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Order Book
The company’s order book stands at Rs.1000 crore which is about 3 times its FY2008 revenue.

Forecast
1. Currently, most steel companies have undertaken expansion at their existing facilities or are setting up new projects.
    According to estimates, the steel capacity in the country will almost triple in view of new capacity additions of about 120
    million tonne planned during the FY07-14.
    This expansion will get huge benefits for companies like TRF.
2. Tata Steel has proposed to add 10 million tonne of new capacity at Jamshedpur, which if commissioned in the phased
    manner (three million tonnes initially) will offer a project of worth Rs.2500 crore. This offers a lot of opportunity for material
    handling equipments for TRF.

Mining Forecast
The company also generates about 25 per cent from the mining and port segment. The total traffic handling capacity of the ports is expected to be doubled at 1,492 million tonnes over the next four to five years. Also, with the opening up of the vast steel and power companies, the same benefits for companies like TRF.

Lagging Points
The expansion plans of steel companies may face hurdle for acquiring land, getting iron ore and so on.

It’s involvement in power sector
1. TRF, which generates about 50 per cent of its revenue from the power sector and has strong engineering capability and
    product lines such as plants, should be the key beneficiary for emerging growth opportunities in power sector.
2. Company is being selected as key contender for the material handling equipments required for the 4,000 mw Mundra
    UMPP (Tata Power) power project. The work is expected to be awarded over the next three-four months.
3. Similarly, there are lots of opportunities in the power sector; material handling equipment is used in coal power plants.
    According to estimates, about 62 per cent of the 78,577 mw to be added during the 11th plan (2008-12) is already in
    progress. Announcements for another 82,200 mw to be added during the 12th plan should start soon, if target are to be
    achieved. Overall, during FY07-14, about 87,000 mw of thermal based new power capacity would be added, which is
    significant and offers a huge opportunity for the material handling business. Considering about 9-10 per cent is spent
    towards material handling, it works out to an opportunity of about Rs.31,000-35,000 crore. Even if 70 per cent of the
    projected new capacity is achieved, it translates into an opportunity of Rs.22,000-24,000 crore for material handling
    equipment and services.

Available in Auto Parts
1. Recently, the company acquired 51 per cent stake in the Singapore based, York Transport Equipment. This company
    specializes in the production of trailer under gear systems (hydraulic suspension, gears, etc), with marketing presence
    in 27 countries. The acquired company is expected to contribute about Rs.170 crore to the consolidated FY09 revenue
    and about Rs.5.6 crore to net profit. Besides, the contribution to financials, York Transport also provides access to
    technology. The company is currently having a manufacturing capacity of about 60,000 axles per annum.
2. TRF will establish a new manufacturing capacity in India to cater to the domestic capacity trailer market. This new
    facility will have a manufacturing capacity of 25,000 axles in FY09 and another 75,000 capacity will be added over the
    next two years. The combined capacity is expected to be about 150,000 axles per year FY10. A part of this domestic
    capacity of 100,000 axles (about 30-40 per cent) would be supplied to the Tata Motor, with the balance to be sold in the
    domestic market.

Auto Parts Forecast
Currently, the size of the market is about 25,000-30,000 trailers or about 80,000 axles per year. Broadly, at Rs.1.5 lakh per set of axle (one set includes three axle in a trailer) the revenue works out to about Rs.500 crore, which should fully reflect in FY10.

Overall
As TRF is part of TATA group, and as TATA is having presence in steel, power and mining, TRF is going to get huge benefits in future from tata steel, Tata power and its other related companies.

Latest Updates

(19 Feb 2009)
TRF bagged an order worth Rs 997.48 million
TRF bagged an order worth Rs 997.48 million from Andhra Pradesh Power Generation Corporation (APPGC), for setting up the coal handing plant for its Rayalaseema Thermal Power Project, stage-III, unit - 5 (1 X 210 MW).
The company provides equipment and services to the infrastructure sectors of the economy such as steel, mining, power and ports.
It manufactures bulk material handling and processing equipment, bulk material handling systems, coke oven equipment, coal dust injection systems for
blast furnaces, coal beneficiation systems, and port and yard equipment. EPC and EPCM services are also provided.

