BHEL working on diversification to beat power sector woes

Faced with persisting challenges in the power sector, state-run BHEL is working in a "big way" to diversify its business, especially in the areas of defence and nuclear power, according to an official. Bharat Heavy Electricals Ltd (BHEL) is a dominant player in the power sector. However, a slew of sectoral woes including acute fuel shortages and financial constraints are posing challenges for the public sector major. A government official in the know said that BHEL is now trying to "diversify in a big way" and is working on various new strategies. The company is focusing more on sectors such as defence, nuclear power, transportation and railways. Against the backdrop of issues in the power sector, the Heavy Industry Ministry expects BHEL to move in new directions as well as utilise new opportunities in transportation and defence sectors, the official said. Besides developing its capabilities in the nuclear power sector, BHEL is strengthening its position in supply of locomotives to the railways. Recently, BHEL along with Nuclear Power Corporation received an order for four 700 MW turbine generator sets. The state-run entity is also working on water desalination systems apart from renewable energy areas such as photovoltaic systems. During the 2011-12 fiscal, BHEL raked in a net profit of Rs 7,039 crore on a turnover of Rs 49,244 crore. During the same period, the entity's net worth stood at Rs 25,373 crore. The company's existing order book is at Rs 1.30 lakh crore. ref: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-working-on-diversification-to-beat-power-sector-woes/articleshow/16807711.cms