Ramachandrapuram unit’s gross profit and turnover up 37% and 33 % respectively.
Bharat Heavy Electricals Limited (BHEL) is confident of bridging the price gap that exists between indigenously manufactured and Chinese power plants in the near future on the back of growing business volume, according to R Krishnan, executive director of Ramachandrapuram unit, the second largest after the Kochi unit in terms of business turnover.
The unit posted a 37 per cent rise in gross profit at Rs 1,283 crore and a 33 per cent increase in total turnover at Rs 6,652 crore for the year 2010-11. It is planning to increase the capacity to 4,115 Mw from the present 2,900 Mw by March 2012 by investing about Rs 900 crore. This is part of the 20,000 Mw capacity expansion envisaged by the company across all its units.
“Chinese power units are 10-15 per cent cheaper than BHEL-built power plants. However, power project developers, including those in the private sector, are preferring our products over Chinese units because of the overall quality and service that we offer,” Krishnan said at an annual press conference here on Thursday.
He said Chinese companies do not allow one to check the manufacturing stages of equipment and also do not discuss issues involving various technical aspects at regular intervals as was being done by BHEL.
With orders pouring in, the company is not much concerned about the marginal price advantage that the Chinese companies enjoy. In a move that would also help contain the cost, the Ramachandrapuram unit is sourcing heavy forgings and castings from China.
Apart from working on the usual product range such as gas and steam turbines, centrifugal compressors, generators and pumps, the Hyderabad unit has also successfully tested India’s first indigenously manufactured Frame-9FA (256 Mw) gas turbine designed for dual fuel firing, according to Krishnan. The unit has also entered into a memorandum of understanding with National Oilwell Varco, US, to enhance the capability of the oil rigs division apart from acquiring latest technology for high-pressure high-flow compressors from GENP, Italy.
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It has orders worth Rs 16,880 crore for execution during 2011-12 and beyond, he said.
New division for EPC contracts
The Ramachandrapuram unit has created a separate division — Project Engineering and Systems Development —this financial year to exclusively cater to the growing demand for EPC contracts. The new division is aiming at a turnover of Rs 856 crore for the first year and expects a 25 per cent growth year-on-year. It would provide comprehensive business solutions on EPC and turnkey basis in power-cum-steam cogeneration stations, solar power and other non-conventional energy sources besides spearheading diversification into other areas, RK Wanchoo, executive director of division, said.
For the current financial year, the Ramachandrapuram unit, together with the new division, expects to achieve a turnover of Rs 8,454 crore.