B. Prasada Rao in New Delhi on Thursday. Picture by Rajesh Kumar

New Delhi, April 1: Power equipment maker Bhel today said it was eyeing a turnover of $10-$11 billion by 2011-12 because of increased demand.

The company is ramping up its capacity to 20,000MW by next fiscal.

“The company is on track to become a $11-billion firm by 2011-12 in line with its strategic plans. It will also raise its capacity to deliver power up to 20,000MW by next fiscal from 15,000MW now,” Bhel chairman and managing director B. Prasada Rao said.

However, the state-owned entity faces stiff competition from Chinese and other firms.

“As the market is growing, some part of it will be taken by other players, but we expect to maintain our leadership position,” Rao said.

India plans to add 78.7 gigawatts of power generation during the five years ending March 2012.

Rao announced a quantum jump of about 37 per cent in net profit for 2009-10 at Rs 4,287 crore compared with the previous fiscal.

“The company’s net profit rose to Rs 4,287 crore in 2009-10 against Rs 3,138 crore in the previous financial year. With such a strong base, we have planned to recruit 4,000 personnel this fiscal,” Rao said.

The company has received orders worth Rs 59,031 crore in 2009-10 against Rs 59,678 crore in the previous fiscal. It recorded the highest-ever order from the private sector for 14,689MW capacity.

The company’s finance chief, C.S. Verma, said the firm expected to “maintain or accelerate” its profit margin in 2010-11.

Bhel is targeting a turnover of Rs 39,500 crore in the current fiscal.

Bhel has earmarked a capital expenditure of Rs 1,700 crore in the current fiscal, which will be funded through internal resources, Rao said.

The PSU firm was eyeing a share in the civilian nuclear energy market, which is worth $150 billion.

It will soon announce its partner for the nuclear business.