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Organization of Thesis

The thesis will be organized in four chapters:

Chapter I Introduction and Design of the study: This chapter deals

introduction, concepts, Literature Review, Construct development,

hypothesis formulation and Research Methodology.

Chapter 2 Profile of the BHEL: This chapter presents the status of

engineering industry in India and talks about overall profile of Bharat

Heavy Electricals Limited, India and Tiruchirappallli.

Chapter 3 Impact of Knowledge Management on Organizational

Performance An Analysis: This chapter presents the analysis and

interpretation of the data collected for the study.

Chapter 4 Summary of Findings, Conclusion and Implications:

The last chapter highlights the key findings and presents the conclusion

of the study and spells implications and the scope for further research.

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CHAPTER 2

PROFILE OF BHARAT HEAVY ELECTRICALS LIMITED

(BHEL)

This chapter presents a broad overview of engineering industry in India.

Besides, the profile of Bharat Heavy Electrical Limited, India and

Tiruchirappalli are also highlighted.

2.1 Engineering Industry Overview in India

The Engineering sector is the largest in the overall industrial sectors in

India. It is a diverse industry with a number of segments, and can be broadly

categorized into two segments, namely, heavy engineering and light

engineering. The engineering sector is relatively less fragmented at the top, as

the competencies required are high, while it is highly fragmented at the lower

end (e.g. unbranded transformers for the retail segment) and is dominated by

smaller players.

The engineering industry in India manufactures a wide range of

products, with heavy engineering goods accounting for bulk of the production.

Most of the leading players are engaged in the production of heavy engineering

goods and mainly produces high-value products using high-end technology.

Requirement of high level of capital investment poses as a major entry barrier.

Consequently, the small and unorganized firms have a small market presence.

The light engineering goods segment, on the other hand, uses medium

to low-end technology. Entry barrier is low on account of the comparatively

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lower requirement of capital and technology. This segment is characterized by

the dominance of small and unorganized players which manufacture low-value

added products. However, there are few medium and large scale firms which

manufacture high-value added products. This segment is also characterized by

small capacities and high level of competition among the players. The

engineering industry is the largest segment of the overall Indian industry. The

industry can be divided into electrical and non-electrical segments. The

electrical segment depends upon the investments in power industry, while the

prospects of the non-electrical segment are driven by industrial investment.

Engineering Segment

Engineering equipment finds demand in sectors like cement, steel,

power, chemicals and petrochemicals, all of which have been adversely

affected by the general slowdown in the Indian economy in the past. Indian

manufacturers are capable of catering to most of the customers needs. There

may be a supply constraint in some cases. For example, India has an installed

capacity of 7000 MW in turbines. Some Indian manufacturers like BHEL and

Larsen & Toubro have made a mark in the international markets, while some

of the Indian arms of multinationals are a global base for outsourcing products

and services including R&D. Along with its inability to be globally

competitive in the past; the Indian engineering industry has also suffered from

poor demand. The slowdown may just be over and the fortune of the Indian

engineering industry is likely to look up.

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Key Growth Drivers of Indian Engineering Sector

The engineering sector in India has been growing on the back of growth

in the user industries and several new projects being undertaken in various core

industries such as railways, power, infrastructure, etc. Capacity creation in

sectors such as infrastructure, oil & gas, power, mining, automobiles, auto

components, steel, refinery, consumer durables, etc, is driving growth of the

engineering industry.

1. Growth of the key user-industries

2. Governments thrust on the power and construction industries

3. India being preferred by global companies as an outsourcing destination

as it enjoys lower labor cost and better designing capabilities

Heavy Industry

Heavy Engineering Industry is one of the largest segments of Industrial

production. It occupies a whole range of industries such as Heavy Electricity

Machinery. Turbines, Generators, Transformers, Switchgears, Textile

Machinery etc The Index of Industrial Production figures of 8 of the 16 major

industry groups show substantial growth with the rates ranging from 6% to

28%.

Thought there was some signs of recovery in the third quarter of 2002-

2003 the stimuli seem to have dissipated quickly. The problem with the cotton

textile sector has also continued to perform badly in the last two years. The

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only positive development is the measures announced for the textile industry in

the recent budget.

Trends across major sectors show that growth in the two lead sectors-

capital goods and consumer non-durable goods-have decelerated but still

remain at the double-digit levels. This has, however, been compensated by the

strong recovery in the intermediate goods segment. A major concern is the

lackluster performance of the consumer durable goods segment over the last

year with production declining for the first time.

Present Scenario of the Industry

The public sector Bharat Heavy Electricals Limited (BHEL) has evinced

interest in supplying turbines for the six super critical thermal power stations of

660 MW each proposed to be established in Rajasthan with the claim of having

enhanced its capacity to manufacture heavy-duty power generation equipment.

