EXECUTIVE SUMMARY

The MBA course offered by the Visvesvaraya Technological University has its own unique syllabus which
requires its MBA students to undertake an internship with any of the leading business houses for a period of
weeks during the end of the second semester. The purpose of the internship is to enable the students to
appreciate and understand the nuances of the practical world via-a-via the theoretical input administered
during the academic sessions. This helps in creating managers who are equipped with the experience of
linking the theoretical inputs with those of practical exposure and come out with creative solutions and ideas
in enhancing the business. In partial fulfillment of MBA degree of Visvesvaraya Technological University I
took up an organization study at Sunil Agro Foods Pvt Ltd , for a period of four weeks.

The objective is to learn about the working of a company. The practical aspects was studied and compared
with the theoretical aspects learnt in the course. The study involves visiting the various departments of the
organization to learn about their structure and their functions. The incorporation, background, vision and
mission of the company were briefed by the Administrative department. The work flow model was briefed
before the visit to the production unit. The product profile was collected by visiting the departmental outlet.
The study was more emphasized on 7S McKinsey’s Model and the SWOT analysis of the company. The
study provides a good exposure to the corporate world and a good comparison of the practical and
theoretical aspects as studied in the course.
 INDUSTRY PROFILE

OVERVIEW OF THE INDUSTRY

The food industry is a complex, global collective of diverse businesses that together supply much of the
food energy consumed by the world population. Only subsistence farmers, those who survive on what they
grow, can be considered outside of the scope of the modern food industry.

As it exists today, the domestic food industry is a very competitive and mature industry with little
domestic growth. Increases in a company’s market share usually come at the expense of a competitor’s loss
of market share (cannibalization). Overall most growth comes from international expansion. With the
passage of NAFTA and GATT, many domestic companies are either entering into alliances with foreign
entities, or acquiring them. There are many reasons for this. For example, much domestic food company
wants to take advantage of existing distribution systems, or underutilized plant capacity. Some acquisitions
may be motivated by Federal income tax considerations.

From the time that agriculture began about 7,000 years ago to the present there have been many important
developments that are responsible for the state of the industry as it is today.

NATURE OF INDUSTRY
Heavy Electrical Industry deals with manufacture of turbo generators, boilers, various types of
turbines, transformers, switchgears and other allied items. Majority of the products
manufactured by Heavy Electrical Industry in the country include items like transformers,
switchgears etc. are used by all sectors of the Indian economy. Some major areas where these
are used are the multi core projects for power generation including nuclear power stations,
petrochemical complexes, chemical plants, integrated steel plants, non-ferrous metal units.

GROWTH POTENTIAL
 Domestic demand: to sustain the envisaged annual GDP growth rate of around 8-9% over
the next 20 years, it has been estimated that India will require to increase its electricity
generation capacity by around five times by 2032.
 Rapid growth in metros, airports and other infrastructure projects is expected to generate
huge demand for matching BTG and T&D equipment.
 External demand: currently, share of India’s exports in the global market is less than 1
percent. With the electricity sector being a sunrise sector across the entire developing
world, there exists a significant export potential for the domestic industry.
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ECONOMICAL FACTORS
The government has exempted 35 machine parts from basic custom duty in order to
boost mobile handset production in the country.
The government of India has reduced the income tax rate to 25 percent for all companies
having a turnover of up to Rs250 crore.
Timely delivery of equipment: lack of manufacturing capacity for BTG equipment has,
in the past, impacted equipment delivery timelines, in turn affecting project execution
timelines.
Land acquisition: Legal and environmental complications, making availability of land
for setting up power plants a major challenge.
Indian players will need to scout globally for inexpensive sources of funds, as rising
inflation is resulting in the rising cost of funds in India.

