PART-I

Introduction of B.H.E.L.:
BHEL or Bharat Heavy Electrical Limited is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. BHEL is one of the nine large Public Sector Undertakings known as navratnas or nine jewels. BHEL offers over 180 products and provides systems and services to meet the needs of core sectors like: power, transmission, industry, transportation, oil & gas, non-conventional energy sources and telecommunication.

Background:
Bharat Heavy Electrical Limited (BHEL) was set up in 1959 by the Government of India with the objective of creating indigenous manufacturing base for power plant equipments. Today, BHEL is the 12th largest company in the world in Power Plant Equipments manufacturing and the largest in India. The company has the ability to manufacture the entire range of power plant equipment and has one of the largest capacities of power plant equipment in the world. This enables the company to bid for large power projects. BHEL's cost-competitiveness vis-a-vis international competition in the power sector can be attributed to the factors like fully depreciated manufacturing facilities, lower labor and freight costs and economies of scale. Apart from being the lowest cost producer, BHEL also possesses the infrastructure that can supply power equipment for 4,000 MW of generating capacity annually.

Indigenization of the technology:

BHEL has indigenized most components and raw materials for power plants. Technical collaborations with several foreign companies have helped BHEL to adapt and assimilate imported technology to Indian conditions such as modification of boiler design to function optimally with Indian coal which has higher ash content. This is evident in the 86% success rate in bagging contracts in the international competitive bidding route. The company operates through 14 plants and 9 service centers. The major inhibiting factor for the growth of BHEL in the past has been lack of access to large fund base. The company is a candidate for disinvestment as the Central Government has decided to offload atleast 20% of its stake towards a strategic partner. This could help the company in the long run as the strategic partnership could bring in benefits like access to new technologies and capital.

Business Overview:
The business of BHEL is focused essentially on two broad segments, viz. Power Equipment, accounting for 60% of revenue, and, Industrial Equipment, accounting for the rest. Earlier the company was focused on the Power Equipment only. However, in order to reduce the dependence on power utility providers (SEBs), the company widened its focus area and hence product base. BHEL is now manufacturing equipments for industrial users, railways and

several other industries including telecommunications, metallurgical and process industry. BHEL's forte is coal-based Thermal Power Plants. BHEL's products, services and projects are exported to over 52 countries including United States and New Zealand. BHEL's market share in the coal-based thermal power plant segment is 75%, 65% in nuclear-based thermal plants, 50% in hydro-based thermal power plants. However, in the emerging gas-based combined cycle thermal plants, which have short gestation period, the company has a relatively low market share of just 18%. BHEL also provides services of erecting plants and executing projects on a turnkey basis. The cumulative capacity of power generating equipment supplied by BHEL outside India is over 3000 MW.

Business Mix:

Industry Segment Break-up :

The reform process in the Power sector, though initiated quite sometime back, is yet to gather momentum. The delay could lead to low growth in downstream industries like Power Plant manufacturers. Investments in infrastructure projects have not picked up as expected. This coupled with excess capacity in many basic industries, such as the capital goods sector, have led to slowdown in the growth at less than half the growth rate

experienced in the previous year. The ongoing changes in the global market for Power Generation Equipment have had a direct impact on domestic companies. Significant industry consolidation across the continents was primarily driven by de-regulation and opening up of many formerly protected markets. The industry was also affected by over capacity, heavy development cost of maintaining competitive position in advanced technologies, WTO requirements and lowering of tariff barriers. The continuing integration of the Indian economy with the global economy has made the environment highly competitive. BHEL was focused on reducing its dependency on the power sector because of the dominance posed by the SEBs. Hence it forayed into the field of Industry operations as well. It also took up a lot of risk containment measures such as entry into export markets, new market segments. The company has always been very conservative in the sales credit front as well. Recently it has announced plans to set up a 100% subsidiary in the field of Information Technology as well.

Shareholder Pattern:

BHEL has a capital base of Rs. 244.8 Crore and its current market capitalization is Rs. 3451.12 Crore. The company has 24.48 Crore shares outstanding. The free float available in the market for trading is only 6% of the total shares outstanding. Indian government holds a high amount of stakes in the company which is going to be disinvested in the near future.

INSULATOR PLANT - BHEL, JAGDISHPUR :

The insulator plant BHEL, Jagdishpur was set up in 1984, catering to electric power transmission business by way of manufacture and supply of disc insulator. Presently the plant is geared to produce 19 thousand tons of disc insulators annually and one thousand tons of Ly. of insulators. Over the year lot of technological innovation have taken place in the plant which has streamlining of manufacturing processes & has taken it in to the level of best industry. New type of disc insulator has also been introduced periodically and today it manufactures disc insulators up to 160-Kn.Stength ranging from normal to anti fog type. The

plant has till date executed many prestigious export contracts and has supplied disc insulators to Turkey, Malaysia, Trinidad & Tobago, Ghana, and Nigeria etc.

Since 1994, low tension types of insulators have also been introduced in the product range in addition it supplies to domestic market quantities have also been exported to countries like UK & South Africa. In present area of liberalization the company has not only gone for diversification but also has taken concrete measures for organizational and product improvement by ISO-9001 certification and adopting iqm approach.

In the present world an attempt has been made to system erotically analyze the export market requirements of insulators and identify the product forming bulk exports. The world market scenario of insulators imports have been presented with a view to provide strategic global market information for insulator exports. On 3rd march 1984 the prime minister of India Smt. Indira Gandhi inaugurated BHELs 11th manufacturing unit in Jagdishpur Sultanpur district,78 kilometers away from Lucknow, on the Lucknow Sultanpur highway.

BHELS more than 40 years experience in the ceramic field ,blended with that of NGK, Japans world leader in insulator technology, set the pace for been provided with the most modern and sophisticated facilities, and was commissioned in a record line of 18th months.

Insulator plant Jagdishpur has developed into one of the Indias disc insulator manufacturing centers with the most streamlined layout and modern technology.It6 has provisions to cope with latest advances in the ceramic field.

MAJOR CUSTOMER OF BHEL IP JAGDISHPUR:

Jagdishpur insulator plant has some important customer which are state electricity board, government organizations, public sector units and private customer and Indian railways.

STATE ELECTRICITY BOARDS

UPPCL MPSEB GEB

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 PSEB KSEB KPTCL TNEB MSEB

PUBLIC SECTOR UNITS

POWER GRID NTPC NHPC DVC NLC

GOVERNMENT ORGANISATIONS
Govt. of Tripura Govt. of J&K Govt. of Mijoram Govt. of Manipur

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 PRIVATE ORGANISATIONS
Jyoti Structures Ltd. JSPL (Jindal Steel Power Ltd) Associated Transrail Structures Ltd RPG Transmission Ltd. Tata Project Ramji Power Construction EMC (Electrical Manufacturing Company) KPTL (Kalputra Power Transmission Ltd.) Devang Electricals.

MAJOR RIVALS OF BHEL INSULATOR PLANT, JAGDISHPUR:

JAI SHREE INSULATORS, KOLKATA (BIRLA GROUP) WS INSULATORS, KOLKATA (WEST BENGAL) MODERN INSULATORS, CHENNAI

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 IEC, KOLKATA (WEST BENGAL) BATHINDA CERAMICS, PUNJAB HI-TECH, KHURJA (U.P.) POWER TECH, KHURJA (U.P.)

History of B.H.E.L.:

1. Company was set up at Bhopal in the name of M/s Heavy electrical(India) Ltd. in collaboration with AEI, UK. Subsequently, three More plants were set up at Hyderabad, Hardwar and Trichy. The Bhopal Unit was controlled

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by the company, the other three were under the Control of Bharat Hevey Electricals Ltd. The Company's object is to manufacture of heavy electrical equipments.

2. 1972:
In July the Operations of all the four plants were integrated.

1974:
In January Heavy electrical (India) Ltd was merged with BHEL. For the manufacture of a wide variety of products, the company has developed technological infrastructure, skills and quality to meet the stringent requirements of the power plants, transportation, petro chemicals, oil etc. BHEL has entered into collaboration which are technical in nature.Under these agreements, the collaborators have transferred, furnished the information, documentation, including know-how relating to design, engineering, manufacturing assembly etc.

1982:
BHEL also entered into power equipments, to reduce its dependence on the power sector. So, it developed the capability to produce a variety of electrical, electronic and mechanical equipments for all sectors,

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including transmission, transportation, oil and gas and other allied industries.

1991:
On 24th December converted into a public Limited company. As per resolution passed on 23rd Dec. 1991, existing shares of Rs.1000 each was subdivided into equity shares of Rs.10 each.2447,60,000 No. of equity shares of Rs.10 each allotted for consideration other than cash.

1992:
Between January to February the company disinvested 489,52,000 equity shares of Rs.10 each. During the year, 10 thermal sets, 2 gas sets and 11 hydro sets were commissioned. During the year, first commercial HUDC transmission line in the country between Rihand & Delhi rated for transmitting power at 500 KV at 1500 MW was respectively completed. Also, the company

completed prestigious contracts in Malta and Cyprus through supply and erection of 2 sets of 60 MW thermal sets each.

1994:

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 The company commissioned two sets of 250 MW at Maharashtra and one 500 MW once-throug tower type boiler at Orissa. During the year the company established Asia's largest fuel evaluation test facility at Tiruchi The Company commissioned ten industrial power plants resulting in power generating capacity addition of 293 KW. The Company undertook the development of photovoltaic power Systems for grid assisted operation, solar power refreigerator useful for vaccine and medical storage and demonstration of 2X5 KW phosphoric acid fuel cell module at a Chlor Alkali plant.

