Bharat Heavy Electricals Limited (BHEL) is the largest engineering and manufacturing company in India and plays a pivotal role in the country's heavy electrical equipment industry. As the largest energy sector manufacturer in India with a global presence, inventory management is a crucial process for BHEL's smooth operations across all departments. Effective inventory management is important for cost control in today's competitive global market. This report analyzes BHEL's current inventory management process and methods, identifies any shortcomings, and provides recommendations to improve inventory control and eliminate wastage. The report is divided into two parts: the first examines BHEL's inventory control process and methods, while the second analyzes the efficiency and provides recommendations.

1. Executive summary
BHARAT HEAVY ELECTRICALS LIMITED (BHEL) happens to be the largest engineering
and manufacturing company of its kind in India. The establishment of BHEL in 1964 was
the genesis of heavy electrical equipment industry in India. The company is performing
very well in this highly competitive era, earning profits consistently and paying dividends
uninterruptedly. With its top-notch performance BHEL attained the coveted ‘Maharatna’
status in 2013.
Being the largest manufacturing company operating in energy sector in India and having
its presence worldwide, inventory and its management becomes most essential part of
the company. Inventory management is considered and recognized as the central
process of any manufacturing Unit, this inventory is a matter of concern for all the
departments in the company for its smooth operations. In this highly challenging global
market the need for cost control and cost-cutting is of paramount. This is why inventory
management as a tool for eliminating wastage and controlling inventory cost, is now
considered as an integral part of industrial management.
Thus, creating the need for the study. The report titled “Inventory Management in BHEL”
deals with the problem of inventory control in the company and tries to provide solutions
for removing any shortcomings in the inventory management process or methods of the
company. Following report is divided into two parts:
First part, aims at the understanding of the process and methods of inventory
control in the company.
Second part, aims at analyzing the efficiency of the inventory control in the
company and providing valuable recommendations accordingly.