Bharat Bijlee plans foray into T&D business

Mumbai-based power transformer manufacturer Bharat Bijlee Ltd (BBL) is planning to foray in the transmission and distribution (T&D) business.

The company is scouting the international market for strategic alliances for T&D foray.

Company sources said it may go for technical collaboration including possible joint ventures.

The sources said the company was in talks with some international players for strategic tie-ups.

They said, "The T&D business in India is still at a nascent stage and we would like to get into it right now and we are looking at various options."

The move follows Bharat Bijlee's decision to divest its elevator business in 2004 and focus on its core business of motors and transformers, said the company source.

The company recently inaugurated a state-of-the-art 8,000 mva transformer plant at its Thane campus for manufacturing transformers.

This addition will raise Bharat Bijlee's capacity for high voltage transformers by almost three times, from the current 2,000 mva to 10,000 mva. With the domestic T&D sector opening up, power majors are keen on investing in the sector.

Almost all the major component suppliers have upped their capacities to meet the rising demand for transformers over the next few years. According to a Central Electricity Authority estimation, the demand for power transformers, especially for higher voltage, is likely to jump by more than 50 per cent in the 2007-2012 period.