1995:
The country's premier state owned undertaking, BHEL, has Commissioned India's first 250 mw capacity thermal generating unit at Dahanu power station in Maharashtra. BHEL won this world bank contract against competition from multinationals.

1996:
This year company handed over 100th Electric Locomotive to Indian Railway. And 250th Hydro set installed at Dhupdal-1, successfully syncronised and handed over the 30 MW Fr.6 Gas turbine at Wadi Al Jizzi, Oman.

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 The company signed an agreement with Indian Railways for building and leasing 53 nos. AC/DC locos of 5,000/4,600 HP.

During the year company undertook Indira Sugar Project of Narmada Valley Development Authority in M.P., Kurichu Project from NHPC in Bhutaan, Ghanvi project and Gumma Project both from HPSEB, H.P., 8*16 MW Diesel Generating sets for Kerala State Electricity Boards DG Power plant at Kozhikode, 4 numbers 125 TPM HRSGs, 18 MW Steam Turbine Generator for Mysore Paper Mills, 9 numbers 400KV 102 MWA single phase generator transformers for 1500 MW Nathpa Jhakri HEP,6 nos.3950 KW 18 pole synchronous motors and 6 nos. 3950 KW 6 pole squirrel cage induction motors for ONGC's Santhal Project.

1997:
In May a joint venture company named Bhe-Ge Gas Turbine Services private Ltd. was incorporated with General Electric to carryout after sales repair and servicing of GE designed heavy duty gas turbines installed in India and certain other countries abroad.

Another joint venture company with Siemens AG was incorporated under the name `Powerplant Performance Improvement Private Ltd.' to carry out plant performance Improvement to old fossil fuel power plants in India and abroad.

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 The public sector Bharat Heavy Electricals Ltd (BHEL) has won the national best exporter award for 1995-96, instituted by the Engineering Export Promotion Council, of the eighth consecutive year, from Madurai. Bharat Heavy Electricals Ltd has ruled a joint venture with Czech republic-based Skoda for manufacturing electric trolley buses, but is ready for import of technology. The company has successfully commissioned a frame-6 gas turbine at Wadi Al Jizzi, Sultanate of Oman, for a power station and has supplied a prototype of a 14-MW marine turbine to the Navy at Machinery Test Centre, Visakhapatnam. Bharat Heavy Electricals Ltd (BHEL), the engineering and power equipment navaratna, has joined hands with two global majors, General Electric (GE) of the US and Siemens AG of Germany, to set up two separate joint venture companies in India on a 50:50 equity partnership basis. The joint venture between BHEL and GE, set up with an authorized capital of Rs.7 crores, has been named BHEL-GE Gas Turbine Services Private Ltd. With Siemens AG, BHEL's technical tie-up is for manufacture of steam turbines and generators.

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 The Company undertook supply of 36 MW STG for RIL Sancoale-Goa 2X4 MW & 2 & 4.5 MW Generators for Hemavati & Harangi HEP in Karnataka etc.

2001:
Bharat Heavy Electricals Ltd. has bagged the prestigious Golden acock national quality award for the second consecutive year for achieving excellence in quality conforming to global standards. India's state-run Bharat Heavy Electricals won an order to set up a fifth 250 megawatt (mw) unit at Suratgarh thermal power station in the western state of Rajasthan. BHEL-GE Gas Turbin Services Ltd. the joint venture company Promoted by BHEL and GE, has commissioned its gas turbine component refurbishment centre in the city. The R&D division of Bharat Heavy Electricals Ltd. has developed a 50-KW phosphoric acid fuel cell power pack as a joint venture of BHEL, the Ministry of Non-Conventional Energy Sources and Shree Rayalaseema Alkalies and Allied Chemicals Ltd. The Company has bagged the `Golden Trading House' status for attaining excellence in global export operations. The Company has commissioned first of the four hydro-power Generating units at Kurichu Hydro Electric Project in Bhutan.

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 Bharat Heavy Electricals Ltd (BHEL) is set to commission the first 500 MW unit of National Thermal Power Corporation's (NTPC) Simhadri power project three months ahead of schedule in March, 2002. Bharat Heavy Electricals has been awarded the electro-mechanical equipment supply order at a cost of Rs 540 crore for the Maheshwar hydel project in Madhya Pradesh.

2002:
Awarded the top exporters award by Engineering Export Promotion Council for the year 1999-2000. BHEL and PFC tie up for joint bids of projects Ties up with US-based Metso Automation Max Control Systems Inc to establish a diagnostic and monitoring center to identify faults in power plants with maxDNA control systems. Receives Chennai Petroleum Corporation Ltd (CPCL) contract worth Rs 174 crore for a 40 mw gas based co-generation power plant for its refinery project at Chennai. BHEL in association with IIT-Madras launches IT school in Tiruchi Strikes Rs 51cr order to provide transformers to the Tala

HydroElectric Power Project in Bhutan

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 Bags an export order worth Rs 50 crore in Kazaksthan bags order from Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) for 195 mw at Kota tps and 75 mw Ramgarh extension project commences research on IGCC technology. BHEL unit Power Sector Northerrn Region bags OHSAS-18001& ISO14001 certification. Signs MoU with ONGC for providing, upgrading and refurbishment of oil-field equipments to its onshore and offshore applications Bags generator order from Sirupur Paper Mills Ltd. (SPML) gets Rs 267-cr Oman order Signs a technical collaboration agreement with Turbo Luftechnik GmbH (TLT) of Germany to acquire technology to design and manufacture high-efficiency fans used in 660 MW super-critical power plants BHEL Tiruchi unit gets best employer-employee award. BHEL launches Vendor information system BHEL clinches ONGC order worth Rs 230 crore BHEL gets Rs 63 cr contract from NTPC Gets Rs 35-cr grid substation project from Rajasthan Electricity Board Ties up with Shree Industries for solar water heaters Launches 4th solar power plant in Lakshadweep

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 Power generating sets built by BHEL get the award for excellent performance from Union Government Electronics Division secures an export contract for the supply of advanced automation systems for Indo-Bharat Rayons in Indonesia BHEL's Electroporcelains Division receives the OHSAS-18001

certification for its occupational health and safety management system. Launches its first-ever Vessel Traffic Management System (VTMS) at the New Mangalore port BHEL gets Rs 41 cr order from Nuclear Power Corporation (NPC) Announces completion of 1000 mw Simhadri thermal power station Commissions a 50-kilo watt peak solar photovoltaic grid interactive power plant at Neil Island of Andaman & Nicobar Islands Gets Rs 80 cr contract from Hindalco Launches web pages for development and expansion of vendor base for components required for energy meters Five employees of BHEL Tiruchi have been conferred with the Viswakarma Rastriya Puraskar for their suggestion, which contributed to productivity and efficiency at the plant Bags Rs 1,425 cr order to set up two 210 MW sets in UP

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 Receives Rs 25-crore contract from PowerGrid Corporation of India Ltd (PGCIL) to commission a 400-kv grid sub-station at Baripada in Orissa Bags Rs 15.5 crore order for a steam turbine generator (STG) for a sugar co-generation power plant in Karnataka Receives order from Uttaranchal Power Corporation to set up new grid station project

Receives award from Confederation of Indian Industry (CII) becoming the first PSU to win this honour Gets order from Sterlite Group for steam generator Bags order from Uttaranchal Jal Vidyut Nigam Ltd. to set up the 304 MW Maneri Bhali Hydro Electric project Stage-II in the state Bhel obtains order from NHPC to set up 800 mw Parbati hydro electric project

2005:
Delists equity shares from the Madras Stock Exchange Ltd (MSE) w.e.f. January 19, 2005. Delists equity shares of the Company voluntary from The Stock Exchange, Ahmedabad (ASE) with effect from January 28, 2005.

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 Bharat Heavy Electricals Ltd (BHEL) and Rural Electrification Corporation (REC) have entered into a memorandum of understanding to work jointly in offering solutions along with financial packages in the power generation sector, covering both new power generation projects and renovation and modernisation of existing power plants. BHEL, TCS jointly working on marketing initiative 'Power Pack' BHEL has bagged its largest-ever commercial order of Rs 90.58 crore for the supply of automated storage and retrieval system (ASRS) against stiff national and international competition. Appoints Dr V. Gopalakrishnan as Chief of the Bharat Heavy Electrical Ltd at Tiruchi Bharat Heavy Electricals (BHEL) teams up with National Thermal Power Corporation (NTPC) for promoting a 100 mw IGCC (integrated gassification and combined cycle) power project. Bhel gets two export orders from Oman Bhel's Trichy, Bangalore plants win five National Safety Awards BHEL opens 2nd unit at NTPC's Rihand station Bhel signs technology transfer agreement with Alstom Bharat Heavy Electricals Ltd has entered into a technology transfer agreement with French power major Alstom

2006

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 BHEL inks agreement with IIT Madras for new courses Bechtel signs Dabhol agreement with BHEL Bharat Heavy Electricals Tiruchirapalli on May 31 signed a MoU with national Institute of Technology, Tiruchirapalli to recognize and strengthen institute-industry interaction. BHEL targets .7 bn contract in B'desh BHEL has got a Rs 165 crore order from IOC for establishing a power plant at the oil major's Haldia refinery in West Bengal.

