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Case study on bhel


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Case study on bhel

  1. 1. CASE STUDY ON BHEL (Bharat Heavy Electricals Limited ) Submitted by: ANISH MITTAL Mba/10/119
  2. 2. CONTENTS <ul><li>SUMMARY </li></ul><ul><li>FACT ANALYSIS </li></ul><ul><li>QUESTION HANDLING </li></ul><ul><li>SWOT ANALYSIS </li></ul><ul><li>RECOMMENDATON AND SUGGESTIONS </li></ul><ul><li>CONCLUSION </li></ul>
  3. 3. SUMMARY BHEL is a largest engineering company in India. It provides total systems to the core sectors of the Indian economy-power, industry and transportation .About two-thirds of the companies business is in power sector. It is a technology intensive company having collaborations with reputed international companies .It ranks”fortune 500” biggest industrial giants it’s operations are spread over 13 manufacturing plants and 8 service centers in India. BHEL employs about 46,050 people. The company was initially a totally public sector company and committed to quality.
  4. 4. Contd…. It receives orders from several countries for industrial equipments, including complete power station consultancy services & providing technical manpower. These countries includes USA, UK, West-germany, russia,etc. BHEL is recognized in the world market as a renovation services and maintenance expert. A number of its products such as hydro and thermal sets, boilers, compressor, industrial turbo sets and oilrigs are long production cycle items.
  5. 5. FACT ANALYSIS <ul><li>BHEL public sector company. </li></ul><ul><li>Core sectors of bhel are- power sector(2/3 rd ) industry and transportation. </li></ul><ul><li>Rank among fortune “500 companies” </li></ul><ul><li>Some of the companies : 13 manufacturing plants& its service centres, 46,050 employees. </li></ul><ul><li>Platform: worked in national and international platform. </li></ul>
  6. 6. CONTD…. OBJECTIVES: Growth: steady Profitability: reasonable and adequate return on capital employed. Customer focus: value for money. People-orientation: empowerment. Technology: indigenous technology Image: government company
  7. 7. Question handling <ul><li>Q. Critically evaluated BHEL’s objectives from the perspectives of financial management, in general& shareholders in particular? </li></ul><ul><li>Ans . It provides reasonable and adequate return on capital employed primarily through improvements in operational efficiency, capacity utilization and productivity and generate adequate internal resources to finance the company’s superior customer services with steady growth. </li></ul>
  8. 8. SWOT ANALYSIS <ul><li>STRENGTH: </li></ul><ul><li>Public sector company . </li></ul><ul><li>Sound engineering base and ability to assimilate . </li></ul><ul><li>Relatively stable industrial relationship . </li></ul><ul><li>Ability to set up power plants on turnkey basis, complete know- how for manufacture of entire equipment is available with the company . </li></ul><ul><li>Ability to manufacture or procure to supply spares. </li></ul><ul><li>Fully equipped to take capital maintenance and servicing of the power plants. </li></ul><ul><li>Largest source of domestic business leading to major presence and influence in the market. </li></ul><ul><li>Ability to successfully overhaul and renovate power stations equipment of different international companies.   </li></ul>
  9. 9. WEAKNESS: <ul><li>Difficulty in keeping up the commitments on the product delivery and desired sequence of supplies. . </li></ul><ul><li>Larger delivery cycles in comparison with international suppliers of similar equipment. . </li></ul><ul><li>Inability to provide supplier’s credit, soft loans and financing of power projects . </li></ul><ul><li>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. </li></ul><ul><li>Displacement of social objectives by political objectives, which may lead to redundant costs and also rising costs. </li></ul>
  10. 10. OPPORTUNITIES: <ul><li>Demand for power and hence plant equipment is expected to grow . </li></ul><ul><li>Private sector power plants to offer expanded market as utilities suffers resource crunch . </li></ul><ul><li>Ageing power plants would give rise to more spares and services business. . </li></ul><ul><li>Easy processing of joint ventures/ collaboration/import/ acquisition of new technology. . </li></ul>
  11. 11. THREATS: <ul><li>Increased competition both national and international. </li></ul><ul><li>Multilateral agencies reluctant to lend to power sector because of poor financial management of S.E.Bs . </li></ul><ul><li>Level playing ground not available, foreign companies spending much more on business promotion tactics . </li></ul>
  12. 12. Suggestions and recommendations <ul><li>Create a climate of unrest and annoyance among the workers to increase productivity. </li></ul><ul><li>Trade union must organized training programme for workers which can increase their level of awareness and develop them for more advance technology. </li></ul><ul><li>Personal benefits by the union leader should be abolished . </li></ul>
  13. 13. 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.
  14. 14. THANKYOU