Means by which anorganization will achieve its vision It is a statement of design for creating a desirable future, stated in present terms Expression of strategic intent is to help individuals and organizations share the common intention to survive and continue or extend themselves through time and space.
Incorporated as Heavy Electricals (Pvt.) Limited in August 1956 Manufacture electrical equipment required for generation, transmission and utilization of electrical power Heavy Electricals (India) Limited formally merged with Bharat Heavy Electricals Limited (BHEL) in 1974
BHEL is one of the largest engineering and manufacturing enterprises in India and is one of the leading international companies in the field of power Work force of 62,500, out of which over 11,000 are highly qualified engineers BHEL has 14 manufacturing units The Company Profile
Sector Details Power transmission sector, high voltage direct current (HVDC) technology. It manufactures a vast range of transformers, instrument transformers, thyristor valves, and associated control equipment. Industrial equipment sector, BHEL supplies a wide variety of electrical, electronic and mechanical equipment to a host of industries, viz. fertilizers, petrochemicals, refineries, coal, steel etc. Oil and Gas, BHEL has designed, manufactured and serviced various types of on-shore deep drilling rigs, super-deep drilling rigs, mobile rigs and desert rigs with matching draw works and hoisting equipment Telecommunication area BHEL has manufactured electronic private automatic branch exchanges (PABXs) and rural automatic exchanges (RAXs) for India Non-conventional energy, BHEL has contributed by way of manufacturing equipment like solar water heating systems, solar photo-voltaic systems and wind electric generators
Transportation sector, over 66% of the Indian Railways, is equipped with traction equipment by BHEL. Kolkata Metro is equipped with BHEL drives and controls. Other products in the sector include traction generators/ alternators, transformers, sub-station equipment, vacuum circuit breakers, locomotive bogies, smoothing tractors, exciters, converters, inverters,
The company offers very stringent credit facilities to the customers and this is a weakness when compared in the face of rising competition.
The company is vertically integrated, which could have been avoided by outsourcing its components for power generation and transmission. This could have reduced the cost.
Opportunities The power sector reforms are expected to pick up in the near future in India, which would directly benefit BHEL. Increase in defence budget will increase the topline for the company. The business of modernization and renovations of power plants is expected to grow in India. The disinvestment plans of the government would bring in new resources and experience into the company. Joint Venture with Siemens in the name of Powerplant Performance Improvement Ltd. (PPIL), is a major strength for the company. This tie-up will be beneficial as there is a lot of scope for business. During FY00 the PPIL received orders worth Rs. 320 crore.
Threats The global trend of consolidation has already resulted in a fall in turnover of the company and this will prove to be a major threat in the years to come as well Unsatisfactory financial performances
Technological Strategy Research and Development Strategy Work-Culture and Philosophy Vendor Development Quality Strategy Manufacturing Strategy Flexible Manufacturing Technology Share Point Portal Server Other strategies
Technological Strategy BHEL is the leader company to provide a technology to the various products. The 2 ways of adopting technological strategies are:
Acquiring technology & making product out of it through licensing.
Upgrading its product engineering and manufacturing technology base by induction of state-of-the-art technologies.
Upgrading equipment and facilities to maintain quality leadership.
BHEL is amongst the highest investors in Research and Development in the country. The R&D efforts have made significant contributions to almost all areas of operation of BHEL; a few among them are: Research and Development Strategy
Atmospheric Bubbling fluidized bed Combustion (FBC) boiler up to 100 tones/hr. Direct Ignition of Pulverized Coal (DIPC). Ceramic liners for abrasion resistance application in thermal power plants. Absorption of know-how from its international collaborators and integrating them with indigenous developments in its R&D facilities.
Work-Culture and Philosophy It conducts regular training programs for its employees to develop them into fulfilled individuals and effective managers. Training programs include: General management Behavioral science Functional management
Advantages of training programs: Development of a committed and motivated work force. Encouragement to all employees to participate in all activities.
Vendor Development Global meeting of about 200 vendors was held at Hardwar
Achieve highest international standards of quality at every stage of operation Corporate quality department Quality Strategy
Manufacturing Strategy Flexible Manufacturing Systems (FMSs), Automated Guided Vehicles (AGVs), robotics, Automated Storage and Retrieval Systems (ASRSs), Computer Aided Design (CAD), and Computer Aided Manufacturing (CAM) Acquire more and more advanced machines whereby the productivity can be improved, cycle time reduced, cost of production lowered and the rate of stock removal is enhanced
Flexible Manufacturing Technology International competition, shorter delivery times, targets and commitments and other internal and external factors Ideal Time Reduced Reduction in delivery time and levels of inventory and WIP Increase the productivity with an underlying strategy of maximisingprofits through lowering unit costs
-BHEL enter in the small boilers segment. -35 tonnes to 200 tonnes of steam an hour. -Strategic enable enough to take quick, cost-saving decisions . - Orders at hand, which further set to achieve a turnover of over Rs 800 crore in the current year.
Induction of technology-Higher cpapcity set viz-800MW thermal set,250MW
Renewable Energy-non-conventional energy sources :
-solar water and air heating systems -order from the A.P. State Electricity Board to set up a 2 MW wind farm at Ramagiri in Anantapur district -high level of indigenisation in manufacturing single crystal photovoltaic cells -battery vehicle technology in India
-Integrate Search & document management with ever day tools- Microsoft internet Explorer & Microsoft office application to help ,create, manage and share content. -Create a division portal website. -Bidding for international and national power project, procuring, integrating all system and delivering a complete project to the customer within a stipulated timeframes. -Improve the intra- team collaboration
Current Strategy Focusing on high end work:- “Of taking minority stakes in super-critical projects and exiting on project completion is a positive step towards venturing” ...”
BHEL bags Rs.2,630 crore order for two 525 MW units in Orissa
-Green-field power project at Orissa - Monnet Power Company Limited (MPCL). -Setting up the extended Boiler Turbine Generator (BTG) package,
BHEL sets up new Centralised Stamping Unit at Jagdishpur in Uttar Pradesh
-direct and indirect employment opportunities for about 1,000 people, including contract labor and outsourcing of services -contributed over 88,000 MW to the installed power generating base in the country
BHEL to enhance capabilities to manufacture nuclear reactor components
-Steam Generators, Reactor Headers and Nuclear Turbine Generator Sets to Nuclear Power Corporation of India Ltd. (NPCIL) -220 MW and 540 MW reactors
BHEL bags Rs.2600 Crore Contract from Jindal India Thermal Power Ltd.
BHEL registers 23.3% growth in sales in first quarter
Conclusion Strategic intent is a very important part which should be developed and implemented for the organization’s success and growth and in the strategic intent the various strategies which are adopted by various organizations. BHEL is poised to take up the challenge and play a major role in meeting the energy demand of the country. BHEL make the country Self Reliant in Power Plant Equipment manufacture, the company has grown in stature in both domestic and international markets BHEL expected to cater to both power and Industry sectors and will play a major role in meeting the energy demand of the country.After studying BHEL we have found out that it is always adopting innovative strategies so that it can continue to grow and also earn profits for its shareholders.