Having developed capacity to manufacture turbines to cater to power plants of

800 MW at its Hardwar unit, BHEL invited the Chairman and Managing

Director of Rajasthan Vidyut Utpadan Nigam, S. K. Kalla, to witness the

capacity enhancement programme. Mr. Kalla, accompanied by the Nigams

Director M. L. Kothari, saw the generator block of BHELs Hardwar unit on

Monday.

They were told that the public sector unit had invested Rs.1, 000 crore

to augment its capacity from 5,750 MW to 10,020 MW a year. BHEL proposes

to manufacture generating sets of 600, 660 and 800 MW at the unit. According

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to an official release here, Mr. Kalla requested the BHEL authorities to speed

up the supply of equipment for turbo-generators for the third and fourth units

of the Chhabra super thermal power plant. Construction of the two units of 250

MW each is to be completed by 2011.

The six super critical thermal power stations are to be set up at Chhabra

in Baran district, Suratgarh in Sriganganagar district and Banswara at an

estimated cost of Rs.24, 000 crores. The installation of these power houses will

enable the desert State to achieve self-sufficiency in power by 2012-13.At

present, against a consumption of 12,000 MW a day across the State, the power

production is only 8,000 MW a day. The State buys 20 lakh units of electricity

a day to meet the demand for power from various categories of consumers.

Bharat Heavy Electricals Limited (BHEL) Trichy has bagged an

order for the main plant package at the upcoming Bela Thermal Power Project

(TPP) in Maharashtra, involving a new rating unit of 270 MW. Valued at

Rs.703 crore the order for the Greenfield power project, located at Bela in

Nagpur district, has been placed on BHEL by Ideal Energy Projects Limited.

Coming close on the heels of an order for a 600 MW thermal power plant of

Korba West Power Company Limited in Chhattisgarh, this order is testimony

to the confidence reposed by Independent Power Producers in BHELs

capabilities, a release from the BHEL.

Major Private Sector customers too have been reposing confidence in

BHEL and in fiscal 2008-09 orders worth over Rs.13, 000 crore were placed

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on the company by Jindal Power, Jaiprakash Power Ventures, GVK Power,

Hindalco, HPCL Mittal Energy Ltd., Adani Power, Tatas and ACC among

others. BHELs scope of work in the present contract envisages design,

engineering, manufacture, supply, erection and commissioning of boiler, steam

turbine and turbo-generator, along with associated auxiliaries and state-of-the-

art controls & instrumentation including generator and unit transformers.

BHEL has fully established state-of-the-art technology for the manufacture of

thermal setups to 1,000 MW rating. It has also introduced new rating thermal

sets of 270 MW, 525 MW and 600 MW to meet customer demand, the release

added.

New Delhi: Bharat Heavy Electricals Ltd. (BHEL) has approved a

massive expansion programme to enhance its manufacturing capacity to 20,000

MW by 2012 and its foray into nuclear power equipment production such as

generators, turbines and nuclear reactors along with joint venture partners. The

company has also decided to open an office at Shanghai in China by March to

source castings and forgings from China and develop a working relationship

with Chinese suppliers. The approval comes close on the heels of doubts raised

by sections of the Power Ministry over the ability of BHEL to fulfill its

obligations in view of the massive capacity addition programme during the XI

Plan. Under the programme approved by the BHEL Board and the Ministry of

Heavy Industries, BHEL would have 15,000 MW capacities in place by the

end of 2009 and 20,000 MW by 2012.

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Minister of State for Power Jairam Ramesh, who recently made visits to

BHEL facilities in Trichy, Haridwar, Bhopal and Hyderabad, to review the

expansion programme, said orders had been placed for almost all machines and

while some machines might come after December, arrangements for

outsourcing had already been made to ensure that capacity was not a

constraint. The investment programme for expansion from 15,000 MW to

20,000 MW amounting to another Rs. 5, 000 crore is likely to be approved by

the end of next month,

2.2 BHEL, India - Overview

Bharat Heavy Electricals (BHEL) is an India based engineering and

manufacturing company that develops electrical and power equipment in

energy related and infrastructure sector. It manufactures over 180 products

under 30 major product groups and caters to sectors including power

generation and transmission, industry, transportation, telecommunication,

renewable energy, among others. The company primarily operates in India,

where it is headquartered in New Delhi and employs around 45,666 people.

The company recorded revenues of INR279, 897.4 million (approximately

$5,785.5 million) in the fiscal year ended March 2009, an increase of 34.9%

over 2008. The company's operating profit was INR48, 731.3 million

(approximately $1007.3 million) in fiscal 2009, an increase of 9.1% over 2008.

