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At
                     DSP Merrill Lynch
14th Annual India Investor Conference
                    8th February 2010
                            New Delhi
Cautionary Statement
   A US$6 billion Engineering &
    Manufacturing enterprise of its kind in
    India
   A ‘Navaratna’ company and a Major
    Integrated Power Plant Equipment
    Manufacturer in the World
   Profit Making Company since 1971-72
   Consistent Dividend Paying Company for
    over thirty years (FY 1976-77 onwards)
   References in over 70 countries
   Installed base of more than 1,00,000 MW
Power       Transmission


 Single Source

    for Multiple
                   Industry    Transportation
   Solutions of

Infrastructure &

      Industrial
                   Oil & Gas   NCES
 Sectors of the

      Economy
( As on 31st Dec’09 )
(Rs. crore)
Rs. crore
Rs. crore




Total Order Book as on 31.12.09: Rs. 1,34,000 crore
(Rs. Crore)
Parameter                 Q3 FY0910       Q3 FY0809       YoY %

Turnover                      7381             6445       + 15%
EBIDTA                        1755             1327       + 32%
EBIDTA Margin                  24%              21%    +319 bps
Profit Before Tax (PBT)       1644             1223       + 34%
Profit After Tax (PAT)        1073              791       + 36%
EPS (Rs)                      21.91            16.13      + 36%



                                      Growth Story Continues
OB up to Q3FY0910      Power       Industry      Exports
     (Rs Cr) 36,425         28425        7557           967


   Rs.5564 Cr order for 3x660 MW Bara, Pryagraj PGCL, JP Group
   Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Amaravati
   Rs.2486 Cr order for 2x600 MW PIPAVAV Energy Pvt. Ltd
   Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Nasik
Industry Segment contribution to
                                                     •   Transformers
   total Turnover: 25-27%
                                                     •   Switchgear
                                                     •   Indl. Control Gear / Control Panels
                                   Transmission,     •   Capacitors
                                       7.6%          •   Insulators
                                                     •   HVDC/ Transmission Projects


                                   Transportation,   •   Traction machines
                                        3.6%         •   Traction Control gears
                                                     •   DESL
                                                     •   AC Locos / DG Sets / Other


                                     Other Indl.
                                                     •   Industrial Machines
                                   Products, 12.8%
                                                     •   Indl. TG / Boiler Sets
                                                     •   Compressors
                                                     •   Oil Field Equipment
                                                     •   Valves
                                                     •   Others
   A major manufacturer of power plant equipment for various
    fuels
   Fully indigenized technology up to 600 MW from world
    leaders
   Supplies Steam turbines, generators, boilers and matching
    auxiliaries up to 800 MW ratings including supercritical sets
    of 660/800 MW
   307 coal based sets installed, including 35 sets of 500 MW
    rating
   365 nos. BHEL make Hydro Utility sets installed in the country

                                            BHEL is fully geared up
                                               to meet demand for
                                           Power Plant Equipments
                                                    in the Country.
Thermal
                      33298
                       41%
             BHEL
Ordered on   43913
  Others      54%
  36097                                   Hydro
   45%                                    6142
                                           8%

                                Gas   Nuclear
                               3973    500
                                5%      1%
1. Building
                         Capacities &
                         Capabilities
    7. Allied                              2. Technology
      Enablers                               Competencies


                           Drivers
6. Global Forays                              3. Marketing
                             of
                                                Innovations
                           Growth


     5. Emerging                        4. Supply Chain
       Opportunities                      Agility
Manufacturing Capacity
                      Enhancement
                      •15 GW by Mar 2010
                      •20 GW by Mar 2012
Bridging Skill
Deficit                                        Human Resource
•Leveraging WRI                                •+8500
 Trichy to train             Building           Employees
 high pressure              Capacities &        during 2007-09
 welders of                 Capabilities       •Momentum to
 contractors                                    Continue
•Joint stake in ITI
 Shantiniketan WB
                      Inorganic Growth
                      •BHPV-100% Subsidiary
Technology Edge
SUPERCRITICAL TECH
                                          •270/525/600 MW sub-
                                           critical sets introduced
Orders Received for:
                                          •R&D in FY09 Rs. 690 Cr
•2x800 MW Boilers for
                                          •Advance Class Gas Turbines
 Krishnapatnam                             tech in place

•2x660 MW for Barh-                       •TCA with Sheffield
                            Technology     Forgemasters UK for
 II, NTPC                  Competencies    Forgings

•3x660 MW                                 •765 & 1200 KV-
                                           development being pursued
 Bara, Pryagraj PGCL, JP                  •Transportation-IGBT
                                           technology being pursued
 Group
                                          •Sole supplier in world for
                                           420 kN/320 kN porcelain
                                           insulators for ±800 kV HVDC
                                           lines
JV for 2x800 MW project each with TNEB and MPPGCL

