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` Presented By: Niraj Patel

Suzlon

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  • 1. ` Presented By: Niraj Patel

2. Tulsi R. Tanti Chairman & Managing Director Girish R. Tanti Executive Director Ashish Dhawan Independent Director V. Raghuraman Independent Director Pradip Kumar Khaitan Independent Director Ajay Relan Independent Director 3. INTRODUCTION Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with: Over 16,000 people in 25 countries Operations across the Americas, Asia, Australia and Europe Fully integrated supply chain with manufacturing facilities in three continents Sophisticated R&D capabilities in Belgium, Denmark, Germany, India . Suzlon Market Share (Combined with REpower) rose to 9.8% thereby making Suzlon 3rd * largest wind turbine manufacturing company in the world 4. INTRODUCTION CONTD.. The headquarters of the company is located in Pune, India. All over the world the company is present in 21 countries Namely : Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India, Italy, New Zealand, Nicaragua, Portugal, Romania, Spain, Sri Lanka, The Netherlands, Turkey, Ukraine, UK, USA . The manufacturing plants in india are at : Maharashtra, Pondicherry, Gujarat, Daman , Padubidri 5. CONTD.. Suzlon is the third largest wind power supplier having a market share of about 9.8% of worlds wind energy market. The company has about 14,000 employees who are from 23 nationalities. It is listed in BSE and NSE (India) , it is also listed in S&P CNX Nifty Index . By the end of year 2009 Suzlon supplied over 8,000 MW across all over the world , registering 100% growth rate year on year. 6. SUZLONS VISION To be a technology leader in the wind industry. To be among the top three wind energy companies in the world. To be the most respected brand. To be the best team and a place to work at. To be the fastest growing and having the most profitable business. 7. SUZLONS PHLIOSOPHY To be a company that serves society with sustainable wind-power on a commercial scale with a focus on continuously increasing efficiency. To contribute to the reduction of use of fossil fuels by reducing our carbon footprint in all our operations. To always be committed to a life-long relationship with customers and work towards total customer satisfaction. To build partnerships with all stakeholders; employees, customers, vendors, service providers, local communities and governments 8. STRATEGY Suzlon as a group aims to provide a strong renewable energy platform thereby promising to power a greener tomorrow, today. From initiating a wind power project, till completion and even beyond, Suzlon ensures that nothing stands in the way of it serving its purpose. 9. PRODUCT STRATEGIES "Suzlon delivers its complete product range in the Indian market." Existing products offered by the company are: Wind turbine generators Rotor blades Control Equipments Gearboxes Nacelle Covers 10. PRODUCT LINE S82-1.5 MW This is designed for generating the optimal power output even at sites with a modest wind speed regime. The wind turbine concept is based on robust design with pitch regulated blade operation, a 3-stage gearbox with 1650 kW rating and flexible coupling to the asynchronous induction Generator. S66-1.25 MW This has a well-suited ratio between rotor diameter and generator for most sites in a medium speed regime . The concept of the wind turbine is based on robust design with pitch regulated blade operation ,a 3-stage gearbox with 1390 KW rating. 11. PRODUCT LINE (contd..) S88-2.1 MW S64-1.25 MW S52 -600 KW -are other types of wind turbines manufactured for producing power each of them having different rating and different design structure in terms of their gearboxes , blades , pitch systems etc. 12. PRODUCT INNOVATIONS Suzlon at present is manufacturing wind turbines for production of power. However the company can capture a larger share of market by the production of various other equipments which use other renewable source of energy. SOLAR ENERGY eg: SOLAR CELLS AND VARIOUS OTHER SOLAR ENERGY DEVICES HYDAL ENERGY eg: USE OF HYDRO WATER SYSTEMS AND TURBINES 13. PRODUCT INNOVATIONS (contd..) Another recent development which is taking place these days is use of NUCLEAR ENERGY. Nuclear power is produced by controlled (i.e., non-explosive) nuclear reactions . Commercial and utility plants currently use nuclear fission reactions to heat water to produce steam, which is then used to generate electricity. In 2009, 1314% of the world's electricity came from nuclear power. 