Its net profit was INR31, 151.7 million (approximately $643.9 million) in

fiscal 2009, an increase of 8.9% over 2008.

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Vision

A world class engineering Enterprise committed to enhancing stake

holder value.

Mission

To be an Indian multinational Engineering Enterprise providing total

business solutions through quality product system and service in the fields of

energy, industry, transportations, infrastructure and other Potential areas.

Values

Zeal to Excel and Zest for change

Intangibly and fairer in all matters

Report for dignity and Potential of individuals

Strict Adherence to commitments

Ensure speed of response

Foster learning cheatingly and learn work

Loyalty and mule in the company.

Key Facts

Table 2.1 Key facts about BHEL

Head office Bharat Heavy Electricals Limited BHEL House , Siri Fort New Delhi 110049

Phone 91 11 6633 7000 Fax 91 11 2649 3021 Web Address http://www.bhel.com Revenue/turnover (INR Mn) 279,897.4 Financial Year End March Employees 45,666 Bombay Stock Exchange Limited Ticker

500103

National Stock Exchange of India Ticker

BHEL

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Business Description

Bharat Heavy Electricals (BHEL) is an India based engineering and

manufacturing enterprise engaged in manufacturing electrical and power

equipment in the energy-related and infrastructure sector. It operates 14

manufacturing divisions, four power sector regional centres, over 100 project

sites, eight service centres and 18 regional offices. The company has

operations primarily in India.

The company operates in three business sectors: power; industry and

overseas business. Under the power sector, BHEL offers a range of products

and systems for thermal, nuclear, gas and hydro-based utility power plant. It

supplies steam turbines, generators, boilers and matching auxiliaries up to 800

mega watt (MW) ratings including supercritical sets of 660 and 800 MW. The

company, within the power sector, also supplies circulating fluidized bed

combustion (CFBC) boilers for thermal plants, steam turbines, nuclear

turbine-generator sets, gas turbines, piping systems, pulverizers, pumps,

seamless steel tubes, soot blowers, steam generators, turbo generators, valves,

among others.

The company's industry sector consists of five divisions: industry, oil

and gas, transmissions, transportation and renewable energy. BHEL's industry

division manufactures a variety of electrical, electronic and mechanical

equipment for industries such as metallurgical, mining, cement, paper,

fertilizers, refineries and petro-chemicals, and others. The company, within the

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industry division, supplies capital equipment and systems including captive

power plants, centrifugal compressors, drive turbines, industrial boilers and

auxiliaries, waste heat recovery boilers, gas turbines, pumps, heat exchangers,

electric machines, valves, heavy castings and forgings, electrostatic

precipitators, ID/FD fans, and seamless pipes. It also supplies controls and

instrumentation systems; and digital control systems for various power plants

and industries.

Under the oil and gas division, the company manufactures a range of

equipment covers onshore deep drilling rigs, super-deep drilling rigs, heli-rigs,

work over rigs, mobile rigs and desert rigs with matching draw works and

hoisting equipment. It supplies onshore drilling rig equipment comprising draw

works, rotary-table, travelling block, swivel, mast and sub structure, mud

systems and rig electrics, well heads and X-Mas tree valves to ONGC, Oil

India Ltd. and private drilling companies. BHEL, within the oil and gas

division, also supplies casing support system, mud line suspension system and

block valves to ONGC for offshore application.

BHEL, within the transmissions division, manufactures a range of

transmission systems and products. Its products include power transformers,

instrument transformers, dry type transformers, shunt reactors, capacitors,

vacuum and SF6 switchgear, gas insulated switchgear, and ceramic insulators.

The company's transportation division provides traction propulsion systems

and controls to Indian railways. The range includes traction motors; traction

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generators and alternators transformers; substation equipment; vacuum circuit

breakers; locomotive bogies; smoothing reactors; exciters converters; inverters;

choppers and associated control equipment; and electric controls.

Under the renewable energy division, BHEL focuses on manufacturing

and supplying various renewable energy systems and products. These products

include solar energy systems such as solar water heating systems, solar photo-

voltaic (SPV) systems for both domestic and industrial application and wind

electric generators. The company, within the overseas business division, offers

a range of products and services covering turnkey power projects of thermal,

hydro and gas-based; substation projects; and rehabilitation projects. It also

offers products, such as transformers, compressors, valves and oil field

equipment, electrostatic precipitators, photo voltaic equipments, insulators,

switchgears, heat exchangers, and castings and forgings. BHEL exports its

products to several countries comprising Indonesia, Bangladesh, Iraq, Libya,

UAE, Sudan, Indonesia, Afghanistan, Oman, New Caledonia, among others.

