INTRODUCTION OF THE STUDY

Organizational Functioning is an important factor for any Organization to achieve the

desired goals and Objectives. This requires Co-ordination at all levels to smooth functioning.

This report aims to understand the Function of VEESONS ENERGY SYSTEMS PRIVATE

LIMITED relation to different departments.

As a part of two year MBA program at the end of 1 st semester, we had to carry

on a project in an organization in order to understand the organization structure and their

functions. This was a great opportunity to get the first hand information and understand the

functioning of the various departments. I did my Organization Study at VEESONS ENERGY

SYSTEMS PRIVATE LIMITED.

It was a great learning experience as it is quite necessary for all the management

students. The main purpose of doing the organization study was to study the various

departments of the organization and understand their basic functions, their purpose,

achievements, competitors and the mission and vision of the company and their progress

towards that. All general information we get in course is all book knowledge, on which we

entirely cannot depend. It is very important to observe the actual working of an organization

and the overall structure of an organization. The actual professionalism can be studied only

through experience.

CONCEPT OF ORGANIZATION:

Organization is the process of Identifying and grouping the work to be

performed

Defining and delegating responsibility and authority

Establishing the relationship for the purpose of enabling people to work efficiency together

inaccomplishing objectives.

NEED FOR THE STUDY

Veesons Energy Systems Pvt. Ltd., (VESPL or Veesons) is a leading manufacturer

and supplier of power and process Boilers and small power plants from India, started as

premier Industries in 1974. There are five business verticals (business) for small power

plants, Utility Boilers & Jobbing. Veesons serve to customers across various industrial

segments like Chemical, Steel, Paper, Textile, Food processing, Rice mill, Edible oil, Suger,

Drug & Pharma captive power plants, and Independent power plants. It is an ISOO 9001-

2008 & ‘S’ &’U’ stamp Certified company.

Scope undertaken:

Supply of boilers to EPC at power plants including consultancy,

application engineering, conservation/modification, spares and service etc. Veesons are a

medium sized company with high levels of technical, manufacturing and management

capabilities. One can expect the performance, quality and reliability of that of a leading big

company, at the same time a competitive price, unmatchable delivery, excellent performance,

competitive price, prompt service, reliable commercial transactions etc., are the key drivers

for consistent growth. Quest for excellence/perfection, innovation, development of new

products/markets, continuous enrichment of human resources etc., are the hallmark of

Veesons

PRINCIPLES OF ORGANIZATION:

Principle means the theoretical basis on which something is built up. The

theoretical basis is formulated from fundamental truth. Some of the important principles to be

followed for developing round and efficient organizations are:

Principle of unity of objective.

Principle of specification.

Principle of co-ordination.

Principle of unity of command.

Principle of span of control.

Principle of exception.

Principle of flexibility.

Principle of simplicity.

Principle of communication.

Principle of efficiency.

REQUSITIES OF A GOOD ORGANISATION:

The objective are to be clear, candid and well defined and the

organization must havea capacity to achieve it.

All activities therein must be implemented easily and effectively.

All activities therein must be properly coordinated.

Organization must be complete; it should include all essential

activities.

The communication system within the organization must be effective.

The span of control at all level must be reasonable.

There should be provisions for future expansion, whenever needed.

All activities and functions should follow defined procedures.

The organization must be such that it promotes the morality of

employees.

There should be a proper diversion of authority and responsibility.

IMPORTANCE OF AN ORGANIZATION:

Significance of the organization in any institution may be discussed as below:

It ensures optimum use of human resources. It establishes persons with

differentinterest’s skills, knowledge and viewpoints.

It stimulates creativity. A sound and well-conceived organization

structure is the source of creative thinking and initiation of new

ideas.

Use of improved technology good organization provides for optimum

use of technological improvements.

Co-ordination in the enterprise in a good organization, the different

departments perform their functions in a closely related manner.

Executive development the pattern of an organization structure has

strong influence on the development of executives.

It ensures cooperation among workers. A good organization promotes

mutual goodwill and cooperation among workers also

OBJECTIVES OF THE STUDY

The objectives of the study are

To gain practical knowledge about the organizations structure and management

functions.

To study the manufacturing functions of various process and departments.

To know how to deal with customers and how to accept job works.

To produce and maintain good quality of the yarn.

To provide safety and well good facilities to the employees.

To maintain good relationship with workers and management.

The products are reached to the customer in correct time and correct place.

REQUSITIES OF A GOOD ORGANISATION:

The objective are to be clear, candid and well defined and the

organization must have a capacity to achieve it.

All activities therein must be implemented easily and effectively.

All activities therein must be properly coordinated.

Organization must be complete; it should include all essential

activities.

The communication system within the organization must be effective.

The span of control at all level must be reasonable.

There should be provisions for future expansion, whenever needed.

All activities and functions should follow defined procedures.

The organization must be such that it promotes the morality of

employees.

There should be a proper diversion of authority and responsibility

SCOPE OF ORGANISATIONAL STUDY:

The study focus on the overall structure of the organization. In this study, the

researcher analyzed the overall functioning of the firm and also the financial performance of

the enterprise. The researcher made a moderate attempt to have the SWOT analysis of the

study.

METHODOLOGY OF ORGANISATIONAL STUDY

PRIMARY DATA - Primary data were collected from discussions with the Managerial head of

the various departments.

SECONDARY DATA - Secondary data were obtained from the annual report, from

the website and other concerned books.

LIMITATIONS OF ORGANISATIONAL STUDY

Difficulty in meeting with all the Top level Officials.

Certain areas are restricted, so a detailed study is not possible.

Time allotted for the study is insufficient.

INDUSTRY AND ORGANISATION STUDY

GLOBAL SCNERIO

OVERVIEW

The global thermo technology market is very heterogeneous. Nearly all regions differ with

regard to consumption behavior, market structures and competition. The markets are

influenced not only by regional climates and building styles, but also by the existing

infrastructure, energy supplies as well as by local regulations and standards.

The thermo technology market is characterized by a large number of market participants,

both at manufacturer and wholesaler level. Among the traditional heating and hot water

solutions alone, there are over350 brands in Europe, which are marketed by more than 250

manufacturers, partly on a national scale or only regionally. In addition, there are some 130

special suppliers and brands for systems using renewable energy sources. While some

manufacturers have their own wholesale network, the products are mostly sold by

independent sanitary and heating wholesalers, most of who operate regionally. They account

for approx. 70% of brand sales.

