A STUDY ON WORKING OF

DIFFERENT DEPARTMENT
OF
BHARAT ELECTRINICS
LIMITED
BY-
RAHUL
CHAUHAN
08MBA077
UNDER
GUIDANCE OF
Ms. A.ANEETHA

Assistant Professor, VITBS

 CONTENTS

• Company Profile-BEL
• Unit Profile-BEL-KOT
• Mission Vision Value &Objective of BEL-KOT
• Organization Structure
• Major Milestones of BEL-KOT
• Product of BEL-KOT
• HR Department
• Marketing Department
• Strategic Challenges
• Finance Department
• Production Department
• Development & Design Department
• SWOT Analysis
• Recommendations

•
 COMPANY PROFILE

• From a humble beginning to a Navratna Company

• BEL is a PSU, under Ministry of Defense, Government of India
established on 1954.
• BEL has more than 360 products in its range from small
components costing a rupee to huge equipment costing about
Rs.60 Cr.
• Starting with a single Unit at Bangalore, BEL now has nine Units
spread across the country.
• Nearly 80-85% of the company’s annual sales turnover accrues
from products sold to Defence Services and the balance from
Civilian customers.
• The company’s dividend payment has been continuously
increasing and the company paid a dividend of 170% for the
year 2007-08.
• BEL became a Mini Ratna Category I company in February 2002.
Subsequently BEL has been got Navratna status in June 2007
NINE MANUFACTURING UNIT

UNITS ESTD. (YEAR) No. of

BANGLORE 1954 Employee
5927
GHAZIABAD 1974 2596
PUNE 1979 411
MACHLIPATNAM 1983 500
PANCKULA 1985 625
CHENNAI 1985 410
KOTDWARA 1986 720
HYDRABAD 1986 490
NAVI MUMBAI 1986 500
 PRODUCT MANUFACTURED BY BEL

BANGALORE


• Communication equipments – HF/VHF Man pack, Mobile & static Trans-

receiver/Transmitters
GHAZIABAD


• Antenna for primary & secondary radars

PUNE


• Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide

Battery packs
MACHILIPATNAM


• Passive night vision devices- Goggles, Binoculars, Periscopes,

KOTDWARA


• ULSB, BEST, SMART, HART

PANCHKULA


• VHF/UHF Ground to ground to air communication equipment

NAVI MUMBAI


• Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipment

CHENNAI


• Gun control & Drive System for Armored Fighting Vehicles

HYDERABAD


• Electronic warfare equipment

 INTRODUCTION OF UNIT BEL KOTDWARA

• Established in 1985-86 coincided with the formation of C-DOT in

August 1984 for development of electronic switching
equipments in India
• BEL-KOT is the 9th and the youngest Unit in the family of BEL.
• Soon after its inception, the Unit undertook manufacturing of
Radio Relay Equipment, a very complex equipment
• The Unit entered in the highly competitive market of telecom and
became one of the leading suppliers of C-DOT switching
equipments.
• It also received CII-EXIM Bank Excellence recognition for strong
commitment to TQM/Excel for three consecutive years: 2003,
2004 & 2005.
 Mission ,Vision, Values and Objective Of BEL-
KOT
 Vision
• To be a world-class enterprise in a professional electronics.
  Mission
• To be a customer focused globally competitive company in
defence electronics and in other chosen areas of professional
electronics, through Quality, Technology and Innovation.
 Values
• Putting customers first.
• Working with transparency, honesty & integrity.
• Trusting & respecting individuals.
• Fostering team work.
• Striving to achieve high employee satisfaction.
• Encouraging flexibility and innovation.
• Endeavoring to fulfill social responsibilities.



 INTRODUCTION OF UNIT BEL KOTDWARA Contd..