History

Bharat Heavy Electricals (BHEL) was established in Bhopal, India in

1956. In 1982, the company entered into the industrial sector. BHEL secured a

contract with Bhilai Electric, to set up two units of 250 MW each at Bhilai

Thermal Power Project in Chhattisgarh in 2005. In the same year, the company

secured a contract for setting up a 120 MW eco-friendly Co-Generation power

plant in Indonesia from PT Merak Energi. Also in the same year, the company

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secured an export contract for two Power Projects on turnkey basis in Sultanate

of Oman. In 2005, the company secured a contract to supply and erection of

the Main Plant Package for two separate 500 MW Thermal Power Stations

(TPS) in Andhra Pradesh from Andhra Pradesh Power Generation. In the same

year, the company secured its first order from Ethiopia, winning a World

Bank-funded contract from Ethiopian Electric Power Corporation, to design,

supply and construct two substations, and expend another. BHEL secured an

order from Indian Oil Corporation for the setting up an energy efficient and

environment friendly co-generation power plant at its Haldia Refinery

Complex in 2005. In the following year, the company secured $457 million

turnkey contract for 500 MW Power Plant in Sudan.

In 2006, the company commissioned the largest Solar-Diesel Hybrid

Power Plant at Bangaram Island in Lakshadweep. In the same year, BHEL

secured an order for Lignite Based Power Project and INR8, 420 million

contracts for two Power Projects in Rajasthan, India. Also the same year,

BHEL set up 490 mega watt (MW) power plant for NTPC at Dadri, India.

BHEL secured INR12, 240 million contracts for 2x250 MW Parichha TPS in

2006. In the same year, BHEL commissioned 600 MW western mountain gas

turbine power project in Libya. In 2007, the company secured a contract for

equipment to generate 1500 MW of power in Maharashtra, India. In the same

year, BHEL established an instrument calibration centre for enhancing

precision and accuracy of testing of thermal sets. Later in that year, BHEL

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established fourth Centre of Excellence at its corporate Research and

development (R&D) division in Hyderabad, India. BHEL secured a contract

for the supply and installation of the Main Plant Package at Jhajjar Super

Thermal Power Project in Haryana, involving three units of 500 MW each in

2007. In the following year, the company secured long term contract from

ONGC for the supply of Well Head assemblies, Xmas Tree Valves and other

critical spares and accessories used in oil exploration. In 2008, the company

signed a memorandum of understanding (MOU) to form a joint venture

company with Nuclear Power Corporation of India limited (NPCIL), to jointly

execute Nuclear Power Projects on EPC basis. In the same year, BHEL and

NTPC formed a 50:50 Joint Venture Company called NTPC-BHEL Power

Projects, to execute EPC contracts and manufacture and supply equipment in

India and abroad. BHEL took over Bharat Heavy Plate and Vessels BHPV in

2008. In the same year, the company received a contract for setting up a 400

MW Thermal Power Project in Syria. Also the same year, the company secured

an export contract for two Gas Turbine Generating units of 42 MW each from

the UAE. In 2008, BHEL entered into the South-East Asian region by winning

a contract for Nam Chien Hydro Power Project in Vietnam. In the same year,

the company received a turnkey contract for setting up a Hydro Power Project

in Rwanda. Also the same year, BHEL and Heavy Engineering Corporation

Ltd (HEC) signed a MOU, to form a joint venture company to supply castings

and forgings; and supply critical input material for manufacture of Power Plant

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Equipment. Karnataka Power Corporation Limited (KPCL) and BHEL entered

into an agreement to set up a joint venture company (JVC), to build, own and

operate Thermal Power Plants with Supercritical parameters in Karnataka, in

January 2009. In the following month, the company and Kerala Electrical and

Allied Engineering Company Limited (KEL) signed a memorandum of

understanding (MOU), to set up a joint venture (JV), to manufacture products

for Railways and Industries. Maharashtra State Power Generation Company

Limited (Mahagenco) and BHEL signed a memorandum of understanding

(MOU), to set up a joint venture company (JVC) to build, own and operate a

2x660 MW Thermal Power Plant with Supercritical parameters at Latur in

Maharashtra, in August 2009. In the same month, the company set up a new

centralized stamping unit (CSU) at Jagdishpur, Uttar Pradesh. B. Prasada Rao

was appointed as the Chairman and Managing Director at BHEL in October

2009. In the same month, Atul Saraya was appointed as the Director of Power

at BHEL. In October 2009, the company signed an agreement with Jindal

Power Limited, to set up the 2,400 MW extension stage of OP Jindal Super

Thermal Power Plant (STPP) (4x600 MW) in Chhattisgarh, India. In the

following month, BHEL established high voltage transformer manufacturing

facility at Bhopal, India. Madhya Pradesh Power Generation Company Limited

(MPPGCL) and BHEL signed a MOU agreement for setting up a joint venture

(JV) company to build, own and operate a 2x800 MW thermal power plant

with supercritical parameters at Khandwa in Madhya Pradesh, India, in

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November 2009. In the following month, the company secured a repeat

