Bharat Heavy Electricals is exploring opportunities for an acquisition or a joint venture partnership with companies from the United States and Europe.
The power equipment major will look for companies that are engaged in new transmission as well as ultra super critical technologies to take on the challenge posed by Chinese companies and even upcoming JVs formed by Indian manufacturers.
"BHEL is certainly looking at options to acquire companies or form a joint venture with companies from the US and Europe. The actual investment and other details are currently being worked out. However, I do not see any problem as BHEL has a networth of over Rs 12,000 crore," BHEL CMD B P Rao told Business Standard on Tuesday.
He further pointed out that such a deal will also aid BHEL in getting access to foreign markets.
"We are fully aware of the prevailing competition in the market. We have identified and prioritised a few of the major stress areas in order to maintain our pole position as technology and market leader in the power equipment segment in the domestic market," Rao said.
He informed that, despite competition, BHEL had secured orders for 11,200 Mw, mainly from independent power producers, by the end of December, 2009. "Chinese equipment are cheap as the companies enjoy a lot of subsidy. Let the government take a decision on imposing some duty," he noted.
Rao said BHEL is an integrated equipment manufacturing company with a manufacturing capacity of 15,000 Mw. According to him, BHEL is expected to grow at 20-25 per cent annually in the next five years and its manufacturing capacity would rise to 20,000 Mw by 2012. "The company sees no problem in spending on increasing capacity," he added.
He also said BHEL has forged partnerships with NTPC, Nuclear Power Corporation, KEL and HEC to strengthen execution capabilities through effective sharing and sourcing critical inputs. BHEL has formed a JV with the UK-based Sheffield Forgemasters for forging and casting.
The BHEL CMD further informed the company has a centralised project management group based at Delhi, which has been authorised to act as a single window of service for customers and liaise closely with project management groups for manufacturing units.
