b2b- rough draft

8/8/2019 B2B- Rough Draft

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Introduction

The purpose of this research project is to gain practical insights into the B2B marketing

practices in a company in the Capital goods sector. The company we have chosen for the

project is BHEL, which is a renowned company in the sector. The structure of the report is

as follows; Industry and company analysis followed by analysis of Market, product and

services. Research tools like CRISIL, Industry analysis service and latest articles in the

industry were used for the purpose. The company analysis focuses mainly on the products

being produced by the company, their technical complexities and the key users of the

products, the competitors of the company and the challenges and opportunities faced by the

company. This is followed by Marketing Management and Sales Management modules

which were drawn from the practical insights we gained in this project. Our study focused

on Organization of Marketing and Sales personnel in the company, different marketing

strategies followed by the company and the various aspects and challenge the company

faced in terms of Customer Management. The information provided in the report is based on

the

Industry Profile

The capital goods sector in India has been growing on the back of growth in the user

industries and several new projects being undertaken in various core industries such as

railways, power, infrastructure, etc.

Capacity creation in sectors such as infrastructure, oil & gas, power, mining, steel, refinery

etc, is driving growth of the capital goods industry.

The key growth drivers of capital goods Industry in the future can be summarized as follows

* Growth of the key user-industries

* Government¶s thrust on the power and infrastructure industries

* Focus on Nuclear power generation to bridge the gap between power demand and

supply.

The companies that fall under capital goods can be broadly categorized into1. Heavy Engineering Companies

a. Boilers & Turbines

b. Transformers, generators & switch gears.

c. Material handling equipment & Construction equipments

2. Medium Engineering Companies



3. Light Engineering Companies

a. Steel pipes and tubes

b. forgings

Another classification can be

a) Heavy Electrical Machinery

o Power and Distribution Transformers

o Generators & Switchgears

o Boilers & Turbines

o Electric Motors

o Alternators

b) Mining and construction equipment

o Earth moving machinery

o Construction Machinery

o Cranes

c) Machine tools

d) Process plants

o Chemical machinery

o Cement machinery

BHEL with its product portfolio including Boilers, Turbines, generator etc falls under

the Heavy electrical machinery category. The profile of the company is dealt in depth in the

following pages.

Company Profile

BHEL is the largest engineering and manufacturing enterprise in India in the energy

related/infrastructure sector today. Since its inception more than four decades ago, BHEL

has been at the helm of indigenous Heavy Electrical Equipment industry in India with a

sustained track record of earning profit since 1971-72. BHEL has grown in stature over the

years with continued inflow of orders, manufacturing prowess, and continued thrust on

technology leading to a strong presence in domestic and international markets as a majorsupplier of power plant equipment besides establishing substantial inroads in select segment

of products in Industrial sector and Railways. The company has realized the capability to

deliver 15,000 MW p.a and the capacity expansion programme is underway to reach 20,000

MW p.a by 2012. Currently, 74% of the total power generated in the country is through

BHEL sets. BHEL caters to core sectors of the Indian Economy viz., Power Generation and



Transmission, Industry, Transportation, Renewable Energy, Defence, etc. The wide network

of BHEL¶s 15 manufacturing divisions, 2 repair units, 4 power sector regions, 8 service

centres, 5 regional offices, subsidiary and a large number of Project Sites spread all over

India and abroad enables the Company to promptly serve its customers and provide them

with suitable products, systems and services - efficiently and at competitive prices. The

company has entered into a number of strategic joint ventures in supercritical coal fired

power plants to leverage equipment sales besides living up to the commitment for green

energy initiatives. The Quality Systems as per ISO-9000 have taken deep roots in BHEL.

The company has made significant achievements in Total Quality Management (TQM) by

adopting the CII/EFQM model for Business Excellence.