contract from Adhunik Power and Natural Resources Limited (APNRL) for the

main plant package of the second new-rating unit of 270 MW at its upcoming

thermal power project (TPP) in Jharkhand, India. In January 2010, the

company secured a contract for setting up grid-interactive solar power plant in

Karnataka. In the same month, BHEL and MPPGCL float JV Company for

setting up supercritical thermal power project in Madhya Pradesh, India. BHEL

secured a contract for hydroelectric project in Bhutan in February 2010. In the

same month, the company secured a contract for setting up a 330 MW (3x110

MW) hydro electric project (HEP) in the state of Jammu and Kashmir, India.

In February 2010, the company and Toshiba Corporation, Japan, signed a

MOU to form a JVC to address the transmission and distribution business in

India and other mutually agreed countries. In the following month, BHEL

secured an order for setting up two thermal power projects in Maharashtra,

India. BHEL secured Rs. 63,000 million contract for 1600 MW supercritical

thermal power project in Karnataka, India, in April 2010.

Key Employees

Table 2.2 Key Employees of BHEL

Name Job Title Board B Prasada Rao Chairman and Managing

Director

Executive board

C S Verma Director, Finance Executive board

Anil Sachdev Director, Human Resources Executive board

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Atul Saraya Director, Power Executive board

O P Bhutani Director Non Executive Board

S Ravi Director Non Executive Board

Saurabh Chandra Director Non Executive Board

Rajiv Bansal Director Non Executive Board

Ashok Kumar Basu Director Non Executive Board

M A Pathan Director Non Executive Board

Reva Nayyar Director Non Executive Board

V K Jairath Director Non Executive Board

Shekhar Datta Director Non Executive Board

Inder Pal Singh Company Secretary Senior Management

Major Products and Services

Bharat Heavy Electricals (BHEL) is engaged in manufacturing electrical

and power equipment in the energy-related and infrastructure sector. The

company's key products include the following:

Power

Air pre heaters

Boilers

Control relay panels

Electrostatic precipitators

Fabric filters

Fans

Gas turbines

Hydro power plant

Piping systems

Pulverizers

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Pumps

Seamless steel tubes

Soot blowers

Steam generators

Steam turbines

Turbo generators

Valves

Industry

Capacitors

Ceralin

Compressors

Diesel generating sets

Industrial motors and alternators

Gas turbines

Oil field equipment

Solar photo voltaics

Power semiconductor devices

Seamless steel tubes

Soot blowers

Steel castings and forgings

Steam generators

Steam turbines

Turbo generators

Valves

Transmission

Bushings

Capacitors

Control relay panels

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Dry-type transformers

Energy meters

HYDC transmission system

Insulators

Switchgears

Power semiconductor devices

Power system studies

Control shunt reactor

Transportation

Electric rolling stock

Electrics for rolling stock

Electrics for urban transportation system

Non Conventional Energy Sources

Mini/micro hydro sets

Solar lanterns

Solar photo voltaics

Solar water heating systems

Wind electric generators

Research and Development Products

Fuel cells

Surface coatings

Automated storage and retrivals

Load sensors

Transparent conducting oxide

Top Competitors

The following companies are the major competitors of Bharat Heavy

Electricals Limited

Gujarat Industries Power Company Limited

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NEPC India Limited

CESC Limited

Torrent Power

Kirloskar Oil Engines Limited

Significant Achievements

The company surpassed its own record set in 2007-08 by booking

orders worth Rs 59,678 Crore. Utility orders amounted to 17,020 MW and

Industry Sector order inflows crossed INR10, 000 Crore mark for the first time.

Maiden orders for 2x800 MW supercritical boilers for Krishnapatnam and

2x660 MW supercritical turbine generator sets for Barh-II, NTPC were

received. First-ever order for steam generators for new rating 700 MWe

Nuclear sets moving forward to capitalize on emerging business

opportunities in the Nuclear sector Manufacturing capacity expansion from

10,000 MW to 15,000 MW p.a. proceeding apace and further augmentation to

20,000 MW p.a. planned by 2011-12. BHEL's R&D spend increased to

INR690 Crore amounting to 2.46% of the Turnover, a commendable

achievement for a company operating in the Capital Goods segment Economic

Value Addition (EVA) reached INR2,008 Crore, a 11% Crore, a 11% past

year. Earnings per Share' on the postbonus equity capital increased to Rs

64.11 against previous years INR58.41. A final dividend of 80% has been

recommended by Board, in addition to the interim dividend of 90% for the

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year, making a total of 170% for the year. BHEL is maintaining the track

record of paying dividends uninterruptedly since 1976-77.

