BHEL &BHPV

Submitted by: Karishma aggarwal Nishtha khurana Aakash khurana Aachal gupta Aniket sinha Aditya sharma

BHEL
Bharat Heavy Electricals Limited (BHEL is an !ndian state"#wned

integrated p#wer plant e$uipment manu%acturer and #perates as engineering and manu%acturing c#mpany based in New &elhi' !ndia( BHEL was established in )*+,(
!t is #ne #% the #nly - mega .ublic Sect#r /ndertakings (.S/s #% !ndia

clubbed under the esteemed 01aharatna0 status(

!t has )+ manu%acturing divisi#ns' tw# repair units' %#ur regi#nal #%%ices'

eight service centers' eight #verseas #%%ices and )2 regi#nal centers and currently #perates at m#re than )23 pr#4ect sites acr#ss !ndia and abr#ad(
BHEL has been ranked the Ninth 1#st !nn#vative 5#mpany in the w#rld

by the ren#wned /S business maga6ine 7#rbes(

 BHEL has entered int# 72 technological collaborations with reputed .#wer E$uipment 8iants t# bring best #% the techn#l#gies t# !ndia( S#me #% the c#llab#rat#rs include 1H!' Alst#n' 8(E(' 9t# 1elara etc( Joint Ventures: BHEL had signed :; agreements with <NEB' K.5L' 8EN59s (=33*")3 ' 1adhya .radesh .#wer 8enerati#n 5#mpany Limited (1..85L etc( A :#int ;enture>Subsidiary namely N<.5"BHEL .#wer .r#4ects .vt( Ltd has been established with pr#m#ter?s e$uity h#lding #% 23@"23@ as #n A)(A(=33*( <he greatest strength #% BHEL is its highly skilled and c#mmitted ,*'A*3 empl#yees

BHPV
Bharat Heavy .late B ;essels Ltd( (BH.; is an engineering >

heavy %abricati#n c#mpany established in )*++ in ;ishakhapatnam' Andhra .radesh(

!t catered t# the speciali6ed e$uipment B plants re$uired %#r #il

re%ineries' %ertili6er plants' steel plants' de%ense sect#r etc(' and has c#ntributed m#re than Cs(+'233 1illi#n t# the Nati#nal eDche$uer in the last =3 years( BH.; achieved a turn#ver #% Cs =,3=(- 1illi#n in 7inancial Eear =3)=")A and has cr#ssed the Cs(='333 1illi#n turn#ver mark' a%ter a peri#d #% )3 years( <he net pr#%it during the same peri#d was Cs(A23(, 1illi#n(

BHEL & BHPV

!n August =33,'BH.; was incurring l#sses hence was

re%erred t# B!7C(b#ard %#r industrial and %inancial rec#nstructi#n

&ue t# vari#us %act#rs' there were heavy l#sses and the

c#mpany was declared sick by the B#ard %#r !ndustrial and 7inancial Cec#nstructi#n (B!7C in 9ct#ber' =332(
!n =33F'%r#m appr#val #% uni#n cabinet it was taken #ver

as wh#lly #wned subsidiary in )3 may'=33F(

REASON FOR MERGER

<h#ugh %inancial have impr#ved but there ids str#ng need

t# sustain c#mpetitive advantage

Ceali6e p#tential bene%it #% synergies which eDist between

BHEL and BH.; by addressing structural di%%icultyG

L#w m#rale #% w#rk %#rce !nability t# $uali%y %#r gl#bal tenders due t# sick tag Sl#wer pace #% 5A.EH eDecuti#n

MERGER
Iith the merger' BH.; will bec#me the )-th manu%acturing unit

#% BHEL( the unit will herea%ter be named as heavy plates and ;essels .lant (H.;. ' ;ishakhapatnam(
A%ter the /ni#n cabinet?s appr#val in 7ebruary =3)A' the merger

scheme was %iled with B!7C in 1arch =3)A and the entire merger eDercise was c#mpleted in a rec#rd time #% 2 m#nths therea%ter(
%inancial package #% ar#und Cs +=F cr#re' including Cs =A2 cr#re

pr#vided by BHEL %#r undertaking m#derni6ati#n at BH.;(

Post merger benefits

!n the neDt 2 years BHEL w#uld strive %#r ma4#r share #% this

business thr#ugh H.;.(

H.;. w#uld bec#me BHEL?s %irst strategically l#cated c#ast"

based plant which has a sea %r#nt %acility %#r %abricati#n and transp#rtati#n #% heavy e$uipment thr#ugh barge and shall be used by BHEL in transp#rtati#n #% heavy #ver dimensi#nal c#nsignments (9&5 %#r d#mestic and internati#nal #rders(
7urtherm#re' H.;. has already made an 9&5 #% ,,= t#ns %#r

an eDp#rt #rder #% =D)A2 1I K#niamb# .r#4ect in New 5aled#nia B shipped %r#m the sea side %acility' bringing c#mpetitive advantage t# BHEL

1erger t# give b##st t# p#tential business #pp#rtunities %#r BHEL w#rth #ver Cs( ),'333 cr#re in the neDt %ive years(
BHEL eDpecting an additi#nal business #% #ver Cs( 2',33 cr#re in the neDt

%ive years(

BH.; t# be devel#ped as a hub %#r industrial b#ilers( BHEL t# strive %#r ma4#r share #% the business with the estimated

business p#tential #% Cs( *'333 cr#re in the neDt %ive years(

1erger w#uld als# %acilitate BHEL?s entry int# the #il B

gas sect#rs(
.r#viding #pp#rtunities %#r BHEL t# enter int# the 8as

.r#cessing /nits( BHEL earlier presence in the industries like re%ineries' petr#chemicals B %ertili6ers(
BHEL t# be in a p#siti#n t# bid %#r the entire systems> sub"

systems(