State-run BHEL has kicked off a transformational strategy to address multiple business challenges including decline in its traditional market for thermal power equipment, disruptive technology developments and increasingly stringent customer requirements.
"The company aims to turn the current challenges into opportunities for the future. Thus, we have declared 2020 as the year of transformation", a Bharat Heavy Electricals Limited (BHEL) spokesperson told PTI.
In its over five-decade journey, BHEL has been a key contributor to India's industrial development, he said, stating that more than 50 per cent of the electricity generated in the country comes from BHEL-manufactured power generation equipment (including thermal, hydro, nuclear and gas-based generation).
As part of the transformation strategy, the company has taken up the task of reviewing and revamping processes, redesigning business models, expanding into new markets/businesses and developing a committed workforce with a strong leadership pipeline at all levels.
On the quality front, the company has recently launched a company-wide Quality First' initiative aimed at strengthening the quality culture, focussing on delivering world class products and services.
Pointing out that the company has played a critical role in core sectors such as defence, aerospace and transportation too, he said a detailed roadmap has been put in place for strengthening quality processes at all levels.
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.
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The company has, further, taken up review of designs, specifications and procurement processes for ensuring quality and competitiveness.
Also, the company is consolidating and reinvigorating recent initiatives in defence and aerospace, water, e-mobility, batteries, renewables and transportation verticals.
The spokesperson said that to improve the financial health of the company, emphasis is being laid on cash management with a number of cross functional teams set up to take up specific issues faced by the company.
The success of these efforts is already visible in improved cash collection, vacation of provisions, increased conversion of contract assets into collectibles and closure of long pending cases, he added.