Description
It explains talks about Industry Trends of Heavy electrical industry, PEST Analysis of heavy electrical industry, Competitor Analysis, SWOT analysis, Company Description, General Information about BHEL, it's Finance performance, SWOT analysis BHEL and Various Strategies employed.
“Bharat Heavy Electrical Limited” Industry analysis:
Industry Trends: In Heavy Electrical Industry in India the majority of the market capitalization is done by PSU. Around 75% of the Power produced in India comes from equipments supplied by BHEL. Indian companies do not export a lot of quantity since they focus mainly on Indian markets. When you compare globally the products in India might function at par but finishing is not upto the mark. In such sectors if you leave aside big players others focus less on branding and marketing. Customer orientation is also low. Even though economy has slowed down, the fact that India is a developing country and its population is growing the demand for energy & infrastructure will keep going. This has made companies to invest in R&D to stay ahead of the competition once the economy picks up.
India has also interested companies from outside like Toshiba who has done a Joint Venture with JSW group. Shanghai Electricals signed a contract with Reliance Power for supplying for their three power plant projects. Alstom has got government approval to form Joint Ventures with Bharat Forge Global trends: In the wake of growing environmental crisis & depletion of resources Current trends globally have been to research on renewable sources like US& UK is spending a lot on Solar Energy technology. Germany has been shifting from traditional heavy Engineering to green technology. In India BHEL has come up with regenerative braking system for our trains which aims at reducing emission.
PEST analysis of the Industry in India:
Political: 1) For PSU the moment government changes the policies also change and the decision are also influenced by the current leadership. 2) For global projects this sector gets influenced by international policies. 3) Government Policies for their customers also affects their business.
4) Environmental policies like safe disposing of manufacturing waste, keeping the air pollution coming from the plants under check, using various technologies is a must now a days. 5) All the companies in this sector need to strictly adhere to legal rules & regulation like quality management & environmental standards etc. 6) Removal of Tariff protection on capital goods. 7) Lowering the custom duties on certain equipments. 8) Delicensing of capital goods and allowance of 100% FDI.
Economic: 1) In a developing country like India where power, infrastructure is the need of the hour, there is a huge scope for such an Industry. 2) Growth of Industries has also helped this sector. 3) Many International companies are starting Joint ventures in India since opportunities are many; this will help to grow the economy as well as built health competition.
Social:
1) As the population keeps increasing the demand for energy increase, need for development increase these factors are also helping the industry grow. 2) Due to growing health & environment concerns, companies are now working towards efficient and safer operations.
Technology: 1) Inspite of Economic slow down companies are Investing a lot on R&D facilities so that once the economy picks up then can stay ahead with new technologies & innovations. 2) Due to growing impact of global warming, Companies have started researching and developing renewable engergy equipments. 3) Companies are also developing environmental friendly technologies.
SWOT analysis of the Industry in India:
Strengths: 1) Engineering sector one of the largest sectors in India 2) Huge & cheap man power availability. 3) Availabilty of raw materials. 4) Growing Energy demands 5) Latest technologies in 600/800 MW thermal sets.
Weakness:1) Large product development cycle. 2) Unorganized Vendor Base. 3) Lack of technological development in Renewable energy equipments.
Opportunity: 1) Growing demand of exports in neighbouring countries. 2) India being a developing country has a lot of demand for Power & Infrastructure development. 3) Accessibility of latest technology available in Nuclear power will benefit them.
Threats: 1) The fact that Global Companies are showing interest in India is a treat to local companies. 2) Recession and Economic slow downs effects the orders. 3) Fluctuation in the prices of raw materials.
BHEL is the leading company in the Heavy engineering Industry in power sector with a whooping 73% of the power produced in India coming from BHEL equipments .But the Chinese companies are gaining grounds in India. Shanghai in partnership with Reliance & Dongfang with other Indian players have bagged orders worth 40,000 MW and are the biggest competition for BHEL currently. When it comes to quality the BHEL plant has higher Plant load factor of 85 -95 whereas the Chinese plants have Plant Load Factor of 60-80. Cost of Chinese plants goes down to 2.7 cr /MW from 4 cr/MW of BHEL.
