In (Cromptongreavs) : Industrial Training Report
In (Cromptongreavs) : Industrial Training Report
In (Cromptongreavs) : Industrial Training Report
In
(CromptonGreavs)
(Mumbai)
NAME : VYSHNAVI.N
REG.NO : 18BBA130
(Affiliated to Bharathiar
University) Coimbatore
1
HINDUSTHAN COLLEGE OF ARTS & SCIENCE
(Autonomous)
(Affiliated to Bharathiar University)
CERTIFICATE
Submitted for the Viva-voce Examination held at Hindusthan College of Arts & Science,
Coimbatore-641028 on....………………………
2
I hereby declare that the Industrial training has been undergone in the company CROMPTON
GREAVES submitted to Hindustan College of Arts & Science, in the partial fulfilment of
requirement for the Award of Degree of Bachelor of Business Administration (BBA)
Date :
Table of Contents
1 6
Introduction
3
Chapter-2
2 10
Company profile
3 Major Acquisition 13
5 Manufacturing units 16
9 Human resource 33
10 Information technology 35
11 Finance 36
4
Chapter-
12 3 Research 39
methodology
Chapter-
13 4 Analysis and
41
Interpretation
14 SWOT analysis
51
Chapter-5
5
Chapter-1
Effectiveness of marketing activities is the quality of marketers to optimize their efforts and
achieve the best short-term and long-term results. Effectiveness of marketing activities is
related to Return on Marketing Investment (ROMI) and Marketing ROI which helps to
describe the relationship between costs and the returns achieved either in form of profits or
leads..
When we want to measure the effectiveness of marketing campaign, there are three things
that are essential to know. One is cost of marketing, second is revenue or leads generated
from this campaign and lifetime value of a customer. Marketing is a process by which
organizations create and distribute products that are not only desired by customers but they
are willing to purchase those on given price.
Cost of Marketing means comparing different sources of marketing and to decide which one
will work better for your business campaign, like sometimes generating a brochure can cost
you more as compared to make an ad in newspaper. It must be you to decide your marketing
strategy on cost or its effectiveness. Next thing comes is revenue generated from specific
sales after its marketing campaign and how much sales is increased after adopting a specific
technique. Final thing to measure the marketing effectiveness is Customer Lifetime Value; it
is the amount of gross profit generated per year by a customer multiplied by number of years
they continue to purchase the same product.
6
marketing effectiveness is not an easy thing but it can be made easy by hit and trial method
and learning from past experience.
Corporate – Each company operates within different bounds. These are determined by their
size, their budget and their ability to make organizational change. Within these bounds
marketers operate along the five factors described below.
Exogenous Factors – There are many factors outside of our immediate control that can
impact the effectiveness of our marketing activities. These can include the weather, interest
rates, government regulations and many others. Understanding the impact these factors can
have on our consumers can help us to design programs that can take advantage of these
factors or mitigate the risk of these factors if they take place in the middle of our marketing
campaigns.
There are five factors driving the level of effectiveness of marketing activities that marketers
can achieve:
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will be more successful in the market than competitors’ products/brands. Even with the best
strategy, marketers must execute their programs properly to achieve extraordinary results.
Marketing Creative – Even without a change in strategy, better creative can improve
results. Without a change in strategy, AFLAC was able to achieve stunning results with its
introduction of the Duck (AFLAC) campaign. With the introduction of this new creative
concept, the company growth rate soared from 12% prior to the campaign to 28% following
it.
8
seasonality, interests or the regulatory environment can help marketers improve their
marketing effectiveness.
Industrial marketers have to develop their capabilities in supplying even more complex
“total solution” that include both tangible (service). Thus, technical product marketing has
recently received increased scholarly attention.
The process of acquiring and delivering such products entails coordinating the activities of
buyers and sellers, as the details of each equipment are agreed during often- extensive
interaction between the two sides. The relationships between employees in the buying and
selling’s firms are therefore important before during and after delivery.
The term “Technical Product Marketing” embraces all this. Marketing of technical solutions
for electrical distribution substation is synonymous with project marketing that in turn
encompasses relationship and industrial marketing.
Construction
Heavy equipment
Light equipment
Components
Subassemblies Raw
materials Processed materials
9
The four key dimensions in applying the marketing concept to Industrial Marketing were-
(a) Aiming for improved profit performance, with sales volumes and market share but
not as important as in consumer marketing.
(b) Identifying customer needs, which require understanding the economics of the
customer’s operations, then structure of the industry within which they operates and
how they compete.
