The merged entity, BHEL systematically upgraded its facilities to manufacture thermal generating sets of individual capacities ranging from 30 MW to 210 MW, hydro generating plants of various ratings and transmission products up to 400 kV ratings. The organization began transforming itself from the production/operations management phase to strategic planning and management phase. BHEL with its team of 45,000 highly trained and widely experienced technicians and engineers, reached a turnover level of Rs. 230 crore by the year 1973-74. The company contributed 910 MW of power generating equipment to India’s capacity of 4,579 MW by end of Fourth Plan, in the mid-seventies. BHEL upgraded its products in association with global leaders to meet changing domestic needs and exports. This period also saw BHEL embarking on its overseas journey with the execution of the first export order for Malaysia.

Even in the early years, BHEL realized that the future business growth could only come through providing total service to customer by developing system integration and service capability. The successful integration of the two corporations created stronger engineering enterprise to meet greater future challenges.Equally important was creation of in-house visioning and long term planning capability to meet technology and market changes.

After intense consultations with the stakeholders and benchmarking with global leaders, the company brought-out a Corporate Plan in March 1974. This was a major step in the history of BHEL and galvanized the organization for rapid growth and development. It laid the foundation for creating a truly global enterprise and was a landmark in the corporate history of India.

As envisaged in the Corporate Plan of transformation from “Production Orientation” to “Engineering, Development and Market Orientation”, the strategic initiatives of functional orientation, rationalization and standardization of products, development of basic R&D, vertical integration, system sales, business expansion through acquisition, thrust on exports and strengthening customer service capability, among others were implemented.

As per the plan, the second-generation manufacturing units were set up as Transformer Factory at Jhansi, Central Foundry Forge Plant at Haridwar, and Seamless Steel Tube Plant at Tiruchirappalli to meet the objective of expansion and vertical integration.

Further diversification was achieved in 70’s with the acquisition of Radio and Electrical Manufacturing Company (REMCO) rechristened as the Electronics Division to give fillip to the control electronics business. In line with the Government directives to ensure supplies of BHEL generating and transmission equipment for power stations including nuclear power generating plants, industries and Indian Railways, various important steps were initiated with the formation of an Engineering Committee to rationalize the engineering procedures to result in a unified design for all products under BHEL banner. The company’s pioneering efforts in adopting information technology helped speedy adoption of unified systems in all the plants.

BHEL had also planned for the higher voltage equipment for transmission of power up to 400 kV and increased ratings of generation equipment in keeping with global trends. An important step was then taken in 1974-75 for collaboration with Kraftwerke Union (KWU) of Germany for the design and technology for thermal generating sets above 210 MW and up to 1,000 MW based on the modular principles of design and construction.

Through the setting up of Corporate Research and Development division with a chain of laboratories at Hyderabad in 1977 and with scientists and highly qualified staff recruited specially for R&D work, improvements had continuously been made in designs to suit local conditions so as to enable satisfactory operation of all major equipment. Special divisions were also set up to meet alternative sources of energy.

These efforts also enabled BHEL to meet stringent and urgent needs for supporting the country’s nuclear power programmes. BHEL rose to the occasion by developing steam generators and other equipment required for nuclear power projects on its own and helped these projects to come on-stream as planned. Another example of the company rising to the critical needs of the country in crisis situations was at the time of Oil Shock in 70’s. The company organized quickly for production of oil field equipment including on-shore oil rigs for ONGC’s exploration programmes.

By the end of 70’s, systems concept had taken deep roots and BHEL was providing total services from concept to commissioning to all the customers in energy, industry and transportation segments. During the first two decades, the company had made substantial investments in meeting the needs of technicians and engineers. By the 1970’s, it was recognized that nurturing managerial talent and future leaders within the organization was an imperative. The corporate plan helped in addressing this need. BHEL’s pool of talent was also a source for budding leaders in many public and private sector enterprises in India.