In India L& T is a close competitor of BHEL with Quality and cost at Par with BHEL. It has a partnership with Mitsubishi. Its market cap however slightly tips BHEL.
Company Analysis- BHEL:
Introduction:
BHEL is one the leading Engineering & Manufacturing Enterprise in India. It is one of the oldest state owned Enterprise and its has spread over various heavy engineering domains related to Engergy & Infrastructure that includes Power, Railways, Oil& Gas, Transmission & Distribution. It is 12th largest Power equipment manufacturer in the World. Forbes in 2011 had named it the 9th most innovative company in the world. In 2010, it was at 4th place in Forbes Asia’s Fabulous 50 list. It has more than 50 years of glorious history in Heavy Engineering Equipments in India. Its influence is such that 74% of the electricity produced in India comes from the equipments supplied by BHEL. 66% of the railways are Equipped with traction equipment from BHEL. Kolkata Metro is equipped with BHEL drives & controls. One of the nine largest PSU’s of India, it has been awarded the “Navratna” or “The Nine Jewel” tag. Company has been earning profits consistently since 1971-72 and paying dividends since 1976-77.
Company Details:
BHEL founded in 1953 has its HQ in New Delhi. It has 14 manufacturing Units across India which produces around 180 products under 30 major groups of product. Mentioned below are different Units. ? ? BHEL Bhopal (Madhya Pradesh ) BHEL [Ranipur, Uttarakhand|Ranipur]
? ? ? ? ? ? ? ? ? ?
BHEL Ramachandrapuram, Hyderabad (Andhra Pradesh) Transformer Plant, BHEL Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant, Trichy(Tamil Nadu) Boiler Auxiliaries Plant, Ranipet, vellore (Tamil Nadu) Electronics Division and Electro Porcelain Division, Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag) Besides these manufacturing units there are four power sectors in PSNR-Noida, PSWRNagpur, PSER-Kolkata & PSSR-Chennai, undertake EPC contract from various customers and are responsible for erection and commissioning of various BHEL and bought out equipment. Power sector HQ is located in Noida. The Research and Development arm of BHEL is situated in Hyderabad Two repair shops are at HERP (Heavy Equipment Repair Plant), Varanasi and EMRP (Electric machines repair plant) Mumbai.
? ? ?
The Key Positions in BHEL are:
? ? ? ? ? ?
B.P Rao- Chairman & MD I.P Singh- Company Secretary M.K Dube - Director Atul Saraya & O.P Bhutani – Executive Director P.K Bajpai – Finance Director R Krishnan & Anil Sachdev – HR Director
The biggest strength of BHEL is its 62,800 highly skilled and highly committed employees. The future projects have increased the requirement by 1000 more employees who will be recruited directly or indirectly. Company’s mission is to remain a world class enterprise and enhance the value of its stakeholders.
It aims at becoming an Indian Multinational Engineering Company providing total business solutions by offering quality products, systems and services in the field of energy, industry, infrastructure, transportation etc.
