Bharat Heavy Targets Exports as Larsen, Toshiba Expand in India

Bharat Heavy Electricals Ltd., India’s biggest power equipment maker, plans to double exports as expansions by rivals such as Larsen & Toubro Ltd. and Toshiba Corp. threaten a supply glut in its main market. The state-run company wants overseas sales to account for 15 percent of revenue by 2012 and is targeting orders from Central Asia, Africa, the Middle East and the Indian subcontinent. 
 
Manufacturing capacity could be a little more than the requirement in few years. India’s plan to almost double electricity generation by 2017 has prompted Bharat Heavy to add capacity and attracted investments in equipment manufacturing from companies including Larsen, Toshiba and Alstom SA. Bharat Heavy’s sales growth has slowed for three straight quarters and has lagged behind the company’s target of a 25 percent annual increase. Bharat Heavy will witness competition in the Indian market with new capacity coming up in the next couple of years.
 
Exports currently account for 8 percent of the company’s sales. It is doubling its annual capacity to produce equipment capable of generating 20,000 megawatts by 2012. That compares with 23,763 megawatts of plants that started in the last three years. One megawatt is enough to power about 200 middle-class Indian homes.