x a usd 9 billion - bharat heavy electricals @ iif new york 24-25 sep1… · porcelain insulators...
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A USD 9 billion Engineering & ManufacturingA USD 9 billion Engineering & Manufacturing enterprise of its kind in India
A ‘Navaratna’ company and a Major Integrated Power Plant Equipment Manufacturer in the WorldPower Plant Equipment Manufacturer in the World
Profit Making Company since 1971‐72
Consistent Dividend Paying Company for over thirty years (FY 1976 77 onwards)years (FY 1976 ‐ 77 onwards)
References in over 75 countries
Installed base of more than 1,20,000 MW, ,
15 Manufacturing Units+ 2 Subsidiaries+ 7 JVs+ Infrastructure to deal with 150+ project sites
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Power IndustryOil & Gas
Transmission TransportationNCES (Solar)
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IVP, GOINDWAL HEEP, HARIDWAR
GOINDWAL
IVP, GOINDWALIndustrial Valves
TF, JHANSITransformers (Power & Special purpose), Diesel Electric Locomotives, El i L i
,Steam Turbine & Generators Hydro Turbine & GeneratorsGas TurbineCFFP, HARIDWARCasting & Forgings
RUDRAPUR
JAGDISHPURJHANSI
HARDWARHEP, BHOPALPower Transformer, Capacitor & Bushings, Switchgear, Industrial & Traction Control gear Heat
Electric LocomotivesCFP, RUDRAPURBus Ducts
IP, JAGDISHPURInsulators, CeralinCSU JAGDISHPUR
BHOPAL
Traction Control gear, Heat exchangers, Hydro Turbine & Generator, Industrial & Traction machines
EDN, BANGALORE
CSU, JAGDISHPURStampings
BHPV, VISAKHAPATNAM(100% Subsidiary)Process Plants, Ind Boiler, Cryogenics
HYDERABAD
Control equipment, Power Devices, PV panels EPD, BANGALOREInsulators & Bushings, CeralinESDN, BANGALOREDefence electronics
HPEP, HYDERABADGas Turbines and accessories, Switchgear, Industrial turbo sets, Pumps & Compressors, Bowl mills, Heaters & De aerators Oil Field
, , y g
VISAKHAPATNAM
BANGALORE
RANIPET
TRICHY
Heaters & De‐aerators, Oil Field Equipments
BAP, RANIPETFans, Electrostatic Precipitators, Air Pre‐
BHEL ELECTRICAL MACHINES LTD, KASARAGODProducts for Railways & Industries
KASARAGOD
heaters, Desalination plantsHPBP, TIRUCHIRAPPALLISteam Generators, HRSG, FBC, Valves SSTP, TIRUCHIRAPPALLISeamless Steel Tubes
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Insurance Cos 6 84%
Bodies Corp, 2.61%
Individuals, 2.98% Others, 0.65%
MFs, FI, Banks, 6.27%
Cos., 6.84%
President of
FIIs, 12.93%
President of India, 67.72%
( As on 30th Jun 2012)
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Turnover (Rs Crore)
4 43,337 49,510
50,000
60,00020%
1,401
28,033 34,154 4
30,000
40,000 41,299*
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10,000
20,000
0
FY08 FY09 FY10 FY11 FY12
* Excluding onetime impact of change in policy related to provisions for warranty obligations for earlier years
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Profitability PAT (Rs Crore)
011 7,040
7,000
8,000 24%
859
,138
4,311
6,0
4,000
5,000
6,000
,
5,665*
2,8 3,
1,000
2,000
3,000
,
0
FY08 FY09 FY10 FY11 FY12
* Excluding onetime impact of change in policy related to provisions for warranty obligations for earlier years
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Order Book (Rs Crore)Market Share*
270 59,678
59,037
60,507
60 000
70,000
Others31%
50,2
640,000
50,000
60,000 BHEL 69%
22,09
10 000
20,000
30,000
0
10,000
FY08 FY09 FY10 FY11 FY12
* Excluding NTPC and DVC’s bulk tender
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Performance up to Q1FY13
Rs Crore Q1FY13 Q1FY12 % Growth
Turnover 8,741 7,431 18%
