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Project Report
on

Market Research
BHEL

Bhopal

(1st -28th July 2010)

Submitted

In the partial fulfillment of

the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by:
Miss. Ritika Sapra
906

Under the guidance of

Industry Guide Faculty Guide

Mr. S.K. Das Mr.Tarun Ghosh

Sr. DGM (IMS) Professor

BHEL, Bhopal. IGBS, Pune.

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Acknowledgement

A summer project is a golden opportunity for learning and self development. I consider
myself very lucky and honored to have so many wonderful people lead me through in
completion of this project.

My grateful thanks to Mr. S.K. Das, Sr. DGM (IMS) BHEL, Bhopal who in
spite of being extraordinarily busy with his duties, took time out to hear, guide and keep
me on the correct path. I do not know where I would have been without him. A humble
‘Thank you’ Sir.

Prof. Tarun Ghosh whose patience I have probably tested to the limit. He
was always so involved in the entire process, shared his knowledge, and encouraged me
to think. Thank you, Dear Sir.

In the end, I would like to thank BHEL Bhopal again for giving me an
environment and an opportunity to pursue my project work, because of which I was able
to successfully complete my projects. It has really enhanced my knowledge and
empowered me to appreciate management learning in a more fruitful manner.

Ritika Sapra

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Executive summary……………………………………………………………………….. 5
1 Company profile……………………………………………………………………………7
2 Product profile…………………………………………………………………………….8
2.1 Industrial Electrical Machines…………………………………………………..8
2.2 Vertical A.C. Motors……………………………………………………………..9
2.3 High voltage slipring induction motors………………………………………...10
2.4 AC Motors & Alternators………………………………………………………..10
2.5 Thermal Power Plant……………………………………………………………11
2.6 Gas Based Power Plants………………………………………………………11
2.7 Hydro Power Plants…………………………………………………………….12
2.8 DG Power Plants……………………………………………………………….12
2.9 Industrial Sets…………………………………………………………………..12
2.10 Boilers……………………………………………………………………………12
2.10.1Boiler Auxiliaries………………………………………………………...13
2.10.2 Fan……………………………………………………………………….13
2.10.3 Air-Pre-heaters…………………………………………………………13
2.10.4 Gravimetric Feeders…………………………………………………..13
2.10.5 Pulverizes………………………………………………………………13
2.10.6 Pulse Jet and Reverse Air Type Fabric Filters (Bag Filters)………13
2.10.7 Electrostatic Precipitators…………………………………………….13
2.10.8 Mechanical Separators………………………………………………..14
2.10.9 Soot Blowers……………………………………………………………14
2.10.10 Valves…………………………………………………………..14

2.11 Heat Exchangers and Pressure Vessels …………………………………..14

2.12 Pumps…………………………………………………………………………..14

2.13 Power Station Control Equipment……………………………………………14

2.14 Switchgears…………………………………………………………………….14

2.15 Bus Ducts ………………………………………………………………………15

2.16 Transformers…………………………………………………………………..15

2.17 Insulators……………………………………………………………………….15
2.18 Capacitors………………………………………………………………………15

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2.19 Energy Meters………………………………………………………………….15

2.20 Compressor……………………………………………………………………16
2.21 Silicon Rectifiers……………………………………………………………….16
2.22 Oil Field Equipment……………………………………………………………16
2.23 Seamless Steel Tubes………………………………………………………..16
2.24 Transportation Equipment……………………………………………………17
2.25 Thyristor Equipment…………………………………………………………..17
3 Flow Chart……………………………………………………………………….17
4 Competitors……………………………………………………………………...19
5 Recent Investment………………………………………………………………19
6 Future Plans……………………………………………………………………..20
7 Expected performance………………………………………………………….21
8 Major Customers…………………………………………………………………23
9

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Executive Summary

The objective of the study is to analyze the actual market research in BHEL and to
evaluate how far this process confirms to the purposes underlying the operational
aspects of the industry. How far the process is accepted by it? The study on research
highlights the need of market in BHEL. Human resource is a most valuable asset in the
Organization. Profitability of the Organization depends on its utilization. If their utilization
is done properly Organization will make profit otherwise it will make loss.
To do a good research in a proper market BHEL needs right man at right place in right
time. This information is obtained through a proper research. BHEL procure manpower in
a very scientific manner.