The customer base of manufactures and wholesalers of heating and hot water solutions is

equally large and diversified, comprising installers and specialist heating engineers, planners,

builders and companies for systems using renewable energy sources has entered the market in

recent years. Their importance has increased steadily in line with the growing technological

complexity and the more widespread use of renewable energies in the heating technology

sector.

The different customer groups make different demands on and services. While attractive

markups and easy installation and maintenance are most relevant for installers and heating

engineers, planners and builders often attach greater importance to a competitive price and a

comprehensive system. The Veesons Energy Systems private Limited getting 52$ in million

till 2012

MARKET DEVELOPMENT:

The global market for thermo technology products expanded at a moderately higher rate

again in 2006. The sales volume reached 24.4 billion Euros, up 4% on the previous year.

EUROPE

Growing by approx. 6% the European market passed the 11 billion euro mark for the first

time in 2006. The European market was mainly characterized the ongoing change from

conventional to condensing technology and the surge in investments in systems using

renewable energy sources.

A much higher number of heat pumps, solar collectors and solid fuel boilers was sold in

Europe, with sales of these products reaching 1.8 billion Euros. This represents an increase of

over 30% and a 16% share in the total European market.

Traditional heating systems – oil and gas heating system and water-based heat distribution,

which are dominant in Europe – were again the most important sources of sales in the

European thermo technology market and accounted for 59% of the total market volume.

ASIA

The Asian market for thermo technology products continued to benefit from the economic

development in the region and boasted a total volume of 6.9 billion Euros in 2006, which

represents an increase of roughly 3%. The Asian market is dominated by hot water devices,

above all gas heaters and electric water heaters, which account for 53% of the total market.

Solar systems enjoy growing popularity and are in fact the preferred systems for heating of

domestic water in china, the biggest output market.

GROWTH PRESPECTIVE:

The thermo technology market to grow approx 3% to 25.1 billion Euros in 2007. Growth will

continue to be driven mainly by condensing boilers and systems using renewable energy

sources. While growth in condensing boilers will mainly focus on countries with relatively

low market penetration in 2007, demand for electric heat pumps and solar collectors should

pick up on a global scale. The growing popularity likely in these regions. Sales of solar

collectors are expected to receive additional stimulation above all in Spain Portugal, Italy and

brazil and the dynamically growing Chinese market.

The thermo technology market offers attractive opportunities also in the medium term. High

energy prices, the problem of reliable energy suppliers and greatly increased concern about

the consequences of climate change mark a turnaround in public and promote the use of

energy-efficient technologies also in the building sector going forward.

At the same time, consumers throughout the world are attaching increasing importance to

individual comfort and a pleasantly heated home. Growing prosperity, especially in the

emerging economies in Eastern Europe, Asia and Latin America will open up new, untapped

markets for space heating and hot water solutions. Even U.S. consumers are gradually

discovering the benefits of comfortable and energy- thermo technology solutions.

In Europe, by contrast, heating systems are more turning into “lifestyle products”. Silent,

saving and compact devices with attractive designs and remote controlled operation are

becoming increasingly widespread in private homes. The trends towards the operation are

becoming increasingly widespread in private homes. The trend towards the “intelligent

home” with a networked, remote-controlled household will also continue and make new

demands on future technological solutions.

INDIAN SCENARIO

OVERVIEW

The engineering sector is the largest sector in the overall industrial segments in India. The

sector employs over 4 million skilled and semi-skilled workers (direct and indirect). It is a

diverse industry with a number of segments, and can be broadly categorized into two

segments:

THE HEAVY ENGINEERING SEGMENT, AND

THE LIGHT ENGINEERING SEGMENT

The sector is relatively less fragmented at the top, as the competencies required are high,

while it is highly fragmented at the lower end (e.g unbranded transformers for the retail

segment) and is dominated by smaller players.

THE HEAVY ENGINEERING SEGMENT

The heavy engineering goods accounts for bulk of the engineering goods production in India.

Most of the leading players are engaged in the production of heavy engineering goods and

mainly products high-value products using high-end technology. Requirement of high level

of capital investment poses as a major entry barrier. Consequently, the small and unorganized

firms have a small market presence.

THE LIGHT ENGINEERING SEGMENT

The light engineering goods segment, on the other hand, uses medium to low-end technology.

Entry barrier is low on account of the comparatively lower requirement of capital and

technology. this segment is characterized by the dominance of small and unorganized players

which manufacture low-value added products. However, there are few medium and large

scale firms which manufacture high-value added products. This segment is also characterized

by small capacities and high level of competition among the players.

The major end-user industries for heavy engineering goods are power, infrastructure, steel,

cement, petrochemicals, oil & gas, refineries, fertilizers, mining, railways, automobiles,

textiles, etc. light engineering goods are essentially used as inputs by the heavy engineering

industry.

KEY GROWTH DRIVERS OF INDIAN ENGINEERING SECTOR

The engineering sector in India has been growing on the back of growth in ht user industries

and several new projects being undertaken in various core industries such as railways, power,

and several new projects being undertaken in various core industries such as railways, power,

infrastructure, etc. capacity creation in sectors such as infrastructure, oil & gas, power

mining, automobiles, steel, refinery, consumer durables, etc,. is driving growth of the

engineering industry.

ENGINEERING OFF-SHORING SERVICES

India can stretch the off-shoring industry further to tap the $750 billion-a-year global

engineering services industry. The country, which enjoys a strong position in the automotive

and high-tech telecom engineering services market with expected earnings of &25 billion by

2020, can nearly double it, according to a latest industry Report. Aerospace offers the

greatest potential for expansion, though it is one of the toughest opportunities to tap because

of its close association with the defense sector.

Engineering services are a $40 billion opportunity for India by 2020. The total offshore

engineering spend is expected to grow to $150-$225 billion by the year 2020, and India with

its talent pool and existing experience in engineering services, is well suited to realize 25

percent of this opportunity. Engineering services off shoring presents a tremendous

opportunity. It will not only generate significant revenues but will also place India on the

global innovation map, industry experts said in the report. High-tech and telecom are the

dominant and fastest growing sectors, with 30 percent of the market. And, with traditional

engineering powerhouses-USA, Germany and Japan – having a lead in engineering spend, the

report also called for greater support from the government to realize this opportunity.

