Railways is BHEL’s first stop in bid to get 40-50% revenue from non-power areas

Indian Railways' massive electrification plan may just be the opportunity Bharat Heavy Electricals — the manufacturer of boilers and turbine generators for the power sector — is looking for to make sure it gets 40 to 50 percent of its revenues in some years from now. The start hasn’t been bad. From getting small contracts for sewage treatment and lake cleaning, the company is now in contention for a big one — Railways’ first large electrification tender — this one being of 400 kms. The company aims to double the share of revenues from non-power sector to 40 percent by 2022. “Internally, the company wants to make it 50 percent but that would be very difficult. Forty percent by 2022 is what looks feasible and we are working towards that,” a senior official with the company told Moneycontrol. BHEL reported sales of Rs 5,607 crore in June quarter with share of non-power revenues at close to 23 percent. The railways’ 400-km track electrification tender is a prestigious one. It’s the first time in history the monolith is attempting to undertake such an exercise with just one tender, this being 10 to 11 times larger than what the national transporter has been doing all these decades. ref: http://www.moneycontrol.com/news/business/railways-is-bhels-first-stop-in-bid-to-get-40-50-revenue-from-non-power-areas-2486727.html