Professional Documents
Culture Documents
PIMR, Indore
ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception
Any omission in this brief acknowledgement does not mean lack of gratitude.
Maaz Arif
2
DECLARATION
I hereby declare that the project report entitled BHEL & Its Products &
International Transactions authentic work done by me. The project
was undertaken as a part of the course curriculum of MBA program, at
Prestige Institute of Management & Research Indore. This has not
been submitted to any other examination body earlier.
Date: 09/07/2014
MAAZ ARIF
(MBA-International Business)
3
CONTENTS
Page no.
Part-I
1. Introduction 5
2. Objectives 14
3. Organization Structure 15
4. Financial undertakings at BHEL 17
5. Human Resources at BHEL 24
6. Units of BHEL 40
Part-II
1. Products of BHEL 42
2. Product Profile & Product Range 50
3. International Undertakings 56
Part-III
4
PART-I GENERAL INFORMATION
Founded 1964
Products Includes (Gas and Steam Turbines), Boilers, generators, Heat Exchangers, Pumps, switchgears, sensors,
Automation and Control Systems, Power electronics, Transmission system controls etc
Website www.bhel.com
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Industry Profile
BHEL was established in 1964. Heavy Electrical (India) Ltd was merged with BHEL in 1974. In
1982, it entered into power equipments, to reduce its dependence on the power sector. It
developed the capability to produce a variety of electrical, electronic and mechanical equipments
for all sectors, including transmission, transportation, oil and gas and other allied industries.[5] In
1991, it was converted into a public limited company. By the end of 1996, the company had
handed over 100 Electric Locomotives to Indian Railway and installed 250 Hydro-sets across
India
Bharat Heavy Electricals Limited (BHEL) owned by Government of India, is a power plant
equipment manufacturer and operates as an engineering and manufacturing company based
in New Delhi, India. Established in 1964, BHEL is India's largest engineering and manufacturing
company of its kind. The company has been earning profits continuously since 1971-72 and
paying dividends uninterruptedly since 1976-77. In recognition of its consistent high
performance, BHEL has been conferred with the 'Maharatna' status by the Government of India
on 1 February 2013. It is now one among seven Maharatna PSEs
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Heavy Electrical Industry
A brief description:-
Heavy industry sector is one of the core sectors of Indian economy. Therefore, it’s fund
requirements are inverse keeping in view the scale and size of the industrial units in the sector,
the financial requirements are also huge. The heavy engineering sector is driving primarily by
technology. This, coupled with the fact that the initial investment required for heavy engineering
or capital goods manufacturing facilities is relatively high, creates relatively high entry barriers.
Any business enterprises viability eventually boils down to cost – return trade off. Cost of funds
is undoubtedly, the most important determined of the viability. This becomes more crucial in
heavy engineering sectors
The development of the Indian heavy electrical machinery industry is directly linked to the
Performance of the Power sector in India. With India’s development, the need for more and
Better Power supply has become essential for industries to grow. Thus with increasing focus on
capacity expansion in the Power sector, the heavy electrical machinery manufacturing industry is
expanding vigorously.
BACKGROUND:-
Heavy Electrical Industry covers power generation, transmission and distribution and utilization
equipments. These include turbo generators, boilers, various types of turbines, transformers,
switchgears and other allied items. Majority of the products manufactured by heavy electrical
industry in the country, which includes items like transformers, switchgears etc. are used by all
sectors of the Indian economy. Some major areas where these are used are the multi core projects
for power generation including nuclear power stations, petrochemical complexes, chemical
plants, integrated steel plants, non-ferrous metal units, etc
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HISTORY
India is the only other developing country besides China, which produces a full range of electric
power generation and transmission equipment. In fact, the history and growth of (Bharat Heavy
Electricals Ltd.), a public sector enterprise under in the country, symbolizes the overall growth
pattern of heavy electrical industry in the country BHEL has the unique distinction of being one
of the very few companies in the world, manufacturing all major power generating equipment
under one roof .The industry has been upgrading the existing technology and is now capable of
taking up turnkey contracts also for export markets.
The industry has been deli censed. Foreign collaborations are allowed with 100 percent FDI. The
country is planning to add 150,000 MW power generation capacities in the next 10 years. This
will generate substantial demand for heavy electrical equipments. The heavy electrical industry
is capable of manufacturing transmission and distribution equipment up to 400 KV AC and high
voltage DC. The industry has taken up the work of up gradation and transmission to the next
higher voltage system of 765 KV and have upgraded their manufacturing facilities to supply 765
KV class transformers, reactors, CTS, CVT, bushing and insulators, etc.
BHEL has:
1. Installed equipment for over 90000MW of power generation-for utilities, captive and
industrial users.
2. Supplied over 225000MW a transformer capacity and other equipment operating in
transmission and distribution network up to 400Kv (AC& DC)
3. Supplied over 25000 motors with drive control system to power projects, petro
chemicals, refineries, steel, aluminum, fertilizers, cement plants etc.
4. Supplied traction electrics and AC/DC locos to power over 12000kms railway network.
5. Supplied over one million valves to power plants and other industries.
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BHEL caters to core sectors of the Indian economy viz; power generation & transmission,
industry, transportation, telecommunication, renewable energy, defense etc. the wide network of
BHEL’s 14 manufacturing divisions, four power sector regional centers, over 100 project sites,
eight service centers and 14 regional offices enables the company to be closer to its customers
and provide them with suitable products, systems and services efficiently and at competitive
prices. Having attained ISO 9000 certification, BHEL is now well on its journey towards total
quality management (tqm). On the environmental management front, the major units of BHEL
have4 already acquired the ISO 14001 certification,
Power sector
Power generation sector comprises thermal, gas, hydro and nuclear power plant business. As of
31-3-2004, BHEL supplied sets account for nearly 71,255 MW or 64% of the total installed
capacity of 1, 11,151 MW in the country, as against nil till 1969-70.
BHEL has proven turnkey capabilities for executing power projects from concepts to
commissioning. It possesses the technology and capability to produce thermal sets with super
critical parameters up to 1000 mw unit rating and gas turbine-generator sets of up to 250 mw unit
rating. Cogeneration and combined-cycle plants have been introduced to achieve higher plant
efficiencies. To make efficient use of the high ash-content coal available in India, BHEL supplies
circulating fluidized bed combustion boilers to both thermal and combined-cycle power plants.
The company manufactures 235 MW nuclear turbine generator sets and has commenced
production of 500 MW nuclear turbine generator sets.
Custom-made hydro sets of Francis, Pelt on And Kaplan types for different head discharge
combinations are also engineered and manufactured by BHEL. In all, orders for more than 700
utility sets of thermal, hydro, gas and nuclear have been placed on the company as on date. The
power plant equipment manufactured by BHEL is based on contemporary technology
comparable to the best in the world, and is also internationally competitive.
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The company has proven expertise plant performance improvement through renovation,
modernization and upgrading of a variety of power plant equipment, besides specialized know
how of residual life assessment, health diagnostics and life extension of plants.
