Bhel set to acquire two domestic companies
Ahead of global acquisitions and expansion for which it has a war-chest of Rs 10,000 crore, domestic engineering giant Bhel is all set to acquire two Indian companies as part of its efforts to become an Indian multinational.
By PTI |
NEW DELHI: Ahead of global acquisitions and expansion for which it has a war-chest of Rs 10,000 crore, domestic engineering giant Bhel is all set to acquire two Indian companies as part of its efforts to become an Indian multinational.
"We are looking at a 100 per cent acquisition of Bharat Heavy Plates and Vessels (BHPV) and subsequent merger with itself. The new facility will be used for boosting our industrial boiler business," Bhel Chairman and Managing Director A K Puri told media in an exclusive interview.
Government has asked it to manage and operate another company Bharat Pumps and Compressors Limited (BPCL), he said adding that Bhel would be interested in it also as and when the opportunity arises.
Stating that it has asked the Government to write-off all loans of BHPV, Puri said Bhel would further invest Rs 200 crore for renovating and modernising its facilities, he said adding "another strategic benefit of the deal will be the locational advantage that BHPV enjoys, being on the coast, and this will used to help Bhel's export business logistically."
Bhel is also in search of American and European companies for acquisition that could help it with newer technologies. "We are looking for manufacturing companies but with niche technology like transmission and distribution companies in Europe and to get access to foreign market," Puri said adding Bhel is also open to settin up manufacturing facilities abroad especially in South Africa.
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He said the company would require anything between Rs 8,000-10,000 crore even if it wanted to acquire four-five companies abroad and then expand. On the domestic acquisition, Puri said the Andhra Pradesh Government as well as the employees of BHPV has extended their support in favour of Bhel acquiring BHPV.About the BPCL proposal, Puri said the Heavy Industry ministry is expected to take the cabinet's consent soon. "Also, Oil and Natural Gas Corporation (ONGC) has agreed to extend a loan of Rs 100 crore to BPCL," he said.
Asked about ONGC's role, he said they (ONGC) are the main customers of BPCL and it would continue to enjoy the status of 'assured customer', he said.
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