(c) Selecting customer groups for emphasis, the classic problem of market
segmentation, which takes on special meaning in industrial marketing because of the
high degree of buyer seller interdependence after the sale
(d) Designing the product/service package, where there is seldom a standard product
itself and the product must be invented.
CHAPTER-2
COMPANY PROFILE
The company is organized into three business groups viz. Power Systems, Industrial Systems
and consumer products. Nearly, two-thirds of its turnover accrues from products lines in
which it enjoys a leaderships position. Presently, the company is offering wide range of
products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC
10
motors, traction motors; alternators/ generators, railway signaling equipments, lighting
products. In addition to offering broad range of products, the company undertakes turnkey
projects from concept to commissioning. Apart from this, CG exports it’s product to more
than 60 countries worldwide, which includes the emerging south-east Asian & Latin
American markets. Thus , the company addresses all the segments of the power industry
from complex industrial solution to basic household requirements. The fans and lighting
businesses acquired “Super brand”
status in January 2004. It is a unique recognition amongst the country’s 134 selected brands
by “Super brands”, UK
At Crompton Greaves there is always a passion for quality. The company has the unique
distinction of being the first one to receive an ISO 9000 certification for finance and
administration. The commitment has the unique distinction of being the first one to receive
an ISO 9000 certification for finance and administration. The commitment to responsible
business through quality, technology and productivity has helped the company to receive
many certifications in the ISO 9000/9001:2000/14001 series. The company’s twenty three
divisions/ regions have been accredited with ISO9001:2000 certification; Seven
manufacturing units have been accredited for ISOI 14001 and four units for OHSAS 18001.
The Light sources division is one of the few business units in India in lighting industry to
receive dual certificate of ISO9000 :2000 was well as ISO14001 and OHSAS 18001,
Certification for Occupation Health and Safety management system .The company’s Fans,
Motors, Automation and control products are approved by the CSA , BASEEFA, and CE.
HISTORY
Crompton Greaves goes back to 1878, when Col. R.E.B. Crompton founded
R.E.B.Crompton& Company. The company merged with F.A Parkinson in the year 1927 to
form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was appointed as their
concessionaire in India. In 1937, CPL established, it's wholly owned Indian subsidiary viz.
Crompton Parkinson Works Ltd., in Bombay, along with a sales organization, Greaves
Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In the year 1947, with the
dawn of Indian independence, the company was taken over by LalaKaramchandThapar, an
eminent Indian industrialist. Crompton Greaves is headquartered in a self-owned landmark
building at Worli, Mumbai.
Today, Crompton Greaves (CG) is part of the US$ 3 bn Avantha Group, a conglomerate with
an impressive global footprint. Mr. Gautam Thapar, the third generation of
LalaKaramchandThapar, is Chairman & CEO of India's foremost diversified corporation, the
Avantha Group.
12
Mr. Sudhir Mohan Trehan is the Managing Director of Crompton Greaves Limited since
May
2000. He was the recipient of the ‘Outstanding Chief Executive of the Year’ Award for
20002001, instituted by the Indian Institution of Industrial Engineering, for steps he took
towards successfully implementing his vision of making Crompton Greaves a world-class
manufacturing company. In addition to above, the Board of Directors includes the renowned
names of Dr. O. Goswami, Mr. S. Labroo, Dr. Valentin A H von Massow, Ms. M. Pudumjee,
Mr. S.P. Talwar and Mr. S.R. Bayman.
Major Acquisitions
Pauwels Acquisition
Crompton Greaves has completed the acquisition of the Belgium-based Pauwels on 13th
May 2005. The group has manufacturing facilities in Belgium, Ireland, Canada, USA and
Indonesia and well spread distribution network across the globe. The acquisition catapults
the company amongst top ten transformer manufacturers in the world. It has truly
transformed into an Indian MNC making a long-cherished dream finally come true.
Apart from strengthening it's foothold in the Indian market, Crompton Greaves acquisition of
the Pauwels Group and it's transformer manufacturing facilities in five countries is expected
to provide a significant impetus to the company's international presence.
The additional turnover of approximately Rs.1,380 crore of Pauwels Group for it's last
financial year is expected to increase Crompton Greaves' International business to around
50% of it's turnover, making the company a force to reckon with, in the international market.
Ganz Acquisition
Crompton Greaves have also successfully acquired Hungarian based Ganz (GTV), engaged
in the manufacture of EHV Transformers, Switchgear, Gas Insulated Switchgear (GIS),
Rotating Machines and Contracting businesses and Transverticum Kft (TV), engaged in the
13
supporting areas of design, erection, commissioning and commercial activities on 17th
October,2006; TV being a subsidiary of GTV.