Transmission
BHEL also supplies a wide range of transmission products and systems of up to 400KV class.
These include high voltage power & instrument transformers, dry type transformers, shunt &
series reactors, of switch gear, 33KV gas insulated substation capacitors, and insulators etc. for
economic transmission of bulk power over long distances, High Voltage Direct Current (HVDC)
systems are supplied. Series and shunt compensation systems, to minimize transmission loses,
have also been supplied.
Industry sector:
Industries
BHEL is a major contributor of equipment and systems to industries: cement, sugar, fertilizer,
refineries, petrochemicals, steel, paper etc. the range of systems and equipment supplied
includes: captive power plants, dg power plants, high speed industrial drive turbines, industrial
boilers and auxiliaries, waste heat recovery boilers, gas turbines, heat exchangers and pressure
vessels, centrifugal compressors, electrical machines, pumps, valves, seamless steel tubes and
process controls, control systems for process industries, and control and instrumentation to
people.
Transportation
Mostly of the trains operated by the Indian railways, including the metro in Calcutta, are
equipped with BHEL’s traction electrics and traction control equipment. The company supplies
electric locomotives to Indian Railways and diesel shunting locomotives to various industries.
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5000/4600 hp ac/dc locomotives developed and manufactured by BHEL have been supplied to
Indian railways. Battery powered road vehicles are also manufactured by the company.
BHEL also supplies traction electrics and traction control equipment for electric locos, diesel
electric locos, and EMUs/ DEMUs to the railways.
Telecommunication
BHEL also caters to telecommunication sector by way of small, medium, and large switching
systems.
Renewable energy
Technologies that can be offered by BHEL for exploiting non-conventional and renewable
resources of energy include: wind electric generators, solar power based water pumps, lighting
and heating systems.
The company manufactures wind electric generators of unit size up to 250 KW for wind farms,
to meet the growing demand for harnessing wind energy.
It is an integrated power plant equipment manufacturer and one of the oldest and largest
engineering and manufacturing enterprise of India. It is world’s 12th largest power equipment
manufacturer. It is India’s ninth largest public sector undertaking. BHEL is one of the few
companies of the world who have the capability to manufacture entire range of power plant
equipment.
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Forbes business magazine of the year 2011 ranked BHEL as the ninth most innovative company
of the world. BHEL is the only Indian engineering company to be listed. 2010 edition of Forbes
Asia’s fabulous list placed BHEL at 4th place. BHEL has been continuously earning profit since
1971-72.
BHEL BHOPAL
BHEL, Bhopal with state-of-the-art facilities, manufactures wide range of electrical equipments.
It’s product range includes Hydro, Steam, Marine & Nuclear Turbines, Heat Exchangers, Hydro
& Turbo Generators, Transformers, Switchgears, Control gears, Transportation Equipment,
Capacitors, Bushings, Electrical Motors, Rectifiers, Oil Drilling Rig Equipments and Diesel
Generating sets.
BHEL, Bhopal certified to ISO: 9001, ISO 14001 and OHSAS 18001, is moving towards
excellence by adopting TQM as per EFQM / CII model of Business Excellence. Heat Exchanger
Division is accredited with ASME ‘U’ Stamp. With the slogan of “ Kadam kadam milana hai,
grahak safal banana hai”, it is committed to the customers. BHEL Bhopal has its own
Laboratories for material testing and instrument calibration which are accredited with ISO 17025
by NABL. The Hydro Laboratory, Ultra High Voltage laboratory and Centre for Electric
Transportation are the only laboratories of its in this part of the world
BHEL Bhopal's strength is it's employees. The company continuously invests in Human
Resources and pays utmost attention to their needs. The plant's Township, well known for its
greenery is spread over an area of around 20 sq kms. and provides all facilities to the residents
like, parks, community halls, library, shopping centers, banks, post offices etc. Besides, free
health services is extended to all the employees through 350 bedded (inclusive of 50 floating
beds) Kasturba Hospital and chain of dispensaries.
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l
MISSION
VISION
VALUES
13
BHEL‘s Objectives
1. Business Mission: To maintain the leading position as supplier of facilities for utilization
and conservation of energy for applications in the areas of electric power, transportation,
oil and gas exploration and industries. Utilize company’s capabilities and resources to
expand business into allied areas and other priority sectors of the economy like
communication, electronics and technological advancements.
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Organization Structure of BHEL
BHEL is spread out over various parts of the country from Haridwar in North to Tiruchi in
South. Centralized policy making and decentralized administration Unit managers have complete
authority and power Always has been reviewing its organizational structure to ensure customer
needs are fulfilled and internal synergy is maximized BHEL is commercial organization. The
Powers of company officials are well defined at all levels in the organization. The duties are
assigned from time to time.
EXECUTIVE DIRECTOR
GENERAL MANAGER
SENIOR DGM
DGM
SENIOR MANAGER
MANAGER
DEPUTY MANAGER
SENIOR OFFICER/ENGINEER
OFFICER/ENGINEER
SUPERVISIOR
CLERKS
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Departments of BHEL
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BHEL FINANCE DEPARTMENT
Finance Department
Like every manufacturing company, BHEL also has its own separate finance department which
deals with the different financial matters of the company. The finance department of BHEL
is sub-divided into various sections and the work flow is divided among these sections which are
consolidated and put together as a whole at the end and the final accounts are prepared and then
the decision making process begins and targets are set for
the next financial year. The various sections into which the finance department is divided are:
1. Works Section
2. Provident Fund Section
3. Miscellaneous Bills Section
4. Revenue Section
5. Cash Planning Section
6. Books & Budget Section
7. Sales Section
8. Indigenous Purchase Section
9. Foreign Purchase Section
10. Cost Section
11. Stores Section @ T. A Section
12. Pay Section
13. Time and Wages Section
14. Assets Section
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FINANCIAL PERFORMANCE OF BHEL
Current Assets:-
Current Liabilities
•Bank Overdraft
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Gross Working Capital: - It refers to the firm’s investment in current assets.
(Amount in Cr.)
Particular 2008-09 2009-10 2010-11 2011-12 2012-13
Gross working capital 36901.07 42934.81 51494.74 48714.94 50959.46
The GROSS WORKING CAPITAL determines the firm’s investment in current assets, here in
the graph, we can see that, there is an increasing trend in GWC, this is due to huge investments
in inventory, and they got huge orders year by year. Debtors also form a major reason for
investment in Current assets; the major customers to BHEL are government entity, so slow in
payments results in more investments in Gross Working Capital.
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Net Working Capital: It refers to the excess of current assets over current assets over current
liabilities.
The Net Working Capital Determines the Firm’s ability to pay off its current obligations, the
year 2008-09 the company had Low Working Capital, and after that there is an increasing trend
in the NWC, in the year 2012-13 the Firm has highest Net Working Capital, this is because the
company had high profits and there liquidity position was high.