COMPETITORS’ ANALYSIS
Major competitors are: -
Suzlon-
Suzlon Energy Ltd is a wind turbine supplier in Pune, India. This company is a vertically
integrated wind power company. It makes and installs wind turbines, and manufactures blades,
generators, panels, and tower in-house. Suzlon has fifteen manufacturing facilities and a
workforce of over 8000 employees globally that might be a strength to the company.
L&T-
L&T has a strong brand name. This company offers turnkey solutions for both coal and
gas-based power plants. It manufactures and supplies custom designed equipment & critical
piping to process industries such as fertilizer, chemical, refinery, petrochemical & oil & gas.
It is one of India’s leading companies for supply of Defence Equipment and Systems in
private sector, with over 30 years of experience in this field. It has high technical expertise.
It has a strong financial position when compared to other companies

BEML. –
BEML (Bharat Earth Movers) is an Indian Public Sector Undertaking, with headquarters
in Bengaluru. It manufactures a variety of heavy equipment, such as that used for earth moving,
transport and mining. It has excellent manufacturing facilities. It has a huge nationwide sale
centres’ print. The company has manufacturing plants in Kolar Gold Fields, Bengaluru,
Palakkad and Mysore.
It also manufactures high power diesel engines and heavy duty hydraulic aggregates to
meet specific customer requirements. It has also diversified into vehicles, logistics and other
solutions based operations which is the strength of the company. Whereas coming to the
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weakness is that it doesn’t allow room for capital expansion and some of its units are not
performing as well as industry.

MARKET SHARE

BHEL has retained its market leadership position with 74% market share in the power sector.
Electrical equipment industry

GOVERNMENTAL REGULATIONS
With effect from 19th July 2012, the government has imposed import duties at the rate
of 5% basic customs duty, 12% countervailing duty and 4% special additional duty,
along with cess as applicable, on import of equipment for ultra-mega power plants
/mega power plants.
Local taxes, duties, octroi, etc. paid by Indian manufacturer, may be added to the final
price of the imported equipment in order to bring it at par with bids from Indian
manufacturers.
COMPANY PROFILE
OF BHEL
BACKGROUND AND INCEPTION OF BHEL

BHEL was established in 1964. It belongs to the indigenous Heavy Electrical Equipment
industry in India. Heavy Electricals (India) Limited was merged with BHEL in 1974. In 1991,
BHEL was converted into a public limited company. Over time, it developed the capability to
produce a variety of electrical, electronic and mechanical equipment’s for all sectors, including
transmission, transportation, oil and gas and allied industries.
In 1992, between January to February the company disinvested 489,52,000 equity shares
of Rs10 each. During the year 10 thermal sets, 2 gas sets and 11 hydro sets were commissioned.
During the year first commercial HUDC transmission line in the country between Rihand and
Delhi rated for transmission power at 500KV at 1500MW was respectively completed
However, the bulk of the revenue of the company is derived from sale of equipment for power
generation such as turbines, boilers, etc. As of 2017, BHEL supplied equipment contributed to
about 55% of the total installed power generation capacity of India. The company has also
supplied thousands of Electric Locomotives to Indian Railway, as well as defence equipment
such as the Super Rapid Gun Mount (SRGM) naval guns manufactured in partnership with the
Indian Ordnance Factories and Defence Simulators to the Indian Armed Forces.

PROMOTERS INFORMATION

Type Holding
Promoter 63.17
MF 5.83
FII 12.13
Other Institutions 12.99
Individual 5.88
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Shareholding pattern

Promoter MF FII Other Institution individual

NATURE OF BUSINESS CARRIED

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,
Telecommunication, Renewable Energy, etc. The wide network of BHEL’s 17 manufacturing
divisions, four Power Sector regional centres, over 100 project sites, eight service centres and
15 regional offices, enables the company to promptly serve its customers and provide them
with suitable products, systems and services efficiently and at competitive prices. The high
level of quality and reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best
technologies from leading companies in the world, together with technologies developed in its
own R&D centres.
BHEL is also engaged in exporting its power and industry segment products and services
for over 40 years. BHEL’s global references are spread across over 76 countries across all the
six continents of the world. The cumulative overseas installed capacity of BHEL manufactured
power plants exceeds 9000 MW across 21 countries including Malaysia, Oman, Iraq, UAE,
Bhutan, Egypt and New Zealand. Their physical exports range from turnkey projects to after
sales services.
Captive Power projects: Supplies Steam Turbine and Gas Turbine based Captive Power
Plants
 Transmission: Execution of EHV & UHV substations ranging from 132 kV to 765 kV
& HVDC converter stations up to ±800 kV, power transformers, shunt reactors, vacuum
& SF6 switchgear, gas insulated switchgears, ceramic insulators, etc.
Transportation: Manufactures IGBT based propulsion equipment (traction converter/
auxiliary converter/VCU), 25 kV AC locos, EMU coaches and diesel electric locos upto
1400 HP
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Renewables: EPC solutions from concept to commissioning for grid connected and
standalone PV applications ranging from kW to MW sized plants, space grade solar
panels and space grade batteries
Water: Turnkey solutions for water treatment systems including Pre Treatment plants
(PT), Seawater Reverse Osmosis (SWRO) plants, Demineralization (DM) plants, RO
plants for industrial applications, Waste Water/ Effluent Treatment plants (WWTP)/
(ETP), Sewage Treatment plants (STP) and Zero Liquid Discharge (ZLD) systems
Industrial products (Electrical & Mechanical): Range of industrial products including
oil rigs, wellheads & Xmas tree valves, fabricated equipment & boiler feed pumps,
compressors & AC machines
Defence: Supplier of strategic equipment to Indian defence forces including Super
Rapid Gun Mount & Integrated Platform Management System for naval Ships, Thermo
pressed components, Heat exchangers for LCA , Turret castings for T72 tanks, casting

