BHARAT HEAVY ELECTRICALS LIMITED & THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL

Dissertation Submitted to the ALAGAPPA UNIVERSITY in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY CHAKRAPANI AWASTHI Enrollment No:-083173871

Project Guide Mr.-Manohar Ramesh MBA NIILM School of Business Bangalore-560025 DIRECTORATE OF DISTANCE EDUCATION ALAGAPPA UNIVERSITY KARAIKUDI 630 003 JUNE 2010
1

DECLARATION

I hereby declare that the dissertation market potential for control equipments at BHELsubmitted for the MBA (General) degree is my original work and the dissertation has not formed the basis for the award of any Degree, Associate Ship, Fellowship or any other similar titles.

Place:-Bangalore Date:-30 June 2010 Signature of the Student

GUIDE CERTIFICATE

This is to certify that the dissertation entitled THE STUDY OF MARKET POTENTIAL FOR CONTROL EQUIPMENTS AT BHEL is a bonafied research work carried out by CHAKRAPANI AWASTHI & ENROLLEMENT NO. 083173871 of MBA (General) in partial fulfillment of the requirements for the award of the degree of Master of Business Administration ( General ) and that the dissertation has not found the basis for the award previously of any Degree, Diploma, Associate ship, Fellowship or any other similar title.

Place: Date:

Signature of the Guide Manohar Ramesh Head Corporate Relations & Placement NSB Bangalore

ACKNOWLEDGEMENT

Its my special privilege to extend words of thanks to all of those who have helped me and encouraged me in completing the internship successfully. I sincerely thank Mr. Manohar Ramesh, Head CRPC NIILM School of Business, for giving me an opportunity to take up this research. I would like to express my profound sense of gratitude to Mrs. Sasmita Bebortha, Campus Head NIILM School of Business for providing me support to conduct this research. I feel extremely privileged that I completed my project under the guidance of Prof. Krishna K.

Havaldar, who spent his quality time even during his busy schedule to make me understand the each and every aspect about the procedure of carrying out research study and guiding me throughout the project. I owe a special debt of gratitude to Mr. G. Kalyana Sundaram, Senior Manager HRD who has been kind enough to permit me to take up internship study at BHEL-EDN. My warm thanks to Mr. A. T. Seralathan, Manager Marketing CE, Mr. G. Senthil Kumar, Deputy General Manager Marketing CE and Mr. Shailesh Kumar Singh, for their kind co-operation. I also thank Prof. B. Suresh and Prof. Rajasekhar, program managers for their constant support and well wishes during the project. My gratitude will not be complete without thanking God and I am grateful to my beloved parents and friends who have been a constant source of inspiration.

Chakrapani Awasthi

TABLE OF CONTENTS
4

Sl. No Introduction 1 2 Industry profile Company Profile Functional Analysis 3 4 5 6 7 8 9 10 Production Department

Topics

Page no

9 12

33 38 41 60 70 76 78 81

Marketing & commercial department Human resources department Finance department Quality Department MIS Factory service department Summary of analysis & inference PART-B Study of the Problem

11 12 13 14 15 16

Research design Methodology Limitation of the study Summary of findings Inference Conclusion

84 85 86 91 92 94

Table No.

PARTICULARS

Page No.

17 18 19

My Learning Bibliography Annexure

95 96 97

LIST OF TABLES

Si No. Particulars

Page No.

Major Manufacturing plants & Their products

16

No of customers purchased the control equipments

86

Dependence of customer on supplier

87

Awareness about BHEL

87

Opinion about BHEL

89

No. Of potential buyers

90

LIST OF CHARTS

Sl No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Shares holders pattern Market shares of BHEL

Particulars

Page No. 18 18 19 42 61 65 67 70 73 78 80 86 88 89 90

BHELs role in power sector Organisation chart for P&A Finance Department Turnover for last five years,PBT Performance and highlight Quality Department CII model for TQM(BHEL) MIS Business activity flow chart No. Of customers purchased the control equipments Awareness about BHEL Opinion about BHEL No.of Potential Buyers

INDUSTRY PROFILE

The critical role played by the power industry in the economic progress of a country has to be emphasized. A self sufficient power industry is vital for a nation to achieve economic stability. Indian Power Industry

(A) Before Independence The British controlled the Indian power industry firmly before Independence. The then legal and policy framework was conducive to private ownership, with not much regulation with regard to operational safety. (B) Post Independence Immediately after Independence, the country was faced with capacity restraint. India adopted a socialist structure for economic growth and all the major industries were controlled by public sector enterprises. By 1970's India had nationalized most of its energy assets, due to its commitment to social goals. By the late 1980's the Indian economy felt the strain of the socialist agenda followed since independence. Faced with a serious deterioration in public finance and balance of payment crisis, the Union government as part of its policy of economic liberalization allowed greater investment by private sector in the power industry. Power Constitutional Position Power as a matter of legislative and executive competence, falls in the Concurrent List (List III of the Seventh Schedule to the Constitution of India).Both the Parliament and state legislatures have the rights to pass laws on the matter and any law passed by the Parliament overrides the existing state laws unless

Consolidate and rationalize existing laws.

9

To address the issues of developing industry including regulation, power trading, non

discriminatory open access, choice of dispensing with vertically integrated state enterprises and encouraging private enterprise.

Future Trends:

According to experts the private sector would play a greater role in power generation and

foreign investments would increase considerable in his sector.

The government of Indias Hydrocarbon vision 2025 gives in details the guidelines for the

policies in India for the next 25 years to attract investment in exploration, production, refining and distribution of petroleum products. Analysis of Indian power sector: India had been traditionally depending on thermal power as a major source of power generation , which constitutes about 65% of current capacity . Balance is contributed by Hydel power (26%), Nuclear (3 %) and Renewable energy (6%).Over 87% of the current installed capacity in the country is by the government, and with the state governments having lions a share of over 52% and the balance by central (federal) government. Due to the initiative of government of India to encourage Public Private Partnerships in power sector, share of private companies has gone up to steadily to MW, about 13 % of the installed capacity. This report covers the overall industry scenario, demand & supply, growth drivers, critical success factors for the industry. It also deals with investment opportunities in the sector and an outlook. 'Indian Power Sector Analysis focuses on the growing marketplace for power sector in India. It thoroughly investigates the current market trends, evolving markets, and growth prospects for the Indian power industry. It will help the client to analyze the driving forces and leading-edge opportunities critical to the success of the power industry. The research study analyzes the prevailing scenario in the Indian power sector along with the existing policy and regulatory framework. It tracks the growth and performance of the Indian power sector, the ongoing reform initiatives and offers statistical updates on power generation, transmission and distribution, along with a rational future forecast.

10

Key Findings:
- More than 64% of Indias total installed capacity is contributed by thermal power. Significant jump in unit size and steam parameters will result in higher efficiencies and better economics for the Indian power sector. - Western region accounts for largest share (30.09%) of the installed power in India followed by Southern region with 27.76%. - Unbalanced growth remains the cause of concern for the Indian power sector. Only about 56% of households have access to electricity, with the rural access being 44% and urban access about 82%. - Southern region remains the dominant region in renewable energy source accounting for more than 57% of the total renewable energy installed capacity. Key Players These major players currently operating in the Indian power sector such as National Thermal Power Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric Power Corporation Limited, Power Grid Corporation of India, Tata Power, etc.

11

BHEL An Overview
BHEL is the largest engineering and manufacture enterprise in India in the energy related/infrastructure sector today. BHEL has built over the years ,a robust domestic market position by becoming the largest supplier of power plant equipment in India , and by developing strong market presence in select segments of the industrial sector and the Railways. BHEL was established more than 40years ago ushering in the indigenous Heavy Electrical Equipment industry in India , a dream which has been more than realized with a well recognized track record of performance. It has been earning profits continuously since 1971-72. BHEL has the proud privilege of having been selected as one of the NAVARATNA PSU by the government of India. BHEL manufactures over 180 products under 30 major product groups and caters to core sector of the Indian Economy viz.,Power Generation and Transmission , Industry , Transportation , Renewable Energy , Defense , etc. The wide network of BHELs 14 manufacturing divisions , 4 power sector regional centers , 8 service centers , 15 regional offices and a large number of Project Sites spread all over India and abroad enables the Company to promptly serve its customers and provide them with suitable products , systems and services-efficiently and at competitive prices. The quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centers. BHEL has attained ISO 9001 certificate for quality management and all the manufacturing units/divisions of BHEL have been upgraded to the latest ISO-9001:2000 version. All the major units/division of BHEL have been awarded ISO-14001 certificate for Environmental Management Systems and OHSAS-18001 certification for Occupational Health and Safety Management Systems. BHEL was the first Public Sector Company in the country to win the coveted PRIZE for its Haridwar unit under the CII Exim Award forbusiness excellence, as per the globally recognized model of European Foundation for Quality Management.

12

The company received EEPCs Top Exports for the seventeenth year in succession. It has also won the SCOPE Meritorious Award for R&D and Innovation 2005-06 for commendable contribution in the area of R&D and Innovation. BHEL has: Installed equipment for over 90,000 MW of power generation - for Utilities, Captive and Industrial users. Supplied over 2,00,000 MVA transformer capacity and sustained equipment operating in Transmission & Distribution network up to 400 KV - AC & DC. Supplied over 25,000 Motors with Drive Control System to Power projects, Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. Supplied Traction electrics and AC/DC locos to power over 12,000 Kms Railway network. Supplied over one million Valves to Power Plants and other Industries. BHEL's operations are organized around three business sectors, namely Power,

Industry including Transmission, Transportation, Telecommunication, & Renewable Energy and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market The greatest strength of BHEL is its highly skilled and committed 47,000 employees. Every employee is given an equal opportunity to develop himself and improve his position. Continuous training and retraining, career planning, a positive work culture and participative style of management have engendered development of a committed and motivated work force leading to enhanced productivity and higher levels of quality. BHEL has a major presence in the domestic power market and accounts for 64% of the nations installed power generation capacity , thus making a significant contribution to the growth and development of the countrys economy over the years. It has had consistent track record of growth, performance and profitability and has been reported by the World Bank as being one of the most efficient enterprises in the industrial sector at par with international standards of efficiency.

13

BHEL s Contribution to various Core Sectors: Power Transmission Sector:

BHEL is a leader in the field of power transmission in India with a wide range of transmission systems and products. BHEL manufactured Transmission Products have a proven track record in India and abroad. It also provides turnkey solutions Utilities and Industries. Substations and Reactive Power Compensation installations set up by BHEL are in operation all over the country. It has executed HVDC project in India with major HVDC products viz., converter transformers , smoothing reactors , thermistor valves and filter capacitors manufactured and supplied from its works.