14. MARKET COMPETITION 22.8 16.6 15.414 10.5 7.1 4.4 4.2 3.4 3.4 10.5 MARKET SHARE IN % VESTAS(DK) GE WIND(US) GAMESA(ES) ENERCON(GE) SUZLON(IND) SIEMENS(DK) ACCIONA(ES) GOLD WIND(PRO) NORDEX(GE) SINOVEL GLOBAL COMPETITION SHARE : TOP TEN WIND TURBINE MANUFACTURE (2008) 15. Sorted by megawatts installed worldwide 1. Vestas (Denmark) 4,500 MW 2. GE Energy (United States) 3,300 MW 3. Gamesa (Spain) 3,050 MW 4. Enercon (Germany) 2,700 MW 5. Suzlon (India) 2,000 MW 6. Siemens (Denmark / Germany) 1,400 MW 7. Acciona (Spain) 870 MW 8. Goldwind (China PRC) 830 MW 9. Nordex (Germany) 670 MW 10. Sinovel (China PRC) 670 MW 16. Top 10 Countries Where Wind Energy Is Used Most Efficiently 1) The United States 2) Germany 3) India 4) France 5) The United Kingdom 6) Spain 7) China 8) Italy 9) Denmark 10) Portugal 17. PRICE The wind turbines are manufactured in different sizes and shapes. The cost depends upon the project size, purchase agreement construction contracts, type of machines, and the projects location as well as other related factors. The cost includes wind resource assessment, site analysis expenses, the freight of the turbine and its price, as well as tower, construction expenses, interconnection studies, utility system upgrades, protection, transformers, as well as metering equipment, operations, warranty, maintenance, repair, insurance, legal and consultation fees, etc. Other factors which have an impact on pricing are financing costs, the size of the project and applicability of taxes. 18. PRICE (contd..) The cost of the commercial wind turbines varied from $1 to $2 million per MW of nameplate capacity installed. The same turbines 2 MW in size cost roughly $2.8 million installed capacity. The manufacture of these turbines undergo significant economies of scale. This would indicate a 10 kilowatt machine might cost roughly around $48,000. In this manner 1 kilowatts wind turbines would cost roughly $2,800 to $4,800 per kilowatt of capacity. . 19. PRICING STRATEGIES The overall pricing of the wind turbine can be summarized by : 1. proper negotiation 2. considering engineering 3. other related factors and reducing over all cost incidence on the production process. 20. PRICING STRATEGIES (contd..) The wind turbines are priced high. IN COMPETITIVE MARKETS , STRATEGIES ARE TO BE MADE SURVIVE.METHODS MUST BE ADOPTED TO CUT COST WITHOUT EFFECTING THE QUALITY OF THE PRODUCT . CHANGE IN DESIGN IS ONE OF THE STRATEGIES TO CUT COST AND HENCE SELLING PRICE. USE OF SUBSTITUTE MATERIAL IS ALSO ONE OF THE STRATIGIES TO CONTROL COST. BY REDUCING WASTAGE. THE PRICE OF PRODUCT CAN BE BROUGHT DOWN. ( BUT IT MUST BE KEPT IN MIND THAT THE PERFORMANCE OF THE PRODUCT DOES NOT COME DOWN BY CUTTING COST.) ( 21. OTHER STRATEGIES TARIFF COST DISTRIBUTION COST MANPOWER COST SUPPLY CHAIN COST EQUIPMENT SUPPLY COST ADVERTISEMENT COST NOTE : SOMETIMES BY CHANGING DESIGN OR BY USING SUBSTITUE MATERIALS , THE COST OF PRODUCT MAY INCREASE BUT THIS INCREASED COST IS COMPENSATED BY INCREASE IN LIFE OF THE PRODUCT AND THE COST PER UNIT ALSO MAY REDUCE OR COME DOWN. 22. PLACE GLOBAL PRESENCE AUSTRALIA BRAZIL INDIA EMEA NORTH AMERICA CHINA 23. Key International markets Australia, which has sites with optimal wind conditions. China, because of its high demand for energy. Suzlon is also active in the South American continent operating in the Brazilian markets . North America, in particular the United States, has many sites that offer optimal wind conditions for WTGs. 24. SUZLON (INDIA) India has emerged as a hub of wind turbine manufacturing , with a capacity of over 3000 MW per annum . India ranks 3rd worldwide in terms of total installed wind power . India is one of the few countries in the world to have a Ministry of New and Renewable Energy (MNRE) dedicated to promoting the use of clean, green and environment-friendly renewable energy 25. MANUFATURING FACILITIES IN INDIA Currently Suzlon has 11 manufacturing facilities in India employing over 3,000 people with an output of close to 12,000 MW per year. Name Location Manufactured Components Production Facility Chakan, Maharashtra Generators Control Panel Unit Daman Control Panels Integrated Manufacturing Facility Daman Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly Rotor Blade Manufacturing Facility Dhule, Maharashtra Rotor Blades Tubular Tower Manufacturing Facility Dhule, Maharashtra Tubular Tower Tubular Tower Gandhidham, Gujarat Tubular Towers Integrated Manufacturing Facility Pondicherry Rotor Blade, Nacelle, Nacelle Cover , Control Panel & Hub WTG Assembly Composite Engineering Cell Vadodara, Gujarat Synthetic Fiber 26. CLIENTS AND PROJECTS State Total MW Key Project Sites Tamil Nadu 1275 MW Sankeneri, Devarkulam, Palladam Karnataka 490 MW Kapathgudda, Hassan, Jajikalgudda Kerala 14 MW Agali Andhra Pradesh 8.50 MW Tirupati 1350 MW Dhule, Sangli, Satara 876 MW Bhogat, , Kuchhadi, Sanodar Madhya Pradesh 53.05 MW Ratlam, Dewas Rajasthan 423 MW Soda-Mada, Sadiya, Pohra 27. PLACE (EXPANSION STRATEGIES) The company plans to expand capacity at its plant in China as that market remains the worlds largest and the company returns to profit this financial year. The Ahmdabad - based manufacturer will be capable of making turbines with a combined electricity generating capacity of 1,000 megawatts each year at its China plant by 2013 COMPANY PLANS TO RAISE $1 BN funds for expansion through sale of bonds or convertible debentures.. 