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About BHEL

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Bharat Heavy Electricals Limited (BHEL) is an

integrated power plant equipment manufacturer and oneof the largest engineering and manufacturingcompanies in India in terms of turnover

Established in 1964, BHEL ushered in the indigenousHeavy 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 sectorsof the economy, viz. Power Transmission Industry,Transportation, Renewable Energy, Oil & Gas andDefence.

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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. Mostof its manufacturing units and other entities

have been accredited to Quality Management

Systems (ISO 9001:2008), EnvironmentalManagement Systems (ISO 14001:2004) and

Occupational Health & Safety Management

Systems (OHSAS 18001:2007).

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It is the 12th largest power equipmentmanufacturer in the world. In the year 2011, itwas ranked ninth most innovative company inthe world by US business magazine Forbes.

BHEL is the only Indian Engineering companyon the list, which contains online retail firmAmazon at the second position with Apple andGoogle at fifth and seventh positions,respectively. It is also placed at 4th place inForbes Asia's Fabulous 50 List of 2010

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It is one of India's nine largest Public SectorUndertakings or PSUs, known as the

Navratnas or 'the nine jewels'

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Swot analysis of BHEL

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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

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Weakness

The procurement process in the company iscumbersome and subject to auditing

Low exposure to the needs and dynamics ofdistribution business

Role clarity on the requirement of being an

equipment supplier or a solution provider Acceptance of customers to execute lowvalue high volumes jobs

Financing Capability

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Opportunity

Huge investment leading to greater demand ofgoods and services

Demand leading to industry operating at fulland over capacity

Early birds to learn faster and achieve repeatorders

Formation of business groups and tie ups forjoint bidding

Healthier working environment and increasedprivate sector participation in operation ofdistribution circles also.

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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

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Porters five force model

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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

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Potential of new entrance

Competitive price

Many orders are captured in recent times

Existing tactics in the market will not helpin the current scenario

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suppliers

Materials, parts, components and other

resources

Suppliers are well diversified across the

globe

Prompt delivery by suppliers are ensured by

BHEL

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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}

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Rivalry among competitors

Creating competitive advantage to gain

bigger market share

Acquisitions, mergers, and joint ventures in

other countries

Technological improvements

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Value chain analysis

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Value Chain component Results on PSEsInfrastructure Excellent InfrastructureHuman Resource Management High manpower cost and low labour productivityTechnology Development Out dated technology or technology follower,

most of them are in low technology areas.Procurement Highly cumbersome and slowInbound logistics Highly cumbersome and slowOperations Process inefficientOutbound logistics SlowMarketing and Sales Mostly through PSE employees , no sales

networkServices Mostly through PSE employees, no servicing

network

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Thank you