Industry Sector:
Since its inception in 1982 , the Industry Sector business has grown at an impressive rate and contributes significantly to BHELs turnover. It supplies all major equipment for industries: AC/DC machine, solar photovoltaic systems and heating systems ,electrostatic precipitators, fabric filters, etc. BHEL also provides solution for water management systems, coal & ash handling plants. The industries which BHEL serves include Steel, Aluminum , Fertilizer, Refinery ,Oil &Gas Exploration ;Production & Pipelines , Petrochemical ,Chemicals ,Automobiles, Cement, Sugar ,Paper, Mining, Textiles etc.

Transportation Sector:
In the transportation field , BHELs product range covers : Mainline AC locomotives, AC/DC dual-voltage locomotives, diesel-electric shunting locomotives, EMU Coaches, diesel power car and diesel-electric locomotives, track machines and solutions for Urban Transportation Systems ,including Electric Trolley Buses, LRT & MRTs. Most of the trains operated by Indian Railways are equipped with traction equipment and controls manufactured and supplied by BHEL.

14

BHEL IN INDIA :
Registered office & Corporate Headquarters : NEW DELHI Corporate Research& development Division : HYDERABAB

Over 100 Power Plant Project Sites all over India BHEL has 14 Manufacturing units in India:

BANGALORE BHOPAL GOINDWAL HARIDWAR HYDERABAD

JAGDISHPUR JHANSI RANIPET RUDRAPUR TIRUCHIRAPPALLI

BHEL Service Centers:

CHANDIGARH KOLKATA NAGAPUR NOIDA PATNA SECUNDERABAD VADODARA VARNASI

BHEL Regional Offices:

NOIDA (NORTHERN REGION) KOLKATA (EASTERN REGION)

15

NAGPUR (WESTERN REGION)

MAJOR

MANUFACTURING

PLANTS

AND

THEIR

PRODUCTS

MANUFACTURING PROFILE HEP, BHOPAL

PLANT

PRODUCT

Hydro sets, Nuclear turbines, Thermal sets (110 MW), AC Motors & large Electric Motors, Power Transformers, Traction Machine & Controls for traction & industrial applications, Diesel Generating sets, Switchgear, Capacitors, Industrial turbines.

TP, JHANSI

Power transformers (less than 220 KV) freight Loco transformers, Instrument transformers, AC Locos Diesel Electric Shutters etc.

HPEP, HYDERABAD

Thermal sets, Gas turbine generator sets combined cycle/Cogan plants, Industrial TG sets, Compressors, Oil Rigs, mills, SF & MOCB switchgear, Heat exchanger.

HEEP, HARDWAR

Casting and forging for thermal/Hydro sets, motors defense etc. Special facilities like 9000T press For forgings, electric arc furnaces for melting steel, etc.

SSTP, TRICHY BAP, RANIPET EDN, BAGALORE

Seamless steel tubes. Boiler auxiliary fans, Electrostatic Preheaters. Variable speed drives, programmable. digital controllers, Power devices, Login and meters,
16

photovoltaic/solar Panels, simulators, etc. EPD, BANGALORE Insulators: solid core, bushings, pin.

BOARD OF DIRECTORS:

17

Shri K. Ravi Kumar Chairman & Managing Director Shri Dr. Surajit Mitra Director Shri Dr. Sutanu Behuria Director Shri Sanjay M. Dadlika Director Shri Ashok K. Aggarwal Director Shri Shekhar Datta Director Shri Manish Gupta Director

Shri Madhukar Director Shri S. Ravi Director

Shri C.S.Verma Director (Finance) Shri C.P.Singh Director (E, R&D) Shri Anil Sachdev Director (HR) Shri B.P.Rao Director (IS&P) Shri N.K. Sinha Company Secretary

18

SHAREHOLDING PATTERN:

MARKET SHARE :

19

BHEL S ROLE IN INDIAN POWER SECTOR

BHEL ELECTRONIC DIVISION -A PROFILE

The Electronics Division (EDN) of BHEL, situated at Bangalore, was formed in 1976,mainly to establish a strong base in the areas of power and control electronics, to supplement the companys pioneering efforts in power generation and transmission equipment manufacturing. The division came into being when BHEL took over the Radio and Electricals Manufacturing Company (RAMCO), which formally merged with BHEL-EDN in 1980. Making a modest beginning with a turnover of Rs.3 crore in 1976-77, the unit was poised to record a turnover of over Rs.500 crore. The growth is amply reflected in the fact that most of the power plants and process industries in the country are equipped with products and systems made by BHEL-EDN.

20

It has established itself as a market leader in new generation Power Plant Automation System. Besides manufacturing and supplying state-ofthe-art control and automation equipment and systems for power plants and process industries, the Electronics Division has also emerged as a leading player in the fields of Power Transmission and Distribution, Industry, Transportation and Renewable energy sources. BHEL-EDN has been successful in meeting the demanding requirements of International markets in terms of technical specifications and qualities, establishing references in over 25 countries by installation of Automation, Semiconductors and Photovoltaic Systems. Focus on achieving customer delight through product excellence, adherence to quality, relentless efforts and unwavering commitment to in-house solutions, along with Technical collaborations with international leaders, have been the main factors contributing to the units rapid growth and success. In recognition of its commitment to the quality systems and procedures, the unit has been certified for ISO 9001. It is also the first Electronics Industry in Bangalore to get ISO 14001 Environment Management System Certification and OHSAS 18001 Certification. In its commitment towards integrity, confidentiality, availability and security of information, EDN has been certified for ISO/IEC 27001:2005, Information Security Management System (ISMS) Standard. In addition to their comprehensive products profile a number of new technology areas have been earmarked for future developments. Prominent among them are power and control electronics for traction application, energy management systems, training simulators for defense applications, electronic energy meters etc. BHELs vision envisages further growth for EDN, transforming it into a world class enterprise, providing comprehensive solutions to customers while exploring new frontiers in software and hardware application to fulfill the growing needs and expectations of the global market. The
21

company has already joined the United Nations Global Compact and has committed to support the set of core values enshrined in its ten principles in the areas of human rights, labor standards, environment and anti-corruption. BHEL EDN comprises an excellent and experienced group of 1950 employees who are classified into executives, supervisors, artisans and who are further classified into skilled, semi skilled and unskilled workers.

VISION
A World Class Engineering Enterprise .Committed to Enhancing Stakeholder Value.

MISSION:
To be an Indian Multinational Engineering .Enterprise providing Total Business Solutions. Through Quality Products , Systems and Services in the fields of Energy, Industry. Transportation, Infrastructure, and other potential areas.

VALUES:
Zeal to excel and Zest for Change. Integrity and Fairness in all Matters. Respect for Dignity and Potential of Individuals. Strict Adherence to Commitments. Ensure Speed of Response. Foster Learning , Creativity and Team work. Loyalty and Pride in the Company

CONCERN FOR SOCIETY

Striving for the growth of the nation, BHEL-Electronics Division has always been contributing for the upliftment of the poorer and backward sections of
22

the society. Three villages near Bangalore have been adopted by BHEL and a number of social welfare programmes like solar electricity, low cost housing, educational, medical and drinking water facilities have been implemented resulting in remarkable transformation in the living conditions of the villagers.

OBJECTIVES
BHELs objectives for the current financial year are to achieve 7395MW power plant equipments which is planned and synchronization comprising 6983MW Thermal and 412 MW in Hydro. Similarly 6900MW have been planned and trial operation completion during 2009-10 comprising 6488MW Thermal and 412MW of Hydro. In addition BHEL also planning to commission 260 MW of lift irrigation and other small Hydro projects. In line with the capacity and capability enhancement strategy adopted by the company, the manufacturing capacity expansion from 10000MW per annum to 15000MW per annum is proceeding apace and plans are afoot to hike this further to 20000MW by 2011-12.

THE MAJOR MILE STONES :

1976 : Take over of Remco. 1977 : Supply of first control equipment product. 1983 : Supply of first Photovoltaic Panel. 1985 : Supply of steam turbine control. 1986 : Entry into telecom with first EPABX supply. 1987 : Entry into HVDC controls for Rihand-Delhi. : Supply of first AC drive system for ID fan control in 500MW power plant.

1988 : Supply of Procontrol systems for C & I. 1992:Entry into Defense Electronics business.
23

1994 : Supply of Gas Turbine Controls. 1995 : Supply of MAX-L and MAX-XL exchanges. 2000 : Supply of first power converter for 3PH 6000 HP LOCOS. 2001 : Supply of first control electronics for 3PH 6000 HP LOCOS. : Supply of first converter for 3PH AC / DC EMU : Introduction of first high power SFC for lift irrigation & pumped storage scheme

2002 : Introduction of new technology for C & I : maxDNA 2003 : First PADO system commissioned at 500 MW at Simhadri : ERP implementation using SAP package

2004 : First unified maxDNA based C & I system commissioned for 500MW at Ramagundam : 3MW Photovoltaic production achieved

2005 : First

500MW

Nuclear

Turbine

at

Tarapur

unit

commissioned with EDN Supplied TG controls. : INSAT 4A launched by ISRO on 22 nd December 2005 with Batteries and Solar Panels of BHEL make

PRODUCT PROFILE

24

CONTROL EQUIPMENT: Power Plant Automation (DCS) Industry Automation AC & DC Drives Power Supplies Excitation Systems Reactive Power Management Systems (RPM) like SVC SCADA PADO (Performance Analysis, Diagnostics & Optimization) SEMICONDUCTORS & PHOTOVOLTIC SYSTEMS: Power Semiconductor Devices Solar Cells, PV Modules & PV Systems Space Grand Solar Panels & Batteries

DEFENCE ELECTRONICS: Infantry Weapon Effects Simulator System (IWESS) Small Arms Training Simulator (SATS) SIMFIRE Integrated Platform Management System (IPMS) Ship Control System

SERVICE OFFERED: Harmonic Measurement and Analysis System study for Reactive Power Compensation

25

Erection and commissioning by highly experienced team of Engineers

In -house expertise for efficient Service-After-Sales Assured Supply of Spares A highly competent team to respond to Customers emergency needs

Total Solutions to Renovation and Modernization requirements Concept to Commissioning solution for large size Solar Power Plants

A BRIEF OVER-VIEW OF THE PRODUCTS

POWER PLANT AUTOMATION

Any power plant is a mini industrial cosmos with a variety of control elements with intricate inter-relationships. BHEL-EDN offers a large variety of control equipments for power stations ranging from simple control systems to single push button automation for power plants of any size. Digital automation systems for controlling steam/water turbines, boilers and generators employing Distributed Control Systems (DCS) are amongst the products that are offered. The systems for power plants include CRT-based MANMACHINE interface and computer based information management and optimization systems. BHEL-EDN also has unified DCS solution for the entire power plant comprising of boiler, turbine balance of plant (BOP) bringing uniformity in hardware, software, and operation methodology as well as spares inventory to the user. Amongst the individual control systems for steam generators manufactured by BHEL-EDN are:
26

-Burner management systems -Secondary air dampener systems -Soot blower control systems & -Bypass control systems -BHEL-EDN manufactures integrated control and instrumentation systems capable of monitoring and controlling the critical parameters of a steam turbine to high degree of accuracy. The system is designed for automatic safe start up and shut down, as well as efficient operation during normal and abnormal conditions. Balance of plant (BOP) automation comprises of: Control Monitoring and information system including regulatory controls. Co-ordinate controls Sequential controls Interlocks and protections Alarm annunciation Operator interface units as well as performance calculation for the entire power plant.

