HEC back on its feet

KOLKATA: Heavy Engineering Corporation (HEC), the sick public sector company that is now back on its feet, is looking to diversify into manufacture of electric locomotives. The company is looking to rope in a strategic partner and has
already begun talks with Czech major Skoda for the same.

"A core team has also been put in place for our proposed diversification. We have initiated discussions with Indian Railways for supply of electric locomotives to the latter," Mr G K Pillai, chairman & managing director, HEC, told mediapersons on the sidelines of a one-day seminar on ���Adversity to Opportunity��� held in Kolkata on Friday.

The seminar was organised by Confederation of Indian Industry (eastern region), under the aegis of economic affairs sub-committee.

Though the talks are still at a nascent stage, the PSU is contemplating several options including the joint venture route, a technical agreement or an equity partner with Skoda for its foray into electric locomotive.

Outlining the group���s future plans, Mr Pillai said, "to improve margins and achieve a turnover of Rs 1200 crore by 2011-12, we need to identify businesses which will enable HEC���s to leverage its existing infrastructure and technology. Since Indian Railways have recently floated a tender inviting bids from electric locomotive manufacturers, we are toying with the idea of entering into this business."

At present, HEC���s performance depends on the boom and slump of steel companies, mining and railways. "We are planning to enter into a steady business including manufacture of wheel & axle. Since railways import wheels from China and other places, it would make business sense if we set up a wheel manufacturing unit in Ranchi," he added.
Incidentally, the company has some 9,000 acres of leasehold land which it intends to use for its diversification cum expansion plans.