HEAVY ENGINEERING SECTOR

The heavy engineering sector can be classified into two broad segments – electrical and non –

electrical machinery and equipment segments. Electrical machinery includes various

machinery and equipments segments. Electrical machinery includes various machinery and

equipments used in the purpose of power generation, transmission and distribution such as

generators and motors, transformers and switchgears.

The non-electrical machinery includes machines/equipments used in various sectors such as

material handling equipments (earth moving machinery, excavators, cranes, etc), etc

BOILERS

The Indian boilers industry has the capability to manufacture boilers with super critical

parameters up to 1,000 MW unit size. BHEL is the largest manufacturer of boilers in the

country, with a market share of over 60%. It has the capability to manufacture boilers for

super thermal power plants, apart from utility boilers and industrial boilers.

The widening spectrum of opportunities in the power sector with the rising demand of

economic development has paved the pathway for dwelling the equipment supply chain. The

rising number of players and varied options available for the power plant equipments has

increased the apprehension of the equipment stakeholders.

The report provides an in-depth understanding of the boilers, turbine and generator present in

India by benchmarking all the key manufacturers and suppliers based on the technical

specifications of the various types of BTG currently available and expected future

technological changes. The report will also benchmark key players based on their pre-sales

and post-sales performance and services.

The methodology followed will quantitatively and qualitatively benchmark all the boilers

based on their application into sectors such as power (thermal, hydro, nuclear, biomass and

wind), iron and steel, cement etc and will provide quantitative detail specification (pricing,

design, and technical specification, efficiency etc) and qualitative decision parameters

(presence of manufacturing facility, sales and service station, after sales services, guarantees

and warrantees etc) of all the products available for different national and foreign

manufacturers and suppliers present in the market.

The report comparative analysis of all the public, private and foreign players in the market

with their technologies and thus serves as a complete guide to the various players in the

market for the technologies and thus serves as a complete guide to the various players in the

market for the currently available Boiler design, technicalities, pricing and other details. The

report will assist all the players in taking informed decisions and will act as a one-point

information source for the consumers for their procurement and sourcing needs.

The demand for new boilers, especially in segments such as sugar, textile and garment, and

paper and paper products are on an upswing and have resulted in introduction of high-

efficiency boilers that conform to current emission standards. In the high capacity boiler

segment, competition is confined to a few national and regional participants combined with

thread from Chinese products. Consumers prefer suppliers offering competitive product

pricing, technical expertise, quick after-sales service and add-ons such as O&M guarantee

and warrantee terms for boilers. Investment in R&D to improve design capabilities and

develop new technologies with multi-fuel options and enhanced efficiency is a key to

overcome competition.

KEY PLAYERS IN THE BOILERS INDUSTRY

MATRIX BOILERS PRIVATE LIMITED:

Company overview:

An organization promoted by experienced technocrats to manufacture energy

saving thermal systems. The basic motivation behind this project is the better designing of

thermal systems could help savings in the operation of systems. The benefit earned out of

reduction in cost of operation is always in excess of additional cost incurred in the cost of

development of the products. The project is different as complacent to the existing ones in the

line of activities.

To combine fundamental science, technology data and practical experience to produce a

steam generating system which meets the users steam supply requirements in the most

economical package with an yearly turnover of more than 30 crore.

GB ENGINEERING ENGTERPRICES PRIVATE LIMITED

Company overview:

GB engineering enterprises private limited has made a defined financial growth over the

years. Being a silver jubilee company, with feathers’ to its capital by achieving high

standards of safety and zero labour unrest, GB has always strived to achieve customer

confidence in all its endeavors and scaling projects, which is proved by its receiving of

continuous-repeat orders from most of its clients. The partial customer list demonstrates the

quality conscious work-style of the organization. Gaining confidence through strategic

alliances and partnerships, GB has embarked on a sizeable capacity expansion program with

a captive industrial Estate, establishing manufacturing centers at various strategic locations in

other parts of India.

CETHER VESSELS LTD

COMPANY OVERVIEW:

Cethar limited erstwhile Cethar Vessels Ltd was founded in the year 1981 and commenced its

business operations in the year 1984.

The operations started with manufacture of atmospheric fluidized bed boilers up to 15TPH

for industrial applications over a period of time it has grown to keep pace with opportunities

and it it now capable of design, manufacture and construct thermal power plants up to a unit

size of 800MV and solar thermal power plants. The company has achieved a scale of Rs 2430

Cr during the year 2010-11. The human resources strength has grown to 4150 including in

subsidiaries.

PEST ANALYSIS:

Political, Economical, Social, Technological analysis describes a frame work of macro

environmental factors. The goal is to helps managers better understand the market

before making operational decisions.

POLITICAL FATORS:

a. Political stability: Indian government has changed its role from controller to facilitator

with prime focus on providing better infrastructure, growth oriented economic

policies and right environment to attract investments. Many companies have entered

into India and affect the competitive environment with the Indian companies.

b. Tax policies: government has allowed certain industries like boiler industry in special

economic zone for tax concessions for industrial growth.

c. Tariff: the liberalization steps, such as, relaxation of the foreign exchange and equity

regulations, reductions of tariffs on imports, and altering the banking policies, has

played an equally important role in bringing the Indian boiler industry to great

heights.

d. Ethical standards: there are certain ethical standards for boilers industry.

e. Employment regulations: Heavy power shortage in India is resulted in reduction in

energy support to the industries this has resulted in the own generation of energy. So

need for boilers are in upward trend. So the regulations for the employment are very

high.

ECONOMICAL FACTORS:

a. Ties to the emerging economies.

b. International trade regulation for government spending is in specific priorities.

c. Contribution of GDP rate is around 4% in the boiler industry.

d. Stages of the business cycle are in the effect on short term business performance.

SOCIAL FACTORS

a. Changes in distribution of disposable income

b. Attitude towards foreign products is good

c. Improvement in quality of products in the boileers industry is the stength

d. Mismatch between the education and labour market in this industry.

e. Essential framework for active workers in market policies

TECHNOLOGICAL FACTORS:

a. Research and development activities is good .

b. Automation is partially implemented.

c. Technological incentives are good.

d. Government and industry focus on technological effort is more.

e. There is a speed in technology transfer.

f. Focus is more ono renewable energy.