Higher-level automation can also be offered ensuring automatic plant start-up, shut down and plant optimization. Solutions also include automation for gas turbine based on open and combined cycle power plants as well as hydro power plants. BHEL-EDN also manufactures SPEEDTRONIC MARK IV/MARKV controls for gas turbines with technical know-how from GE (USA). BHELEDN is the only sub licensee of GE (USA) for manufacturing and servicing MARK IV/MARKV gas turbine controls in the world.
27

DC DRIVE SYSTEMS: BHEL-EDNs Thyristorised Digital Convertors are used for DC drives with constant power or constant torque control. Many such converters are already in service in rolling mills and process lines in industries like steel, aluminums, rubber, cement, coal and copper. Converters up to 10000A ratings with digital controls have been supplied by BHELEDN.

AC DRIVE SYSTEMS: BHEL-EDNs adjustable speed AC Drive System with load commutated inverter is a highly energy efficient system for controlling synchronous motors used for flow Control Applications like fans, pumps, and compressors in power plants and industries. Speed control of squirrel cage induction motors with GTO (Gate Turnoff) thermistors are cost effective and low on maintenance and find widespread use in industries. The digital controls with hot stand by control and power channel increase system availability and make these drives user friendly. A number of systems have been designed for ID Fans and Boiler Feed Pumps (BFP) of various ratings up to 500 MW power plants.

EXCITATION SYSTEMS BHEL-EDN offers Excitation Systems in Synchronous Generators for hydro, thermal, nuclear, co-generation, and combined cycle, DG power plants as well as for synchronous machines in industrial applications. With the ever-growing size and complexities of the power system network, fast response excitation systems capable of meeting more stringent specifications are called for to improve system stability and availability. The state-of-the-art excitation system offered
28

by EDN includes fast acting, fully controlled semiconductor bridges along with digital controls. Redundant philosophy in power and control circuits employed ensures high availability and hot repair/ replacement possibilities. The digital electronics with self-diagnostic feature, programmable logic controls and serial communication etc., provide easy and efficient integration with plant DDC. Unique facility exists at works for closed loop performance testing, using an online real time generator simulator.

STATIC VAR COMPENSATION SYSTEMS (SVC) With quality of power supply-gaining prominence both in utilities and industries, BHEL-EDN offers indigenously developed technology for reactive power management by way of Series Compensation Systems and Shunt Compensation Systems. A number of systems have been supplied for both utility and industrial applications for improvement of voltage, reactive power controls etc. BHEL-EDN manufactures thyristor valves and controls for the SVC. To cater to the need of LT loads, solid state switched capacitor systems using Thyristors or Triacs are also offered for improving the power factor, reducing the reactive power demand.

POWER SEMICONDUCTOR DEVICES BHEL-EDN manufactures Power Thermistors Devices and Diodes of various ratings to meet the requirement of high power electronic systems used for various applications in Power, Industry and Transportation systems. While high power thermistors devices are used in high current rectifiers for Industrial projects, high voltage thermistor devices are used in HVDC applications.

PHOTOVOLTAIC SYSTEMS Realizing the tremendous potential of Solar Power as a NonConventional Energy Source, BHEL-EDN started manufacturing Solar Photovoltaic (SPV) Cells and Modules besides developing
29

complete SPV Systems. A sophisticated facility with a capacity of 2MW per annum has been set up for manufacture of cells and modules. The SPV systems are specifically designed keeping in mind the necessity. Some of the major systems in operation are SPV Power Plants (Stand Alone and Grid Interactive), Solar Power Systems for Rural Radio Phones, Telecommunications, Railway Signaling and other applications.

DEFENCE ELECTRONICS With the strong background of Control, Instrumentation and System aspects of power plants and industries, BHEL-EDN has diversified into the field of Simulators for training police, paramilitary and defense personnel with state-of-the-art technology. The following types of Simulators are manufactured.

SIMFIRE Simfire is laser based outdoor training simulator for training of crews in armored fighting vehicles with precision gunnery and tactical warfare without using live ammunition, resulting in a much more effective training at much lower cost.

INFANTRY WEAPON EFFECTS SIMULATION SYSTEM The Infantry Weapon Effects Simulation System (IWESS) is a laserbased system, which simulates the effects of small arms live fire like Self Loading Rifle, Light Machine Gun, and Snipers etc. The IWESS is used for training in Police, Paramilitary, Military forces etc. The IWESS greatly reduces the usage of real ammunition and it gives the soldier the realism of being able to accurately use his personal weapon and also gives immediate feedback about the effectiveness of his fire position, shooting skills, weapon skills and use of ground cover.

SMALL ARMS TRAINING SIMULATOR

30

Small Arms Training Simulator (SATS) is an indoor simulator used for marksmanship training. The system can be adopted for small arms such as Rifles, Light Machine Guns etc. The SATS system is computer based and can accurately simulate small arms with real recoil effect. It is a substitute for live ranging training, thereby reducing ammunition cost involved in training.

31

WORLD CLASS TECHNOLOGIES With a view to bring world class technologies from world leaders to Indian clients, BHEL-EDN has entered into strategic alliance with many international giants, and sourced technologies from them. The significant tie-ups for different products/systems include: Siemens AG : : : : Steam Turbines

DC Drives Power Semiconductor Devices Brushless Excitation System Electronic Automation for

AD Trans (through CLW) Taxis ABB

: : : : : :

3 Phase AC Loco DC/AC EMU HVDC Controls Distributed Control Systems] Static Excitation Systems Large Area Power

Semiconductor Devices General Electric : : Sulzer Brothers C-DOT, India Stock Eqpt. Co. : : : AC Drive Controls Gas Turbine Controls HP/LP, HP, PRDS Controls RAX, MAX-L, MAX-XL Gravimetric Feeder Controls

Combustion Engg.

Flame Scanner Amplifiers

32

Lockheed Martin

Information Systems OSCMAR Simulator Systems

:Tactical Training Simulators for Tanks : Infantry Weapon Effects

Spartans Simulators

Small

Arms

Training

33

BHEL CUSTOMERS PROFILE :

ABB : Static excitation systems : HVDC Control : Semi-conductors Siemens AG: DC Drive Control : Semiconductors

OSCMAR : Infantry Weapon Effects Simulator System NTPC Indian Railways L & T Cements Defense ministry TATA Iron & steel Nuclear power corporation Ahmedabad electric company Tata electric company ONGC Reliance industry Indian Petro Chemicals Easy steel

34

ELECTRONICS DIVISION GROWTH

BHEL- EDN has grown rapidly over a period of time. Its shown in the below graph:

35

SWOT ANALYSIS of BHEL-EDN:

SWOT analysis stands for strength, weakness, opportunities and threats an analysis it is given below: STRENGTHS:

BHEL is Indias leading manufacturer of power equipment. It has diversified into all vital sectors of the industry, reaching its benefits of energy to every corner of the country.

It has very good product mix that is place, product, price, promotion. It has an effective human resource management in the country. It has a consistent track record of growth , performance and profitability.

Good work culture, job security, and high employment. Quality products and services. A customer focused company that firmly believes in being a friend for life.

Continuous improvement in production rates especially in Control Equipment, which is the major contributor of profits.

Staff optimization by downsizing. Talent scouting through campus recruiting and administration of nationwide test.

WEAKNESSES: The operating expenses of the company are comparatively high which affects in its profit earnings capacity.
36

Slow updating of technology with time. Overstaffed departments with people not opting for VRS. Slow processing of documents due to centralized administration. Poor accountability on people contribution and performance. Union intervention in the companys policies and working. There is lack of an aggressive and dynamic manufacturing.

OPPORTUNITIES: Customers looking for Turnkey capability. Enter into Power Generation Business Providing Total Services to Co-gen. and Captive Power Plant needs of industry Increased volume in Transmission and Distribution Business Usage of international financing Develop as a Troubleshooting service provider Increase export share Strategic acquisition and mergers To expand its market share by introducing new products. To firm up strategic alliance with global leaders for the introduction of better and newer products. To provide opportunities to individuals to advance their career prospects at an incredible pace. Support by Government. Availability of labour at cheap costs.
37

Order and collaborations from overseas.

THREATS: Competition from few companies. Fast technological changes may affect the company. Absence abroad may hamper export prospects unlike the competing MNCs.

New entrants in the field. Disinvestment policy of the Government. High cost price in view of overheads.

38

FUNTIONAL ANALYSIS

PRODUCTION DEPARTMENT

Production in EDN is divided into 3 product groups.