2007
BHEL and French company Alstom will together produce 1,50,000MW of power over the next ten years. Bharat Heavy Electricals Ltd (BHEL) has appointed Shri. N Gokulram as Part-time Official Director on the Board of the Company w.e.f. January 25, 2007. Bharat Heavy Electricals Ltd (BHEL) has informed that Shri. Vineet Nayyar, Part-time, Non-Official (Independent) Director, has ceased to be on the Board of the Company with effect from February 28, 2007 on account of expiry of tenure. BHEL has raised its research & development spend to Rs 238 crore during fiscal 2006-07, up from Rs 152 crore last year.

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 Bharat Heavy Electricals Limited (BHEL) has won orders for the supply and installation of the main plant package at the upcoming Jhajjar Super Thermal Power Project in Haryana. Valued at over Rs 2,900 Crore, the orders have been placed by Aravali Power Company Private Limited (APCPL), a joint venture company of NTPC, IPGPL and HPGCL. Bharat Heavy Electricals Ltd (BHEL) and NTPC Ltd have singed a Memorandum of Understanding (MOU) to form a Joint Venture Company with the propose to work jointly to complement their respective strength and to carry out engineering procurement and construction (EPC) activities in the power sector. BHEL, NTPC ink MoU for power projects. Bharat Heavy Electricals Limited (BHEL) has won a turnkey order for setting up a captive power plant at a steel plant in West Bengal.

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Organizations Hierarchy:
Chairman & managing director

Executive director (unit head), regional head ( powerSector)

General manager ( either functional or product head)

Additional general manager ( product if gm is Functional & vice versa)

Sr. Dy general manager

Dy general manager

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Sr. Manager

Manager

Sr. Engineer

Engineer

Supervisor Worker

VISION, MISSION & VALUES OF BHEL AT A GLANCE

VISION A world class engineering enterprise committed to enhancing stakeholders value.

MISSION

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To be an Indian multinational engineering enterprise providing total business solutions through quality products, systems and services in the field of energy, industry, transportation, infrastructure and other potential area.

VALUES Zeal to excel and zest for change. Integrity and fairness in all matters. Respect for dignity and potential of individuals. Strict adherence commitment. Ensure speed of response. Foster learning, creativity and teamwork. Loyalty and pride in the company.

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PERFORMANCE OF BHEL JAGDISHPUR FOR THE FINANCIAL YEAR 2005-06

Total Turnover Value Added Profit Before Tax Net Current Assets (W.C.) Rs. 7846 lacs Rs. 2864 lacs Rs. 165 lacs Rs. 4778 lacs
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Net Block Capital Employed

Rs. 887 lacs Rs. 5665 lacs

Comparative Performance in 2007-08 & 2008-09:

Achieves all time high orders inflow ,Turnover, Export
2007-08 2008-09 (Prov.)
27505 4530

% change

% change(excluding provision for wage revision)

Turnover (Rs.Crore) Profit before

21401 4430

29% 2% 21%

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tax (Rs.Crore) Net Profit (Rs. Crore) Order inflow (Rs. Crore) Earning per share(Rs.) Value Added per employee (Rs. Lakh) Capital investment (Rs. Crore) 726 1106 52% 2859 50270 58.40 19.07 3039 59687 62.10 21.24 6% 19% 6% 11% 25%

Turnover:
Increase turnover 29% in 2008-09.

30000 ammount (in crore) 25000 20000 15000 10000 5000 0 year
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2007-08 2008-09

Profit before Tax:

Profit before tax increased 2%in 2008-09.

4550 ammount (in crore) 4500 4450 4400 4350

Net Profit:
Increased net profit 6% during 2008-09. 3100 ammount (in crore) 3050 3000 2950 2900 2850 2800 2750 year
2007-08 2008-09

2007-08 2008-09

year

Order inflow:

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Increased order flow 19%during 2008-09.

65000 ammount (in crore) 60000 55000 50000 45000

Earning per share:
Increased earning per share 6% during 2008-09.

2007-08 2008-09

year

63 62 61 60 59 58 57 56

ammount (in Rs)

2007-08 2008-09

year

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Value Added per employee:

Increased value added per employee11% during 2008-09.

ammount (in lack)

22 21 20 19 18 17 year
2007-08 2008-09

Capital investment:
Increased capital investment 52% during 2008-09.

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1200 1000 800 600 400 200 0

ammount (in crore)

2007-08 2008-09

year

Supercritical technology business:

Maiden orders for 800 MW supercritical boilers for Krishnapatnam and 660 MW supercritical turbine generator sets for Barh-II, NTPCJV formed for 2x800 MW supercritical thermal power project with TNEB JV/MoI signed with

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KPCL & GSECL for 5 nos. 660/800 MW supercritical thermal power plants in Karnataka & Gujarat.

Nuclear field:
First-ever order for steam generators for new rating 700 MWe Nuclear sets moving forward to capitalise on emerging business opportunities in the Nuclear sector Mo U signed with NPCIL for formation of JV for conventional island of Nuclear Power Projects. Technology tie-ups being explored for 700/1000/1600 MW TG sets through this JV Company MoU signed with GE-Hitachi for cooperation in Nuclear island equipments for Power plants to be set up by NPCIL

Strategic Alliances:
Partnerships forged with NTPC, KEL, HEC and PTC for leveraging equipment sales as well as strengthening the supply chain by developing additional sources for critical inputs .

Inorganic Growth:
Acquisition of BHPV as 100% subsidiary. Opportunities being pursued in the areas of Transmission, Transportation, Nuclear and Renewable energy signed with GE for Diesel Electric locomotives and manufacture of propulsion systems for these locomotives.

Capacity Expansion:
Manufacturing capacity expansion from 10,000 MW to 15,000 MW p.a. proceeding apace and further augmentation to 20,000 MW p.a. planned by 2011-12

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Foundation stone for a new plant in Tirumayam in Pudukottai district of Tamil Nadu laid for manufacture of boiler components

Customer Confidence:
Confidence reposed by Private Sector customers; orders worth Rs.13,317 Crore placed by Jindal Power, Jaiprakash Power Ventures, GVK Power,

Hindalco, HPCL Mittal Energy Ltd., Adani Power, Tatas, ACC, among others Highest value order of Rs.2,010 Crore received in Industry Sector business segment from Hindalco for 6x150 MW BTG package for Mahan (MP)First ever order for generator transformers for 800 MW sets and also the largest rating to be installed in India for Mundra UMPP, reinforcing technological and market leadership in transformers

Green Initiatives:
BHEL Space Grade Solar Panels supplied for first satellite export project of ISRO for EADSAstrium of Europe. The satellite was successfully launched by the European Ariane-5 launch vehicle from French Guyana MoU signed with BEL for formation of a JV to address Solar Photovoltaic business and for setting up manufacturing facility for silicon wafers, solar cells and modules.

Global Forays:
Physical export orders of Rs.3,265 Crore up 41% from 22 countries in 5 continents Forays in new markets Senegal, Rwanda and new market segments in Syria, Tajikistan, Japan and Nigeria Long term business tie-up Six-year Rate Contract for 126 MW rated Gas Turbine Generating Sets from Oman one of its

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kind in the world MoU signed with TGR, Hungary for exploring opportunities for conventional boilers and R&M of boilers in European and CIS countries.

Technology Edge:
BHEL becomes sole supplier in the world for 420 kN/320 kN porcelain insulators for +800kV HVDC transmission lines, following successful testing at STRI, Sweden; first consignment for PGCIL flagged-off R&D spend at Rs.650 Crore - 40% higher than the previous year; 29% growth in BHELs IPR capital with 202 patents/copyrights filed taking the total number to 857 An understanding has been reached with Sheffield Forgemasters International Ltd., UK for technology transfer in the area of Forgings required for Advanced class Gas Turbines,Hydro Turbines and Thermal & Nuclear sets up to 1,000 MW rating MoU for TCA signed with Nuovo Pignone S.p.A Italy for Centrifugal Compressors.

Equipment Performance:
All 6 thermal power stations awarded with Govt. of Indias Meritorious Productivity Awards are equipped with BHEL equipment, reinforcing the reliability and quality of BHELs equipment BHEL built sets contributed 73% of the power generated in the country during the year All-time high Operating Availability of BHEL thermal sets; PLF higher than the national average.

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Other Initiatives:
HR initiatives - Manpower ramped up by 4,500 persons in 2008-09 as a capability building measureOn-line project monitoring system introduced implemented in Dadri and Mejia In a bid to maintain complete transparency in its major contracts and procurement, BHEL adopts Integrity Pact and signs MoU with Transparency International India (TII).

Accolades:
For the third year running, only PSU in Forbes Asia Fabulous 50 list of the best of Asia-Pacific's publicly-traded companies with revenues or market capitalisation of at least US$ 5 billion BHEL and its units were awarded 4 ICWAI Awards for Excellence in Cost Management for 2008 the highest among public and private sector companies.

FINANCIAL PERFORMANCE:
During 2008-09, BHEL recorded the highest-ever turnover of Rs.27,505 Crore, up by 29%, compared to Rs.21,401 Crore of the previous year. The company's Net Profit (PAT) went up by 6% at Rs.3,039 Crore against Rs.2,859 Crore in the previous fiscal. Profit Before Tax (PBT) also rose by 2% at Rs.4,530 Crore, during the year. With this, BHEL maintained its track record of earning profits uninterruptedly since 1971-72.The growth in PBT and PAT after neutralising the impact of wage revision provision is 21% and 25%, respectively. An interim equity dividend of 90% on the enhanced post-bonus equity capital has already been paid for fiscal 2008-09.

