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

Bharat Heavy Electricals Ltd. | Engineering - Industrial Equipments | Capital Goods & Industrial Consumables | BSE: 500103 | NSE: BHEL

11 Apr 2011 Evaluate

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 planning to 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. 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.

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, it has 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 of Rs 100 crore by setting up a plant.

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.crack crack