INTRODUCTION
Bharat Heavy Electricals Limited
(BHEL) was set up in the late 1950's with the goal of making India self-reliant
in the field of indigenous manufacture of power generation equipment. Today,
BHEL is the largest engineering enterprise of its kind in India with an
excellent track record of performance; making profits continuously since
1971-72 and paying dividends since 1976-77.
With 180 products under 30 major
product groups, today BHEL caters to core sectors of the Indian economy
, viz. Power, Industry, Transportation (including railways), Transmission,
Telecommunication, Defence, Non-conventional Energy Sources etc.
BHEL's inherent potential coupled
with its consistently excellent performance has resulted in it being chosen
as a `Navratna' PSE. Today, the company has a committed workforce of 62,500
employees spread at 14 manufacturing divisions, 9 service centres and 4
power sector regional centres, besides project sites spread all over India
and abroad. BHEL also has a Corporate R&D centre at Hyderabad and product
based R&D centres at all its manufacturing units.
During the year 1998-99, BHEL achieved
a record turnover of Rs. 6765 crore as against Rs 6471 crore in the previous
year. Similarly, the Profit Before Tax (PBT) stood at Rs. 941 crore, thereby
maintaining its track record of making profits uninterruptedly for the
last 27 years.
POWER
The Power sector is the core business
of the company and comprises thermal, nuclear, gas and hydro businesses.
In less than three decades, BHEL has taken India from a position of total
dependence on overseas sources to complete self-reliance in power plant
equipment, design and manufacture. Today, BHEL sets account for 65% of
the installed capacity of about 90,500 MW in the country.
Since the first BHEL made thermal
and hydel power generating equipments were commissioned in 1969-70, around
650 numbers thermal, hydro, gas and nuclear sets have been contracted on
the company. These very sets form the backbone of the Indian power generating
system.
BHEL has introduced Gas Turbine
based sets along with cogeneration and combined cycle systems keeping in
view the need for more efficient, environment friendly and short gestation
projects. As on date, over 100 Gas Turbines have been contracted on BHEL
from India and abroad.
JOINT VENTURES
As part of its strategy to tap business
in emerging business segments, BHEL has set up set up 2 separate Joint
Venture Companies (JVCs) in India, on a 50-50 equal partnership basis with
world renowned corporations, Siemens AG, Germany, for plant performance
improvement of old fossil fuel power plants and General Electric (GE),
USE, for repair and servicing of old GE design heavy duty gas turbines.
Both the JVCs have commenced commercial operation.
Besides catering to the Indian market,
the JVCs will have access to many export markets. Having the synergy of
know-how and expertise of both the partner companies in their respective
areas, the JVCs will, by virtue of their association with world's leading
corporation, have access to much needed finances. Both these JV companies
are essentially engineering and marketing companies and will source their
requirements of hardware and services from the JV partners, thus providing
additional business. The JVCs, with the support of BHEL and respective
JV partners have the necessary competitive edge to face global competition
in these newly emerging business areas.
INTERNATIONAL COMPETITIVENESS
One of the strong points of BHEL
has been its international competitiveness, with the company has successfully
proved by bagging over 86% of power plant orders under international competitive
bidding (ICB) in the domestic market, since 1978. In fact, the presence
of BHEL in the Indian power plant market has compelled competitors (MNCs)
to quote attractive prices for power equipment. As such if BHEL wins in
these bids, it gains an order and adds value in the country and in every
in case where BHEL competes, the country derives the benefit of lower projects
costs.
During the last two years, the company
has achieved major successes in securing orders for power plant equipment.
Major among these including those bagged under International Competitive
Bidding (ICB) are as follows :
-
OECF funded power projects, Simhadri
TPS (2 X 500 MW); Faridabad CCPP (430 MW); Ghatghar HEP (2 X 125 MW) &
Bakreswar TPS (3 X 210 MW).
-
World Bank funded Kayamkulam CCPP (350
MW).
-
Reichur TPS (2 X 210 MW) which is the
first IPP of its kind in the country, being jointly funded by nationalised
banks, financial institutions, PFC, BHEL & KPCL, with indigenous equipment
& expertise. BHEL achieved a milestone by synchronising the fifth unit
of 210 MW capacity at Raichur TPS, much ahead of schedule, in a record
period of just 28 months. With this, the company has set a new benchmark
in the commissioning of future thermal power generating sets in the country,
in the shortest possible time.
-
India's highest head (1027 meters) Pykara
HEP (3 X 90 MW) in Tamil Nadu and Khaperkheda TPS Stages II (2 X 210 MW)
funded by MSEB and PFC.
-
TNEB's Kovilkalappal CCPP (108 MW) in
Tamil Nadu, to be equipped with India's first Advanced Class Gas Turbine
of 70 MW ISO rating.
