A Study on Diesel Generator Sets in India

STUDY OFDIESEL GENERATOR SETS

IN INDIA

6/8/2009

COLLEGE -

MADE BY:

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PRESENT POWER INDUSTRY SECNARIO

Power industry restructuring, around the world, has a strong impact on Asian power

industry as well. Indian power industry restructuring with a limited level of competition,

since 1991, has already been introduced at generation level by allowing participation of

independent power producers (IPPs). The new Electricity Act 2003 provides the provision of

competition in several sectors. It is felt that the prevailing conditions in the country is good

only for wholesale competition and not for the retail competition at this moment. A suitable

model is suggested based on the current and future market participants.

With the world population nearly doubling in the past three decades, the present surge in

electricity demand, and the projected increase of the global population, the importance of

available energy cannot be underestimated.

In India, the burning of coal accounts for approximately one half of all electricity generation,

nuclear energy approximately one fourth of all electricity generation, and hydro, and gas

roughly ten percent of the total electricity generation. Globally, India is presently positioned

as the eleventh largest manufacturer of energy, representing roughly 2.4% of the overall

energy output per annum.

Usually energy, especially electricity, has a major contribution in speeding up the economic

development of the country. The existing production of per capita electricity in India is

around 600 kWh per annum. Ever since 1990s, India’s gross domestic product (GDP) has

been increasing very rapidly and it is estimated that it will maintain the pace in the next

couple of decades. The rise in GDP should be followed by an increase in the expenditure of

key energy other than electricity.

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The Report on the Indian Power Sector draws attention the following matters:

• The aggressive market scenario of the Indian Power Industry.

• The significance of the role of the private players and foreign investments in the Power

sector.

• Impact of the political condition, collaborations with private participants, new strategies

and reforms in regulating the Oil & Gas sector in India.

• Significance of renewable sources of energy for Power Generation.

• The different prospects and difficulties faced by the Power Industry.

Growing concern about pollution and global warming has led many individuals and nations

to consider the nuclear industry as an excellent alternative for future power generation.

Technological advancements and increased public awareness concerning nuclear power are

critical to the success of the nuclear industry. Investments made by the nuclear industry in

both technology and education will likely be seen in the near future. The future power

reforms will be in the field of nuclear energy.

For the country's infrastructure to develop, Power plays a vital role. Without power, it is next

to impossible to develop the country's economy. And not only industries, power have also

become a part and parcel of human life. Our day starts from the use of power and ends with

its use. If there were no power how will you watch television, press your clothes, draw water

from bore, fight the scorching sun in summer?

With the growing demand of power, there is huge potential of investment in the power sector

of India. Power sector is in the concurrent list of the Indian Constitution. So it is under the

purview of both the central government and the state government. The power sector of India

is mainly dominated by the public sector undertakings, though slowly the private sectors are

also coming up. The state and the central government generate nearly 90% of power.

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The private sector is accountable for only 10% generation. The funds of the power sector are

fulfilled through budgets and other external borrowings. There has been a significant growth

in the power sector of India in the last few years. During 2006-07, the growth rate was only

3.1 %. But in the year 2007-08 (up to September 07) the growth rate was 7.6%.

If the power generation capacity that is to be added in the 11th Plan (2007-2012) — 78,577 Mw

— was a difficult number to digest, here is another which is even bigger.

Capacity addition could actually be close to 1,10,000 Mw or about 85 per cent of the current

installed capacity of 1,32,330 Mw, if “best efforts” by the Centre and the states yield results.

“Setting a target of 78,577 Mw is a low-risk exercise, since we know that there are more projects

under construction,” explained a senior power ministry official.

That, however, does not mean that these projects are without risks. They could be hit by financial

hurdles, the 11th Plan working group has estimated an investment requirement of about $250

billion for this sector over the next five years; by equipment constraints and by a very real

manpower constraint.

There is a severe shortage of construction equipment like cranes, dumpers, loaders and

excavators (for hydro projects). According to the Construction Industry Development Council

(CIDC), additional equipment worth Rs 6,129 crore would need to be secured for commissioning

of 14,000 Mw per year.

The CIDC’s inputs will be used in the background paper prepared for a power conference next

month. The aim of the conference will be to look at key inputs required for the power sector in

the 11th Plan and beyond.

The paper also highlights the “immediate attention” that the manpower issue requires. The

manpower gap for the hydro and thermal sector — which account for a major chunk of capacity

addition in the 11th Plan and beyond — is a whopping 60,000.

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This includes supervisory staff of about 12,000 while the rest are skilled and unskilled workers.

These include welders (600), drivers (3,060), masons (2,280), crane operators (1,140) and

carpenters (1,116).

While the manufacturing capacity for the main equipment for power plants — boiler-turbines

and generators — is being increased by Bharat Heavy Electricals Ltd (BHEL), there is also a

plan to invite entrepreneurs to invest in the balance-of-plant equipment like coal handling plants,

high-pressure piping, water treatment plants, cooling water systems, fire protection gear and ash

handling plants.

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MAJOR PLAYERS IN THIS SECTOR

Key players currently operating in the Indian power sector are National Thermal Power

Corporation Limited, Nuclear Power Corporation of India Limited, North Eastern Electric

Power Corporation Limited, Power Grid Corporation of India, Tata Power, etc.

SIZE

The total installed capacity in India is calculated to be 145,554.97 mega watt, out of which

75,837.93 mega watt (52.5%) is from State, 48,470.99 mega watt (34%) from Centre, and

21,246.05 mega watt (13.5%) is from Private sector initiative.

