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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