New Delhi: State-run Bharat Heavy Electricals Friday said the merger of Bharat Heavy Plate and Vessels Ltd (BHPV) with itself would provide a platform to tap potential business opportunities worth over Rs 14,000 crore in the next five years.
Heavy Plates and Vessels Plant (HPVP) is the new name of Bharat Heavy Plate and Vessels Ltd (BHPV), which has been merged with Bharat Heavy Electricals Ltd (BHEL).
The merger has come into effect with the Board for Industrial and Financial Reconstruction (BIFR) approving the modified draft rehabilitation scheme.
"... HPVP shall be developed as a hub for industrial boilers. There is a business potential of Rs 9,000 crore in the next five years for industrial boilers upto 500 TPH and BHEL would strive for major share of this business through HPVP," Bharat Heavy Electricals Ltd said in a statement.
According to the company, the merger would facilitate BHEL's entry into the oil & gas sectors for products like Group Gathering Stations and Gas Processing Units etc. BHEL's presence in process industries like refineries, petrochem, and fertilisers has earlier been limited to supply of individual products like boilers, turbines and motors.
"After merger, BHEL will be in a position to bid for entire systems / sub-systems & progress to qualify for EPC contracts in these sectors and BHEL expects an additional business of over Rs 5,400 crore in the next five years," the statement said.
Further to modernise HPVP, capital investments to the tune of Rs 230 crore is being taken up.
Established in 1966, BHPV catered to the specialised equipment and plants required for oil refineries, fertiliser plants, steel plants and defence sector, among others.
First Published: Friday, September 6, 2013, 17:45