Millennium Post

Bhel is power plant equipment market leader with 89% share

Bharat Heavy Electricals Ltd (Bhel) expanded its offerings and secured 89 per cent EPC-based power projects in financial year 2014-15, thereby retaining its leadership position with a 72 per cent market share. The national power equipment manufacturer synchronised or commissioned 11,941 mw of power plant equipment — accounting for more than 10,000 mw —for the third year in a row. With this, Bhel has joined the elite club of global giants with an installed base of over 150 gw of power generating equipment

Expanding its offerings, Bhel secured 89 per cent of its total orders in the power sector on EPC basis, thereby retaining its market leadership position during 2014-15 with a 72 per cent market share even while operating in a difficult business environment. The company’s improved focus on project execution enabled it to garner record commissioning/ synchronisation of 11,941 mw of power plants in the domestic and international markets in 20114-15.

Bhel secured orders worth Rs 30,794 crore during the just ended fiscal, an increase of 10 per cent over last year from its diversified business segments, covering both domestic and international markets. Its orders in the power sector witnessed a 22 per cent jump to Rs 24,873 crore while those in the most diversified industry segment saw a 4 per cent rise to Rs 5,201 crore in 2014-15. The company booked Rs 720 crore orders for exports and ended the fiscal with a total order book of
Rs 1,01,159 crore.

Bhel bagged the country’s first ever 800-mw EPC order from GSECL, Wanakbori, an EPC order for the country’s first ‘9FB Advanced Class Gas Turbine’ from KPCL for the Yelahanka CCPP (370 MW), the second largest single order worth Rs 7,688 crore for the 2x660-mw Ennore SEZ from Tangedco
The national company also signed an MoU with the newly formed Telangana state for 6,000 mw of power projects and received two significant EPC orders from TSGENCO Telangana for the 1x800 mw Kothagudem and 4x270 mw Manuguru. The orders secured involve challenging project schedules of 24 months for 270 mw  and 36 months for 800 mw, in order to create benchmarks in project execution.

Bhel recorded a turnover of Rs 30,806 crore (provisional) and net profit of Rs 1,314 crore (provisional) during 2014-15. The profit impact is due to low volumes as a result of the retarding force of the last three years’ market shrinkage due to issues relating to coal linkages, fund constraints, land acquisition issues, clearances, etc. The focus on cost optimisation through increased localisation of super critical technologies, higher value additions; increased vendor base and design optimisation efforts aided the company in raising margins.

Bhel’s emphasis on cash realisation during financial year 2014-15 resulted in its retaining a cash surplus situation. The rising trend of debtors has also been arrested. The company’s commissioning/ synchronisation of 11,941 mw included 10,230 mw in the utility segment, 1,392 mw captive/ industrial sets in the country and 319 mw in the overseas market.  

Significantly, not only has Bhel surpassed the total capacity addition achieved in the 11th Plan within the first three years of the 12th Plan itself, the company has also exceeded the Ministry of Power’s target for the year by 19 per cent.

A major milestone of the year was the commissioning of four overseas power plants in Rwanda, Sudan, Ethiopia and Oman. Bhel signed an MoU with HSL & MIDHANI and formed a consortium for P 75I submarines, a stepping stone towards India’s indigenous submarine-building programme.  Fiscal 2014-15 was a year in which BHEL made significant progress in further consolidating its strengths and value propositions to emerge even more competitive for tapping opportunities in the next phase of economic growth of the country.

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