BHEL eyeing big business in Indonesia

Bharat Heavy Electricals Ltd. is exploring the possibility of setting up an assembly unit in Indonesia. It intends to grab a sizeable market share of the growing demand for power equipment in the South-East Asian country, according to sources. A decision in this regard is expected in the first half of 2011.

The Indian equipment major, which has a sales office in Jakarta, is currently studying the growth potential of the Indonesian market.

As part of its long-term plan to boost its export operations, the company is also bullish on the prospects in the South African market. Initiatives are on to grab orders for export of key equipment to Belarus, Zambia, Libya and Bangladesh. BHEL supplied equipment to most of these markets in the past and is now negotiating for fresh supplies.

With increasing Indian exposure in Indonesia, theoretically, BHEL has growing market opportunities in the country. As the quality of Indonesian thermal coal is close to the Indian varieties except for low ash and high moisture contents, BHEL boilers and turbines are also considered suitable for use in Indonesian conditions.