State-run power equipment major BHEL said it is looking at mergers and acquisition to fuel inorganic growth and targets a turnover of Rs 45,000 crore by 2012.
The company has drawn what it calls ‘Strategic Plan 2012’ to ensure sustainable profitable growth over the next five years with the objective of reaching a turnover level of Rs 45,000 crore, BHEL Chairman and Managing Director A K Puri said at the shareholders meeting here.
He said mergers and acquisitions (M&A) route will be pursued to avail inorganic growth opportunities to enlarge the company’s operations both in domestic as well as export markets.
Outlining the company’s future course, he said the growth planks for the next five years will be driven by capacity and capability enhancement that will leverage BHEL’s efforts in its core area of power supported by industry, transmission, exports and spares and services businesses.
Riding on the robust demand, BHEL’s turnover hit an all- time high of Rs 18,739 crore, registering a growth of 29 per cent, while net profit increased by 44 per cent to touch Rs 2,415 crore in 2006-07.
He also declared a final dividend of 60 per cent on the enhanced paid-up share capital consequent to 1:1 bonus issue.
The company paid the highest ever dividend of nearly Rs 600 crore for 2006-07, which is 245 per cent of the paid-up capital pre-bonus, he said.