Bharat Heavy Electricals Ltd. (BHEL) is India's largest engineering and manufacturing company, established in 1964 and owned by the Government of India. BHEL manufactures power generation and transmission equipment and operates in sectors including power, oil and gas, transmission, transportation, and solar. The company pursues strategies such as capacity enhancement, strategic focus on skills and recruitment, product cost competitiveness, and diversification into new growth areas like solar, nuclear, water, and transportation to position itself for steady profitable growth. BHEL researches and develops new technologies to meet current needs while preparing for future demand.

1. STRATEGY ANALYSIS
GROUP III

2. BHARATH HEAVY
ELECTRICALS LTD.
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3. Company Overview
• Bharat Heavy Electricals Limited (BHEL), owned by
Government of India, is a power plant equipment
manufacturer and operates
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.
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4. Products & Services
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5. Power Oil & Gas
Transmission
Transportation Industry Solar
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6. Strategies
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7. Capacity Enhancement Program:
(Timely, Planned & Scalable to meet Market Demand)
• Acquired BHPV(Bharat Heavy Plates & Vessel)
Vizag as 100% subsidiary in 2008. Slated to
enhance our capabilities in design, fabrication,
supply and erection of custom built process plant
equipments.
• BHEL Electrical Machines Ltd. (JVC between
BHEL & KEL (Kasargod)/ GoK) for
manufacturing of products for Railways and
Industries. Strategic move to enhance our
presence in Transportation, Industrial and
Renewable Energy Sectors
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8. Strategic Focus & Execution Drive:
(Positioned to Sustain Competitive Edge)
• Skill enhancement at ITIs in JV/PPP mode:
Kabiguru (WB), Latur (Mah),…
• Leveraging WRI Trichy to train high pressure
welders
• Extensive training to Act Apprentices &
Customers
• Lateral/ Campus/ Special/ FTA Recruitment
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9. • Greater empowerment of Project
Managers
• Deploying additional Tools & Plants like
heavy cranes suitable for erection of sets
up to 800 MW.
• Up to 20,000 recruitments till 2016
• Retired Specialists as Consultants, Re-
Employment
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10. Positioning for Steady Profitable Growth
(Product Cost Competitiveness Strategies)
• To reduce Risk & Cost Vendor Base
Expansion
• Leveraging low cost China
Global Sourcing • Manufacturing for high value forgings
• Lean, DTC, PSM
• ERP/SAP
Integrated
Operations
Improvement
• Efforts on to form JV with SAIL for
indigenization of critical steel
materials like CRGO
Indigenization
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11. Diversification Strategies
(Expanding our Offerings in New Growth Areas)
Solar
 Strategic Alliance with BEL for formation of JV
for setting up manufacturing facility (250 MW) for
silicon wafers, solar cells & modules
 Joint Working Arrangement with Abengoa Spain
for Concentrated Solar Power Plant (CSP)
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12. Nuclear
 Steam generators for new rating 700 MWe Nuclear
sets
 Tripartite JV with NPCIL & Alstom in process for
conventional island of Nuclear Projects for 700 MWe
& above
 MoU with GE-Hitachi for cooperation in Nuclear
island equipment for Power plants to be set up by
NPCIL
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13. Water
 Manufacturing Associate Agreement with GE
India Industrial Private Limited (GEIIPL), for
Water Treatment Equipment.
 BHEL will be able to provide more cost-effective
membrane-based water treatment systems for
power plants and industrial sector for all type of
input water like sea water, brackish water and
waste water.
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14. Transportation
 MoUs with Alstom and GE for participating in the
tender for setting up a factory for Electric Loco
components at Dankuni, West Bengal and Diesel
Loco factory at Marhowra, Bihar respectively.
 Breakthrough orders for State-of-the-art propulsion
equipment for 6000 HP Electric Locomotives and
1400 HP AC EMUs (IGBT based)
 Executing an order for 200 numbers of 5,000 HP 25
kV AC Mainline Electric Locomotives (Type WAG -7)
for Indian Railways.
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15. R&D Focuses
(Ensuring today’s requirements while meeting
tomorrow's demand)
• Rapid technology absorption in
partnerships with customers.
• No. 2 in R&D spend in India.
• AUSC(Advanced Ultra Super Critical
Boilers): 5% more efficiency; 12% savings
in coal; Less GHG emissions
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