BHEL Pioneer Case Challenge 2017

By
Team : Innovative Crusaders
College : Xavier Institute of Management, Bhubaneswar
Members : Akhilesh Mishra (UM17072), Akul Saxena (UM17075), Punyamurthula Kaushik (UM17102)
 Proposed Products For Diversification
Bullet Train: High-speed rail is a type of rail transport that
operates significantly faster than traditional rail traffic, using
an integrated system of specialized rolling stock and
dedicated tracks. While there is no single standard that
applies worldwide, new lines in excess of 250 kilometres per
hour. The train on such a track is likely to have two
synchronised engines (power cars), one at either end. A large
part of route alignment is kept straight to support high speed.
Rail Gun: A device that uses electromagnetic force to
launch high velocity projectiles, by means of a sliding
armature that is accelerated along a pair of conductive
rails. It is typically constructed as a weapon and the
projectile normally does not contain explosives, relying on
the projectile's high speed to inflict damage. The railgun
uses a pair of parallel conductors, or rails, along which a
sliding armature is accelerated by the electromagnetic
effects of a current that flows down one rail, into the
armature and then back along the other rail.
Lithium-Ion Batteries: A lithium-ion battery or Li-
ion battery is a type of rechargeable battery in which
lithium ions move from the negative electrode to the
positive electrode during discharge and back when
charging. Li-ion batteries use an intercalated lithium
compound as one electrode material, compared to the
metallic lithium used in a non-rechargeable lithium
battery. The electrolyte, which allows for ionic
movement, and the two electrodes are the constituent
components of a lithium-ion battery cell.
Indian market opportunities : High speed rails
High speed rail corporation of India limited awarded consultancy contracts for
feasibility study for Diamond Quadrilateral network of high speed rail
corridors

Delhi Amritsar high speed rail corridor under feasibility study

Delhi- Chennai rail corridor

Chennai Bangalore- Mysore rail corridor

Mumbai Ahmedabad rail corridor

Product High speed rail advantages

Bullet 1) Preferred mode of travel between 400 to 800 kms over air and road.
Train 2) High Safety and less accidents as per Japans operations data
3) Japans Tkaid Shinkansen and Frances TGV Sud-Est, recouped their
costs decades ago and have been continually, and extremely profitable
4) Drastic change in economic and demographic landscape in the areas
where high speed rail are laid
5) Cities with a Shinkansen station saw an increase of about 155% in their
municipal receipts between 1980 and 1993, compared with a national Indian Railways revenue growth has been strong over
the years; during FY0716, revenues increased at a
average of about 110% and 75%, respectively, for cities near the Thoku CAGR of 6.4 per cent to US$ 6.9 billion in FY16
line without the service.
During FY 2016-17, the passenger traffic of Indian
Railways grew 0.8 per cent to 8,219.38 million
Market opportunities in defense sector: Rail Gun

Indias defence industry continues to gain traction with the Governments recent policy changes and reforms such as the Defence
Procurement Procedure (DPP 2016) and changes in foreign direct investment (FDI) regulations.
The Government has a clear vision for an indigenous defence industry, and these reforms can be attributed to its intent to change the status
quo that was existing till 2014 and to support the Make in India campaign.
The DPP 2016 introduced a new category for equipment Buy (Indian - IDDM), where IDDM stands for Indigenously Designed, Developed
and Manufactured, to provide a greater thrust to Make in India in defence production. Under the new IDDM category, a product will be
required to have at least 40% indigenous content if it is designed in India or at least 60% indigenous content if the design is not indigenous,
making it the most preferred category
Market capitalization of some of the defence companies in the last three years increased at a CAGR of ~34%, outperforming that of the Nifty
(9.4%) during the same period. The strengthened financials of these companies along with the potential order book in the coming decade
have clearly had an incremental effect on the growth of the market capitalization of these companies.
Market opportunities in Li-ion batteries