Microsol Acquisition
The acquisition of Microsol Holdings Limited (MHL) and its associate companies in May
2007 is yet another significant stride in CG's journey towards positioning itself as a Global
T&D Solutions Provider.
MHL, based in Ireland with facilities in UK and USA, is engaged in the business of
providing sub-station and distribution automation for the utility industry including MV and
HV substations, new sub-stations and retro-fitting solutions for existing sub-stations. The
acquisition reinforces CG's ability to design, build and service world-class sub- stations,
with state-of-the-art automation & high-end engineering.
Sonomatra Acquisition
14
Product & Services Offered By Crompton
The company is organized into three business groups viz. Power Systems, Industrial
Systems, Consumer Products. Nearly, two-thirds of it's turnover accrues from products lines
in which it enjoys a leadership position. Presently, the company is offering wide range of
products such as power & industrial transformers, HT circuit breakers, LT & HT motors, DC
motors, traction motors, alternators/ generators, railway signaling equipments, lighting
products, fans, pumps and public switching, transmission and access products. In addition to
offering broad range of products, the company undertakes turnkey projects from concept to
commissioning. Apart from this, CG exports it's products to more than 60 countries
worldwide, which includes the emerging South-East Asian and Latin American markets.
Thus, the company addresses all the segments of the power industry from complex industrial
solutions to basic household requirements. The fans and lighting businesses acquired “Super brand"
status in January 2004. It is a unique recognition amongst the country's 134 selected brands by "Super
brands", UK.
15
DI VIS I O NS O F CGL
R E GI O NA L O F FI CE S ( A LL P R O DU CT S )
MANUFACTURING UNITS
16
Transformers Plant,
Mandideep
17
- Mumbai.
over 50% of the total transformer exports from India! Products of the Transformer division are exported to
over 40 countries worldwide. The Crompton Greaves Transformer division is known for its
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wide range, reliable designs, excellent materials and globally benchmarked manufacturing
practices.
Crompton Greaves is among the very few companies worldwide that designs and
manufactures the widest range of Power & Distribution Transformers and Reactors from
160kVA to 415MVA, 500kV Class to fulfill the specific demands of the Power &
Industrial sectors and the Railways. With an installed base of over 120 million kVA in
Transformers, Crompton Greaves has emerged as the largest Indian supplier of a wide range
of Transformers and Reactors for all critical applications. These Transformers and Reactors
find use in industries such as Power Utilities, Process Industries, Railways, Mines,
Electricity Boards, Industrial users etc in both the Domestic as well as Global markets.
The division has the capability to manufacture transformers from 400 kVA to 900,000 kVA
(in a bank) 3.3 kVA to 500 kV class for various applications confirming to IS, IEC, EN, AS,
BS, ANSI and other international standards. All the plant operations are certified under the
ISO 9001 and ISO 14,000. The Division has technologically superior manufacturing
facilities in Mumbai, Gwalior and Bhopal with a total installed capacity of 18,500 MVA.
Crompton Greaves incorporates the latest technology, superior raw materials and state-of-art
manufacturing facilities to build transformers of superior quality and with high degree of
reliability.
The new integrated Distribution Transformer division (T2) at Malanpur is spread over
20,000 sq meters. The Malanpur plant manufactures Distribution Transformers up to
20MVA, 66 KV.
19
The consumer products of the plant are customized and are assembled according to the needs
of the customers, Job type of production is carried out.
Based on function the transformers can broadly be divided into Power transformers,
Distribution transformers and other types of special transformers for welding, traction,
furnace etc.
1) Low Power Transformers: The power transformers are used to transform power
voltage from the generation point to the transmission point and are installed at the
generation site right up to the last substation just before distribution activities
commence. This transformer is used to either step up or step down power to match
the voltage requirements. They are oil filled transformers with its range spanning
from 11kV – 765kV. Power transformers would account for about 65- 68% of the
total value of the transformer industry.
3) CR Transformers: A dry type transformer is used where there is space constraint and
higher chances of occurrence of fire. Special fire resistant insulation is used
in this type of transformers. These are mostly used by industrial and corporate clients at software parks,
hotels, hospitals, high rise buildings etc. These transformers are categorized as
distribution transformers due to their nature of operation, i.e. at the end users
locations.