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Earnings Per Share (EPS), during the year, stood at Rs.62.1 an increase of 6% over 2007-08. Economic Value Added (EVA) rose 8% at Rs.1,955 Crore over that of Rs.1,810 Crore in2007-08. Net Asset Value (NAV) per share increased to Rs.263.3, from Rs.220.1 in the previous year, reflecting the intrinsic strength of the company, while Value Added per employee went up to Rs.21.24 lakh from Rs.19.07 lakh in 2007-08. Total export turnover (Physical + Deemed) was also at an all-time high of Rs.8,406 Crore during the year, accounting for over 31% of the companys turnover during the year. This performance is significant in the backdrop of the subdued economic environment in the country and demand contraction in the industrial segment, adversely affecting the entire manufacturing sector. During the year, provisioning of Rs.1,728 Crore has been done for the impending wage revision (due w.e.f. 1.1.2007) which has impacted the net profit of the company. The company withstood all these pressures because of its inherent strength and strong fundamentals.

ORDERS INFLOW:
Operating in an intensely competitive environment, BHEL obtained a record order inflow of Rs.59,687 Crore, during the year. Fiscal 2008-09 has ended with a cumulative order book for execution in 2009-10 and beyond, of Rs.1,17,000 Crore the highest-ever in physical as well as financial terms. In the Power Sector business segment, BHEL secured orders worth Rs.44,407 Crore, for 17,020 MW of power plants. Major highlights of the year included the first-ever orders for 800 MW supercritical boilers, 660 MW supercritical turbine generator sets and largest number of orders for 8 sets of 600

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MW. Significantly, 100% share of the R&Mmarket for thermal sets was retained for the third successive year with orders of Rs.2,770 Crore including the supply of spares and services. In the Industry Sector business segment also, BHEL secured record orders worth Rs.10,254 Crore - a growth of 30% over the previous year, in Captive Power, Transportation, Power Transmission, Oil & Gas and other industrial segments. Transmission Projects group, after its consolidation during 2007-08, has turned around and achieved highest-ever revenue and profits. Significant orders received in the Power Sector include: Maiden order for 2x800 MW Supercritical SG Package for APPDCL, Krishnapatnam First order for 2x660 MW Supercritical TG Package for NTPC, Barh Stage-II. First-ever order for 4 nos. steam generators for new rating 700 MWe Nuclear sets from NPCIL for KAPP. PPCL Pragati-III CCPP (1371 MW) and OTPC Pallantana CCPP (726.6 MW) on EPC basis with Advanced class 9FA Gas Turbines. Highest value single order for 4x600 MW OP Jindal STPP, Raigarh, besides orders for 4 Nos. 600 MW sets from MPPGCL; TNEB and APGENCO. 500 MW sets - 13 Nos. from NTPC; MSPGCL; NTPL; CSEB and DVC 250/270 MW sets - 7 Nos. from GVK Power Ltd.; Bina Power Supply Company Ltd.;RRVUNL and MSPGCL. Highest-value hydro order for Rampur HEP (6x68.7 MW) of SJVNL. In International Business, bucking the global recessionary trend, BHEL achieved a

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physical export order inflow of Rs.3,265 Crore during the year - an increase of 41% over that of the previous fiscal. The year marked significant steps towards globalisation with successful forays in new markets and new product areas, apart from firmly establishing the companys presence in existing export markets and areas. Significant export orders received included: Largest ever export order 2x200 MW Steam Turbine-based Tishreen Thermal Power Plant secured from PEEGT, Syria on EPC basis. This is the first power plant order from syria and first-ever EPC export order for a 200 MW unit rating coal-based thermal power plant Price Agreement (Rate Contract) for 126 MW unit rating Gas Turbine Generator package secured from Petroleum Development Oman, initially valid for six years with a provision of extension by another three years. Two consecutive export orders for Power Generating equipment from International Energy Resources, UAE comprising 4 nos. of 42 MW unit rating Gas turbine Generator sets. This is the first order for Gas Turbine units to be used for bargemounted application: First ever overseas order for an EPC Hydro Power Plant secured from Ministry of Infrastructure, Rwanda for setting up 28 MW Nyaborango Power Plant, marking BHELs entry into Rwanda.

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 First export order for 125 MW unit rating coal-fired BTG package from an IPP to be set up in Senegal, expanding BHELs global footprints with this entry in Senegal . Maiden export order for Hydro-generator from Tajikistan for supply of 7 MW Hydrogenerator. Another export order for Steam Turbines & Boilers secured from Indonesia 3x18 MW BTG package with CFBC Boilers from PT Kaltima Prima Coal (KPC), Indonesia. 18th consecutive order from PPC Greece, an unparalleled achievement. With this order for 5 nos. 100 MVA Power Transformers, BHEL has now secured orders for over 3,000 MVA transformers from Greece since 1995. Other notable export orders include; Boiler Feed Pumps from Libya; Valves & Wellheads from Oman; Transformers from Myanmar; Motors from Nigeria; Hydraulic couplings from New Caledonia and Solar Cells/ Modules from Sweden, Japan and Uganda. Continued focus on After Sales Services led to orders for Spares & Services from Oman, Saudi Arabia, Indonesia, New Zealand, USA, Cyprus, Sri Lanka, UAE, Nepal,Sudan and Libya Significant orders received in the Industry Sector include: Highest-value order ever received from Hindalco for 6x150 MW BTG package for Mahan (MP).

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 Highest-value order received in the refinery segment from HMEL (JV of HPCL & Mittal Energy Ltd.) for 153 MW Combined cycle CPP on LSTK basis. Orders for highest-rating slow-speed pressurised synchronous Motors also won for the same project. First order for 2x150 MW BTG package from OPG Power Gujarat Pvt. Ltd. EPC order for 68 MW Cogeneration Captive Power Plant Package from MRPL STG sets from various process industries viz. Meghalaya Power, Century Pulp and Paper, Lokmangal Agro Industries, Lokmangal Mauli Industries, Krishnaveni Sugars, Siruguppa Sugars & Chemicals Ltd. and ACC Ltd., Chanda. BHELs leadership in transformer business reaffirmed with bulk order for 40 Transformers from Coastal Gujarat Power Ltd. for Mundra UMPP, involving countrys highest-rating Generator Transformers (930 MVA, 400 KV, 3 phase banks). BHEL will also supply Busducts and largest vertical Motors for CWP application for the same project. Maiden order for Generator Transformers for 660 MW sets and highest-rating BFP motors from NTPC for Barh Stage-II followed by order for Generator Transformers for Tirora Project of Adani Power (3x660 MW). 26 nos. 400 KV Shunt Reactors from PGCIL - largest shunt reactor order ever placed in India Upgradation & Refurbishment of 12 onshore drilling rigs and upgradation of existing advanced instrumentation system for 53 onshore rigs from ONGC.

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 Highest-ever orders for Compressors from HMEL-Bhatinda, HPCL-Mumbai, BRPLBongaigaon & MRPL-Mangalore; Turbo Blower Package from SAIL, Rourkela Steel Plant. All-time high orders for Well Heads and X-mas trees from PSUs - ONGC, OIL & private companies Developmental order for 765 KV Transformer, Reactor, CT, CVT & CB from PGCIL .Traction Electrics for Kolkata Metro, after nearly two decades, from ICF Chennai. First-ever order in Defence business for supply of ACS/IPMS (Auxiliary Control Systems-Integrated Platform Management System) from Mazagon Dock Ltd. PV Modules of various ratings from BEL, Bangalore; Alps Environmental Technologies, CREDA, Chhattisgarh and other customers.

PROJECTS EXECUTED:
BHEL synchronized 4,182 MW of power plant equipment during the year comprising Utility &Captive sets. Utility sets totaling to 5,795 MW were put under Commercial Operation.The installed capacity of BHEL supplied Utility sets went up to 87,646 MW and BHELs share stands at 64% in the country's total installed capacity of 1,38,175 MW.BHEL supplied 850 MW of power generating equipment during the year, to customers in several countries including Bangladesh,Iraq, Libya, UAE, Sudan,Indonesia, etc. In addition, three 230 kV substations werecommissioned in Bangladesh and Ethiopia, while 27 Transformers totalling to

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nearly 2,885 MVA were commissioned in Egypt, Bangladesh, Afghanistan and Ethiopia.

EQUIPMENT PERFORMANCE:
During the year, BHEL-built power generating sets generated 464 Billion Units of electricity which was 73% of the total power generation in the country. BHEL built thermal sets achieved an all-time high Operating Availability (OA) of 88.2%; Plant Load Factor (PLF) at 80.1% was 3.1% higher than the national average. BHEL make 200-500 MW thermal sets, which form the backbone of the country's thermal generating capacity, operated at an impressive PLF and OA of 84.3% and 91%, respectively. Notably, 77 sets achieved PLF of over 90% and 141 sets achieved OA higher than 90%. All the 6 power stations awarded with the Ministry of Powers Meritorious Productivity Awards for 2007-08 are equipped with generating equipment manufactured and supplied by BHEL, reaffirming the quality and reliability of BHELs equipment.