Generation capacity of 141 GW; 663 billion units produced (1 unit = 1kwh)-January

2008. CAGR of 5% over the last 5 years

India has the fifth largest electricity generation capacity in the world. Low per capita

consumption at 631 units; less than half of China

Transmission & Distribution network of 6.6 million circuit km - the third largest in the

world

Coal fired plants constitute 54% of the installed generation capacity, followed by 25%

from hydel power, 10% gas based, 3% from nuclear energy and 8% from renewable

sources

STRUCTURE

Majority of Generation, Transmission and Distribution capacities are with either public

sector companies or with State Electricity Boards (SEBs)

Private sector participation is increasing especially in Generation and Distribution

Distribution licences for several cities are already with the private sector

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Three large ultra-mega power projects of 4000MW each have been recently awarded to

the private sector on the basis of global tenders.

MAIN PLAYERS

Major players in the Power sector can be broadly divided into public, private and international

private sectors.

•G - Generation •T - Transmission •D - Distribution

Source: Ministry of Power, Capitaline

POLICY

100% FDI permitted in Generation, Transmission & Distribution - the Government is

keen to draw private investment into the sector

Policy framework: Electricity Act 2003 and National Electricity Policy 2005

Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation;

waiver of capital goods' import duties on mega power projects (above 1,000 MW

generation capacity)

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Independent Regulators: Central Electricity Regulatory Commission for central PSUs

and inter-state issues. Each state has its own Electricity Regulatory Commission

BLUEPRINT OF MINISTRY

The Ministry of Power has set a goal - Mission 2012: Power for All.

A comprehensive Blueprint for Power Sector development has been prepared encompassing an

integrated strategy for the sector development with following objectives:-

Sufficient power to achieve GDP growth rate of 8%

Reliable of power

Quality power

Optimum power cost

Commercial viability of power industry

Power for all

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STRATEGIES RELATED TO DG SETS

Power Generation Strategy with focus on low cost generation, optimization of capacity

utilization, controlling the input cost, optimisation of fuel mix, Technology upgradation and

utilization of Non Conventional energy sources

Transmission Strategy with focus on development of National Grid including Interstate

connections, Technology upgradation & optimization of transmission cost.

Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss

reduction, theft control, consumer service orientation, quality power supply commercialization,

Decentralized distributed generation and supply for rural areas

Regulation Strategy aimed at protecting Consumer interests and making the sector

commercially viable

Financing Strategy to generate resources for required growth of the power sectorConservation

Strategy to optimise the utilization of .electricity with focus on Demand Side management, Load

management and Technology upgradation to provide energy efficient equipment / gadgets.

Communication Strategy for political consensus with media support to enhance the genera;

public awareness.

1. loss face by heavy industry due to downtime

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2. Market size of dg set-

3. Dg set -manufacturer, major player –

A. Mahindra & Mahindra Ltd.,

The tractor and utility vehicle major in India, entered the field of Power Generation in F-02.

Today, the engines under the brand name Mahindra Powerol are powering Diesel Generating

sets from rating 5kVA to 320 kVA.

Since F-02, Mahindra Powerol has sold over 100,000 DG Sets & Engines.

Mahindra Powerol has made rapid strides in the Indian genset industry in a very short span of

time. Mahindra Powerol DG sets are the first choice of Telecom majors like Airtel, Tata Tele,

Vodafone, Nokia, BSNL and MTNL who use the same to support their communication networks

across India. Recently, Mahindra Powerol won the prestigious Frost & Sullivan “Voice of

Customer” award for the most preferred Genset Brand in the telecom segment in India. The

award takes various parameters into account, including industry penetration, up-time, trouble

free performance, overall satisfaction, likelihood of buying for future requirements and likely

referrals to other customers.

Besides Telecom, Mahindra Powerol DG sets are attracting customers from a diverse cross-

section of industries. These gensets are very popular in segments like Banks, Building &

Construction, Public Sector Units, Hospitals, Hotels, Manufacturing units amongst other.

Mahindra Powerol DG sets are also available in exclusive showrooms all over India. At present

we have more than 50 Retail showrooms selling DG Sets across different cities in India.

Features:

Powerol engines have a unique feature:

Electronic/A1 Governing

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Compact size

Low vibration

Fuel efficient

Service:

Mahindra Powerol is taking care of the entire value chain of customers. This not only covers

areas like personalized transportation of the DG sets, Installation & Commissioning etc., but

also encompasses the Annual and Comprehensive Maintenance Contracts at the other end of the

spectrum.

Tele-Infra Management:

Recently Mahindra Powerol has transformed into a truly service solution providing company by

foraying into tele infra management. Tele Infra Management involves operation & maintenance

of “asset”, “power” & “facility” at telecom tower sites. So far 6000 sites are under contract.

Powerol business is first amongst Powergen sector to foray into this business.

Bio-Diesel Gensets:

Mahindra Powerol has recently launched B100 bio diesel Generator Sets for the Indian Market.

The usage of bio diesel fuel (as per IS 15607 2005) would be applicable for all the current range

of Mahindra engines between 7.5kVA and 62.5kVA. Mahindra Powerol plans to extend this to

other range of engines in the near future.

Engines:

Engines are also suitable for various industrial applications like cranes, compressors, forklifts,

rice mills and concrete mixers. Recently Powerol has launched Rice Mill & Marine engines.

Mahindra Powerol engines and diesel generator sets are certified for the stringent noise and

exhaust emission norms made mandatory by the CPCB (Central Pollution Control Board, India).

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Ashok Leyland Silent D.G Set

Salient Features

Acoustic Enclosure fabricated out of CRC sheet of 16 SWG.

Acoustic enclosure is polyster passed powder coated synthetic enamel / Duco/ p/u. paint

Sound proofing is done by high quality of rock/mineral wool.

Sleek design with noise level 68-75dbA at 3 mts distance.

Sonfirming to CPCB norms.

Protection and tripping safety device against temp. rise available.

