Wednesday, November 26, 2008

BHEL scouts for global partner to build transformers

Bharat Heavy Electricals Ltd (BHEL), India’s largest power equipment manufacturer, is looking for an international joint venture partner to manufacture high capacity transformers in India.

“The joint venture will be announced some time in January 2009 and will undertake manufacturing of 765 kilo volt (KV) and 1,200 KV transformers. This will give a boost to our market share in transformer manufacturing,” said BHEL Chairman and Managing Director K Ravi Kumar.

The company at present specialises in manufacturing transformers of up to 400 KV capacity. It is, however, planning to bag orders for higher capacity transformers in the future, especially from the huge transmission infrastructure which the government plans to put in place to meet the increased electricity demand in India, which is slated to touch about 1,000 billion units by 2012, up from 730 billion units at present.

“The investment to flow in the joint venture has not been worked out yet, but the joint venture partner will be both an equity as well as technology partner,” he added.

BHEL is among the largest manufacturers of transformers in India, and holds about 40 per cent of the domestic transformer market. Its current capacity for manufacturing transformers is about 30,000 MVA (milli volt ampere). “The joint venture will help us in increasing our transformer manufacturing capacity to 45,000 MVA by April 2009,” Ravi Kumar said.

BHEL will also set up a separate manufacturing facility in the country for the purpose, though the site for locating such a facility has not yet been identified by the company.

Other major manufacturers of transformers in India — which can supply transformers of up to 400 KV capacity — include companies like Crompton Greaves and the state-owned Transformers and Electricals Kerala Ltd.

India’s transmission system is at present dominated largely by electrical substations employing low-class transformers ranging from 120 KV to 400 KV capacity and higher range 800 KV and 1,200 KV class transformers are being planned.

India’s ambitious plans to ramp up its power generation capacity manifold in the near future to cope with the average 14 per cent annual increase in the demand for power will require commissioning of heavy class transformers.


ref: http://www.business-standard.com/india/news/bhel-scouts-for-global-partner-to-build-transformers/14/11/341252/

Monday, November 24, 2008

BHEL bags Rs 240 cr order for Mundra UMPP

Against stiff competition from European and other domestic power equipment companies, Bharat Heavy Electricals (BHEL) won a landmark contract pegged at Rs 240 crores from Coastal Gujarat Power (CGPL), a Tata Power company.

The order for 40 transformers, with a cumulative capacity of 5872 MVA, three phase transformer banks, busducts, for 800 Mw thermal sets will be supplied in two stages for CGPL upcoming 4,000 Mw (5x800 Mw) ultra mega power project at Mundra in Gujarat.

BHEL is the largest manufacturer of transformers in India. Till date, the company has supplied more than 4,000 transformers, aggregating to over 3,00,000 MVA in cumulative capacity, for transmission and distribution of power on the nation's grid. These have been supplied to all major utilities in the country including SEBs, NTPC, PowerGrid, etc.

On the export front, the company has supplied transformers to more than 20 countries around the world including Greece, Egypt, Libya, Oman, Malaysia, Saudi Arabia and Zambia.

As a result of increased customer focus and renewed efforts for sustained presence in varied industrial segments, BHEL's industry sector business segment recorded an all time high order inflow of Rs 7,860 crore in the last fiscal (2007-08), an increase of 20% over the previous year.


ref:
http://www.business-standard.com/india/news/bhel-bags-rs-240-cr-order-for-mundra-umpp/15/56/50012/on

Friday, November 21, 2008

BHEL wins Rs1,325 crore order from APGENCO

Bharat Heavy Electricals Ltd has said that it has won an order worth Rs1,325 crore for supplying and installing main plant package at a power project in Andhra Pradesh.
The order has been placed by Andhra Pradesh Power Generation Corporation (APGENCO) for setting up a 600 MW thermal power generating unit in Warangal district of the state, the company said in a statement.
“BHEL has received a Rs1,325-crore order for the supply and installation of main plant package at a power project in Andhra Pradesh from APGENCO,” the statement said.
BHEL’s scope of work includes design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators, boilers, associated auxiliaries and electricals, and controls and instrumentation (C&I).
The unit is slated for synchronisation in a schedule of 42 months.
The boilers and its auxiliaries will be manufactured at the company’s units at Tiruchirapalli and Ranipet, while steam turbines and generators will be manufactured at the Haridwar plant of BHEL.
The company has enhanced its manufacturing capacity to 10,000 MW and plans to take it further to 15,000 MW by the end of the current 11th Five Year Plan (2007-2012).
BHEL plans to invest Rs4,200 crore in the next two years for the expansion

Source:
http://www.livemint.com/2008/11/18133636/BHEL-wins-Rs1325-crore-order.html

BHEL in talks with Sheffield, Kobe for nuclear forgings facility

BHEL is planning to set up a Greenfield manufacturing base in India for nuclear forgings and is in talks with UK based Sheffield Forgemasters International Ltd and Japan’s Kobe Steel for a possible joint venture. Bharat Forge, the world’s second largest forging company could also be involved in the new venture.