CUSTOMER FOCUS:
BHEL reinforced its commitment to providing prompt and efficient customer service aimed at facilitating uninterrupted power supply and keeping power plants in good running condition. During the year, BHEL overhauled 96 thermal utility/captive and 5 hydro sets.

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Major power projects synchronized include: 1x500 MW thermal set for Sipat STPS 2x250 MW thermal sets for Bhilai TPS 1x250 MW thermal set for Chandrapura TPS 1x250 MW thermal set for Raigarh TPS 1x250 MW thermal set for Lehra Mohabbat TPS 1x250 MW thermal set for Suratgarh TPS 1x250 MW thermal set for Trombay TPS 1x210 MW thermal set for Bakreswar TPS 1x210 MW thermal set for Amarkantak TPS 1x125 MW thermal set for Giral TPS 1x75 MW thermal set for Kutch Lignite TPS 1x125 MW hydro set for Ghatghar HEP 1x125 MW thermal set for JSL Duburi 1x120 MW STG set for Tisco 1x80 MW thermal set for Hindustan Zinc Ltd. 1x45 MW & 1x30 MW STG sets for Hooghly, Metcoke 1x48 MW STG set for Shri Ram Alkalies 1x45 MW STG set for Monnet Ispat Demonstrating the highest level of customer commitment to overcome the challenges of difficult logistics of Afghanistan, BHEL airlifted two transformers each weighing 90 Metric Tonnes along with other equipment for the substation.

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This is a rare occasion when such heavy engineering equipment has been airlifted from India. Responding to ONGCs request for repair of an imported Gear Box at Hazira, BHEL took up the job and successfully put it back in operation, saving enormous time and enabling the customer to restore operation of critical processing units in a short duration.

TECHNOLOGY DEVELOPMENT:
BHELs products and systems are technology intensive and R&D/technology Development is of strategic importance to the company. During the year, BHEL spent Rs.650 Crore on R&D efforts 40% higher than the previous year. This corresponds to 2.36% turnover of the company. A turnover of Rs.5,405 Crore was achieved through products and systems developed in-house, an increase of 81% over the previous year. BHEL also filed 202 patents and copyrights, enhancing the companys intellectual capital to 857 patents and copyrights filed, which are in productive use in the companys business. Some of the significant developments during the year include: As its contribution to the armed forces, BHEL has developed a compact 2.4 TPD RO-based desalination plant skid (water filtration system suitable for sea water) for Indian Navy submarines. Following successful testing in the presence of Indian Navy personnel, the skid was dispatched and received at Naval Dockyard, Vizag for field testing.

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 Following successful testing of in-house developed 320kN / 420kN HVDC Porcelain Insulators at STRI, Ludvika, Sweden, BHEL has become the sole manufacturer of such insulators in the world. Also, to augment its range of disc insulators for meeting customer requirements, has developed 800 kV Hollow Insulators for the first time in the country. These insulators will be used in 765 kV Ultra High Voltage AC transmission systems. Consistently offering tailor-made designs to suit customer needs, BHEL has developed a new design of a Steam Turbine in the 120-150 MW range. Apart from reduced manufacturing cycle time, the new Single Cylinder Reheat Turbine offers improved load efficiency with a compact design leading to reduced installation costs. Extending the range of exciters for meeting customer requirements, a more reliable Brushless Exciter with Permanent Magnet Generator has been designed, developed and manufactured for 250 MW Turbo Generators. The new exciter offers benefits like reduced manufacturing cycle time, better dynamic behavior and more efficient site operation. A Patent has already been granted for the development and usage can be extended for a wide range of sets (210-800 MW) in future. As part of its Endeavour to establish technology for the entire spectrum of products for super critical power plants, BHEL has designed and developed a Deaerator for 1,000 MW power plants. This in house development will not only address the emerging need for supercritical equipment but also

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result in substantial savings by eliminating the need for a technology tie-up with an international player. To address the demand and technology trend for compact, economical and more efficient 2-cylinder turbines, BHEL has developed a combined HP-IP module to cover the range of 500-650 MW TG Sets. The development of this module will enable BHEL to offer a technically more competitive design, enhancing its business potential in the output range of 500-650 MW with sub-critical parameters. Aimed at significantly reducing erection cycle time in hydro projects, BHEL has developed a new compact design of site welded stay ring for hydro turbines which gives multiple advantages like 45% weight reduction for medium/high head stay rings and permits accommodation of semi-umbrella bearing arrangement in the limited space in underground caverns. This concept can also be applied in large size projects. In a bid to enhance reliability of its boilers for the benefit of it customers, BHEL has established a supercritical test advanced research facility to conduct heat transfer studies at super critical pressure conditions. This facility is also capable of analyzing ultra supercritical boiler requirements being considered worldwide for economical power generation. The facility will cater to the technology requirement of supercritical boilers in India for the next two decades.

CAPACITY AUGMENTATION & ASSET MODERNISATION:

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In order to capitalize on the emerging opportunities in the countrys power capacity addition programme, it was decided to augment the manufacturing capacity for Power Plant Equipment from 10,000 MW per annum to 15,000 MW per annum. All Schemes for capacity enhancement to 15,000 MW per annum are proceeding apace. BHEL made a capital investment of Rs.1,106 Crore during 2008-09 towards augmentation of manufacturing capacity and facilities in manufacturing units and for construction equipment at power project sites, as against Rs.726 Crore invested during 2007-08, registering an increase in capital investment of 52%.Focussed attention was given on Rebuilding and Retrofitting of existing facilities to enhance their life, accuracy and productivity through an additional investment of over Rs.60 Crore. The foundation stone for a new plant in Tirumayam in Pudukottai district of Tamil Nadu laid for manufacture of boiler components.

HUMAN RESOURCE:
An Integrated Human Resource Management System has been introduced companywide. Consequently, the entire organization is now on a common platform with respect to master data of employees. This facilitates access to reports on a real time. In line with changing market requirements, the knowledge and skills of BHEL employees are continuously upgraded. Each employee on an average was exposed to developmental programmes for 16.77 man-day during the year. In addition, 989 customer personnel

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were trained at various units.Manpower is being ramped up in a commensurate and timely manner and around4,500 persons were recruited in 2008-09. Industrial Relations continued to remain cordial contributing to production and productivity. Thrust on a participative culture was reemphasized through the apex level bipartite forum, Joint Committee. A workshop on Tackling Business Challenges was organised to apprise Joint Committee Members about the challenges being faced by BHEL and the role of the employees in overcoming these challenges. The workshop focused on evolving strategies to meet the challenges and customer commitments.

CORPORATE SOCIAL RESPONSIBILITY:

As part of its Corporate Social Responsibility (CSR), during the year, BHEL undertook socio-economic and community development programmes to promote education, improvement of living conditions and hygiene in villages and communities located in the vicinity of its manufacturing plants and project sites spread across the country. BHEL has joined hands with DVC and Coal India to set up an ITI which will provide learning opportunities and fulfill the manpower needs of the power sector. Aimed at providing high quality technical education and to give a fillip to the economic and developmental needs of the region, the

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Kabiguru Industrial Training Centre is being set up at Bolpur near Shantiniketan in West Bengal.As part of social commitment, 4,139 Act Apprentices were trained in the company.

QUALITY:
16 units of BHEL are moving ahead in the CII Exim Award Scheme for business excellences per the globally recognized model of European Foundation for Quality Management (EFQM). Continuing its winning streak, BHELs units at Bhopal and Jhansi and its Power Sector Northern and Eastern Region construction divisions have won Commendations for Significant Achievements/Strong Commitment to TQM. BHELs Insulator Plant at Jagdishpur bagged the Certificate of Merit commendation as part of the R.K. Bajaj Quality Awards. Quality Circle teams from BHELs Trichy unit and Electro porcelains Division, Bangalore won the highest Gold Awards at the International Quality Circle Conference (ICQCC 2008) held at Dhaka, Bangladesh.

ACCOLADES:
Continuing its tradition of bagging prestigious national/international awards, the organization and its employees won several awards during the year. Notable among these included; For the third consecutive year, BHELs performance was recognized by the prestigious publication Forbes Asia, which featured BHEL in its fourth

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annual Fabulous 50 list of the best of Asia-Pacific's publicly-traded companies with revenues or market capitalization of at least US$ 5 billion, having highest long-term profitability and sales & earnings growth. Significantly, BHEL is the only Indian PSU to figure on the elite list, since the list was conceived.

Prime Ministers Shram Awards, Vishwakarma Rashtriya Awards and National Safety Awards.

BHEL and its units were awarded 4 ICWAI Awards for Excellence in Cost Managementfor 2008 the highest among both public and private sector companies.

BHEL won EEPC's Top Export Award for the eighteenth year in succession.

The company was awarded the 2nd position in the SCOPE Best Enterprise Award for initiatives taken to develop women employees.

BHELs Electro porcelains Division, Bangalore received the Green tech Environment Excellence Silver Award 2008.

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 BHEL was awarded the first DSIJ (Dalal Street Investment Journal) Most Investor Friendly PSU Award for 2009.

For commendable contribution and achievements over several decades of excellence in the industry, Mr. K. Ravi Kumar, CMD, BHEL, was conferred the ENERTIA

Excellence Award 2007-08 for Best Finance Professional.