We are recognized for our wide range of products with unmatched quality. Our expertise team of

members provides full support to the customers on all the matters pertaining to the selection of

products as for specific applications. Combined with zealous efforts, motivation and technical

skills, we have a strong client base across the world.

Envirotech Gensets Pvt. Ltd

is a foremost diesel generator sets manufacturer, based in India. The one-stop-shop for wide

assortment of acoustic anechoic chamber, sound test chamber, DG sets etc., is named as

Envirotech Gensets Pvt. Ltd. Our wide ranges of industrial products are considered as the

perfect example of modern engineering because they all work faultless with consumption of least

amount of fuel. And they all produce zero level of noise pollution.

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Envirotech Gensets Pvt. Ltd. – an ISO 9001:2008 certified company was incorporated in the

year 1997. We have an experience of more than a decade in the manufacturing and exporting of

all sorts of industrial products.< Manoj Mr.>, the CEO of Envirotech Gensets Pvt. Ltd., has

abundant experience in the manufacturing as well as exporting of different types of DG sets.

Presently, we are dealing with the market of some of the international countries including

African countries, Gulf countries, Middle East, Singapore, Asian countries etc.

DOMESTIC CUSTOMERS ARE:

M/s Maruti Suzuki India Ltd.

M/s Subros Auto Air-Conditioning Ltd.

M/s Hindustan Unilever Limited

M/s Honda Siel Power Products Ltd.

M/s Osram Ltd, Siemens Group

M/s Asian Paints Ltd.

M/s Havell's India Ltd.

M/s Lupin Limited

M/s Motherson Sumi Systems Ltd.

M/s Supreme Industries Limited

M/s Fiamm Minda Automotive Ltd.

M/s Deepak Fertilizer & Chemicals Ltd.

M/s Asia Motor Works Ltd.

M/s Denso India Ltd.

M/s Iceberg Foods Ltd(King Fisher)

M/s United Telecoms Ltd.

M/s Dharmpal Premchand Ltd.

M/s Atlas Steel Tubes Ltd.

M/s Panacea Biotec Ltd.

M/s Super Cassettes Industries Ltd.

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M/s Amtek Auto Ltd.

M/s Gurunanak Auto Enterprises Ltd.

M/s Bharat Rasayan Limited

M/s Indian Metals & Ferro Alloys L

C. CATERPILLAR INDIA

Offering a wide range of diesel generators ranging from 200 KVA to 2000 KVA for

continuous power supply....

The Company

Diesel generators have become an indispensable part of every commercial activity. Their very

existence assures a smooth business activity in the event of electricity failure Caterpillar India

has been regarded as a well known manufacturer and supplier of diesel generators ranging

from 200 KVA to 2000 KVA (kilo-volt-amperes) range.

Our products are built with several state-of the-art features such as less fuel consumption, less

maintenance due to adherence with prevailing emission norms, consistent performance even in

adverse conditions and easy installation and operation.

The company was established in the year 1931 with a vision to imbibe high standards of

business ethics and organizational values, and to abide commitment to safety, health and

environment to enrich community lifestyle. The company strictly obeys all the guidelines with

respect to the environmental conservation laid by the government authorities.

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Product Range

Caterpillar India specializes in manufacturing and supplying diesel generators in the following

ranges:

200 KVA

225 KVA

250 KVA

320 KVA

365 KVA

500 KVA

600KVA

725 KVA

1010 KVA

1500 KVA

2000 KVA.

Application of our Products

General Engineering

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Construction & Infrastructure

Automobile & Auto Auxiliaries

Service Industries

Health care Industry

Pharma Industry.

Unmatched Quality

As a quality conscious company, Caterpillar India provides a high performance oriented range

of products. We undertake extremely stringent quality checks at every level of the

manufacturing processes. The quality testing laboratory of the company is highly sophisticated

and is fully loaded with a range of cutting-edge testing equipments.

Every finished product is thoroughly inspected for its technical specifications before the final

dispatch, thus invalidating every possibility of faulty delivery into the market. A trained team of

experts looks after this unit and confirms compliance of the finished products with

internationally recognized quality standards.

Robust Infrastructure

Our well developed infrastructure is fully supported by state of the art manufacturing unit

where we have installed the latest machinery and equipments. The company has an advanced

R & D wing to innovate the latest range of products as per the emerging requirements of the

clients.

We are proud to have dedicated and highly professional engineers, who empower us to march

ahead on the path of success and perform with excellence. The packaging and warehouse of

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Caterpillar India is built in total tandem with the latest technology prevailing in the field of

packaging and storage.

D. HI-POWER GENERATORS (INDIA) PVT. LTD.

Fueling the future with ultra modern technology...

About Us

Incorporated in the year 1995, we, at Hi-Power Generators (India) Pvt. Ltd., introduces

ourselves as a reputed manufacturer engaged in the fabrication of unmatched Diesel

Generators, Silent Generators and all types of Electrical Control Panels. We have been in our

field for more than a decade and enjoying great reputation as one of the most reliable brand in

the industry. Our company is professionally managed by a group of experienced technocrats

having versatile knowledge of the discipline. All our products are designed after thoroughly

accessing the various requirements of the clients and are capable of rendering years of hassle

free services.

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Our Product Range

We manufacture and export a unique and superior quality line of Generators. Additionally, we

also deal in all types of Electrical Control Panels. We take care of our clients and also provide

them after-sale service on a very nominal fee. Our product range includes-

Diesel Generator: Our generators are the most reliable solutions to Power Cut

problems. They are ideal for nursing homes, shops and restaurants, farm houses,

commercial complexes, theaters, Banks, Construction Sites, Service Stations and

Industries.

Engine: These are totally enclosed compression ignition, cold start, single/double

cylinder, four stroke and water/air cooled engines having clockwise rotation facing the

fly-wheel. All the spares used in the engines are made up of high quality metals and

alloys, ensuring smoother engine performance for a long period, without any trouble due

to high compression ratio.

