Bharat Heavy Electricals Limited, Ranipet, has, for the first time, crossed the Rs.2,500-crore mark in turnover and the Rs.500-crore mark in Profit Before Tax (PBT), achieving Rs.2,530 crore in turnover and Rs.571 crore in PBT during financial year 2009-10.
The Ranipet unit was able to cross the PBT of Rs.500 crore and achieve an increase in PBT by 119 per cent over the previous year mainly owing to its value-added engineering practices and reduction in material consumption. Besides, it was able to cross 2.36-lakh tonnes in despatches, achieving 2,37,492 tonnes during the year. The company's financial turnover tripled while physical turnover (despatches) doubled from the level of achievement in 2005-06.
“It has been possible thanks to the cooperation of the staff and concerted efforts of the company in reducing its material cost. Our focus was on reducing material cost from day one, and this yielded good results,” said A. Chandrababu, General Manager/in-charge, BHEL, Ranipet, at the annual press conference held at the factory in Ranipet on Monday.
The unit has brought down the material consumption from 68 per cent in 2008-09 to 57 per cent in 2009-10.
Indigenisation of corrosion resistant plates, SS wires, gearboxes, etc. yielded savings of Rs.8 crore, while additional sources development for bearings for air pre-heaters (APH), and special fasteners for electrostatic precipitators (ESP) resulted in savings of Rs.10 crore. Strategic procurement of SS wires, steel plates and structural materials resulted in savings of Rs.20 crore.
The General Manager/in-charge said that BHEL Ranipet had an outstanding order book of Rs.7,462 crore compared to Rs.7,050 crore in 2008-09.