Marketing    JV for 3x800 MW projects with KPCL
Innovation   MoU with Mahagenco for 2X660 MW plant
             at Latur, Maharashtra

             Partnerships forged with NTPC, KEL & HEC
             for strengthening the supply chain
             Enhancing Vendor base for Raw Materials &
Supply
             Balance of Plant (BOP)
Chain
             Advance Manufacturing Action (AMA)
Agility
             IT Application: Reverse Auction, e-Procurement, SAP/ERP
Nuclear                       Solar        Transportation   Transmission



•Steam generators for new rating 700     •MoU with        •MoU with       •JV route
  MWe Nuclear sets                        BEL for          GE for          covering
• MoU with NPCIL- formation of JV for     formation        Diesel          Transformer
  conventional island of Nuclear Proj.    of a JV to       Electric        GIS
  Technology tie-ups being explored       address          Locos &         ACBs
  for 700 Mwe & above TG sets             Solar            mfg. of         etc.
•MoU with GE-Hitachi for cooperation      Photovoltaic     propulsion
  in Nuclear island equipment for         business         systems
  Power plants to be set up by NPCIL




                          Emerging Opportunities
   Physical export orders of Rs.3,265 Crore in
    2008-09 - from 22 countries
   Presently executing 40 contracts in 25
    countries
   Forays in new markets – Belarus, Senegal,
    Rwanda & new market segments in Syria,
    Tajikistan, Japan, Nigeria
   LT business tie-up: 6 year Rate Contract for
    126 MW rated Gas Turbine Generating Sets
    from Oman – one of its kind in world
   MoU signed with TGR, Hungary for exploring
    opportunities for conventional boilers and R&M
    of boilers in European and CIS countries


                Global Forays
•Highest ever (92%) pvt sector orders inflow of Rs 25,917
                   Cr/ 11,819 MW in Power Sector up to Q3FY10
                  •Highest value order of Rs 2,005 Cr in Industry Sector
 Customer          business from Hindalco for 6x150 MW BTG for Mahan (MP)
 Confidence       •First ever order for generator transformers for 800 MW
                   sets & also largest rating to be installed in India, for
                   Mundra UMPP, reinforcing technology & market leadership
                   in transformers




Site Capability   • Deploying additional Tools & Plants like heavy lift cranes
 Enhancement        suitable for erection of 800 MW, 500 MW, 250 MW Boilers




                     Allied Enablers
91,900 Cr.
                              (2016-17)
             45,000 Cr.
             (2011-12)

                          Capability & Capacity Enhancement
18,739 Cr.
(2006-07)
             Investment     Globalization     Spares &          R&D             HR
                                              Services
              Rs.4200           Export                        Spend to      Manpower to
               Crores        revenues to     Revenues to    increase by 6    grow from
                            increase by 6     grow by 4        times to      42,000 to
                               times to        times to     Rs.900 Crore     50,000 by
                            Rs.6700 Crore   Rs.4700 Crore                     2011-12
AA:PLD:56::06.02.10

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BHEL Presentation DSP Merrill Lynch 08 Feb10