Inductive Generators: These generators are specially designed for Torque Loads (like

Compressors, Motors and Air Conditioners, etc.). Besides, they have better performance

elsewhere also.

Silent Generators: Shanzo Acoustic Enclosures are most trusted and reliable alternative

to sound problems. They adopt state-of-the-art technology to achieve International

quality and ensure super Quiet Operation.

Electrical Control Panels: We are the manufacturer of all types of Electrical Panels. We

boast Chartered Engineers, Electrical Consultants and 'A' Class Government

Contractors. We manufacture:

o Metering Board

o Power Control Centers

o Motor Control Centers for Processing Systems

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o APF Correction Panels

o Relay Control

o Auto Transformers/Motor Starters and so on.

DG Set (Sale, Purchase, Hire).

Our Quality

Since the very beginning of our company, we have renowned for our strong emphasis on quality.

It has earned us success and reputation and, above all, your trust. All our generators and control

panels are manufactured as per international industrial norms which ensure that they come with

precision, reliability and sophistication.

Our Infrastructure

We are indebted a lot to our well established infrastructure for the success and reputation we

have earned. Our manufacturing unit is equipped with in-house production and quality checking

facilities which enable us to marginalize the manufacturing cost and keep the cost of our

products low. In addition, we are empowered by a highly skilled workforce which help us to keep

ourselves steps ahead of others.

E. Crompton Greaves brings to project implementation its extensive range of quality products

and exemplary project management skills. In the Power Sector it has executed several

prestigious projects within time lines and budgets.

Power: Leveraging its rich and varied experience with the public sector power installations, Crompton

Greaves has recently begun catering to the Private Sector Promoted Power Projects.

The Division has been chosen by M/S Roll Royce as a Joint Engineering Project Contractor for the 220 kV

Switchyard for the Power Project at Kakinada.

The project involves Design, Detailed Engineering, Supply, Erection, Testing & Commissioning of 220 kV

substation equipment for 18 bays with Double Main & Transfer Bus Scheme along with pile foundations

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for all towers and equipment structures.

Among other prestigious orders executed are the 220 kV Switchyard project of Mitsubishi Electric

Corporation for Aurariya Gas Based Power Project, under National Thermal Power Corporation (for a

value of Rs. 83 Million) This project was successfully executed and synchronized in record time.

CUSTOMER : NATIONAL THERMAL POWER CORPORATION

PROJECT : 400 kV AND 220 kV SWITCHYARD.

CONSULTANT M/S. NPTC, NEW DELHI.

NATURE OF

CONTRACT:

Design, Supply, Installation, Testing and Commissioning of 400 kV

and 220 kV Switchyard at Hissar, Haryana.

PURPOSE : Inter Connecting Grid Station.

SCOPE OF WORK &

SALIENT FEATURES :The Contract involves :-

1) Civil, Structural and Electrical Design.

2) Supply and Erection of 400 kV and 220 kV Switchyard Steel

Structures.

3) Supply and Erection of 400 kV and 220 kV Switchyard Busbar

Materials.

4) Installation of 400kV and 220 kV Switchyard Equipment.

5) Testing and Commissioning of 400 kV and 220 kV Switchyard

Equipment including Auto Transformers and Reactors.

The 400 kV and 220 kV Switchyard is Designed with one & Half

breaker Scheme and 220 kV Switchyard is designed with Double

and Transfer Bus Scheme

The total No. of Bays

(1) 400 kV S/S = 8

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(2) 220 kV S/S = 8

APPROX. VALUE : Rs. 60 Million

YEAR OF EXECUTION : Commencing from 1992.

CUSTOMER : KARNATAKA POWER CORPORATION LIMITED.

PROJECT : 400 kV SWITCHYARD AT RAICHUR.

CONSULTANT M/S. TATA CONSULTING ENGINEERS.

NATURE OF

CONTRACT:

Supply, Installation, Testing and Commissioning of 400kV

Switchyard.

PURPOSE : Power evacuation and connection to National Grid at Raichur.

SCOPE OF WORK &


1) Supply of Busbar Materials, Cables and Distribution Boards.

2) Installation, Testing and Commissioning of 1 no. 315 MVA auto

transformer and 4 nos. single phase 16.7 MVAR Reactors.

Total no. of bays = 3

400 kV Switchyard is Designed with one & Half Breaker Scheme.


YEAR OF EXECUTION : 1992

YEAR OF

COMMISSIONING : 1995

CUSTOMER : NATIONAL THERMAL POWER CORPORATION

PROJECT : RAMAGUNDAM THERMAL POWER PLANT

NATURE OF

CONTRACT:

Design, Supply, Installation, Erection, Testing and Commissioning

of 250 MVA 17/220 kV Generating Transformers.

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PURPOSE :Stepping up of Generated Power thro 220 kV Switchyard at

Ramagundam.

SCOPE OF WORK &


1) Supply & Erection of 3 Nos 250 MVA, 17/220 kV Generator

Transformer.

2) Supply & Erection of 2 nos. 30 MVA, Power transformer.


YEAR OF EXECUTION : 1984 - 86

YEAR OF


NUCLEAR POWER CORPORATION OF INDIA LIMITED.

PROJECT : KAIGA ATOMIC POWER PROJECT UNIT 1 & 2

CONSULTANT M/s. DEVELOPMENT CONSULTANTS LTD.

NATURE OF

CONTRACT:

Supply, Erection, Testing & Commissioning of 220 kV Switchyard

at Kaiga.

PURPOSE : Stepping up the Generated Power thro 220 kV Switchyard.

SCOPE OF WORK &


1) Structural Design.

2) Supply & Erection of 220 kV Switchyard Steel Structures.

3) Supply & Erection of 220 kV Switchyard Busbar Materials.