PRODUCT GROUP

CONTROL EQUIPMENT PRODUCT Control equipment

SEMI-CONDUCTOR & PHOTOVOLTIC PRODUCTIONTYPE Job order production

DEFENCE SIMULATOR LAYOUT Group technology (Product and Process)

SC & PV

Batch production

Mixed & product

Defense simulator

Job order production

Product and Process

PRODUCTION MODEL

39

FABRICATION SHOP & TOOL ROOM There are 2 fabrication shops in the electronics division and one tool room for the entire factory needs. Fabrication shop no.1 caters the need for meters and capacitors division. Fabrication shop no.2 caters the requirement of CE division. Tool room is common for the division. Tool room has number of machine tools such as lathes, milling machines, grinding machines, NC & CNC machines and many special purpose machines. DESIGNS: Design department comes into picture after the commercial group prepares a MO and sends it to designs. Its significance lies in the fact that most of the orders of BHEL-EDN are customized. The design department takes into consideration the requirements and features asked by the customer and design the product accordingly. PROCUREMENT OF MATERIALS:

MATERIAL REQUIREMENT

STORESMRP PROBABLE DATE (Checks for the materials COMPLETION in stores) the pending order) RAISING INDENT (it looks for OF

40

SUPPLIER FOLLOW UP: Present month requirement is received by PPC and MPC and once in 3 months they meet and review the issues. INVENTORY: Additional material, new material and reduction material are accommodated and amended by purchase department. BHEL-EDN maintains minimum order quantity method for non-moving and slow moving materials. This is to allow of purchasing any quantity from manufacturers, where batch order, that is MOQ (no less order if it is necessary than it is ordered). Hence it takes care of non-moving and slow moving materials. MATERIALS MANAGEMENT: The departments major responsibility is to make sure that the right material of the right quality and quantity is supplied at the right price and at the right time. AGM or a senior DGM usually heads this department. There are two departments that work under materials management for achieving its objectives, they are: Purchase Stores

MATERIALS PLANNING AND CONTROL (MPC): This department is usually headed by senior DGM. This department plays a strategic role in materials management. MPC is the prime agency responsible for the availability of any material required for production and hence constantly keeps track of material status. It is the department, which receives the material requisition (M.R) from the engineering dept and makes sure that the required material is made available to the manufacturing section. As this department has the major responsibility of the stock in the store and for

41

allocation and coordination with the purchase department for procuring the right material. Functions of M.P.C: Allocation of materials Follow up PURCHASE: This department is headed by the senior DGM. This is the department that has key responsibility for placing the purchase order (P.O) and procuring the right material. PURCHASE PROCESS: The technique of processing the right material from right supplier at a right price can be termed as the major function of the purchase. The steps carried out in this process of purchase are: 1. An initial check if there are any orders placed for similar material. If so then order placed is amended for the additional required quantity. 2. In the absence of any such order being placed there is a check for any rate contract (R.C) with the suppliers for the material intended. If any R.C is found, the order can be placed immediately 3. In absence of any such R.C, check is made for any similar order placed in the past. If there is any order placed and the quantity required is less than three times and if the number of order placed of the same orders being less than three times, a repeat order can be placed. 4. In absence of any such repeat purchases, tender is called for and the purchase order is released. STORES: Authorization Inventory control

42

This department is headed by the senior DGM. The major responsibility of this department is to store the material and issue them when requested by the authorized intender. Stores of BHEL-EDN: Maintain assembly store or component store. PCB stores: mechanical stores and electronic stores. W.I.P stores. Stores telecom Semiconductor stores. Photovoltaic stores. Energy meter and capacitor stores. Tool crib stores. Central tool crib stores. Inflammable and chemical stores. Scrap and surplus stores. Maintenance stores.

INDUSTRIAL ENGINEERING: Industrial Engineering is oriented towards optimum usage of the resource available. It includes the techniques like work study, time study, method study and PTS etc. Some of the advantages of Industrial engineering are stated below In calculating the expected time required to complete a project In fixing time standard for jobs

43

In production planning and control In analysis of man, machine and material flow In performance appraisal In computing efficiency of the individual In estimation of overtime required in completion of any time bound project

In decision making of Top management Make or Buy decision Assessing training needs Assessing manpower requirement As already discussed IE focuses towards optimization of resource available

Vendor rating

FUNCTIONS OF MARKETING DEPARTMENT Market exploration Order booking Offering Bidding Preparing annual budget projections

Exploration of market is very important for new products as well as oid products. Planning commission forecasts as well as based on the
44

projections of the working group, annul plans will be prepared by this department and in turn it will be always tracking the laying of the new electric line and tenders. Cost estimates will be given by Finance department, which makes the work easy for this department for quoting to a bid. Approach to marketing is different at BHEL as the customers are usually known and orders are of large size and value. The main function of Marketing Department is to procure manufacturing order in coordination with the commercial group. The central manufacturing agency is located at the corporate office in Delhi. It breaks a composite project and assigns to the required manufacturing units. BHEL usually adds a profit margin about 10-12% of the order. BHELEDN has a separate marketing department for each product group. BHEL has been a leader in the power sector for a long time. Its Turnkey capacity gives it a competitive edge. After Liberalization BHEL is acing tough competition from MNCs like Siemens ,ABB, Cegetec, and C-DOT etc. Some other customers are Tesco, MRL, and Jindal power company Limited. The process of sanctioning a project goes through the following stages : Pro active Post tender up follow

Marketing Tendering

The following ways are used for getting an order: a) Direct enquiry b) Bidding after floating an enquiry tenders and procures (annexure checklist for tender review), technical viability studies and

45

commercial analysis is done to select the best one, 80-90% of the orders floated have been bagged by BHEL. c) Global competitive bidding (funded by World Bank).BHELs international competitiveness is demonstrated by the fact that it has bagged 86% of the order floated for competitive bidding.

COMMERCIAL DEPARTMENT
Commercial department acts as an internal customer to the EDN. FUNCTIONS: Every month follow up has to be done. Preparation of plans. Based on the internal orders and shop floor capacity turnover plans will be prepared. Billing, invoice and dispatch

Commercial department issues dispatch and billing instructions, based on the above instructions the invoice will be prepared. In case of Exworkers, constructions for covering up insurance will be given to the consignee. If it is for destination, it is the duty of EDN to cover the insurance. In case of export invoice, packing list and GR form will be sent. Earlier even the payment of excise duty was rested with department but now the Finance department has taken over this function. Periodical monitoring i.e. monitoring the achievements, and

comparing that whether they are doing as per the schedule. Packing

MANUFACTURING PROCESS The marketing section procures orders from customers, through

advertisement, Propagandas and promotional methods. A copy of this

46

order is passed to the commercial section. The commercial section prepares a manufacturing order The Engineering on the basis of section makes a the customer note of these specifications.

specifications and tries to design the product. At the same time, a copy of the order is issued to the material management section so that the required material can be made available at the stores for production. Once the product are produced, they need to be tested by the testing section before being issued or transported to the customers sites.

SWOT ANALYSIS OF MARKETING DEPARTMENT

STRENGTHS: BHEL has a very good product mix that is place, product, price, promotion. Reputation. Brand image.

WEAKNESS: Limited competition. Dependence on collaborators

OPPORTUNITIES: High market potential Global market expanding Industrial growth upward
47

 Bench marking and best practices implementation Widespread network across the country and around the globe. Order and collaborations from overseas.

THREATS: Fast changing market conditions. New competitors emerging

HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE MANAGEMENT: With the changing business scenario, BHEL is awake to the change and challenges before it. In terms of new approaches to Human Resource Management; developing and sustaining a dynamic work culture which enables joint optimization of organizational goals and individual potential, taking care of changing aspirations of the people are the key areas of focus for the organization at this juncture. Human resource is very valuable and is an asset to any organization and it implies to BHEL too. BHEL has an effective HR department. Recently HRD separated to Personnel & Administration Department and it is now clubbed with EDP and headed by a common AGM. There is a DGM-HRD who envisages the function of HRD.

48

ORGANISATIONAL CHART FOR P & A DEPARTMENT

SM (Law & admin)

Deputy Officer

Sr.Personal Officer

STAFF

SDGM (CE MARKETIN G)

GENERAL MANAGER

GOVERN MENT APPROV

FINANCIAL APPROVAL

FEASIBILI TY STUDY

SENIOR OFFICER

49

PERSONNEL AND ADMINISTRATION DEPARTMENT

The Personnel and Administration Department takes care of all the policies, rules and procedures relating to various aspects of HUMAN RESOURCE MANAGEMENT and is intended to serve as a basis for the effective and uniform implementation of these across the entire organization. In other words, it is just managing the people by an effective personnel policy. BHEL is proud of the personnel policy that was framed more than 3 decades ago and updated very often. It provides various benefits to the employees. There is a common Head for Personnel and Administration Department. The duties of personnel and administration are widely classified into 4 wide categories. The various jobs handled under each head are listed below. There are 3 senior assistants, personnel assistants and office superintendents all handling serious functions. The entire department is headed by a DGM (HRD).

DISTRIBUTION IN HR DEPARTMENT: All the units have their separate HR departments, which administrate the HR functions at the unit level. Apart from this, there is a conferrable HR, which controls all HR departments. This conferrable body is responsible for all the policy, decision-making and other key functions.

WORK CULTURE: The most priced assets of BHEL are its employees continuous training and retaining of a positive work culture and participative style of management. This has resulted in developing of a committed and motivated work force, which is ready to meet the challenges of the future. Workers participation at all levels including the shop, the plant and even the board has become the
50

norm at BHEL. Representatives of workers actively participate in various advisory bodies. All employees are given encouragement to take part in cultural, sports, educational and other activities. A unique work culture has set a tradition of individual responsibility and commitment, which reflects in every sphere of BHELs growth.

51

COMMITTEES: BHEL has a corporate policy and culture that encourages the committees at various levels of operations for the various aspects. Some of the committees that have contributed to the productivity are the safety committee, canteen management committee etc. EMPLOYEE CLASSIFICATION 1. EXECUTIVES E1 E2 E3 E4 E5 E6a E6b E7 E8 E9 -Officers \ Engineers -Senior Officers \ Engineers -Deputy Manager -Manager -Senior Manager -Deputy General Manager (DGM) -Senior Deputy General Manager (SDGM) -Additional General Manager (AGM) -General Manager (GM) -Executive Director (ED)

2. SUPERVISORS 3. ARTISANS 4. SUPPORTIVE TECHNICAL STAFF 5. UNSKILLED WORKERS 6. SEMI SKILLED WORKERS 7. CLERICAL AND OFFICE STAFF 8. TRAINEE ENGINEERS\ OFFICERS
52

9. TEMPORARY AND CASUAL WORKERS

53

IMPORTANT FUNCTIONS OF HRD

1. TRANING AND DEVELOPMENT OF EMPLOYEES:

Training is one of the efficient tools that help an organization in avoiding obsolescence of the knowledge of manpower. Some of the reasons for training are: Technological obsolescence Motivation Attitudinal changes Reduce manpower turnover Improve the qualities Increase the productivity Personnel growth

Training is classified into two types: In house training External training

IN-HOUSE TRAINING When the training is conducted within the BHEL EDN premises it is considered In house training. The trainers would be internal or external; usually an expert in the field is called for such training. There are training coordinators to evaluate the need for any training required in their department. They further co-ordinate with HRD in organizing the training program. Some
54

of the common topics covered are personality development, aptitude, social responsibility, social development and attitude etc.