VISION, MISSION AND QUALITY POLICY

VISION
A global engineering enterprise providing solutions for a better tomorrow.

MISSION
Providing sustainable business solutions in the fields of Energy, Industry &Infrastructure

QUALITY POLICY
In its quest to be a Global Engineering Enterprise and to provide solutions for a better tomorrow
in the field of Energy, Industry & Infrastructure, BHEL pursues Continual Improvement in the
Quality of its Products & Services that comply to applicable requirements through
Commitment, Innovation and Team Work of all Employees leading to Customer Delight.

ACHIEVEMENTS/ AWARDS
Bharat Heavy Electricals Limited has been ranked the Ninth Most Innovative Company
in the world by the renowned US business magazine Forbes in 2011
BHEL wins ICWAI National Awards for Excellence in Cost Management for the sixth
consecutive year, maximum number of awards conferred on BHEL among public and
private sector companies.
 BHEL’s Innovativeness gets Global Recognition, Forbes ranks BHEL at No.9 in the
list of the World’s 100 most innovative companies.
BHEL gets Golden Peacock Award 2011 for Occupational Health and Safety.
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 2010- BHEL bags EEPC’S Top Export Award for the 20th consecutive year.
BHEL wins MoU Excellence Award for the year 2006-07 for the highest growth rate
in Market capitalization
 BHEL has installed equipment for over 90000 MW of power generation – for utilities,
captive and Industrial users.
Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission and Distribution network up to 400 KV
Supplied over 25,000 motors with Drive Control System to Power Projects,
Petrochemicals, Refineries, Steel, Aluminium, Fertilizer, Cement plants.
Supplied Traction electrics and AC/DC locos to power over 12,000kms Railway
network.
Supplied over one million valves to Power plants and Industries.

PRODUCT/ SERVICE PROFILE

Power sector- BHEL is the largest manufacturer of Power generation equipment in
India, supplying wide range of products & systems for thermal, nuclear, gas and hydro-
based utility and captive power plants. BHEL supplies turbines, generators, boilers and
matching auxiliaries up to 800 MW ratings, including sets of 660/700/800 MW based
on supercritical technology.
Transportation- BHEL provides electrical propulsion systems, controls and rolling
stocks of various capacities to Indian Railways. The range of products offered in
railway transportation include traction motors, traction generators/alternators,
transformers, substation equipment, vacuum circuit breakers, locomotive bogies,
smoothening reactors, exciters, converters inverters, choppers and associated control
equipment viz., master controllers, brake and door equipment, electronic controls
including software based controls extending to rolling stock and other transport
applications.
Renewable Energy- The company has commissioned nearly 2 MW SPV plants at
various Islands of Lakshadweep, besides commissioning a 5MW SPV plant for KPCL
at Mandya, Karnataka.
Oil & Gas- BHEL possesses expertise to design, manufacture and service various types
of onshore rigs to suit the Indian service conditions. BHEL supplies onshore drilling
rig equipment like draw-works, rotary-table, travelling block, swivel, mast and sub-
structure, mud systems and rig electrics to leading oil and natural gas exploration
companies of India.
Transmission- BHEL has made remarkable presence in the field of power transmission
in India with a wide range of transmission systems and products. The products
manufactured by BHEL include Power transformers, Instrument transformers, Dry
type transformers, Shunt reactors, Vacuum and SF6 switchgear and Ceramic
insulators.
 AREA OF OPERATION
BHEL is owned and founded by Government of India.
It operates globally and serves the entire world.