4) Supply of Cables and Cable Trays.

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5) Installation, Testing and Commissioning of 220 kV Switchyard

Equipment.

Total no. of bays = 11



YEAR OF


CUSTOMER : SPECTRUM POWER GENERATION LIMITED

PROJECT : 208.3MW GODAVARI GAS POWER PROJECT AT KAKINADA

ANDHRA PRADESH

CONSULTANT: M/s NATIONAL THERMAL POWER CORPORATION LTD.

EPC CONTRACTOR: M/s ROLLS - ROYCE INDUSTRIAL POWER (INDIA) LTD.

NATURE OF

CONTRACT:

1) Turnkey Execution of 220 KV Switchyard.

2) Erection, Testing and commissioning of Plant including

Electrics.

3) Plant Lighting for 208.3MW Power Plant on Turnkey Basis.

SCOPE OF WORK &

SALIENT FEATURES :

The contract involves Design, Supply, Erection, Testing &

Commissioning of 220 kV Switchyard Equipment

1) Ten Nos 220 kV Bays (4 Line, 4 GT's, 1 B/C & 1 TBC Bays)

WITH Associated Equipments such as Circuit Breaker, Instrument

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Transformer, Surge Arrestors, Isolators etc.

2) Control, Relay & Protection Panel

3) Auxiliary Equipment such as LT Switchgear, Battery & Charger,

Earthing, Lighting, Fire Fighting etc.

4) Associated Steel Structural Works

5) Associated civil works such as Equipment & Tower Foundations,

Cable Trenches, Roads, Drains, Switch yard Fencing Etc.

Erection, Testing, & Commissioning of Plant Electrics for the

Power Plant

1) One No. of 90 MVA & Three Nos. of 63 MVA, 11/220 kV

Generating Transformer

2) Two Nos. of Station Transformers & Seventeen Nos. of

Distribution Transformers

3) Associated 11, 3.3 kV & LT Bus Ducts and HT & LT Switchgears

Turnkey execution of Station Lighting Package for Power Plant



YEAR OF

COMMISSIONING : Nov 1998

CUSTOMER : POWER GRID CORPORATION OF INDIA LIMITED

PROJECT : 220/33 KV SUBSTATION (EXTENSION BAY) PROJECT

NATURE OF

CONTRACT:Turnkey execution of 220/110 kV Substation at Xeldem, Goa.

SCOPE OF WORK &

SALIENT FEATURES :


Commissioning of

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1) One No. 220/33 kV, 50 MVA, Power Transformer

2) One No. 220 kV Bay

3) Five No. 33 kV Bays.

4) Control, Protection & Relay Panel.

5) Auxiliary equipment such as Fire Fighting Equipment, LT

Switchgear, Battery & Charger, Earthing & Lighting.

6) Associated civil works such as Equipment & Tower Foundations,

Cable Trenches, Roads & Drains, Switchyard fencing etc.

7) Associated Steel Structural works.



YEAR OF

COMMISSIONING : Sep 2000

CUSTOMER : KARNATAKA ELECTRICITY BOARD

PROJECT : REC SYSTEM IMPROVEMENT PROJECT

NATURE OF

CONTRACT:

Turnkey Execution of 110/33 kV Substation at Shorapur & 33/11 kV

Substation at Kembavi in Karnataka

SCOPE OF WORK &

SALIENT FEATURES :


Commissioning of

1) Two Nos. 10 MVA 110/33 kV Power Transformer

2) Four Nos of 132 kV Bays & 8 Nos of 33 kV Bays.

3) One No. 33/11 kV, 5 MVA Power Transformer

4) 3 Nos. 33 kV Bays & 6 Nos. 11 kV Bays.

5) Control, Protection & Relay Panel.

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6) PLCC Equipment.

7) Auxiliary equipment such as Fire Fighting Equipment, LT

Switchgear, Battery & Charger, Earthing & Lighting.

8) Associated civil works such as Control Room Building,

Equipment & Tower Foundations, Cable Trenches, Roads &

Drains, Switchyard fencing etc.

9) Associated Steel Structural works.

10) 13.2 KM's of 110 KV SC Transmission Line

11) 33 kV, 11 kV Overhead Lines & Re-conductoring of 11 kV

Lines

APPROX. VALUE : Rs. 61.4 Million


YEAR OF


EXAMPLE OF FINANCERS

For example:

M P Financial Corporation has been providing financial assistance to industrial units in the

state of Madhya Pradesh for the last five decades. It has been extending wide ranging fund and

non fund based services. A number of new schemes for providing financial assistance and

services to industries, professionals and other business associates have been sucessfully

introduced by the corporation.

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Our fund based schemes are available for setting up industrial/business ventures within the state

of Madhya Pradesh.

Whereas, our non fund based schemes are available throughout India.

Interest Rate Structure

The prevailing interest rate structure is as follows (with effect from 2nd March 2009):

Term Loan Schemes Interest

Rate Rebate

Effective

rate on

timely

repayment

Upto Rs. 0.50 lacs 10.00% - 10.00%

Above Rs. 0.50 lacs

upto Rs. 2.00 lacs 12.00% 0.50% 11.50%

Above Rs. 2.00 lacs

upto Rs. 25.00 lacs 14.50% 0.50% 14.00%

Above Rs. 25.00 lacs

upto Rs. 200 lacs

* Industrial Units

15.00% 1.00% 14.00%

Above Rs. 200.00 lacs upto Rs. 500.00 lacs

Industrial Units * 14.50% 1.00% 13.50%

Other Schemes @

a.Infrastructure Development Projects 16.75% 1.00% 15.75%

b.Working Capital Medium Term Loan 14.50% 1.00% 13.50%

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c.Short Term Loan 14.50% 1.00% 13.50%

d.Scheme for Medical Professionals 13.50% 1.00% 12.50%

e.Scheme for Misc. Fixed Assets 14.50% 1.00% 13.50%

* Including Hotels, Hospitals and Nursing Homes.