BHEL covers a wide area of business through which research is done in a wide area.
These areas are mentioned below.

Power:
Provide a gamut of equipment for Thermal, Hydro and Nuclear Power Plants.
Range includes products and systems for the power generation, transmission and
utilization.

Transmission:
BHEL is manufacturing transmission equipments for all voltage rating including the
400 KV class transformers switch gears, control and relay panel, insulators, capacitors
and other substation equipments.

Industry:
Offers a comprehensive range of electrical, electronic and mechanical equipment for a
host of industries fertilizers, petrochemicals, refineries, paper, sugar, rubber, cement,
coal, steel, aluminum and mining.

Transportation:
BHEL offers a variety of transportation equipment to meet the growing needs of country.
65% of Indian Railways are equipped with BHEL manufactured traction equipment.

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Underground metro also runs on drives and control supplied by BHEL.BHEL has taken
up the manufacturing of locomotive to provide a pollution free transportation. BHEL also
offers a battery operated passenger van to Delhi Government.

Oil and Gas:

Equipment for oil and gas exploration and transportation is manufactured by BHEL.
The range covers super deep drill rigs with matching draw works and hosting equipment.

Non Conventional:
BHEL is playing a vital role in helping to harness the vest renewable sources of solar,
wind and biogas energy. BHEL has supplied several water heating system, windmills
generators and photo voltaic system.

Tele Communication:
BHEL has entered the field of telecom with electronics PABX system based on
indigenous technology from C-DOT.

Manufacturing Technologies:
BHEL has 14 manufacturing plants, which are spread different parts of the country
having unique manufacturing and testing facilities, CNC machines, turbine blade shape
system, system bener, 8000-ton hydraulic press, heavy-duty lathe mailing machines and
many more are available.

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1.1 Company profile

BHEL is the largest engineering and manufacturing enterprise in India in the energy-
related/infrastructure sector, today. BHEL was established more than 40 years ago,
ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that
has been more than realized with a well-recognized track record of performance. The
company has been earning profits continuously since 1971-72 and paying dividends
since 1976-77. BHEL manufactures over 180 products under 30 major product groups
and caters to core sectors of the Indian Economy viz., Power Generation &
Transmission, Industry, Transportation, Renewable Energy, etc. BHEL has acquired
certifications to Quality Management Systems (ISO 9001), Environmental Management
Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS
18001) and is also well on its journey towards Total Quality Management.

Heavy Electrical Plant, Bhopal is the mother plant of Bharat Heavy Electricals Limited,
the largest engineering and manufacturing enterprise in India in the energy-related and
infrastructure sector, today. BHEL, Bhopal with state-of-the-art facilities, manufactures
wide range of electrical equipments. Its product range includes Hydro, Steam, Marine &
Nuclear Turbines, Heat Exchangers, Hydro & Turbo Generators, Transformers,
Switchgears, Control gears, Transportation Equipment, Capacitors, Bushings, Electrical
Motors, Rectifiers, Oil Drilling Rig Equipments and Diesel Generating sets.

Vision
A world class engineering enterprise committed to enhancing to stakeholder value.

Mission

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To be an Indian multinational engineering enterprise providing total business solutions

through quality products, system and services in the field of energy, industry,
transportation, infrastructure and other potential areas.

Values
i. Zeal to excel and zest for change.
ii. Integrity and fairness in all matters.
iii. Respect for dignity and potential of individuals.
iv. Strict adherence to commitments.
v. Ensure speed of response.
vi. Foster learning, creativity and team work.
vii. Loyalty and pride in the company.

1.2 COMPANY'S BUSINESS MISSION AND

OBJECTIVES
BUSINESS MISSION
To maintain a leading position as suppliers of quality equipment, systems and services in
the field of conversion of energy, for application in the areas of electric power
transportation, oil and gas exploration and industries. Utilize company's capabilities and
resources to expand business into allied areas and other priority sectors of the economy
like defence, telecommunications and electronics.

 BUSINESS OBJECTIVES

GROWTH:
To ensure a steady growth by enhancing the competitive edge of BHEL defence,
telecommunication and electronics in existing business, new areas and international
operations so as to fulfill national expectations from BHEL.