FUTURE GROWTH AND PROSPECTS

 The company embarked on the journey of “Creating BHEL of tomorrow” with the
objective of enhancing responsiveness to emerging opportunities and building new
levels of robustness, thereby laying the foundation for a sustainably rising BHEL.
The immediate and utmost priority is maintaining profitable growth through
expeditious execution of orders, efficient resource utilization through consolidation and
enhancing speed of response through simplification of systems and processes.
The company is building new sources of strength for sustained growth by strengthening
its leadership in core business and developing people and digital capabilities.
The company continues to focus on globalisation and its targeting large projects in the
overseas market.
 Focus on innovation is a key driver of the company’s growth strategy. BHEL has taken
up in-house development of important technologies in mission mode including
Advanced Ultra Supercritical Technology, Coal to Methanol.
 The company is targeting to move from 100% village electrification to 100%
households’ electrification along with other competitors.
 The nine elements – ECS, ADD, GDI, together named as Nine Elements for Executing
Vision, are integral part of strategic plan “The Road to 2022” of BHEL.

BHEL EDN
The Electronics Division (EDN) of BHEL was formed in 1976, mainly to establish a strong
base in the areas of power and industrial electronics and supplement the company’s pioneering
efforts in power generation, transmission, industry and transportation.
Electronics Division has also been making pioneering efforts in Renewable Energy Sector
by commissioning Large-size Grid-interactive as well as Stand-Alone Solar Power Plants, thus
lighting the lives of people living in remote parts of the country. The unit has also been making
humble contribution to Indian Space Programmes by fabricating Space Grade Solar Panels and
Space Quality Batteries for ISRO.
 PART B
MC KINSEY’S 7S
MC KINSEY’S 7S FRAME WORK
This management model was developed in the late 1970’s by Tom Peter and Robert Waterman,
former consultants at Mc Kinsey & Company. This was a strategic vision for groups, to include
businesses, business units, and teams. The 7Ss are structure, strategy, systems, skills, style,
staff and shared values.
The three hard elements are strategy, structure (such as organisation charts and reporting lines)
and systems (such as formal processes and IT systems). These are easy to identify and
management can influence them directly.

The four soft elements can be harder to describe, less tangible, and more influenced by any
company culture. But they are just as important as the hard elements if the organisation is going
to be successful.
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STRUCTURE OF BHEL EDN

Divisional Unit Head (Executive Director)- Shri C Ananda

Different Departments :-

Marketing Department
Marketing department of BHEL is divided as corporate marketing division and
separate marketing division for each unit.
The main function of unit marketing department is to form a pricing strategy that are
competitive and profitable.
The corporate marketing are responsible to get the project from the customer. Once
the projects are given to BHEL, the project is splited and handover to respective unit
marketing departments.
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Once the marketing department gets the order it handover the order to the project
management and commercial control department.
The marketing department acts as the input for the project management and
commercial department and gives full details about the project regarding product and
place
The projects are obtained by the marketing department by the open tenders, MoU
agreements between India and other nations and by the strategic alliance.

Assistant general manager

(marketing)

Deputy GM Deputy GM Deputy GM

Utility power Hydro power Energy saving

Export SCADA Transportation
PADO Transmission

Finance Department: -
Finance department of BHEL is divided as corporate finance division and separate
finance division for each unit. The corporate finance division makes the centralized
balance sheet by computing all business transaction of individual unit and groups.
Individual unit like BHEL EDN maintains book, budgets for the whole unit.

Different departments in Finance: -

Costing- The main function of costing is to calculate the material cost and production
cost, monitoring inventory, monitoring of work in progress, reporting for short
shipments, reports on profitability of project. Costing department also looks after the
calculation of royalty for budgets, inspection of marketing proposal and also provides
SAP support to other section in the department.
Sales- Sales section looks after the billing of shops, service and freight, looking after
the LC documents and collection accounts, SEBI budget flash, advice to service tax,
statutory government audits.
Indirect taxation- The functions of Indirect taxation is calculation of CGST, SGST
and IGST. It pays the tax directly to the government after deducting the input tax
credit.
Purchase finance- Purchase Finance deals with Finance Concurrence of all Purchase
Files. Purchase Requisition/ Material Requirement summary are verified with the
Final proposal quantity.
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Foreign purchase- Foreign purchase section looks after the letter of credit and checks
the terms and condition of purchase department. It also looks after the payment of air
freight, console charges, local clearance charges, local freight, bank charges etc.,
Apart from the above activities it also maintains the bank guarantee, fund requirement
for foreign purchase and export procedures.
Indigenous bills- The type of bills handled in the indigenous section are shop bills,
bills of material directly dispatched to customer, freight bills of purchase materials.
The other activities of indigenous bill section is to do creditors review, advanced
review, TDS certification issues.
Works and Service bills- This department deals with all the service bills and payment
to contract workers. It also deals with payment to maintenance works like
maintenance of lifts, AC etc.,

