BHEL in talks for majority stake in Hungarian company

Bharat Heavy Electricals Ltd is set to begin the process of due diligence for picking up a majority stake in a Hungarian engineering company, Transelektro Ganz Rock Boiler and Power Equipment Company. Transelektro makes pressure parts for power plants — such as water walls, superheaters, re-heaters and headers. It is a relatively small company, with a turnover of about Rs 400 crore. It employs about 500 people.
 
If the deal goes through, it will be the first overseas manufacturing facility of Bharat Heavy Electricals Ltd. The acquisition will help the Indian public sector power equipment major get a foot in the European market for renovation and modernisation of power plants.
 
BHEL and Transelektro are no strangers to each other. The move to pick up stake in the Hungarian company gathered steam a year ago, but there have been talks of joint working for many years.