28. PROMOTION The company has adopted B2B promotional strategy. The top 5 contents of its B2B portal includes : 1] Pricing information 2] In depth information on products 3] Product evaluation 4] Information that is downloadable 5] A well-defined strategy 29. PROMOTION To get the best results from B2B promotional mix, one needs to concentrate on the following essentials like : What product does the company sells. Target audience of the company. The duration of the sales cycle . The total number of people in the decision making process . 30. Promotional Weapon Advertising Public Relation Direct Sale Sale Promotion 31. PROMOTIONAL STRATEGIES The company can adopt the following strategies for its promotion : 1. Advertise in newspapers 2. Business journals 3. Logo development 4. Sign board 5. Direct sales 6. Direct mail 7. Internet 8. Improve its public relations 32. PROMOTIONAL BUDGET Suzlon will have to spend more on their promotional activities as the sales are declining. More expert professional should be hired so that personal and direct selling can be done effectively . 33. Promotion Budget Type of Promotion Name of source How often Cost of each Total Logo Development Brand Promoters Once at start up Rs 300000 Rs 300000 Newspaper Times of India Once in a week 7500 /week Rs.337500 Sign Board Signtee Media World Pvt. Ltd. Quarterly 85000Rs. / quarter Rs.340000 Direct Mail Company Personnel 6500 letter per quarter 115 Rs/letter Rs 2990000 Direct Sale Company Personnel Daily Basis 5000 Rs./round Rs. 1825000 34. Promotional Budget 100000 337500 340000 2990000 1825000 35. BRANDING & MARKET COMMUNICATION STRATEGIES Branding is crucial for products and services sold in markets. Its also important in B2B transactions because it helps us stand out from our competition. It brings competitive position and value proposition to life, it positions as a certain something in the mind of your prospects and customers. Your brand consistently and repeatedly tells your prospects and customers why they should buy from us. Key differentiators policy for branding : 1. TURNKEY SOLUTIONS 2. VERTICAL INTEGRATION 3. GLOBAL INTEGRATION 4. QUALITY MANAGEMENT & HSE 36. TURNKEY SOLUTIONS Turnkey services range from complex front-end engineering design, construction, installation and commissioning to long-term operations and maintenance as well as the length, breadth and depth of customer requirements across the wind energy value chain. Key benefits we offer clients range from development, to construction to operations. Manufacturing-driven supply chain strengths and global expertise help offer customers the best in quality services. 37. VERTICAL INTEGRATION Foresight of the current economic challenge and adopting a visionary strategy has set us forth to become the most vertically integrated wind turbine maker in the world. Suzlon has gained the critical competitive advantage with: a) Better control over time, cost & quality b) Long-term service support to customers c) Turbine technology integration d) Faster product rollout 38. GLOBAL INTEGRATION Suzlons global experience, local expertise approach to talent capital has ensured a 23-nationality multi- faceted talent pool that goes wide and deep. This gives the advantage of leveraging local talent and creating a truly global expert workforce. The continuing growth in its operations in all key international wind energy markets and presence in all emerging markets is further strengthening global integration. 39. QUALITY MANAGEMENT & HSE Establishment of an independent Quality Management Organization within Suzlon helped define a strategic roadmap with which to drive the organization on a focused goal from quality control to quality excellence . Quality Management at Suzlon seeks to continually leverage upon its size by strengthening its execution capability to deliver a customer satisfied, reliable and robust user friendly product . Suzlon HSE (Occupational Health, Safety & Environment) is a global initiative that establishes a company-wide practice of setting up and maintaining the highest HSE standards with a dedicated approach and organizational commitment. 40. SUZLON EDGE END TO END SOLUTIONS Suzlon provides End-to-End Solutions for the Indian markets in the wind power domain. Suzlons End-to-End Solutions include the following stages: 1. Land and Site Identification 2. Supply of WTG & Accessories 3. Site Infrastructure Development 4. Installation and Commissioning 5. Power Evacuation 6. Life Cycle Operations & Maintenance 7. Assistance for Approvals & Loan Processing 8. Wind Resource Mapping 41. Corporate video 42. Suzlon Energy Ad 43. My Thought : Nothing is interesting in life If you are not interested.