General Manager (finance)

AGM

Sr. Deputy GM

DGM

Sr. Manager

Manager

Deputy Manager Deputy Manager Deputy Manager Deputy

Manager
Indigenous Bills Import Bills Works and Sales
Service bills

Supervisors Supervisors Supervisors Supervisors

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Production Department
The production department manufactures the control equipment for the power plant
equipments. The production department is facilitated with automated CNC machines.
The production department is divided into production planning control, control
equipments fabrication, main assembly, system testing.

Departments in Production: -
Production Planning Control- This department receives the design documents from
the engineering department and prepares the production plan. The PPC prepares
complete production plan that matches the L2 schedule made by the project
management and commercials department.
Assembly Line- The production line has tree assembly line namely shell assembly,
mechanical assembly, wiring assembly. In the shell assembly the outer part of the
control equipment is manufactured it consist of the mounting racks of the control
equipment components. In the mechanical assembly the components like control
boards, fans and other circuits are mounted racks of the control equipment shell.

GM Operation

AGM CE Production

Sr. DGM PPC Sr. DGM CE Sr. DGM Main AGM System
Fabrication Assembly testing

Executives DGM DGM

Supervisors Shop Shop

Engineers engineers

Supervisors Supervisors

System Testing Department

System testing department check the operation of finished goods. It also conducts the
functional test by integrating with other systems and stimulates the control
equipments. System testing receives engineering drawings, circuit diagrams, signal
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flow diagram from the engineering department and conducts various tests like
continuity test, high voltage test and functional test.

Continuity test- In the continuity test the connection of the control equipments and
check for ferules and check the connections with respective ports. While checking the
continuity test the connection between the ports are checked and the buzzer is given if
the continuity is not correct this test avoids the short circuit in the control equipment.
Another major function of this test is to check the ferule to avoid the misconnection.

High Voltage Test- In the High voltage test the components are grouped according to
voltage like 24v, 110v, 220v etc., This test is performed to ensure the correct current
connection during operation of the control equipments.
Functional test- The functional test is also called as energizing the panel. This
functional test involves two activity i.e., routine test and type test or special test. In
the routine test the working of the modules and different components of the control
equipments are checked for outputs by giving inputs. The routine test also involves
the integration of all the hardware. It is also logical testing with the help of the
software for the desired output.

Engineering Department

The Engineering Department prepares technical offer and estimates and submits to
commercial for submission of overall offer. The tender enquiry number will be
allotted by the Commercial department and that number is quoted while submitting
technical offer and estimates for proper linkages.
The Engineering department will be preparing the complete details of the product
which is required for their production like design of the product, size, colour, their
warranty period, the scope of supply etc., when no such requirements is asked by the
customer.
Preparing the requirements is called technical bid and this technical bid will be used
by the commercial department to negotiate the price with the customers. If there is
any modification, then they will prepare an updated technical bid.

Project Management and Commercial Department

Project management and commercials department function is to mainly coordinate

with all the projects after the marketing department gives their consent for the same.
once the project is finalized they will call for the meeting and start negotiation and
then they finalize the L1 and for the L1 network. In the L1 network the PMC specify
time limits like commencing of project, starting of engineering works, erection of
power plants etc.,
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STRATEGY
Pricing Strategy- BHEL faces competition from Chinese imports who try to capture
the market by reducing the prices. According to the comparison made by keeping in
mind cost BHEL would charge 2.6 crore per MW when compared to Chinese
manufacturer would charge 1.6 crore. BHEL has tried to reduce material cost by
integrating operations and increased efficiency. The company is expanding its vendor
base to reduce risk and cost.
BHEL secured orders worth Rs.43000+ crores during 2015-16 in which Rs.38000+
crore came from the power sector. Recognition of sales revenue is done on technical
estimates in respect of long production cycle.