With six CII-EXIM Commendations secured during 2009-10, BHEL stands highest among

public and private sector companies in the country. In recognition to BHEL¶s excellent

performance on sustainability development, the CII-ITC Sustainability Award 2009 was

conferred on BHEL¶s Hyderabad unit. In recognition of BHEL¶s contribution to the greening of

the Lakshadweep Islands, BHEL was awarded the µIndia Power-Jury Award 2009¶. For the

fourth consecutive year, BHEL¶s performance was recognized by the prestigious publication

µForbes Asia¶, which featured BHEL in its fourth annual µFabulous 50¶ list of the µBest of Asia-

Pacific¶s Publicly-Traded Companies¶ with revenues or market capitalization of at least US$ 5

billion, having highest long-term profitability and sales & earnings growth. BHEL is one of

the only four Indian companies, ranked at 590, in µThe Global Innovation 1000¶ of Booz &

Co., a list of 1,000 Publicly-Traded Companies which are the biggest spenders on R&D in the

world. Significantly, BHEL won EEPC¶s Top Export Award for the nineteenth year in

succession. BHEL and its 6 units were awarded µICWAI Awards for Excellence in Cost

Management¶ for 2009 ± the maximum among both public and private sector companies.

BHEL is the only Indian PSU to be recognized as Star PSU Company of the year by leading

business daily µBusiness Standard¶.

Key Competitors

In a growing economy like India, it¶s 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 in India is by BHEL manufactured equipments. The other competitors of

BHEL are Suzlon Energy, BGR energy, BEML, AIA engineering, Alfa Laval and Praj

Industries. But, they are small in size and do not have a complete range of products as that

of BHEL. Bharat Heavy Electricals Ltd, is confident of retaining its competitive edge. This will

come from its vast service network in the short run and increased technology prowess in the

long run.

Products and services offered

Bhel offers products across 4 major verticals; Power generation, Transportation,

Transmission and General equipment for industries. Each vertical is briefly explained below.

In Power generation segment, BHEL is the largest manufacturer in India supplying a wide

range of products & systems for thermal, nuclear, gas and hydrobased utility and captivepower plants and providing services from Concept to Commissioning to meet customer

requirements. BHEL-supplied utility power generating sets have gone up to 91731 MW

maintaining the record of nearly twothird of the overall installed capacity and around

threefourth of the power generated in India. BHEL supplies steam turbines, generators,

boilers and matching auxiliaries up to 800 MW ratings including sets of 660/800 MW based

Products

offered

Power

Generation

Transport

Transmission

General

equipment



on supercritical technology. BHEL has facilities to go up to 1000 MW unit size. BHEL-make

steam turbines are designed to achieve higher efficiencies. To make efficient use of high ash

content Circulating Fluidised Bed Combustion (CFBC) boilers for thermal power plants. BHEL

is the only Indian company capable of manufacturing large-size gas-based power plant

equipment, comprising advanced-class gas turbines up to 289 MW (ISO) rating for open and

combined-cycle operations. BHEL engineers and manufactures custom built hydro power

equipment. Its range covers turbines of Francis, Pelton and Kaplan runners, pump turbines,

bulb turbines and mini-micro hydro plants, with matching generators, for different head-

discharge combinations.

BHEL is a leading manufacturer of a variety of electrical, electronic and mechanical

equipments to meet the demand of a number of industries, like metallurgical, mining,

cement, paper, fertilizers, refineries & petrochemicals etc., besides captive/industrial power

utilities. BHEL has supplied systems and individual products including a large number of co-

generation Captive power plants, Centrifugal compressors, Drive Turbines, Industrial boilers

and auxiliaries, waste heat recovery boilers, Gas turbines, Pumps, Heat exchangers,

Electrical machines, Valves, Heavy castings and forgings, Electrostatic precipitators, ID/FD

fans, Seamless pipes etc., to a number of industries other than power utilities. BHEL has

also emerged as a major supplier of controls and instrumentation systems, especially

distributed digital control systems for various power plants and industries. BHEL is the

leading company in the world having mastered the art of burning Naptha in Gas Turbines.

