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

Distribution of Shareholding as on 30.09.2012

You may check the share holding of BHEl at the following link : http://www.bhel.com/dynamic_files//press_files/pdf/Shareholding%20Pattern%20Sep%2012.pdf

Fire breaks out in BHEL's transformer testing block

A major fire broke out in the testing area of transformer block (block no 3) of the Bharat Heavy Electricals Limited (BHEL) around 10 am on Wednesday. The fire that broke out after a deafening blast led to a thick envelope of smoke that led to panic among the workers. The BHEL management has ordered an inquiry into the incident which will also ascertain the cause of the fire and the extent of damage. Thick black smoke continued to billow from the factory for an hour and a half as a dozen fire tenders tried to douse the flames. There were no casualties and the damage is being estimated said a BHEL spokesperson. ref: http://timesofindia.indiatimes.com/city/bhopal/Fire-breaks-out-in-BHELs-transformer-testing-block/articleshow/16760366.cms

BHEL pays all-time high equity dividend of 320% for fiscal 2011-12

With a final dividend payout of 184%, Bharat Heavy Electricals Limited (BHEL) has paid an equity dividend of 320% for fiscal 2011-12, as against 311.5% paid in the year before. At Rs.1,567 Crore, this is the highest-ever dividend in percentage as well as value terms paid by the company so far. With this, the company has maintained its track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break. A cheque of Rs.609.98 Crore towards the final dividend for the year 2011-12 on the equity (67.72%) held by the Government of India, was presented here today to Praful Patel, Union Minister for Heavy Industries and Public Enterprises by B.P. Rao, Chairman and Managing Director, BHEL, in the presence of S. Sundareshan, Secretary, Department of Heavy Industries. Directors on the board of BHELBSE -1.52 % as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion. more at: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/engineering/bhel-pays-all-time-high-equity-dividend-of-320-for-fiscal-2011-12/articleshow/16738617.cms

Tamil Nadu Electricity Board cracks whip on BHEL

The Tamil Nadu Electricity Board (TNEB) in an attempt to extend the duration of power availability to the common man has imposed a 40% power cut on Trichy's Bharat Heavy Electricals Limited (BHEL) since September 28. The TNEB maintained that the decision was inevitable as it could not leave the common man without power for longer hours. However, BHEL general manager (maintenance and services) J Kannan told TOI on Thursday that the plant suffered losses to the tune of crores of rupees since the latest power cut and that he could not operate the high energy consuming main machine. "In addition to the financial losses, I have to make changes in the shift system. As a result I would not be able to meet the delivery deadlines," he said from the Trichy airport as he was headed for Chennai to take up the matter with the higher officials. more at: http://timesofindia.indiatimes.com/city/madurai/Tamil-Nadu-Electricity-Board-cracks-whip-on-BHEL/articleshow/16678414.cms

BHEL suppliers in Tiruchi in trouble due to lack of power, finance

The 600-odd small and medium fabricators that supply to BHEL face closure of business due to multiple factors—mainly lack of power, finance and “intermittent periods of dried up orders.” “The power situation in the state is crippling the units’ productivity. Some units are on the verge of shutdown due to acute power shortages,” says BHEL Small and Medium Industries Association (BHELSIA). Power from diesel gensets, it says, is way too expensive. Unless the situation is rectified immediately on war footing, the industrial infrastructure patiently built over five decades in Tiruchi would wither away, BHELSIA says in a press release. Units are even agreeable for a two day power holiday per week, provided uninterrupted power is supplied for the balance five days, it says. more at: http://www.thehindubusinessline.com/companies/article3960988.ece

Bharat Heavy Electricals Ltd (Bhel), state-owned capital goods company, is looking at engineering, procurement and construction (EPC) contracts and urban transport projects such as Metro rail to offset dwindling revenues from its mainstay boiler, turbine and generator (BTG) business. The company aims to double turnover to Rs1 lakh crore by fiscal 2017 from the Rs48,000 crore clocked in the last fiscal. “Bhel is diversifying into related and unrelated fields for increasing its turnover. Related activities such as strengthening its EPC arm will play a pivotal role in achieving the topline growth,” Ambuj Sharma, joint secretary, heavy industries and public enterprises ministry, told DNA Money. ref: http://www.dnaindia.com/money/report_hit-by-btg-bhel-seeks-epc-metro-boosters_1747737