PROFITABILITY:
To provide a reasonable and adequate return on capital employed, primarily through
improvements in operational efficiency, capacity utilization, productivity and generate
adequate internal resources to finance the company's growth.

CUSTOMER FOCUS:

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To build a high degree of customer confidence by providing increased value for his
money through international standards of product quality, performance and superior
services.

PEOPLE- ORIENTATION:
To enable each employee to achieve his potential, improve his capabilities, perceive his
role and responsibilities and participate and contribute positively to the growth and
success of the company and to invest in human resources continuously and be alive to
their needs.

TECHNOLOGY:
Achieve technological excellence in operations by development of indigenous
technologies and efficient absorption and adaptations of imported technologies to suit
business need and priorities and provide the competitive advantage to the company.

IMAGE:
To fulfill the expectations which stakeholders like government as owner, employees,
customers and the country at large have from BHEL.

1.3 Product profile

Bharat Heavy Electricals Limited (BHEL) is, today, a name to reckon with in the industrial
world. BHEL is close to its customers and cater to their specialized needs with total
solutions - efficiently and economically. BHEL is truly India’s industrial ambassador to the
world.

1.3.1 Industrial Electrical Machines

AC squirrel cage, slipring, synchronous motors, industrial alternators and DC machines

are manufactured as per range summarized below. Special-purpose machines are
manufactured on request.

AC Machines for Safe Area Application

       Induction Motors

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       Squirrel cage 150 to 35000 kW

       Synchronous motors 200 to 15000 kW
       Variable-Frequency drives 500 to 17500 kW
       Synchronous motors 1000 to 17500 kW
       Induction motors  200 to 35000 kW

AC Machines for Hazardous Area Application

Flame-proof motors (Ex. 'D') 150 to 1600 kW
       Pressurized (Ex 'P') 150 kW and above
       Non-sparking (Ex. 'N') Variable Speed
       Non-sparking (Ex. 'N')
Synchronous and Squirrel
       Increased safety (Ex 'E')
Cage

DC Machines
       Mill Duty 3.5 to 186 kW
       Medium/Large 100 to 12000 kW

Industrial Alternators
Steam turbine, gas turbine and diesel engine driven from
2000 kVA to 60,000 kVA... 
Voltage & Enclosure
       Voltage AC - 415 V to 13800 V
       Enclosure SPDP, CACW, CACA

1.3.2 Vertical A.C. Motors (power rating)

Series-‘7’ (type of construction V10)

Enclosure : TETV/TEFC, SPDP, CACA and CACW

Voltage : 3.3, 6.6 0r 11KV

Synchronous speed : 3000, 1500, 1000, 750, 600, 500, 428, 375, 300,
250RPM
(Corresponding to 50HZ. frequency)

Range of power ratings (KW) :170 to 6000KW

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Features
i. Robut construction and vibrostable frames.
ii. Shaft height and mounting dimensions to IEC and IS standards.
iii. Dust protected long life bearings.
iv. Dynamically balanced rotors.
v. Magnetic shipped completely assembled for quick and easy installation.
vi. Low noise levels with means for further reduction.

1.3.3 High voltage slipring induction motors

BHEL has supplied slipring induction motors for various applications in cement plants,
rubber plants, paper plants, material handling projects, rolling mills, irrigation projects,
pumping projects, etc. BHEL motors are designed making use of latest computer aided
techniques which ensure optimum design parameters. Need based variations in design
are done to meet specific requirement of the customer.

Features

i. Robust, corrosion proof stainless steel sliprings ensuring negligible wear.

ii. Uniform cooling inside and therefore no hot spots.
iii. Low noise levels with means for further reduction.
iv. Low vibration level as per category good of ISO:10816
v. Magnetic slot seals for high efficiency, high power factor and low noise.
vi. Large sized, phase segregated terminal boxes to permit easy cable connections.

