BHEL Trichy asks subcontractors to up capacity

The Tiruchirappalli unit of Bharat Heavy Electricals Limited has asked its subcontractors to increase their capacity to 50 per cent from the current 32 per cent in order to to achieve a turnover of Rs 10,000 crore for the current financial year.

V Ananthakrishnan, executive director, BHEL – Tiruchy, said they had asked the subcontractors to increase their capacities to manufacture headers and panels since the requirement for these products would increase in the coming years. He wanted the firms to follow the just in time concept to avoid inventory buildup.

The number of subcontracting firms increased from 346 to 429 in the last one year.

BHEL Small and Medium Industries Association secretary M Variavel said while BHEL Tiruchi was planning to invest around Rs 1,200 crore by 2011-12, the vendors in and around Tiruchy would invest Rs 200-300 crore during the same period.

In the last two years, vendors invested around Rs 100 crore to import machines that automate welding of boiler support structures and to increase the capacity.

ref:
http://www.business-standard.com/india/news/bhel-trichy-asks-subcontractors-tocapacity/358484/