  • 1. At DSP Merrill Lynch 14th Annual India Investor Conference 8th February 2010 New Delhi
  • 3. A US$6 billion Engineering & Manufacturing enterprise of its kind in India  A ‘Navaratna’ company and a Major Integrated Power Plant Equipment Manufacturer in the World  Profit Making Company since 1971-72  Consistent Dividend Paying Company for over thirty years (FY 1976-77 onwards)  References in over 70 countries  Installed base of more than 1,00,000 MW
  • 4. Power Transmission Single Source for Multiple Industry Transportation Solutions of Infrastructure & Industrial Oil & Gas NCES Sectors of the Economy
  • 5. ( As on 31st Dec’09 )
  • 6.
  • 9. Rs. crore Total Order Book as on 31.12.09: Rs. 1,34,000 crore
  • 10. (Rs. Crore) Parameter Q3 FY0910 Q3 FY0809 YoY % Turnover 7381 6445 + 15% EBIDTA 1755 1327 + 32% EBIDTA Margin 24% 21% +319 bps Profit Before Tax (PBT) 1644 1223 + 34% Profit After Tax (PAT) 1073 791 + 36% EPS (Rs) 21.91 16.13 + 36% Growth Story Continues
  • 11. OB up to Q3FY0910 Power Industry Exports (Rs Cr) 36,425 28425 7557 967  Rs.5564 Cr order for 3x660 MW Bara, Pryagraj PGCL, JP Group  Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Amaravati  Rs.2486 Cr order for 2x600 MW PIPAVAV Energy Pvt. Ltd  Rs.2889 Cr order for 5x270 MW ELENA PIL (India Bulls), Nasik
  • 12. Industry Segment contribution to • Transformers total Turnover: 25-27% • Switchgear • Indl. Control Gear / Control Panels Transmission, • Capacitors 7.6% • Insulators • HVDC/ Transmission Projects Transportation, • Traction machines 3.6% • Traction Control gears • DESL • AC Locos / DG Sets / Other Other Indl. • Industrial Machines Products, 12.8% • Indl. TG / Boiler Sets • Compressors • Oil Field Equipment • Valves • Others
  • 13.
  • 14. A major manufacturer of power plant equipment for various fuels  Fully indigenized technology up to 600 MW from world leaders  Supplies Steam turbines, generators, boilers and matching auxiliaries up to 800 MW ratings including supercritical sets of 660/800 MW  307 coal based sets installed, including 35 sets of 500 MW rating  365 nos. BHEL make Hydro Utility sets installed in the country BHEL is fully geared up to meet demand for Power Plant Equipments in the Country.
  • 15. Thermal 33298 41% BHEL Ordered on 43913 Others 54% 36097 Hydro 45% 6142 8% Gas Nuclear 3973 500 5% 1%
  • 16.
  • 17.
  • 18. 1. Building Capacities & Capabilities 7. Allied 2. Technology Enablers Competencies Drivers 6. Global Forays 3. Marketing of Innovations Growth 5. Emerging 4. Supply Chain Opportunities Agility
  • 19. Manufacturing Capacity Enhancement •15 GW by Mar 2010 •20 GW by Mar 2012 Bridging Skill Deficit Human Resource •Leveraging WRI •+8500 Trichy to train Building Employees high pressure Capacities & during 2007-09 welders of Capabilities •Momentum to contractors Continue •Joint stake in ITI Shantiniketan WB Inorganic Growth •BHPV-100% Subsidiary
  • 20. Technology Edge SUPERCRITICAL TECH •270/525/600 MW sub- critical sets introduced Orders Received for: •R&D in FY09 Rs. 690 Cr •2x800 MW Boilers for •Advance Class Gas Turbines Krishnapatnam tech in place •2x660 MW for Barh- •TCA with Sheffield Technology Forgemasters UK for II, NTPC Competencies Forgings •3x660 MW •765 & 1200 KV- development being pursued Bara, Pryagraj PGCL, JP •Transportation-IGBT technology being pursued Group •Sole supplier in world for 420 kN/320 kN porcelain insulators for ±800 kV HVDC lines
  • 21. JV for 2x800 MW project each with TNEB and MPPGCL Marketing JV for 3x800 MW projects with KPCL Innovation MoU with Mahagenco for 2X660 MW plant at Latur, Maharashtra Partnerships forged with NTPC, KEL & HEC for strengthening the supply chain Enhancing Vendor base for Raw Materials & Supply Balance of Plant (BOP) Chain Advance Manufacturing Action (AMA) Agility IT Application: Reverse Auction, e-Procurement, SAP/ERP
  • 22. Nuclear Solar Transportation Transmission •Steam generators for new rating 700 •MoU with •MoU with •JV route MWe Nuclear sets BEL for GE for covering • MoU with NPCIL- formation of JV for formation Diesel Transformer conventional island of Nuclear Proj. of a JV to Electric GIS Technology tie-ups being explored address Locos & ACBs for 700 Mwe & above TG sets Solar mfg. of etc. •MoU with GE-Hitachi for cooperation Photovoltaic propulsion in Nuclear island equipment for business systems Power plants to be set up by NPCIL Emerging Opportunities
  • 23. Physical export orders of Rs.3,265 Crore in 2008-09 - from 22 countries  Presently executing 40 contracts in 25 countries  Forays in new markets – Belarus, Senegal, Rwanda & new market segments in Syria, Tajikistan, Japan, Nigeria  LT business tie-up: 6 year Rate Contract for 126 MW rated Gas Turbine Generating Sets from Oman – one of its kind in world  MoU signed with TGR, Hungary for exploring opportunities for conventional boilers and R&M of boilers in European and CIS countries Global Forays
  • 24. •Highest ever (92%) pvt sector orders inflow of Rs 25,917 Cr/ 11,819 MW in Power Sector up to Q3FY10 •Highest value order of Rs 2,005 Cr in Industry Sector Customer business from Hindalco for 6x150 MW BTG for Mahan (MP) Confidence •First ever order for generator transformers for 800 MW sets & also largest rating to be installed in India, for Mundra UMPP, reinforcing technology & market leadership in transformers Site Capability • Deploying additional Tools & Plants like heavy lift cranes Enhancement suitable for erection of 800 MW, 500 MW, 250 MW Boilers Allied Enablers
  • 25. 91,900 Cr. (2016-17) 45,000 Cr. (2011-12) Capability & Capacity Enhancement 18,739 Cr. (2006-07) Investment Globalization Spares & R&D HR Services Rs.4200 Export Spend to Manpower to Crores revenues to Revenues to increase by 6 grow from increase by 6 grow by 4 times to 42,000 to times to times to Rs.900 Crore 50,000 by Rs.6700 Crore Rs.4700 Crore 2011-12