BHEL inks 10-year MoU with Nuovo Pignone for fertiliser sector

11 Apr 2025 , 09:00 AM

Bharat Heavy Electricals announced that it has signed a strategic Memorandum of Understanding (MoU) with Italy-based Nuovo Pignone International s.r.l. to jointly address compressor revamp opportunities in the Indian fertiliser sector.

The MoU was entered on April 9, 2025. The agreement shall remain in force for a period of 10 years unless extended by mutual consent. Under the agreement, BHEL shall be the lead bidder for targeted compressor train revamp projects in India. On the other hand, Nuovo Pignone will serve as the nominated vendor with a defined scope of work.

The agreement does not include any transfer of equity of setting up a new venture, and no upfront consideration is involved. With this collaboration, BHEL may benefit from compressor revamp projects with an estimated ~50% business share in financial terms. This shall improve its presence in the fertilizers sector’s repair and maintenance segment.

For the quarter ended December 2024, the company reported a net profit of ₹124 Crore, up by 170% year-on-year against ₹124 Crore. The company’s revenue for the quarter registered a growth of 32% against the previous year at ₹7,277 Crore.

The company reported an EBITDA of ₹304 Crore, registering a growth of 40% on a year-on-year basis to ₹304 Crore.

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