The challenge before the country is to move ahead with rapid expansion

of its installed power generating base. Massive capacity additions have been

planned for both XI and XII Plan periods. Realizing these would demand up-

gradation to higher range equipment, faster capacity augmentation and shorter

cycle times with better project execution cycles which is a daunting task.

Several positive initiatives have been put in place by the government for

creating conditions that would encourage both public and private sectors to

invest in this field. This challenge is an opportunity for your company; to

grow business many fold and to serve people of this great country. With the

manufacturing capacity of 10,000 MW already in place and implementation

well under way for achieving 15,000 MW by December 2009, the company

intends to capitalize on the opportunities. At the same time, the emerging

competition due to market expansion requires your company to adopt a new

paradigm. This new paradigm calls for a strategic shift that will require BHEL

to build capabilities to address the stringent demands from its stakeholders.

Our ongoing thrust on capacity and capability building initiatives are intended

to make your company Future Ready. BHEL has forayed into new areas like

Supercritical thermal sets, 500 MW Nuclear set for Fast Breeder Reactor,

Advanced-class gas turbines (Fr.9FA) etc. Company plans to increase R&D

spend to at least INR1000 crore by 2011-12. To strengthen its human resource

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assets base, 4717 employees were recruited in 2008-09. Your company is

forging strategic alliances by way of JVs to leverage equipment sales in the

Supercritical technology domain, JVs for technology sourcing, JVs for

sourcing critical inputs, equipment, etc. Companies like NTPC, NPCIL,

TNEB, KPCL, GSECL, KEL, BEL, HEC and PTC have become our esteemed

partners in these ventures.

Diversification of the portfolio and geographic spread are important

strategies to mitigate risks in future. BHEL is taking necessary steps in this

direction. Routes of inorganic growth are being explored in the areas of

Transmission, Transportation, Photo voltaics and Nuclear Bharat Heavy Plate

& Vessels (BHPV), which has been acquired as a 100% subsidiary is being

revived with adequate managerial & financial support. International business is

being further enhanced by focusing on consolidation in existing international

markets as well as entering new markets. A breakthrough was achieved with

the Long term business tie-up in the form of a rate contract for 126 MW rated

Gas Turbine generating sets with Petroleum Development Oman.

Financial parameters are one of the indicators of performance. Going

forward, sustainable progress calls for a heightened level of creation of value

in other aspects as well. BHEL has put in place Corporate CSR Policy to

further build on its efforts of being a responsible corporate citizen. To cater to

the concerns for climate change, BHEL is making all efforts to promote clean

coal technology in the country.

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Locations and Subsidiaries Table 2.3 Head office and Subsidiaries of BHEL

Head Office Bharat Heavy Electricals Limited

BHEL House Siri Fort

New Delhi 110049 IND

P: 91 11 6633 7000 F: 91 11 2649 3021

http://www.bhel.com Subsidiaries

Bharat Heavy Electricals Limited (Kolkata) Plot No.9/1 DJ Block 3rd Floor KARUNAMOYEE Salt Lake City Kolkata 700091 West Bengal

Bharat Heavy Electricals Limited (Heavy Power Equipment Plant) Ramachandrapuram Andhra Pradesh Hyderabad 502032

Bharat Heavy Electricals Limited (High Pressure Boiler Plant) Tiruchirappalli 620014 Tamil Nadu

Bharat Heavy Electricals Limited (Boiler Auxiliaries Plant) Indira Gandhi Industrial Complex Tamil Nadu, Vellore Ranipet 632406

Bharat Heavy Electricals Limited (Industrial Valves Plant) 433,Industrial Complex, Punjab, Goindwal 143423 Tarn Taran

Bharat Heavy Electricals Limited (Electronics Division) Mysore Road Bangalore 560026

Bharat Heavy Electricals Limited (Energy System Facilities) IICT Pilot Plant Complex Road # 7,Nacharam Industrial Area Hyderabad 500076

Bharat Heavy Electricals Limited (Insulator Plant), Jagdishpur Industrial Area Uttar Pradesh,Sultanpur 227817

Bharat Heavy Electricals Limited (HeavyElectrical Plant) Piplani,Madhya Pradesh, Bhopal 462022

Bharat Heavy Electricals Limited (Electrical Machine Repair Plant) Plot No D 1, Cross Road C Road No 16, Andheri (East),Mumbai

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Certification

BHEL is the first state-owned company to acquire ISO 9000

certification during 1993 for all its operations. This is being successfully

maintained through surveillance and recertification audits. BHEL is continuing

its thrust on Total Quality Management (TQM) as per Confederation of Indian

Industries (CII) / European Foundation Quality Model (EFQM) of Business

Excellence. As a commitment towards TQM, continuous improvement action

plans are implemented involving techniques like Benchmarking, Business

Process Re-engineering, and Six Sigma etc. CII has conferred "CII-EXIM

Commendation Certificate" on the High Pressure Boiler Plant for 'Commitment

to TQM'.

