Millennium Post
Business

Bhel powers order book by 43% to Rs31,650 cr in FY13

State-run Bhel on Friday said that it has secured orders worth over Rs 31,000 crore during financial year 2012-13, an increase of 43 per cent over 2011-12.

The company had an orderbook of over Rs 22,096 crore in the 2011-12.

'Despite subdued business conditions in the power and infrastructure sectors coupled with intense competition in domestic and overseas markets, Bhel was able to secure orders worth Rs 31,650 crore, an increase of 43 per cent over 2011-12,' CMD Bhel B P Rao said at the company's annual general meeting here on Friday.

The total orders in hand for execution in 2013-14 and beyond, stand at about Rs 1,15,100 crore, he said.
The order-book includes Rs 4,500 crore worth of orders in captive power, rail transportation, power transmission, oil and gas, renewable energies and other industrial segments.

Rao said that the company clocked a turnover of Rs 50,156 crore and a net profit of Rs 6,615 crore in 2012-13.
'Bhel is enhancing its competitiveness on the global platform for sustaining leadership and engineering new growth avenues with the objective of fulfilling its responsibilities as a global engineering and manufacturing enterprise of India,' he said.
Bhel was able to commission 10,340 MW of power plant equipment during 2012-13. It also established a 5 MWp grid-interactive SPV power plant at its Ranipet Unit.

MWp or megawatts-peak, refers to power output related to solar energy.The company also witnessed an export order inflow of Rs 2,004 crore from 20 countries in 2012-13.

He further said that given the high demand-supply deficit and current impasse in the Indian power sector, power sector will continue to offer maximum growth opportunities in future for the company. Nevertheless, the company will diversify its portfolio of growth opportunities by augmenting capabilities in Transmission, Transportation, Defence, Water, Solar and Nuclear businesses to reduce the risk of uncertainties in power sector.

‘As intensity of competition is increasing, Bhel is focusing on improving its cost competitiveness by making supply chain agile and accelerating project execution through sustained focus on vendor base expansion, scaling up procurement through technology initiatives, advanced
manufacturing action, global sourcing, integrated operations improvement initiatives and indigenization of supercritical technology etc. In addition, as the employees of your company are getting younger, Bhel will have another lever of cost competitiveness in its favour,’ he added.
Bhel has manufacturing facilities in Hyderabad, Tiruchirapally, Ranipet, Haridwar, Jhansi, Bangalore etc.

Rao informed the shareholders that five years after the global financial crisis, the economy and the industry are still reeling under the crisis of confidence in India as well as in the world. Bhel too is affected by this crisis but the company is not allowing the crisis go waste. It is building new competitive advantages by experimenting with new ideas and methods rapidly, frequently, and economically - not only with products and services but also with business models, processes, and strategies.

‘While we may have to go through some pain in the short term, there is absolutely no doubt that Bhel’s inherent technology strength, committed manpower, manufacturing prowess and innovation ecosystem will enable us to recapture the growth once Indian economy moves to another growth trajectory in near future,’ he said. 
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