The Unit’s net sales increased at almost 33% in the financial year 2006 and 2007 which is quite
proportionate to the growth rate of the Power System Asia which was 38% and 48% in the year
2006 and 2007 proportionately. The net sales growth rate for Asia in the year 2008 was about
10% on the other hand the sales for CG D2 T2 plant increased by approx. 43%. The Net Sales for
this plant has increased by 14% and 4% in the year 2009 and 2010 respectively.
The T2 unit Malanpur accounts for about 7% to 10% of the Nest Sales of the CGL PS Asia.
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Financial Analysis
NET SALES (FY2006-FY2010)
CG DT T2 Division(in lacs) Rate Of Growth CG Power System Asia(in lacs)
Year Rate Of G
9513 32.7 115318
37.42
2005-06 12576 32.2 170644
47.98
2006-07 17909 42.41 187346
9.79
2007-08 20410 13.97 231179
23.40
2008-009 21268 4.20 269670
16.65
2009-10
21
The division’s profit has significantly mounted up in the past three years as can be easily
visualized from the chart.
I. Marketing
V. Information Technology
I.Marketing
22
The Marketing Department at CG Malanpur Division operates in basically two modes:
Marketing
Tendering Executio
n
Tendering
Customer
s
Quotation
Order Received (Letter
Marketin of
Desig g Intent)
n
Bill of Specificatio
Materia n
Since CG Malanpur division is a Job-Type production unit, the division takes order from the
customers which vary according to the customer requirements. The Marketing Department
takes following steps
Enquiry received from regions
Preparation of design
Costing Preparation
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Guaranteed Technical Particular or GTP Sheet Preparation ( This document contains
information about the various sub-components and variation in costing depending upon
what is used)
Techno-Commercial Deviations
Order Finalization
Order Received
Contract Review
Execution
Once the order is finalized by the customer, the marketing department begins the planning
phase of the order. Each order takes about 21 days to get its basic designing done and this
duration is divided according to the various steps involved in the complete production process.
The marketing department keeps the customer informed about the progress of his order and
coordinates the internal activities so as to get the order completed within the allocated
duration. If the customer makes some post order changes, the designing team interacts with
the customers about the concerned details and whatever technical and monetary changes
should be made in the contract.
After the transformer is ready to be delivered the Dispatch section sees to it that all the
necessary precautions are taken while the final product is loaded on the truck to be delivered.
Various accessories that are related to the products are also packed with the transformer and
are delivered to the customer. The Marketing Section keeps track of
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It releases orders to the shop floor/vendor.
Cushion Stock-
25
It identifies the key problem areas that require immediate action.
It tries to solve critical material shortage problems so that corrective action can be
taken which must act as an information for the next period-
ii) The 2nd important issue is the precaution one has to take in order launching (to shop
floor). This has to be correctly entered.
iii) Before releasing an order, it ensures that the components are physically available, so
periodic checking of actual inventory status and the one available in the system is
necessary.
In case of a discrepancy, then few people can be deployed in checking inventory from time to
time physically in the shop floor. Any correction may be entered in the system and the process
continues till the discrepancy disappears.
Inventory management
Transformers are not an off-the-shelf product, and are customized to meet individual customer
requirements and order specifications. Each transformer is identified by assigning a job
number (JN), each having a separate bill of material. Hence, they have two types of raw
material inventory: -
JN wise items are procured on the basis of monthly requirements. Depending on the process
cycle, inventory for high-value items is optimized. The required levels of raw material are
maintained in the inventory. Raw materials such as copper rods and CRGO sheets are procured
based on specific JN's. By using technical production management tools like ERP System and
CPM, they estimate our job-specific requirements for raw materials like copper rods and
CRGO sheets. On receiving copper rods, the same are sent for job work to convert it into the
requisite size of conductors as per the customer specifications. The process of converting the
copper rods into conductors is normally
completed in fifteen days. Received materials are issued to the shop floor on the basis of
requisitions generated by the shop floor team.
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ii) Raw materials which are common to all types of transformers:
The requirement for these items are estimated based upon past consumption data, future
requirements, lead time, ABC analysis, and market sensitivity, minimum stock levels and
reorder levels. The company keeps its raw material purchase policy flexible enough to absorb
seasonal factors as well as unforeseen ups and down in the raw material requirement.
Periodically, a report is developed on non-moving items and appropriate decisions are taken in
time to dispose off the same.
The Materials Department of the company plans the material requirement during one complete
operating cycle and integrates it with its strategic plans. The materials kept in the Stores are
issued to the Production Department in time according to the plans made by the Planning
Department.