The Centralised Stamping Unit (CSU), a new manufacturing facility at Jagdishpur, has been

made operational to meet the increased demand of stampings, a critical part of electrical

machines, due to the growth in business and market demand for generators & electrical

motors. The Industry sector is fully geared to execute EPC contracts for captive power

plants from Concept to Commissioning.



BHEL¶s involvement in the transportation sector has been marked with rapid growth. The

largest railway network of the world, the Indian Railways, is equipped with traction

equipment built by BHEL. Most of the drives of the Railways, whether conventional DC or

state-ofthe-art AC or diesel powered, are equipped with BHEL¶s traction propulsion system

and controls. The range of products supplied by BHEL includes traction motors, traction

generators/alternators, transformers, substation equipment, vacuum circuit breakers,

locomotive bogies, smoothing reactors, exciters, converters, inverters, choppers and

associated control equipment, viz., master controllers, chopper controllers, brake and door

equipment, electronic controls including software based controls extending to rolling stock

and other transport applications.

BHEL is present in the field of power transmission in India with a wide range of transmission

systems and products. The products manufactured by BHEL include Power transformers,

Instrument transformers, Dry type transformers, Shunt reactors, Vacuum and SF6

switchgear, Gas insulated switchgears, Ceramic insulators, etc. Major critical hardware such

as capacitor banks, circuit breakers, control and protection equipment and thyristor valvesare in its manufacturing range.

Market Opportunities

Powergeneration

Steam

Turbines

Boilers

MatchingAuxilaries

Controlsystems

Generators

GeneralEquipment

Centrifugal

compressors

Heatexchangers

Valves

Heavycastings

Seamlesspipes

Transmission

Traction

Motors

Choppers

VaccummCircuit

breakers

Locomotivebogies

Convertersand invertors

Transportation

Transformers

Switchgears

Insulators



The market opportunities in the domestic scenario are discussed below. BHEL has

started the supply of equipment for Dual Voltage EMUs with 3 phase technology. Diesel

Multiple Units, underground Metro-rail system at Kolkata, Electric Multiple Unit (EMU)

service at Mumbai, Kolkata, Chennai and Delhi are all operating on drives and controls

supplied by BHEL. With new Metro rail systems proposed in major cities like Hyderabad,

Bangalore and Ahmedabad, BHEL has new opportunities in this sector.

BHEL fabricates space-grade solar panels and space quality batteries for satellites launched

by ISRO. Significantly, 12 Satellites launched by ISRO are powered by BHEL manufactured

Solar Panels & 7 Satellites with BHEL manufactured Batteries. BHEL is also trying to supply

to other international space agencies.

In order to address the emerging opportunities in 765 kV transmission systems, BHEL has

developed a reliable and compact Gas Insulated Current Transformer (CT) for Ultra High

Voltage (UHV) substation applications and designed Transformer and CVT for 1200kV

transmission substation which are slated for field testing at Bina test station of Power Grid.

High Voltage Direct Current (HVDC) systems have been supplied for economic transmission

of bulk power over long distances.

Bucking the uncertainties surrounding the global economic recovery, BHEL has maintained

its references in more than 70 countries across the world and is poised to expand its

footprints in new market segments. These references encompass almost the entire range of

BHEL products and services, covering Thermal, Hydro and Gas-based turnkey power

projects, Substation projects, Rehabilitation projects, besides a wide variety of products like

Transformers, Compressors, Valves, Oil field equipment, Electrostatic Precipitators,

Photovoltaic equipment, Insulators, Heat Exchangers, Switchgears, Castings and Forgings

etc. The company has been successful in meeting the demanding requirements of

international markets in terms of complexity of work as well as technology, quality and

other requirements. BHEL has proved its capability to undertake projects on fast-track

basis.

