Mumbai: Public sector power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) has targeted $10 billion in overseas business in its 'Strategic Plan 2012' against its current annual exports worth $4 billion.
The company is looking at exports as a key growth-driver, targeting a seven-fold increase in physical exports from the current levels, the company said in a statement.
BHEL, which plans to position itself as a regular engineering procurement construction (EPC) contractor in the international market, is also looking at the merger and acquisition (M&A) route for inorganic growth in the international markets.
The company, with outstanding physical export orders worth over $1 billion, has recorded a 49.25 per cent increase in fresh contracts at Rs 1,903 crore in 2006-07.
These include orders from Bangladesh, Jordan, Oman and Tajikistan, BHEL said, adding that it had annual contracts of an average Rs 1,275 crore in the last five years.
BHEL has in hand power equipment contracts valued over 900 MW and transformer capacity orders of 5,600 MVA from 10 countries across the world. The company also has made successful contacts in several new market segments, the statement said.
The orders include an ADB-funded 240 MW gas turbine-based power plant at Siddhirganj for Bangladesh's Electricity Generation Company on EPC basis, orders from Jordan-based MGI's 500 MW gas turbine-based power plant, besides gas turbine contracts for co-generation application 2x26 MW for Oman Refinery Company.
BHEL has also received contracts for renovation and maintenance and upgrade of Varzob Hydro Project of Barji Tajik from Tajikistan, compressors from French Grande Paroisse (a Total Group company) and 23x125 MVA transformers from Egypt.
In April, BHEL said it planned to invest Rs 3,200 crore ($775 million) to raise capacity to generate 15,000 MW of power per year by 2012.
BHEL's equipment brings electricity to three out of four Indian homes. The government plans to add more than 78,000 MW of power generation capacity by 2012 to meet the rising demand.