Share Holding Pattern: Below is the Share Holding pattern - as on June 2012 taken from Mint.com (Market Info) - Wall street Journal
Description ( As On June 2012 ) No of Share Holders No of Shares Promoter Indian Promoter Total Promoter 1 1 1657552000 1657552000
% of Share
Demat
67.72 67.72
1657552000 1657552000
Non Promoter Institutions Mutual Funds / UTI FI/Bank/Insurance FII Other Total Institutions Non-Institution 173 83 441 0 697 40389818 280535211 316560970 316560970 637485999 1.65 11.46 12.93 12.94 26.05 40373818 280529211 316551970 316551970 637454999
Bodies Corporate NRIs/OCBs Total Non-Institution
3548 8906 12454
63894197 5372389 69266586
6.09 .14 6.23
63888197
63888197
Financial Performance of the Company in Past 1 year:
Records Taken from Companies official Performance High Light Report 2011-12:
2010-11 (Figures in Crore) Turn over Profit Before Tax Net Profit Net Worth Earnings per share R & D investment 41,299 8,487 5,665 19,808 23.15 982
2011-12(Figures in Crore) 49,301 10,001 6,868 24,947 28.06 1,162
Change + 19.4 +17.8 + 21.2 +25.9 21.2 18.3
Major highlights for the year 2011-12:
Sales: ? ? ? ? The total export turn over of the company was worth 22,104 Crore with orders coming in from 21 countries. It entered into the Ukraine markets for the first time. Bagged the order for Single Largest Material Handling System worth 1,395 Crore. Got a lot of orders from existing clients like DB Power, ONGC & Singareni Plant for Power Equipments & Drilling Rigs.
Technology & Innovation: ? ? ? ? Highest no of patent filled in a year (351). R& D investment rose by 18.3 %. BHEL’s space grade Solar panels for high power application were successfully deployed in ISRO’s high power communication satellite GSAT-8. Established four new centres for Excellence taking the tally to 13.
Operational Excellence:
?
9 out of 12 & 10 out of 13 power station equipped with BHEL equipments were awarded with Govt. of India’s National Award for Meritorious performance for year 2010-11.
Segment Wise Performance:
31% 49%
Power Sector Industry Sector
20%
Export Sector
? ? ?
BHEL made significant sales in Power sector equipments worth 13,937 Crore inspite of growth in power sector remaining stagnant. In Industry Sector- Application in captive power, Transportation, Transmission, Oil& Gas, Renewable Energy. The total export turn over of the company was worth 22,104 Crore with orders coming in from 21 countries. SWOT Analysis:
Strengths: 1) It has a very good brand image not only in India but also globally. 2) It has huge task force which is highly skilled, motivated & Highly committed. 3) Strong relationship in the Industry. 4) Access to latest technology due to collaboration. 5) Strong Technical Base and has ability to absorb new trends. 6) Being PSU, it has collaboration with NTPC & defence sector to supply equipments. 7) Cost competitiveness has been one of its strength. 8) Quality & After Sales Service. Weakness:1) Being a state owned company change of leadership or government might change the policies. 2) Not keeping up the product delivery schedule and required sequence of supplies. 3) Larger delivery cycles when compared with international suppliers giving similar equipments. Chinese manufactures delivery faster than BHEL. 4) Strict policies when it comes to supplier’s credit, financing of power projects and soft loans. 5) Due to State electricity board’s poor financial positions, who by the way are the major customers of BHEL in India, liquidity position of BHEL is not upto the mark. Opportunity:1) India being a growing Economy with such a high growth rate & also high population growth rate the demand for Energy & Infrastructure Development will keep increasing, that will boost the orders. 2) Growing Export demands in the neighbouring countries. 3) To increase the efficiency of PSU’s government has given upgraded autonomy to profit making PSU. 4) Availabilty of latest Technology for renewable engergy equipments. Due to growing climatic concerns & depleting resources such energy equipments will be in demand. Threats: 1) Growing competition from both Local & Specially International players. 2) Variation in raw material prices. 3) Economic slow down is affecting the orders. 4) Increasing Oil & coal prices have put the new power projects on hold , which were obtained by bidding very low tariff rates considering the coal & oil prices will remain the same.
Strategies employed by the company in the course of conducting business in the past year 2011-12: (Data Taken from Companies official Performance High Light Report 2011-12):
Strategic Plan: ? ? ? A new strategic plan has been made for 2012-17 that would include globalization to become a multi national enterprise. Focus has been given on transportation, transmission, defence, renewable energy, Nuclear & Water segments. Offerings in Power sector would be enhanced by building EPC capability.
Innovation:
?
? ? ?