About company
1. The company is India’s largest power equipment manufacture and its current order book stands
    at 91,400 crore which is over four times its FY2008 turnover.
2. BHEL manufactures over 180 engineering products having different applications mainly in power
    generation, transmission and transportation. The company is playing the major role in current
    ongoing investment in the power sector by the Indian government.
3. BHEL has recently bagged few prestigious orders from the Hindustan Zinc and Mittal Refinery.
4. Analysts estimate that the company could end FY09 with total outstanding orders of about
    Rs.128, 000 crore, which is about six times its FY08 revenue. This also provides higher visibility
    in revenue and earnings till FY11.
5. On the back of higher order book and commissioning of new capacities, the company is
    estimates to witness revenue growth of about 30 per cent in FY09, and about 25 per cent in the
    FY10.

Company Order book
1. According to estimates, out of the total capacity addition of 78, 000 in the 11th Five Year Plan,
    orders for about 70-75 per cent have been placed. The orders for the remaining are expected to
    flow till the December 2009, translating into more opportunities for the company.
2. The capital outlay for EPC work (equipments and the balance of plant work) for the remaining
    capacities could be in the range of Rs.55, 000-60, 000 crore.
3. For the 12th Five Year Plan (capacity addition of 82, 000 mw) has started to flow in, the
    company is expecting new orders to the tune of Rs.40, 000-50, 000 crore in FY09.
4. Over the next 12 months, the projects of about 18, 000 mw based on the super critical
    technology will be announced, where BHEL has scaled up its capabilities and hence, stands a
    good chance to secure some of these.
5. The strong current order book and healthy long term outlook on the back of strong demand for
    power equipment, the stock should see a good upside.
6. Also, as the company is making its efforts to scale up its other businesses (such as
    transportation) and diversification in the oil rigs will further boost growth rates.

Expansion plan
1. Considering the piling order book and higher demand for power equipments, the company is
    gradually raising its capacities and upgrading technologies.
2. Also, the company is extending its capability for higher rating (mw) hydro sets and advanced
    class Gas turbines to cater to upcoming market requirements.
3. The company already increased its manufacturing capacity from 6,000 mw to 10,000 mw in
    December 2007, which is now fully operational.
4. Under the second phase of expansion, the company is adding another 5,000 mw of capacity,
    which will start contributing in phases from December 2009.
5. Additionally, the acquisition of BHPV (Bharat Heavy Plates and Vessels) will help increase the
    execution capability of BHEL by about five per cent in FY09 and by 10-12 per cent in the later
    years.
6. BHEL joint venture with NTPC will also enhance its execution capabilities.

Latest Updates

(24 Dec 2008)
BHEL wins Rs 2,100 cr order for 1,000 Mw power plant in Maharashtra
Bharat Heavy Electricals (BHEL) has bagged two orders for the supply and installation of the main plant equipment for Mauda Super Thermal Power Project (STPP) in Maharashtra in an international competitive bidding. Cumulatively valued at around Rs 2,100 cr, the contracts have been placed on BHEL by NTPC for setting up the 1000 mega watt steam generator and steam turbine generator packages at Mauda STPP, located in Nagpur. These units will add 24 mn units every day to the grid on commissioning.

"The orders were won by BHEL under international bidding, as its offers were found techno-economically the best. With these orders, NTPC has once again reposed confidence in BHEL's proven technological excellence and capability in executing projects of this magnitude," said the company in a statement.

BHEL’s scope of work in the contracts involves design, engineering, manufacture, supply and erection and commissioning of Steam Generators and Turbine Generators along with Associated Auxiliaries, Electrostatic Precipitators and state-of-the-art Controls and Instrumentation. The key equipment for the contracts will be manufactured at BHEL’s Haridwar, Trichy, Ranipet, Hyderabad, Bangalore, Bhopal and Jhansi Plants. The company’s Power Sector - Western Region will undertake erection and commissioning of the equipment.

BHEL manufactured sets are already operating at NTPC’s other projects in Singrauli, Korba, Ramagundam, Farakka, Vindhyachal, Simahadri, Rihand, Sipat, Kahalgaon, Talcher and Unchahar, said the company

(22 Dec 2008)
Bhel bags $247-million power plant contract
Bharat Heavy Electricals said on Monday that it had won a contract worth Rs 1,175 crore ($247 million) from Jaiprakash Power Ventures to set up a 500-megawatt thermal.

(14 Jan 2009)
BHEL ink pact with Karnataka Power Corporation to form JV co
Bharat Heavy Electricals (BHEL) has announced that it has inked a pact with Karnataka Power Corporation (KPC) for setting up joint venture company to build, own and operate two plants at Raichur Karnataka.

