BHEL Tiruchy wants its subcontractors to increase the capacity

Bharat Heavy Electricals Limited (BHEL’s) Tiruchirappalli (Tiruchy) unit has asked its subcontractors to increase their capacity to 50 per cent from the current 32 per cent to support it’s target to achieve a turn over of Rs 10,000 crore for the current fiscal, said V Ananthakrishnan, executive director, BHEL – Tiruchy
 
He said that the unit, which produces boilers for power projects, will achieve a turnover growth of 28 to 30 per cent in 2009-10. While the turnover target fixed for the unit for this fiscal is Rs 9,500 crore, the unit is expected to achieve turnover of around Rs10,000 crore depending on the business potential available.
 
Ananthakrishnan urged the subcontractors to increase their capacities to manufacture headers and panels since the requirement for these products would increase in the coming years. He wanted the firms to follow the just in time concept to avoid inventory buildup.
 
He also asked the contractors to shift their focus from tonnage to sequential dispatch and to increase erectability at sites to meet the customer commitments and asked the subcontractors to increase their capability to suit the latest needs of BHEL in supercritical technology.
 
A Chandrababu, General Manager (Outsourcing), BHEL said that the outsourcing firms achieved a tonnage of about 1.7 lakhs MT. The number of subcontracting firms also increased from 346 to 429 in the last one year.
 
On business to Away Centre Fabrication units Chandrababu said in 2008-09, 40,000 MT were made through ACF and expected to increase to 2 lakhs MT in 2009-10.
 
Next financial year, BHEL expected to manufacture more than 4 lakhs MT through outsourcing of which 2,70,000 MT would be from Tiruchirappalli firms, he said.
 
M Variavel, secretary, BHEL Small and Medium Industries Association (BHELSIA), which represents over 280 vendors, of the total 382,associated with BHEL Tiruchi, told Business Standard that while BHEL Tiruchi is planning to invest around Rs 1,200 crore by 2011-12, to support the unit, the vendors in and around Tiruchy would invest Rs 200-300 crore during the same period. He noted in the last two years vendors have invested around Rs 100 crore to import machines that automate welding of boiler support structures and to increase the capacity.