1.3.4 AC Motors & Alternators

BHEL is a leading AC Machines manufacturer and in the last four decades have
supplied more than 20000 HT & LT A.C. Machines for various applications to Indian as

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well as Export market. The applications include Power Plants, Nuclear Energy,
Petrochemicals, Fertilizers, Refineries, Cement & Steel Industries, Irrigation Projects,
Pipelines, etc. the manufacturing plant in Bhopal was established in technical
collaboration with AEI UK. Commercial production of A.C. Machines commenced in the
year 1963. Technology was upgraded by collaborating with Siemens AG, Germany
from 1980-1990 and subsequently from 1996-2006. High performance is achieved
through optimum utilization of the active materials and components .

 Our engineers combine their extensive experience with state-of-the-art analytical

design tools, latest machine tools, Six Sigma methodology and advanced material
development to deliver the best product.

 Installed Capacity: 1500 machines per annual.

 Capacity being augmented to manufacture 2500 machines per annum by the
year 2012.

 Annual Sales Turnover: US$ 100 Million

Features

i. Advanced insulation system.

ii. High efficiency.
iii. Slot wedges.
iv. Amply sized terminal boxes.
v. Application oriented design of motors.
vi. Low noise level.
vii. Low vibration levels.

1.3.5 Thermal Power Plant

Steam turbines and generators of up to 500MW capacity for utility and combined-cycle
applications; capability to manufacture steam turbines with super critical steam cycle
parameters and matching generator up to 1000 MW unit size.

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1.3.6 Gas Based Power Plants

Gas turbines of up to 260MW (ISO) rating. Gas turbine based co-generation and
combined-cycle systems for industry and utility applications.

1.3.7 Hydro Power Plants

Custom-built conventional hydro turbines of Kaplan, Francis and Pelton types with
matching generators, pump turbines with matching motor-generators. Mini/micro hydro
sets. Spherical, butterfly and rotary valves and auxiliaries for hydro station.

1.3.8 DG Power Plants

HSD, LDO, FO, LSHS, natural-gas/biogas based diesel power plants, unit rating up to
20MW and voltage up to 11kV, for emergency, peaking as well as base load
operations on turnkey basis.

1.3.9 Industrial Sets

Industrial turbo-sets of ratings from 1.5 to 120MW.Gas turbines land matching

generators ranging from 3 to 260MW (ISO) rating. Industrial stream turbines and gas
turbines for drive applications and co-generation applications.

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1.3.10 Boilers

Steam generators for utilities, ranging from 30 to 500MW capacity, using coal, lignite,
oil, natural gas or a combination of these fuels: capability to manufacture boilers with
super critical parameters up to 1000 MW unit size. Steam generators for industrial
applications, ranging from 40 to 450t/hour capacity using coal, natural gas, industrial
gases, biomass, lignite, oil, bagasse or a combination of these fuels.

1.3.10.1 Boiler Auxiliaries

1.3.10.2 Fan

Axial reaction fans of single stage and double stage for clean air application, with
capacity ranging from 25 to 800m3/s and pressure ranging from 120 to 1,480 m of gas
column. Axial impulse fans for both clean air and flue gas applications, with capacity
ranging from 7 to 600m3/s and pressure up to 700 m of gas column.

1.3.10.3 Air-Pre-heaters

Ljungstrom rotary regenerative air-pre-heaters for boiler and process furnaces. Large
regenerative air-preheaters for utilities of capacity up to 1000 MW.

1.3.10.4 Gravimetric Feeders

1.3.10.5 Pulverizes

Bowl mills of slow and medium speed of capacity up to 100 t/hour. Tube mills for
pulverizing low-grade coal with high-ash content.

1.3.10.6 Pulse Jet and Reverse Air Type Fabric Filters (Bag Filters)

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1.3.10.7 Electrostatic Precipitators

Electrostatic precipitators of any capacity with efficiency up to 99.9% for utility and
industrial applications.

1.3.10.8 Mechanical Separators

1.3.10.9 Soot Blowers

Long retractable soot blowers (travel up to 12.2m), wall deslaggers, rotary blowers and
temperature probes and related control panels operating on pneumatic, electric or
manual mode. Swivel arm type soot blowers for regenerative air-preheaters.

1.3.10.10 Valves

High-pressure and low-pressure bypass valves for utilities. High and medium-pressure
valves cast and forged steel valves of gate, globe, and non-return (swing-check and
piston lift-check) types for steam, and oil and gas duties up to 600 mm diameter, 250
kg /cm2 pressure and 540oC temperature.