PORTER’S FIVE FORCE MODEL

Michael E. Porter’s 1980 book “competitive strategy” techniques for analyzing industries

and competitors.” It is useful to analyze a company’s industry structure and its corporate

staregy. These forces help us to analyze everything from the intensity of competition to the

profitability and attractiveness of an industry.

THE PORTER’S FIVE FORCES MODEL FOR VEESONS ENERGY SYSTEMS

PVT. LTD

About porter’s five force model and the descriptions are following below:

1. Potential competitors/ barriers of entry (companies currently not competing in

the industry but have the necessary resources to do so)

INDUSTRIES COMPETITO

RS

POTENTIAL

ENTRATS

BUYERS

SUPPLIERSBargaining power of suppliers Threat of new Buyers

Bargaining power of Buyers

Threat of substitute products or service

POTENTIAL ENTRANT

Substitutes

There are many substitutes on the basis of customer’s

requirement

Industry diversification

Suppliers are serving multiple industries & the total industry revenue

accounting for only a small portion of the supplier’s total revenue

Swing cost Absence of switching cost to use another supplier

Forward integration Forward integration of suppliers is very hard since it has new

diversification and huge investment

Backward integration Backward integration of company is very hard since it has new

diversification and huge investment

2. Threat of substitutes (product in another industry that satisfy similar needs.)

THREAT OF SUBSTITUTES

No. of substitutes

There are several number of substitutes are available. Most

commonly used form of substitutes are

Solar

Hydro

Nuclear

Geothermal

Wind

Prices of substitutes

It will vary according to the consumption & utility of the

concerned equipment. It will higher than the boiler’s cost in

several namely nuclear & thermal power and less in some

cases but not equally efficient like wind & Geothermal

Competitor’s quality

Higher in some case Nuclear & thermal & lesser in some

cases like wind & Geothermal

3 Intensity of rivalry among established firms (Direct competitors competing for

market share)

INDUSTRY RIVALRY

NO. OF

COMPETITORS

4 [FOUR]

Thermax boilers Pvt. Ltd.,

Cithar vessels

Matrix Pvt. Ltd.,

General Boilers Pvt. Ltd.,

Size of competitors

EQUAL

SMALL

LARGE

Industries Structure

OLIGOPOLY MARKET COMPETITION

Suppliers will come around few in numbers but consumer will be the

entire manufacturing industry across the globe

Industry growth rate

7% [approx]

Exit barriers

Exit barriers are high because of Huge Fixed & Fluctuating cost

involvement

Competitor

diversification Highly diversified, across the globe

Competitors promotions Often through Tenders, Notices & Websites but not in TV & Dailies

as commercials

BARGAINING POWER OF BUYERS (CUSTOMER)

BARGAINING POWER OF BUYERS

Size of buyers Large (more than 100 crore turnover)

Byers Alternative Around 4

Small because of Huge cost of individual project

Buyer dependency No buyer’s segments are more in market

Buyers switching It is very easy since the competition and prevailing of the

competition is huge in market.

Amount of purchase

Backward Integration No, Need of technical Knowledge and Huge investment is the

barrier for backward integration to the buyers

5. Bargaining power of suppliers

BARGAINING POWER OF SUPPLIERS

Substitutes Yes on the basis of customers requirement

Serving Multiple Industry Yes

Switching cost No

Buyer Dependency No buyer’s segments are more in market

Forward integration No, it needs huge investment and diversification in

Manufacturing segment

Backward integration No, it needs huge investment and diversification in

Manufacturing segment

BACKGROUND AND HISTORY OF THE COMPANY

VEESONS ENERGY SYSTEMS PVT.LTD

Veesons energy systems pvt.Ltd.,(VESPL OR Veesons ) is a leading manufacturer

and supplier of power and process Boilers and small power plants from India, started

as premier Industries In 1974.

Veesons can now supply all types boilers from 0.5 to 250 TPH for pressure up to 150

kg/cm2 with or without superheat for all types boilers from 0.5 TPH, 10.5 kg/cm

saturated steam manually operated wood fired boiler to 250 TPH, 120 kg/cm2 washery

reject fired/fully automatic CFBC boilers to 25MV small power plant on EPC basis.

There are five business verticals (business groups) Viz process heat solutions (PHS),

industrial power & process (IPP), engineering pr plants, procurement and construction

(EPC) for small power utility Boilers &jobbing

Manufacturing experience of 35 years for BHEL, a leading Utility Boilers

manufacturer in the world for their 100/200/500 MW Boilers is the basic strength of

Veesons.

Veesons enjoy a very high brand Name in the market in India and in some countries

in Asia and Africa having supplied more than 4000 Boilers. Now supplying about 500

boilers/ annum (No.2 in all India level.

An ISO 9001-2008 & ASME ‘S’ & ‘U’ stamp certified Company.

Veesons is major exporter of boilers doing about 25% of turnover. Has exported 3

No’s of 200 TPH TG for sugar Industries, 2 No’s AFBC power boilers, more than 75

process Boilers to countries like Srilanka, Bangladesh, Thailand, Indonesia, Ethiopia,

Nigeria. A recognized ‘star Export House’, awarded regional export Awards and

National Export Award (2010-2011 )

Quick delivery excellent performance, competitive price, prompt service, reliable

commercial transactions etc., are the key drivers for consistent growth.

Quest for excellence/perfection, innovation, development of new products/markets,

constant diversification, continuous enrichment of human resources etc., are the

hallmark of Veesons.

