BHEL-Trichy Complex to enter new areas including defence

Bharat Heavy Electricals Limited's (BHEL) Tiruchirappalli (Trichy) Complex, which manufactures boilers for the power sector, plans to diversify into new areas as part of its de-risk strategy.

The Rs 15,000-crore BHEL-Trichy Complex will enter defence, oil and gas sectors, among others. The Complex has decided to ear mark 20-25 per cent of its capacity for the new business.

A V Krishnan, executive director of BHEL-Trichy Complex said the diversification has started. As the first step, the Complex got few trial orders from Defence Research and Development Organisation (DRDO) in Avadi near Chennai to supply 50 thermal pressure components for the battle tanks produced by DRDO. The DRDO's requirement is 250-300 every year and the value is estimated to be around Rs 100 crore, said Krishnan.

BHEL-Trichy Complex is also looking at oil, gas and refineries to supply different components to increase revenue from non-crore areas and to fully utilise the capabilities developed over the years.

While this may not reflect in this financial year, by FY15, about 20 per cent of the capacity at Trichy will be used for diversified products, added Krishnan.

In FY13, the Complex spent around Rs 415 crore on R&D and generated Rs 3,200 crore revenue from commercialisation of new technology and improvements. A record 103 patent applications were filed last year, said Krishnan.

Despite the slow down, the Complex, which contributes nearly 30 per cent to the overall business of BHEL, has crossed the Rs 15,000-crore mark in sales (Rs 15,003 crore). The Complex is expected to maintain the same number during the current financial year.

The Complex's order book rose by 34 per cent to Rs 7,585 crore during FY13, taking the total order book size to Rs 24,902 crore.

Tie-ups with NTPC and IGCAR
The BHEL-Trichy Complex, as part of the government of India's National Technology Mission, has submitted a document for 800 MW coal plant to the government.

"We hope to get approval in due course of time for our boiler design. The Complex is working with NTPC and Indira Gandhi Centre for Atomic Research (IGCAR) for the same," said Krishnan.