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Financial Analysis at a Glance
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Balance Sheet
As at 31st March, 2013
(` in Lakh)
at 31st March,2013 at 31st March,2012
Equity And Liabilities
1 Shareholders' Funds
(a) Share Capital 3379.783379.78
(b) Reserves & Surplus -21807.78 -18428.00-25311.55 -21931.77
Share Application money pending allotment 3400.00 3400.00
2 Non-current liabilities
Long-term borrowings 23497.8121887.18
Deferred tax liabilities (Net) 12 0.000.00
Other Long term liabilities1504.402522.47
Long-term provisions1890.011118.10
Total Non-current liabilities 26892.2225527.75
3 Current liabilities
Short-term borrowings 99.50205.50
Trade payables 5223.714510.19
Other Current liabilities 13081.2011772.84
Short-term provisions 1962.052344.23
Total Current Liabilities 20366.46 18832.76
Total Equity & Liabilities 32230.68 25828.74
Assets
1 Non Current Assets
(a)Fixed Assets
(i) Tangible Assets391.56438.00
(ii) Intangible Assets4.2711.09
(iii) Capital Work-in-progress919.680.40
(iv) Intangible assets under development0.00 1315.510.00449.49
(b) Non-current Investments 1.311.31
(c) Deferred tax assets (Net) 0.000.00
(d) Long-term loans and advances 256.21274.04
(e) Other non-current assets 5361.125618.64 2315.382590.73
2 Current Assets
(a) Current Investments 0.000.00
(b) Inventories 5717.846699.86
(c) Trade Receivables 13560.5711626.28
(d) Cash & cash equivalents 2793.241069.14
(e) Short Term Loans & Advances 3193.343366.34
(f) Other Current Assets 31.54 25296.53 26.9022788.52
Total 32230.68 25828.74
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SHAREHOLDING
BHEL's equity shares are listed on Bombay Stock Exchange and National Stock Exchange of
India.
Central Government of India and State governments in India hold majority of the shares of
BHEL.
Others 01.44%
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Total 100.00%
• Human Resource is a term used to describe the individuals who comprise the workforce
of an organization.
• Human Resources seeks to achieve this by aligning the supply of skilled and qualified
individuals and the capabilities of the current workforce, with the organization's ongoing
and future business plans and requirements to maximize return on investment and secure
future survival and success.
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25
ORGANIZATIONAL HIERARCHY IN
CONSIDERATION WITH HR
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Human Resource Department Structure
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Description of HR Departments
The Human Resource Department of BHEL , Bhopal is broadly divide into two Category :-
I.HRDC
II.HRM
I.HRDC (Human Resource Development Centre) :- The principal objective of training and
development division in BHEL is to make sure the availability of a skilled and willing workforce
to an organization. The training system in BHEL is to create a smarter workforce and yield the
best results.
1. Apprenticeship Training
2. Faculty Work
3. Vocational Training
4. Induction Training
Main Functions:
• Identify the needs of employees.
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Training:
Scope:
• This is essentially limited to the product quality (that is general management, behavioural
management, technical and skill oriented programs).
Training for safety related aspects are given by the safely department and for quality related
by the quality department
Responsibility:
• The responsibility of identifying the training needs of all individuals lies with the
concerned controlling officers/HOD and group heads.
• The responsibility of consolidating and listing, in the order of priority, the program’s to
be conducted, in order to impart the necessary training lies the head of HRDC
Development:
Development Programs
• Developmental programs are conducted for all categories of employees i.e., Executive,
Supervisors and Artisans.
Counselling Programs
• Counselling programs are undertaken for employees who are
– irregular to work,
For this purpose, the company encourages suggestions, group work etc., and hence motivate
the employees.
Performance Appraisal:
• Performance evaluation and thereby performance appraisal at BHEL is done internally by
the immediate concerned officer. The employees are given points based on the
performance.
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– 10 points – poor performance
Canteen
• Food which is basic necessity of human being is served in the company over the years at
a subsidized rates say about Rs 3 per day and it also serves nutritious and hygienic food.
provides Tea/Coffee at least twice a day
• a special feature is that each and every employee has to wipe His/her I.D. card in a
magnetic machine so that it is a way to identify the time of entry and exit to the concern..
HRM covers the various departments, performing the different functions, which are as follows:-
1.Establishment
4.Law
5.Administration
1. Establishment
All the Establishment Matters comes under this department . It deals with a wide range of
activities starting from induction of an employee till retirement. It includes record keeping of all
the employees & its verification (as per required). For Example; Sanction of leave , bus pass ,
higher qualification matters , passport , promotions , transfers , social security forms and their
nominations , loans etc.
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Industrial Relations is a multidisciplinary field that studies the employment relationship. It is a
bridge between workers and top management. It focuses on labour relationship which includes
resolving the grievances of the workers. Contract Labour Administration and Industrial Dispute
Cases also comes under it.
Trade Unions:
• The trade union in BHEL includes many educated workers so that the issues are settled
within the factory.
• Top management and trade union leaders come together and try to settle problem within
the factory premises.
• The organization motivates the employees by means of involving them while decision-
making that is BHEL as adopted the method of Management by Objective.
BHEL has various labour unions which are actively giving shape to IR.The main Trade Unions
are:-
4.CITU
5.AITUC
During all these years, Indian National Trade Union Congress (INTUC) had the monopoly
over four other trade unions in the plant.
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a. Staffing (MPP, Recruitment , Placement & Exits)
Recruitments is an essential & indispensable part of HR which deals with hiring process, which
may be from outside or inside the company. Internally through transfers, promotions etc. , and
externally through campus selection , written examinations and interviews etc.
Understanding & Over staffing reduces the competitive efficiency of the business. Planning staff
levels requires an assessment of present and future needs of the organization be compared with
present resource and future predicted resources which is accomplished by Man Power
Planning.
4. Offer of training for trade/ technical apprentices Offer for temporary employment
5. Offer of appointment
Sources of Recruitment
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• From reputed engineering/ management through college campus interview
Selection
b. Performance Management
BHEL being a very big & widely spread organization which has large number of manpower.
Thus to appraise its performance need a comprehensive & exhaustive method.
Executives: - e – Map
BHEL have a separate department for new Business technique which performs various functions
like designing SAP , ERP , e-Map , PCMM etc, exclusively for BHEL.
e. Career Planning
f. Succession Planning
g. Competency Management
h. Compensation Management
i. Communication Systems
4. Law
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This Department performs all the legal activities of the BHEL. It covers:-
Arbitration
Court Cases
Legal Advices
5. Administration
For the welfare of the employees the many other facilities were provided by the BHEL which is
administered very efficiently. They are as follows:-
Township Administration
Office Administration
Hospital Administration
Sports Administration
Transport
Mission-
To continually evolve new bench marks, resources, practices for ensuring effective contribution
of people towards achieving excellence
Objectives-
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• Attract, retain, develop, and remain effective and motivate human resource with the
required skills and competencies to meet organizational needs in tune with changing
business profiles and technological requirements.
• Maintain good industrial relations with high level of employee for better participation,
productivity and quality at work.