@ Interest rate shall be applicable irrespective of the loan amount.

Note:Infrastructure Development projects include Development of Residential Colonies,

Commercial Complexes,Multiplexes, Shopping Malls etc.

Penal Interest

A penalty @2% per annum shall be levied for the amount of default and period thereof. The

interest shall be payable quarterly.

TERM LOAN

Term loan is provided for the purpose of creation of fixed assets(such as land, factory building,

plant and machinery, electricals etc.), for setting up of new unit and for mordernisation,

diversification, expansion, and/or replacement of equipments in existing units.

Finance is provided to new industrial units. It is also provided to Hotels, Service Industries,

Transportation, R & D activities.

The maximum limit of assistance to non-corporate sector is Rs. 200.00 lacs and for corporate

sector it is Rs. 500.00 lacs.

29

http://www.mpfc.org/mpfincorp/test12.htm#top%00

Period of assistance depends upon merits of the case ranging between 5-8 years.

EQUIPMENT FINANCE

Assistance is available for acquiring identifiable and new items of plant & machinery,

equipments etc.

It is available to industrial concerns in existance for atleast 4 years, earning profits/declaring

dividend on its share for preceding two years and are not in default to institutions/banks in

payment of their dues dues.

Maximum amount available is 77.5% of the cost of the machine - restricted to Rs. 90.00 lacs per

proposal.

The overall debt equity ratio (including the assistance under the scheme) should not be more

than 2:1.

ASSET CREDIT

Assistance under this scheme is available for purchase of equipments for the purpose of

expansion, mordernisation, diversification and/or for the replacement of the equipments.

Medical equipments, energy saving systems, vehicles and other equipments for manufacturing

and service industry are also eligible under the scheme.

This scheme is available to existing, concerns having atleast two years profitable operations.

Upto 100% of the cost of the equipment can be financed under the scheme with a minimum of Rs

25.00 lacs and maximum of Rs. 500.00 lacs.

The debt equity ratio (including the assistance under the scheme) should be 1:1.

The assistance under the scheme is available for 3 to 5 years & is repayble in monthly/quarterly

instalments.

SHORT TERM LOAN

30




This scheme has been designed to meet the short term requirement of funds for working capital

purposes due to peak season needs or for fulfillment of specific order/job enhancement of

working capital limits pending upto Bank etc.

It is provided to concerns which are in the profit for the last 4 years, having working capital

limits sanctioned by any other commercial bank, having regular account with MPFC /Other

financial institution.

The minimum assistance under the scheme is Rs. 2.00 lacs and maximum Rs. 100.00 lacs.

The debt equity ratio should not be more than 1:1 and current ratio should not be less than

1.5:1.

Repayment should be done within 12 months.

Interest rate for the scheme will be 13.50%. A penalty @2% p.a. is levied in case default for the

period and amount of default.

WORKING CAPITAL

Term Loan is provided under this scheme to part finance long term/medium term working capital

requirements of the industrial units.

It is provided to industries having last 3 years profitable operations and proven track record

with institution/bank. MPFC borrowers whose fixed assets are mortgaged with MPFC and those

who are not MPFC borrowers but intend to offer all their existing fixed assets by way of

mortgage as primary security can also avail assistance under the scheme.

Minimum loan of Rs. 2.50 lacs and maximum loan of Rs. 500.00 lacs may be provided under this

scheme.

Repayment should be done within 3-5 years.

31



ELECTRO-MEDICAL EQUIPMENTS

Financial assistance under this scheme is available for purchase of new electro medical and

other equipments. It is provided to private practioners having MBBS or BDS or physiotherapist or

equivalent qualification.

Repayment should be done within 6 years.

HOSPITAL FINANCE

Term Loan is available for establishment of new hospital/nursing homes (having minimum 10

beds). It is also available for expansion/modernization of existing facilities.

FINANCE FOR PROFESSIONALS

Term loan is available for setting-up professional practice/consultancy venture, for the first time

or for acquiring additional equipments in exisiting setup.

It is provided to professionals in the field of management, accountancy, medicine, architecture,

engineering etc.

The cost of project should not exceed Rs. 10.00 lacs, of which land/building should not be over

50% of the total outlay.


H P PORTFOLIO MANAGEMENT

Financial assistance is available for the purpose of providing hire purchase loans against motor

32




vehicles(HMVs and LMVs).Other equipments viz. dumpers, excavators, construction and mining

equipments etc., are also covered under the scheme.

The corpus amount is provided to existing reputed finance companies who are engaged in this

business.

Under the scheme, the assisted finance company enters into a Memorandum of Understanding

(MOU) with MPFC. Subsequently, it gets individual agreement executed between the vehicle

operator and MPFC, whenever the corpus fund is used.

The corpus fund assistance is a one time assistance and needs to be utilised within a specified

period. All risk of finance under the scheme are to be undertaken by such assisted company.

LOAN REPLENISHMENT

Assistance under this scheme is available for the purpose of purchase of further machineries and

extension of factory building for the existing line of activity.

It is provided only to MPFC's existing profit making borrowers with good track record of

repayment(at least thee due installments of loan should have been paid in time).

The limit of assistance is upto the extent of loan already repaid by them till the date of

application. Minimum loan is Rs. 2.50 lacs and maximum loan is Rs. 75.00 lacs.


D G SET FINANCE

With a view to tide over the problems faced by the entrepreneurs/industrialists due to frequent

power failures/cuts, a scheme for financing D G Sets has been introduced.

Assistance under this scheme is provided to all existing industrial units. However, assistance to

projects under implementation may be considered on merits.