OBJECTIVES OF BEL-KOT

• To be a customer focused company providing state-of-the-

art products & solutions at competitive price, meeting
the demands of quality, delivery & services.
• To generate internal resources for providing growth.
• To attain technological leadership in defence electronics
through in-house R&D, partnership with
defence/research laboratories & academic institutions.
• To give thrust to exports.
• To create a facilitating environment for people to realize
their full potential through continuous learning & team
work.
• To give value for money to customers & create wealth for
shareholders.
• To constantly benchmark company’s performance with
best-in-class internationally.
• To raise marketing abilities to global standards.
• To strive for self-reliance through indigenization.
 Organization Structure of BEL-KOT

GM

AG M AG M DGM DGM Sr D G M M GR M GR MGR

D &E M KT PR O D CS Q &M S MM F &A P &A

M GR DGM
P &S O &T
 MAJOR MILESTONE OF KOTDWARA UNIT

• 1988 Plant inaugurated by Defence Minister

• 1990 Self Inspection Status
• 1993 Certification for ISO 9002:1987
• 1997 Golden Peacock award for quality
• 1997 ELCINA award for manufacturing
• 1998 Certification for 1SO 9001: 1994
• 1999 Excellence in professional Electronics, Deptt. of IT ,
Govt of India
• 2002 Corporate R&D award for ULSB MKII
• 2003 Certification for ISO 9001:2000 & ISO 14001:1996
• 2003,04 & 05 Strong Commitment to Excel “ in CII Exim
Bank Business Excellence “
• 2005 Platinum award in IMEA-2005 by Frost & Sullivan
• 2006 Certification for ISO 14001:2004
• 2007 SAP implemented
• 2008 Recommended for AS 9100 Rev B

 PRODUCT OF BEL- KOT WITH COMPETITOR

PRO D U CT PRODUCT DETAILS COMPETITOR

SMART , BEST , Data terminals with encryption facility Not
S till date, but
HART for use with radios MNCs like TADIRAN
ULSB MKII 15 line Automatic EPABX may come
ITI
SLSB MKIII 50 line Battalion level state of the art ITI, ECIL, IL, ALPHA
Exchange for Indian army
SARX MKII 600 line EPABX for application at command -
level
MAX XL AND Land line exchange based on C-DOT design ECIL, ITI, IL, UTL
SPARES
STM1 / 4 / 16 SDH based transmission equipment in ITI, Siemens,
Telecom network Fibcom,SCL&
SACU Encryption Data terminal with simultaneous Terracom
-
transmission ( TOT with M/s Elbit)
PRC - 6020 HF Radio trans receiver with encryption, -
TOT with M/s TADIRAN
IFDSS Microprocessor based fire detection & INTEL, Spectronics,
suppression system for tracked vehicle Southern
with detection & suppression in less Electronics and
than 140 seconds Ashoka Engg
 HUMAN RESOURCE DEPARTMENT
 Work culture in BEL KOT
• BEL KOT believes that performing work culture can be
nurtured by being a learning organization
• Series education, training, self development and career
development programme are done for Human resources
development.
Various activities done in BEL to promote continuous learning

are:
Individual learning

• Internal/ External Training, Work experience, On the job

Training, Job Rotation
Team Learning

• Improvement projects , Task force for specific task,

Seminars/ Conference
Organizational Learning

• Adoption of Business Excellence Model

• Best practices from other units/ industries

Various innovative methodologies to improve
employee’s response

 Unit has taken several initiatives for introducing innovative

methodologies to improve organizational response,
customer satisfaction, enhancing productivity and morale of
the employees in continuous improvement activities.
Innovative methodologies for HR Management

• Performance Management System

• Cross Functional team
• Job Rotation
• Self inspectors
• Excellence awards
• QC circles
 A four tier need identification system is institutionalized in
the unit. Based on assessment manpower planning is done.
Training records of all employees are maintained in
computer database
 Employees are sent for training to premier training
institutes like XLRI, Administrative Staff College, Tata
 participation in BEL-KOT
BEL KOT believes in involving and empowering people through
greater participation by giving them various opportunities .
Major employee involvement programs are:

• Quality circle, Suggestion scheme

• Some of the committees:
• Cultural , sports, safety, canteen, community centre, labor
welfare fund committee , death relief fund committee
• Quality circle in BEL was started in 1991 and has taken
deep root.
• Around 65 quality circles are active. The coverage of
employees is highest among all units of the company.
• More than 85% of employees are the member of QCC.
• Participation of QCC in various competitions like yearly Inter
Unit QCC Competition, CCI Competition and National QCC
Competitions give them immense opportunity to learn
and improve the process effectively.
• An attractive award scheme was introduced in year 2002
for QCC presentation and implementation of solution
generated
QCC represented in CII, QCFI and
Awards won
 Benefits and Reward for Employees in BEL
KOTDWARA
Compensation and benefits plans of BEL are comprehensive.BEL
enters with wage negotiation with Negotiating Trade Union
periodically according to the guidelines issued by Department
of Public Enterprises
Some of the rewards are:

• Appreciation or cash award for suggestion

• Awards for outstanding Performance
• Gifts after completion of 15 and 25 year of service
• Sponsorship for competition/ Seminars
• Awards for achievements in safety QCC and Housekeeping.
List of some suggestion and awarded during 2007-08
Name Suggestion Given Saving in Rs
 lakh
S.S. BISHT Use of rejected power supply of SACU project 10.91
VED PRAKASH Repairs of OLD thermal Strippers 4.90
BHOPAL SING Rectification of Filter Failure during leak test of 3.56
STARS-V FH
VED PRAKASH Reduction in rejection of display card used in 2.54
front panel assay of PRC
 Job Rotation
Unit has planned for rotation of 10 % 0f its
employee each year
 MARKETING DEPARTMENT
ORGANISATIONAL CHART

.
 GM (KOT)

MKT-1 MKT-2 Training, Demo & Exhibition

FGS & Excise Sales A /C

Defence ParamilitaryNew Projects New Market Excise FGS

Telecom ARC
 PROCESS FLOW CHART OF MARKETING
DIVISION
VISIT CUSTOMER & MARKET

TIE-UP WITH TECHNOLOGY PARTNER

TRAINING & AFTER SALES SUPPORT

QUOTE/TENDER PARTICIPATION
CUSTOMER

PAYMENT COLLECTION TECHNO COMMERCIAL EVALUATION

OBTAINING SUPPLY ORDER

BILL SUBMISSION OF CUSTOMER

DESPATCH OF MATERIALS FINALIZATION OF

EXECUTION OF PO/SO
CONTRACT & REVIEW
 MARKETING STRATEGY IMPLICATION AT BEL
KOTDWARA

It can be divided into following parts:



• Market Segmentation
• Targeting
• Promotion Strategy
• Positioning Strategy
• Competitive Analysis
• Diversification strategy



 SEGMENTATION

MARKET CUSTOMER EQUIPMENT %TURNOVER

SEGMENT ( 08 - 09 )
DEFENCE ARMY, NAVY, AIR FORCE, ULSB, STARS-V SMART, SACU, 68
ORDINANCE FACTORIES, PRC/VRC

MINISTRY OF BSF, CRPF, ITBP, STF, STATE BEST, HART, SMART 03

HOME AFFAIRS POLICE, SSB

CIVIL BSNL, MTNL, RAIL-TEL, CDOT EXCHANGE, STM 17

CAPART

OTHER UNIT OF BEL-PK, BEL-GAD, BEL-BG MUX, FILLGUN, ELOCTRONIC 12

BEL WARFARE ( SANKET)
 MARKETING TARGETING

• Need based customer:

• Segment Attractiveness
• Segment Profitability
• Segment Positioning
 POSITIONING
• Positioning is the act of designing the company’s product
and image to occupy a distinctive place in the minds of
target market and customer to increase the sale of their
product.
• This goal is to locate the brand in the minds of consumer to
maximize the potential benefit to the firm at less time.
•

Brand or Target Benefits Value Proposition

company
BEL-KOT customer
Defence, Reliable, best A company which is highly
Civil, coverage and reliable, have branches all
service over India, and gives service
on their product for 15 year
 Promotion

• Advertising
• Sales Promotion
• Direct Marketing
 COMPETITIVE ANALYSIS
Strategy may be of three types:-


• ENTRY INTO NEW PRODUCTS:-

• COST LEADERSHIP:-
• AFTER SALES SERVICES


SEGMENT COMPETITORS EQUIPMENT

Telecom Market ITI, PCL, IL, SIEMENS, FIBCOM, ICOM, Switching &
(BSNL) ORDYNE, TERRACOM Transmission