EMPLOYEES
The organization believes that their greatest strength is the highly skilled and committed
workforce of 48,399 employees. Every employee is given an equal opportunity to develop
himself/herself and grow in his/her career. Continuous training and retraining, career planning, a
positive work culture and participative style of management - all these have engendered
development of a committed and motivated workforce setting new benchmarks in terms of
productivity, quality and responsiveness. During 2012-13, 7 of its employees won the Prime
Minister's 'Shram' Awards and 13 employees won the 'Vishwakarma Rashtriya Puraskar'.
Sh. B.P. Rao, the CMD of BHEL, won Power Man of the Year Award in 2012 for individual
contribution to the power sector in India
Classification of employees
• The employees shall generally be classified as under:
Regular.
Temporary.
Casual.
Pay Structure
o Salary
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o Dearness Allowances.(DA)
Employee Benefits
• Leaves
The BHEL Group Saving Linked Insurance Scheme with effect from April 1987 provides an
insurance cover for all employees and promotes savings to provide financial assistance to the
employee/beneficiaries at the time of retirement or insurance cover in the event of death while in
service
• . Cash awards for acquiring higher/additional qualification Sponsorship for higher studies
& Family planning incentives.
• Messing allowances
• Free electricity
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• Kit allowances to employees deputed abroad
• vehicle allowance
Working Hours
Every employee of the company shall be required to work for at least 48 hours a week which is
the minimum requirement to work Over Time
• For the work done, adequate compensation by way of compensatory overtime payment
will be allowed at the discretion of the management.
*BHEL offers exciting career opportunities with dynamic exposure to the latest developments in
each field, be it Engineering, Finance or HR. As one grows in the organization, employee is
entrusted with greater responsibilities and avenues of growth are extended to him at all junctures.
*Avenues of Growth
*At BHEL, one gets multiple opportunities to work on novel ideas all the time, with tremendous
backing and support from the seniors and the enthusiasm of the peers and juniors. The distinct
culture and the openness in communication channels that prevail within the organization, make
the work environment friendly and conducive for inspiring great ideas. Fresher Inductees are
roped into the organizational activities right from the beginning, to give them the right head start
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and direction. Each employee is exposed to average 15 days of training each year to upgrade his
capabilities and keep the organization ahead in every field. Avenues of growth are such that the
employees who joined BHEL’s Executive cadre at induction level have not only risen to Top
Management positions in the Company but are also holding key positions outside.
*BHEL facilitates equal opportunities to all its employees. It not only provide employees a
conducive work environment to learn and grow but also an encouraging and open work culture
that upholds inclusiveness, teamwork and creativity.
In BHEL, we recognize the importance of work-life balance and encourage you to maintain a
healthy balance between your work and personal life.
The Human Resource Development Institute (HRDI) situated in Noida, is the cornerstone of
BHEL’s learning infrastructure along with the Advanced Technical Education Centre (ATEC) at
Hyderabad and the Human Resource Development Centers(HRDCs) at different units. HRDI has
aligned its programs and initiatives (like People Development Programs, Knowledge Transfer
Workshops ,Job Specific Training & Mentoring Workshops, Life Education Workshops, BHEL:
The Need of the Hour programs) based on CMD’s Six Point Agenda for Dynamic Growth &
Leadership .The key focus in HRD efforts has been to keep the ‘Human Capital’ always in a
state of readiness, so as to meet the dynamic challenges posed by the fast changing environment.
Guided by the HRD Mission statement “To promote and inculcate a value-based culture utilizing
the fullest potential of Human Resources for achieving the BHEL Mission”, the HRDI through a
step-by-step strategic long-term training process and several short-term need based program
based on comprehensive organizational research, enables the human resources to unearth and
polish their potential. HRDI is spearheading the HRD initiatives in the company and focusing on
competency, commitment and culture building.
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LEVEL OF EMPLOYEES
Executive Category:
E1 Engineer/Executive Trainee
E1A Engineer/Executive /Officer
E2 Sr.Engineer/Executive /Officer
E3 Deputy Manager
E4 Manager
E5 Sr.Manager
E6 DGM
E6A Sr.DGM
E7 AGM
E8 GM
E9 Executive Director
Supervisors Category:
S1 Assistant Engineer Grade 2
S2 Assistant Engineer Grade 1
S3 Deputy Engineer
S4 Additional Engineer Grade 2
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S5 Additional Engineer Grade 1
S6 Sr.Additional Engineer Grade 2
S7 Sr.Additional Engineer Grade 1
Workers Category:
A1/B1 Unskilled Labours/Attendant
A2/B2 Semi-Skilled Labours
A3/B3 Artisan Grade 4
A4/B4 Artisan Grade 3
A5/B5 Artisan Grade 2
A6/B6 Artisan Grade 1
A7/B7 Technician
A8/B8 Sr. Technician
A9/B9 Master Technician
A10/B10 General Technician
A11/B11 Chief Technician
UNITS OF BHEL
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Main manufacturing Units
The company is also setting up a new Greenfield Power Equipment Fabrication Plant at
Bhandara, Maharashtra, the foundation stone for which was laid on 14 May 2013. Further,
BHEL is planning to enter solar manufacturing in a big scale, as it has announced its plans for a
600 MW Solar Module Factory.
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PART-II
Products of BHEL
1.Thermal power Plants- A thermal power station is a power plant in which the prime
mover is steam driven. Water is heated, turns into steam and spins a steam turbine which drives
an electrical generator. After it passes through the turbine, the steam is condensed in
a condenser and recycled to where it was heated; this is known as a Rankine cycle. The greatest
variation in the design of thermal power stations is due to the different fossil fuel resources
generally used to heat the water. Some prefer to use the term energy center because such
facilities convert forms of heat energy into electrical energy.[1] Certain thermal power plants also
are designed to produce heat energy for industrial purposes of district heating, or desalination of
water, in addition to generating electrical power. Globally, fossil fueled thermal power plants
produce a large part of man-made CO2 emissions to the atmosphere, and efforts to reduce these
are varied and widespread.
2.Nuclear power Plants- Nuclear power, or nuclear energy, is the use of exothermic nuclear
processes, to generate useful heat and electricity. The term includes nuclear fission, nuclear
decay and nuclear fusion. Presently the nuclear fission of elements in the actinide series of
the periodic table produce the vast majority of nuclear energy in the direct service of humankind,
with nuclear decay processes, primarily in the form of geothermal energy, and radioisotope
thermoelectric generators, in niche uses making up the rest. Nuclear (fission) power stations,
excluding the contribution from naval nuclear fission reactors, provided about 5.7% of the
world's energy and 13% of the world's electricity in 2012. In 2013, the IAEA report that there are
437 operational nuclear power reactors, in 31 countries, although not every reactor is producing
electricity. In addition, there are approximately 140 naval vessels using nuclear propulsion in
operation, powered by some 180 reactors. As of 2013, attaining a net energy gain from
sustained nuclear fusion reactions, excluding natural fusion power sources such as the Sun,
remains an ongoing area of international physics and engineering research. More than 60 years
after the first attempts, commercial fusion power production remains unlikely before 2050
3.Hydro power Plant- Hydro-power or water power is power derived from the energy of
falling water and running water, which may be harnessed for useful purposes. Since ancient
times, hydro-power has been used for irrigation and the operation of various mechanical devices,
such as watermills, sawmills, textile mills, dock cranes, domestic lifts, power houses
and paint making.
