Bharat Heavy Electricals Limited (BHEL) has declared 2020 as “The Year of Transformation” with the objective of putting the company on the path of becoming a global engineering organisation. Towards this end, it has kicked off a multi-dimensional transformational strategy to address the multiple business challenges it currently faces — including decline in its traditional market for thermal power equipment, disruptive technology developments and increasingly stringent customer requirements. With this, the company aims to turn the current challenges into opportunities for the future.
In its over five-decade journey, BHEL has been a key contributor to India’s industrial development. Presently, more than 50 per cent of the electricity generated in the country comes from BHEL manufactured power generation equipment.
As part of the transformation strategy, it has taken up the task of reviewing and revamping processes, redesigning business models, expanding into new markets and developing a committed workforce with a strong leadership at all levels. Specific strategic initiatives focus on quality, project execution, cost reduction, diversification, digital enablement and technology upgradation. These initiatives are being coordinated and monitored through a “Transformation Office” set up at the corporate headquarters.
The company has recently launched “Quality First” initiative aimed at strengthening the quality culture, focussing on delivering world class products and services.
Revamp of project execution capabilities is another major initiative under way with the objective of arresting project delays and consolidating its position as a leading project execution organisation. Under this initiative, a number of steps have been taken up, including implementation of Integrated Project Management Software (IPMS) for real-time project monitoring, streamlining the supply chain to support smooth erection work at sites, strengthening pre-engineering activities for long term EPC excellence.
The company’s two pronged product strategy focuses on defending the core through excellence in execution, cost competitiveness, focus on spares and services and diversification into new business areas by engaging a leading consultancy agency .
Digital enablement is another focus area for the company. Various initiatives being taken in this direction include installation of IPMS, implementation of e-Office and integration of multiple ERP platforms for end-to-end monitoring of manufacturing, project execution to improve the overall efficiency of the organisation.
In line with its philosophy of being a committed corporate citizen, BHEL is transforming its townships into model / smart townships.