FACILITIES

Covered shop Floor Area: 15,000 sq meter

Open manufacturing Area: 2,790 sq meters

Covered storage area: 1,120 sq meter

Power connected total: 48000 KVA

(380 KVA-1), (250 KVA- 1), (180 KVA- 1), (25KVA-1),

(62.5 KVA - 2)

Air compressors: screw compressors: 3

Portable compressors: 7

MATERIAL HANDLING FACILITIES

EOT 30 Ton : 4 EOT 15 Ton : 2 EOT 10 Ton : 12 A Frame Crane 10 Ton : 4

A Frame Crane 10 Ton : 3 Mobile Crane 12 Ton : 3 Mobile Crane 10 Ton : 1 Tractors with Trailer : 2

CUTTING FACILITES

CNC plasma / oxyacetylene cutting machine : 1

Manual plasma Cutting machine : 1

Band saw 300 mm capacity : 1

Shear 10 mm capacity : 1

Hydraulic iron worker 60 Ton : 1

Portable Gas cutting machines

Portable Abrasive cutting machines

WELDING FACILITIES

MMA welding power sources : 180

TIG welding equipment : 11

MIG/MAG welding machine :36

Stud welding machine : 2

Column & Boom SAW welding machine : 1

Long seam SAW welding machine : 1

SAW welding machine :

Automatic Tube to Tube Sheet welding machine : 1

Rotators

10 Tons : 3

60 Tons : 4

80 Tons : 1

100 Tons : 3

Pipe butt welding machine : 1

Panel welding Machine : 1

TESTING FACILITIES

Hydrostatic testing up to 450 bar

Ultrasonic thickness measurement

Ultrasonic testing

Radiography

Portable metal detector

Dead weight tester

Magnetic particle testing

FACILITIES – IT SERVICES – HARDWARE

OPEARTING SYSTEM : MS-Windows 2008 SERVER

IBM – SERVER X3650-M3 : intel Xeon 6c x5650 2.66Ghz X 2nos/ 12MB L3

cache/1333Mhz/ 32GB RAM /IBM 300GB 2.5” 10KRPM Hot swap SAS 6GBPs

Hard Drive x2nos / IBM RPS.

STORAGE (SAN BOX) : AMI storage. (storTrends 2401i IPSAN& NAS (unified

storage) Advanced License with High availability support)

SWITCHES : CISCO Layer 3- 24 port Managed + 4XGigabit SFP and CISCO Layer

2 switches

SECURITY: FIREWALL & mcAfee Antivirus Production

E-MAIL SERVER : ZIMBRA – An open source software in Linux platform

CABLES : Optical Fiber cable, UTP 6 cable & CAT 6

CLINT (User) : windows client as well as Linux Client.

PLOTTERS: Hi- speed OCE plot wave 300 (Mono) and HP 4500 A0 color plotter.

PRINTERS : Variety of printers(Mono & color) from Dot-matrix to Network

printer(All-in-one)

COMMUNICATION : Primary Connection through Optical Fiber Cable (OFC).

Secondary connection through RF Connectivity for Redundancy purpose.

FACILITIES – AGNI ERP

COMMERCIAL : Release of job orders, production clearance, Dispatch Challan,

Computerized invoices for Dispatches and contract Status Review (CSR)- projeace

management.

ENGINEERING: Release of Drawings and BOM, Release of Assembly List and parts

list pertaining to Assemblies, shipping list, sub delivery indenting and Design change

Note. Standardized products including popular modals of package type boilers.

MATERIALS PLANNING & PRODUCTIONN: Material directory, Materials

indenting, Generation of Material Issue Voucher, Materials Allocation, Materials

cumulation for optimum cutting plan & subcontracting order, capacity-wise loading

job schedule for contractor.

QUALITY: Inward Inspection for all incoming materials, Outgoing inspection for

finished components and preparation of Data Booklet. NDT administration and

costing. Standard Technical Delivery Conditions for bought out items.

SITE MANAGEMENT: Generation of PO for Erection / Insulation and Maintanace

of History Card and SITE FEED BACK system (SFB)

FINANCE : Purchases invoice processing for Bill approval, Ledger posting, cash

advances, Cheque requisition, printing and its posting, cash Purchase posting. Trial

Balance, Ledger Details, P&L and Balance sheet and Overhead budget control

COSTING : Materials and service Cost appropriation to a job using cost heads.

Costing of Finished goods inventory, WIP and completed jobs.

HUMAN RESOUCES: Recruitment, Biometric-Attendance, Shift Management, OT

work Allocation, canteen management, Leave & salary process, Muster Roll Register

and all statutory processess

PRODUCTS AND MARKETS:

ABOUT BUSINESS GROUPS (BG)

Veesons has created verticals for each Business group to take the best care of the interests of

customers, company and other stake holders effectively.

The BG is responsible for all front end operations like sales/marketing, engineering, contracts

and services.

The back end operations like purchase, production, planning, production and quality are

common for all BG but separate team in each function

PACKAGED BOILER-MANUAL

Capacity ranges from 0.5-6.0 TPH with pressure up to 21 kg/cm2 (g). these types of boilers

are fitted with integral furnace, delivered and installed as a single package. This occupies

very less floor space and minimal site work. Solid fuels like wood logs, coal, Lignite, coconut

shell, Briquettes Bagasse bales etc., are fired manually. Large water hold up in this boilers

helps for fluctuating load demands. These boilers are typically used in small process houses

like Textile, Chemical, Paper, Food industry, Wood processing, Drugs< Rubber, Oil

extraction etc.,

PACKAGED BOILER – AUTOMATIC

Capacity ranges from 1.0 to 6.0 TPH with pressure up to 17.5 kg/cm2 (g). these types of

boilers are fitted with integral furnace, delivered and installed as a single package. This

occupies very less floor space and minimal site work. The fuel is conveyed and fed

pneumatically inside the furnace. Fibrous fuels like Rice Husk, Wood chips, Crushed coconut

shell, GN Shell, Saw dust etc., are used in this type of boilers. Large water hold up In this

boilers helps for fluctuating load demands. These boilers are typically used in small process

houses like Rice Mill, solvent extraction, Cocoa Industries and Wood processing etc.,

Type : Horizontal multitubular (HMT) Boiler Dry back, Semi wet back, fully wet back

Capacity : 1-6 TPH (Solid fuels), 1-25 TPH (Oil/Gas)

Pressure : 17.5 Kg/cm2

Fuels : Rice Husk, Saw Dust, Crushed Coconut Shell, Wood Chips, etc.

COMBINATION BOILERS

Capacity ranges from 3 to 15 TPH pressure up to 24 kg/cm2 (g). these boilers are typically

having Membrane wall radiant furnaces with shell type convective zone ensure quick

steaming. Large furnaces with shell type convective zone ensure quick steaming. Large

furnace volume ensures complete combustion and higher combustion efficiency. Adequate

number of doors ensures easy charging of fuel as well as removal of ash below the furnace.

Solid fuels like Wood logs, Coal, Lignite, Briquettes and Bagasse bales are fired manually,

Where as Rice husk, coal can be fired automatically through fuel feeding system. These

boilers are used in Process industries like pulp and Paper, Food, Textile, Chemical, pharma

industries etc,.

