Mumbai: Public sector power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) has targeted $10 billion in overseas business in its 'Strategic Plan 2012' against its current annual exports worth $4 billion.

The company is looking at exports as a key growth-driver, targeting a seven-fold increase in physical exports from the current levels, the company said in a statement.

BHEL, which plans to position itself as a regular engineering procurement construction (EPC) contractor in the international market, is also looking at the merger and acquisition (M&A) route for inorganic growth in the international markets.

The company, with outstanding physical export orders worth over $1 billion, has recorded a 49.25 per cent increase in fresh contracts at Rs 1,903 crore in 2006-07.

These include orders from Bangladesh, Jordan, Oman and Tajikistan, BHEL said, adding that it had annual contracts of an average Rs 1,275 crore in the last five years.