India Lithium-ion Batteries Market to Grow at over 35% CAGR till 2020
According to the recently published TechSci Research report India Lithium-ion Battery Market Forecast and Opportunities, 2020 the
market for lithium-ion (Li-ion) batteries in India is projected to witness double digit growth at over 35% CAGR during 2015-20.
Penetration of electric vehicles, substantial investments in clean and renewable energy sources, and the recently launched Make in
India campaign are expected to boost the demand for Li-ion batteries in the country through the forecast period.
Continuous increase in smartphone and electric vehicle penetration in the country has led to entry of major players like Panasonic and
China BAK already have plans to set up their manufacturing units in various parts of the country
Mission Plan 2020, which projects to have 6-7 million electric vehicles running on Indian roads by 2020. Smart city projects and Green Energy
Corridor for power generation from renewable sources would add to the overall installed capacity, thereby increasing the demand for energy
storage batteries.
As of now, India predominantly depends on China, South Korea and Taiwan for Li-ion batteries since the country does not have indigenous
manufacturing operations for these batteries.
Berkshire Hathaway published "India Lithium Ion Batteries Market (2017-2023): Forecast by Applications, Materials, Power Capacity,
Components, and Competitive Landscape
The report thoroughly covers lithium ion batteries market applications, components, material types, and power capacities.
Stringent regulations on auto-emission and fuel efficiency along with awareness towards non-hazardous wastes have resulted in a shift
towards Li-ion batteries in India.
Government efforts towards promoting the adoption of EVs, growing renewable energy storage projects, surging demand for quality &
uninterrupted power supply are some of the key factors which are contributing to the growth of Li-ion batteries market in the country;
moreover, developing consumer electronics sector in India is likely to complement the growth of this market.
Increasing awareness towards portable and stationary energy storage coupled with government's push towards solar and wind projects
are expected to contribute to the growth of Li-ion battery market over the coming years.
Government efforts towards adoption of electric vehicles such as Faster Adoption and Manufacturing of Hybrid & Electric Vehicles
(FAME) scheme as well as tax exemption on EVs are anticipated to provide much needed boost to the market.
Synergy Analysis with HEEPs capabilities
Heavy Forging and Casting facilities: BHEL has
one of the largest forging facilities enough for
bullet trains and rail gun.
Metal Cutting / Forming / Welding Facilities:
They are very useful for the parts used in rail
gun, bullet trains and batteries.
World class Software for Solid modelling: This
will help in futuristic designs of the various
prototypes to be made for the products.
Electric locomotives: BHEL already has huge
experience in production of railway engines,
this will definitely help in adding faster
adoption to manufacturing processes.
The 'Make in India' initiative in the defence sector is
opening up large opportunities in naval and field
guns, sub-marines, etc. BHEL is actively pursuing
these opportunities by partnering with global OEMs.
Battery Based energy storage systems and with
favourable reducing price trend, Li-Ion shall
continue to be leading technology for Energy
Storage Systems in the future too.
ISRO and BHEL are already working on cost-effective
Lithium-Ion batteries. The batteries which have
been developed by VSSC (Vikram Sarabhai Space
Centre) is used for the launch of PSLV and GSLV.
Material Handling Facilities: Apart from
conventional Electrics, ISG offers equipment and
systems specific to the needs of the Mining and
Material Handling industry. ISG is the largest
supplier of electrics on turnkey basis to various
mines and material handling plants all over India.
Sources :
1. https://en.wikipedia.org/wiki/Railgun
2. https://electrek.co/2016/11/01/breakdown-raw-materials-tesla-batteries-possible-bottleneck/
3. http://www.bain.com/publications/articles/embracing-the-next-energy-revolution-electricity-storage.aspx
4. https://economictimes.indiatimes.com/industry/transportation/railways/everything-you-wanted-to-know-about-bullet-
trains/can-these-trains-run-on-conventional-tracks/slideshow/60731142.cms
5. http://www.forbesindia.com/blog/business-strategy/dawn-of-a-new-era-in-the-indian-defence-industry/
6. http://www.businesswire.com/news/home/20170814005673/en/India-Lithium-Ion-Batteries-Market-2017-2023--
7. https://www.techsciresearch.com/news/308-india-lithium-ion-batteries-market-to-grow-at-over-35-cagr-till-2020.html
8. https://home.kpmg.com/in/en/home/media/press-releases/2016/07/aerospace-defence-executives.html

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