Diversification Strategies: -
Strategic Alliance with BEL for formation of JV for setting up manufacturing facility
(250 MW) for silicon wafers, solar cells & modules
Joint Working Arrangement with Abengoa Spain for concentrated Solar Power Plant.

Growth Strategy- Internet of Things presents an opportunity to move beyond

equipment monitoring for power plants, and use data for lowering the cost of generation
by enabling operational optimization, asset performance management and downtime
reduction.

SYSTEM
The requirement will be given by the production department like they should provide
the details about the product, their specification, colour, size, quality, quantity etc.,
The material management department prepares the requirement list which is provided
by the production department. The same requirement list will be sent to the vendors.
The product will be purchased through the tender. The tender may be closed or open
based on the time of requirement. Open tender means the requirement will be published
in the newspaper whereas closed may be the requirement list will be given to the certain
vendors.
Once the vendor receives the requirement list, they should quote the price which will
be convenient to them by keeping in mind the cost and profit. They can submit their
quotation in person or they can send it through mail before the given date.
Then the costing department calculates which vendor quotes the least price and then
select L1. After the L1 is selected the project management department arranges for a
negotiation with the vendor who quotes the least price, to further reduce the price. Then
the L1 will be finalized.
The company purchases the product from the vendor and makes payment to the vendor.
The vendor has to provide 10% or some % which is mentioned in the purchase policy,
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as bank guarantee with the bank which is specified in the company policy. Sometimes
they can select two vendors L1 and L2 where majority of the order will be given to L1

STYLE
 BHEL follows democratic leadership style. Democratic leadership is a leadership style
where the leader makes decisions based on the input of each team member. Although
he/she makes the final call, each employee has an equal say on a project’s direction. It
allows the low-level employees to exercise authority.
In BHEL, in case of policies forming and any rules, the decisions will be taken by the
top management and that should be implemented by the employees. This may sound as
the management is following autocratic leadership style but the departmental decisions
will be taken by taking suggestions from the employees.
So it may be the combination of autocratic and democratic leadership style. As BHEL
is a PSU (Public Sector Undertaking) majority of the decisions will be taken by the
Government of India.

SKILL
BHEL has highly skilled employees. The Human Resource Department helps in not
only keeping their skills updated but also helps in developing new skills, whenever
required.
The company conducts continuous training to the employees to keep their skills
updated. The training will be both in-house training and off the job training. When they
join the company, the employees will be trained about the company products, what they
manufacture and the company policies and will be taken to the power plant visit to
enhance their knowledge about the company.
The employees will also be trained in the course of the work. The senior employees
will train the junior employees about the working of the department and their policies.
If they find any gap in the skills, then they will arrange for any external person to train
them.
BHEL has also employed trainees and their training period will be for 1 year. They will
also be trained about the working of the department and they will be assisting the
employees in their work.

SHARED VALUES
 Governance- We are stewards of our shareholders’ investments and we take that
responsibility very seriously. We are accountable and responsible for delivery superior
results that make a difference in the lives of the people we touch.
Respect- We value the unique contribution of each individual. We believe in respect
for human dignity and we respect the need to preserve the environment around us.
 Excellence- We are committed to deliver and demonstrate excellence in whatever we
do
Loyalty- We are loyal to our customers, to our company and to each other.
Integrity- We work with highest ethical standards and demonstrate a behaviour that is
honest, decent, and fair. We are dedicated to the highest levels of personal and
institutional integrity.
Commitment- We set high performance standards for ourselves as individuals and our
teams. We honour our commitments in a timely manner.
Innovation- We constantly support development of newer technologies, products,
improved processes, better services and management practices.
Team Work- We work together as a team to provide the best solutions & services to
our customers. Through quality relationships with all stakeholders, we deliver value to
our customers.

STAFF
BHEL considers employees as their asset. It has highly skilled employees.
The employees will be selected based on the examination conducted on All India level
by the company.
The employees who pass the exam will have to attend an interview conducted by the
company and he/she has to go through that and then the employee will be selected to
work in the organisation.
The employees can also be selected through campus recruitment.
Most of the employees are highly qualified. In finance department, to become an
executive he/she has to be qualified in ICWA i.e., CMA or CA or CS.
Trainees need to have completed with their B.COM degree to get selected.
 PART – C
SWOT ANALYSIS
SWOT ANALYSIS
SWOT analysis is a strategic planning technique used to help a person or organisation identify
strengths, weaknesses, opportunities and threats related to business competition or project
planning. It is intended to specify the objectives of the business venture or project and identify
the internal and external factors that are favourable and unfavourable to achieving those
objectives.

