational efficiencies”.

 

Joins hands with NTPC and IGCA

 

The BHEL-Trichy complex, as part of the Government of India’s National Technology Mission, has submitted a document for 800 MW coal-fired plant with advanced ultra supercritical parametres to the steering committee of the Government.

 

Krishnan said, this will take us to the new heights if once approved by the committee. We hope to get approval in due course of time for our boiler design. The Complex is working with NTPC and Indira Gandhi Centre for Atomic Research (IGCAR) for the same.