These include, 2X660/800 mega watt (MW) coal based supcritical power plant at Yeramarus and 1X660/8OO MW coal based superitical power plant at Edlapur, the company disclosed.

(16 Jan 2009)
BHEL-built solar panel part of Isro's first satellite export
State-run Bharat Heavy Electricals Ltd has a reason to cheer as the Indian Space Research Organisation successfully launched its first satellite-export project for EADS-Astrium of Europe, equipped with solar panels build by the public-sector power-equipment manufacturer.

"BHEL has manufactured and supplied Space Grade Solar Panels to ISRO for their first satellite-export project for EADS-Astrium of Europe," a BHEL statement today said.
The satellite, equipped with the BHEL-built Solar Panels, was successfully launched by the European Ariane-5 launch vehicle from French Guyana.
Meanwhile, the company is close to finalising the joint venture partner for manufacturing nuclear forgings. BHEL's current orderbook stands at Rs 45,000 crore.
The power-equipment maker would investing Rs 10,000 crore in the current five-year plan on organic expansion, of which Rs 2,000 crore has already been spent.
The company has also received board approval for investing Rs 4,800 crore in expansion in the financial year 2009-10.
BHEL has recently won a Rs 2,100-crore order from NTPC for setting up two 500-MW units of steam generator and steam turbine generator packages at the latter's Mauda Super Thermal Power Project in Nagpur.
source - businessstandard

(09 Feb 2009)
BHEL bags multiple projects worth Rs 7,000-cr
State-run Bharat Heavy Electricals (BHEL) today said it has received four contracts worth Rs 7,000 crore from various producers, including NTPC.

BHEL's scope of work in the contracts include design, engineering, manufacture, supply, erection and commissioning of the plant package.

"BHEL has bagged four major contracts from various customers for the supply and installation of equipment for thermal power projects," a company statement said.

The contracts have been placed on BHEL by NTPC, NLC Tamil Nadu Power (NTPL) and Mahagenco. NTPC has placed orders for steam generator packages for the 2x500 Mw Super Thermal Power Project each in Madhya Pradesh (Vindhyachal) and Uttar Pradesh (Rihand).

NTPL has placed order for setting up 2x500 Mw thermal power plant in Tamil Nadu (Tuticorin).
The key equipment for the contracts will be manufactured at

BHEL's Haridwar, Trichy, Ranipet, Hyderabad, Bangalore, Bhopal and Jhansi plants.
The company plans to build equipments that can generate up to 15,000 Mw of electricity by the end of this year.
source - businessstandard

(23 Feb 2009)
BHEL bagged order for the main plant package at the upcoming Malwa Thermal Power Project
Once again outbidding Chinese equipment suppliers under International Competitive Bidding (ICB), Bharat Heavy Electricals (BHEL) has won an order for the main plant package at the upcoming Malwa Thermal Power Project (TPP) in Madhya Pradesh, involving two new-rating units of 600 MW each.

Valued at Rs 31,500 million, the order for the greenfield power project has been placed on BHEL (Q, N,C,F)* by Madhya Pradesh Power Generating Company (MPPGCL).

Significantly, in Madhya Pradesh, this is the first order secured by BHEL for the new-rating units of 600 MW and is a testimony to the customer`s confidence in the company`s technological excellence and capability in executing projects of this magnitude. This project will significantly augment the existing generating capacity in the state of Madhya Pradesh.

BHEL`s scope of work in the contract includes design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators, boilers and associated auxiliaries, including transformers, busducts and state-of-the-art controls and instrumentation, in addition to civil works for the main power block.

While the first set is scheduled to go on stream in a tight schedule of 39 months, the second set will be commissioned in 43 months from the zero date of contract.

BHEL has fully established state-of-the-art technology for the manufacture of thermal sets up to 1,000 MW rating suited to Indian conditions using Indian as well as imported coal. The company has also introduced new rating thermal sets of 270 MW, 525 MW and 600 MW to meet customer demand and orders for 85 numbers of 500-600 MW rating sets have been won by the company, so far.

BHEL is building capacity and capability to contribute fully for meeting the power forecast for the 11th plan and beyond. For this, the company has enhanced its manufacturing capacity to 10,000 MW per annum which is being further enhanced to 15,000 MW per annum by December 2009 and to 20,000 MW by December 2011. Manpower is also being ramped up in a commensurate and timely manner. Besides, the company has taken steps like shift in operational focus from product to project and implementation of effective project management systems.

