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Home News Power Sector News BHEL scouts foreign companies for acquisition

BHEL scouts foreign companies for acquisition

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BHELKeen to expand its overseas operations, especially in African market, state-owned power equipment maker Bhel is targetting to increase its revenue from exports to Rs 4,500 crore this fiscal and may pick up stake in ventures abroad. "About 8-10 per cent of the company's turnover is contributed by exports. Last year (2010-11), we have done about Rs 4,000 crore from the export markets, this year also we are expecting to do a similar thing," Bhel Chairman and Managing Director B P Rao told PTI.

The company is, however, working on a stragetic plan and will announce new targets for export revenues in next 5-6 months, he said, adding, the company is growing manifold in the international markets and is focussed especially on Africa.

"Exports are important... focus has been Africa, South-East Asia, Gulf countries. Africa is definitely a very big focus area for us, we are doing jobs in Sudan and Libya," Rao added.

Although Bhel reported lower export revenues from its key markets like Africa and Middle East, the company is still postive about generating 8-10 per cent of its annual revenues from exports, same as the previous fiscal.

Asked what types of ventures Bhel is looking for in the overseas or in the domestic markets, Rao said any opportunity which can give us new market, new technology or strategic input like raw material for our businesses.

BHEL which has presence in over 70 countries, spanning across six continents, has set a target of generating Rs 45,000 crore, by the end of the current XIth Five Year Plan Period (2007-12).

Apart from power equipment, the company also offers engineering, procurement and construction services. Bhel has appointed advisors -- Kotak Mahindra and Meril Lynch -- to guide the PSU and scout for right opportunities to participate in the overseas ventures.

Asked if the copany has earmarked a dedicated corpus for picking up stake abroad, the CMD said Bhel is a cash rich company. It has over Rs 9,000 crore cash surplus and funds would not be a problem if good opportunity comes.

With its order book at worth over Rs 1.64 lakh crore, the cash-rich company is bullish on its business plans and is mulling to participate in the state power projects by way of picking equity. This will give company new revenue generation stream as well as new orders for equipments.

Bhel holds stake in various thermal power projects of the state generation utilities in the country including those from Karnataka, Maharashtra and Madhya Pradesh.

Source- Economic Times


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