BHEL has come up with regenerative braking for trains with a view to reduce electrical consumption thereby reducing carbon emission thus acquiring carbon credits. Set new record in Solar power business by installing 15MW of solar energy across the country. 18% increase in the R&D spending. Set up of two Eco friendly grid-interactive Solar power plants of 5MW & 3MW.
Strategic alliances & Joint ventures:
To maximize the business through mutually beneficial tie up BHEL signed or formed alliance with: ? Karnataka Power corporation (KPCL) ? An MoU has been signed with HMT (international) Ltd for increasing oversea business.
? ? ?
An MoU has been signed with PT. Mega. Urip Persona, Indonesia for setting up a 2x250MW coal fired steam power plant in Indonesia. An MoU with the Govt. of South Sudan for installing 4x70 MW Thermal power plant. An MoU has been signed with M/s Welter Zahnrad ,GmbH , Germany for the supply of internals for gear boxes used in pulverisers.
Work Culture & Philosophy: ? ? ? BHEL has started giving training on regular basis in order to hone the skills of its employee and make them into better professional & better managers Training modules are –General management training, Technical Training, Functional Management & Behavioral training. This makes the employees more technical sound & polished with increased level of motivation and commitment.
Vendor Development & Quality Management: ? Global meeting of approx 200 vendors was held . ? Set for themselves international standards for quality at every stage of their operation ? They have a corporate quality department in New Delhi.
Manufacturing Strategies: ? ? ? ? ?
Flexible Manufacturing Systems (FMSs). Automated Guided Vehicles (AGVs) & robotics. Automated Storage and Retrieval Systems (ASRSs) Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) Try and acquire newest technologies wherein the cost will reduce and productivity will increase.
Corporate Social Responsibilty:
? BHEL has under taken many socio-economic & community development programmes which aim at promoting and encouraging education, standard of living & health and hygiene in villages located in the proximity of their plants ? BHEL made significant contribution to the earthquake victims in Sikkim to alleviate their troubles.
doc_989082020.docx
It explains talks about Industry Trends of Heavy electrical industry, PEST Analysis of heavy electrical industry, Competitor Analysis, SWOT analysis, Company Description, General Information about BHEL, it's Finance performance, SWOT analysis BHEL and Various Strategies employed.
“Bharat Heavy Electrical Limited” Industry analysis:
Industry Trends: In Heavy Electrical Industry in India the majority of the market capitalization is done by PSU. Around 75% of the Power produced in India comes from equipments supplied by BHEL. Indian companies do not export a lot of quantity since they focus mainly on Indian markets. When you compare globally the products in India might function at par but finishing is not upto the mark. In such sectors if you leave aside big players others focus less on branding and marketing. Customer orientation is also low. Even though economy has slowed down, the fact that India is a developing country and its population is growing the demand for energy & infrastructure will keep going. This has made companies to invest in R&D to stay ahead of the competition once the economy picks up.
India has also interested companies from outside like Toshiba who has done a Joint Venture with JSW group. Shanghai Electricals signed a contract with Reliance Power for supplying for their three power plant projects. Alstom has got government approval to form Joint Ventures with Bharat Forge Global trends: In the wake of growing environmental crisis & depletion of resources Current trends globally have been to research on renewable sources like US& UK is spending a lot on Solar Energy technology. Germany has been shifting from traditional heavy Engineering to green technology. In India BHEL has come up with regenerative braking system for our trains which aims at reducing emission.
PEST analysis of the Industry in India:
Political: 1) For PSU the moment government changes the policies also change and the decision are also influenced by the current leadership. 2) For global projects this sector gets influenced by international policies. 3) Government Policies for their customers also affects their business.
4) Environmental policies like safe disposing of manufacturing waste, keeping the air pollution coming from the plants under check, using various technologies is a must now a days. 5) All the companies in this sector need to strictly adhere to legal rules & regulation like quality management & environmental standards etc. 6) Removal of Tariff protection on capital goods. 7) Lowering the custom duties on certain equipments. 8) Delicensing of capital goods and allowance of 100% FDI.