1.3.11 Heat Exchangers and Pressure Vessels

CS/AS/SS/Nonferrous shell and tube heat exchangers and pressure vessels. Air-cooled
heat exchangers. Surface condensers.

1.3.12 Pumps

Pumps for various applications to suit utilities up to a capacity of 660 MW. Boiler feed
pumps (motor or steam turbine driven).

1.3.13 Power Station Control Equipment

Microprocessor-based distributed digital control systems. Data acquisition systems. Man-

machine interface. Sub-station controls with SCADA.

1.3.14 Switchgears

Switchgear of the various types for indoor and outdoor applications and voltage ratings
up to 400 kV. Minimum oil circuit breakers (66K – 132kV). SF6 circuit breakers (132 kV –
400 kV).

1.3.15 Bus Ducts

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Bus-ducts with associated equipment to suit generator power output of utilities of up to

500 MW capacities.

1.3.16 Transformers

Power transformers for voltage up to 400 kV. HVDC transformers and reactors up to +
500 kV rating. Series and shunt reactors of up to 400 kV rating.

1.3.17 Insulators

High-tension ceramic insulators. Disc/suspension insulators for AC/DC applications,

ranging from 45 to 400 kn electro-mechanical strength, for clean and pollute
atmospheres. Pin insulators of up to 33 kV.

1.3.18 Capacitors

Power capacitors for industrial and power systems of up to 250 kVAr rating for
application up to 400 kV. Coupling/CVT capacitors for voltages up to 400 kV.

1.3.19 Compressor

Centrifugal compressors of varying sizes, driven by steam turbine/gas turbine/motor, for

industrial applications handling almost all types of gases; range covers pressure up to
800 kg/cm2 and capacity up to 350,000 Nm3/hour.

1.3.20 Silicon Rectifiers

Silicon power rectifiers with matching transformers for industrial applications like
aluminum/copper/zinc smelting, for electrolysis in chemical industry and AC/DC traction
application.

1.3.21 Transportation Equipment

AC Electric locomotive. AC-DC Dual Voltage Electric locomotive. Diesel-Electric

Shunting locomotive. Diesel Hydraulic Shunting locomotive. OHE Recording cum Test
Car. Electric Traction Equipment (for diesel/electric locos electric multiple units, diesel
multiple units and urban transportation systems).

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1.4 Flow chart
Receiving of tender doc/tender
enquiry from customer through
industry sector.
Submission of eng. Drawing
(OGA), QAP data sheet to
customer on receipt for eng
dept.
Approval of eng. Drawing (OGA),
data sheet and QAP from
customer.
Receipt of test report from eng.
Dept for customer.
Preparation of work order
partIII (shipping) and asking
for road permit from
customer if required.
906
After getting preliminary design
from eng. Dept. submission of
quotation to industry sector.
Work order numbering and
preparation of WO part I
(technical)
PartII (financial).
Submission of doc to AME and it
gives clearance for manufacturing of
machine in IMM/LEM shop.
Liaison for type test of machine
on test bed in presence of
customer.
Packing/dispatch of machine after
predispatch checks in warehouse
and getting dispatch clearance from
customer.
Collection of payment as per terms
Market Research
and C form from customer for
concession.
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Letter of intent followed by
purchase order from customer/
through industry sector.
Internal order from industry
sector having technical
specifications, terms and
conditions.
Internal testing (routine test) of
machine on test bbd on
completion of manufacturing.
Inspection call to customer.
Submission of dispatch document
i.e. commercial and excise invoice,
DAN, L/R, packing list, bank,
guarantee, test report.
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2 Competitors:
Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