Continued focus on After Sales Services led to orders for Spares & Services from Oman,

Saudi Arabia, Indonesia, UAE, Nepal, France, Sri Lanka, Kazakhstan, Iraq and Libya. The

company has also established its versatility to successfully meet the varying needs of



different sectors, be it captive power, utility power generation or the oil sector. Besides

undertaking turnkey projects on its own, BHEL also possesses the requisite flexibility to

interface and complement other international companies for large projects, and has also

exhibited adaptability by manufacturing and supplying intermediate products.

Strategic alliances have been established in target export market positioning as a regular

EPC service provider. Reference for Largest ever order for a Hydro power plant has been

created by securing order of 1200 MW (6x200 MW) Puntasangchhu-I Hydro Power plant

from Puntasangchhu Hydroelectric Project Authority, Bhutan. International visibility is also

exhibited by participating in International exhibitions in Egypt, Vietnam, Syria & South

Africa and wining best exhibitor award.

MARKETING MANAGEMENT (ORGANIZATION & ROLES)

BHEL has initiated steps in the direction of meeting global standards reaching international

level of competitiveness through technological upgradation, quality improvement, and

improved aftersales service. Marketing Collaborations, Joint Ventures and Joint Working

Arrangements are being encouraged to upgrade technology for better productivity and boost

in exports. BHEL is implementing a Customer focused Marketing setup that comprises of

Single Point Contact & Long Term Partnerships.

The work of a Marketing Department at any BHEL unit commences when they fill a tender

and the purchase order is received by them. After receiving the purchase order, the

marketing department works within the guidelines that are mentioned in it to fulfill the

order.The typical guidelines in a purchase order are the drawing and manufacturing plan,

general and special terms and conditions, contract price, statutory obligations, packing &

despatch details etc.

Marketing Initiatives:

Some of the marketing initiatives that have been recently taken up by BHEL are:

Understanding Customer Requirements & Expectations

Developing NewProducts & Services

Joint Improvement Projects with Customers & Partners

Sales Promotion Activities



ORGANIZATION STRUCTURE

Every unit of BHEL has an executive director under whom there are several product

managers and functional managers.There is a separate product manager for each product

category some of which are listed below:

TCGT(Steam Turbine, Compressors & Gas Turbine)

Electrical Machines

Heat Exchangers & Fabrication

Pulverizers

Oil Rigs

Pumps

Switchgear

FUNCTIONS OF PRODUCT MANAGERS:

Commercial Production

PPC

Design, Engineering and R&D

MPC

Product Specific Stores

Sub Contract

Process Technology

Shop Maintenance

Product Purchase

Similarly there are other functional managers for the following roles:

Quality(Testing, QC, QA & Labs, TQM, Safety)

GT-Engineering

HR

Central MM

Vigilance M&S, F& P

Planning & Development

Industrial Engineering



PRICING POLICY

BHEL is a Central Public Center Enterprise (CPSE) and therefore its pricing policies are

subject to Government regulations. In general, the government fixes/administers the price

of goods (and services) being produced by public sector entities based on:

The true costs of goods and services,

Cross -subsidization between one group and another or between one sector and

another,

Below the costs if that can stimulate demand under conditions of excess/unutilized

capacity,

Differential prices norm for peak and off-peak demand and

Different prices/ multi-tariffs to include discounts for purchase of larger volumes or

for various other incentives.

However, being more or less a monopoly, BHEL still exercises a fair bit of control over its

pricing policies. Under the constraints it is made to work, it still makes an effort to fix the

price of its products at a level that will maximize the mark-up as well as the gross profits.

Moreover, it has always received the benefit of favorable policies of the Government which

have been consistently skewed to its advantage, a recent exception being the modification

of the Price Preference Policy done by the Power Ministry.

Power Equipment forms a major chunk of BHEL¶s portfolio of products.BHEL has almost

always enjoyed the benefit of the Government¶s Price Preference Policy according to which

state-owned companies that float equipment purchase tenders have to place orders with

public sector equipment makers if the price quoted by them is within 15% of the lowest bid.