2.3 BHEL, Tiruchirappalli Overview

Profile

The High Pressure Boiler Plant of the Bharat Heavy Electricals Limited

was setup in 1963 for the manufacture of High Pressure Boilers. The plant

achieved its full annual capacity to design manufacture and supply high

pressure boiler equipment up to 4000 MW in 1984 with boiler unit ratings up

to 500 MW.

BHEL, Trichy has over the years seen formidable growth in capacity,

capability, turnover and profitability. Product diversification has resulted in the

development of new products enabling BHEL to absorb modern technologies.

Such innovations result in continuous updating of manufacturing facilities to

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serve the customers in a more comprehensive way and for improving quality

and productivity.

BHEL, Trichy has added to its High Pressure Boiler Plant (HPBP), a

Seamless Steel Tube Plant (SSTP) at Tiruchirappalli (adjacent to the HPBP), a

Boiler Auxiliaries Plant (BAP) at Ranipet (in the state of Tamil Nadu), a

Piping Centre (PC) at Chennai in Tamil Nadu and an Industrial Valve Plant

(IVP) at Goindwal (in the Northern state of Punjab).

HPBP and SSTP are spread over 2908 acres of land at Trichy and BAP

over 1256 acres at Ranipet. HPBP and SSTP have a covered shop area of 2,

50,000 square meters and BAP Ranipet has 47,000 square meters of covered

shop area. BHEL will commission the countrys largest Circulating Fluidized

Bed Combustion (CFBC) power project of 250 MW capacities for the Neyveli

Lignite Corporation in 2011. The BHEL, Trichy so far supplied 80 to 90

bubbling F

BCs and six CFBC boilers, including exports made to Indonesia and New

California.

Technology Assimilation and Development

With judicious mix of in-house R&D and selective technology tie ups,

BHEL Trichy has developed excellent Engineering and R&D capabilities.

For various products, technologies from international leaders in the field have

been absorbed and adopted to suit local conditions and customers specific

needs. These products can now be designed to various international Codes and

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Standards. The capabilities have been accorded recognition by reputed

international agencies.

BHEL Trichy has today demonstrated capability to design boilers and

auxiliaries for unit rating up to 500 MWe. Through in-house R&D, the

technology for Fluidized Bed Combustion has been developed for burning high

ash, low grade coals, coal washery middlings and rejects and a variety of bio-

fuels such as husk, rice straw and bagasse.

BHEL Trichy has also developed Firing System for Direct Ignition of

Pulverized Coal thus minimizing use of supporting premium petroleum fuels

like Furnace Oil / Diesel in the boilers. BHEL Trichy has also been identified

as a nodal agency for all Fossil Fuel Based Research Activities state-of-the-art

R&D facilities such as Fluidized Bed Combustion (FBC) and Circulating

Fluidized Bed Combustion (CFBC) test facilities, Direct Ignition of Pulverized

Coal (DIPC) test facility, Electrostatic Precipitator (ESP) flow modeling

facility to enable fully fledged testing of systems and equipment.

Research and Development effort on new welding processes, equipment

and consumables are undertaken by the Welding Research Institute (WRI)

established at BHEL Trichy. With superior engineering and R&D capabilities,

BHEL Trichy is well poised to introduce new products such a boiler and

auxiliaries of higher ratings (in the range of 800 MWe), Super Critical Once-

Through Boilers, Fabric Filters and Flue Gas Desulphurization system.

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World Class Facilities

BHEL Tiruchirappalli has equipped all its units with sophisticated

world class machinery, which forms the heart of the manufacturing system.

The facilities include 8000 ton Hydraulic Press, a four Roll Plate Bending

Machine, a large capacity Induction Pipe Bending Machine, Arc Welding

Robot, Flat Fin Welding Machine, Panel Processing Machine, Tandem Arc

Welding Machine & Cutting Machine, Electron Beam Welding Machine,

Spiral Fin and Stud Welding Machines, sophisticated Tube-to-Tube Sheet

Welding Facilities, Bore Cladding Machines, CNC milling, drilling, boring and

machining facilities, tube bending machines, a plasma cutting machine, a CNC

gas cutting machine etc.

Quality Commitment

All the plants are equipped with state-of-the-art analytical, mechanical

and non-destructive testing facilities. The Calibration Centre which is a

National Accredited Laboratory possesses the latest techniques and facilities in

the field of calibration. The Seamless Steel Tube Plant has on-line ultrasonic,

stray flux and eddy current test facilities to ensure highest quality production.