EXTERNAL TRAINING These are the training programs, which any executive can undergo and are usually conducted by the professional consultants from any part of India or abroad. These include the workshops that are conducted in hotels and the programs conducted by the professional bodies or educational institutions. The subjects dealt with include personality development, stress management, etc. All are allowed to attend such program depending on the importance of the subject and the designation of the executives. The external training is usually for high cadre employees.

BUDGET The total budget allocated for the training is Rs 25 lakhs. The amount is exclusive of the sum paid to the trainers and the training program. It does not include traveling expenses related to training.
2. TRAINING FOR APPRENTICESHIP AND MANAGEMENT

TRAINEES: BHEL has stopped recruiting for the lower level, which required less qualified persons. Undertaking apprentice meets this need. Every year 600-700 apprentices are selected for various levels of jobs with different background. The apprentice of various trades and specializations are recruited depending on the requirement placed by the various departments.

MONTHLY ENROLMENT:

55

Every apprentice is fixed a monthly stipend of Rs. 1900/-, as per the Government Policies and an additional Rs. 50 is provided from BHEL, amounting to a net stipend of Rs.1950. Every apprentice is given the canteen facility, which gives the food at a subsidized rate. Apart from this, they can also make use of companys transport. They are even provided a pair of uniform.

SELECTION PROCESS OF APPRENTICE: The apprentices are selected from all over Karnataka through a campus recruitment process. written test and interview. The process of selection is through

MANAGEMENT TRAINEES:

BHEL has the policy of employing only at lower level of executive cadre, which is E1 class. Later they are promoted based on their service and merit. The executives selected on the E1 classes are called the management trainees. They are on the training period of one year, later they are all absorbed as regular permanent employees. In the period of training they are offered a salary of Rs 7000/-, then they are finally selected as engineers.

3. METHOD OF SELECTION FOR MANAGEMENT TRAINEES: The various steps followed in selection are as given below. 1. Advertisements: The Corporate Office, Delhi, specifying the needs of all the units and offices, gives Advertisements in all major newspapers.

56

2.

Screening: Written examination in which, Part1 constitutes academic specialization of the candidate, Part2 constitutes general awareness and aptitude. Both the parts are of the objective type.

3.

Interviews: Interview committee conducts the interview of the selected candidates on various aspects of individual like enthusiasm, initiative, creativity, attitude, behavior, loyalty factors, etc.

STUDENT TRAINEES: As a social obligation and responsibility, BHEL EDN is continuously helping young students by providing the necessary project training. In plant training (non-technical aspect) (M.B.A, M.COM) Industrial training (technical aspect) (Diploma, B.E, M.E) Industrial visits.

CO-ORDINATION IN SEMINARS AND MEETINGS: One of the important activities of the HRD is coordinating the various seminars and meeting organized in the premises. It is the responsibility of HRD to arrange for the necessary facilities and infrastructure. In certain cases, they even host seminars, which are of social benefit.

TRANSFER POLICY: Executive employee of the company is liable for transfer from one department / section/ job with in the same unit / division or from one
57

unit/ division of which company to another or from the discretion of the management. At the same time while implementing the transfer policy the carrier base promotion policy has also to be reckoned with.

58

WELFARE AND BENEFITS

LEAVE TRAVEL CONCESSION (LTC): Once in every 2 years, employees can go on LTC to any desired destination in India along with their family members. An employee of the grade of DGM and above can claim airfare, where as others can claim for second-class AC rail fare. RETIREMENT BENEFITS:
Individuals who retire on completion of service duration get some of the benefits if he has been in continuous service for the past 3 years. They include

Pension Provident fund Group insurance etc.

VEHICLE LOAN Vehicle loans are provided for all the permanent employees depending on their cadre for a 2 wheeler/4 wheeler. Employees of the cadre of E2 and above are only provided a 4-wheeler loan. Other employees are provided with 2 wheeler loans. The loan amount is Rs. 15000/- and 1, 10,000/- for twowheeler and 4 wheeler respectively. The loans are made available at the interest fixed by SBI. DEATH COMPENSATION In case of death of any of the employees during service, BHEL provides all the benefits that are due to the nominee. Provident Fund and Gratuity payments are allowed to the immediate payments, it however doesnt provide any job compensation for any of its family members. Any of the savings during the course of service and any unsettled cashable leaves are paid to the family members immediately.
59

COMPUTER LOANS All the executives are entitled to a computer loan of Rs 80000/- at an interest of 1.8% per month (fixed by S.B.I).

UNIFORMS: Every employee and casual labourer is provided the material for a pair of uniform every year. The stitching charges are paid by the company, which is fixed by the Corporate Office.

INTERNET REIMBURSEMENT: Executive of E1 to E5 is entitled to claim for 100 hours of Internet charges. Where as the E6 and above can claim for 250 hours for a year.

MEDICAL EXPENDITURE: The company meets all the medical expenses incurred by the employees. The claims can be made on monthly basis. In case of high amount for major surgeries or such, the advance can be obtained by producing the necessary documents. employees. The claims can be made for every family member of the

TRAVELING ALLOWANCE: Any of the traveling expenses incurred by an employee for any official work is met as per the guidelines. The Executives of E5 class and above can claim for carfare.

NEWSPAPER ALLOWANCE:

60

Every employee is given newspaper allowance every month. The amount is however fixed by the Corporate Office and is included in the salary.

HOUSING FACILITIES The employees are eligible to claim accommodation facility.

DEARNESS ALLOWANCE DA is granted to compensate the price increase above CPI 1099 points, to which the revised salary grades relate. Payment of DA based on slab basis relate to percentage increases over quarterly of AICPI 1099.

INCENTIVES/ BONUS BHEL does not practice incentives on any individual performance. Every year based on the turnover and profits, yearly bonus is given to all its employees as fixed by the corporate office.

WORKING HOURS Every individual has to put in a minimum of 48 hours of work per year, 7:30 am to 4:35 pm in all working days except on Saturday (7:30 to 12:30 pm), Sunday is weekly off.

LEAVES
Casual Leave (CL): During the period of training and on absorption, every employee is eligible for CL of 10 days per year. CL can be claimed even for half a day.

61

Earned Leave (EL): During the period and on joining, each employee is entitled to EL with salary for 30 days in the first five years of service. The minimum limit of the accumulation is 240 days.

Maternity Leave: All female employees, excluding apprentices, according to the Apprentices Act 1961, are entitled to the grants of maternity leave. Subject to the provision of this act, every woman shall be entitled to and her employer shall be liable for payment during the period of her actual absence immediately proceeding and including the day of her delivery and for the immediate six weeks.

Canteen Facilities: Every employee, temporary or casual is provided with the canteen facility. The food is available at subsidized rate.

LAW & ADMINISTRATION Law & Administration is playing a vital role in maintaining the company rules & regulations & to give justice for the employees. It has its own legal advisors to maintain justice in the organization. An executive takes care of the departments. Quite a large number of disputes of BHEL-EDN are about the quarrels between two parties regarding the breaking of company rules & regulations laid by corporate office. Disciplinary action is taken against the employees who do not obey the rules. Depending on the seriousness of the case, it is transferred to the court.

4. PERFORMANCE APPRAISAL
62

Every authority maintains Annual Confidential Report (A.C.R.) of all his subordinates with the performance recorded very often. It is kept highly confidential and is available only to the senior authority and the personnel department. During the time of performance appraisal the promotion committee discusses the various positive and negative factors.

63

PROMOTIONS Every employee is eligible for promotion. The criterion for promotion is time bound and performance/merit based. The promotion is given once the employee completes the stipulated duration and then based on the performance; promotions are awarded. The list is usually released twice a year, once during June and other during December.

PROMOTION POLICES AND RULES: Objectives: To provide all employees with broad equality of opportunities in growth and career prospects. To ensure fairness, equality, consistency and uniformity in the matters of promotion of employees in all the units/divisions of the company To sustain the high morale of the employees by informing them of the promotion opportunity existing in the organization.

PROMOTION RULES: Classification of group/cadres: For the purpose of promotion and career growth all the employees are included in one of the following groups/ cadres.

Sr. Executive cadre Executive cadre Supervisory cadre Skilled labour Semiskilled group

E6 and above E1 to E5 SA1 / SB 1 to SA7/SB7 & IES A3 / B3 to A11 / B11 A2 / B2

64

Unskilled group

A1 / B1

Sr. Executive cadre is treated as all company cadres. Promotion to and within this cadre will be regulated on a company wide basis and carried out by the corporate office on the recommendations of the special committee.

VOLUNTARY RETIREMENT SCHEME (V.R.S): Realizing the organization structure not being a pyramid and the number of people in the middle management being some of the lower class, BHEL has come out with V.R.S. The benefits to the employees were as below: 45 days salary of each completed year of service. Claim on gratuity and provident fund as per the legal rules under the various schemes.

Exit Interviews: Not many people used to leave BHEL prior to liberalization. Now when many MNCs have opened their offices and are offering better prospects, it is observed that considerable amount of people are quitting for better prospects. BHEL cannot offer a higher pay package to any position other than defined in the personnel policy. Exit interviews were conducted for the employees, quitting BHEL. A specific form is to be filled by every employee and even inferences are taken on the working and the improvement of the organization. Dealing on their reasons for quitting the organization, BHEL has found that better prospects are the main cause and it is not really possible to tackle this problem; BHEL is trying to develop loyalty among its employees.

Medical facilities:
65

Medical facility unit has own hospital and has a contact with a chain of hospitals like: St. Johns hospital for neurology, Apollo hospital for cardiology,Mallya , CMC Vellore for cancer disease , KIMS Service is free for the employees in these hospitals and facilities are given for the employees and his family, but for children only up to 18 years of age. Depending upon the grade of the employee the hospital facility is provided as General ward ------employee Semi private ward Private ward ------for E1 ------for E11

INSURANCE: Insurance establishment is responsible for two types of insurance Group saving insurance connected with corporate office and LIC Group saving linked insurance

PARTICIPATIVE MANAGEMENT: The avenues, opportunities and means available for all levels of employees to participate in the companys policy making, decision making and planning of companys systems, procedures, improvements and business operations is known as participative management

PARTICIPATIVE MANAGEMENT IN BHEL: Participative management in BHEL is implemented in BHEL through various forums, committees, representations, bargain able means, awards, recognitions and informal negotiations, counselling or discussions.
66

AVENUES IN BHEL
JOINT COMMITTEE: Is a tripartite committee comprising of all trade unions, all local managements and corporate policy making body ofBHEL including CMD and board of directors. Joint committee is an apex committee which decides on key issues like wage revision, bonus, companys career policies, operations or anything that would apply to BHEL as a whole.