PBT 1,335 1,182 13%
PAT 921 816 13%
Order Book 5,564 2,470 ‐‐‐
Project Comm. (MW) 2,250 1,275 ‐‐‐
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Sector Power Industry Exports Total
Order Book Q1 FY13
y pMW 1980 ‐‐ 990 2970
Rs Crore 3797 833 960 5564
M j O d R i dMajor Orders Received
Power Sector Industry Sector Exports• 1x500 MW TG & SG package
from NTPC Vindhyachal• 40 sets Traction Electrics for DEMU from
BEML Bangalore• EM package for 6x165
MWHydro Electricfrom NTPC Vindhyachal
• 2x660 MW TG package for DVC Raghunathpur
• 160 MW BTG package from RRVUNL R h CCPP St IV
BEML Bangalore
• 9x160 MVA, 220 kV Auto Transformers from RRVPNL
• 60 sets 25 kV AC EMU electrics from C t l R il
MW Hydro Electric project from Punatsangchu Hydro Project, Bhutan
RRVUNL Ramgarh CCPP Stg.IV
• ESP packages for NTPC Maudaand Sholapur projects
Central Railways
• Coal Handling Plant package from NTPC Meja
• 47 sets Power Converter with control electronics for CLW Chittaranjan
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A major manufacturer of power plantIndia’s Installed Capacity (Utility)
1,80,413 MW (31.03.12)A major manufacturer of power plant equipment for various fuelsFully indigenized technology up to 600 MW from world leaders
( )
BHEL, 59%
Others, 41%
from world leadersSupplied steam turbines, generators, boilers and matching auxiliaries up to 800 MW ratings including supercritical sets of 660/ 700/ 800 MW
India’s Generation Coal Sets (Utility)
6,12,880 million Units (2011‐12)700/ 800 MW346 coal based sets installed, including 58 sets of 500 MW rating376 nos BHEL make Hydro Utility sets
, , ( )
BHEL, 75%
Others, 25%
376 nos. BHEL make Hydro Utility sets installed in India
%
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OPERATIONAL AVAILABILITY
PLANT LOAD FACTOR
AUXILIARY POWER
CONSUMPTION
FORCED OUTAGES
Source: CEA Review of Performance of Thermal Power Stations 2010‐11
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Performance of 400‐599 MW Sets* Performance of 200‐299 MW Sets*
84.85%
70 22%
91.12%86.56% 86.51% 89.22%
81.15%70.22%
66.56%
10.30% 4.95%5.94% 2.94%
Operating Plant Load Planned Forced
9.04% 4.45%6.07% 4.71%
Operating Plant Load Planned Forced Availability
(OA)Factor (PLF) Maintenance Outages
due to Equip.Availability
(OA)Factor (PLF) Maintenance Outages
due to Equip.
NERC b t i (N th A i C d E t) BHEL S tNERC member countries (North America, Canada, Europe part) BHEL Sets
* Average performance of thermal sets during 20062010; Source: North American Electric Reliability Council (NERC); 2010
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XI Fi Y Pl XII Fi Y Pl & B d
Orders placed by Indian Utilities for benefit during… MW, % Share
Other Foreign7150
BHEL54775
XI Five Year Plan* XII Five Year Plan & Beyond#
71506%
5477546%
ChiChinese3650531% Other
Indians2002717%17%
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# Total ordered as on 19 Sep’12: 1,18,457 MW* As per mid‐term assessment
State
Power Sector Orders Received in FY11 Power Sector Orders Received in FY12
State129511%
IPP
State5971
IPP439137%
Central607652%
IPP768051%
40%
52%
Central14209%
Our product attributesLower Auxiliary Power Consumption
Boiler Efficiency
Lower Design Heat Rate
Our business attributesProduct Quality
Execution Capability
Service Reliability
Lower Life Cycle Cost
Better PLFEngineering Excellence
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TransmissionContribution to total Turnover: 22‐28%
Transmission7‐9%