Economic: 1) In a developing country like India where power, infrastructure is the need of the hour, there is a huge scope for such an Industry. 2) Growth of Industries has also helped this sector. 3) Many International companies are starting Joint ventures in India since opportunities are many; this will help to grow the economy as well as built health competition.
Social:
1) As the population keeps increasing the demand for energy increase, need for development increase these factors are also helping the industry grow. 2) Due to growing health & environment concerns, companies are now working towards efficient and safer operations.
Technology: 1) Inspite of Economic slow down companies are Investing a lot on R&D facilities so that once the economy picks up then can stay ahead with new technologies & innovations. 2) Due to growing impact of global warming, Companies have started researching and developing renewable engergy equipments. 3) Companies are also developing environmental friendly technologies.
SWOT analysis of the Industry in India:
Strengths: 1) Engineering sector one of the largest sectors in India 2) Huge & cheap man power availability. 3) Availabilty of raw materials. 4) Growing Energy demands 5) Latest technologies in 600/800 MW thermal sets.
Weakness:1) Large product development cycle. 2) Unorganized Vendor Base. 3) Lack of technological development in Renewable energy equipments.
Opportunity: 1) Growing demand of exports in neighbouring countries. 2) India being a developing country has a lot of demand for Power & Infrastructure development. 3) Accessibility of latest technology available in Nuclear power will benefit them.
Threats: 1) The fact that Global Companies are showing interest in India is a treat to local companies. 2) Recession and Economic slow downs effects the orders. 3) Fluctuation in the prices of raw materials.
BHEL is the leading company in the Heavy engineering Industry in power sector with a whooping 73% of the power produced in India coming from BHEL equipments .But the Chinese companies are gaining grounds in India. Shanghai in partnership with Reliance & Dongfang with other Indian players have bagged orders worth 40,000 MW and are the biggest competition for BHEL currently. When it comes to quality the BHEL plant has higher Plant load factor of 85 -95 whereas the Chinese plants have Plant Load Factor of 60-80. Cost of Chinese plants goes down to 2.7 cr /MW from 4 cr/MW of BHEL.
In India L& T is a close competitor of BHEL with Quality and cost at Par with BHEL. It has a partnership with Mitsubishi. Its market cap however slightly tips BHEL.
Company Analysis- BHEL:
Introduction:
BHEL is one the leading Engineering & Manufacturing Enterprise in India. It is one of the oldest state owned Enterprise and its has spread over various heavy engineering domains related to Engergy & Infrastructure that includes Power, Railways, Oil& Gas, Transmission & Distribution. It is 12th largest Power equipment manufacturer in the World. Forbes in 2011 had named it the 9th most innovative company in the world. In 2010, it was at 4th place in Forbes Asia’s Fabulous 50 list. It has more than 50 years of glorious history in Heavy Engineering Equipments in India. Its influence is such that 74% of the electricity produced in India comes from the equipments supplied by BHEL. 66% of the railways are Equipped with traction equipment from BHEL. Kolkata Metro is equipped with BHEL drives & controls. One of the nine largest PSU’s of India, it has been awarded the “Navratna” or “The Nine Jewel” tag. Company has been earning profits consistently since 1971-72 and paying dividends since 1976-77.
Company Details:
BHEL founded in 1953 has its HQ in New Delhi. It has 14 manufacturing Units across India which produces around 180 products under 30 major groups of product. Mentioned below are different Units. ? ? BHEL Bhopal (Madhya Pradesh ) BHEL [Ranipur, Uttarakhand|Ranipur]
? ? ? ? ? ? ? ? ? ?