BI-DRUM BOILERS

Capacity ranges from 8 to 25 TPH and pressure up to 32 Kg/cm2 (g) either with or without

bed coils. The two drums in these types of boilers are connected by a large number of

convective heat transfer tubes. Both over bed & under bed options, with better fluidization &

more residence time, great combustion efficiency can be achieved. Fuels like Coal, Rice

husk, lignite, wood chips, agro waste etc can be easily fired, used in the bigger process

houses. Larger capacities and high pressure boilers are used for cogeneration of process

steam and power using a suitable Turbine.

Type: FBC Boiler (With & Without Bed Coils)

CO GENERATION SYSTEMS & CAPTIVE POWER PLANTS

From 0.5 MW to 5 MW with very low unit cost for power generation. High efficiency AFBC

boilers. 80% for Husk and 83% Coal, Reliable Turbine. Offering with accessories for trouble

free operation. Instrumentation for steam and power load balancing and dump condenser to

control fluctuating load. Turnkey projects with overall responsibilities. Easy operation for

process industries. Typical industries like Rice mill, pumps and papers, textiles etc.

VEESONS IN NUTSHELL (CERTIFICATES)

SWOT ANALYSIS OF VEESONS ENERGY SYSTEMS PVT. LTD., TRICHY

STRENGTH

Quality product

Prompt service

Low cost

ASME certifications

Strong marketing team

Environment management system development

WEEKNESS:

Unstructured work process

Lack of co-ordination between departments

Minimized TQM adaptations

Lack of safety measure

OPPORTUNITY:

Exports to offshore destinations

Small industries

THERATS:

Heavy competition

Continuous downtrend in industry

Economical instability.

VISSION:

To be one in the top five companies in boiler manufacturing industries by 2015 across the

globe or “steaming Ahead with a Mission”

MISSION:

One stop solution for Engineering, Procurement and construction (EPC) of power projects up

to 50 MW.

QUALITY POLICY:

We commit our self manufacture and deliver quality product and services consistently that

comply with national and international standard codes and quality management system and

enhance customer satisfaction through continual improvement in all functions.

PRODUCTS

Turnkey EPC Services for

Thermal power plants upto 50 MW (IPP/ CPP/ Co-generation)

Solid fuel fired Plants (coal/ Lignite / Bio mass/ washery rejects / Dolacher /

municipal solid waste)

Oil /gas Fired Plants

Waste heat based plants

OUR STRATEGY

Work with customer in pre project stage

Understand critical areas and its impact on plant Design

Value addition for the project

PHILOSOPHY OF VESPL:

QUALITY PRODUCTS

To keep emphasis on the quality products services as these are key for sustaining in the

business and maintaining growth.

RESEARCH & DEVELOPMENT

To continuously improve the performance of existing products and to new products through

innovations which is essential to reach and maintain the leadership in the industry.

CUSTOMER SATISFACTION

Believe in getting repeat orders from satisfied clients and to secure referral order

Corporate governance

To maintain transparency in the system adoption of latest management techniques and

technological up gradation in the system.

Corporate image

To attain highest level of respect in the eyes of customers, vendors, employees and

stakeholders.

ORGANISATIONAL ASSET

Strong design setup Very high fabrication expertise

Excellent production facilities

Dedicated employees

Customer oriented sales force

Dynamic growth oriented management

PHONOMENAL GROWTH DUE TO

Quality

Timely delivery

Prompt service

Competitive Price

Transparency is all business transactions

BUSINESS LEVEL FUNCTIONS

OPERATIONS DEPARTMENT

PURCHASE

THERE ARE THREE MAJOR DIVISIONS

Raw material purchasing

Sub delivery purchasing

Consumable purchasing

Parts in steam boiler can be classified mainly into two one is pressure parts and other in the

hand is non-pressure part.

1.PRESSURE PARTS OF BOILER

Pressure parts are parts which are impacted by pressure either from inner or outer parts.

Example: water Wall Tubes, Generating Banks Tube, Super heater, Rejeated, down comer

pipe, Riser, Header, Steam Drum, And Economizer.

2. NON PRESSURE PARTS OF BOILERS

Non pressure parts are material in steam boiler which is not influenced by pressure.

Example: Overall structure, pipe support, tubular air Heater, Air Ducting, Flue Gas

Ducting, Casing, Rockwool, Lagging Refractory, Fire Brick, Insulation, Hopper, and

Coal Bunker.

These raw materials can be purchased in a due or inn bulk accordingly by the concerned

departments on the basis of needs for a project. The above mentioned departments

procuring the needed raw materials their process are explained individually next.

PROCESS

Raw materials such as metals and sheet sub delivery items & consumables other

important key materials are procured by concerned departments division. It has certain

flow of process in the division as below.

RAW MATERIAL PURCHASING

VENDOR

SUB DELIVERY PURCHASING

CONSUMABLE PURCHASING

MATERIAL REQUIRMENT PLANNING

PROCUREMEN T-PURCHASING

STORES

VENDOR

MATERIAL REQUIREMENT ENGINEERING

PROCUREMENT-PURCHASING

STORES

VENDOR

VENDOR RATING

Vendor rating is the result of a formal vendor evaluation system. Vendors or suppliers are

given standing, status, or title according to their attainment of some level of performance,

such as delivery, lead time, quality, price, or some combination of variables. The

motivation for the establishment of such a rating system is part of the effort of

manufacturers and service firms to ensure that the desired characteristics of a purchased

product or service is built in and not determined later by some after-the-fact indicator.

The vendor rating may take the form of a hierarchical ranking from poor to excellent and

whatever rankings the firm chooses to insert in between the two.

On the basis of below four criteria vendors are being rated in Veesons Energy System

Delivery timing

MATERIAL REQUIREMENT- STORES

PROCUREMENT- PURCHASING

STORES

VENDOR

(BIDAAS INDUSTRIAL SERVICE)

Quality

Response to queries

Service after sales

DEPARTMENT HIERARCHY

PLANNING

PROCESS

MD

DIR - OPERATIONS

DGM

MANAGER

DEPTY. MANAGER

ENGINEER

JNRO: job number release order

DPL: dispatch part list

PGMA: product group main assembly

MIV: material issue voucher

Marketing department taken market survey and pick order

Commercial dept. release JNRO engineering/purchase/service/planning/expediting

(coordinate monitor all dept and check status of all)/production/qc.