With project financing becoming a crucial
aspect for furtherance of business in the power sector, BHEL has been pursuing
with major financial institutions. As a result, Industrial Credit &
Investment Corporation of India (ICICI) have placed at the disposal of
BHEL, a line of credit, to enable the company to offer sales-aid-finance
for its equipment supplies to independent and captive power projects. Besides,
BHEL has been giving suppliers credit/arranging finances as a measure of
sales-aid-financing. BHEL has so far given supplier's credit/offered financing
packages to projects including Kothagudem TPS (2 X 250 MW), Vijaywada TPS
(2 X 210 MW) and Raichur TPS (2 X 210 MW).
RECOMMISSIONING
BHEL achieved a landmark with the
restoration of all the seven units at the flood-ravaged 770 MW Srisailam
Hydro Power Station in Andhra Pradesh, in a record time of just 75 days.
The power station was submerged
under water, due to unprecedented inflows into the dam-the highest in the
last 35 years. Andhra Pradesh State Electricity Board (APSEB) reposed confidence
in BHEL's capability by placing an open order on the company for restoration
and recommissioning of all the 7 units in the shortest possible time.
Accepting the challenge of undertaking
this massive rehabilitation job, the company promptly deputed its engineers/experts
on-site for on-the-spot advice and decisions. The required manufacturing/procurement
activities for supply of spares were also taken up and the equipment which
were damaged beyond repair were replaced with new equipments, on war footing.
As a result o round the clock work by BHEL, all the seven units were spun
and the rehabilitation job was completed in an unprecedented schedule of
75 days.
TRANSMISSION
For evacuation of power, BHEL designs
and carries out R&D on a wide range of transmission products and systems
including high voltage power and distribution transformers, instrument
transformers, dry type transformers, SF6 switchgear, insulators, shunt
reactors, capacitors etc. For the first time in India, BHEL switchgear,
insulators, shunt reactors, capacitors etc. For the first time in India,
BHEL has developed 400 kV spark gaps for series compensation schemes and
these have undergone successful testing at KEMA, Netherlands making India
one of the few countries in the world having this technology. A 145 kV
Gas Insulated Switchgear (GIS) which has been successfully tested at CESI,
Italy will be introduced in the market shortly.
Special Ceramic Disc Insulators,
indigenously developed for the first time in India by BHEL for + 500 kV
HVDC transmission systems, have passed all tests at CESI, Italy. The development
has placed India among a select group of only three countries in the world
possessing the State-of-the-art technology.
The company has so far supplied
over 1,88,000 MVA transformer capacity & sustained equipment operating
in transmission and distribution (T&D) networks upto 400 kV-AC &DC.
High Voltage Current (HVDC) technology has been pioneered in India through
BHEL, for efficient and reliable transmission of bulk power over long distances.
India's first commercial HVDC link between Rihand in AP and Dadri in UP,
has been successfully commissioned by BHEL.
NCES
BHEL has been a pioneer in the development
of non-conventional energy sources (NCES) in the country. The company has
emerged as the market leader in renewable energy products like Solar Water
Heating Systems (SWHS), Solar Photovoltaic Power Systems & Wind Electric
Generators etc.
Over the years, BHEL, in coordination
with the Ministry of Non-Conventional Energy Sources, has widened its product
range and expertise in the field of NCES. Through extensive R&D efforts,
BHEL has developed technologies which are used to manufacture products
like solar photovaltaic systems, solar lanterns and battery powered road
vehicles etc.
BHEL has so far supplied solar modules
& systems for generating around 7 MW of power for applications in office
and home lighting, stand-along street lights, traffic signals, grid interactive
power plants, rural automatic telephone exchanges, refrigeration systems,
unmanned offshore oil platforms, meteorological data collection platforms
etc. Besides, BHEL has so far installed SWHS capable of producing cumulatively,
about 33 lakh litres per day of hot water, throughout the country, for
applications in dairies, hospitals, hotels, research institutions, swimming
pools etc., besides domestic consumers.
INDUSTRY
BHEL is a major contributor of equipment
and systems to industries like cement, fertilisers, refineries, petrochemicals,
steel, paper and telecommunications. In addition, the non-power sector
also includes supplies made to transportation & defence. The range
of equipment supplied includes Captive Power Plants, Compressors, High-Speed
Industrial Drive Turbines, AC and AC/DC Locos, Diesel Electric Shunting
Locos,Heat Exchangers etc. This sector today accounts for half of the company's
turnover.
Today, over 66% of Indian Railways,
one of the largest railway networks in the world is equipped with traction
equipment built by BHEL. The company has also supplied over 50,000 traction
machines to the Indian Railways. With the introduction of 3 phase AC technology
by Indian Railways, BHEL has made an entry in this area, by securing an
order for 64 sets of EMU electrics from Western Railways as well as electric
and electronic sub systems for 6000 HP WAG9 three-phase locomotives from
Chittaranjan Locomotive Works.
The company is the market leader
in products like Centrifugal Compressors, Motors, Dry Type Transformers,Gas
turbine based co-generation plants as well as steam turbines and boilers
for industries.