Globally, the demand for coal and gas continues to increase as they are used as prime source as fuel for generating power. But due to the rising cost limited supply and environmental concerns these resources are forcing the world to look at alternative ways to generate electricity and provide a green world. Alternative sources like wind, solar etc. are going to be used, globally, to generate electricity.
Suzlon an Indian based company is stands at top 5 in the world for manufacturing wind turbines to generate electricity.

Returns
Its current price is Rs.39.45, which is down almost 60 - 70% from its 52 week high. (It went down till Rs.33.05)
Taking into consideration long term prospective like 3 to 5 years or 4 to 7 years the stock will provide excellent returns.

Taking into consideration Rs.33.05 as buying price following are the returns
202% Target acheived in month of 19 May 2009. It went high till Rs.99.90 (Update - 22 May 2009)

About company
1. Suzlon energy which combined with Germany based REpower, is considered to be the third largest wind power solutions
    provider globally.
2. The company has a fully integrated business, which provides consultancy, site development, design, manufacturing and
    maintenance services, in the wind power space.
3. Globally wind power is a big market, the company has been continuously spreading its reach and manufacturing facilities,
    and as a result it is now present across different markets including fast growing ones like US, Europe and China.
4. Suzlon is also establishing forging and foundry capacities in India.
5. The company also maintained its leadership in India with around 58 per cent market share.

Revenue growth
The growing presence in other markets and favourable industry trend is also reflected in the company’s strong revenue growth, consolidated turnover (including acquisitions) grew at a CAGR of 91.6 per cent from Rs.1,942 crore in FY05 to Rs.13,679 crore in FY08.

Expansion plans
1. In India the potential of wind power is pegged at 45,000 mw as compared to the current installed capacity of about 8,000
    mw.
2. Suzlon is increasing its equipment manufacturing capacities from 2,700 mw currently to 5,700 mw, which will be fully
    functional by March 2009.
3. The company’s earlier acquisition REpower will be leveraged in many ways including widening the product portfolio,
    improving technological capabilities and enhancing presence in various global markets (especially Europe and China).

Company’s acquisition
1. Suzlon acquired Hansen Transmissions (with 71.3 per cent stake), a manufacture of gear boxes, which is a key component
    used in wind turbines generators (WTG).
2. Hansen is increasing its capacities significantly from 3,600 mw to 14,600 mw; new facilities in India and China are expected
    to be commissioned by September 2008 and September 2009, respectively.
3. Note - The Company believes that its in-house component manufacturing and forging and foundry capacities will help in
    lowering WTG manufacturing costs and reduce execution time.

Conclusion
1. The Suzlon has strong order book of 3039.5 mw (megawatt) of Rs.16491 crore which provides good growth prospects going
    further.
2. Considering the robust outlook in wind power, in India as well as globally, the suzlon should get benefited in long run.

Latest Updates

(25 Feb 2009)
Suzlon bagged order from AGL, Australia
Suzlon Energy announced that Suzlon Energy Australia (P), a step-down wholly owned subsidiary of Suzlon Energy has entered into an agreement with AGL Energy, Australia`s largest integrated energy company, for supply of 54 units of Suzlon`s S88-2.1 MW wind turbine generators translating to
113.4 MW capacity in Australia in 2009.

The company swung to loss for the quarter ended December 2008. During the quarter, the company reported loss of Rs 3,909.30 million compared with
a profit of Rs 3,381.80 million in the same quarter last year.

Net sales declined 9.26% to Rs 15,017 million, while total income for the quarter fell 8.20% to Rs 15,450.90 million, when compared with the prior year
period.

(30 Dec 2008)
Suzlon raises stake in REpower to 73.71%
Suzlon Energy Ltd has acquired the first tranche of Martifer Group's stake in REpower Systems AG, Germany for approximately Euro 65 million. The transaction takes Suzlon's holding in REpower to 73.71 per cent.

Suzlon already holds 91% voting rights in REpower through an existing agreement with Martifer.

Earlier this month, Suzlon and the Martifer Group entered into an agreement on a revised payment schedule for Martifer's 22.4 per cent stake in REpower.
As per the new terms, Suzlon acquires the stake in three tranches by payment of Euro 65 million in December 2008, Euro 30 million in April 2009, and the final tranche of Euro 175 million in May 2009, which will take Suzlon's ownership level to approximately 91 per cent in REpower.