Engineering dept. prepare DPL and PGMA.

PRODUCTION

PROCESS

ORDER RECEPTION FROM MKT DEPT. & INTIMATION TO COMM. DEPT.

GENERATION OF JNRO - COMM.

RELEASING OF JNRO. TO ALL OTHER

GENERATION OF DPL & PF. OF JNROGMA BY ENGG. DEPT WITH REF. OF JNRO

PGMA BY ENGG. DEPT WITH REF/ OF JNRODATION OF DPL & PGMA BY PLAN

AGENCY ALLOCATION FORMS BY PLAN. DEPT TO PROD. DEPT.

MATERIAL ALLOCATION THROUGH MIV

NOTE:

In Veesons, job shop production only going on (as per purchase order, Veesons do)

In Veesons every product is unique. So fully automation is not possible

In production area, three bays are there.

QUALITY CONTROL

PROCESS:

RECEPTION OF DRAWING FROM ENGG. DEPT THROUGH PLANING

PREPARATION OF BILL OF MATERIALS USING DPL

PO/STOCK VERIFICATION

STOCK MATERIAL INWARD INSPECTION REPORT

MATERIAL ISSUE VOUCHER

RAW MATERIAL INSPECTION

STAGE COMPLETION AS PER PROCESS ROOT CARD

QUALITY INSPECTION BY QC AS PER PRC

TESTING & DESPATCHING

ENRY OF MATERIAL INTO THE BAY

IT HAS TWO DIFFERENT TYPES IF QUALITY CONTROL ACTIVITIES AS

FOLLOWS

QUALITY CONTROL

EXISTING JOB NEW JOB

NEW JOB

MACHINE MAINTANANCE:

This is a preventive measure that a company needs to do frequently in order to maintain the

machines in proper working conditions. It is carried out every month for the important

machines which is the lifeblood of boiler manufacturing process, those machines are as

follows:

EX: Rolling machine

Drilling machine

EXISTING JOB

MACHINE MAINTENANCE

PREVENTIVE BREAKDOWN

PREVENTIVE MAINTANANCE

Rot cranes

Lathe

This is a corrective process does to rectify the breakdown if any such effects happens.

WELDING:

In the production area, there are 4 types of welding is using

1. SMAW (shielded metal arc welding)

2. FCAW (fleux cored arc welding)

3. TIG welding (tungsten inert gas)

4. SAW (submerged arc welding)

Notes:

Tag for pipe joints, tubes etc.

SMAW for from tag to all (it have high strength)

FCAW or semi auto welding (for big grew) (quick process possible) (but it have low strength

as compared with SMAW)

SAW (it having fast as compared with SMAW)(it will able to provide high quality as equal to

SMAW or even high)

From ASME sec9 (welding procedure specification)

Problem they facing: uncontrollable situation (weld in night), co2 contain in the gas

(unwanted)

SHIPPING

BREAKDOWN MAINTANCE

PAGE33

ENGINEERING DEPARTMENT

DESIGN

MATERIAL DEPARTMENT

RAW MATERIAL (SUB FRLIBRY) STORES:

CONSUMABLE STORE

Consumables stores are those goods other than main raw materials which are consumed

during production like oil, grease, wilding electrode etc.

Consumables are procured from bidaas industrial service association

Wastages in the production process are resalable by the factory to the scrap merchants

TECHNICAL & SERVICE DEPARTMENT

INWARD INSPECTION REPORT cum MRV

REQUESITATION SLIP TO INWARD QC

QC CHEC

INBOUND STOCK VERIFICATION & ENTRY IN DAYBOOK AGAINST PURCHASE ORDER

VENDOR

INVENTORY

MIV RAISE – PLAN DEPT

RELEASE OF STOCK FROM STORES THROUGH MIV

ERECTION & COMMISSIONING:

PAYMENT MODE:

Mobilization pay : 10%

Work progress : 65%

Completion of erection : 15%

Final pay (after successful commissioning) : 10%

ERECTION PROCESS CONTRACTORS:

In erection (service)-IPP, sequentially there are four contractors they are mechanical,

refractory, insulation contractors are working under column erection. Then pressure

parts are taking for hydro test immediately i.e. ground work and it is inspected by IBR

act. Then lifting and erection process starts i.e. shell/ drum and can lift water in that

wall, kift economizer coil, lift steam drum etc.

MARKETING AND COMMERCIAL DEPARTMENT

MARKETING & PROPOSAL

MARKETING AND COMMERCIAL DEPARTMENT

MARKETING & PROPOSAL

PHASE I MECHANICAL CONTRACTOR

PHASE II REFRACTORY CONTRACTOR

PHASE III ELECTRICAL CONTRACTOR

PHASE IV INSULATION CONTRACTOR

CUSTOMER COMMENTS & CLARIFIATIONS

RECEIVING OF ORDER

ELECTRONIC DATA PROCESSING AND IT SERVICES DEPARTMENT

ELECTRONIC DATA PROCESSING:

Electronic Data Processing (EDP) is separate internal and external management

information across and entire organization, embracing finance/accounting,

manufacturing, sales and service, customer relationship management, etc. EDP

systems automate this activity with an integrated software application called AGNI.

The purpose of EDP is to facilitate the flow of information between all business

functions inside the boundaries of the organization and manage the connections to

outside stakeholders.

COMMERCIAL: Release of job orders, production clearance, Dispatch Challan,

Compurerized Invoices for Dispatches and contract Status Review (CSR) – Project

management.

ENGINEERING: Release of drawings and BOM, Release of Assembly List and Parts

List pertaining to Assemblies. Shipping list, sub delivery indenting and design change

Note. Standardized products including popular models of package type boilers.

MATERIALS PLANNING & PRODUCTION: Material directory, Material

Indenting, Generation of Material Issue Voucher, Material Allocation, Materials

Cumulating for optimum Cutting Plan & Subcontracting order, Capacity-wise loading

job schedule for contractor.

QUALITY: Inward Inspection for all incoming materials, Outgoing Inspection for

finished components and Preparation of Data Booklet. NDT administration and

costing, Standard Technical Delivery Conditions for bought out items.

SITE MANAGEMENT: Generation of PO for Erection / Insulation and Maintanance

of History Card and SITE FEED BACK system (SFB)

FINANCE: Purchase Invoice processing for Bill approval, Ledger posting, Cash

advances, cheque requisition, printing and its posting, Cash purchase posting. Trial

Balance, Ledger Details, P&L and Balance Sheet and Overhead budget control.