Defence Market ITI, ERRICSION, TADIRAN, HBL NIFE, EXCHANGE,

ALFHA, ECIL, SPANCO, PRECISION ENCRYPTION &
ELECTRONICS, SPECTRONICS, INTEL, IFDSS EQUIPMENTS
ASHOKA ENGG
DIVERSIFICATION STRAGY BY BEL-KOT
• a) NEW PRODUCT DEVELOPMWNT
• BEL-KOT is always known for development of new product
according to the need of the customer .
In order to develop new product BEL follow the general

pattern:
• They gathered the information from the customer relating
existing product and also about their need and used it for
the development of new equipment.
• Up gradation of existing equipment and product.
• Planning and imparting operation and maintenance training
to employees.
• Field visit of their technical personnel to impart in-situ
training and planning for early deliveries of ordered
equipments
Little equipment under development as a result of such

interactions is
• S-RAXMKII
• ULSBMKII
• IFDSS for T90 Tank
 DIVERSIFICATION STRAGY BY BEL-
KOT Contd……
 b) NEW BUSINES DEVELOPMENT GROUP
In view of rapid expansion of mobile phone communication,
disappearance of old product which are the strength of BEL and
increase of market challenges, New business development group
is formed during 2005-06 to enter into new business areas.
Therefore, advance technology partners are scanned and selected,

keeping in view their product portfolios, R&D strength and

leadership position in Global/ Indian market.
As a major step in diversification, BEL-KOT has started interaction

with Nuclear Power Corporation of India Ltd. IGCAR for

manufacturing of Nuclear Instrumentation .

Some of BEL major partners are :
FIELD PARTNER CORE COMPETENCY

Technology/ D&D TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune, NID- Switching, Data terminal, Radio, software,

• Ahemdabad, CDOT, UDAY, CORAl Power supply, Fire Fighting Sys.

Materials AMPHENOL, FRAMATOME, AT&S Connectors, PCBs

Manufacturing RHPL, DELTRON, RTL, BASANT INDIA, Local Subcontractor Manufacturing of line, Cards & Power
Supplies, SMT Assembly

Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD Human Resources Development
 STRATIGIC CHALLENGES

• Strategic challenges of BEL Kotdwara include:

• Fast changing technology
• Management of obsolescence of material
• Retention of competent engineers
• Cost reduction
• Timely delivery
• Productivity improvement
• Effective utilization of machines
• Human resource
• Motivation of employees
• Export marketing
 



 FINANCE DEPARTMENT
• BEL Kotdwara since inception is a profitable company. Its Finance
department is highly efficient and always looking for reducing
unwanted cost which leads to increase in the earning of company
• Turn Over:
For last five year turnover of the unit and PBT given in following fig.

respectively. 2006-07 saw a quantum jump in turnover to 415.73 Cr

and PBT to 70.24 Cr due to convergent Billing and CRM project of
MTNL. In year 2007-08 turnover went down to delay in placement of
some of major orders by various customers.
 Inventory ,Sundry Debtors PBT
• The rise in Inventory in 2007-08 was due to low level of direct
sales. Orders could not be released by Gov. i.e. for CAPART,
STM etc. Hence inventory piled up in anticipation of orders.
• In 2004-05 unit has achieved low sundry debtors turnover of
41 days. Thereafter sundry debtors figures shows increasing
trend due to lower turnover.
• In 2006-07 profit increased due to supply of equipments for
MTNL project which had 9% margin thus even if we exclude
Rs 25 Cr contribution of MTNL project, profit of the unit
shows steady trend. Year 2007-08 was exceptional in nature
due to low direct sales.
 Cost reduction, Cash Flow and
Depreciation
• Cost reduction technique has been deployed in a big way to
achieve significant cost reduction .Cost reduction of Rs 1175
lakhs have been achieved in 2004-05
• The net cash flow of BEL KOT has been fluctuating. From
high of Rs 64 Cr in 2004-05, it dipped to net flow of Rs
190 Cr in 2006-07 due to payment of vendors of MTNL project.
In 2007-08 due to sundry debtors collection in MTNL project net
cash flow touched to Rs 100 Cr.
•
• The depreciation bas been increased from Rs224 lakh in 2003-
04to Rs 353 lakh in 2007-08. The increase in depreciation
shows the additional investment done to ensure adequacy of
technology and infrastructure.