BHEL Ramachandrapuram, Hyderabad (Andhra Pradesh) Transformer Plant, BHEL Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant, Trichy(Tamil Nadu) Boiler Auxiliaries Plant, Ranipet, vellore (Tamil Nadu) Electronics Division and Electro Porcelain Division, Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag) Besides these manufacturing units there are four power sectors in PSNR-Noida, PSWRNagpur, PSER-Kolkata & PSSR-Chennai, undertake EPC contract from various customers and are responsible for erection and commissioning of various BHEL and bought out equipment. Power sector HQ is located in Noida. The Research and Development arm of BHEL is situated in Hyderabad Two repair shops are at HERP (Heavy Equipment Repair Plant), Varanasi and EMRP (Electric machines repair plant) Mumbai.
? ? ?
The Key Positions in BHEL are:
? ? ? ? ? ?
B.P Rao- Chairman & MD I.P Singh- Company Secretary M.K Dube - Director Atul Saraya & O.P Bhutani – Executive Director P.K Bajpai – Finance Director R Krishnan & Anil Sachdev – HR Director
The biggest strength of BHEL is its 62,800 highly skilled and highly committed employees. The future projects have increased the requirement by 1000 more employees who will be recruited directly or indirectly. Company’s mission is to remain a world class enterprise and enhance the value of its stakeholders.
It aims at becoming an Indian Multinational Engineering Company providing total business solutions by offering quality products, systems and services in the field of energy, industry, infrastructure, transportation etc.
Share Holding Pattern: Below is the Share Holding pattern - as on June 2012 taken from Mint.com (Market Info) - Wall street Journal
Description ( As On June 2012 ) No of Share Holders No of Shares Promoter Indian Promoter Total Promoter 1 1 1657552000 1657552000
% of Share
Demat
67.72 67.72
1657552000 1657552000
Non Promoter Institutions Mutual Funds / UTI FI/Bank/Insurance FII Other Total Institutions Non-Institution 173 83 441 0 697 40389818 280535211 316560970 316560970 637485999 1.65 11.46 12.93 12.94 26.05 40373818 280529211 316551970 316551970 637454999
Bodies Corporate NRIs/OCBs Total Non-Institution
3548 8906 12454
63894197 5372389 69266586
6.09 .14 6.23
63888197
63888197
Financial Performance of the Company in Past 1 year:
Records Taken from Companies official Performance High Light Report 2011-12:
2010-11 (Figures in Crore) Turn over Profit Before Tax Net Profit Net Worth Earnings per share R & D investment 41,299 8,487 5,665 19,808 23.15 982
2011-12(Figures in Crore) 49,301 10,001 6,868 24,947 28.06 1,162
Change + 19.4 +17.8 + 21.2 +25.9 21.2 18.3
Major highlights for the year 2011-12:
Sales: ? ? ? ? The total export turn over of the company was worth 22,104 Crore with orders coming in from 21 countries. It entered into the Ukraine markets for the first time. Bagged the order for Single Largest Material Handling System worth 1,395 Crore. Got a lot of orders from existing clients like DB Power, ONGC & Singareni Plant for Power Equipments & Drilling Rigs.
Technology & Innovation: ? ? ? ? Highest no of patent filled in a year (351). R& D investment rose by 18.3 %. BHEL’s space grade Solar panels for high power application were successfully deployed in ISRO’s high power communication satellite GSAT-8. Established four new centres for Excellence taking the tally to 13.
Operational Excellence:
?
9 out of 12 & 10 out of 13 power station equipped with BHEL equipments were awarded with Govt. of India’s National Award for Meritorious performance for year 2010-11.
Segment Wise Performance:
31% 49%
Power Sector Industry Sector
20%
Export Sector
? ? ?