COSTING: Material and services Cost appropriation to a Hob using cost heads,

Costing of Finished goods Inventory, WIP and completed jobs.

HUMAN RESOURCES: Recruitment, Biometric-Attendance, Shift Management,

OT work Allocation, Canteen Management, Leave & Salary process, Muster Roll

Register and All statutory processes.

FINANCE DEPARTMENT

COSTING & BUDGETING

ACCOUNTING

TREASURY MANAGEMENT

First, indent raise by the proposal department, budget planning for whole project is by

commercial department, then the questions may raise by finance department if the purchase

department procure materials at the high cost against budget then it is taking as a special case

and the purchase dept. and costing dept. will report it to the managing director and then based

upon his suggestions again they will revise the budget, after the budget planning these

process is done by costing department. Then accounts department making the recording of

day to day transactions, and then letter of credit will come

FINANCIAL RESULTS

YEAR 31.3.2012 YEAR 31.3.2011

Turnover 15167.78 21713

Profit before int & depn 1555.70 21713.03

Depreciation 123.27 107.42

Interest 1377.27 975.98

Profit before tax 54.86 653.04

Tax due 0 133.08

Profit before tax 54.86 519.96

(for the 2012-2013 sales-15000 Lakhs profit not yet calculated )

TURNOVER:

The same got reduced to Rs.15167.78 Lakhs as against Rs. 21713.00 Lakhs in the Last year

i.e. the decrease in turnover was by 30.15%. The company is taking all efforts to maintain

and improve the turnover and the directors are confident that the trend is bound to continue in

the coming years.

PROFIT:

The Net Profit for the year was at Rs. 54.86 Lakhs as compared to Net Profit of Rs. 653.04

Lakhs in the earlier year, i.e a decrease of Rs. 598.18. The reason for the fall in Profit was on

account of Two factors- one, the fall in turnover by 30% had its direct impact on operating

margin and two—the increase in interest Cost was by Rs 402.29 Lakhs. Otherwise, the profit

for the current year would have been better... Considering the fall in Profit, the directors have

decided to reduce their salary from Rs 150.00 Lakhs to Rs 30.00 Lakhs only.

The Directors are negotiating with the foreign customers for the compensation for the fall in

the value of Rupee Vis a Vis Euro and the same will be accounted as and when realized.

FINANCE:

The Bankers, M/S State Bank of India and M/S IDBI continued to extent their full support

and the Directors place on the record, their sincere thanks to them.

HUMAN RESOURCE MANAGEMENT DIVISION

The Human Resources department, working with people from other departments, is

responsible for the people in the organization. There are 700 direct employees and 500+

Contract Based Employees and 500+ Contract Based Employees are working in Veesons

Energy Systems Pvt. Ltd..,

Functions of Human Resource Department in Veesons Energy Systems Pvt. Ltd., are

Job design

Job analysis

Human resource planning

Recruitment

selection

Hiring

Induction

Performance Evaluation

Compensation Management

Training & Development

Employees movements

Welfare administration

Discipline administration

Health & safety Administration

Grievance Administration

Labor relations

JOB DESIGN:

It is designed as the function of arranging task duties and responsibilities in to an

organizational unit of work for the purpose of accomplishing a certain objective.

TECHNIQUES OF JOB DESIGN:

Scientific techniques

Job enlargement

Job rotation

Job enrichment

Group technique.

JOB ANALYSIS:

It includes systematic analysis of the job and the characteristics of the desired job holders.

JOB ANALUYSIS CAN COLLECT IN TWO FORMS:

Job description

Job specification

HUMAN RESOURCE PLANNING:

HRP can identify as the strategy forecasting the organizations future requirements for

different types of workers, their acquisitions, utilization, improvement, employee cost

control, retention and supply to meet these needs.

RECRUITMENT:

This is the initial attraction and screening of the supply of prospective human resource

available to fill a given positions.

SELECTION:

This is systematic process of selecting the most appropriate and suitable person to a particular

job.

METHODS OF SELECTION:

Application evaluation

Interviews

Tests

Background investigation

Medical test.

HIRING:

This is the process of appointing the person selected for a particular job. In this process letters

of appointments will be prepared, employment contracts will be signed and the new

employee will be sent in for a probationary period.

INDUCTION:

This is concerned with introducing an employee to the company, job and staff in a systematic

way.

PERFORMANCE EVALUATION:

This is a regular systematic assessment of an employee’s performance in order to review

whether his/her performance matches the expected performance levels.

COMPENSATION MANAGEMENT:

The main objective of the function is to develop and maintain a good salaried and wages

system which is reasonable both internally and externally.

FACTORS AFFECTING SALARIES AND WAGES:

Cost of living

Supply and demand of labor

Government requirements

Competitor wage scales

Trade union influences

Labour productivity.

TRAINING AND DEVELOPMENT:

Training Is the process by which the employee are taught skills and given the necessary

knowledge to carry out their responsibilities to the required standard.

METHODS OF TRAINING AND DEVELOPMENT:

Apprentices

On the job training

Off the job training

Simulations

Role playing

Case studies.

EMPLOYEE MOVEMENTS:

The movements of the employees taken place in three ways:

Promotions

Transfers

Lay off

WELFARE ADMINISTRATION:

This refers to all facilities and comforts given to the employee by the employer apart from

wages, salaries and incentives.

Medical facilities

Canteen facilities

Housing facilities

Transport facilities

Recreation facilities

Loan facilities

Educational facilities

HEALTH AND SAFETY ADMINISTRATION:

This concerned with maintain required and reasonable levels of professional health and safety

in the job and its environment. The organization should ensure the employees physical and

mental health. The work place should be free of hazards.

DISCIPLINE ADMINISTRATION:

It is important to control the performance and behavior of employees according to the rules

and regulations of the organizations.

GRIVANCE HANDLING:

A grievance can be identified as a situation where the employee is in mental distress,

dissatisfies, or has a bad attitude, due to the work related unreasonable or unjust situation.

LABOUR RELATIONS:

The continuous relationship between the labour force and the management. Since the labour

forces are organized as trade unions. It is actually relationship between trade union

representative and the management. Government is also an involved as a third party in order

to regulate this relationship by ways of laws.