CASE STUDY

ON
BHEL
(Bharat Heavy Electricals
Limited)
Submitted by:
ANISH MITTAL
Mba/10/119

CONTENTS
1.
2.
3.
4.
5.

6.

SUMMARY
FACT ANALYSIS
QUESTION HANDLING
SWOT ANALYSIS
RECOMMENDATON AND
SUGGESTIONS
CONCLUSION

SUMMARY
BHEL is a largest engineering company in
India. It provides total systems to the core
sectors of the Indian economy-power,
industry and transportation .About twothirds of the companies business is in
power sector. It is a technology intensive
company having collaborations with
reputed international companies .It
ranksfortune 500 biggest industrial
giants its operations are spread over 13
manufacturing plants and 8 service
centers in India. BHEL employs about
46,050 people. The company was initially

Contd.
It receives orders from several countries for
industrial equipments, including complete power
station consultancy services & providing technical
manpower. These countries includes USA, UK,
West-germany, russia,etc. BHEL is recognized in
the world market as a renovation services and
maintenance expert. A number of its products
such as hydro and thermal sets, boilers,
compressor, industrial turbo sets and oilrigs are
long production cycle items.

FACT ANALYSIS
1.
2.

3.
4.

5.

BHEL public sector company.

Core sectors of bhel are- power
sector(2/3rd) industry and
transportation.
Rank among fortune 500 companies
Some of the companies : 13
manufacturing plants& its service
centres, 46,050 employees.
Platform: worked in national and
international platform.

CONTD.
OBJECTIVES:
Growth: steady
Profitability: reasonable and
adequate return on capital
employed.
Customer focus: value for money.
People-orientation: empowerment.
Technology: indigenous technology
Image: government company

Question handling
Q. Critically evaluated BHELs
objectives
from
the
perspectives
of
financial
management,
in
general&
shareholders in particular?
Ans.
It provides reasonable and
adequate return on capital employed
primarily
through
improvements
in
operational efficiency, capacity utilization
and productivity and generate adequate
internal
resources
to
finance
the
companys superior customer services

SWOT ANALYSIS
STRENGTH:
1.
Public sector company.
2.
3.
4.

5.
6.
7.
8.

Sound engineering
assimilate .

base

and

ability

to

Relatively stable industrial relationship .

Ability to set up power plants on turnkey basis,
complete know- how for manufacture of entire
equipment is available with the company.
Ability to manufacture or procure to supply spares.
Fully equipped to take capital maintenance and
servicing of the power plants.
Largest source of domestic business leading to major
presence and influence in the market.
Ability to successfully overhaul and renovate power
stations
equipment
of
different
international
companies.

WEAKNESS:
1.

2.
3.
4.

5.

Difficulty in keeping up the commitments on

the product delivery and desired sequence of
supplies. .
Larger delivery cycles in comparison with
international suppliers of similar equipment. .
Inability to provide suppliers credit, soft loans
and financing of power projects .
Due to poor financial position of state
electricity boards, which are the major
customers
of BHEL in India, liquidity position of BHEL is not
satisfactory.
Displacement of social objectives by political
objectives,
which
may
lead
to
redundant costs and also rising costs.

OPPORTUNITIES:
1.
2.
3.
4.

Demand for power and hence plant

equipment is expected to grow .
Private sector power plants to offer expanded
market as utilities suffers resource crunch .
Ageing power plants would give rise to more
spares and services business. .
Easy
processing
of
joint
ventures/
collaboration/import/ acquisition of new
technology. .

THREATS:
1.

2.

3.

Increased competition both national and

international.
Multilateral agencies reluctant to lend to
power sector because of poor financial
management of S.E.Bs .
Level playing ground not available, foreign
companies spending much more on
business promotion tactics .

Suggestions and recommendations

Create a climate of unrest and annoyance

among the workers to increase
productivity.
Trade union must organized training
programme for workers which can increase
their level of awareness and develop them
for more advance technology.
Personal benefits by the union leader
should be abolished.

CONCLUSION
Strategic intent is a very important part which
should be developed and implemented for the
organizations success and growth and in the
strategic intent the various strategies which are
adopted by various organizations. BHEL is poised
to take up the challenge and play a major role in
meeting the energy demand of the country. BHEL
make the country Self Reliant in Power Plant
Equipment manufacture, the company has grown
in stature in both domestic and international
markets
BHEL expected to cater to both power and
Industry sectors and will play a major role in
meeting the energy demand of the country.After
studying BHEL we have found out that it is always
adopting innovative strategies so that it can
continue to grow and also earn profits for its
shareholders.

THANKYOU