TRADE UNION: Recognized union/s in units will negotiate with union on local and unit level issues. There can be single or multiple unions in each unit with or without affiliation to any national trade union organisation.

PLANT COUNCIL: Plant council is a body comprising of union nominees on the one side and the senior executives on the other side. They will meet periodically to discuss and sort out many issues concerning business operations at unit level.

SHOP COUNCIL: Shop council is a wing of plant council which is formed at departmental level to discuss problems, performance and plans at departmental level and comprises of members nominated by union and management

WORKS COMMITTEE:

67

Is a statutory body with 8 members elected and equal number nominated by management? They would discuss working conditions, quality of work life and recommend solutions to problems, if any.

CANTEEN MANAGING COMMITTEE: Is an elected body with three members from the workers and equal number nominated by the management. The committee ensures smooth working of the canteen and suggests plan of improvement.

SPORTS COMMITTEE:

Is an elected body with three members and with equal nominated representatives from management. The committee facilitates, sports, literary and cultural activities from amongst employees.

BHEL EPF: Employees provident fund trust of BHEL is an elected body of trustees and nominated members who manage the provident fund account and the finance under this fund including loan disbursement and final settlement.

SAFETY COMMITTEE: Central safety committee is a nominated body which studies, solves and improves safety issues in the organisation. It generates enhanced awareness amongst employees and recommends safe work practices

SAFETY STEWARDS

68

Safety stewards are nominated by the management to represent each work area, educate co-employees, bring to the notice of management various problems and issues concerning safety.

COMPANY APPOINTED COMMITTEES: Plant quality committee Product committee HSE apex committee HSE working committee Olic official language Grievance redressed committee HRD governing council Training co-ordinators scheme Inference facilitators Productivity co-ordinators

AWARDS AND RECOGNITIONS: Excel awards Impress inference and productivity awards Awards for sports, cultural and literary activities

OTHER ASSOCIATIONS BHEL executive association BHEL officers club WIPS [women in public sector]
69

BHEL supervisory staff association BHEL SC ST welfare association BHEL kannada hitharakshanasamithi

OTHER FORUMS Management trainees hostel administration Committee BHEL township residents forum BHEL retired Employees forum BHEL credit co-operative Society BHEL house building society

INVOLVEMENT BY PARTICIPATION IN OTHER ACTIVITIES Social responsibility Environment Children summer camps

70

SWOT Analysis of Human Resources Department:

Strength:

BHEL has an effective human resources management in the company. Highly motivated and large work force. Good work culture, job security and high employment. Dedicated employees. High job security. Sense of commitment, involvement and belongingness. Assured career growth. Human touch.

Weakness:

Imbalance in distribution of workload among the employees. Poor accountability on people contribution and performance. Time bound promotion policy and high job security leading sometimes to improper working on part of employee.

Opportunities:

Predetermined customers and good contractual relationship. Availability of labour at cheap costs.

Threats: Age factor of employees. Outstanding payments. Curb on manpower.

71

Labour turn-over in highly skilled, technical & areas of expertise Huge salary bill

FINANCE DEPARTMENT
Departmental Structure

Executive Director

A.G.M Finance

Senior D.G.M 1 D.G.M 2

Senior

D.G.M - 1

D.G.M 2

Senior Manager 1 Manager 3

Senior Manager 2

Senior

72

Manager 1

Manager 2

Manager 3

SECTIONS OF FINANCE DEPARTMENT The various sections under finance department are: Book and budget Sales Priced stores ledger Costing Establishment Bills payable

Books & budget: Collection of accounts from different sections Preparation of trial balance and final accounts Coordination with auditor Helps statutory auditor

Sales: It deals with Collection Debtors ledger

73

MIR etc.

Priced stores ledger: This section is responsible for maintaining accounts for the stores in monetary items.

Costing: Each product is having a separate section. It sets the cost that is used by commercial group to add profit margin to set the price.

Establishment: This section is responsible for cash disbursements and payment. It handles all the payment to the employees such as

Benefits: Medical reimbursement Provident fund Incentives Loans and advances etc.

Bills payable: This section handles the payment to be made to the suppliers once the S.R.V (store receipt vouchers), P.O (purchase order) invoice are received, cross verification of the P.O terms, quality and quantity assurance with the S.R.V
74

and invoice. Once all the claims are found satisfactory, the payment is issued as per the terms.

Features: BHEL is the first government company to publish accounting policies. They have centralized cash credit control and centralized cash management. BHEL units cannot borrow directly from outside but from centralized component account. The surplus funds of any BHEL unit are allocated to other units and interest is charged on them.

OTHER IMPORTANT FUNCTIONS Payment to establishment wages, salary etc. Payment to suppliers, 1. Indigenous purchase 2. Important purchase (e.g. purchase, bills) Terms of payment for purchase are: Letter of credit (L/C) (most preferential) Advance (D.D) Cash and delivery (C.O.D) Site draft (S.D) (if supplier is not familiar) Pro-forma payment

SERVICE BILLS: This section maintains bills for payment of Factory service
75

Maintenance (civil & mechanical)

PURCHASE FINANCE: Procurement of both indigenous and imports, 300 crores of material is purchased every year and 50-60% are imports.

INTERNAL AUDIT: The main functions of internal audit are: Fault recognition Inferences for improvement Overseas work of book budget Assisting working level people Internal audit conducts site audit, once in a year.

IT is a practice of conducting an internal audit before this statutory external audit and this audit is conducted by CAG (Controller Auditor General).

ADDITIONAL INFORMATION: Weighted average method is used for inventory valuation. Companies use act of 1956 straight line depreciation method on fixed assets. By income tax act 1961 written down value method is used for charging depreciation

TURN OVER FOR LAST FIVE YEARS ( Rs.CRORES)

76

77

PROFIT BEFORE TAX (PBT) FOR LAST FIVE YEARS (Rs.CRORES)

78

79

80

SWOT ANALYSIS OF FINANCE DEPARTMENT

Strength:

BHEL has consistent track record of growth, performance and profitability.

Highly experienced accountants, CA, ICWA employees are recruitment.

Weakness:

Stringent rules are involved in preparing accounts Enormous paper work is involved. Errors are possible in calculations of accounts.

Opportunities: Paper work can be reduced by using latest technologies

Threats: Competitors will be able to view the progress and performances of the company which is prepared by the finance department.

Disinvestment policy of the government.

81

QUALITY DEPARTMENT
ORGANISATION CHART OF QUALITY DEPARTMENT:

SM (Welfare) P&A

DGM (P & A)

DGM

Personal Officer

DM (P)

DGM Assistant General Manager DGM (P) GENERA L

QUALITY ASSURANCE: BHEL has acquired ISO-9000 certification for most of its operations. Emphasis is given to the highest standards of quality at every stage of operations through implementation of quality management systems and

82

procedures in line with international standards and practices. International bodies like ASME and API have awarded certification to BHEL after Comprehensive scrutiny and verification of systems and operations in force is in various units. Calibration facilities / testing laboratories have also been accredited under the NCTF scheme being operated under the aegis of DST (Department of science and technology).

Focus on Quality: ISO 9001 certification conferred by the Bureau VERITAS Quality International (BVQI) UK, on Electronics Division has enabled it to strengthen its presence both at home and in the International market. A rigorously quality assurance programme is followed by BHEL-EDN. The facilities and procedures being used, dovetail to the requirement of this quality plan. The Quality Manual defines quality responsibilities, relationships, systems and procedures for all functions and personnel necessary to focus and integrate the quality activities. Latest, high precision test equipment in each area of testing is available in the mechanical, electrical, electronics and chemical laboratories. A full-fledged metrology laboratory (accredited by National Accreditation Board for Testing and Calibration laboratories) caters to periodic in-house calibration of all mechanical gauges and fixtures. All electron test and measuring instruments are calibrated regularly at the units well-equipped Instruments calibration laboratory. The concept of quality circles has been an integral part of EDNs operations and has resulted in commendable improvements in systems and processes. The proximity and access of BHEL EDN, Bangalore to a number of defense and civilian test and evaluation facilities like CQAL, ETDC, CPRI, IISC and LCSO has been a great advantage in keeping up with quality standards (including different international standards and documentation). EDN also
83

has a close working relationship with organizations like Bharat Electronics (BE), National Aeronautics Laboratory (NAL) and several defense laboratories. Availability of subcontractors and vendors certified and approved by agencies like C-Dot, defense and space research organizations is another distinct advantage in Bangalore. Inline with corporate policy on Environment Management Systems BHEL Bangalore based units are certified under Environment Management System ISO.

NATIONAL AND INTERNATIONAL RECOGNITION: BHEL photovoltaic modules certified to the international standard IEC 61215, by Joint Research Centre, European commission, ISPRA, Italy.] ISI certification (IS 13779) for Electronic Energy Meters. HN Thandani award conferred on EDN by the Indian Institute of Industrial Engineering in recognition of innovative development and support to industrial engineering and productivity. IETE Corporate award for EDN by the Institute of Electronics and Telecommunication for outstanding performance and excellence in Electronics and Telecommunication. EDNs quality circle won the second prize in the National Convention of Quality Circles. For the second consecutive year, EDN received the British Safety Council Award. As a commitment towards Total Quality Management (TQM) in line with CII / EFQM guidelines, annual improvement action plans are being implemented involving techniques like; Benchmarking
84

Business Process Re-engineering Six Sigma and Kaizen

These are resulting in cycle time reduction for further improvements in delivery and technological process up gradation, leading to improvement in quality of products and enhanced customer focus on a continuous basis. To fulfill its role as a corporate citizen towards protection and conservation of the environment and ensuring that its products and systems also meet such requirements, BHEL has finalized a Corporate Environment Management Policy for ISO 14001 certification. For ISO 9001 certification the INTERNAL AUDIT is done once in 6 months by the BHEL personnel independent of their functions and the External Audit is done by BVQI (Bureau Verities Quality International) The management Responsibilities regarding Quality are: Management must define and document its policy objectives and commitment to quality. Ensure that it is understood and implemented at all levels. Define responsibilities and authorities. Identify verification activities and assign to competent personnel with adequate resources. Appoint a management representative.