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Since the early 20th century, the term has been used almost exclusively in conjunction with the
modern development of hydro-electric power, which allowed use of distant energy sources.
Another method used to transmit energy used a trompe, which produces compressed air from
falling water. Compressed air could then be piped to power other machinery at a distance from
the waterfall. Hydro power is a renewable energy source
Hydropower is produced in 150 countries, with the Asia-Pacific region generating 32 percent of
global hydropower in 2010. China is the largest hydroelectricity producer, with 721 terawatt-
hours of production in 2010, representing around 17 percent of domestic electricity use. There
are now four hydroelectricity plants larger than 10 GW: the Three Gorges Dam and Xiluodu
Dam in China, Itaipu Dam across the Brazil/Paraguay border, and Guri Dam in Venezuela.
5.Steam turbine- A steam turbine is a device that extracts thermal energy from
pressurized steam and uses it to do mechanical work on a rotating output shaft. Its modern
manifestation was invented by Sir Charles Parsons in 1884.
Because the turbine generates rotary motion, it is particularly suited to be used to drive
an electrical generator – about 90% of all electricity generation in the United States (1996) is by
use of steam turbines. The steam turbine is a form of heat engine that derives much of its
improvement in thermodynamic efficiency from the use of multiple stages in the expansion of
the steam, which results in a closer approach to the ideal reversible expansion process.
6.Gas turbine- A gas turbine, also called a combustion turbine, is a type of internal
combustion engine. It has an upstream rotating compressor coupled to a downstream turbine, and
a combustion chamber in-between.
The basic operation of the gas turbine is similar to that of the steam power plant except that air is
used instead of water. Fresh atmospheric air flows through a compressor that brings it to higher
pressure. Energy is then added by spraying fuel into the air and igniting it so the combustion
generates a high-temperature flow. This high-temperature high-pressure gas enters a turbine,
where it expands down to the exhaust pressure, producing a shaft work output in the process.
The turbine shaft work is used to drive the compressor and other devices such as an electric
44
generator that may be coupled to the shaft. The energy that is not used for shaft work comes out
in the exhaust gases, so these have either a high temperature or a high velocity. The purpose of
the gas turbine determines the design so that the most desirable energy form is maximized. Gas
turbines are used to power aircraft, trains, ships, electrical generators, or even tanks.
7.Hydro turbine- A water turbine is a rotary engine that takes energy from moving water.
Water turbines were developed in the 19th century and were widely used for industrial power
prior to electrical grids. Now they are mostly used for electric power generation.
Water turbines are mostly found in Embankment dams to generate electric power from
water kinetic energy.
A varying current in the transformer's primary winding creates a varying magnetic flux in the
core and a varying magnetic field impinging on the secondary winding. This varying magnetic
field at the secondary induces a varying electromotive force (emf) or voltage in the secondary
winding. Making use of Faraday's Law in conjunction with high magnetic permeability core
properties, transformers can thus be designed to efficiently change AC voltages from one voltage
level to another within power networks.
Transformers range in size from RF transformers a small cm3 fraction in volume to units
interconnecting the power grid weighing hundreds of tons. A wide range of transformer designs
are used in electronic and electric power applications. Since the invention in 1885 of the first
constant potential transformer, transformers have become essential for the
AC transmission, distribution, and utilization of electrical energy
10.Oil field equipment (OFE)- An "oil field" or "oilfield" is a region with an abundance of oil
wells extracting petroleum (crude oil) from below ground. Because the oil reservoirs typically
extend over a large area, possibly several hundred kilo metres across, full exploitation entails
45
multiple wells scattered across the area. In addition, there may be exploratory wells probing the
edges, pipelines to transport the oil elsewhere, and support facilities.
12.Soot Blowers- A soot blower is a system for removing the soot that is deposited on the
furnace tubes of a boiler during combustion.
Steam is normally used as a medium for blowing away the soot since capital cost of steam
pressure reducing equipment and drain is less than the cost of compressors, motors and control of
air systems.
13.Valves- A valve is a device that regulates, directs or controls the flow of a fluid (gases,
liquids, fluidized solids, or slurries) by opening, closing, or partially obstructing various
passageways. Valves are technically valves fittings, but are usually discussed as a separate
category. In an open valve, fluid flows in a direction from higher pressure to lower pressure.
The simplest, and very ancient, valve is simply a freely hinged flap which drops to obstruct fluid
(gas or liquid) flow in one direction, but is pushed open by flow in the opposite direction. This is
called a check valve, as it prevents or "checks" the flow in one direction
46
processes such as distillation, steam power plants and other heat-exchange systems. Use of
cooling water or surrounding air as the coolant is common in many condensers.
15.Heat exchanger- A heat exchanger is a piece of equipment built for efficient heat
transfer from one medium to another. The media may be separated by a solid wall to prevent
mixing or they may be in direct contact. They are widely used in space heating, refrigeration, air
conditioning, power plants, chemical plants, petrochemical plants, petroleum refineries, natural
gas processing, and sewage treatment. The classic example of a heat exchanger is found in
an internal combustion engine in which a circulating fluid known as engine coolant flows
through radiator coils and air flows past the coils, which cools the coolant and heats the
incoming air.
16.Pumps- A pump is a device that moves fluids (liquids or gases), or sometimes slurries, by
mechanical action. Pumps can be classified into three major groups according to the method they
use to move the fluid: direct lift, displacement, and gravity pumps.
Pumps operate by some mechanism (typically reciprocating or rotary), and consume energy to
perform mechanical work by moving the fluid. Pumps operate via many energy sources,
including manual operation, electricity, engines, or wind power, come in many sizes, from
microscopic for use in medical applications to large industrial pumps.
17.Desalination- Desalination, refer to any of several processes that remove some amount off
salt and other minerals from saline water. More generally, desalination may also refer to the
removal of salts and minerals, as in soil desalination.
Salt water is desalinated to produce fresh water suitable for human consumption or irrigation.
One potential by product of desalination is salt. Desalination is used on many
seagoing ships and submarines. Most of the modern interest in desalination is focused on
developing cost-effective ways of providing fresh water for human use. Along with
recycled wastewater, this is one of the few rainfall-independent water sources
18.Water treatment plants- Water treatment is, collectively, the industrial-scale processes
that makes water more acceptable for an end-use, which may be drinking, industry, or medicine.
Water treatment is unlike small-scale water sterilization that campers and other people in
wilderness areas practice. Water treatment should remove existing water contaminants or so
reduce their concentration that their water becomes fit for its desired end-use, which may be
safely returning used water to the environment.
