Competitors of BHEL

In this kind of economy, its no surprise that BHEL has competitions to keep the market in their hands. Their biggest competitor being Larsen and Turbo (L&T), though still a bit far away, in future they are a concern for BHEL, especially since they have greater turnover, profit and assets at present and only defeated in terms of market share. 73% of energy production is by BHEL manufactured equipments.

Here’s a list of all the competitors in the Indian market for energy sector with their particular details from Top News-

                        

Competitors of BHEL in the Indian Market
Click on the image to enlarge

Please refer to Phases of Indian Economy to understand more.

Story of Success

Bharat Heavy Electricals Limited

Founded in 1953, BHEL now has presence in India and 70 other countries with ever growing revenue and assets. It is one of India’s nine largest Public Sector Undertakings (PSUs), known as the Navratnas or the nine jewels. At present it’s under the Chairman/Managing Director, Mr. B. Prasad Rao.

According to Mr. Arun Poddar, CE System Testing, Senior Manager at BHEL EDN, there are few key points for BHEL to still hold the market. Firstly its under the government, which means land acquisition is not an issue and also have more contacts in the market. Permission or license to build is very simple to get and the government makes any investment such as on raw materials when required. There are certainly other disadvantages being in the public sector such as electricity theft and provision to politicians for free.

BHEL at present has a capacity of 10,000 MW but by the end of this year it’ll reach its mark of 15,000MW, and have plans to enhance its manufacturing capacity to 20,000MW.

The Phases of Indian Economy

Indian economy has been very different from any other country; it’s one of main reasons why it’s considered one of the biggest and impacting economies in the world. It can be divided mainly into 3 phases after independence in 1947. This is the big picture, which explains the market and growth of BHEL.

Phase I (1947 – 1966)-

India bestowed upon Jawaharlal Nehru to be the 1st prime minister of India with Dr. Rajendra Prasad, the 1st President. Mr. Nehru believed that India needed a change and should grow for which India had to change from agricultural to an industrial economy. He knew that investments wouldn’t be made by private companies and therefore started Central Public Sector Units (CPSUs), and the government invested in it. This is how BHEL, NTPC, ITI (telecom), NPC came into being, improving the standard of living and per capita income of India.

Though now some companies have vanished like ITI since they didn’t change with time, which is required to stay in a competitive market like the present. But was a definite great kick-start for a new independent economy.

Phase II (1966 – 1991)-

Indira Gandhi was stated as the prime minister and she strongly believed in a socialist economy. The government started taking over all the big and small companies and made all sectors public. This described the economy in 3 words –

PRIVATIZATION

LICENSE                                 } All this led to a SELLER’S MARKET

PROTECTED 

Companies were flourishing and there was boundary for growth, which resulted in GDP growth of only 2-3% and Below Poverty Line (BPL) percent to be 40%.

Phase III (1991 – present)-

The new Prime Minister, Mr. Narsimha Rao along with the finance minister Mr. Manmohan Singh (present Prime Minister) realized the need to change the economy urgently and have new reforms. Thus the economy was shifted from the old one to having these new features – 

PRIVATIZATION

GLOBALIZATION               } This created a shift to BUYERS MARKET

INDEPENDENT

Many industries started coming up, export-import business and trade created boom in the economy and foreign countries started investing in the ever growing consumer market of India. This generated GDP growth of 9% and the plan is to reach 10%. BPL fell to 23% but of course the dream is 0%.

In the present recession across the world, BHEL was able to not only sustain the hit but also managed to have a growth of over 20%. This is the big picture of the Indian economy.

An Insight

Before starting the comparative study, lets have a look at how an Indian company works and how they produce the present technology that we use. Since I have been a trainee at BHEL, will go through their product management and production systems and explain the various departments and what they require for future competitions and to keep in par with other nations and technology.

Bharat Heavy Electricals Limited (BHEL) is India’s largest company producing automation systems for industries and power plant equipments. The total turnover of BHEL is around US $6 billion. They also have presence in other infrastructure sectors such as Railways, Telecom, defense systems, transmission and distribution, oil and gas and many more. It has been stated as the 12^th largest power equipment manufacturer in the world. It has over 64% of market share; meaning over 64% of power generated in India is through BHEL equipments.

BHEL has many competitors and their biggest fear for future is Larsen & Turbo (L&T) who have greater turnover, profit and assets but lower market share at present. Some of the other companies in India in the same field are:

• Suzlon Energy
• BEML
• BGR Energy
• AIA Engineering
• Alfa Laval
• Praj Industries
• Walchandnagar
• Sanghvi Movers

In my next coming posts you will find the comparison between these companies in all sections including total share capital and secured and unsecured loans.