Mr K Ravi Kumar CMD of BHEL’s said that “We are looking at a nuclear forgings facility in India in light of the new orders on the anvil. Talks are on with Sheffield and Kobe Steel. Bharat Forge could also be part of the venture and we are talking to them.”

Mr Kumar said that “There is a big shortage of facilities manufacturing critical equipment including forgings and castings, for nuclear power stations. The move to set up our own dedicated facility is aimed at addressing this problem.”

BHEL had earlier signed a joint venture with Ranchi based Heavy Engineering Corporation for making forgings for nuclear power equipment.

Currently, nations setting up nuclear capacities are faced with a big crunch in sourcing critical components for nuclear stations, particularly the large forgings used for reactor vessels and steam systems.

UK’s Sheffield Forgemasters is among the world’s largest independently owned forgemaster and specializes in a broad range of heavy steel forgings and steel castings including nuclear grade steel components. Kobe Steel, Japan’s fourth largest steelmaker is also a big player in nuclear steel castings and forgings.

ref:
http://steelguru.com/news/index/2008/11/21/NzIxMzI%3D/BHEL_in_talks_with_Sheffield%25252C_Kobe_for_nuclear_forgings_facility.html

Sunday, November 16, 2008

BHEL, Areva T&D to form JV for manufacturing nuclear reactors

Bharat Heavy Electricals Ltd is in talks with electrical equipment maker Areva T&D India, the Indian arm of French Areva
Power, to form a joint venture company for manufacturing nuclear reactors.

"BHEL and Areva T&D are in talks to form a joint venture for manufacturing nuclear reactors," Minister of State for Power Jairam Ramesh told PTI, adding that the facility would be set up in Finland.

BHEL would have 26 per cent stake in the JV company, sources said. The JV would manufacture European Pressurised Reactors (EPR) of 1,600 MW capacity each.

Areva T&D India is a part of French electrical equipment maker Areva Power.

Areva T&D has bagged a 35 million euro (approx. Rs 221 crore) order from state-run Steel Authority of India Ltd to provide transmission and distribution services to its unit.

The order includes providing Bhillai Steel Plant, a flagship unit of SAIL, with a 132 KV gas insulated sub-station, besides offering protection, control and monitoring system for the existing ones. The project is scheduled to complete by October 2010.


source:
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/BHEL_Areva_TD_to_form_JV_for_manufacturing_nuclear_reactors/articleshow/3719168.cms

Sunday, November 9, 2008

Bhel may buy stake in overseas power plants; set up new facilities

Bharat Heavy Electricals Ltd (Bhel) said it will pick up 10% equity in power projects abroad that would buy its equipment.
“As and when we find the opportunity, we will take equity stakes to sell equipment...while we plan to take 10% equity in overseas projects to land orders, this will be around 26% for domestic projects,” said chairman and managing director K. Ravi Kumar.Equipment maker aims to leverage govt’s disbursement under line of credit of about $1 billion a yearThe country’s largest power generation equipment manufacturer also looks to acquire companies and start joint ventures to access new markets, a senior company official said, asking not to be named.
Besides setting up manufacturing or servicing facilities in Europe, Oman, Egypt, Saudi Arabia and Indonesia, the company also aims to establish a joint venture in West Asia with a local partner to make valves and other equipment to cater to the growing oil and gas exploration and production market in the region, the official added.
Bhel may also start a joint venture in Saudi Arabia to service and repair transformers. “We are scouting for partners for these ventures,” the official said.
Bhel has cash reserves of Rs8,000 crore. It posted a net profit of Rs2,859 crore on revenues of Rs21,401 crore in the fiscal year to March and aims to become a $10 billion (Rs47,800 crore)-plus company by 2012.
As part of its global push, the company aims to leverage the Indian government’s disbursement under the line of credit, which is around $1 billion a year, to get orders.
Bhel currently has orders worth Rs1.10 trillion. Its international projects contributed Rs3,200 crore till date to Rs24,000 crore worth of orders generated in the fiscal year that began in April.
The company plans to triple export orders to Rs10,300 crore by 2012, in a bid to hedge against currency fluctuations related to raw material imports, as reported by Mint on 4 November.

more at:
http://www.livemint.com/2008/11/07224824/Bhel-may-buy-stake-in-overseas.html

Thursday, November 6, 2008

4 N-equipment makers in race to partner in Bhel JV

Four leading nuclear equipment manufacturers are in race to become the technology partner for the joint venture between public sector power equipment major Bharat Heavy Electricals (Bhel) and Nuclear Power Corporation of India (NPCIL) — the country's nuclear power manager — to manufacture turbines for nuclear power plants in India.


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"Siemens of Germany, Turbo Item of Ukraine, Paris-based Alstom and General Electric of the US have shown keen interest to partner with us for steam turbine manufacturing and we are negotiating with them," said a senior Bhel official on the sidelines of Power India 2008 exhibition in Mumbai today.

Bhel had invited an Expression of Interest (EoI) this month in search of a 'technology partner' for making 700 MW, 1,000 MW and 1,600 MW turbines.

