suzlon CRS

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    Presented byRoshan K

    RajuM620

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    INTRODUCTION

    Conceived in 1995 with just 20people, Suzlon is

    now a leading wind powercompany with:

    Over 16,000 people in 25

    countries Operations across the Americas,

    Asia, Australia and Europe

    Fully integrated supply chain

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    INTRODUCTIONCONTD..

    Head quarters: Pune , India. All over the world the company is

    present in 32 countries

    Namely : India, China, Sri Lanka,Japan, South Korea, Canada, USA,

    Brazil, Chile, Nicaragua, Belgium,

    Bulgaria, Denmark, Germany, Italy,Romania, The Netherlands, Turkey,Spain, Sweden, United Kingdom,Austria, Czech Republic, France,Greece, Hungary, Poland, Portugal,

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    VISIONTo be a technology leader in the windindustry.To be among the top three wind energycompanies 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 themost profitable business.

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    PHILOSOPHY: To pursue social,economic and ecological sustainabledevelopment for our planet

    Suzlon as agroup aims to

    provide a strongrenewable

    energy platform

    therebypromising to

    power a greenertomorrow,

    today.

    From initiatinga wind powerproject, till

    completion andeven beyond,

    Suzlon ensuresthat nothingstands in the

    way of itserving its

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    An Overview

    Date Event

    1995 First wind farm project in Gujarat

    1997 Det Norse Veritas (DNV) certifies Suzlon withthe coveted ISO 9001/2

    1998 First Wind Turbine in Maharashtra, SataraDistrict

    2000 Commisioned 50 MW Wind turbine generatorat Vankhusavade, Maharashtra

    2001 Formation of subsidiaries: Suzlon Wind EnergyCorp, USA & Suzlon Energy Gmph, Germany.

    2002 First export order, its first Wind Turbine in theUSA

    2003 Representative office in Beijing, China

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    2004 Suzlon Energy Ltd signs up MSPL's 3.75 MW Wind PowerProject

    2005 Suzlon Energy secures maiden contracts in China & SouthKorea

    DEG, Germany signs agreement with Suzlon Energy Ltd tofinance US $10 million

    2006 Energy Ltd - Signed a turbine supply agreementwith Edison Mission

    2007 Suzlon Energy Ltd signed a major new order with ONGC,India's leading Oil & Gas Exploration & Production (E&P)Company, for 51 MW of wing turbine capacity

    2008 Suzlon Energy Ltd enters Kerala with its first Wind PowerProject commission of S52-600 kW turbine at AgaliSuzlon Energy Ltd is first S88-2.1 MW wind turbine is

    commissioned by Deco Light Ceramics Ltd, in Gujarat,India

    2009 Suzlon Energy Ltd has signed a repeat order for 57 MWwith Ayen Enerji of Turkey. The order will be supplied with27 units of Suzlon S88-2.1 MW turbine

    2010 Suzlon Energy Ltd has own 74.8 MW order in Germany.

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    Opportunities

    India has been characterized byenergy shortages

    Strong growth potential for electricity

    consumption in India Power for All by 2012 vision byIndian Government to increase

    installed capacity to 200,000 MW Electricity Act 2003 stipulates minimum

    percentage of power generation fromrenewable energy

    Government of India ex ects alternative

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    OVERVIEW

    They are the most verticallyintegrated wind turbine maker in theworld, with manufacturing

    capabilities for all key componentsThey are globally integrated, with

    production facilities in China, India,

    USA catering to key marketsTheir manufacturing footprint covers

    the gamut of wind power equipment

    The develo leadin ed e

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    PRODUCT "Suzlon delivers its complete product

    range in the Indian market." Existing products offered by the company

    are:

    Wind turbine generators

    Rotor blades

    Control EquipmentsGearboxes

    Nacelle Covers

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    INNOVATIONS Suzlon at present is manufacturing wind

    turbines for production of power. Howeverthe company can capture a larger shareof market by the production of various

    other equipments which use otherrenewable source of energy.SOLAR

    ENERGY

    eg: SOLARCELLS ANDVARIOUSOTHERSOLAR

    ENERGY

    HYDALENERGY eg:

    USE OFHYDROWATER

    SYSTEMSAND

    TURBINES

    PRODUCT

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    PRODUCTINNOVATIONS (contd..)

    Another recent development

    which is taking place these days isuse of NUCLEAR ENERGY. Nuclearpower is produced by controlled(i.e., non-explosive) nuclearreactions . Commercial and utility

    plants currently use nuclear fissionreactions to heat water to producesteam, which is then used togenerate electricity.In 2009, 13

    14% of the world's electricity camefrom nuclear power.

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    PRICING STRATEGIES(contd..)

    Thewind

    turbines

    arepricedhigh.

    IN COMPETITIVE MARKETS ,STRATEGIES ARE TO BE MADE

    SURVIVE.METHODS MUST BEADOPTED TO CUT COST WITHOUTEFFECTING THE QUALITY OF THEPRODUCT .

    CHANGE IN DESIGN IS ONE OF THESTRATEGIES TO CUT COST AND HENCESELLING PRICE.