47
The processes involved in treating water for drinking purpose may be solids separation using
physical processes such as settling and filtration, and chemical processes such
as disinfection and coagulation.
The biggest benefit of automation is that it saves labor, however, it is also used to save energy
and materials and to improve quality, accuracy and precision.
21.Solar Photo voltaic- A solar cell (also called a photovoltaic cell) is an electrical device that
converts the energy of light directly into electricity by the photo voltaic effect. It is a form
of photoelectric cell, defined as a device whose electrical characteristics—e.g. current, voltage,
or resistance—vary when exposed to light.
Cells can be described as photovoltaic even when the light source is not
necessarily sunlight (lamplight, artificial light, etc.) Photovoltaic cells are used as a photo
detector (for example infrared detectors), detecting light or other electromagnetic radiation near
the visible range, or measuring light intensity.
22.Bus ducts- n electrical power distribution, a bus bar (also spelled bus bar, or sometimes
as buss bar or buss bar, with the term bus being a contraction of the Latin omnibus -
meaning for all) is a strip or bar of copper, brass or aluminum that conducts electricity within a
switchboard, distribution board, substation, battery bank or other electrical apparatus. Its main
purpose is to conduct a substantial current of electricity, not to function as a structural member.
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23.Insulators- An electrical insulator is a material whose internal electric charges do not flow
freely, and therefore make it very hard to conduct an electric current under the influence of
an electric field. A perfect insulator does not exist, but some materials such as glass, paper and
Teflon, which have high resistivity, are very good electrical insulators. A much larger class of
materials, even though they may have lower bulk resistivity, are still good enough to
insulate electrical wiring and cables. Examples include rubber-like polymers and most plastics.
Such materials can serve as practical and safe insulators for low to moderate voltages (hundreds,
or even thousands, of volts).
24.Control panel- A control panel is a flat, often vertical, area where control or monitoring
instruments are displayed. They are found in factories to monitor and control machines or
production lines and in places such as nuclear power plants, ships, aircraft and mainframe
computers. Older control panels are most often equipped with push buttons and analog
instruments, whereas today in many cases touch screens are used for monitoring and control
purposes.
27.Electrical machines- Electric machines (i.e., electric motors) consume approximately 60% of
all electricity produced. Electric machines (i.e., electric generators) produce virtually all
electricity consumed. Electric machines have become so ubiquitous that they are virtually
overlooked as an integral component of the entire electricity infrastructure. Developing ever
49
more efficient electric machine technology and influencing their use are crucial to any global
conservation, green energy, or alternative energy strategy.
Compressor (software), an application used with Final Cut Studio Gas compressor, a device that
pressurizes fluids generally Air compressor, a device specifically for compressing air to power
other tools
A device applying audio data compression to an audio signal dynamic range compression to an
audio signal video compression to a video signal.
29.Traction motors- Traction, or tractive force, is the force used to generate motion between a
body and a tangential surface, most generally through the use of dry friction, though the use of
off shore force of the surface is also commonly used
Traction can also refer to the maximum tractive force between a body and a surface, as limited by
available friction; when this is the case, traction is often expressed as the ratio of the maximum
tractive force to the normal force and is termed the coefficient of traction (similar to coefficient
of friction).
These are the products that are manufactured and developed at different units of BHEL.
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PRODUCT PROFILE
Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a name to
reckon with in the industrial world. It is the largest engineering and manufacturing enterprise of
its kind in India and one of the leading international companies in the power field. BHEL offers
over 180 products and provides systems and services to meet the needs of core sectors like:
power, transmission, industry, transportation, oil & gas, non-conventional energy sources and
telecommunication. A wide-spread network comprising 15 manufacturing divisions, 8 service
centers, 4 power sector regional centers, 18 regional offices, besides a large number of project
sites spread all over India and abroad, enables BHEL to be close to its customers and cater to
their specialized needs with total solutions - efficiently and economically. An ISO 9000
certification has given the company international recognition for its commitment towards quality.
With an export presence in more than 70 countries, BHEL is truly India’s industrial ambassador
to the world.
PRODUCT RANGE
This list is intended as a general guide and does not represent all of BHEL's products and
systems.
Steam turbines and generators of up to 500MW capacity for utility and combined-cycle
applications; capability to manufacture steam turbines with super critical steam cycle
parameters and matching generator up to 1000 MW unit size.
Steam turbines for CPP applications; capability to manufacture condensing, extraction, back
pressure, injection or any combination of these types.
Gas turbine based co-generation and combined-cycle systems for industry and utility
applications.
Custom-built conventional hydro turbines of Kaplan, Francis and Pelton types with matching
generators, pump turbines with matching motor-generators.
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Mini/micro hydro sets.
Spherical, butterfly and rotary valves and auxiliaries for hydro station
DG POWER PLANTS
HSD, LDO, FO, LSHS, natural-gas/biogas based diesel power plants, unit rating up to 20MW
and voltage up to 11kV, for emergency, peaking as well as base load operations on turnkey
basis.
INDUSTRIAL SETS
Gas turbines land matching generators ranging from 3 to 260MW (ISO) rating.
Industrial stream turbines and gas turbines for drive applications and co-generation applications.
BOILERS
Steam generators for utilities, ranging from 30 to 500MW capacity, using coal, lignite, oil,
natural gas or a combination of these fuels: capability to manufacture boilers with super critical
parameters up to 1000 MW unit size.
Steam generators for industrial applications, ranging from 40 to 450t/hour capacity using coal,
natural gas, industrial gases, biomass, lignite, oil, biogases or a combination of these fuels.
Stoker boilers.
Chemical recovery boilers for paper industry, ranging from capacity of 100 to 1000 t/day of dry
solids.
Pressure vessels.
BOILER AUXILIARIES
Fan
Axial reaction fans of single stage and double stage for clean air application, with capacity
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ranging from 25 to 800m3/s and pressure ranging from 120 to 1,480 m of gas column.
Axial impulse fans for both clean air and flue gas applications, with capacity ranging from 7
to 600m3/s and pressure up to 700 m of gas column.
Single and double-suction radial fans for clean air and dust-laden hot gases applications up to
400oC, with capacity ranging from 4 to 600m3/s and pressure ranging from 150 to 1,800 m of
gas column.
Air-Pre-heaters
Gravimetric Feeders
Pulverizes
Pulse Jet and Reverse Air Type Fabric Filters (Bag Filters)
Electrostatic Precipitators
Electrostatic precipitators of any capacity with efficiency up to 99.9% for utility and industrial
applications.
Mechanical Separators
Soot Blowers
Long retractable soot blowers (travel up to 12.2m), wall de sluggers, rotary blowers and
temperature probes and related control panels operating on pneumatic, electric or manual
mode.
Valves
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High and medium-pressure valves, cast and forged steel valves of gate, globe, non-return
(swing-check and piston lift-check) types for steam, oil and gas duties up to 600 mm
diameter, 250 kg/cm2 pressure and 540oC temperature.