The joint venture, NTPC-Bhel Power Project (NBPPL), was formed in May this year for carrying out engineering, procurement and construction (EPC) of power plants and other infrastructure projects in India and abroad as well as to take up manufacturing of nuclear equipment.

NBPPL plans to have a manufacturing capacity of 5,000 MW annually by 2014-15, with an investment of around Rs 6,000 crore.

Initially, NBPPL shall focus on EPC projects and balance of plant (BoP) of power plants, which would require a capital of Rs 1,200 crore. Leading private financial institution IL&FS will buy 50 per cent stake in the JV to fund the projects and as a strategic financial partner, said sources.

Bhel, which is adding its capacity, already has a tie-up with Siemens for manufacturing 600 MW heat turbines and boilers. Bhel is also a contractor for many of NPCIL's 17 nuclear power plants that have come up in India.

Leading global nuclear equipment manufacturers such as General Electric, Toshiba Corporation’s Westinghouse, Rosatom of Russia and Areva of France are also in talks to form joint ventures with Indian companies to manufacture new generation light water reactors (LWR) and related equipment in India.

NPCIL, the country’s sole nuclear power manager, is discussing with these companies to act as a facilitator for equipment manufacturing deals, NPCIL CMD S K Jain said in a recent interview.


Source:
http://www.business-standard.com/india/storypage.php?autono=339450

Monday, November 3, 2008

Bhel looks to overseas projects as equipment market turns hot

Bharat Heavy Electricals Ltd (Bhel) is planning to triple export orders to Rs10,300 crore by 2012, in a bid to hedge against currency fluctuations related to raw material imports.
“We are looking at project exports as it would help us hedge against raw material imports. We do not want to be a net importer,” chairman and managing director K. Ravi Kumar said in a phone interview.
Overseas push: The Western Mountain Gas Turbine Power Project in Libya set up by Bhel on a turnkey basis. Bhel is pursuing orders in Uganda, Sierra Lone, Indonesia, Oman and New Caledonia, among others.The company imports raw materials worth Rs4,000 crore in a year. The rupee has shed a fifth of its value since January, making imports more expensive.
However, the power generation equipment maker’s focus on exports also stems from a concern that its market share in India may come down to 50% from the current 60% in the next five years because of increasing competition from local and overseas companies.
“Bhel’s monopoly is no longer there. Private-sector power generation equipment manufacturers have made huge strides at Bhel’s expense,” said Madanagopal Ramu, an equity research analyst at Mumbai-based Centrum Broking Pvt. Ltd. “It needs to focus on exports.”
Bhel currently has orders worth Rs1.10 trillion. Its international projects contributed Rs3,200 crore till date to Rs24,000 crore worth of orders generated in the fiscal year that began in April.
While organic growth is expected to contribute Rs6,200 crore to its order book by 2012, the remaining Rs4,100 crore will come from acquisitions and joint ventures. This is expected to go up to Rs8,000 crore each (through organic and inorganic growth) by 2017.
“We plan to achieve this by increasing our focus on geographies such as Africa, Commonwealth of Independent States countries, West Asia, South-East Asia and Far East,” said a company executive on condition of anonymity.
Bhel is actively pursuing orders in Uganda, Sierra Lone, Indonesia, Oman, New Caledonia, Bhutan and Sri Lanka, among others. “These areas offer a huge growth opportunity. Compared with India’s installed power generation capacity of 145,000 MW, the entire installed capacity in Africa is 64,000 MW, the executive said. “This is a huge demand.”
The company has cash reserves of Rs8,000 crore. It posted a net profit of Rs2,859 crore on revenues of Rs21,401 crore in the fiscal year to March and aims to become a $10 billion (Rs49,000crore)-plus company by 2011-12.
Bhel, which has manufacturing capacity of 10,000MW a year, plans to produce equipment capable of generating 56,000MW a year by 2012.
“We are expecting a 35% growth this year. However, we will not be able to maintain such high levels of growth due to increasing number of entrants in the market,” Ravi Kumar had earlier told Mint.
Source:
http://www.livemint.com/2008/11/04005944/Bhel-looks-to-overseas-project.html

Sunday, November 2, 2008

No slowdown in orders seen: BHEL

BHEL has announced its second quarter numbers. Its Q2 net profit declined at Rs 615.77 crore versus Rs 687.66 crore, (YoY).

Its standalone net sales went up at Rs 5,342.63 crore from Rs 3,965.36 crore (YoY).

K Ravi Kumar, CMD of BHEL, said the company profits were down due to the one-time income during Q2 last year. Kumar said the company had booked about Rs 27,000 crore worth of orders, and the total outstanding order book stood at Rs 1.05 lakh currently, 85% of which came from the state and government.

Kumar also added that he doesn’t see any slowdown in or cancellation of orders. Operating margins will be recouped over next two quarters, he said.

read complete interview at :
http://news.moneycontrol.com/india/news/results-boardroom/no-slowdown-orders-seenbhel/19/55/363932