encompass almost the entire range of BHEL products and ... wide variety of
products such as transformers, ... BHEL recorded a total turnover of US$ 3.27
billion.
BHARAT HEAVY ELECTRICALS LIMITED (BHEL)
Company Background Bharat Heavy Electricals Limited (BHEL), incorporated in 1964, is a commercial enterprise of the Government of India. Headquartered in New Delhi, India , BHEL is the largest engineering and manufacturing enterprise in the country in the energy/infrastructure sector, and one of the leading power sector companies in the world. The power generating installations set up by BHEL contribute nearly 73 per cent of the power generated in India. BHEL's operations are divided into three segments - Power, Industry and Overseas Business.The company manufactures equipment for all types of power plants (thermal, gas, hydro, and nuclear).The Industry segment also includes sub-segments such as transmission, transportation, telecommunication and renewable energy, while the Overseas segment viz. 'International Operations' caters to BHEL's worldwide operations. BHEL has over the years established its references in over 65 countries in all the six continents of the world. It has established 14 manufacturing divisions, 4 power sector regional centers, over 100 project sites, 8 service centers and 18 regional offices, across India and abroad. BHEL is one of the major power plant equipment suppliers in the world, and exports its products and services to several countries worldwide. BHEL is one of the few manufacturers in the world supplying almost the complete range of products, systems and services of power plants - a 'One Stop Power Solutions' provider.The overseas references of BHEL
encompass almost the entire range of BHEL products and services, covering thermal, hydro and gas-based EPC/turnkey power projects, substation projects, rehabilitation projects, specialised after-market services, besides a wide variety of products such as transformers, compressors, valves and oil field equipment, electrostatic precipitators, photovoltaic equipment, insulators, heat exchangers, switchgears, castings and forgings, etc. BHEL recorded a total turnover of US$ 3.27 billion in FY 2005-06, compared to US$ 2.37 billion in the previous year.The net profit generated by the company in FY 2005-06 stood at US$ 378 million, up by nearly 73 per cent over the previous year. The company also received its highest ever export orders worth US$ 753 million in FY 2005-06, which was a six-fold increase over that of the previous year. Currently, BHEL employs a workforce of approximately 42,600 personnel.
BHEL in the Arab World The Middle East and North Africa (MENA) region is the key export territory of BHEL, where it entered over three decades back.Today, it is firmly established in this market, having secured orders for a wide range of projects, products and services. BHEL has contributed in the power development of this region by executing a number of power projects and products for the core sectors of economy. During the last three decades, BHEL has contracted around 15 power projects in this region and a number of substations, rehabilitation,
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compressors and services projects, besides a wide variety of products such as transformers, switchgears, valves and oil field equipment, etc. BHEL has been focusing on enhancement of local skills by imparting training at its own works as well at sites and maximising the participation of local contracting and industrial base.
also carried out a turnkey project for a 42-MW power station at Jizan in Saudi Arabia.The success of this project resulted in the company receiving repeat orders for similar work, with the added responsibility of carrying out operation and maintenance of generation and transmission systems.
BHEL in Libya In Libya, BHEL entered three decades back by executing the 2x120-MW Tripoli West Thermal Power Project as well as a series of projects for rehabilitation and overhauling of power projects. Currently, BHEL is executing the 600-MW Western Mountain Gas Turbine based power project, one of the largest power plants in the country. BHEL's success in Libya has led to the formation of an Indo-Libyan company that focuses on power sector in Libya.
BHEL in Egypt BHEL has executed the boiler project for the 230-MW Al-Arish Power Station in Egypt. It has recently bagged two export orders for transformers from the Egyptian Electrical Transmission Company (EETC), Egypt.These orders valued at approximately US$ 31 million entail supply, installation and commissioning of transformers of nearly 3000 MVA capacity.
BHEL in Oman Since its entry in to Oman in 1995, BHEL has contracted seven prestigious power projects on EPC basis; from diverse sectors viz. utility power, oil and industrial sectors for their captive use. Out of these, BHEL has successfully completed five projects, and two projects (252 MW and 126 MW) are presently under execution. In addition, BHEL is currently executing orders for three compressor projects and supply of oil field equipment to the petroleum sector.The major customers of the company include Petroleum Development Oman (PDO), MHEW Oman, Oman Cement Company and Daleel Petroleum. Some of the plants set up by BHEL are completely unmanned power stations, which are capable of being operated from distant remote-controlled centres.
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BHEL in Saudi Arabia In Saudi Arabia, BHEL executed a 75-MW Gas Turbine based power project. In 1977, the company
BHEL in Sudan In 2006, BHEL has received a turnkey contract worth approximately US$ 457 million for setting up a 500-MW steam power plant in Sudan. This is the single largest export order received by the company and also the largest export order of any capital goods manufacturing company in India. In this project, the company will install four units of 125 MW each and crude oil-fired boilers at the Kosti Power Plant in Sudan. , BHEL in Iraq In Iraq, BHEL began its operations over two decades back, with a contract for a rehabilitation project. In the recent past, BHEL has executed three large-size gas turbine-based projects in Iraq. BHEL was probably the first company to reinstall a power generating plant in post-war Iraq. BHEL in Other Arab Countries BHEL has also supplied a diverse range of products in many other countries including the UAE, Kuwait and Jordan.
Success Factors
Future Plans
Meeting Global Market Expectations BHEL owes its widespread presence and success in the Arab world to its successful execution of a variety of complex projects, in addition to its fulfilling the technological, quality and other requirements of its customers. BHEL is capable of undertaking fast-track projects. It has demonstrated its ability to meet the needs of various sectors such as captive power, utility power generation and petroleum sector.The company also possesses the flexibility to work with and complement other international companies on large-scale projects.Thus, BHEL has been able to meet the varied demands of international markets. It has also been providing high-quality after-sales-service support to its customers.
Expanding Business The MENA region continues to contribute significantly to BHEL's important target in the export arena - supported by ongoing project offices in the UAE, Oman and Libya. BHEL is pursuing a number of opportunities to expand its presence in this region.
Growth via Technology The success of BHEL can also be attributed to its focus on developing innovative and reliable technologies.The company has filed over 340 patents so far. Out of this, 84 patents were filed during FY 2005-06, and 35 of them have been granted. BHEL invested approximately US$ 60 million in 2005-06 towards modernising its manufacturing technologies and acquiring the latest manufacturing facilities. Successful Initiatives BHEL offers a wide range of products and services. It has maintained its competitiveness in the global market by taking several initiatives such as designto-cost, purchasing and supply management, lean manufacture, IT effectiveness, structured product development, organisational focus on project deliveries, etc.This has strengthened the company's presence in the Arab world.
BHEL views MENA market as one of the best avenues for future growth. It is also scouting for overseas acquisitions. BHEL is positioning itself as a reliable and regular EPC contractor in the global market. It is also open to setting up strategic alliances.The company intends to extend its focus on areas such as power generation, and transmission and development (T&D). It is also looking to participate in overseas government-funded projects. Focus on R&D and Launching New Technologies BHEL invested US$ 34 million on R&D-related activities in 2005-06. It intends to focus on the development of new technologies. The company plans to set up Centres of Excellence for Surface Engineering (COE-SE) and for Intelligent Machines and Robotics (CIMAR). It is one of the few companies in the world working towards the development of Integrated Gasification Combined Cycle (IGCC) technology, that aids the development of clean coal technology. BHEL is focusing on the development of boilers with super-critical parameters.To meet the standards for new turbines in the Middle East and other markets, the company plans to introduce higher rating hydro turbine generator sets and gas turbines of an advanced class. It is focussing on emerging opportunities in nuclear power generation. 19
