Case study
Marketing Strategies
SYMMS (MARKETING)
Case study on Bharat Heavy Electricals LTD.
Summary of the case study:
Public sector ‘Bharat Heavy Electrical Limited’ is India’s largest engineering and manufacturing enterprise, operating in the energy sector since 1956, it employs 42,000 people. BHEL manufactures over 180 products categorised into 330 major product groups. The operations of BHEL are organised into three business sectors viz., power, industry and overseas business. BHEL registered a growth of 29% and its net profit went to 44% in 2006-07.
BHEL has formulated a five year strategic plan with the aim of achieving a sustainable profitable growth, targeting a turnover of Rs. 45,000 crore. This thought is backed up with organic and inorganic strategy. Organic strategy includes capacity enhancing, designing to leverage the company’s core areas of power etc while the inorganic strategy includes expansion through Mergers and Acquisition, joint ventures etc.
BHEL has two options currently:
1. Joint venture with NTPC
2. Managing BHARAT pumps and compressors ltd and taking over Bharat Heavy Plates and Vessels.
BHEL operates under Ministry of Heavy Industries to supplies mainly to Ministry or power.
Despite making profits BHEL is unable to make enough power supply for the country due to growing demand.
2. Suppose BHEL plans to diversify its business. What areas should it diversify? Give reasons.
Ans. Considering the possibility for BHEL to diversify than the management of BHEL should consider taking over Bharat Heavy Plates and Vessels and management contract for Bharat Pumps and compressors. The main reason for choosing this proposal is that BHEL operates under the MINISTRY of Heavy Industries, hence the legal processors involving the takeover of Bharat Heavy Plates and Vessels will be ease out as both are not only public sector but also fall under the same Ministry.
SYMMS (MARKETING)
Case study on Bharat Heavy Electricals LTD.
Summary of the case study:
Public sector ‘Bharat Heavy Electrical Limited’ is India’s largest engineering and manufacturing enterprise, operating in the energy sector since 1956, it employs 42,000 people. BHEL manufactures over 180 products categorised into 330 major product groups. The operations of BHEL are organised into three business sectors viz., power, industry and overseas business. BHEL registered a growth of 29% and its net profit went to 44% in 2006-07.
BHEL has formulated a five year strategic plan with the aim of achieving a sustainable profitable growth, targeting a turnover of Rs. 45,000 crore. This thought is backed up with organic and inorganic strategy. Organic strategy includes capacity enhancing, designing to leverage the company’s core areas of power etc while the inorganic strategy includes expansion through Mergers and Acquisition, joint ventures etc.
BHEL has two options currently:
1. Joint venture with NTPC
2. Managing BHARAT pumps and compressors ltd and taking over Bharat Heavy Plates and Vessels.
BHEL operates under Ministry of Heavy Industries to supplies mainly to Ministry or power.
Despite making profits BHEL is unable to make enough power supply for the country due to growing demand.
2. Suppose BHEL plans to diversify its business. What areas should it diversify? Give reasons.
Ans. Considering the possibility for BHEL to diversify than the management of BHEL should consider taking over Bharat Heavy Plates and Vessels and management contract for Bharat Pumps and compressors. The main reason for choosing this proposal is that BHEL operates under the MINISTRY of Heavy Industries, hence the legal processors involving the takeover of Bharat Heavy Plates and Vessels will be ease out as both are not only public sector but also fall under the same Ministry.