BHEL made significant sales in Power sector equipments worth 13,937 Crore inspite of growth in power sector remaining stagnant. In Industry Sector- Application in captive power, Transportation, Transmission, Oil& Gas, Renewable Energy. The total export turn over of the company was worth 22,104 Crore with orders coming in from 21 countries. SWOT Analysis:
Strengths: 1) It has a very good brand image not only in India but also globally. 2) It has huge task force which is highly skilled, motivated & Highly committed. 3) Strong relationship in the Industry. 4) Access to latest technology due to collaboration. 5) Strong Technical Base and has ability to absorb new trends. 6) Being PSU, it has collaboration with NTPC & defence sector to supply equipments. 7) Cost competitiveness has been one of its strength. 8) Quality & After Sales Service. Weakness:1) Being a state owned company change of leadership or government might change the policies. 2) Not keeping up the product delivery schedule and required sequence of supplies. 3) Larger delivery cycles when compared with international suppliers giving similar equipments. Chinese manufactures delivery faster than BHEL. 4) Strict policies when it comes to supplier’s credit, financing of power projects and soft loans. 5) Due to State electricity board’s poor financial positions, who by the way are the major customers of BHEL in India, liquidity position of BHEL is not upto the mark. Opportunity:1) India being a growing Economy with such a high growth rate & also high population growth rate the demand for Energy & Infrastructure Development will keep increasing, that will boost the orders. 2) Growing Export demands in the neighbouring countries. 3) To increase the efficiency of PSU’s government has given upgraded autonomy to profit making PSU. 4) Availabilty of latest Technology for renewable engergy equipments. Due to growing climatic concerns & depleting resources such energy equipments will be in demand. Threats: 1) Growing competition from both Local & Specially International players. 2) Variation in raw material prices. 3) Economic slow down is affecting the orders. 4) Increasing Oil & coal prices have put the new power projects on hold , which were obtained by bidding very low tariff rates considering the coal & oil prices will remain the same.
Strategies employed by the company in the course of conducting business in the past year 2011-12: (Data Taken from Companies official Performance High Light Report 2011-12):
Strategic Plan: ? ? ? A new strategic plan has been made for 2012-17 that would include globalization to become a multi national enterprise. Focus has been given on transportation, transmission, defence, renewable energy, Nuclear & Water segments. Offerings in Power sector would be enhanced by building EPC capability.
Innovation:
?
? ? ?
BHEL has come up with regenerative braking for trains with a view to reduce electrical consumption thereby reducing carbon emission thus acquiring carbon credits. Set new record in Solar power business by installing 15MW of solar energy across the country. 18% increase in the R&D spending. Set up of two Eco friendly grid-interactive Solar power plants of 5MW & 3MW.
Strategic alliances & Joint ventures:
To maximize the business through mutually beneficial tie up BHEL signed or formed alliance with: ? Karnataka Power corporation (KPCL) ? An MoU has been signed with HMT (international) Ltd for increasing oversea business.
? ? ?
An MoU has been signed with PT. Mega. Urip Persona, Indonesia for setting up a 2x250MW coal fired steam power plant in Indonesia. An MoU with the Govt. of South Sudan for installing 4x70 MW Thermal power plant. An MoU has been signed with M/s Welter Zahnrad ,GmbH , Germany for the supply of internals for gear boxes used in pulverisers.
Work Culture & Philosophy: ? ? ? BHEL has started giving training on regular basis in order to hone the skills of its employee and make them into better professional & better managers Training modules are –General management training, Technical Training, Functional Management & Behavioral training. This makes the employees more technical sound & polished with increased level of motivation and commitment.
Vendor Development & Quality Management: ? Global meeting of approx 200 vendors was held . ? Set for themselves international standards for quality at every stage of their operation ? They have a corporate quality department in New Delhi.
Manufacturing Strategies: ? ? ? ? ?
Flexible Manufacturing Systems (FMSs). Automated Guided Vehicles (AGVs) & robotics. Automated Storage and Retrieval Systems (ASRSs) Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) Try and acquire newest technologies wherein the cost will reduce and productivity will increase.
Corporate Social Responsibilty:
? BHEL has under taken many socio-economic & community development programmes which aim at promoting and encouraging education, standard of living & health and hygiene in villages located in the proximity of their plants ? BHEL made significant contribution to the earthquake victims in Sikkim to alleviate their troubles.
doc_989082020.docx