BHEL has many manufacturing facilities throughout India and each manufacture different equipments for power plants and industries. These facilities are located in:

• Bhopal (Madhya Pradesh)
• Haridwar (Uttarakhand)
• Hyderabad (Andhra Pradesh)
• Jhansi (Uttar Pradesh)
• Tiruchirapalli (Tamil Nadu)
• Ranipet (Tamil Nadu)
• Bangalore (Karnataka)
• Jagdishpur (Uttar Pradesh)
• Rudrapur (Uttarakhand)
• Goindwal (Punjab)
• Vizag (Tamil Nadu)

Besides these units BHEL also has 4 other sectors which take EPC contracts from various customers. The Research and Development (R&D) sector is situated in Hyderabad and two repair centers – Heavy Equipment Repair Plant (HERP) in Varanasi and Electric Machines Repair Plant (EMRP) in Mumbai.

Here’s a list of all the products from BHEL -

• Steam turbine
• Gas turbine
• Hydro Turbines
• Steam Generators
• HRSG- Heat recovery steam generator
• Transformers
• Locomotives
• Circuit Breakers
• Pumps
• Motors- BOTH AC AND DC, LT AND HT
• Electrical generators
• ESP – Electrostatic precipitator
• Pulverisers
• Oil field equipments
• Valves
• Boiler drum
• Headers
• Economiser
• Water wall panel
• Super heater
• Re-heaters
• Heat exchangers
• Pressure vessels
• Armed recovery vehicle
• Battery Operated Vehicles
• Air preheater
• Wind mill
• Fan (mechanical)
• Super rapid gun mount
• Soot Blowers
• Generator Busduct up to 36kV

BHEL also takes up onsite erection and commission, testing of equipments and remodeling and upgrading plants and has a total capacity of 15,000 MW. Some of their ongoing and completed projects are:

• NCTPP DADRI 2X490 MW
• INDRA GANDHI SUPER THERMAL POWER PROJECT 3X500 MW
• PRAGATI STAGE III-BAWANA(1500 MW)
• Harduaganj Thermal Power Station (2X250 MW)
• GHTP, LM Bathinda
• Kosti Sudan
• GLTPP
• ANPARA-D (2X500 MW)
• MTPS,MEJIA
• KHSTPP(NTPC),Kahalgaon 3X500 MW
• GVK GOINDWAL (2×270 MW)
• KUTCH LIGNITE POWER STATION
• SURAT LIGNITE POWER STATION
• NTPC MAUDA POWER PLANT (2X500 MW)
• NTPC SIPAT POWER PLANT 2X500 MW
• NTPC FARAKKA (1X500 MW)
• HMEL BHATINDA
• NTPC BARH STAGE-1 (ESP) & STAGE 2 – 2X 660 MW
• NTPC KOLDAM (5X200 MW)in collaboration with Toshiba,Japan.
• NLC barsingsar (2×150MW) lignite based
• NTPC RIHAND STAGE-3 2X500 MW
• MALWA POWER PROJECT 2X600 MW
• NEW PARLI POWER PROJECT
• NORTH CHENNAI POWER PROJECT
• NTPC VINDHYANCHAL STAGE IV 2X500 MW
• UKAI THERMAL POWER STATION
• SRINAGAR HYDRO POWER PROJECT
• VIJAYAWADA THERMAL POWER STATION 1X500 MW
• MAITHON RIGHT BANK POWER PROJECT 2X525 MW
• WARANGAL THERMAL POWER STATION 1X500 MW
• ALLAIN DUHANGAN HYDRO POWER PROJECT 2X96 MW
• PARBATI HYDRO PROJECT STAGE 2 AND STAGE 3 4X200 MW EACH
• CSEB Korba West Project 1X500 MW
• CSEB Marwa Project 2X500 MW
• 1X250 MW Santaldih UNIT-5
• 1X210 MW Bakreswar UNIT-6
• Adhunik 2×270MW BTG
• 1×500 MW Bokaro-A Project
• 3×250 MW NTPC Bogaigaon project
• 2×500 MW Durgapur Steel project
• 2×500 MW DVC Kodarma project

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About

I had trained under one of India’s leading company Bharat Heavy Electricals Limited (BHEL), and through a lot of research found out how backward our technology actually is. Everyone knows that India is behind, but how far? and when will we reach there? What is the present technology for present electricity generation? Everything explained here in this blog. India Energy will provide you comparative information of Indian Technology against foreign such as Germany, America, China etc. What India should do and what it should have done and all the info you may need for project work as well you may find here. If you would like to contribute as an author mail me at askusdoubts@gmail.com; but before posting/commenting, please do read the terms and conditions.