Porters five force model analysis of BHEL

1. Impact of BHEL & RELIANCE
on
Economy

2. Products
BHEL RELIANCE
 Gas and Steam
Turbines, Boilers,
generators, Heat
Exchangers,
Pumps,programmable
logic
controllers, sensors, vari
able frequency
drives, uninterruptible
power supplies,circuit
breakers, switchgear, swi
tchboards, motor
controllers
The Company's operations
can be classified into four
segments namely:
 Petroleum Refining and
Marketing business
 Petrochemicals business
 Oil and Gas Exploration
& Production business
 Others

3. BACKGROUND
BHEL RELIANCE
 Revenue INR 50,156
Crores (2012-13)
 Net income INR 6,615
Crores (2012-13)
 Total assets INR 71,753
Crores (2012-13)
 Total equity INR 30,533
Crores (2012-13)
 Employees48,399
(March 2013)
 Revenue INR 360,297.00
crores (2012-13)
 Net Income INR 21,003.00
crores (2012-13)
 Total Assets INR 234543.00
crores (2012-13)
 Total Equity INR 2,936.00
crores (2012-13)

4. Shareholding
BHEL RELIANCE

5. Competitors
Bhel Reliance Industries
 Larsen
 Suzlon
 BEML
 BGR Energy
 Alfa Laval.
 IOC
 BPCL
 HPCL
 Essar Oil

6. Project Executions-BHEL

7. Projects execution-RIL
Reliance build major manufacturing
plants at following places:-
 Reliance Rio and Bharti signed an agreement for the proper
utilization of fiber connecting from Singapore to India.
 In February 2012, RIL and SIBUR formed a JV to
manufacture butyl rubber in India with targeted production
capacity of 100,000 tonnes per annum. This JV will be the
fourth largest producer of butyl rubber globally.
 Jamnagar Refinery build on the area of 7500 acres with a
cost of 25000 crores in the year 09-10

8. Dividend per Share
0 5 10 15 20 25 30 35
2013
2012
2011
2010
2009
Dividend Per Share
Dividend Per Share
BHEL
0 2 4 6 8 10 12 14
2013
2012
2011
2010
2009
divident per share
divident per share
Relianc
e

9. Operating profit margin
0 5 10 15 20 25
2012
2011
2010
2009
Operating Profit Margin(%)
Operating Profit Margin(%)
BHEL
0 5 10 15 20
2013
2012
2011
2010
2009
operating profit margin
operating profit margin
Relianc
e

10. Debt coverage
0 50 100 150 200 250
2013
2012
2011
2010
2009
Interest Cover
Interest Cover
BHEL
0 2 4 6 8 10 12 14
2013
2012
2011
2010
2009
Interest Cover
Interest Cover
Reliance

11. OPPORTUNITIES
BHEL RELIANCE
 Increase in Defense
budget will increase
revenue for BHEL.
 Contract by NTPC worth
$52 billion.
 Technology
collaborations with
Siemens for better
performance.
 Power sector reforms
expected to kick of in
coming future.
 The agreement of Reliance
Rio and bharti for the
proper utilization of fiber
optics.
 Growing Demand of
petroleum products.
 RIL is the sole industry
partner in the New
Millennium Indian
Technology Leadership
Initiative (NMITLI) project
on indigenous Fuel Cell
Technology Development.

12. LIMITATIONS
BHEL RELIANCE
 Heavy dependency on
NTPC.
 PSU Status.
 Government allowing
import of 10yr old capital
goods.
 Stringent Credit Facility.
 Government policies for
DG-6 from ministry of oil.
 Government clearance
for JV into oil exploration.

13. STRENGTH
BHEL RELIANCE
 Execution of contracts.
 Strong R&D.
 B.O.D has a strong
vision and mission.
 N.T.P.C contracts
 Building partnerships
with broadcasters and
telecom infrastructure
firms.
 RIL is involved in some
cutting-edge
technologies like fuel
cells, carbon fibres, bio-
fuels, and gasification of
several types of
feedstocks.

14. Porters 5 Force Model
BHEL Reliance Industries

15. NEW DEVELOPMENTS
BHEL RELIANCE
 New power reforms
 signs pact for setting up
renewable projects in
Yemen
 Integrated power, coal
ministry to be more
effective: UBS
 BHEL commissions hydro
power project in Himachal
Pradesh
 BHEL signs pact with
Indonesian firm to set up
power plant
 RIL To Invest US$5
Billion In KG-D6 Block,
India.
 RIL is setting up a $4
billion petroleum coke
gasification project that
will produce synthetic
gas that will replace
expensive LNG as fuel at
the refinery.
 Acquisition of Network18
the leading player in
digital space.
SOURCE: PTI