BILPOWER entering Transmission & Distribution
BILPOWER entering Transmission & Dis= tribution
Bilpower Ltd has announced the following:
The Company is qualified as the “Turnkey Contractor” for the EPC Business in the Transmission and Distribution Segment of Power Sector by Maharashtra State Electricity Distribution Company Ltd (MSEDCL).
In view of the same, the Company proposes to venture into Transmission & Distribution turnkey contracts.
The Company is in the midst of setting up “Manufacturing activities for Motor Stampings at Village Kanchad, Taluka Wada, expected to commence the trial production by end of November 2007
Bilpower is likely to sign a joint venture deal with NTPC, which is likely to be finalised in three months, reports CNBC-TV18 quoting sources. The joint venture will add Rs 500 crore to the company’s topline annually. The JV deal may take place via its subsidiary called Tarapur Transformers, sources said.
Bilpower management, however, has declined to comment on market rumours.
CNBC-TV18’s Research Analyst Haresh Soneji said that it may not be premature to the extent of assuming the deal and the joint venture will happen through Bilpower’s 100% subsidiary, Tarapur Transformers.
“This venture will provide transformers - OEMs to NTPC. So they will be the sole suppliers, OEM manufacturers or it will be through a contract route. We will have to wait and see what happens,” he said.
He continues, “This will lead to about Rs 500 crore addition to the topline of the subsidiary. But it’s a low margin business, so volumes will be higher, but the bottomline will add little.”
Also the company is in the process of setting up private accredited research laboratories, at this point in time they are only government bodies, which are allowed to have such labs. But now it has received an in principle approval from the government, so that will add an additional 20% to the bottomline.