Upto 90% (60% for second hand) of the cost of D G Set (invoice value) subject to maximum of

Rs.50.00 lacs loan can be considered under the Scheme. 33


http://www.mpfc.org/test12.htm#top%00


The rate of interest applicable is same as the normal lending rates.

A penalty @2% p.a. is levied in case default for the period and amount of default.

FINANCE FOR MARKETING ACTIVITIES

Assistance is available for the purpose of

meeting capital expenditure on marketing campaign

acquiring mobile sales vans

setting up/renovation of showroom, warehouse, marketing office for industrial concerns

acquiring ISI, ISO and/or other certification

developing infrastructure like setting-up of permanent exhibition centres, industrial

complex etc.

It is provided to existing SSI/MSI profit making industries with good track record with financial

institutions/Banks.

Minimum amount of assistance under the scheme is Rs. 10.00 lacs with a maximum of Rs. 50.00

lacs.

Assistance under this scheme is available for 2-5 years.

SCHEME FOR FINANCING MISCELLANEOUS FIXED ASSETS

Assistance under this scheme is available for acquisition of miscellaneous fixed assets (MFAs) as

mentioned hereunder to meet:-

the cost of purchase of vehicles in the name of the company

34




the cost of office automation equipments

the cost of construction/ acquisition of the office premises/guest house for the company

Assistance shall be provided to existing assisted concerns/companies who have:-

availed minimum Rs.200 lacs from the Corporation.

repaid atleast 25% of the total loan disbursed to the them.

earned profits for last two years and having positive networth.

good track record with the Corporation.

The minimum loan amount under this scheme would be Rs. 5.00 lacs and maximum would be Rs.

50.00 lacs. The loan shall be repayable in 3 to 8 years.

SCHEME FOR MEDICAL PROFESSIONALS

Any medical professional is eligible for financial assistance under this scheme who holds

minimum qualification of MBBS/BDS.

Financial assistance shall be considered for the following purposes to meet:-

cost to purchase premises/chamber/flat to set up clinics/consultation chambers, and/or

cost of medical equipments, infrastructure/furnishing, computers, office automation

system, ambulance, car/van, interior decoration etc.

The loan shall repayable within 2 to 6 years.

LIQUID FUND SCHEME

The short term funds will be provided to meet the liquid funds requirement for the project. All

micro, small and medium scale enterprises are eligible who :

35



are in operation for last two years.

are in profit for last two years.

are regular with MPFC/Banks

Limit

Minimum Limit - 5.00 Lacs

Maximum Limit - 240.00 Lacs

Minimum security margin of 25% on primary assets.

Maximum period of 12 months.Rate of interest is 10.75% pa (monthly rest) with a 4% penalty on

delayed payments.

Repayment

Installment - Off Period

6 monthly - 6 months

OR

3 equal monthly - 9 months

Special scheme open till 31st March, 2009.

COMPOSITE LOAN

Assistance under the scheme is available for procurement of equipments, or working capital, or

both.

It is granted to artisans, village and cottage industries, and small scale industries in the tiny

sector (located in areas other than metropolitan areas), involving utilisation of locally available

natural resources and/or human skills.

36


Loan upto a maximum of Rs. 2.00 lacs in granted under the scheme.

Repayment should be done within 10 years, with an initial moratorium of 12-18 months (both for

interest and principal).

No upfront fee is levied under the scheme.

COMMERCIAL COMPLEX

The scheme is for providing financial assistance for construction of commercial complex

including show rooms and sales outlets. Loan will be given for purchase of land and

construction of commercial complex within the State of M.P. Sale of shops, show room or any

portion of complex shall be permissible with the prior approval of the Corporation. The

proceeds shall be desposited in the loan account of the borrower as per terms of agreement. The

minimum cost of project should be Rs 10.00 lacs. The promotor is required to contribute 50% of

total cost of project. In case of companies, net worth should not exceed Rs. 10.00 Crores.

MPFC will hold the first charge by mortgaging assets i.e. land & building, shop premises,

saleable part of commercial complex. The loan should be repaid in 5 years, including a

maximum of 2 years moratorium.

CREDIT SYNDICATION

Services for credit syndication with other financial institutions/banks/finance companies in

respect of term loans/lease finance/working capital etc. are provided.

CORPORATE ADVISORY SERVICES

MPFC provides corporate advisory services including management systems, project

services, firming consortium tie ups, technical assistance etc.

37




USAGE AND SERVICES OF DG SETS

According to M&M - From its very inception, the Mahindra Powerol business

has sought to offer a total value package to its customers - rather than merely supplying

high-quality products. We efficiently take care of the entire power-chain (value-chain) of

the customer so that he can conduct his business or any other activity without

interruption.

It is Powerol's commitment to ensure that the customer's business is "powered

efficiently". Powerol's overall Value Proposition is that it: Offers a fuel efficient & cost-

effective end-to-end solution Assumes total ownership for powering customer's business

efficiently Relieves the customer of all hassles and enables him to focus on his core

business

Within a short span of time (commenced operations in 2001), the Mahindra Powerol

team has rolled out a service network that reaches almost every nook and corner of the

country. Driven by Telecom, whose service levels are one of the most demanding in the

industry, the service team has trained itself to respond to service calls with the shortest

possible response time.

Mahindra Powerol also offers an array of services to its customers which have made the

brand a 'Preferred Business Partner' in the industry. To help eliminate, whatever 38

concerns that may bother customers on the power front, Powerol has invested in a range

of support services:

After-sales-service Backup: Our young and well-trained service team of M&M executives

and a dedicated network of 160 service points effectively cover the nation-wide customer

locations. They are well-trained and always eager to attend to any service need that may

arise in the context of customer's operations.

Service Convenience:

By virtue of the wide spread network, we have been able to maintain service centers within a

radius of 75 kms in key markets in India. In most of the locations, we are providing 24x7 services

at customer sites. This has been acknowledged and appreciated by customers.

