BHEL-Bangalore units to up capacity to 20,000 Mw in FY12

Company plans to invest Rs 100 crore on glass insulator manufacturing unit.

The Bangalore divisions of the Bharat Heavy Electricals Ltd (BHEL) have drawn up plans to augment the annual manufacturing capacity to 20,000 Mw during the present fiscal 2011-12, an increase of 33.3 per cent over the previous year.

“As part of the company’s Strategic Plan 2017, the Bangalore-based divisions of the BHEL have embarked on strategic measures to grow further in their existing business areas. They are also diversify in emerging growth areas like transmission, transportation, solar photovoltaics, steel business, disc insulators for UHVAC transmission lines, porcelains, composite long rod insulators among others,” G Ganapathiraman, executive director (EDN & ISG), BHEL said. The cost of this capacity addition is estimated to be Rs 54 crore. Last year, the divisions in Bangalore completed the capacity augmentation to 15,000 Mw. Over the last three years, the BHEL has spent Rs 147 crore for capacity expansion, he told reporters.

Besides this capacity expansion, the Ceramic Business Unit (CBU), which has manufacturing plants in both Bangalore and Jagadeeshpur in Uttar Pradesh, is also setting up a plant to manufacture glass insulators for transmission lines. “Presently, we have a capacity to produce 100,000 units per annum at Jagadeeshpur. We will increase the capacity to 1.8 million units per annum at an investment ofRs 100 crore by setting up a plant,” D Ashok, executive director, CBU, said.

Power Grid Corporation of India Ltd (PGCIL) is the largest customer of BHEL for glass insulators. BHEL supplies 70 per cent of the production to PGCIL. Its other customers include ABB, Areva and state power utilities.

Ganapathiraman said during 2010-11, the Bangalore divisions of BHEL have recorded the highest ever turnover of Rs 3,081 crore, showing a growth of 28 per cent over the previous year. The profit before tax has shown a growth of 35 per cent to touch Rs 900 crore during the year. In Bangalore, BHEL has three divisions — the electronics division, industrial systems group and ceramic business unit.

Export turnover stood at Rs 1,099 crore. The outstanding orders have grown 15 per cent to touch Rs 8,067 crore. During the year, the divisions received orders worth Rs 3,815 crore. Major orders received include orders for three sets of 800 Mw for the Raichur Power Corporation Ltd and one set of 700 Mw for Bellary Thermal Power Station stage 3 from Karnataka Power Corporation Ltd.

BHEL is fully geared to meet the requirements of the upcoming 800 Mw, 700 Mw and 660 Mw super critical power projects in the areas of design, engineering, manufacturing, supply and commissioning of control and instrumentation systems, he added.