SWOT Analysis of BHEL (Bharat Heavy Electricals Limited)

This article is on the SWOT Analysis of BHEL (Bharat Heavy Electricals Limited). BHEL is an electrical equipment industry that was established in 1964 and has its headquarters in New Delhi, India. It is owned and established by the Government of India (GOI). BHEL has been awarded by Maharatna Status by the Government of India.

SWOT Analysis of BHEL

BHEL is the main manufacturer of power generation equipment, supplying various products, such as gas and steam turbines, electric engines, boilers,  electric locomotives, heat exchangers, generators, monitors, and switchgear, power electronics, automation & control devices, and transmission devices.

BHEL become a public limited company during the year 1991. It has built the ability over a number of years to manufacture tons of equipment for all sectors.

SWOT Analysis of BHEL1

BHEL carries out various operations such as the planning, development, manufacturing, testing, and servicing of a range of products. BHEL has an extensive network of about 17 manufacturing units, two maintenance units, eight support centers, four district offices.

It also has eight branches overseas, including seven joint ventures. BHEL has developed the competence to supply approximately 20,000 MW p.a of power equipment in order to satisfy the growing demand for power generation equipment.

BHEL has been moving goods and resources in its Power and Industry division for over 40 years. Its worldwide reach extended to about six continents across 76 countries.

SWOT Analysis of BHEL2

BHEL has strengthened its Quality base ever since its establishment. Throughout the time 1970-90, BHEL introduced Quality Manual for the whole enterprise, which includes programs, activities, procedures, and processes.

During this time, second-tier manuals were introduced, such as common technical protocols, evaluation schedules, process maps, non-compliance management schemes, and protocols. Until then, BHEL has been leading impression in India in the calibration method, production preparation, and efficiency circles.

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Via this article let’s address BHEL’s SWOT analysis:

Strengths in the SWOT Analysis of BHEL

BHEL deep base in Engineering – BHEL has a solid technological basis and a secure industrial partnership. This is the main producer of power generation equipment supplying numerous items, such as gas and steam turbines, boilers, electric engines, electric locomotives, generators, heat exchangers, switchgear and monitors, automation, and control devices, power electronics, and transmission devices.

  • Continuous Profits – Since the year 1974 BHEL has produced continuous income and paid dividends. That is a great asset to the company.
  • Collaborator support – BHEL has fantastic collaborator support that has helped them get a lot of western technology and then turn it to fit the Indian conditions.
  • Huge Customer Base – BHEL has a large domestic customer base which contributes to the success and greater market impact.
  • Huge goods-BHEL produces approximately 190 goods and more than 30 different product categories.
  • Quality Goods-BHEL’s quality base is pretty solid. Throughout 1970-90, BHEL introduced Quality Manual for the whole enterprise, which includes programs, activities, procedures, and processes. During this time, second-tier manuals were introduced, such as common technical protocols, evaluation schedules, process maps, non-compliance management schemes, and protocols. Until then, BHEL has been leading impression in India in the calibration method, production preparation, and efficiency circles.
  • Research & Development-BHEL has always had a heavy emphasis on creativity and growth. It has contributed to the production of many goods and services which are technically successful. Their Research & Development wing laboratories include Permanent Magnet Machines, Insulation and Chemical Sciences, Intelligent Machine Control, Electrical Devices, Power Electronic Systems, High Voltage Electronics, GIP, and Switchgear Production, and more.
  • Employees Safety And Welfare – BHEL is giving special emphasis on employee safety and welfare as Employees are the key assets of the company. BHEL is providing free medical treatments to its retired employees and current employees free of cost. Subsidized Loans, Bonuses, etc are also provided by the company to retain employees.
  • Huge Space for Development / Manufacturing of Products.
  • 24 Hours Working in Shifts.
  • Proper Training is Provided in the company.
  • Six Sigma Management Techniques are implemented in BHEL.
  • BHEL has good resources to complete any type of order.
  • BHEL has maintained good industrial relations with its Employees and Trade Unions.
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Weakness in the SWOT Analysis of BHEL

  • The inability for Other Operations – There have been few circumstances in which BHEL has had the inability to provide manufacturer loans, power plant funding, and soft loans.
  • Longer distribution times – By taking more time than foreign rivals, BHEL delivers goods this is because of the size and weight of the products. This may be a vulnerability that would have a major effect on the market, with longer production times.
  • Less marketing infrastructure – BHEL lacks efficient marketing infrastructure, which is, in reality, a business weakness.
  • The procurement process-BHEL’s procurement process is complex and subject to auditing.
  • PSU Status – PSU status for BHEL is also another limitation because it is subject to the laws and regulations. It is required to bear immense quantities of energy, which can not be that.
  • Criticism – A joint venture is the BHEL plant, a 1340-megawatt coal-fired power station situated in Rampal near the Sundarban Mangrove Forest for Bangladesh-India Friendship Power Company. This project attracted a lot of backlash for affecting the ecosystem and the possible damage it could bring to the world’s largest mangrove forest.

Opportunities in the SWOT Analysis of BHEL

  • The market for Power Sector – There’s a big market in the power domain for more equipment to be made. It represents an immense potential for BHEL.
  • Aging power plants – There are many plants that are very old and need maintenance and spare parts as BHEL is in the market for a long time. In doing so, BHEL will achieve production faster and offer more business exposure.
  • Expanded Private Sector Involvement – BHEL also sees a safer work climate and expanded engagement by the private sector in the activity of distribution circles.
  • Improvement in the Defense Spending – An improvement in the defense budget gives BHEL a lot of potentials as it would increase its top line.
  • Joint Venture with Siemens – Power Plant Quality Improvement Ltd, which is a joint venture with Siemens, is a collaboration that would be profitable and offers the company a great deal of reach.
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Threats in the SWOT Analysis of BHEL

  • BHEL is facing a lot of pressure from foreign as well as national firms.
  • Business associations-industry associations have significantly decreased the turn-over of the organization. In reality, this is a big challenge for the organization.
  • Rise in Small Contractors – A growing number of Small Contractors is a big challenge to BHEL contributing to price wars.
  • New Entrants in the Industry – The advent of new business entrants is often a major danger to the organization.

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