We aim for Rs 11,000-cr orders before April

Written by Kavitha Venkatraman | Updated: Feb 19 2011, 04:53am hrs
Bhel, Tiruchirappalli is a major manufacturing unit of the Bharat Heavy Electricals (Bhel) family. The unit which is in the central part of Tamil Nadu manufactures high-pressure boilers for power projects. It accounts for nearly 25% of the corporate turnover. Despite the global meltdown, the unit headed by AV Krishnan, executive director, registered a turnover of Rs 10,009 crore during 2009-10. In a freewheeling chat with FE's Kavitha Venkatraman, AV Krishnan talks about the business opportunities in super critical segment, order book, among others. Excerpts:

How is your current order book Where do you see more business opportunities coming from

Our outstanding order book as on date is Rs 38,000 crore. In the current financial year, we have received orders worth Rs 9,400 crore so far. Power sector alone contributes to nearly 88% of Bhel's order book and the balance 12% is from the industry sector. Power sector offers very good business potential and so business opportunities should naturally be coming from this sector in the near future. Before April 2011, Bhel Tiruchirappalli unit is expecting to gain orders worth Rs 11,000 crore and of this nearly 20% would come from the super critical power segment.

What is your take on the super critical segment

Till date, we have 11 supercritical orders. They are 5 X 660 MW, 5 X 800 MW and 1 x 700 MW project. Of the 660 MW orders, two are from Barh in Patna district in Bihar and three are from Bara in Allahabad district in UP. In 800 MW segment, we have orders for two projects from Krishnapatnam in Nellore district in Andhra Pradesh and two from Yeramarus in Raichur district in Karnataka and one from Edlapur in Raichur. The 700 MW order has been received from Karnataka Power Corporationfor their Bellary project.

As far as the supercritical segment is concerned, the share in the overall order book of Bhel will be more than 70% in the next five years. In the 12th five year plan, our order book would have 65% coming from sub critical and 30-35% from the super critical segment.

Bhel has technical collaboration with Alstom and Siemens for the supercritical boilers and turbines for technology support. The first phase of the technical collaboration which involves transfer of design is over and the second phase which involves the manufacturing process is going on. By 2014-16, Bhel would be fully on its own in terms of design, manufacturing, erection, construction etc of supercritical boilers and turbines.

It is very difficult to say how many orders we will bag under the supercritical segment. However, we are sure that the tie up with Alstom gives us the necessary leverage when the company bids for projects. We are confident of getting some good orders shortly.

What has been Bhel Tiruchirappalli's contribution to the overall performance of Bhel over the years and how do you see this going forward

As far as Bhel's turnover is concerned, 25% of corporate turnover comes from Bhel, Tiruchirappalli and in terms of profit, it is over 30% and this trend is likely to continue in future as well. In the last financial year, Bhel, Tiruchirappalli achieved a turnover of Rs 10,009 crore.

What are your future capex plans

We have just completed the phase II expansion to reach an annual capacity of 15,000 MW for Bhel. The third phase is underway for achieving the 20,000 MW a year. This phase will be completed by March 2012. Bhel is also setting up a new plant for manufacturing piping components at Thirumayam, in Pudukottai district of Tamil Nadu with an investment of Rs 300 crore and it will become operational by March 2012. It would manufacture economiser coils, re-heater coils, super-heater coils, low temperature super heater coils, and loose tubes for boilers of different capacities. The overall production capacity of the plant would be 30,000 tonne per annum.