THE CII MODEL FOR TQM (followed by BHEL)

85

Senior Manager Senior Manager Senior Manager

Senior Deputy Manager Resources Manager

Impact on society Deputy General Manager

ENABLERS

RES

Senior Manager

86

SELF-ASSESSMENT

Continuous improvement Business Excellence

QUALITY SYSTEM STANDARDS

ISO

INTERNATIONAL

ORGANISATION

FOR

STANDARDISATION ISO SERIES OF STANDARDS ISO 9000, ISO 9001, ISO 9004

ISO 9001: Covers management responsibility, contract review, control of design, purchase, documents, production, testing storage etc. All units of BHEL are ISO 9001 certified Certification Agency- BVQI (Bureau Veritas Quality International) Internal Audit once in 6 months BVQI (external) Audit once in 6 months First certification was in July 1993 Recertified in Nov 1996(once in 3 yrs) Further recertified in Dec 2000

87

ISO 9000-2000 VERSION- BRIEF OVERVIEW Revised standard is compatible with principles of ISO 14000 and TQM. It centers on results achieved through P-D-C-A (Plan, Do, Check, Act) and process approach. Focus on business needs, continual improvement through measurable performance parameters leading to customer satisfaction. Mandatory documentation requirement simplified; required in 6 of the following areas. 1. Document control 2. Quality records 3. Internal audit 4. Control of non-conforming products 5. Corrective action 6. Preventive action

ISO 14000 (ENVIRONMENT MANAGEMENT SYSTEM) Covers Statutory, Regulatory Acts (Pollution, Chemical Treatment, Discharge etc) Energy Conservation, Resource Utilization

88

MANAGEMENT INFORMATION SYSTEMS DEPARTMENT

BHEL has decided to take up information technology as a business initiative with its existing expertise in IT and rich domain knowledge in power station engineering, servicing and allied areas. BHEL can leverage itself to diversify into the new economy sector of InfoTech and IT enabled services. The company is strengthening its IT linkages within the organization and is evaluating its approach towards emerging opportunities in IT, including ebusiness which is fast transforming the traditional ways of business transactions. With these strategies, initiatives and continuous efforts to enhance its competitiveness by reducing cycle time, cost and improving quality, BHEL is on its way to achieving its vision of being a world class innovative, competitive and profitable engineering enterprise providing total business solutions.

Computerization in BHEL commenced at the very inception of the company in the sixties. Initially, the manufacturing units were dependent on the technology transferred from the collaborators through collaborator supplier systems procedures and computer programs with suitable adaptations. The systems and procedures formulated those days laid a strong foundation for the development of an information technology base in the years that followed.

Over the years, starting with the unit records machines, the computing power and its technology was gradually upgraded in line with the functional needs of the company. Suitable changes were adapted in the information technology scenario.

89

Today, computers are being deployed in all facets of the companys operations both for business and engineering applications. supported by state-of-the-art information technology. Each of the manufacturing units has a strong functional, computerized system base

The major units have centralized mainframe computers, while minor ones have got mini-computer systems. The front-end-user-friendly desktop personal computers are used in each of the units extensively.

In the data communications area, all the units are linked up through a wide area corporate data network, BHELNET. Each of the major units is in the process of setting up its campus-wide backbone network supported by the LAN for inter-office/departmental connectivity for systems integration.

The company has a professional outlook towards the information technology. Strategies and strengthening in IT infrastructure is in line with the future business requirements. A core group of IT personnel are available in each of the units with proper support and direction from a similar apex body at the corporate level. The enterprise-wide computerized systems, web enabled technology, e-commerce concepts, collaboration and concurrent engineering, Simulation modeling and video conferencing are some of the newer areas considered for adaptation today, for meeting the business challenges of the future. SAP IMPLEMENTATION: BHEL-EDN in co-operation with Wipro is in the process of implementing SAP, an ERP Package for the proper integration of business process among different departments. They have planned to implement SAP in about six months time.
90

91

MIS SUB SYSTEMS

MIS

Transaction Office Processing Automation System (TPS) System(OAS)

Management

Decision

Reporting

Support

System(MRS)

System(DSS)

FACTORY SERVICE DEPARTMENT

Functions : Maintenance services Power and transport service Maintenance of information technology systems (PCs) Canteen, gardening, lift, etc. Design and fabrication special type of machines Operation and maintenance of vehicles
92

Maintenance at township

Transportation Section: In EDN, there are 4 Fork lifters, 3 tractors, 2 trucks and 3 cars. Additional cars for the moment of Executives will be hired. Maintenance and service of all these vehicules come under the perview of this department.BMTC buses are hired for facilitating the employees to reach factory and back home at the beginning and of each shift. Drivers will be given identity cards except these; other people are not permitted to drive in the vehicles into the premises.

Township: InBangalore, ther are 169 fiats allotted on the basis of seniority. Maintenance of these flats also comes under this department. Civil maintenance bore well maintenance: this department will look after sports club maintenance etc.

Maintenance: This section will look after mechanical and electrical maintenance. Since this is the process industry, several types of machines are used. For the maintenanace department, starting time is receiving the complaints, down is getting the requsition slip and end time is handing over the machine to production department. There are 2 types of maintenance viz. preventive and breakdown maintenance.

93

BUSINESS ACTIVITY FLOW CHART

Leadership

Policy & strategy

Customer satisfaction

SENIOR ENGINEER

EX-FOREMAN SAFETY

MANAGER (Safety)

SENIOR MANAGER (Factory Service)

PLANNING AND DEVELOPMENT STRATEGIC BUSINESS PLANNING MATERIAL PLANNING, INDENTING, ORDERING [P.I., P.O., VENDOR DEVPT.

MARKETING SECURING ORDERS THROUGH TENDERS AND NEGOTIATIONS ENGINEERING BOM, DEVICE LIST, MID

COMMERCIAL PROJECT MANAGEMENT, CONTRACTING

RELEASE OF M.O. MANUFACTURING ORDER

MATERIAL RECEIPT GOODS INWARDS / INSPECTION / SRV

PPC PRODN. PLANNING & CONTROL MRS, LOADING & SCHEDULING

94

SUMMARY OF ANALYSIS AND INFERENCES Problem Analysis

1. Slow adaptation of new technology

2. To improve the sales turn over ratio.

3. To reduce the cost of production time. 4. To improve quality to satisfy customer future needs. 5. A new technology will reduce the cost and time also the company will be able to cater the requirement of the customer. Scope:

1. Compare analysis between the existing technology in BHEL and advance technology in the market. 2. To determine the effectiveness of the new technology. 1. 2. Data Collection: Primary Data Secondary Data

Primary Data: 1 Direct marketing with employees. 2 Guidance of product guide in BHEL. Secondary Data: 1 Books a) Marketing Management(Philip Kotler) b) Production Management (Ronald J. Ebert) 2 Company manuals

95

3 BHEL website 4 Business World Limitations:

Need for study 1) Competitors of BHEL are adopting new technology very fastly and grabbing. The marketing in term reducing the share of BHEL. 2) To meet customer's anticipation with high quality production with minimum cost. Inferences

1. Control Equipment to continue to be main contributor 2. Growth in Photovoltaic business should be anticipated 3. It is also necessary that the job rotation to be made in periodical intervals. 4. Effective training should be imparted to the employee over the change in technology. 5. Shift in Telecom business from land line to mobile 6. To tap business in WLL and Access products
7. Entry into defence areas like Embedded Electronics, Naval Mines and

Torpedoes, Computer Graphic Images (CGI) based Simulators, Battle Management System, and Combat Training Centre (CTC) etc.
8. - Very important of all is the marketing department function i.e. it has

to do good advertisement and build brand awareness in the market. 9. - Job rotation, job enlargement, job enrichment needs to be done frequently in EDN which would motivate a employee to do better. 10. - As BHEL faces a tough competitions from private firms it must formulate better policies that attract customers.
96

11. - In order to survive and to be a leader BHEL needs to come out of new products continuously and increase its product line. 12. - BHEL also needs serious technology upgrading since in some production units, the machinery being used is as old as 1980's. 13. - It needs young upgraded work force than an older force so it needs to replace them gradually as time permits. 14. - It needs also to eliminate the excess work force. Findings - BHEL-EDN's products are priced higher than its competitors. - Recruitment process has been increased from last two years, due to increase in demand. - BHEL among the public sector claims to be the best and which is true. - BHEL has learnt it hard way and has been continuously striving to compete with the competitors and has been successful. - BHEL-EDN does not approach the customer instead it waits for the customer to come to it since its products are priced higher than other players in the field so it thinks that those who can afford its products will automatically approach it. - Because of computerization there is cost reduction in the form of reduction in paper work and also quickness of action. - BHEL is showing consistent growth prospective. - There has been constant rise in BHEL-EDN's profit year after year. - BHEL-EDN is managing its Human Resources and marketing very effectively by conducting various types of training and other sessions. - It has centralised many functions which helps of better control and coordination. 5.2 Inferences
97

- Very important of all is the marketing department function i.e it has to do good advertisement and build brand awareness in the market. - Job rotation, job enlargement, job enrichment needs to be done frequently in EDN which would motivate a employee to do better. - As BHEL faces a tough competitions from private firms it must formulate better policies that attract customers. - In order to survive and to be a leader BHEL needs to come out of new products continuously and increase its product line. - BHEL also needs serious technology upgrading since in some production units, the machinery being used is as old as 1980's. - It needs young upgraded work force than an older force so it needs to replace them gradually as time permits. - It needs also to eliminate the excess work force.

3.1 Statement of the problem To find out the market potential for control equipments.

3.2 Title of the study A study on market potential for control equipments manufactured by BHEL-EDN, Bangalore.

3.3 Objectives of the study To study the market potential for the control equipments in Bangalore. To find the influence of Word Of Mouth (WOM) communication in purchase of the products like control equipments.
98

3.4 Need for the study As the company is planning to bring a new product to the market, it is important to estimate the market potential of the product in the market. Estimating the market potential for a business is critical in evaluating its viability and provides an estimate of the maximum total sales potential for a given market. Once the estimated market potential has been calculated, it is possible to determine if the market is large enough to sustain our proposed business or sustain an addition competitor in the marketplace. It is important that the estimated market potential sets an upper boundary on the market size and can be expressed in either units and/or sales. It is also important to study about the sources through which the customers collect the information about the products and the services, so that we can try to promote our products through those channels. Word of mouth communication also playing one of the important role in the organizational buying. So it is important to know whether there is influence of word of mouth communication in purchasing of the products like electric control panels. If there is an influence of word of mouth communication, then the company has to concentrate in bringing the quality and durable product to the market and also it has to concentrate on its after sales services, as the customers mostly communicate about the after sales service to one another. It is necessary to know about the awareness level about the company in the market, so that it will be easy to estimate the expenditures to be incurred to promote the product. It is also important to know about whether the customers who are aware about the company are having favorable opinion about the company to look back into its strategies. 3.5 METHODOLOGY 3.5.1 Type of the study This study is descriptive in nature as it involves the study of market potential for the product, it covers the understanding of whether the respondents require

99

the control equipments or not, their sources of collecting the information and also studying the awareness level about the company among the respondents. 3.5.2 Sources of data
a) Primary b) secondary

(i) To attain all the mentioned objectives we relied on the secondary data. We drafted the questionnaire for the companies, asked them to fill up the questionnaire and got the necessary information to attain our stated objectives. (ii) Secondary data was collected through BHEL publications and websites. 3.5.3 Sampling Plan a)The sampling method adopted for the study was non probability Sampling. The samples were selected on the basis of three criterions. Firstly the companies should be active manufacturers in country. Secondly, they should have the in hand projects and they should have the corporate offices in India. b) Sampling units were the distributer of powers. c) Sample size A sample size of 30 is taken for the study.