BHEL 2,393.55 117,169.06 26,858.63 3,138.21 13,088.18

Larsen 1,822.15 109,729.04 37,034.80 4,375.52 19,015.72

Suzlon Energy 58.80 10,374.06 3,508.93 -1,414.09 13,909.80

BGR Energy 745.15 5,365.08 3,073.78 201.02 1,268.94

BEML 1,001.25 4,169.66 2,797.17 268.84 2,483.03

AIA Engineering 371.45 3,503.53 819.24 122.56 685.86

Alfa Laval 1,468.45 2,666.78 887.57 123.34 382.07

Praj Industries 81.45 1,504.70 603.12 113.89 532.35

Shriram EPC 266.55 1,170.52 1,119.02 44.66 644.97

TRF 871.45 958.98 531.66 45.53 177.39

3 Recent Investment

I. BHEL is planning an investment of Rs 7.36 billion to increase the capacity of its

manufacturing plant at Trichy in Tamil Nadu by 2009. The company is increasing its
manufacturing capacity to 15,000 MW per annum by 2009. After this, production capacity
for manufacturing thermal and nuclear boilers would go up to 4, 81,000 million tons from
a capacity of 1, 08,000 million tons prior to commencement of the expansion program.

II. BHEL bagged a mega contract for setting up 2 units of 500 MW each at Anpara D
Thermal Power Station (TPS) in Uttar Pradesh. The order is valued at Rs 33,900 million.
The units, ordered by Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL), are
scheduled for commissioning in 2011-12.

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III. BHEL has maintained its growth momentum into the third quarter of 2009‐10 also.
The orders booked up to the third quarter have been Rs.36, 425 crores aggregating to
about 14,990 megawatts. In fact, we have booked around Rs.16, 000 crores worth of
orders in the third quarter alone. In power sector up to third quarter, we have booked
total orders worth Rs.28425 crores equivalent to 12479 megawatts.

4 FUTURE PLANS
I. As a part of forward integration strategy the company plans to enter into the
power distribution business. The company already manufactures product required by the
distribution systems like transformers, switchgears etc.

II. BHEL has announced that it will launch a B2B portal, keeping in mind its core
competency-power systems. As per the company announcement it could take them four
23 to six month to announce the location of its new business. The company is planning
towards becoming an application service provider. The company will continue to focus
on project management reducing cycle time and cost control.

III. BHEL would also put additional emphasis on spares and service business for
hydro and thermal plants.

IV. BHEL is introducing a number of new products like 3-phase traction electric and
advance class gas turbines in the Indian market.

V. BHEL is planning to enter new business in integrated gasification combined cycle

system, coal washeries and LRT systems.

VI. The company will continue to focus on product development in order to foster its
growth
VII. strategy. New products are expected to contribute 46% of its total turnover. The
VIII. electronics division has frayed into traction business and received a large order
from Dot
IX. for switching equipment for 0.25mm lines.

X. The Industrial System Group has bagged orders from BWSSB for water
pumping stations (Cauvery Stage IV), funded by Japan Bank for international
cooperation. The electro porcelains division is now manufacturing HVDC disk insulator
and its catalytic converter has also passed the entire test.

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5 BHEL’s Expected Performance for the year 2010-

11

Gross Sales (Turnover) (Rs. Millions) 380,000

Gross Margin (Rs. Millions) 81,200

PBDIT to Total Employment (Rs. Millions) 1.740

Gross Margin to Gross Block (%) 92.02

Gross Profit to Capital Employed (at year 45.71

end) (%)
Net Profit to Net Worth (at year end) (%) 25.64

Added Value to Gross Sales (%) 17.03

Further, a stretch Turnover target of Rs. 395,000 Millions has been fixed under
'Excellent' rating.

Y/E March FY2008 FY2009 FY2010E FY2011E

( Rs cr)
Net Sales 19,305 26,234 32,416 39,110
% chg 12.0 35.9 23.6 20.7

Net Profit 2,860 3,138 4,180 5,157

% chg 18.5 9.7 33.2 23.4

Operating 17.0 14.5 17.4 17.9

EBITDA (%)
EPS (Rs) 58.4 64.1 85.4 105.3

Source: business-standard.com

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Net Sales of BHEL

45,000

40,000

35,000

30,000

25,000 Net Sales

20,000

15,000

10,000

5,000

0
FY 08 FY 09 FY 10E FY 11E

Net Profit of BHEL

6000

5000

4000
Net Profit of BHEL

3000

2000

1000

0
FY 08 FY 09 FY 10E FY 11E

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BHOPAL - Bharat Heavy Electricals Limited (BHEL) Bhopal has achieved a turnover of

Rs.3, 708 crore in fiscal 2009-2010 as against Rs.3, 308 crore in the previous year,
registering an increase of 12 percent, said an official Saturday.