So, BHEL has been ensuring quoting a price within this band and bagging almost all

orders.But now, with the Power ministry deciding to withdraw this policy and go for a free

market kind of a competition, BHEL might have to rework its pricing strategy.Although,

BHEL is renowned for quoting the lowest prices for many projects because of its scale of

operations and productivity levels, it will have to improve even more on these parameters

to stay competitive.

PROMOTION STRATEGY



BHEL being a PSU has always enjoyed the benefit of Government backing which makes the

process of getting orders significantly easy. Apart from being one of the oldest and largest

state-owned engineering and manufacturing company in India in the energy-related and

infrastructure sector, it is also a monopoly which reduces the need for product promotion

even more.Its advertizements are restricted to small tender notices in news dailies and

some other print communications during the opening of a new plant or during the

declaration of financial results. Its promotional strategy is restricted to wooing international

clients which again has not been a very difficult task so far because of its competitive

pricing, India¶s export policies and the reliable image it enjoys in the market. However, this

is likely to change in the time to come with China expanding its scale of operations and

offering quality products at cheaper prices, which is a manifestation of the subsidized export

policy of their government.

CHANNEL STRATEGY

BHEL procures materials and components on a regular basis from suppliers spread all over

the world. For this purpose, BHEL is backed by a strong supplier-base which is continually

updated.

New suppliers and traders (only those who are sole/authorized representatives of OEMs)

both from within India and abroad, who would give BHEL competitive inputs, are added to

the list of existing suppliers periodically. For an initial assessment and empanelment with

BHEL, suppliers are made to register by submitting completed forms to respective units.

Vendor Development

Vertical integration is practically non-existent in BHEL at present, but they have ancillaryunits in non-core areas of machining and welding of non-critical components. However, the

company does have programs to develop vendors and recently a global meeting of about

200 vendors was held at Hardwar.

Some of the most recent initiatives taken up at BHEL to build long term relationship with

suppliers are:



Signing of MOU¶s for freezing of Technical & Commercial terms and conditions

leading to the shortening of procurement cycle.

To enhance the value addition to the suppliers, BHEL has hosted a B2B portal which

serves as an important medium to share purchase related information.

Introduction of Online Supplier¶s Registration system.

Conducting Vendor Satisfaction Survey every year to capture the expectations of

vendors/suppliers.

Tender Room Computerization.

Introduction of e-payment system to bring in more transparency in the process.

Categorization of vendors based on micro, small & medium enterprises.

SALES FORCE MANAGEMENT

SALES FORCE ORGANZATION:

BHEL produces a variety of componets under different categories like Power

generation, General Equipment, Transmission and Transportation. So the product line is too

long and also the markets to which BHEL caters also is a diversifed market (i.e) given the

fact that BHEL holds almost 50% of market share in India, BHEL has organized its salesforce based on the diversity of the markets being served.

Another factor to be considerd to orghanize the sales force is the nature of buying

behaviour of the customers. BHEL has been catering to the needs of both the Public and

private companies andso it has designed its sales force based on the buying behaviour of its

clients as well.

Being a large industrial organization that markets diverse product lines BHEl uses all

the three types of Sales Organization to some extent.

Geographical Organzation

BHEL has its units in different locations like Trichy, Ranipet, Hyderabd, Haridwar,

Bangalore etc. in India. The units in different locations specialise in different products

required for power generation, Transmission and Transportation. Besides catering to the

needs of huge organisations, BHEL also caters to the needs of small and medium players in

different regions. For example BHEL Trichy has been supplying boilers of different capacities



(predominantly <800MW) to small and medium players across Tamilnadu. Also it has been

supplying its boilers to units of NTPC in Tamilnadu ± Ennore Thermal power plant and Vallur

water desalination plant etc. So it makes perfect sense for BHEL to adopt Geographical

Organization in designing its sales force. In Geographical Organization each sales executive

sells all the firms¶ products ± here for BHEL trichy, the products will be boilers ± (utility

boilers, Industrial boilers, Heat recovery steam generators etc.) in Tamilnadu. Thus it can

be seen that though it is not a full fledged geographical organization of sales force where

the sales executives are expected to sell all the products of BHEL like boilers, turbines,

transformers etc, to an extyent geographical organization is practised.

