New Delhi: BHEL is in quest of mergers and acquisition (M&A) in order to encourage inorganic expansion and targets earning of Rs 45,000 crore by the next five years (2012).

At the shareholders conference, A K Puri, BHEL Chairman and Managing Director said, the company has drawn what it names “Strategic Plan 2012” to make sure sustainable profitable development over the next five years with the aim of achieving an earning level of Rs 45,000 crore.

Mr. Puri added that mergers and acquisitions path will be followed to benefit inorganic growth chances in order to broaden the company’s functioning both in domestic plus export markets.

Delineating the company’s future path, Mr. Puri stated that the growth planks for the next five years will be driven by capacity and capability improvement, which will influence the company’s hard work in its core area of power backed by trade, transmission, exports and spares and services businesses.

Riding on the robust demand, BHEL’s turnover hit a record high of Rs 18,739 crore, recording an increase of 29 per cent, whereas net profit zoomed by 44 per cent to Rs 2,415 crore in 2006-07.

He also announced a final dividend of 60 per cent on the improved paid-up share capital resulting to 1:1 bonus issue.

The company paid the highest ever dividend of about Rs 600 crore for 2006-07 that is 245 per cent of the paid-up capital pre-bonus, added Mr. Puri.