Bharat Heavy Electricals Ltd seeks high-end naval gun ally

State-run Bharat Heavy Electricals Ltd (Bhel) is expanding its portfolio in the defence sector. Bhel aims to supply higher version of super rapid gun mount (SRGM) naval guns to the ministry of defence.

Total revenue from this order could be in the range of Rs 4,000 crore to Rs 5,000 crore. The company is looking for a technology partner and expects to finalise one in the next 9-12 months.

“The defence ministry has given us the mandate to develop a higher version of SRGM guns. We need the technology for which we will tie up with some foreign player. A lot of players have approached us and we are doing the due diligence,” said B Prasada Rao, chairman and managing director, Bhel.

A senior executive of the company said technology available with European companies looks better than elsewhere in the world.
Therefore, Bhel may strike a deal with a European company, he said.

Bhel is currently using the technology of Oto Melara, an Italian company, to manufacture 76mm SRGM naval guns for the Indian Navy.

Currently, over 75% of the company’s revenue come from the power sector. However, gradually, the company is looking to expand its portfolio into other sectors as well.

Meantime, Bhel has reported a street-beating 37% rise in provisional net profit for the year ended March 31, 2010, at Rs 4,287 crore compared with Rs 3,138 crore for the corresponding period last year.

The company is aiming a  turnover of $10 billion to $11 billion by 2011-12. Bhel will raise its manufacturing capacity to 20,000 mw by March 2012 from the existing capacity of 15,000 mw.
During 2009-10, the company secured orders worth Rs 59,031 crore. Total orders in hand for execution in 2010-11 and beyond stand at about Rs 43,800 crore currently.

On the nuclear plant manufacturing front, the company said it is close to finalising its foreign technology partner. Bhel has signed a pact with Nuclear Power Corporation for making turbo generators required for high capacity nuclear power plants.