The Boiler Auxiliaries Plant has a modern fan test station, flow model test

facilities, test air heater, etc.

Quality Recognition

Adherence to quality has helped BHEL Trichy win quality recognition

from National and International accreditation agencies. ASME "S"-Stamp

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authorization recognizing BHEL, Trichy as 'Power Boiler Manufacturer' to

ASME Code - a first for an Indian company. Class-I Pressure Vessel

Manufacturers Certificate from Lloyds Register of Shipping, UK. Group-1

Boiler Manufacturing Certificate from American Bureau of Shipping. API

Monogram for manufacturing Oil Field Equipment for Valves. Seamless Steel

Tube Plant is an approved manufacturer of Steel Pipes and Tubes by Lloyds

Register of Shipping. Seamless Steel Tube Plant is certified as ' Well Known

Tube and Pipe Maker' by Central Boiler Board of the Indian Government.

Customer Services

At BHEL Trichy, every system is tuned towards serving the customer.

The entire project management required for timely execution of customer

orders is handled through a computer network system. Planned production of

components in workshops as well as timely ordering on outside vendors is

carried out to ensure dispatch of components matching construction schedule at

the sites. This helps BHEL in maintaining product deliveries with shortest lead

times. Services are provided during and after commissioning of equipment by

Field Engineering Services. With this dedicated team of engineers and

technicians, site problems are attended to with the utmost urgency. Effective

interaction is maintained with customers to have continuous feedback on

equipment performance. Supply of spares and service-after-sales are two other

major components of BHEL Trichy's service support. BHEL Trichy ensures

timely supply of spares for proper upkeep of equipment and maximization of

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equipment utilization. Techniques and methodology have been developed to

assess the residual life of components, based on which selective replacement

decision can be made to extend the productive life of the equipment.

Global Links

The achievements have earned an international reputation for BHEL,

Trichy. The plant has so far supplied boilers for around 1350 MWe of power

generation capacity to Malaysia, Libya, Iran, Egypt etc. BHEL's valves have

been exported to Malta, Cyprus, Malaysia and Indonesia while pressure part

equipment and spares have been exported to the USA. Boiler components have

been supplied to China and Seamless Steel Tubes have been exported to

Malaysia.

People Our Greatest Asset

Behind each one of these activities lays the commitment and dedication

of the employees, technical experts, process engineers and skilled workers,

whose contribution has attributed to penning this success story. BHEL

Tiruchirappalli is the proud winner of successive Productivity Awards and the

'Sword of Honor' from the British Safety Council. The President of India has

awarded the shield for the Best Employer of Physically Handicapped Persons

to BHEL Trichy. Vishwakarma National awards and Young Engineer Awards

have been won in successive years by the employees of BHEL Trichy. BHEL

Trichy has won goodwill and sustained support for its employee welfare

schemes. A township to ensure housing, the Sir C.V. Raman Science Centre

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and other educational facilities form the core of these schemes. As a

responsible corporate body, BHEL Trichy, India has adopted several

neighboring villages to help them uplift their lot.

Surging ahead........

BHEL Tiruchirappalli stands for all that is cherished by every member

of BHEL, where Quality is company-wide commitment. Dedication to

technical excellence, development of state-of-the-art technology-suitable to

customers specific needs and strict adherence to quality standards form the

guiding principles while it surges ahead confidently into the future.

Major Departments

The following are the departments functioning in BHEL, Tiruchirappalli.

HRM

Advanced Technology Products

valves

FBC & HRSG

Commercial

Engineering

SSTP

Outsourcing

Boiler Operations

Finance &Accounts

Human Capital

The total numbers of employees who are the real strength at BHEL,

Tiruchirappalli are given in table 2.4.

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Table 2.4 Employees strength of BHEL

Accreditation

BHEL Trichy has been accredited to ISO 14001 Standard - signifying

its clear commitment to clean and pollution free environment. 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.

Level Designation No Workers 6946 Supervisors 1816

E0 Engineer Trainee 142 E1 Engineer 317 E2 Sr Engineer 132 E3 Dy Manager 293 E4 Manager 432 E5 Sr Manager 141 E6 Dy General Manager 141

E6A Sr D G M 83 E7 Addl General Manager 107 E8 General Manager 19 E9 Executive Director 1 10570

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Knowledge Management policy

BHEL is committed to leverage its intellectual capital accumulated

through R&D and the experiential learning of its employees, technology

acquisition etc. and to further acquire, create, protect and share knowledge

resources across the organization in a seamless manner, on a need-to-know

basis, and to manage the same effectively towards value creation for its

stakeholders.