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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