Quality Check
Other than the functions mentioned above the materials department also supervise the
materials quality, for this two major functions are performed:
i) 103 Movement
The 103 Movement is performed when the stock is received at the company gates,
the material is checked against the list of the materials ordered however no entry
accounting is done at this moment, the acknowledgment of the reception of the
materials is done but its validity is not communicated.
The materials are then unloaded from the truck into the stores and the quality
assurance department checks whether the materials received are of appropriate
quality. During the 105 movement, the materials department safely stores the
materials received in the Stores with appropriate utilization of the space available.
27
They use state-of-the-art technologies in their in-house design department, and strive to
upgrade the products based on customer feedbacks and engineering expertise of their technical
teams. Apart from continuous improvement, every effort are being carried out to reduce the
input cost by increasing efficiency in manufacturing cycle, reduction of cycle time, reduction
of raw material cost and procuring improved products/machines from third-party vendors and
so on.
Few accomplishments achieved are:
Installation of the new oven in 2007 utilizing the "autoclave with Vapor Phase Drying
process" which has helped to reduce cycle time of the process of drying active parts
rom approximately nine days to three days.
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A. Product Design and Planning
Since all transformers are tailor made, on receipt of the customer order, the manufacturer
commence designing the transformer as per customer needs. The drawing is then submitted
to the customer for approval. The drawing and bill of material are then issued to various
departments to carry out further work as per design.
29
Acceptance
of Customer
Technical Letter of
Specification Acceptance
3
Planning
1
The electrical designs are made using Excel software’s and mechanical drawings are made
using the software’s AutoCAD, Inventor and ProE. Apart from continuous improvement,
every effort are being carried out to reduce the input cost by increasing efficiency in
manufacturing cycle, reduction of cycle time, reduction of raw material cost and procuring
improved products/machines from third-party vendors and so on.
B. Manufacturing process
a) Core Building
CRGO (Cold Rolled Grain Oriented) steel sheets are used for manufacturing core laminations
by the sub contractors. They cut required size of laminations by high accuracy shears.
Laminations are stacked in step lap - interleaved fashion to minimize core losses, exciting
current and noise level. The yokes and limbs are firmly clamped between steel channels in
manner, which reduces vibration, and inherent noise.
b) Winding
Annealed/half-hard copper conductors either in the form of a strip or round wires are used in
winding operations and dimensions for the winding such as inside diameter and outside
diameter are maintained by selecting proper Mandrel. Insulation is provided as mentioned in
the design output. The coil tapping leads and phase leads are taken out according to the design
output.
Coils are kept under clamping pressure and sent for opening.
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c) Preparation of insulating material
made from these materials by different operations like cutting, edge rounding, chamfering,
drilling, machining etc.
The coils are concentrically assembled on the core limbs as per the design details. The core
and coil assembly is rigidly supported and clamped. The main leads and tapping leads of coils
are then connected to bushings and the tap changers respectively. All these leads are properly
clamped and insulated to ensure required electrical clearance and Cree page.
A tap changer is a selector switch that allows the voltage ratio of the transformer to be changed
by increasing or decreasing the turns of the winding. The tapping leads of the coils are
connected to the tap changer to allow the additional turns to be brought into or taken out of
circuit. In some distribution transformers, the tap changer switch is an off load manual switch,
while in others, the tap changer is an on-load automatic switch.
After welding, tanks are pre treated by shot blasting. They are thoroughly cleaned before
applying a coat of zinc chromate primer paint on external surface. One coat of weather
resisting enamel finish paints is then applied on outside surface of the tank. To all interior
surfaces a coat of heat and oil resistant paints is applied. The final coat of external paint is
applied, prior to dispatch of ready transformer, fitted with accessories and fittings.
f) Ovening
Hot air drying is carried out to remove moisture from the active parts of the transformers.
For transformers up to 33 kV class drying is carried out in well ventilated ovens for a period
till insulation resistance builds up to specified value. For larger transformers, above 33 kV
class, drying takes place in vacuum drying oven. The core - coil assembly is initially heated
for a predetermined period by admitting heated kerosene vapour, and then they are placed
under vacuum. This cycle is repeated till all the moisture is extracted.
