BHEL bets on Chinese inputs to beat cost squeeze

Bharat Heavy Electricals Ltd (BHEL) is looking to actively increase its vendor base in China in order to competitively source specialised inputs needed for its Indian units, a top company official told Business Line during a recent interaction.

Amid a sharp increase in the commodity cycle, this is one of the key strategies the engineering major hopes to deploy extensively to check rising material costs, BHEL's Chairman and Managing Director, Mr B.P. Rao, said.

“There are some clear advantages in sourcing products from China, provided the quality aspects are strictly adhered to. We are looking to increase our source base there, especially for materials such as castings and forgings, as well as specialised products such as P91 and P92 steels,” Mr Rao said.

‘P91' and ‘P92' steels find use in pipelines and power unit components that are part of conventional boilers on account of their high strength at elevated temperatures.

BHEL has deputed marketing and sourcing personnel at its newly established China office who would facilitate the procurement of raw materials. The options in the long term include enabling the company to order power generating parts when they see potential for procuring for another project.


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