Company Background - BHEL

BHEL, is the largest engineering and manufacturing enterprise of its kind in India and it was incorporated in the year of 1964. It is one of the leading international companies in the field of power equipment manufacture and engaged in power generation, transmission, industry (transportation, renewable energy etc) and Overseas Business. BHEL is a ISO 9000, ISO 9001-2000, ISO 14001 and also OHSAS-18001 certified public sector corporate situated in New Delhi. BHEL has over the years established its references in 68 countries of the world spanning across all the six-inhabited continents. In 1991-92, it has divested a part of its equity shares to public and financial institutions. At present the government of India holds 67.72% in the total equity capital of the company. In India alone BHEL have 14 manufacturing units, four power sector regional offices, eight service centers and 15 business offices for manufactures over 180 products under 30 major product groups and enable to provide high level of quality & reliability of its products at prompt time. The company's major clients are State Electricity Boards, NTPC, World Bank aided projects, the Railways and a host of private companies in domestic, in case of overseas company's products are exported mainly to the middle-east and the far-east countries. BHEL has two joint venture companies, BHEL-GE Gas Turbine services Ltd with GE,USA for repair & servicing of GE designed Gas Turbines and Power Plant Performance Improvement Ltd with Siemens AG, Germany for plant Performance improvement of old fossil fuel power plants.

BHEL received MOU Award for Excellence in Performance for 2004-05. BHEL has won International Asia Pacific Quality Award (IAPQA 2005) from the International Asia Pacific Quality Organisation (APQO) through its Ranipet Unit. It is the first engineering & Manufacturing organization as well as the first PSU in the country to received this award. During the year 2005-06 BHEL got FICCI Award for environmental conservation and pollution control, ICWAI National Award for Excellence in Cost Management-2005. In 2006-07 the company conferred again the same ICWAI National Award for Excellence in Cost Management-2006. BHEL qualified for the Business Standard Star Public Sector Company Award-2006 and also the CII Exim Award, BHEL is the first public sector company received the CII Exim award.

The company opened a new line of business in the form of Gas Insulated Substations (GIS) in April 2007. The Corporate R&D department of BHEL has successfully developed an indigenous GIS. It has also bagged the first letter of intent from the Andhra Pradesh Transmission Corporation (APTransco), for installing the first unit in the State. As on May 2007 BHEL signed a memorandum of understanding with Toshiba of Japan for know-how in higher horsepower locomotives, it may help the company to shift from the production locomotives capacity 6,000 hp to 10,000-hp range. In August of the same year Uttar Pradesh government and BHEL came to an agreement for setting a 1,600 Mw thermal power project at Obra. The project has divided into two units of 800 Mw each. The cost of the project is estimated to be Rs 6,400 crore or Rs 4 crore per Mw. The deal covered 50 per cent equity participation by the BHEL and the rest by state government of UP. DVC has already awarded turnkey contracts for setting up Koderma and Durgapur Steel thermal power stations of 1000 mw each to BHEL worth of Rs 6,500 crore. In 2007 Sept. 10th NTPC Ltd, the country's largest power generator and equipment major BHEL, have signed a memorandum of understanding to form a joint venture company to carry out engineering, procurement and construction (EPC) activities in the power sector on "mutually beneficial terms."

The company completed Phase I of its latest modernisation drive in December 2007, with an investment of Rs 190 crore, to take its manufacturing capacity to 10,000 MW from 6,000 MW a year. Phase II in 2008 would add about 1.25 million sq ft of shop floor and associated office space, spread over about 130 acres in the 3,000-acre of BHEL campus. On-site fabrication work is under way to erect additional shop floors and 75 different types of machines would be install, after this expansion the company's manufacturing capacity would go up to 15,000 MW equivalent of power plant equipment a year and may to be in a position to supply over 75,000 MW equivalent of plant equipment over a five-year period. From April 2008, BHEL's projects can monitored online, the implementation of a new Web-based project monitoring system covered this and it would enable to get a real-time status on project schedules. BHEL firmly establishing itself in target export markets, positioning of BHEL as a regular EPC contractor in the global market and exploring various opportunities foe setting up overseas joint ventures etc. The company was focused on addition of facilities for various products in manufacturing units and for construction of tools and equipment for erection and commissioning services at project sites.