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g) Tanking
Active parts (Core-coil assembly) after drying are placed in the tank. Bushings of specified
rating are mounted on the top or side as per design and connected to end terminals. Tap
changing switch is provided and connected to various tapping leads as per design. The top
plate is tightened at specified torque and the filtered oil is filled under vacuum. The tank is
tested for leakage by subjecting it to the required pressure after all other accessories are fitted
on the tank. The oil is used for further insulating purposes plus the removal of heat from the
windings. The assembly of the windings on the core allows gaps to enhance the oil circulation
around the windings. The tank is constructed with fins or tubes to allow better circulation of
the oil and to provide a greater surface area for contact with the cooling air. Very large
transformers have banks of fans to provide greater air-cooling and are operated in conjunction
with temperature sensors. Some transformers also have forced oil circulation using a pumping
system and an oil cooling circuit. In installations where the use of transformer oil needs to be
avoided, the cooling medium used can be gas (nitrogen is often used).
The division has a fully equipped testing room for carrying out of all routine tests such as
temperature rise test, zero phase sequence test etc. Every transformer is tested for routine tests
specified in the standard specification on the completion of which a test certificate to this
effect is issued.
All transformers are tested in a sophisticated laboratory for the following routine tests
conforming to National and International Specifications on the completion of which a test
certificate to this effect is issued.
• Voltage Ratio.
• Winding resistance.
• Impedance Voltage.
• No load Current.
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• Dielectric tests.
CG - Transformer designs are proven for dead short circuits by tests conducted at the
independent, accredited short circuit laboratory of the Government of India Human Resource
These are the normal day to day activities which the HR Department has to perform in the
company. They see to the regulatory organizational duties concerning the employees and the
rules and regulations defined in the Factory Act.
The HR department forecasts the manpower needs of the company on the basis of the sales
plan defined in the yearly budget plan. In order to fulfill the division’s manpower requirements
the HR Department performs the functions of recruitment and training, the recruitment
procedure consists of following basic steps: Questionnaire & Interview
The salary and wages are basically divided as per the classification of the employees, they
are basically categorized into 3 groups:
ITI (Electrical)
These trainees are basically appointed for duration of 2 years with a stipend of Rs. 2500 and are
also provided with hostel facility and Mess Facility. The trainees are also provided with
7 Casual Leaves(CL) and 7 Sick Leaves(SL) as per the Apprentice Act. After the duration
33
of the 1st year these trainees may be observed as CGL Trainee whereby they are provided with
some extra facilities.
The Corporate Trainees are awarded with a stipend of Rs. 7000 with 7CL and
7SL for 1 year and when observed as a CGL Trainee a stipend of Rs. 9000.
The workmen are also given Compensatory Leaves which are subject to the number of extra
shift work.
1) Executives(E-1 to E-3)
2) Manager(M-1 to M-3)
3) Leader(L-1 to L-3)
These white collar jobs have 10CL, 15SL and 30PL associated with them (PL can be availed
only after a duration of 240 days). The white collar jobs are graded on a scale of 1 to 3.
The Salaries are given on attendance basis and a computing software is used for the same.
34
IV. Information Technology
The company uses SAP3 as its ERP system for integrating various departments of the company.
The company’s various departments float the data on the ERP system and the access to the
information is provided to the employees on the basis of their departments and their positions.
Various levels of access to the information are defined in the ERP system and the ERP system
is operated through the servers at the Bombay center.
The Engineering Department at this division takes care of the machinery needs of the plant, for
which they perform the function of tendering to purchase machines. For this they prepare a
detailed report on the use of machine and profits earned against usage of the machine.
35
The Maintenance Department takes care of the Spare Parts requirement at the plant and issues
purchase orders of the spare parts. They also perform the function of maintenance of the
machines.
Pre-emptive Maintenance
The Department performs the regular functions of maintenance at the plant depending on the
usage of the machines:
• 100% Usage
• Monthly basis
• 85% Usage
• Quarterly basis
• 75% Usage
• Half-yearly basis
If at all a breakdown occurs at the plant, the operator of the machine fills a breakdown format
and lists the problem in it. The problem is identified as major or minor and accordingly a
corrective action is taken to reduce the breakdown time.
FINANCE
Invoic
36
Central
Excise
Duty
Pa
i
Facto
ry
Commercial
Customer Branch
Collectio
n of
After the acceptance of the order from the customer, the company starts the assembling of the
transformer according to the technical specification of the customers; after the assembling and
testing is completed the finance department issues an invoice and performs 3 major functions:
The finance department makes sure that the central excise duty on the products is paid to the
competent authorities, only when the duty fee is paid the product is allowed to pass from the
factory gate.