Executive Director M.K. Dube told media persons that the unit also earned an amount of
Rs.602 crore as profit before tax, which is 21 percent more than the previous year’s profit
of Rs.498 crore.

6 OUR MAJOR CUSTOMERS

M/s. Lakshmi Machine Works, Coimbatore

M/s. Larsen & Turbo Ltd., Bangalore.

M/s. Cimmco Ltd, Bharatpur.

M/s. Beacon Weir & Several others.

M/s. Bharath Earth Movers Ltd, Bangalore.

M/s. Vijay Engineering Works, Jaysingpur.

M/s. Chetan Industries, Solapur.

M/s. Premier Filters Pvt. Ltd., Solapur.

M/s. Metacut Engineering, Indore.

TECHNOLOGY UPGRADATION, RESEARCH &

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DEVELOPMEMT

To remain competitive and to meet customer's expectations, BHEL lays great emphasis
on the continuous up gradation of the products and related technologies, and
development of new products. The company has upgraded its products to contemporary
levels through continuous in – house efforts as well as through acquisition of new
technologies from leading engineering organization of the world.

BHEL'S investment in R & D is amongst the largest in the corporate sector in India.
Products developed in - house during the last five years contributed over 7% to the
revenues in 2004 - 05. BHEL has introduced , in the recent past , several state - of – the
– art products ; low - NOx oil / gas burners , large capacity atmospheric fluidized bed
combustion boilers , high - efficiency pelton hydro turbines , petroleum deport automation
systems , 36 KV gas - insulated sub – station , controlled shunt reactors ( CSR ) and
performance analysis , diagnostics and optimization ( PADO ) package for power plants ,
etc. The company has also transferred a few technologies developed in - house to other
Indian companies for commercialization.

The company is also engaged in research in futuristic areas, such as applications of

super conducting materials in power generation and industry, and fuel cells distributed,
environment – friendly power generation.

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Projected Power Demand (GW)

1400
1207
1200
Installed
1000 Capacity
785
800 Projected
Peak
GW 600 510
Source: IEP, Table 2.5 Demand
Installed 331
400 Capacity, 215
132
200
0
2007 2012 2017 2022 2027 2032
Year

Increase in
demand by 54%
in every 5-year
Plan
Source: IEP, Table 2.5

CEA Conclave on Key Inputs – 2009

Summary of 12th Plan Capacity Addition Requirement- 1, 00,000 MW

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Hydro; 2000000%; 20%

Nuclear
Hydro
Thermal

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OBJECTIVE OF THE STUDY

In BHEL the recruitment policy spells out the objective and provides a framework for
implementation of the recruitment programmed in the form of procedures. The company involves
a commitment to broad principles such as filling vacancies with best qualified individuals. The
recruitment policy in a company may embrace spell issue such as the
extent of promotion from within, attitudes of enterprise in recruiting old, handicapped and minor
individuals, minority group members, part time employees and relatives of present employees.

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In a company BHEL, there usually a staff unit attached with personnel or an industrial relations
department designated as employment or recruitment office. This specialization of recruitment
enables staff personnel to become highly skilled in recruitment techniques and their evaluation.
However, recruitment remains the line responsibility as far as the personnel requisition forms are
originated by the personnel, who has the final words in the acceptance or rejection of a particular
applicant. Despite this the staff personnel have adequate freedom in respect of sources of
manpower to be tapped and the procedure to be followed for this purpose.

SCOPE AND IMPORTANCE OF THE STUDY

SCOPE
1. To structure the Recruitment policy of BHEL for different categories of employees.
2. To analyze the recruitment policy of the organization.
3. To compare the Recruitment policy with general policy.
4. To provide a systematic recruitment process.
5. It extends to the whole Organization. It covers corporate office, sites and works
appointments all over India.
6. It covers workers, Clerical Staff, Officers, Jr. Management, Middle Management and
Senior Management cadres.

