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[dudette]

With 14 plants & 8 service centers, BHEL is India's dominant producer of power & industrial machinery. It has fully established technology to produce coal sets of up to 1,000MW & advanced-class gas turbines. Sets produced by BHEL account for 65% (77GW) of India's installed power capacity (118GW) and given their reliability, generate 73% of India's power. The government holds 67.7% equity in BHEL.

We expect BHEL to outperform in many years to come as the co.
a) addresses Chinese competition,
b)gets super-critical orders in FY08, and
c) looks to improve competitiveness through operating leverage - ~50% capacity expansion with <10% rise in labor.