3.5.4 Tool for Data Collection: A questionnaire was been designed as a tool for data collection. It contained the questions for understanding the requirement of electric control equipments, whether they are ready to purchase or not, their sources of collecting the information about the products and the services and their awareness level about the company. 3.5.5 Control method
Personal interviews were used to contact builders.

3.6 LIMITATIONS
100

Within the given time frame it was possible to meet around thirty companies only.

Only major companies have been considered.

Only major companies were considered for the study 3.6.1 Tool for Data Collection: A questionnaire was been designed as a tool for data collection. It contained the questions for understanding the requirement of electric control equipments, whether they are ready to purchase or not, their sources of collecting the information about the products and the services and their awareness level about the company. Table .No:4.1 Table showing No. of customers purchased electric control equipments

Responses No of respondents Yes No Total 30 0 30

%of respondents 100 0 100

101

Graph .No: 4.1 Graph showing No. of customers purchased electric control equipments

Interpretation Out of thirty respondents, all the respondents told that they have purchased the electric control equipments, i.e. 100 percent of respondents responded that they have purchased the electric control equipment. Inference It is obvious that, the companies need the electric control equipments and already they are using the control equipments in their projects for the safety purposes. 2) You mostly rely on a) Single supplier b) Multi-supplier

Table.No:4.2 Table showing dependence of customers on suppliers Purchase option Single supplier Multi supplier No of respondents 8 22 %of respondents 26.67 73.33
102

Total

30

100

Graph No: 4.10.1 Graph showing Awareness about BHEL amongst respondents

Interpretation Respondents were asked whether they are aware about the Bharat Heavy Electricals .Ltd or not.87% of the respondents responded that they are aware about the company. And only 13% of the respondents responded that they are not aware about the company. Inference The Bharat Heavy Electricals.Ltd is the well known company in the market. It has well established its roots in the market and has created well awareness in the market. This company awareness in the market. 11) If yes, what is your opinion about this company? a) Favorable b) Unfavorable
103

doesnt have worry much about creating the

c) Dont know

104

Table No: 4.11.1 Table showing Opinion about the BHEL

Responses Favorable unfavorable Dont know Total

No of respondents 26 0 0 26

%of respondents 100 0 0 100

Graph No: 4.11.1 Graph showing Opinion about the BHEL

Interpretation Out of the 87% companies who are aware about the company, all of them have favorable opinion about the company. Inference The company is well known for its good quality of products and the services. The company is providing the good quality of products to its customers..

105

Table No: 4.11.2 Table showing number of Potential buyers Responses Yes No Total No of Respondents 25 5 30 % of Respondents 83.33 16.66 100

Graph No: 4.11.2 Graph showing Potential buyers

Interpretation Out of the thirty respondents who responded to the question, 83% told that they ready to purchase the control equipments, if the company provides all the necessary criteria that they look into the control equipments.Only 13% of the respondents told that they dont purchase from this company.

106

Inference The new product control equipment has a good potential market with reference to Bharat heavy electricals among the companies of the Bangalore. The companies are in need if the electric control equipments as they use it in their companies for the safety purposes. 5.1 Summary of findings: All the companies are using the electric control equipments in their projects. The companies are giving prime most importance to the electrical safety in the companies constructed by them. Most of the companies rely on the multi suppliers. They rely on multi suppliers, because they may get the price benefits. So it is very difficult to retain these customers as they will be always having the multi options.

When it comes to the criteria that the companies look into when purchasing the control equipments are, the price, the company brand name and the quality stand as the three major criteria which influence the purchase of the electric control equipments. After sales service is the least preferred criteria when it comes to the purchase of electric control equipments. This indicates that the customers look into only tangible things like price, the company brand name etc., or else we can say that the products like electric control equipments need less after sales service.

The majority of the companies rely on the consultants for the information about the products and the services. Secondly it comes to the industry websites which provide the information
107

about the products and the services. Thirdly it comes to the Word of Mouth Communication through which the companies collect the information about the products and the services. One of the interesting things is, the sales persons are considered as the very least providers of the information about the products and the services. We can say that the builders bear very less amount of patience to deal with the sales persons. One of the interesting thing that we found out is, around 86% of the builders use Word of mouth communication as the source of information. So we can say that word of mouth communication is one of the reliable sources of information and is used by majority of the builders for collecting the information about the product and the services. Customers spread the comments about the products to one another through word of mouth communication, so it is important to serve the good quality product to increase our sales.

Majority of the companies treat word of mouth communication as important. By word of mouth communication the companies seek information about the product durability, after sales service etc., which cant be seen while purchasing the products. Price and the design of the product are given less importance in the word of mouth communication.

Major percent of the word of mouth communication is received and communicated about the positive things of the products and the services, but at the same time the portion of the customers communicate about the negative things of the products also. Hence it is important to keep track on the both positive and the negative things of the product.

About 87% of the builders are aware about the company Bharat Heavy Electricals.Ltd. So we can say that the company has well
108

established its roots in the market. Among the customers who are aware about the company all are having the favorable opinion about the company. So it is easy for the company for promoting its new product in the market and also the company doesnt have to incur lot of expenditures on promoting its control equipments. 5.2 Inferences: - Very important of all is the marketing department function i.e it has to do good advertisement and build brand awareness in the market. - Job rotation, job enlargement, job enrichment needs to be done frequently in EDN which would motivate a employee to do better. - As BHEL faces tough competitions from private firms it must formulate better policies that attract customers. - In order to survive and to be a leader BHEL needs to come out of new products continuously and increase its product line. - BHEL also needs serious technology upgrading since in some production units, the machinery being used is as old as 1980's. - It needs young upgraded work force than an older force so it needs to replace them gradually as time permits. It needs also to eliminate the excess work force

109

CONCLUSION
Objective 1: To study about the market potential for the control equipments in BHEL-EDN Bangalore BHEL has entered a new phase of growth. Its quick progress was aided by the collaboration with international leaders in the field of power and control electronics. All the products have continued to be the undisputed leaders in the categories, which is extremely creditable in the changing environment. The current phase of innovation and business solutions has thrown up a number of challenges and opportunities for a changed approach to business itself, especially in the power sector. The organization has to explore new ways to tap the market for business and adopt strategies like lease financing, joint financing, joint bidding/ contortion, joint ventures deferred credit, financial packages, equity participation etc., appropriately BHEL-EDN has earned profits from the initial stage of its operations and it is confident of meeting all the challenges that lies ahead and aims at achieving the highest turnover.
A true corporate citizen of the world. Electronic division stands poised for greater conquests in many challenging fields, using state of the art technologies and keeping pace with the international standards.

Today BHEL is one of the most profiteering PSUs in the country. All the products have continued to be the undisputed leaders in the categories, which is extremely creditable in the changing environment. BHEL is more than just a company, a responsible member of the ecoconscious community, contributing towards the preservation of the environment. A true corporate citizen of the world. Electronic division stands
110

poised for greater conquests in many challenging fields, using state of the art technologies and keeping pace with the international standards. BHEL-EDN has earned profits from the initial stage of its operations and it is confident of meeting all the challenges that lies ahead and aims at achieving the highest turnover.

MY LEARNING
It was great to work in BHEL which is one among the NAVARATNAS. In my 7weeks of learning of BHEL-EDN I was exposed to various departments of BHEL this project work helped Mie to know how actually an organization functions. I could relate my class room learnings to actual working of an organization. While undergoing the project at BHEL EDN I came to know how actual marketing is done for B2B products.
Marketing management and business research in BHEL EDN was blend of both class room sessions and practical exposure.

Through this internship, I got an opportunity to apply whatever knowledge I had about management in real corporate world. Usually internships will be restricted to only one department of the organization but I got not only to study all the departments but also to formulate strategies to improve overall organization by formulating Organization Development Interventions. The findings and inferences along with the details of research have been appreciated by the management. After the completion of this research work successfully, I am more confident to enter the most competitive corporate world where I hope to get the most challenging tasks which can be accomplished successfully using my skills and the organizational resources.

I learnt how to carry on the research activities for the formulation of strategic policies. I also learnt how to interact with the top level
111

executives and get the required information. I understood the importance marketing policies during this research activity. I was able to channelize all the knowledge acquired from different sources which taught me the usage of right thing at right time.

BIBLIOGRAPHY

PUBLICATIONS 1. BHEL manuals and publications. 2. Company magazines 3. Marketing Research ISBN 0071009930, Mc Graw Hill, 4th editions Author: Thomas C. Kinnear James R. Taylor 4. Marketing Management, ISBN 4thEdition, Author: Philip Kotler

112

WEBSITES 1. 2. 3.
4. 5. 6. 7.

www.bhel.com www.abb.com www.siemens.com www.google.com www.honeywell.com www.ecil.com www.metroautomation.com

QUESTONNAIRE

1) Have you purchased electric control equipments from BHEL? Yes No

2) You mostly rely on Single supplier Multi supplier

3) What major criteria do you use while buying control equipments The company brand name The quality The price

113

After sales service 4) What are your sources of collecting information about a product or service and its suppliers? Industry websites Word of mouth communication Consultants Sales Persons

5) Do you rely on word of mouth communication as a source of communication? Yes No

6) How important is WOM as a source of information? Very Important Important Neither/ nor Less important Not important

7) What percentage of time do you receive positive vs negative WOM? 30vs20 40vs30 20vs30 50vs40

8) What percentage do you communicate positive vs. negative? 10 vs. 20

114

20 vs. 10 30 vs. 20 30 vs. 40

9) Are you aware about Bharat Heavy Electricals Ltd.? Yes No

10) If yes what is your Opinion? Favorable Unfavorable Dont Know

115