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BHARAT HEAVY ELECTRICALS LIMITED AN OVERVIEW

Bharat heavy Electrical Limited. (BHEL), a company with majority share holding by the government of its kind in India and is among the 12 leading equipment manufacturers in the world. The company was set up in the year 1956 with a view to reach self-sufficiency in Power and Industrial products vital for the industrialization of India.

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BHEL is organized along three Business Sectors, viz, Power, Industry and International Operations. The main activities of Business Sector are marketing, Project Engineering, Erection, Commissioning and service after sales. The product Range of BHEL encompasses power generating equipment, electrical and thermos mechanical equipment for industrial applications, electrical traction equipment and urban transport systems.

The company has a workforce of 44,000 including technicians, skilled workers and about 9,000 qualified engineers. BHEL today has 13 manufacturing plants and host of service divisions and around 200 projects sites. BHEL major manufacturing divisions have already received accreditation to ISO 9001/9002 BHEL has enjoyed an impressive growth record since its inception and registered a turnover of approximately us$1.25 billion during the year 1992-1993. The product portfolio can be divided into three categories: LT Type insulators HT type insulators (Disc insulators) Ceralin New products (hollow insulators & bus support insulators)

L.T. Type Insulators:

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These are divided into various categories. They are I).Pin type (5/10 KN with creep age distance of 230/280/320mm) ii) Guy/Stay/Strain type (53/89/110 KN with creep age distance of 63/70/75 mm iii) Post type

Disc type insulators:

According to codes they are divided into: Code Strength 01 02 03 06 08 11 14 (in KN) 160(CD-280mm) 70/90/120 45 120(CD-280mm) 210 120 70/90/120

15 17 33

70/90/120 70/90/120 160 KN

Ceralin:

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Under ceramic line products of Ceralins it manufactures bends cones venture canes O collars, Multiple discharge valves, multiport outlet, fuel Intel elbows, and other applications, Flyash tiles and also produced as per customer requirements. Bullet proof jacket and Catalytic converters are the products under current development.

PRODUCTS:
Industrial fans Power generation & Transmission Sam less Steal tubes Steam Turbine-Generation Sets & Auxiliaries Fabric Filter Boiler and Boiler Auxiliaries

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 AC/DC Motors, Variable Speed Once through Boilers AC Drives Nuclear Power Generation Equipment Electronic Control Gear & Automation Hydro turbine-Generator Sets & Auxiliaries Equipment Mini/Micro hydro Generator Sets DDC for Process Industry Gas Turbine-Generator Sets Thirstier Equipment Waste Heat Recovery Boilers Power Devices Heat Exchangers Energy Meters Condensers Transformer Bowl Mills and Tube Mills Gravimetric Feeders Insulators

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 Regenerative Air Pre-Heaters Capacitors Electrostatic Precipitators Broad Gauge, AC,AC/DC Locomotives Bag Filter Diesel- Electric Shunting Locomotives Valves Tractions Motors Pump Electric Trolley buses electric Machines AC Electric Multiple Units Piping System Drives & Control for Metro system Power, Distribution 7 Instrument Transformers Operated Passenger Vans Reactors Oil Rigs & Oil Field Equipments Synchronous Condensers Digital Switching System Switchgear
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- Battery

 Rural Automatic Exchange Control Gear Simulators Distributed Digital Control for Power station Wind Electric generators Bus Ducts Solar powered Water Pumps Porcelain Insulators Photo Voltaic System Ceralins Defense Equipments/Oil/Gas Reverse Osmosis Desalination plant/ Telecommunication /Renewable Energy System Turbine Generator Sets A dynamic 67000 Strong team embodies the BHEL philosophy of professional excellence with corporate headquarters in New Delhi: BHEL is Indias ambassador to the world with export presence in more than 50 countries. BHEL has a consistent tract of growth performance & profitability.

POWER:

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BHEL has commissioned more than 800 Nos. utility and industrial sets totaling to over 50,000 MW equivalent generating capacity. BHELs share in utility generating capacity was approximately 64% of the installed capacity in India in March 1993. Presently, BHEL has capacity to supply power equipment equivalent to 7000 MW per year.

Thermal Generation:
The unit sizes of utility stations in India range from 30 MW to 500 MW BHEL has so for being responsible for over 2000 of these installations accounting for over 40000 MW of installed generating capacity (utility) which include sets up to 500 MW capacity. The technology for manufacture of turbo generators comes from a comprehensive technical calibration agreement with Scienes AG of Germany. BHEL

manufactures steam generator as per technology of M/S ABB Combustion Engineering of the USA. This technology has been acquired through 20 years of collaboration/license agreement. Both these collaboration covered unit ratings up to 1000 MW.

Operating in an environment of high technology and severe competition as BHEL does, the company has perform to stay abreast with the technology leaders in the world. It is in recognition of such imperatives that BHEL has technology tie-ups around the world for a variety of power station auxiliaries as well.

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BHEL has a well chalked out programmed to assimilate, adapt and modify such acquired technology to suit differing economic,

developmental, geographic & climatic requirement. The company has also a full-fledged Research and Development Division which undertake fundamental and applied research in power and related fields. Research; is being carried out on non-conventional energy sources as well. Several of these efforts such as those in the areas of fluidized Bed Combustion, Solar and Wind Power have already resulted in commercial ventures.

Hydro Generation:
BHEL has supplied Hydro Sets upto 165 MW rating and 200 MW sets are under manufacture, BHEL has facilities to manufacture and install sets of even higher rating as per specific customer requirements. It also supplies turbines for low head mini and micro hydro stations to meet the needs of rural and backward areas located in the remote corners of the country. So far, BHEL has commissioned mire than 200 Hydro Sets of various types and capacities tattling to about 12000 MW.

Nuclear Generation:
Indias first wholly indigenous Atomic Power plant at Kalapakkam near Madras is equipped with two sets of power generation equipment of rating 235 MW each supplied by BHEL. Subsequently, another two
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sets of similar rating have been commissioned successfully at Narora. BHEL is now manufacturing sets of 500 MW rating for nuclear power stations.

Gas Turbines based generators plants:

Today BHEL is fully equipped to supply simple/confined cycle/cozen plants with various frame sizes of gas turbines of unit rating upto 200 MW. BHEL has collaboration agreements with two leaders of has turbines technology in the world namely general electric, USA and Siemens AG, Germany. The agreement with GE, USA covers rating from 4.6 MW (ISO). The Siemens agreement covers unit rating from 130 MW to 200 MW. So far BHEL has supplied more than 33 nos. Has a turbine. All these turbines have been supplied from our Hyderabad plant based on general electric, USA technology. BHEL has bagged orders for two gas turbine based projects in Malaysia, commissioning schedule of 6- 10 months. The first project has already been commissioning in 6 months time. While the gas turbines of GE/USA design are supplied from Hyderabad plant. With the plants (i.e. Hyderabad and Hard war) are fully equipped with state of manufacturing and testing facilities.

BHEL is fully equipped to supply waste heat recovery boilers from their Tiruchirapalli plant. BHEL have an ongoing collaboration

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agreement with M/S Henry volt, USA for the Waste Heat Recovery Boilers. BHEL is supplying WHRSGS foe 6X30 MW gas turbines for Delhi electric supply undertaking, and 817 MW Dadri Project of national thermal power corporation limited besides those for other power stations.

Transmission:
In addition to equipment for generating of power, BHEL supplies a variety of equipment for transmission and utilization of power. The company has also undertaken a number of turnkey sub-station contracts for voltage rating up to 400 kv class. Keeping with the KM long HVDC (High voltage direct current) transmission line project line for reliable and efficient transmission of bulk power. BHEL has in house capability to supply most of the equipment like power transformer current transformer, voltage transformers switches, insulators etc., and also possesses in house modern testing facilities. Billions of BHEL manufactured insulators of various ratings upto 160 KN are satisfactory service in many countries namely Turkey, Egypt, Malaysia, Iran, Iraq, USA Libya, Tanzania Dubai and course India.

Industry:
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The industry Sector of BHEL offers diverse items such as Transformers, Switcher, Rectifiers, Insulators, Capacitors, Control Gear, Valves Compressors, Pumps, Piping, Motors, Industrial turbines oilrigs and semiconductor devices to meet the varying needs of industry.

Transportation:
For over quarter of a century, BHEL has been supplying drives and control for traction equipment mainly to the Indian Railway, which is the third largest Railway network in the world. Today, 65% of the rolling stock in Indian contains electric of BHEL make such as traction motors, traction generators/alternators, and transformers. The

company has lately moved from the position of supplier of electrics only to supplier of complete locomotives -both diesels electric as well as A.C. Locos. The urban transportation problem demands different solutions and BHELs contribution extends to underground tube, light rail and battery powered road vehicles

Services Project Engineering:

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The total engineering for thermal power stations is undertaken by a core group project engineering management. With over 500 engineers and supporting staff, this division offers specialized service in different technical disciplines and undertakes engineering works relating to optimization of cycle configuration selections of parameters and design of suitable system for power stations with a total MW capacity of 30000 and is currently involved in several turnkey project including stations having 500 MW unit size.

Constructions Management:
BHEL has a full-fledged construction management division to undertake erection work. This division well organized with over 500 experienced engineers,1000 technicians and 1300 skilled workers besides construction equipment valued at over 40 million US Dollars.

Service After sales:

BHEL extends its supply and construction scope with service such as commissioning field engineering performance monitoring trouble shooting operation and maintenance. Renovation modernization and rehabilitation works of aged power stations are also undertaken. BHEL has a separate spare group response for insuring ready availability of essential spares to Power stations.