IMPORTANCE
Without focusing the pattern of management, organization philosophy highlights on
achieving a surely where all citizens (employees) can lead a richer and fuller life. Every
organization, therefore, strikes for greater productivity, elimination of wastes, lower costs
and higher wages, so the industry needs a stable and energetic labors force that can
boast of production by increased productivity. To achieve these objectives a good
recruitment & selection process is essential. By which industry strikes right number of
persons and right kind of persons at the right time and at right places through and the
planning period without hampering productivity.

DATA COLLECTION
A sample size of 20 employees is studied for this purpose. Employees of different unit
where randomly administrated the questionnaire.

DATA ANNAYSIS

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The analysis of data was done on the basis of unit, age and number of years of
experience and factors. Analysis was done using the simple average method so that,
finding of the survey was easily comprehensible by all.

SOURCES OF DATA COLLECTION:

The primary as well as the secondary sources was used for collection of data. In primary
source of data collection the interview schedule and questionnaire and opinion survey
were used and in secondary source of data collection relevant records, books, diary and
magazines were used. Thus the sources of data collection were as follows:

PRIMARY SECONDARY
1. Interview schedule 1. Diary
2. Questionnaire 2. Books
3. Opinion Survey 3. Magazines
4. Other records

I have used structural interview schedule, questionnaire and opinion survey for collection
of data from primary source. Interview schedules were used for workers clerical,
category and questionnaires were used for supervisory and executive cadre and opinion
survey was used to know the technology, perceptions, thoughts and reactions of the
executives, employees/workers and trade union members of the organization.
I have used the secondary source like diary, books, magazines and other relevant
records for collection of data to know about the industry as well as the respondent.

DATA TYPE
Primary as well as secondary data was collected.

RESEARCH APPROACH
Conducting a field survey did a subjective assessment of the qualitative data. The
research method used was that of questionnaire & interview for primary data & an
extensive literature survey for secondary data.

RESEARCH INSTRUMENT
The questionnaire was used as the primary instrument for the collection of primary data
which contained open-ended questions to chance response. In addition the personal
interview method was employed to draw out answers to subjective questions, which
could not be adequately answered through the use of questionnaire.

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Preparing the questionnaire

The first task in the process of measuring the level of recruitment of the candidates in
BHEL was to prepare questionnaire. For this purpose a number of questionnaire we
studied and finally a questionnaire where framed.

The questions where grouped under five categories:

1. Company related
2. Environment related
3. Supervision related
4. Growth related

Questionnaire consists of the following things:

 Which focused on the employee awareness levels regarding benefits provided
which & outside the organization & assessing his overall satisfaction level. This
prepared ground for further enquiry & enabled better analysis of the questions,
which followed.
 Which focused on specific policies & judged them from different aspects making
the questionnaire in–depth & specific?
 Which consisted of open-ended question, inviting views & suggestions from the
respondents?

INTERVIEW
Interviews lead to a better insight to subjective & open questions almost all interviewees
responded.
SAMPLE UNIT
The sample unit consisted of all the departments of BHEL.

SAMPLE FRAME
Consisted of a comprehensive list of all the employees of BHEL.

SAMPLE SIZE
Sample size=20 out of universe of 500.

SAMPLE DESIGN

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Care was taken to choose the sample based on considerations like age, sex & work
experience of respondents thus enabling better representations of the heterogeneous
population. However, the sample design was that of “convenience sampling” or
“haphazard sampling” only. The time consideration & size of population were major
factors in determining choice of sample design.

TRAINING METHODOLOGY
Training methodology is a way to systematically solve the research problem. In it, we study
various steps that are adopted by a researcher. Why a research study has been undertaken, how the
research problem has been defined, in what way and why the hypothesis has been formulated,
what data have been collected and what particular method has been adopted, why particular
technique of analyzing data has been used and a host of similar other questions are usually
answered when we talk of training methodology concerning a study.

TRAINING DESIGN
The type of research plan I have used for my research work is descriptive research.
Descriptive research design is also known as explanatory design. Descriptive research
may focus on individual subjects and go into great depth and detail in describing them.
This is the one that simply describes something about the company. Descriptive study
can be considered more rigid and formal. A descriptive study requires a specification of
aspects of the research. It requires formulation of more specific hypothesis and testing
these through statistical techniques.

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