High-capacity safety valves and automatic electrical operated pressure relief valves for set
pressure up to 200 kg/cm2 and temperature up to 550oC.
Safety relief valves for applications in power, process and other industries for set pressure up
to 175 kg/cm2 and temperature up to 565oC.
Piping Systems, Constant Load Hangers, Clamp and Hanger components, variable Spring
hangers for power stations upto 850 MW capacities, combined cycle plants, industrial boilers
and process industries.
Surface condensers.
Columns.
Reactors, drums.
PUMPS
Condensate pumps.
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Lubricating oil pumps.
Man-machine interface.
SWITCHGEARS
Switchgear of the various types for indoor and outdoor applications and voltage ratings up to
400 kV.
BUS DUCTS
Bus-ducts with associated equipment to suit generator power output of utilities of up to 500
MW capacity.
TRANSFORMERS
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HVDC transformers and reactors up to + 500 kV rating.
Instrument transformers:
Special transformers: earthing; furnace; rectifier; electrostatic precipitator; freight loco and AC
EMU and traction transformers.
INSULATORS
Solid core insulators of 25 kV rating (both porcelain and hybrid) for railways.
Disc insulators for 800 kV AC and HVDC transmission lines (BHEL is the first Indian
manufacturer to supply such insulators).
CAPACITORS
Power capacitors for industrial and power systems of up to 250 kVAr rating for application up
to 400 kV.
Low Tension Thyristor Switched Capacitors (LTTSC) for dynamic power factor correction
ENERGY METERS
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BHEL International Undertakings
International Business
BHEL has, over the years, established its references in 75 countries across all the six continents
of the world. These references encompass almost the entire range of BHEL products and
services, covering Thermal, Hydro and Gas-based turnkey power projects, Substation projects
and Rehabilitation projects, besides a wide variety of products like; Transformers, Compressors,
Valves and Oil field equipment, Electrostatic Precipitators, Photovoltaic equipment, Insulators,
Heat Exchangers, Switchgears, Castings and Forgings etc. Some of the major successes achieved
by BHEL have been in Gas-based power projects in Oman, Libya, Malaysia, UAE, Saudi
Arabia, Iraq, Bangladesh, Sri Lanka, China, Kazakhstan, Belarus, Yemen; Thermal power
projects in Cyprus, Malta ,Libya, Egypt, Indonesia, Thailand, Malaysia, Sudan, Syria, Ethiopia,
Senegal, New Caledonia, Ukraine; Hydro power plants in New Zealand, Malaysia, Azerbaijan,
Bhutan, Nepal, Taiwan, Tajikistan, Vietnam, Rwanda, Thailand, Afghanistan, Democratic
Republic of Congo; and Substation projects & equipments in various countries. Execution of
these overseas projects has also provided BHEL the experience of working with world renowned
consulting organizations and inspection agencies.
The Company has been successful in meeting demanding requirements of International markets,
in terms of complexity of work as well as technological, quality and other requirements viz. HSE
requirements, financing packages and associated
O&M services, to name a few. BHEL has proved its capability to undertake projects on fast-
track basis. BHEL has also established its versatility to successfully meet the other varying needs
of various sectors, be it captive power, utility power generation or for the oil sector. Besides
undertaking turnkey projects on its own, BHEL also possesses the requisite flexibility to
interface and complement other international companies for large projects, and has also exhibited
adaptability by manufacturing and supplying intermediate products.
The company is taking a number of strategic business initiatives to fuel further growth in
overseas business. This includes firmly establishing itself in target export markets, positioning of
BHEL as a regular EPC contractor in the global market both inutility and IPP segments and
exploring various opportunities for setting up overseas joint ventures etc.
57
BHEL in the Middle East (in consideration with the Arab World)
The Middle East and North Africa (MENA) region is the key export territory of BHEL, where
it entered over three decades back. Today, it is firmly established in this market, having secured
orders for a wide range of projects, products and services. BHEL has contributed in the power
development of this region by executing a number of power projects and products for the core
sectors of economy. During the last three decades, BHEL has contracted around 15 power
projects in this region and a number of substations, rehabilitation, also carried out a turnkey
project for a 42-MW power station at Jizan in Saudi Arabia. The success of this project resulted
in the company receiving repeat orders for similar work, with the added responsibility of
carrying out operation and maintenance of generation and transmission systems.
BHEL in Egypt
BHEL has executed the boiler project for the 230-MW Al-Arish Power Station in Egypt. It has
recently bagged two export orders for transformers from the Egyptian Electrical Transmission
Company (EETC), Egypt. These orders valued at approximately US$ 31 million entail supply,
installation and commissioning of transformers of nearly 3000 MVA capacity.
BHEL in Sudan
In 2006, BHEL has received a turnkey contract worth approximately US$ 457 million for setting
up a 500-MW steam power plant in Sudan. This is the single largest export order received by the
company and also the largest export order of any capital goods manufacturing company in
India. In this project, the company will install four units of 125 MW each and crude oil-fired
boilers at the Kosti Power Plant in Sudan.
BHEL in Iraq
In Iraq, BHEL began its operations over two decades back, with a contract for a rehabilitation
project. In the recent past, BHEL has executed three large-size gas turbine-based projects in Iraq.
BHEL was probably the first company to reinstall a power generating plant in post-war Iraq.
BHEL in Libya
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In Libya, BHEL entered three decades back by executing the 2x120-MW Tripoli West Thermal
Power Project as well as a series of projects for rehabilitation and overhauling of power projects.
Currently, BHEL is executing the 600-MW Western Mountain Gas Turbine based power project,
one of the largest power plants in the country .BHEL's success in Libya has led to the formation
of an Indo-Libyan company that focuses on power sector in Libya.
BHEL in Oman
Since its entry in to Oman in 1995, BHEL has contracted seven prestigious power projects on
EPC basis; from diverse sectors viz. utility power, oil and industrial sectors for their captive use.
Out of these, BHEL has successfully completed five projects, and two projects (252 MW and
126 MW) are presently under execution. In addition, BHEL is currently executing orders for
three compressor projects and supply of oil field equipment to the petroleum sector. The major
customers of the company include Petroleum Development Oman (PDO), MHEW Oman, Oman
Cement Company and Daleel Petroleum. Some of the plants set up by BHEL are completely
unmanned power stations, which are capable of being operated from distant remote-controlled
centers.
Future Plans
Expanding Business
The MENA region continues to contribute significantly to BHEL's important target in the export
arena - supported by ongoing project offices in the UAE, Oman and Libya. BHEL is pursuing a
number of opportunities to expand its presence in this region .BHEL views MENA market as one
of the best avenues for future growth. It is also scouting for overseas acquisitions. BHEL is
positioning itself as a reliable and regular EPC contractor in the global market. It is also open to
setting up strategic alliances. The company intends to extend its focus on areas such as power
generation, and transmission and development (T&D). It is also looking to participate in
overseas government-funded projects.
