3. • Bharat Heavy Electricals Limited (BHEL) is an
integrated power plant equipment manufacturer and one
of the largest engineering and manufacturing
companies in India in terms of turnover
• Established in 1964, BHEL ushered in the indigenous
Heavy Electrical Equipment industry in India.
• It is engaged in the
design, engineering, manufacture, construction, testing,
commissioning and servicing of a wide range of
products and services for the core sectors of the
economy, viz. Power Transmission
Industry, Transportation, Renewable Energy, Oil & Gas
and Defence.
4. • It has 15 manufacturing divisions, two repair
units, four regional offices, eight service
centres, eight overseas offices and 15 regional
centres and currently operates at more than
150 project sites across India and abroad. Most
of its manufacturing units and other entities
have been accredited to Quality Management
Systems (ISO 9001:2008), Environmental
Management Systems (ISO 14001:2004) and
Occupational Health & Safety Management
Systems (OHSAS 18001:2007).
5. • It is the 12th largest power equipment
manufacturer in the world. In the year 2011, it
was ranked ninth most innovative company in
the world by US business magazine Forbes.
• BHEL is the only Indian Engineering company
on the list, which contains online retail firm
Amazon at the second position with Apple and
Google at fifth and seventh positions,
respectively. It is also placed at 4th place in
Forbes Asia's Fabulous 50 List of 2010
6. • It is one of India's nine largest Public Sector
Undertakings or PSUs, known as the
Navratna’s or 'the nine jewels'
8. Strength
• Good corporate image
• Complete range of products for
transmission and distribution
• Established Brand Name
• Considered to be having design ability
• Market Dominance in the Indian Power
Sector
• Cost Competitiveness
9. Weakness
• The procurement process in the company is
cumbersome and subject to auditing
• Low exposure to the needs and dynamics of
distribution business
• Role clarity on the requirement of being an
equipment supplier or a solution provider
• Acceptance of customers to execute low
value high volumes jobs
• Financing Capability
10. Opportunity
• Huge investment leading to greater demand of
goods and services
• Demand leading to industry operating at full
and over capacity
• Early birds to learn faster and achieve repeat
orders
• Formation of business groups and tie ups for
joint bidding
• Healthier working environment and increased
private sector participation in operation of
distribution circles also.
11. Threats
• Purchase preference may be extended to
distribution sector
• Increased in number of small contractors
leading to price wars
• Emergence of new players in the market.
• Political pulls and pressures may jeopardize
the hole process, raising alarm about the
privatization and being anti-people
14. substitutes
• Have many substitutes that might pose a
threat
• Has less diversification with sectors so that
concentrated focusing on the respective
sector avoids chances of getting substituted
• Has an order book worth thousands of
crores
15. Potential of new entrance
• Competitive price
• Many orders are captured in recent times
• Existing tactics in the market will not help
in the current scenario
16. suppliers
• Materials, parts, components and other
resources
• Suppliers are well diversified across the
globe
• Prompt delivery by suppliers are ensured by
BHEL
17. buyers
• Wide customer base in India and in all parts
of the world
• With excellent customer satisfaction orders
are booked for the next two
years{information from employee}
18. Rivalry among competitors
• Creating competitive advantage to gain
bigger market share
• Acquisitions, mergers, and joint ventures in
other countries
• Technological improvements
21. Value Chain component Results on PSEs
Infrastructure Excellent Infrastructure
Human Resource Management High manpower cost and low labour productivity
Technology Development Out dated technology or technology follower,
most of them are in low technology areas.
Procurement Highly cumbersome and slow
Inbound logistics Highly cumbersome and slow
Operations Process inefficient
Outbound logistics Slow
Marketing and Sales Mostly through PSE employees , no sales
network
Services Mostly through PSE employees, no servicing
network