    USE OF SUBSTITUTE MATERIAL ISALSO ONE OF THE STRATIGIES TOCONTROL COST.

    BY REDUCING WASTAGE. THE PRICE

    OF PRODUCT CAN BE BROUGHT DOWN.

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    CE

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    SUZLON(INDIA)India has emerged as a hubof wind turbinemanufacturing , with acapacity of over 3000 MW perannum .

    India ranks 3rd worldwide interms of total installed windpower .

    India is one of the fewcountries in the world to havea Ministry of New andRenewable Energy (MNRE)dedicated to promoting the

    use of clean, green and

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    Marketing strategy in India

    Divided the Indian market accordingto the states where we haveidentified suitable sites for windenergy projects

    Marketing for each state is under thesupervision of a senior managementexecutive who directly reports to ourChairman and Managing Director.

    The marketing team focuses on threetypes of customers

    (a) companies that have

    manufacturing units with highpower consumption(b) companies with high

    profitability and/or surplusliquidity that seek investment

    opportunities with stable

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    International Markets

    International marketing activitiesprimarily consist of cultivatingcontacts with wind power project

    developers with a view to supplyingWTGs for wind power projectsdeveloped by them

    Advertisements placed inprofessional industry journals,attendance at national and

    international energy fairs etc...

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    STRATEGIES) The company plans to expand capacity at its

    plant in China as that market remains theworlds largest and the company returns toprofit this financial year.

    The Ahmdabad - basedmanufacturer will be capable

    of making turbines with acombined electricity

    generating capacity of 1,000megawatts each year at its

    China plant by 2013

    COMPANYPLANS TO

    RAISE $1 BNfunds forexpansion

    through sale ofbonds or

    convertibledebentures..

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    romo ona

    Weapon Advertising Public Relation

    Direct Sale

    Sale Promotion

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    STRATEGIES

    The company can adopt the followingstrategies for its promotion :

    1. Advertise in newspapers

    2. Business journals3. Logo development

    4. Sign board

    5. Direct sales

    6. Direct mail

    7. Internet

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    COMPETITION

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    BRANDING & MARKETCOMMUNICATION

    STRATEGIESKey differentiators policy for branding :

    1. TURNKEY SOLUTIONS

    2. VERTICAL Integration

    3. GLOBAL INTEGRATION

    4. QUALITY MANAGEMENT & HSE

    http://var/www/apps/conversion/current/tmp/scratch25384/Suzlon%20Energy%20Ad%202.mp4http://var/www/apps/conversion/current/tmp/scratch25384/Suzlon%20Energy%20Ad%202.mp4
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    Financial IndicatorsPerformance/ 31.3.09 31.3.10 31.3.11

    Financial indicators Audited Audited Audited

    Net sales 7,251.94 3,488.68 4,357.55

    Other Income 160.78 222.89 331.67

    Profit before tax -539.96 -1,238.69 -260.49

    Profit after tax -470 -1063 -315

    Depreciation 99.16 126.27 156.89

    Cash generation -708.28 398.37 NA

    Paid up capital 299.66 311.35 355.47

    Tangible Net Worth 6,580.32 5,604.31 6,794.48

    Fixed Assets 7966.27 8520.14 8746.39

    Term Liabilities 13,909.80 13,205.53 13,471.81

    Investments 7,127.80 7,592.60 7,845.07

    Current Assets 6,199.71 4,253.93 3,428.49

    Current Liabilities 3,301.77 3,641.87 3,606.83

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    Continues

    Net Working Capital 2897.94 612.06 -178.34

    Current Ratio 1.46 0.82 1.14

    TOL/TNW 2.11 2.35 1.98

    Debt equity ratio 0.44 1.13 1.36

    Interest Coverage ratio 12.97 2.39 -0.14

    Net profit/Net sales (%) -6.47 -11.86 -4.2

    Dividend Paid (%) 1 NA NA

    Dividend/Net profit (%) 12.36 NA NA

    EPS -3.13 -9.08 -1.04

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    HUMAN RESOURSEMANAGEMENT

    The HR consist of employees over13,000 people of 32 nationalities.

    Working together with a sense ofcommon purpose.

    Focus on attracting, training andretaining the best people possible.

    Employee retention care throughstructured processes includingemployee mentoring and grievancemana ement ro rams.

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    SWOT ANALYSIS

    STRENGTHS Integrated business model Provider of end to end

    solutions Vertically integrated

    (supply chain) Market leader Innovation Strong human resource

    base

    WEAKNESS Operational Risk- cash

    conversion and growth inassets overweighing profits

    Financial performance

    Funding in acquisitions(Rising debt) High inventory levels

    OPPORTUNITIES Steady growth in demand Untapped offshore markets Policy support for

    renewable energy

    Tax exemptions

    THREATS Intense competition falling oil and gas prices dependency on global

    markets

    forex risk

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    CONCLUSION

    It requires high investment to survivein this industry and O&M is essentialin this sector.

    Suzlons main strength is its verticalintegration.

    It uses its brand image as a marketleader.

    It has more focus on covering Indian

    business giants for its business.

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