STRENGTHS
Strong engineering base and stable industrial relationship
Good corporate image
Market dominance in the Indian Power Sector
Strong relationship with NTPC is strength as 85% of NTPC projects have been bagged
by BHEL
A Govt. of India undertaking
High job security
Brand image
Huge customer base in domestic business leading to major presence and influence in
the market

WEAKNESSES
PSU status is a big weakness for BHEL as it is subject to their rules and regulations and
is forced to carry a huge amount of labour force
Financing capability
Offers very stringent credit facilities to the customers
Government interference
Rigid methods
 Union’s intervention
Resistance to change
 Payment to vendors take too long as the funds have to be allocated by the corporate
office which is in Delhi
Low exposure to the needs and dynamics of distribution business

OPPORTUNITIES
There is a huge demand of power and BHEL is expected to grow further in the future
days
Export opportunities
Increase in defence budget will increase the production in the company
The business of modernization and renovations of power plants is expected to grow in
India
High market potential
The company is autonomy when compared with other companies

THREATS
Emergence of new competitors
Consolidation in the industry have reduced the turnover of BHEL
Age factor of employees
Foreign competitors engaged in rapid
No preference for PSU.
 PART-D

FINANCIAL STATEMENT WITH RATIO ANALYSIS

RATIO ANALYSIS

A ratio analysis is a quantitative analysis of information contained in a company’s financial

statements. ratio analysis is used to evaluate various aspects of a company’s operating and
financial performance such as its efficiency, liquidity, profitability and solvency.

1. Liquidity Ratio
A. Current Ratio
It is the ratio which expresses the relationship between Current assets and Current Liabilities.
Current ratio is a liquidity ratio that measures a company’s ability to pay short-term obligations
or those due within one year. It tells investors and analysts how a company can maximize the
current assets on its balance sheet to satisfy its current debt and other payables.

Current Ratio = Current Assets/ Current Liabilities

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Table showing current ratio

YEARS CURRENT ASSETS CURRENT CURRENT RATIO
(in crores) LIABILITIES
(in crores)
2014-2015 46137.86 23281.09 1.98

2015-2016 42118.26 21895.17 1.92

2016-2017 39939.73 19653.30 2.03

2017-2018 40321.43 22425.01 1.79

2018-2019 27626.40 22523.41 1.22

GRAPH SHOWING CURRENT RATIO

Current liabilities
46137.86

42118.26

40321.43
39939.73

27626.4
23281.09

22523.41
22425.01
21895.17

19653.3
1.98

1.92

2.03

1.79

1.22

2 0 1 4 - 15 2 0 1 5 - 16 2 0 16 - 17 2 0 17 - 18 2 0 18 - 19
[Type here]

B. LIQUID RATIO
LIQUID RATIO = Cash + Marketable Securities + Accounts Receivable
Current Liabilities

Table showing Liquid Ratio

YEARS LIQUID ASSETS CURRENT LIQUID RATIO
(in crores) LIABILITIES (in
crores)
2014-2015 36036.2 23281.09 1.54

2015-2016 32516.11 21895.17 1.48

2016-2017 32567.35 19653.3 1.65

2017-2018 34062.67 22425.01 1.51

2018-2019 19512.91 22523.41 0.86

GRAPH SHOWING LIQUID RATIO

Current liabilities
36036.2

34062.67
32567.35
32516.11
23281.09

22523.41
22425.01
21895.17

19512.91
19653.3
1.54

1.48

1.65

1.51

0.86

2 0 1 4 - 15 2 0 1 5 - 16 2 0 16 - 17 2 0 17 - 18 2 0 18 - 19
[Type here]