37
Commercial Invoice
The finance department also issues a Commercial Invoice a copy of it sent to the branch
office and the other copy is sent to the customer. The payment from the
Chapter 3
Research Methodology
Primary data
Primary data collection has been done by questionnaire method undisguised structured form.
Sample Customers were taken from existing and prospective users State Electricity
Board(SEB’s) Industries ,Contractors, Consultants and independent power producers(IPP’s).
The data collected was analytically examined. The responses were categorized on the various
variables that affect the buying behavior of the organization. The factors determining
customer satisfaction, which affect repeat purchases, were also critically examined.
Questionnaire
The questionnaire is designed with close ended questions only. While designing the
questionnaire, a wide range of parameters has been given due considerations. The questions
have been mostly objective with multiple options. The various characteristics are related on
the basis of importance and weightage given in the decision process.
38
Some questions have been designed so as to obtain relevant information of the profile and
nature of the company. The details of the questionnaire are placed in annexure and the
response is analyzed.
Secondary data
Secondary data collection has been done by referring to CGL journals and brochures, annual
reports, Indian Electronics manufacturers association’s (IEEMA) monthly journals, IEEMA
production figures , and compilation of notice tenders(NITs).
A study was made on the effectiveness of marketing activities , market scenario, market
Identification of turnkey solution concept, Identification of the competition an the customer.
Sampling
The sampling process considered to interview/get the response from atleast one respondent
from each customer segment. The samples are chosen such that samples are involved in this
type of business activity and are aware of the various facts of transformer purchase to given
correct opinion. The study was conducted and the respondents were mainly from the
commercial and engineering department. The study was conducted during the period of
May’10 to june’10 . The personal interviews were conducted with respondents from NTPC
Ltd, State electricity board(SEB’s) Bhushan Steel Ltd.& ABB Ltd. This ensured a great
variation in terms of respondents that included actual customers and policy makers.
Sample size
The sampling units under consideration are the senior executives ,of various companies The
The research has been carried out under the following constraints:-
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The sample size collected for the research work is insufficient.
The sampling units under consideration are the senior executives of various
companies
Latest data of the company could not be available as the company’s website have
not been updated.
C h ap t er 4
AN AL YS I S AND IN TE RP RE T ATI ON
Organization belongs to
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Interpretation
Different industries require different types of transformers . Here it is observed that the
customers of CGL are from different sectors. This graph shows that the transform
manufactured by the CGL are providing good service and because of this the customers
are from every sector .
Interpretation
This figure shows that the nature of industry should also be known so that it becomes easy to
provide the product according to their specifications . As it is observed that the transmission
industry requires the transformers the most and the distribution , generation have also the
requirement for the product
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Type of electrical equipment required
Interpretation
It is also necessary to know that which type of transformer wiil be required by the industry
and the chart indicates that most of the industries require the power transformers then the
distribution transformer.
Route of purchase
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T ender notification Involved consultants Others
66 % 22 % 12 %
Interpretation
The chart shows that most of the industries prefer to purchase transformers through the
tender notifications while some of the industries purchase by the help of consultants.
5 Buying pattern
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Annually 50%
When required 24%
Once in 2 years 20%
Others 6%
Interpretation
It is clear from the chart that 50% of the industries are purchasing the transformers on the
regular basis i,e. every year. Some 24% of industries purchase it when required while the rest
purchase the transformer once in 2 years
44
Always Mostly Very often Sometimes
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o t h er s 11% 10% 50% 29%
Interpretation
It is clear from the chart that the 45% industries are giving the advance payments for the
products , some are using letter of credit i.e. 25% while 35% are taking the help of banks and
financial institutions and rest 11% are using other means.
CGL 49%
BHEL 15%
AREVA 10%
ABB 12%
OTHERS 14%
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Interpretation
The chart shows that most of the industries had executed their business with CGL in
spite of the major players such as BHEL, AREVA, ABB are in the market . This shows that
CGL is the leading industry in the transformers.
Interpretation
The chart indicates that CGL is the leading company in the transformer industry in the terms
of price and quality of the transformers the Company provide to other industries.
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Service after sales provided by CGL is
Outstanding 56%
Very good 24%
Good 12%
Average 8%
Interpretation
The survey shows that most of the industries are satisfied by the after sale service provided
by CGL.
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Yes No
75% 25%
Interpretation
It is clear from the chart that most of the industries are satisfied with the product and services
provided by the CGL .
