`

RICHABHARDWAJ

29

Presented By:SACHIN

DHIMAN47

SAKSHIANEJA

49

SHEFALIBHAGAT

52

INTRODUCTIONConceived in 1995 with just 20 people, Suzlon isnow 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

INTRODUCTION CONTD..•The headquarters of the company is located in Pune,India.•All over the world the company is present in 21 countriesNamely : 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       

 

CONTD..• Suzlon is the third largest wind power supplier

having a market share of about 9.8% of world’s 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.

SUZLON’S 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.

SUZLON’S 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

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.

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

                 

PRODUCT LINE• S82-1.5 MW This is designed for generating the optimal poweroutput even at sites with a modest wind speed regime. Thewind turbine concept is based on robust design with pitchregulated blade operation, a 3-stage gearbox with 1650 kWrating and flexible coupling to the asynchronous inductionGenerator.• 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.

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.

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

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, 13–14% of the world's electricity came from nuclear power.

MARKET COMPETITION

22.8

16.6

15.414

10.5

7.1

4.4 4.23.4

3.410.5

MARKET SHARE IN %

VESTAS(DK)GE WIND(US)GAMESA(ES)ENERCON(GE)SUZLON(IND)SIEMENS(DK)ACCIONA(ES)GOLD WIND(PRO)NORDEX(GE)SINOVELOTHERS

GLOBAL COMPETITION SHARE : TOP TEN WIND TURBINE MANUFACTURE (2008)

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.

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.

.

PRICING STRATEGIESThe overall pricing of the wind turbine can be summarized by :

1. proper negotiation2. considering engineering 3. other related factors and reducing over all cost

incidence on the production process.

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.)

(

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.

PLACE

GLOBAL PRESENCE

AUSTRALIA

BRAZIL

INDIA

EMEA

NORTHAMERICA

CHINA

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.

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

MANUFATURING FACILITIES IN INDIACurrently 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

CLIENTS AND PROJECTSState 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

PLACE (EXPANSION STRATEGIES)•  The company plans to expand capacity at its plant in China 

as that market remains the world’s 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..

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

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 .

Promotional Weapon• Advertising• Public Relation• Direct Sale• Sale Promotion

PROMOTIONAL STRATEGIES

• The company can adopt the following strategies for its  promotion :

1. Advertise in newspapers2. Business journals3. Logo development4. Sign board5. Direct sales6. Direct mail7. Internet8. Improve its public relations

PROMOTIONAL BUDGETSuzlon 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 .

Promotion BudgetType of 

PromotionName 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

Promotional Budget

Logo De-velopment

Newspaper Sign Board Direct Mail Direct Sale0

500000

1000000

1500000

2000000

2500000

3000000

100000337500 340000

2990000

1825000

Amou

nt(R

s.)

BRANDING & MARKET COMMUNICATION STRATEGIES• Branding is crucial for products and services sold in markets. It’s

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 SOLUTIONS2. VERTICAL INTEGRATION3. GLOBAL INTEGRATION 4. QUALITY MANAGEMENT & HSE

 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.

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 & qualityb) Long-term service support to customersc) Turbine technology integrationd) Faster product rollout

GLOBAL INTEGRATION• Suzlon’s ‘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 it’s operations in all key international wind energy markets and presence in all emerging markets is further strengthening global integration.

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.

SUZLON EDGE – END TO END SOLUTIONS•Suzlon provides ‘End-to-End Solutions’ for the Indian markets in the wind power domain.

•Suzlon’s ‘End-to-End Solutions’ include the following stages:

1. Land and Site Identification2. Supply of WTG & Accessories3. Site Infrastructure Development4. Installation and Commissioning5. Power Evacuation6. Life Cycle Operations & Maintenance7. Assistance for Approvals & Loan Processing8. Wind Resource Mapping