• Transformers• Switchgear• Indl. Control Gear / Control Panels• Capacitors• Insulators
Transportation3‐5%
Other Industrial
• HVDC/ Transmission Projects etc
Transportation
• Traction machines• Traction Control gears
DESLOther Industrial Products12‐15%
• DESL• AC Locos / DG Sets / etc
Other Industrial Products
• Industrial Machines• Indl. TG / Boiler Sets/• Compressors• Oil Field Equipment• Valves etc
FY 2010‐11
FY 2009‐10
FY 2008‐09FY 2008 09
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Expenditure towards R&D Turnover from in‐house developed products
2.46%2.43% 2.42%
2.40%
2.45%
2.50%
1600
1800
2000
20%19%
18%20%
20%
25%
14000
16000
18000
690829
1005
1199
2 17%
2.32%
2 20%
2.25%
2.30%
2.35%
800
1000
1200
1400
63347810
983213%
10%
15%
8000
10000
12000
464
6902.17%
2.05%
2.10%
2.15%
2.20%
200
400
600
800
2719
55706334
5%
10%
2000
4000
6000
2.00%0
FY08 FY09 FY10 FY11 FY12
R&D Spend (Rs Cr) R&D % TO
0%0
FY08 FY09 FY10 FY11 FY12
Commercialization (Rs Cr) Comm % TO
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270/300/ 525/600 MW sub critical sets
Products DevelopmentIntroduced Supercritical Technology with Technology
Supercritical Domain270/300/ 525/600 MW sub‐critical sets introduced
Advance Class Gas Turbines tech in place
765 & 1200 KV UHVAC Transformer developed
Introduced Supercritical Technology with Technology tie‐ups with Alstom (Boiler), Siemens (TG) & MHI (Pumps)
Rapid technology absorption in partnerships with customersdeveloped
IGCC development
Transportation‐IGBT technology being pursued
customers
Supercritical Orders’ basket 18 TGs and 18 SGs:
2X660 MW Barh (SG & TG)3X660 MW Bara (SG & TG)
Sole supplier in world for 420 kN/320 kNporcelain insulators for ±800 kV HVDC lines
2X800 MW Krishnapatnam (SG)2X800 MW Yermarus (SG & TG)1X800 MW Edlapur (SG & TG)1X700 MW Bellary #3 KPCL (EPC)
We are slated to play a key role in RDD&D in India's first coal fired Advanced Ultra
2x660 MW NTPC Bulk Tender, Mauda (SG & TG)3x660 MW Bajaj Hindustan, Lalitpur (SG & TG)2x660 MW DVC, Raghunathpur (TG)2x660 MW DB Power, Singrauli (SG & TG)
India s first coal fired Advanced Ultra Supercritical (AUSC) power plant in association with Indira Gandhi Centre for Atomic Research (IGCAR) and NTPC.
AUSC: 5% more efficiency; 12% savings in coal; Less GHG emissions
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20000Manufacturing Capacity Expansion
15000 MW
20000 MW
Acquired BHPV Vizag as 100% subsidiary in 2008. Slated to enhance our capabilities in
March 2010 March 2012
Inorganic Growth
design, fabrication, supply and erection of custom built process plant equipments. Process of merger with BHEL initiated.
BHEL Electrical Machines Ltd. (JVC between BHEL & KEL (Kasargod)/ GoK) for manufacturing of products for Railways and Industries Strategic move to enhance ourmanufacturing of products for Railways and Industries. Strategic move to enhance our presence in Transportation, Industrial and Renewable Energy Sectors.
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Bridging Skill Deficit
Skill enhancement at ITIs in JV/PPP mode: Kabiguru (WB), Latur (Mah), Bajpur (UP), Peramvalur(TN), Khandwa & Khaknar (MP), Haridwar (Uttranchal) …
Leveraging WRI Trichy to train high pressure welders
Extensive training to Act Apprentices & CustomersExtensive training to Act Apprentices & Customers
Lateral/ Campus/ Special/ FTA Recruitment
Retired Specialists as Consultants, Re‐Employment
Greater empowerment of Project Managers
Deploying additional Tools & Plants like heavy cranes suitable for erection of sets up to 800 MW.
