BHPV and BHEL Merger

BHEL : Power equipment manufacturer (Energy Industry) BHPV: Engineering and heavy fabrication company (Energy and Petrochemical industry) Synergy Operational: Economies of scope Financial: Related diversification ( new product , same market) , Market power Reason behind merger
Diversifying its product portfolio (Oil, Steel, Cement & Fertilizer sectors) New market for expansion (e.g. Military, Government of India etc) Facilitate BHEL's entry into the Oil & Gas Sectors for products like Group Gathering Stations, Gas Processing Units etc. BHEL will be able to address forthcoming business from various process industries BHEL will be in a position to bid for entire systems / sub-systems & progress to qualify for EPC contracts in these sectors

 HPVP would become BHEL's first strategically located coast-based plant which will be used in transportation of heavy over dimensional consignments (ODC) for domestic and international orders HPVP has already made export project in New Caledonia & shipped from the sea side facility which brings competitive advantage to BHEL

Plan after merger

BHPV would be able to participate in tenders, obtain orders and attract best vendors for procuring materials and capital goods. It would provide a platform to tap potential business opportunities worth over Rs 54,000 crore in the next five years. BHEL will be in a position to bid for the entire systems / sub-systems and progress to qualify for EPC (engineering, procurement and construction) contracts in the sectors where HPVP has presence. Business potential of Rs.90,000 Million in the next 5 years for industrial boilers upto 500 TPH and BHEL would strive for major share of this business through HPVP.