STRATEGIC MANAGEMENT

COMPANYBHARAT HEAVY ELECTRICALS LIMITED

COMPANY PROFILE

The Engineering and Manufacturing backbone of India.

Leading International company in the field of Power Equipment Manufacture.

First Plant set up at Bhopal in 1956.

14 manufacturing units, 4 power sector regions, 8 service centers and 18 regional offices, project sites spread all over India and abroad.

Well recognized excellent track record of performance.

PRODUCTS

POWER PLANTS

EQUIPMENTS

INSTRUMENTS

OIL FIELD EQUIPMENTS

DISTRIBUTED CONTROL SYSTEMS.

VISIONA World-Class Engineering Enterprise

Committed to Enhancing Stakeholder Value.

MISSIONTo be an Indian Multinational Engineering

Enterprise providing Total Business Solutions through Quality Products, Systems and

Services in the fields of Energy, Industry, Transportation, Infrastructure and other

potential areas.

Orders Inflow.

Sales Annual Report: Segment wise Analysis

Objective: BHEL surges ahead on high-growth impetus.

R&D and Technology --- Product Driven.

Current Objective : To increase the turnover.

OLD PRODUCT NEW PRODUCT

OLD MARKET

NEW MARKET

Objective: BHEL surges ahead on high-growth impetus contd…

To comply with the vision.

SHAREHOLDERS Bonus shares, EVA.

EMPLOYEES Workshops, Awards, Appraisals, Opportunities. CUSTOMERS Continued Support to Customers.

To enhance the current manufacturing capacity of 10,000 MW p.a. to 15,000 MW p.a. by Dec.

To grow physical exports by six times the current size and to double the turnover to US $ 4 billion in 3 years.

To reach US $ 10 billion by 2011-12 ----- XIth Plan.

Blue Print for the Future

Generic Strategy

R&D spend is Rs.238 crore , 66% higher than the previous year.

A Strategic plan 2012 : focuses on capacity & capability enhancement .

XI Plan: To help enhance the precision and accuracy of performance Guarantee test sets, a instrument Calibration Centre has been established.

McKensie’s 7S

Company reporting to share holder.

High degree of disclosure and transparency.

Recognition of obligation towards all stakeholders

Accounting Records in accordance with the provisions of Companies AT 1956.

TRIPLE BOTTOM LINE.

Profit: Through Expansion

People: Social conscious organization.

Planet: Socio-Economic and Community development, UN’s Global Compact.

KEY DRIVERS

Manufacturing sector – Industrial growth

Exports – A six-fold increase in physical

exports.

Corporate Governance – Transparency

among the Company and its Investors,

Lenders, vendors and customers.

PEST SWOT ANALYSIS

S W O T

P

E

S

T

PEST SWOT ANALYSIS contd…

STRENGTH – ECONOMICAL : EVA

STRENGTH – TECHNOLOGICAL : Power Equipment major business, Instrument Calibration Centre.

WEAKNESS – POLITICAL : Licensing Restriction.

OPPORTUNITY – ECONOMICAL : XI & XII plan, GDP growth, Mergers and Acquisition.

OPPORTUNITY – TECHNOLOGICAL : Spares & service business.

THREAT – ECONOMICAL : Competition.

Our Understandings…..

R&D Driven

Clear Goals of achieving Market share -- Cost reduction.

Closeness -- Service and people.

Corporate Social Responsibility -- fruit in the long run.

Looking for opportunities -- Sales Driven.