SWOT ANALYSIS
Situation analysis begins the process of strategy formulation and there is need to find
external opportunities and internal strengths. The individual parameters are hereby listed:-
STRENGTHS
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Wide product range to provide solutions to different customer segments like Thermal
/ Hydro power generation clients , transmission agencies , distribution and industries.
WEAKNESSES
Limited financing capacity for large projects & uncompetitive financing costs.
OPPORTUNITIES
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Boost to power transmission sector & privatization moves in distribution
sector
The total transmission capacity is planned to increase from the existing capacity of
9,450 MW to 37,150 MW by 2012.
To secure cheaper power through large size power projects ,the government
launched ultra mega power projects (UMPPs) with the target to produce
4000 MW by 2012.
THREAT
Increasing competition from large MNCs with greater financial & strategic
muscle and speeder response.
Lowering of imports tariffs below the WTO bound rates continued customers
insistence on qualification / experience requirements –> Roadblocks for introduction
of indigenous technologies.
C h ap t er 5
F I NDIN G S , RE C OM M E ND ATIO N AN D C ON C L US I O N
FI N DI N GS
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MARKET CAPACITY OF CGL IN INDIA
A major part of the transformer manufacturing capacity of India is contributed by the major
players like BHEL, CGL, ABB , Arevaetc. The details are as follows:-
B HE L 2 5000 M V A p . a.
AB B 1 7000 M V A p . a.
Ar e va 1 5000 M V A p . a.
EMCO 1 2000 M V A p . a.
B h ar at Bij l ee 7 000 M V A p . a.
V ol t amp 5 000 M V A p . a.
Tel k 3 000 M V A p . a.
Telk
EMCO
Kanohar
Crompton
Bharat
Others
BHEL
Voltamp
Kirloskar
ABB
45%
40%
35% 30% Power Transformer
25% Distribution
20% 15% Transformer
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10%
5%
0%
Market share: A major part of the installed transformer capacity of India is contributed by
the transformers supplied by CGL i.e. every 7th transformer in the country is a CGL made
transformer. High market share is due to customer’s confidence in our reliable products and
services . However many international players entered in the Indian market like ABB ,
SIEMENS, AREVA and many more to come, CGL is ready to face & counter future
competition by continuous up gradation in its technology & services . In spite of such stiff
competition, CGL has maintained increasing order book position and has increasing turn
over values.
Purchase methodology : All the customers prefer to purchase through tender as indicated by
over 100% of the respondents .
Funding procedure: Majority of the customers are funding the projects from the domestic
funding the projects from domestic funding or own funds i.e. 35% next way Decision time:
The responses received takes 3 to 6 months as the products being purchased are generally
costly and through tenders however sometimes , responses received takes more than 06
months.
Buyer selection procedure: The suppliers were selected on the basis of tender and order
being given to the lowest or the chosen one, who provide best quality in cheaper prices.
Rating of various attributes of products: The results in the chart clearly marks that
customers wants the best quality at best prices . The quality and price are the front – runners
at 24% and 23% respectively followed by ‘After sales services’ and the delivery. The
customers are not interested in the brand image in the industrial purchases.
Rating of the companies in terms of quality: Customers perceived quality as the most
important criteria . The respondents have rated the product –performance of major equipment
suppliers . It has been observed that 22% respondents have rated CGL with the best quality
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of products . It is closely followed by BHEL at 21% ,ABB at 20% &Arevaat 19% . Quality
of EMCO has not been up to mark.
Rating of the companies in terms of price: The company who can offer best quality at
affordable prices often turns out to be a winner. It has been observed that 22% respondents
have BHEL for offering products at high prices ; followed by CGL at 21%, then ABB at
20% and at the end AREVA and EMCO at 19% &17% respectively.
RECOMMENDATION
The study and the analysis of the data tell about marketing strategy for the transformer
manufacturers. Thus, we need greater emphasis on the following areas:
customers.
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CONCLUSION
I was given the opportunity to do my project in the CGL, which is the largest transformer
manufacturing enterprise .To conclude this project report , it can be said that the company
holds a good market share and is managing well, even when there is cut throat competition
in the market.
The study reveals that the company has entered into the technical collaboration
with many international firms through acquisitions. With the increasing competition
,company has improved their performance in services and provide prompt after sales
services. The study on, the factors affecting the marketing environment of the company also
helped in knowing the impact on economic, political, social & technological aspects of the
firm. Firm has got a large network of customers and thus helped in knowing their perception
about the firm’s product quality, price. Reliability and delivery.
Overall , it was a great experience to work with such a company who has an
excellent marketing strategies and ideal sales/marketing network
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