PRODUCT OR GANIZATION

As discusesed above BHEL has a long product line and hence the most siuited selling

organization for BHEL is Product Organization. Apart from the long productline BHEL¶s

products are diverse and technically complex. So a salesperson if asked to sell all of BHEL¶s

products in a particular geography may have to get himself trained in all the technical

aspects of all the products for which the cost incurred is high. Instead in BHEL, the sales

force are organized mostly based on the products. (i.e) each individual sales force is being

assigned to each product and it is ensured that the sales personnel are being sufficiently

trained in the technical details and specifications of each product being handled by the

personnel.

In the current scenario where competition from private players is intense, the private

power projects look for quality components but at a cheap cost. For example, for one of the

Ultra Mega power projects of Reliacne power, the company imported turbines from China

and procured boilers from BHEL, Generators from ABB. So, it has increasingly become

essential for the B2B companies to train their sales personnel to convert sales lead. Also

BHEL has been significantly losing market share after the entry of private players like L&T in

power equipment business. So BHEL has started focusing on strengthening its Product

based salesforce. BHEL has designed its salesforce in acustomized manner. That is BHEL

has dedicated sales force to sell each of the products like boilers, turbines, generators,compressors, heat exhangers etc because they themselves have a sigificant market size.

But for products like valves, castings, seamless pipes, insulators etc there is one sales force

that is collectively managing the sales of the above mentioned products.

MAR KET CENTER ED OR GANIZATION:



This is also one of the Sales force organizations adopted by BHEL. Take the case of

NTPC. NTPC is the largest thermal power producer in the country. Both being PSUs NTPC

prefers to place orders for its requirements to BHEL. NTPC requires boilers, turbines and

generators & transformers to setup each of its units. So it is essential for BHEL to train its

sales force to understand the requirements of thermal power market. Similarly BHEL is now

foraying into Nuclear power equipments. To capture the market for nuclear power, it is

essential for BHEL to understand the requirements of this new market. So BHEL focuses on

training its personnel in understanding the requirements of this market.

Besides all these the sales BHEL also organizes its sales force based on project

requirements. There may be occasions when a part of a huge project may be sourced

completely to BHEL due to time constraints. So BHEL has the responsibility to develop the

outsourced part of the p[roject completely. So to cater to such niche markets, a small part

of the sale force has also been trained to undersatnd the project requirements. This can be

closely associated with Market-centerd organization.

As a result of this complicated sales organization, BHEL structured its salesforce in a

matrix structure as shown below.

CUSTOMER MANAGEMENT:

BHEL¶s customers are mostly huge Public sector organizations. NTPC is one major

customer of BHEL. BHEL realizes its 80% revenues from 20% of its customers.Hence Key

Account management is very crucial for BHEL. However initially they were following a

product oriented approach even for large accounts suchas NTPC. This leads to inefficiencies

as there are chances for multiple points of contact for the same customer for different sets

of needs. This had led to poor customer service. Later BHEL recognized this and addressed

this issue by revamping its cuystomer management system. BHEL adopted key account

management to serve the customer better. So whatever be the need of the customer there

is only a single point of contact for the customer in BHEL ± the Account Manager of thatcustomer. He takes care of all the needs of his customer and helps in addressing the

customer¶s concersn as early as possible. Also this has led to better customer relationships

as the Account manager can provide customized service and value added services to his

value customer. This was one of the reasons how BHEL became a preferred supplier for

NTPC.