Projects Management:
The project management division of BHEL coordinates th4 entire range of BHEL activities in relation to thermal power plant project and

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is responsible to the purchasing organization for compliance of the specifications. Entrusted with the overall coordination of the project the division initiates, directs coordinates, supervises and control all activities that are necessary for the performance of the project right from the conception stage until the contractual obligations are fully discharged. BHEL offers a wide spectrum of products and services for core sectors like power transmission industry, transportation, oil & gas telecommunication etc, deseeds supply of non-conventional energy systems. It has also embarked it to other areas including defense & aviation.

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CHALLENGES OF THE ORGANIZATION:

Key challenges of the organization arc reviewed as follows Excellence in all areas of operations. Effective execution of order. Effective utilization of machine. Material cost reduction. Manufacturing cycle time reduction. Skill and knowledge management. Motivation of employee Timely delivery Outsourcing.

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PERSPECTIVE FOR THE FUTURE:

The Power Sector in India continues to exhibit growth momentum. Orders for around 80,000 MW have already been placed for the XI Plan and ordering for the XII Plan projects has begun. It is expected that the share of private sector projects and the share of supercritical thermal power projects would be much higher in the XII Plan period. The domestic market for power plant equipment is expected to witness enhanced competition. In line with the Capacity and Capability enhancement strategy adopted by the company, BHELs manufacturing capacity expansion from 10,000 MW p.a. to 15,000MW p.a. is proceeding apace and plans are afoot to hike this further to 20,000 MW by 2011-12. Capability building initiatives being pursued by the company include, forging strategic alliances by way of JVs to leverage equipment sales in the Supercritical technology domain, JVs for technology sourcing, JVs for sourcing critical inputs, equipment, etc.Such alliances include partnerships with NTPC, NPCIL, TNEB, KPCL, GSECL, KEL, BEL,HEC and PTC. To deal with the competition in the domestic market, BHEL has introduced new ratings of 150 MW, 270 MW, 525 MW, 600 MW, in the sub-critical segment

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and 660 MW and 800 MW unit sizes in the supercritical segment. Further, the company is introducing new technologies, like Advanced class Gas Turbines, IGCC, etc., for which orders have already been received. To pursue inorganic growth, tie-ups are being explored in the areas of Transmission with focus on 765 kV and 1200 kV segments; Transportation with focus on IGBT-based propulsion systems, metro coaches, electric locos etc.; Photovoltaic with focus on manufacture of silicon wafers, solar cells, modules and setting up a Greenfield PV project, and in Nuclear with focus on the reactor side, for which cooperation with GE-Hitachi to implement projects being pursued by NPCIL. Bharat Heavy Plate & Vessels (BHPV), engaged in the manufacture of industrial boilers and process equipment, has been acquired as a 100% subsidiary. In order to remain cost competitive and to retain market share, capabilitybuilding initiatives, through Design To Cost (DTC), Lean Manufacturing (Lean) and Purchase & Supply Management (PSM) tools have been undertaken for identified products at select units of BHEL. International business will be further enhanced by focusing on consolidation in existing international markets as well as entering new markets. Growth will also be driven by initiatives for manufacturing and service presence in select countries. The company is thus future ready and is on track to becoming a Rs.45,000 Crore turnover company by 2011-12 as per the Strategic Plan of the company. The above performance is a result of the tireless efforts and commitment of a team of 46,000 dedicated employees and the confidence reposed by BHELs

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stakeholders including the Government of India. I thank the Board members, all my colleagues, stakeholders and our friends from the media for enabling us to set new benchmarks.

PART-II

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77

RESEARCH OBJECTIVE
Any project work to be carried out in any organization or in any fieldwork in the market has certain per decided and specified objective, which is to be attained. The whole survey or fieldwork is designed in accordance with that objective .The whole survey is broken down in two various parts, which individually contribute to that project's objective. The objective laid down helps to solve the problems that exist in the organization. This problem provides the foundation for the project and the projective. The various things that are to be done in any survey, the various components of theproblem and the project objective provide the base for deciding the scope of the project. The scope of the project varies from project to project, the scope are the limit with in which the person carrying out the project has to work. It provides the person various things that are to be done. Under project it is basically the subdivision of the project objective.

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Objective:
To give top priority to quality. To make profit, through maximum production at minimum cost. To train ourselves for excellence. To achieve business excellence by enhancing long term shareholders value and interest of all its shareholders. Design; procurement, supply and execution of system and equipment for transmission project to meet requirement of customer stated as well as implied; statutory aspect and national/international standards. To acquaint customer on operation and maintenance of the equipment and systems.

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RESEARCH METHODOLOGY:
Marketing research is a systematic design, collection, analysis and reporting of the data and findings relevant to specific marketing situation facing the company. The marketing research is done in the following ways: Defining the problem and research objective. Developing the research plans. This is to develop the most effective plan for gathering the needed information. In this project the plan was so decided that the research objective are fulfilled.

Design Plan:
Research design was exploratory and was chosen keeping in mind the objective of the research with the accurate description of the variable in the problem model. The exploratory research has been conducted because both primary data secondary data were taken as basic data collection approaches. The secondary data collected were from books, surveys, internet, journals etc.

Methodology:
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While structuring the questionnaires to reduce business and make the questions short crisp and easy to understand. Questionnaire was prepared, and was structured and constructed to elicit the maximum information from the respondents. Optimum care was taken Once the questionnaire was prepared. It was shown to the various authorized persons in the organization for pre-testing. Hence the errors were corrected and then the final and improved questionnaire was introduced for the survey. Some of the questionnaires were mailed to the various companies to get their response. Some questionnaires was FAXED. Telephonic interview was also conducted with some employees of the chosen companies. Non probability sampling is done because of its convenience. This sample was actually selected after much consideration was given to the fact that it would be quite difficult to survey a large sample because of time and cost factor. There were lots of difficulties faced while collecting the data. The respondent was very busy in their work and not liked to response. Some respondent were rude while giving the response. It was also a hectic task and had to go to different places for collecting data. All data were collected from different industries who order for insulator for their production.

Sample Size:
In this research I took a sample of 20 companies, who purchase insulator for their various operations related to various industries.
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The companies were selected on the basis of the core sector BHEL dealt with as per convenience. The companies were not confined to Jagdishpur itself. Companies setup in other places were contacted through mails. A small sample was chosen because of cost and time constraint.

Sample Procedure:
The method adopted was non probability sampling.

DATA SOURCES: The research plan can call for gathering primary and secondary data.

A.

Primary Data:
Primary data has been collected personally from various personnel. I interacted directly with executive persons of the marketing & commercial department of insulator plant Jagdishpur .We also contacted the end use customers of insulator for collecting information related with the quality of insulators .I acquired good information.

B.

Secondary Data:
I collected secondary data from companys records,

magazines, books and the website of the company www.bhel.com .

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We

took data from other related websites also such as

www.google.com , www.wikipedia.com etc.

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SWOT analysis of BHEL:

Strengths:
Sound engineering base and ability to assimilate Relatively stable industrial relationship Access to contemporary technologies with the support from renowned collaborators. Ability to set up power plants on turnkey basis, complete know- how for manufacture of entire equipment is available with the company. Ability to manufacture or procure to supply spares. Fully equipped to take capital maintenance and servicing of the power plants. Largest source of domestic business leading to major presence and influence in the market. Ability to successfully overhaul and renovate power stations equipment of different international companies. Low labour cost. For non- BHEL products, services and spares are not easily available and if they are, price charged are very high.

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 Sound financial position in terms of profitability and solvency. Low debt equity ratio (even lower than 0.5:1) for all the years under study, enabling company to raise capital.

Weaknesses:
Difficulty in keeping up the commitments on the product delivery and desired sequence of supplies. Larger delivery cycles in comparison with international suppliers of similar equipment. Inability to provide suppliers credit, soft loans and financing of power projects. Lack of effective marketing infrastructure. Due to poor financial position of state electricity boards, which are the major customers of BHEL in India, liquidity position of BHEL is not satisfactory. Being a public sector company BHEL is suffering from sub optimality of control due to: Displacement of social objectives by political objectives, which may lead to redundant costs and also rising costs.

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 Direct political intervention in managerial decision over an arm length relationship that would restrict governments task of setting appropriate managerial incentive structure. Private goals that lead to budget growth and employment growth. Internal inefficiencies in bureaucratic activity.

Opportunities:
Demand for power and hence plant equipment is expected to grow. Private sector power plants to offer expanded market as utilities suffers resource crunch. Ageing power plants would give rise to more spares and services business. Life expansion program for old power stations. Export opportunities. Easy processing of joint ventures/ collaboration/import/ acquisition of new technology. Financial and operational autonomy for profit making public sector enterprises. To make the public sector more efficient government has decided to grant enhanced autonomy and delegation of powers to the profit making public sector enterprises.

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Threats:
Increased competition both national and international.

Multilateral agencies reluctant to lend to power sector because of poor financial management of S.E.Bs More concessions to private sector and not to government owned utilities like NTPC or S.E.Bs, so future power projects would be opened up in private sector. The company is dependent on NTPC to a great extent. The global trend of consolidation has already resulted in a fall in turnover of the company and this will prove to be a major threat in the years to come as well. Recently, the government has permitted the import of second hand capital goods that are 10 years old without the need for a license. This move will definitely increase competitive pressures for BHEL. Level playing ground not available, foreign companies spending much more on business promotion tactics.