2. DEBT EQUITY RATIO

Debt Equity Ratio = Debt/Equity

Table showing Debt Equity Ratio

YEARS DEBT EQUITY DEBT EQUITY
RATIO
2014-2015 61 489.52 0.12

2015-2016 126.29 489.52 0.25

2016-2017 89.55 489.52 0.18

2017-2018 57.18 734.28 0.07

2018-2019 2552.72 696.41 3.66

GRAPH SHOWING DEBT EQUITY RATIO

Debt Equity
2552.72
734.28

696.41
489.52
489.52

489.52
126.29

89.55

57.18

3.66
0.12

0.25

0.18

0.07
61

2 0 1 4 - 15 2 0 1 5 - 16 2 0 1 6 - 17 2 0 17 - 18 2 0 18 - 19

3. PROFITABILITY RATIO
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A. GROSS PROFIT RATIO

Gross Profit Ratio = Gross Profit * 100
Net Sales
Table showing Net Profit Ratio
YEARS GROSS NET SALES(in GROSS PROFIT
PROFIT(in crores crores) RATIO
2014-2015 2098.64 30182.98 6.95

2015-2016 -1366.67 26638.37 -5.13

2016-2017 1061.36 28447.04 3.73

2017-2018 1932.89 28925.71 6.68

2018-2019 2141.96 30348.95 7.05

Gross Profit

30348.95
30182.98

28925.71
28447.04
26638.37

2141.96
2098.64

1932.89
1061.36
6.95

3.73

6.68

7.05
-5.13
-1366.67

2 0 1 4 - 15 2 0 1 5 - 16 2 0 1 6 - 17 2 0 17 - 18 2 0 18 - 19

B.NET PROFIT RATIO

Net Profit Ratio = Net Profit After Tax * 100
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Net Sales
Table Showing Net Profit Ratio
YEARS NET PROFIT(in NET SALES(in NET PROFIT
crores) crores) RATIO
2014-15 1419.29 30182.98 4.70

2015-16 -709.60 26638.37 -2.66

2016-17 495.86 28447.04 1.74

2017-18 806.60 28925.71 2.78

2018-19 1215.39 30348.95 4.00

GRAPH SHOWING NET PROFIT RATIO

30348.95
30182.98

28925.71
28447.04
26638.37
1419.29

1215.39
495.86

806.6
1.74

2.78
4.7

4
-2.66

2 0 1 4 - 15 2 0 1 5 - 16 2 0 16 - 17 2 0 17 - 18 2 0 18 - 19
-709.6

4. ACTIVITY RATIO
A. CURRENT ASSETS TURNOVER RATIO
Current Assets Turnover Ratio = Net Sales/ Average Current Assets
Table showing current assets turnover ratio
YEARS NET SALES(in CURRENT CURRENT ASSET
crores) ASSETS(in crores) TURNOVER
RATIO
2014-2015 30182.98 46137.86 0.65
2015-2016 26638.37 42118.26 0.63
2016-2017 28447.04 39939.73 0.71
2017-2018 28925.71 40321.43 0.71
2018-2019 30348.95 27626.40 1.09
46137.86

42118.26

40321.43
39939.73

30348.95
30182.98

28925.71
28447.04

27626.4
26638.37
0.65

0.63

0.71

0.71

1.09

2 0 1 4 - 15 2 0 1 5 - 16 2 0 1 6 - 17 2 0 17 - 18 2 0 18 - 19
 PART – E
LEARNING EXPERIENCE
Learning Experience
My internship experience in BHEL has taught me more than I could have imagined. As a
trainee in BHEL, I learnt so many things like how the company actually works and how the
authority is given to the employees.

I was allowed to work in Finance department as my interest was in studying the financial aspect
like how the vendors will be selected and how they allocate the funds to pay the vendors. I
learnt how the actual work takes place in the real company as we are taught about the theoretical
aspect in our college. Through this experience, I got a clarity about the stream where I should
move forward and excel in my carrier. By doing internship in this company, I could understand
the work culture and the various policies to be followed.

Many employees have helped me to study about this company and I would be grateful to them.
I learnt about the works and service bills where the service bills like maintenance of AC, lift
and works bills like payment to contractors would be processed. And to talk about the
indigenous bill section where the Indian vendors’ payment would take place whereas import
bills section deals with the international vendors. This experience would definitely help me to
learn more practical things. Trainees who work in the company as temporary workers have
taught many more things and have been supportive in my internship period.
Lastly, I would see this as a new experience in my life as this is the first time I stepped into a
work environment and have learnt a lot of things.
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BIBLIOGRAPHY

 Annual report of BHEL 2017-18

WEBLIOGRAPHY

 www.bhel.com
 edn.bhel.com
www.moneycontrol.com