Key Account Management is an additional responsibilty given to Regional Sales

Managers or Heads of Sales in different geographical territories. The number of key

accounts is very low and hence the responsibility is shared by the Regional Sales Heads

themselves.

As far as the relationship bertween the customers and BHEL are concerned, it is

collaborative relationship. The customers prefer this relationship with BHEL as there are

minimum alternatives for them to change and BHEL is a pioneer in power equipments

manufacturing. Further the complexity of the products being manufactured by BHEL is also

high. To manage such relationship with its customers, BHEL¶s sales force and technical

pwersonnel frequenty visit the customers to strengthen the relationship. However after the

privatisation of capital goods sector, and the availability of cheap Chinese imports have

provided other alternatives for the potential market of BHEL. So BHEL may not be able to

sustain the image of a pioneer in the capital goods sector for too long. Hence the

Collaborative customers of BHEL may soon become Transactional customers and hence

BHEL may have to redesign its Customer Management processes.

AFTER SALES SUPPORT:

HERP:

BHEL¶s range of services extend from project feasibility studies to after-sales-service

successfully meeting diverse needs through turnkey capability.

The company has 14 manufacturing units, 4 power sector regional centers, 8 service

centers and 18 regional offices besides project sites spread all over India and abroad.

In line with BHEL's objective of providing consistent service at doorstep, HERP (Heavy

Equipment Repair plant) was established in the vicinity of power stations. Starting as a

manufacturer of O&M spares for boiler auxiliaries, repair activities took off on firm footing in

1990 when rebabbitting of TG set bearings was taken up. Since then, rebabbiting of different kinds of bearings including import substitution (NCL Bearings) as well as bearings

of unconventional synchronous condenser have been carried out to the entire satisfaction of

the customers. HERP Varanasi has taken up various critical jobs from near by power plants

viz: NTPC Tanda, Unchahar, UPRVUNL Obra, Anpara, Parichha and helped them to achieve

maximum availability of their units.



HERP is also situated at the center of the largest power belt of northern region. This power

belt supplies 10650 MW of power to the country. In the line with BHEL¶s of providing

constant service at their doorsteps, the idea of establishing repair shop in the vicinity of

power station was mooted objective.

Accordingly, two repair plants at Bombay & Varanasi came into existence.

Now HERP manufactures turbine spares, tools & tackles complete spares of bowl mill XRP

623,803,883 & 1003. The unit has a plan to add Constant load hanger, Variable load hanger

& condensate polishing unit in near future.

Through small in size, HERP has been in adequate attention to all the facts of plant

operation like computerization, inventory control, quality assurance. In order to channellies

the creative energy of employees suggestion scheme and quality circle and productivity

improvement project are in operation.

O&M SERVICES:

BHEL has demonstrated, time and again, its expertise in timely manufacture, supply

and commissioning of power plants on EPC basis, that includes O&M (till handing over) and

providing life-long after-sales support services. In addition, limited O&M services were

provided for specific contracts. Hence, in its drive to explore new business opportunities, itbecomes only logical for BHEL to expand its core competencies and provide Total O&M

Services for Power Plants, to deliver the maximum return to Owners of the power plants.

Advantages to Power Plant Owners

Being an Original Equipment Manufacturer (OEM), the O&M services from BHEL would offer

the following advantages to the power plant Owners:

Direct access to BHEL¶s expert knowledge.

Ability of BHEL to mobilize experts and train local engineers quickly, leading to reliable

operation without delay.

Fast communication between the Operator and the OEM.

Assured and timely availability of spares for long periods.



Equipment Operation and Maintenance assured to be in line with the OEM's

recommendations.

These advantages would translate into higher availability and increased service life of the

power plant equipment, at reduced cost for Owners of the power plants.

Thus BHEL has been investing so much in providing post sales and support to its

customers. This is viewed as a key strategy of BHEL to retain its customers.

b2b- rough draft

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