OVERCOMING A CRISIS

Danger Signs

In 2015/ 16, BHEL declared a loss for the first time in its 45year history, after 14 quarters of consecutive decline in profits

75 per cent of BHEL’s production is geared towards thermal power units. But emphasis has shifted to renewable energy

BHEL is a major supplier of railway equipment. But the Railways’ new manufacturing JVs at Madhepura, Marora have been with Alstom and GE, respectively

More and more private players have entered areas where BHEL once had a monopoly

BHEL’s turnover per employee reduced from 1.04 crore in ` 2012/ 13 to 0.63 crore in 2015/ 16 `

BHEL’s Counter Efforts

Improved delivery time of projects and equipment considerably, from six- seven years to two- three years

Resolved environmental issues and inter- department conflicts which had stalled projects, leading to many such being unlocked, including 31,000 ` crore of projects in Telangana

Forayed into markets outside India. Building an ultra-su-supercritical thermal power plant in Bangladesh, and a hydro project in Nepal

Diversifying its product basket, moving into hydro and nuclear energy, transportation systems other than railways, defence, aerospace, and energy storage, etc

Entered solar manufacturing, increasing solar cell and solar panel manufacturing capacity

Entered into collaboration with Japan’s Kawasaki Heavy Industries to make metro rails and coaches