HEC to export to SA

After reporting record gross sales and net profit for fiscal 2007-08, the Ranchi-headquartered Heavy Engineering Corporation (HEC) would be exploring exports of indigenous equipments manufactured in one of its three plants.

The chairman & managing director of HEC, G K Pillai, said that South Africa appeared to be one of the best possible markets for light equipments being produced in the company's Heavy Machine Tools Plant (HMTP).

He added that HEC's exports to South Africa would start from the current fiscal. The CMD said "In spite of all the odds and fast depletion of manpower, hard work, dedication and commitment of HEC's employees resulted in a net profit for the second consecutive year."

Pillai said HEC had achieved gross sales of Rs 416.28 crore which was highest since its inception 47 years ago. Gross sales during 2007-08 were 37 per cent higher than in 2006-07. The net profit of the company in the fiscal 2007-08 was Rs 3.46 crore, 21 per cent higher than previous fiscal.

The CMD said that on March 31, 2008, HEC signed an MOU with Ministry of heavy industry & public enterprises and accepted a performance target for 2008-09 with gross turnover pegged at Rs 465 crore and net profit at Rs 6 crore. If all went well, HEC could achieve a gross turnover of Rs 1,000 crore in the fiscal 2008-09. Pillai said that HEC was expecting work orders of around Rs 1,500 crore soon.

Pillai said," Major part of the profitability has been marred by interest burden on government loan. Had the land issue been resolved and company received the fund from government of Jharkhand, the profit during the year would have been Rs 23 crore, the highest ever in the history of HEC till now."

The CMD said in 2007-08, HEC had received orders worth Rs 400 crore and as on date, HEC was sitting on orders worth Rs 672 crore.

Pillai said during the year, HEC supplied its 500th mechanized shovel and it was supplied to Central Coalfields Limited (CCL). Till date HEC had supplied 514 shovels to mining industry. The CMD said HEC was putting more thrust on strategic areas like defence and space.

HEC manufactured and supplied six axis CNC double column vertical turning and boring machines which would be utilized for manufacture of aerospace sector components as well as a CNC deep hole drilling machine, folding-cum-vertically repositionable platform for rocket assembly, horizontal sliding door and mobile launching pad to buyers like Vikram Sarabhai Space Centre and the Ordinance Factory at Ichhapur, and some of there were ready for dispatch.

Pillai said that the challenge before HEC now was to retain its position as the major supplier of equipment needed for the expansion SAIL plants.

HEC would be entering into manufacturing of rail axles and aimed to take up the manufacturing of complete rail wheels and axles.