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STRATEGIC ANALYSIS OF BHEL:

Power Plant Equipment (PPE) and others various related industries in which BHEL operates seems to be fairly attractive for it. As far as overall business strength is concerned it is in favor of BHEL. It is market leader in PPE and other related industries. There is enough production capacity available with BHEL and scope of its expansion is also very good. Finance and Strategic capability of BHEL is outstanding. Company is performing fairly well on production efficiency and R&D front. Only areas of concern for the company are its ownership and marketing. Being a public sector company it does not put much effort on the marketing.

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Majority of its client are financially sick State Electricity Boards (SEBs) and BHEL is a preferred supplier to these SEBs because its competitor MNCs are hesitant to supply equipments to these SEBs because of their sick financial position. Its ownership structure also. A businesss position within the planning grid is calculated by subjectively quantifying the two dimensions of the grid. Industry attractiveness factors for BHEL Business Strength for BHEL

BHEL:

Industry attractiveness factors for

Industry Attractivenes s factors

Market Size

Weight
30

Ratings
0.5 1 0.5

Score
15 35 7.5

Projected Market 35 Growth Technological 15 Requirement

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Political and 20 Regulatory factors

Total Ratings:

100

-----

57.5

High = 1.0, Medium = 0.5, Low = 0.0

market size Technological Requirement

project Market Growth Political &Regulatory Factor

Business Strength for BHEL:

Business Strength Factors

Relative Market Share Ownership Production Capacity Production Efficiency R&D

Weight
30 20 5 5 10

Ratings
1 0 1 0.5 0.5

Score
30 0 5 2.5 5

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Strategic Capability Marketing Finance

10 10 10

1 0 1

10 0 10

Total

100

------

62.5

Ratings:

High = 1.0, Medium = 0.5, Low = 0

Relative Market Share Production Efficiency Marketing

Ownership R.&D. Finance

Production Capacity Strategic Capicity

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98.33% of total customer belongs to private sector and other 1.67% to semi government.

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Private sector

Semi govt.

93

53 respondents out of 60 used to purchase insulator when they required it.

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 71.66% of total respondent prefer BHEL as their preferred supplier.

Preferd supplier

not preffered

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 96.67% of the customer believe that BHEL's contribution to national economy is high.

perception of customer acording to contribution of B.H.E.L.

high contribution

not high contribution

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 The demand of insulator has been increased in last Two years. Due to coming up new power projects. Some new customer is coming or due to Liberalization of Govt. Policies for captive Plant. Quality is treated as the main function while purchasing insulator Price delivery are the later factor of it. BHEL has good marketing network through there Business Sectors. Most of the companies while selecting vendor look at brand image and past experience most commonly. Customer most often purchased insulator of approximately Rs. 1-5 crore.

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CONCLUSION:
After the study of all the factor of consideration .I found that most customers prefers brand image & past experience most commonly. BHEL have SU years experienced, 96% of BHEL's customer think it's contribution towards national economy is high. 71.66% of customer prefer BHEL as their major supplier of insulator. It means BHEL's brand image is very good. Customer mostly purchased insulator when they found it's requirement . Quality is treated as major function while purchasing insulator and customer treated BHEL product as the best of all.

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SUGGESTIONS:
The work flow at BHEL is quite smooth and organized. Each and every department is further sub-divided in small sections and the work is divided among those sections with the head of the department presiding over them. These heads then come together and form the upper core of the organization, where the decision making and target setting takes place. These heads prepare their own budgets and targets which are then combined together to prepare the target of the whole organization. Along these there are some points that need to be taken of:

In BHEL the dress code of all the employees is same no matter whether he is a GM or an AGM. This is good on one point that it gives message of oneness but the top level employees need to be given something that differentiate them from the rest or indicates that they are the top level employees. For this purpose they can ask their top executives to wear a tie which will take care of both the points i.e. the oneness along with some extra respect to those employees.

The wooden boxes that they use for the storage and dispatch purpose of their finished product is a matter of concern. The BHEL board should set a committee or some personnel to find out an alternative to this problem as wood is not a long term solution and can backfire at any time. They

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seriously need to look for a long term replacement for this purpose as soon as possible.

The wastage that occurs once the insulators are tested defective is really a matter of concern as they are just thrown at a place which can be well used for some other purpose. The board needs to take some decision to solve this problem and come out with a solution soon.

BHEL should at least have proper place for the employees where they can relax during the lunch time as there is no such place in the company where they can sit and rest during this time. The lunch break is of 40 minutes and it hardly takes 15-20 minutes to finish the lunch and rest of the time they spent sitting here and there, but if a proper place is provided to them they can sit and relax there which can improve their efficiency to a great extent.

The facilities in their township can be improved a little although the facilities provided are good, but one or two recreation parks and recreation clubs can be set up which will help the young children in the township in their all round development. The school that is in the township is already serving a great purpose in this respect. Technology advancement & up gradation of machineries will help in reducing the cost of production & increased the quality of product.

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 BHEL may take more profit in the items, which are monopolizing in nature.

BHEL can Identified the customers requirement& try to fulfill it.

LIMITATION OF THE STUDY:

Many respondents are outside the confines of Delhi did not provide the required information. Sometimes information provided by respondent may influenced by personal problems leading to biasness. The research had to be completed within a small span of time. This has limited researcher from choosing a satisfactory number of sample. The sample size collected for the research work is in sufficient. As the research was confined to a limited field. So the finding can't be applied universally.

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Annexure:
Related News with B.H.E.L.:
BHEL bags Rs.1,300-crore order for Vallur project (Business Capsule) :
September 11th, 2009 CHENNAI - Power equipment major Bharat Heavy Electricals Ltd (BHEL) has won a Rs.1,300-crore order from NTPC Tamil Nadu Energy Co Ltd (NTECL) for supplying boilers, turbines and generators. NTECL, which is setting up a 3x500 MW power plant at Vallur near here, is a joint venture between power utility NTPC and Tamil Nadu Electricity Board.

PM to lay foundation stone for Andra power equipment plant

August 31st, 2009 HYDERABAD - Prime Minister Manmohan Singh will Sep 6 lay the foundation stone for the Rs.60 billion (Rs.6,000 crore) mega project to manufacture power plant equipment in Andhra Pradesh's
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Chittoor district. NTPC-BHEL Power Projects Private Limited (NBPPL), a joint venture between National Thermal Power Corporation Limited (NTPC) and Bharat Heavy Electricals Ltd (BHEL), is setting up the project at Mannavarm village near the temple town of Srikalahasti.

Bharat Heavy Electricals to expand boiler division

August 15th, 2009 TIRUCHIRAPALLI - Power equipment major Bharat Heavy Electricals Ltd (BHEL) will invest Rs.485 crore ($100 million) to expand its boiler division, a senior official said here Saturday. "The expansion will be completed by 2011 and the division's capacity will go up to 15,000 MW per annum," BHEL executive director A.V.

Bharat Heavy Electricals to invest Rs.485 crore in boiler division

August 15th, 2009 TIRUCHIRAPALLI - Power equipment major Bharat Heavy Electricals Ltd (BHEL) will invest Rs.485 crore ($100 million) to expand its boiler division that makes thermal and nuclear plant boilers, a senior official said here Saturday. "The expansion will be completed by 2011 and the division's capacity will go up to 15,000 MW per annum," BHEL executive director A.V.

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Jaypee Group, Larsen and Toubro tie up for thermal project

August 12th, 2009 NEW DELHI - Engineering and construction major Larsen and Toubro (L&T) will supply and erect boiler and steam turbines for a 1,320-MW thermal power project that Jaiprakash Power is setting up in Madhya Pradesh. The two companies Wednesday signed an agreement in this regard.

BHEL sends super-critical boiler columns for NTPC project

July 18th, 2009 CHENNAI - Power plant equipment major Bharat Heavy Electricals Limited (BHEL) Saturday dispatched super-critical boiler columns, weighing a total of 100 tonnes, from its boiler plant in Tiruchirappalli to the NTPC-promoted Barh Thermal Project in Bihar. K. Ravikumar and R.S.Sharma, the CMDs of BHEL and NTPC respectively, flagged off the consignment at Tiruchirappalli, 300 km from here.

BHEL to invest Rs.5,803 crore on expansion

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July 16th, 2009 NEW DELHI - The state-owned Bharat Heavy Electricals Ltd (BHEL) will invest Rs.5,803 crore to double its power plant equipment manufacturing capacity by the end of 2011, the government said Thursday. "BHEL had augmented its manufacturing capacity for power plant equipment from 6,000 MW to 10,000 MW annually by December 2007," said Arun Yadav, Minister of State for Heavy Industries and Public Enterprises, in the Lok Sabha.

Bharat Heavy Electricals bags Rs.170 crore deal

June 29th, 2009 NEW DELHI - State-run power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) has bagged an order worth Rs.170 crore from Chennai Petroleum Corp (CPC) to set up a gas turbine at its Manali refinery. BHEL will develop 20 MW co-generation power plant at CPC's Manali refinery.

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BIBLIOGRAPHY

Marketing Management (Philip Kotler) Research Methodology (C.R. Kothari ) Commercial & marketing Department of B.H.E.L. Annual reports of Bharat Heavy Electricals Limited www.bhel.com www.google.com www.wikipedia.com www.yahoo.com

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