Recent successes of BHEL in the
non-power business segment include an agreement with Oswal Chemicals &
Fertilisers Limited(OCFL) for meeting all High Voltage AC motor requirements
for their upcoming fertiliser project at Paradeep (Orissa); turnkey order
for Konark Metcoke Ltd's 55 MW gas-based Captive Power Plant with India's
first coke oven gas fired turbine; order for 12 nos. AC/DC locos from Indian
Railways; order for a 200 tph pulverised fuel-fired steam generator from
National Aluminium Company Ltd. (NALCO) and seven orders for Steam turbogenerator
(STG) sets for Cogeneration plants from the Sugar Industry.
GLOBAL PRESENCE
BHEL has carved a niche for itself
in the global market, having supplied products, services and projects to
over 55 countries ranging from the United States in the West to New Zealand
in the Far-East. The cumulative capacity of power generating equipment
supplied by BHEL outside India, is over 3300 MW. The company's overseas
presence includes several projects, a notable few being 150 MW (ISO) Gas
Turbines to Germany; Utility Boilers, Open Cycle Gas Turbine Power Plant
to Malaysia; turnkey Power Station for Tripoli West Power Station in Libya
and Hydro Power Plant to Thailand.Recent contracts executed by BHEL include
Gas based power projects in Saudi Arabia and Oman, Boiler in Egypt and
several Transformers in Malaysia.
The company achieved several successes
on the export front during FY 1998-99 including maiden entry in Syria with
order for X-mas Tree & Well head equipment and in Kuwait with valves;
first ever order for state of-the-art Outdoor Vacuum Circuit Breakers from
Oman; first ever engineering services contract from South Africa for Engineering
of test facilities of Coal Gasification Fluidised Bed Combustion; repeat
orders for Transformers from Greece and Jordan and orders for Castings
from Germany and Motors from USA. The export turnover (including deemed)
went up from a meagre Rs. 276 crore in 1989-90 to Rs. 2061 crore in 1998-99.
During the year, BHEL also bagged
a prestigious export order, in the face of stiff competition from international
gas turbine manufacturers from USA, UK and Netherlands, for the supply
and installation of 3x30 MW gas turbines and auxiliaries for a gas based
captive power plant, on turnkey basis, in Oman. This order, from Petroleum
Development Oman, a joint venture of the Oman Govt. & the Royal Dutch
Shell Group of Netherlands, establishers BHEL's benchmark of quality conforming
to global standards of multinational oil companies.
QUALITY
One of the important aspects of
competitiveness is `Quality' and the quality standards of BHEL equipment
have been recognised in India & abroad. All major manufacturing
divisions and service centres of BHEL have been accredited with ISO 9000
certification by the world renowned BVQI of London. In addition,
the company is adopting Total Quality Management (TQM) to keep abreast
of world standards in order to benchmark and prepare the company's products
and internal processes to global standards.
TECHNOLOGY AND R &
D
Technology is a major element in
the corporate strategy of BHEL, as most of its products and services are
highly technology intensive in nature.As a part of this, the company in
the past has been updating technology from time to time with collaborative
tie-ups with world leaders.
The company's own R&D efforts
have been concentrated on the areas of optimum utilization of existing
energy systems by coal, hydro, non-conventional energy systems, energy
conservation, life assessment and extension of existing power plants, development
of clean coal technologies such as Integrated Gasification Combined Cycle
(IGCC) power plant, Pressurized Fluidised Bed Combustion (PFBC) systems,
more efficient transportation systems etc. The total R&D expenditure
of BHEL in 1998-99 was Rs. 60 crore, which is the highest in any comparable
industry in India.
As a contribution to national pollution
control efforts BHEL has been continuously alive to the responsibilities
of protection & conservation of the environment and the ecological
balance. Electrostatic Precipitators, designed & supplied by the company,
have been working at an efficiency of 99.95%, thereby effectively controlling
air pollution emission form thermal power plants and industries like cement.
BHEL has also developed CFBC boilers which have higher efficiency &
ability to fire low-grade fuels with reduced emission, besides equipment/systems
for DHDS,flyash utilisation and desalination etc.
COPING WITH FUTURE CHALLENGES
India embarked on a programme of
liberalisation since 1991,which has resulted in relaxation of controls
& procedures resulting in the opening-up of the Indian economy and
more competition, in the public as well as the private sectors. In this
scenario, the fortunes of the business enterprise would solely depend upon
its ability to meet market needs in respect of price, delivery, quality,
after-sales-service etc. with speed and efficiency, irrespective of their
being public or private sector enterprises.
While BHEL is internationally competitive,
it is also adopting suitable measures aimed at reducing cycle times,
improving its business processes, benchmarking against worlds leaders to
enable it to deal with the current business realities.
For any enterprise having global
aspirations, it is essential that it becomes a strong domestic player first
and BHEL has already demonstrated this ability quite creditably. However,
in terms of the ability to become an equally strong player in the international
market requires that on one hand the company should further build on its
international image and at the same time be supported by suitable country
specific and industry specific strategies by the Government.
On its way to becoming a truly Indian
transnational,the company always strives to create an ever increasing value
for users of its products and services. It is the company's constant endeavour
to transform into one of the most competitive enterprises of its kind in
this part of the world to international quality standards. |