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Gasification Combined Cycle (IGCC) technology that aids the development of clean coal
technology. BHEL is focusing on the development of boilers with super-critical parameters. To
meet the standards for new turbines in the Middle East and other markets, the company plans to
introduce higher rating hydro turbine generator sets and gas turbines of an advanced class. It is
focusing on emerging opportunities in nuclear power generation.
Success Factors:
Successful Initiatives
BHEL offers a wide range of products and services .It has maintained its competitiveness in the
global market by taking several initiatives such as design to cost, purchasing and supply
management, lean manufacture, IT effectiveness, structured product development, organizational
focus on project deliveries, etc. This has strengthened the company's presence in the Arab world.
19
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PART-III
Outline
• 1 Definitions
• 3 Activities/functions
• A. Strategic level
• B. Tactical level
Definition SCM- Managing upstream and down stream value added flow of materials, final
goods and related information among suppliers; company; resellers; final consumers is
supply chain management.
Definition Logistics- The process of planning, implementing, and controlling the efficient,
cost-effective flow and storage of goods, services, and related information, from point of
origin to point of consumption, for the purpose of conforming to customer requirements.
SCM Variability-
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Supply Chain Management-
Environmental Sensitivity-
PRESENT
FUTURE
Distribution Strategy
Functions are increasingly being outsourced to other entities that can perform the
activities better or more cost effectively.
Strategic Level-
• Strategic network optimization, including the number, location, and size of warehousing,
• Product life cycle management, so that new and existing products can be optimally
integrated into the supply chain and capacity management activities.
Tactical Level-
Benchmarking.
Milestone payments.
Importance of SCM-
No Scarcity
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More Efficiency
On time Delivery
Just in time
• Customer service
Order fulfilment
• Manufacturing flow
• Supplier relationship
• Returns management
Global-
Globalization
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SWOT Analysis-BHEL
Strengths:
1. Public sector company.
4. Ability to set up power plants on turnkey basis, complete know- how for manufacture of
entire equipment is available with the company.
6. Fully equipped to take capital maintenance and servicing of the power plants.
7. Largest source of domestic business leading to major presence and influence in the
market.
Weaknesses:
1. Difficulty in keeping up the commitments on the product delivery and desired sequence
of supplies. .
3. Inability to provide supplier’s credit, soft loans and financing of power projects .
4. Due to poor financial position of state electricity boards, which are the major customers
of BHEL in India, liquidity position of BHEL is not satisfactory.
Opportunities:
1. Demand for power and hence plant equipment is expected to grow .
2. Private sector power plants to offer expanded market as utilities suffers resource crunch .
3. Ageing power plants would give rise to more spares and services business. .
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Threats:
1. Purchase preference may be extended to distribution sector
4. Political pulls and pressures may jeopardize the hole process, raising alarm about the
privatization and being anti-people
BHEL's investment in R&D is amongst the largest in the corporate sector in India.
During the year 2012-13, the company invested about Rs. 1,252 Crore on R&D efforts, which
corresponds to nearly 2.50% of the turnover of the company, focusing on new product and
system developments and improvements in existing products for cost competitiveness, higher
reliability, efficiency, availability and quality etc. To meet customer expectations, the company
has upgraded its products to contemporary levels through continuous in-house efforts as well as
through acquisition of new technologies from leading engineering organizations of the world.
The IPR (Intellectual Property Rights) capital of BHEL grew by 21.5% in the year, taking the
total to 2170.
The Corporate R&D division at Hyderabad leads BHEL’s research efforts in a number of areas
of importance to BHEL’s product range. Research & product development (RPD) Groups for
each product group at the manufacturing divisions play a complementary role. BHEL has
established Centers of Excellence for Simulators, Computational Fluid Dynamics, Permanent
Magnet Machines, Surface Engineering, Machine Dynamics, Centre for Intelligent Machines and
Robotics, Compressors & Pumps, Centre for Nano Technology, Ultra High Voltage Laboratory
at Corporate R&D; Power Electronics and IGBT & Controller Technology at Electronics
Division, Bangalore, and Advanced Fabrication Technology and Coal Research Centre at
Tiruchirappalli.
BHEL has established four specialized institutes, viz., Welding Research Institute (WRI) at
Tiruchirappalli, Ceramic Technological Institute (CTI) at Bangalore, Centre for Electric Traction
(CET) at Bhopal and Pollution Control Research Institute (PCRI) at Haridwar. Amorphous
Silicon Solar Cell plant at Gurgaon pursues R&D in Photo Voltaic applications.[18]
66
Significantly, BHEL is one of the only four Indian companies and the only Indian Public Sector
Enterprise figuring in 'The Global Innovation 1000' of Booz & Co., a list of 1,000 publicly traded
companies which are the biggest spenders on R&D.
Corporate social responsibility
BHEL continues to act as a responsible corporate citizen committed to working for the welfare
of society through inclusive growth aimed at capacity building, empowerment of communities,
environment protection, development of backward regions and upliftment of the marginalized
and under-privileged sections of the society. BHEL has provisioned a substantial budget for CSR
& sustainability activities in line with DPE guidelines for the same.
In line with its CSR commitment, the company supported various social initiatives across the
country by undertaking projects in diversified areas like education, community development,
health, environmental protection, vocational training, skill development, disaster/calamity
management and infrastructure development. BHEL also launched a unique company-wide
campaign titled ’Vision to All-BHEL’s Call’ under which more than 52,000 pledges have been
received for eye donation from employees, their families, relatives and other support staff of the
company. BHEL has also ventured into yet another noble cause for organ donation.
BHEL provides state-of-the-art engineering/training for talent up gradation and training in soft
skills to trade apprentices, diploma and engineering degree holders. During 2012-13, 6,139
apprentices were trained in the company. In addition, 8390 students/trainees from various
professional institutions underwent vocational training. The company is also providing
employability training to 100 youth of Jammu & Kashmir each year under its flagship skill
development project- ’UDAAN’ over a period of five years starting from the year 2012-13.
As the world’s largest global corporate citizenship initiative, the Global Compact is the first and
the foremost concern which is exhibiting and building the social legitimacy of business and
markets. BHEL is a life member of United Nations Global Compact (UNGC), India Network.
BHEL reiterated its commitment to the United Nations’ Global Compact program and continued
to play a lead role in promoting the set of core values enshrined in its ten principles on human
rights, labor standards, environment and anti-corruption and intends to advance UNGC
Principles within the company’s sphere of influence and has ingrained it in its strategy, culture
and day-to-day operations. The company demonstrated its commitment through regular pooling
of communication of progress (COP) on the UNGC website and has also taken a lead role in
promoting UNGC principles in other Indian organizations through the Global Compact network
by organizing case studies/organizational experience sharing & addressing the Global Compact
principles in the Indian context. The company publically advocates UN Global Compact
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principles to its stakeholders through its Annual Report, Press Conferences and other public
communiqués
68
Bibliography:
www.bhel.com
www.bhelbpl.co.in
www.wikipedia.org
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