Powering Up for the Global Market
Volume 19, Number 1 Article by Rishikesha T Krishnan March, 2007
Powering Up for the Global Market :
In conversation with Ashok K Puri, CMD, BHEL
Unlike the rest of the Indian market, which started opening up only in 1991, the power sector was opened up as early as the late 1970s. Forced to compete even in the home market with international giants, Bharat Heavy Electricals Limited (BHEL) was one of the few companies which were prepared to face the challenges of liberalisation. Established in 1956, BHEL is today the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector and has won several awards for environmental conservation, development of nuclear equipment, etc. Unusually for a public sector company, BHEL has been earning profits continuously since 1971-72 and paying dividends since 1976-77. In an insightful interview, the CMD, Mr Ashok Puri, spoke to Prof Rishikesha T Krishnan about the reasons for BHEL’s impressive track record and its plans for the future.
Having successfully leveraged the facilities and expertise already created for the power sector to create products for industry, BHEL has now reached a position where the challenge is no longer survival, but how to ramp up quickly in order to exploit the opportunities being offered by the Indian economy. It is outsourcing most of its low end technology manufacturing and concentrating on high tech manufacturing within the organisation. It is also looking at setting up joint ventures in areas like nuclear business with some of the international giants. In keeping with the international trend, the company is increasing the service content of its business and has set up a separate business group for services and spares. Ashok Puri describes BHEL’s strategies with regard to innovation and R&D; its HR policies and its open ‘can do’ culture that keeps its employee turnover one of the lowest in the country; and its plans for going global.
Reprint No 07103