•
•
 PRODUCTION DEPARTMENT
• Key production process and its key characteristics are identified
through PFMEA (Product failure Mode and Effect Analysis)
technique which is followed all over the world.
Other Process in Production Department:

• FABRICATION- Machining, Turning, Drilling, Welding, Tapping

• ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion
coating
• PAINTING- Epoxy painting, Powder coating
• PCB ASSEMBLY- Hand soldering, wave soldering
• ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly
• TESTING- Card testing, Sub system/ system testing
• ENVIROMENTAL STRESS SCREENING- Hot and cold cycle,
Bump test, Vibration test, Leak test
SIX-SIGMA:

IN 1998 BEL had adopted Six Sigma technique

Some of the six-sigma project s completed during 2007-08 are listed

below:
• Reduction in cycle time for rejected item
• Improvement of Internet connectivity in BEL- Kotdwara
• Cycle time reduction for repairs of printers
 LIST OF SOME KEY MACHINE

• In circuit tester
• Reflow Owen
• Wave soldering machine
• CNC machining centre
• CNC JIG Boring machine
• CNC Turret Punch Press
• Electroplating/ Painting Plant
• Walk in chamber/ Environmental Stress Screening
Equipment

 DEVELOPMENT AND ENGINEERING
DEPARTMENT
PRODUCT AND SERVICES ARE DESIGNED AND


DEVELOPED BASED ON CUSTOMER

• To have in depth understanding of customer needs and
expectation, BEL has a policy of recruiting
experienced retired defence personals
• when customer requirement is immediate, technology
transfer is taken from global companies. During the
development of design, changes suggested by the
customer are discussed by and implemented on mutual
agreement.
• Similarly marketing and design groups keep close
interaction with paramilitary forces to understand their
requirement.
• The needs of civilian customers are known primarily
from market research.
The process flow chart for design and development
process is given below

R
Development
req
discussion
1)
With
2) T
customer by
3)
D&Eand MKT
ma
 SWOT ANALYSIS OF BEL
KOTDWARA
STRENGTH
1) BEL has got modern manufacturing facilities with test

instruments, set up at Kotdwara for manufacturing & supply of

telecommunication equipments.
2)R&D set up with qualified manpower, suitable for technology

development/absorption.
3)Known for quality & reliability of its products.

4)Known for its prompt after sales service,

5) Vast experience in the manufacturing of electronic equipment. The

parent unit established in 1954.

6)Highly trained, professionally qualified manpower trained to deal in

the latest technologies.

7)Well established organizational structure.

8) Availability of Central Research Laboratories at Bangalore &

Ghaziabad, working .
9) Young & dynamic top management at corporate level, ensuring

stability.
 

•
 SWOT Contd……..
WEAKNESS
1) The main weakness of BEL is its being owned Govt. of India under

ministry of defence. This makes decision-making slow.

2) BEL has been predominantly in defence sector, which has been

monopoly business. Hence, it does not have experience in

managing a competitive business like telecommunication
equipment manufacturing.
3) Lack of flexibility in manpower management, especially in pay

scales, promotion, recruitment policy, etc., thus resulting in brain

drain.
4) Lack of bold decision making in the area of investment & others

due to fear of various audits, both statutory & Govt. in the mind of
management.
5) Lack of accountability in top management, as personal stakes are

not related with the performance of organization.

 SWOT Contd…………..

OPPORTUNITIES


The following are the major opportunities available for BEL



Kotdwara:-
1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc.


2) BEL can go for technology transfer, ties up & JV due to



liberalization
3) Various other companies are also modernizing hence creating new


market for telecommunication equipment Railway, Power Sector,

Oil Sector, Defence, etc.
4) Telecommunication Sector has been recognized as one of the


important infrastructure sector essential for the growth of the

economy. This is resulting in the availability of potential market in
developing countries.

THREATS


1) Entry of private sector & multinationals in this field is making



competition very tough.

2) Due to overall reduction in import duties, the indigenous


manufacturing & direct import are competitive.

3) Imperfections in the market, leading to price wars & undercutting


of prices, resulting in sustained losses for telecommunication

 RECOMMENDATIONS

• One s area of concern is a sundry debtor. It is

recommended that either the operations in this area
be toned up with introduction of skilled, trained &
motivated work force or the subcontracting of this
operation to be done to outside agencies.
• Marketing department should be divided in different &
each sub department will be responsible for their
work. In the complex market, the divisional heads
are required to be given total responsibility of the
operations under them & be held accountable for
that.
• They should advertise their product through media.
• Targeting low margin high volume operations and
diversifying the product and business.
• Better HR policies to attract and retain the talent.
• Technological advancement.