Site Capability Enhancement
p y g y p
Total Cranes as on March 2012: 128
Several process improvements to reduce PI to PO conversion time
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Vendor Base 766 new Vendors added in 2011‐12 & Vendor base is more than 20,000. Expansion Procurement Office opened in Shanghai, China
AMA Advanced Manufacturing Action for long lead items
TCA Technology Collaboration Agreement with Sheffield Forgemasters UK for large size forgings (up to 1000 MW)
IT e‐Procurement , Reverse Auction (~32%) , ( )
Rate Contracts
Long term Rate Contracts for Steel, Copper, CRGO, Transformer Oil(contribution to total purchase ~20%)
Outsourcing Enhanced thrust is being given for outsourcing of low tech/ non‐core manufacturing
ACF ‘Away Center Fabrication’ adopted by Trichy & Ranipet Units
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Strategic Alliance with BEL for formation of JV for setting up manufacturing facility (250 MW) for silicon wafers, solar cells & modules
Solar
facility (250 MW) for silicon wafers, solar cells & modules
Joint Working Arrangement with Abengoa Spain for Concentrated Solar Power Plant (CSP)
Steam turbine generators for new rating 700 MWe Nuclear sets –orders received
Tripartite JV with NPCIL & Alstom for conventional island of Nuclear Projects for 700 MWe & above
MoU with GE‐Hitachi for cooperation in Nuclear island equipment for Power
Nuclear
p q pplants to be set up by NPCIL
T&D Breakthrough order from PGCIL for the world's first + 800 kV 6,000 MW UHV gMulti‐Terminal DC Transmission Link between North‐East and Agra, in consortium with ABB, Sweden
Developed 765 kV & 1200 kV transformers & reactors. Breakthrough orders received from Private sector for 765 kV transformers & reactors.
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Strategic tie‐up for participating in the tender for 486 Coaches of DMRC ph‐III and pursue with IR for awarding Kanchrapara factory for EMU/Metro coaches on
Transportationpursue with IR for awarding Kanchrapara factory for EMU/Metro coaches on nomination basis.
Breakthrough orders for State‐of‐the‐art propulsion equipment for 6000 HP Electric Locomotives and 1400 HP AC EMUs (IGBT based)
Executing an order for 150 numbers of 5,000 HP 25 kV AC Mainline Electric Locomotives
Water Manufacturing Associate Agreement with GE India Industrial Private Limited (GEIIPL) f W t T t t E i t
Executing an order for 150 numbers of 5,000 HP 25 kV AC Mainline Electric Locomotives (Type WAG ‐7) for Indian Railways.
(GEIIPL), for Water Treatment Equipment.
BHEL will be able to provide more cost‐effective membrane‐based water treatment systems for power plants and industrial sector for all type of input water like sea water, brackish water and waste water.
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Rs 1,01,600 Cr
Utility Power Plants Rs 45,000 Cr
Captive Power Plants Turnover
1
2
2016‐172011‐12Spares & Services
Transmission
3
4 Transmission
Transportation
d i l d
4
5
Industrial Products
Renewable Energy
6
7
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Water8
6
▪ Timely investments Pl d & l bl
▪ Performance & Potential alignment of new inductees with Company’s Challenges
▪ Leadership Development
1
5
‐Planned & scalable
▪ Inorganic Growth
▪ Investment in R&D▪ Ab ti f
▪ Technical/ Functional Competency Development
Engineerin Capability
People Develop‐ment
▪ Supply Chain Agility
▪ Skill Enhancement
▪ Effective Site
▪ Absorption of Supercritical Technology
▪ Fast‐track Technology & Product Development for IGCC, 765/ 1200 kV
Engineering &
Technology
Capability Enhan‐cement
BHEL2
4
Engineering & Technology
Effective Site Management & Information Systems
▪ U d P d t R i
GCC, 65/ 00Transmission and so on
Accelerated Project Execution
Diversifi‐cation
BHEL
3 ▪ Operations Improvement – Lean, DTC, PSM
▪ Upgrade Product Range in Thermal, Gas & Hydro Generation
▪ Nuclear power, Transmission, Transp
ExecutionProduct Cost
Competiti‐veness &
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• Global Sourcing, Indigenization• Zero Quality Issues in Products & Erection
po e , a s ss o , a sportation, Renewable Energy, Water
Quality
Statements in this “presentation” describing the company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indiancould make a difference to the company s operations include global and Indian demand supply conditions, finished goods prices, cyclical demand and pricing in the company’s principal markets, changes in government regulations, tax regimes, economic developments within India and the countries within which h d b d h f h l d l bthe company conducts business and other factors such as litigation and labournegotiations. The company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.
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p , f ,
Thanks!
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