Spare Parts Backup:

Keeping in mind the extensive use of our machines, we have ensured that required parts are

stocked throughout our dedicated network and can be accessed by customers at a short notice.

Personal care in Transportation, Installation & Commissioning: We recognize that efficient and

trouble-free operation of a product depends, to a large extent, on its careful transportation,

installation and commissioning. With this in view, we provide logistical support through

Mahindra Transport Solutions Group for moving the product from our factory to the doorstep of

our customers. Most of the customers who availed of this service have expressed utmost

satisfaction. The trained and experienced service dealers of Powerol ensure that installation &

commissioning of the sets are done efficiently across the length and breadth of the country.

Powerol business has amply demonstrated the ability to reach the products to tough and

inaccessible terrains. The service team has efficiently installed & commissioned thousands of

sites in various locations, including roof-tops.

39

Retail finance for customers:

Having noticed the absence of organized retail finance facility to customers in its range,

Powerol had taken up the responsibility and succeeded in organizing Retail finance for

customers. Customers who require retail finance can avail this facility with the help of our

authorized dealers.

The spirit of customer care:

As a business philosophy, Powerol strives to take on itself the hassles that challenge customers

in conducting their day-to-day operations successfully.

Powerol has not only partnered with customers who sought our support to enter new and

difficult terrains but also has rushed on its own to help out customers in times of disasters and

natural calamities like the Tsunami that hit South India in 2004. This true spirit of customer care

in rising to the occasion has been endearing customers to Powerol.

We are constantly on the lookout for more areas where we can introduce efficient services that

will add substantial value to customers.

According to Cummins - CUMMINS INDIA

Creating growth engines

A strong parent, thrust on exports and R & D and new growth initiatives will ensure that it

continues to be the most valued engineering company

Cummins India (CIL) is one of the best MNC-affiliated engineering companies in India. Some of

its unique features include a wide product range catering to varied industries with dominant 40

position in most of the segments it operates in, a very strong R & D set-up which has led to a

reverse flow of technology from CIL to its parent and earned it the status of a worldwide

sourcing base for many latest generation engines and a sound financial position.

Cummins Engine Co.(CEC) US, which holds 51% in CIL, is the principal of the Cummins group.

It is the world’s leading producer of diesel engines above 200 hp and is in the second place for

engines above 50 hp (behind Caterpillar). CEC has revenues of $6.3 bln, having about 28,300

employees, 38 manufacturing locations and service network in 129 countries.

CIL is the largest manufacturer of diesel engines in India. It manufactures a range of diesel

engines and gensets at its factory at Pune. Its engines are used mainly for power generation,

construction equipment, industrial and marine applications. CIL is the clear leader in the 200-

2000 hp range with more than 50% marketshare. It offers the widest range of engines in India

covering 60-2000 hp and is available in more than 20 models. Till date it has manufactured

more than 1,60,000 diesel, gas and duel fuel engines. More than 25% of production is now

exported. About 50% of India’s captive power base is currently with Cummins Engines (12,500

MU), and has almost 10% of India’s installed power capacity.

CIL also services engines marketed by the Cummins-Wartsila JV, thus, effectively extending its

range up to 3.5MW. It also plans to introduce small DG sets (through a subsidiary) available in

the 75 KVA and 82.5 KVA range.

With a host of new products that it has, CIL is the only subsidiary of CEC that has such a wide

range of products at a single location.

Power generation is the predominant market segment for engines and accounts for more than

half of CIL’s engine sales. CIL is a dominant player in the engines for 125 KVA to 1,250 KVA

range of diesel generator (DG) sets with a marketshare of about 65%. CIL supplies engines for

DG sets (typically, engine costs about 65-70% of the DG set) through OEMs like Powerica,

Sudhir Engineering, and Batliboi, which package the engine along with the alternator and other

controls and offer the customer the final product.

41

Coal India, Bharat Earth Movers, ONGC and Oil India are some of CIL’s large customers while

other OEMs in the industrial segment include Ingersoll-Rand, L&T, and Atlas Copco. CIL is the

only player in the industry which manufactures, in-house, the fuel injection system.

CIL has a service base of more than 85,000 engines which provides a steady stream of income

from sale of spares and components.

It has three subsidiaries — Cummins Diesel Sales & Services (CDSS), which offers after-sales

service to its customers, Cummins Power Systems, a 50:50 JV between CIL and CDSS and

Cummins Infotech, the IT subsidiary of CIL.

CIL has a R&D centre called Tech Centre, which is a part of CEC’s global technical centres.

Compared to the other engineering MNCs in the country, CIL’s R&D activity is developmental

in nature rather than being limited to customising the parent’s products. The strong R&D

capability of CIL is reflected in the fact that it is for the first time that a development activity (for

the Quantum series) was done outside the US or the UK.

The company’s strong R & D base helps it a lot in exports. In fact, exports have already helped

CIL to report a 28% rise in sales to Rs 825.82 cr for the year ended Mar. 2000. Exports and

forex earnings contributed a substantial Rs 277.5 cr (up 115%). Thus the growth in sales has

mainly come from exports which accounted for about 33% of total sales. OPM declined to

19.04% from 20.65%. OP registered a gain of 19% to Rs 157.20 cr. Interest declined by 2% to

Rs 3.43 cr. While GP rose by 19% to Rs 153.77 cr, depreciation increased by 11% to Rs 24.60

cr. PBT and tax increased by 21% and 12% to Rs 129.17 cr and Rs 35.86 cr respectively. NP

was up 25% to Rs 93.31 cr.

In the year ended Mar. 2000, CIL produced 9,148 engines and 12 generating sets. It has

consolidated its position in the export markets by selling a wider range of engines like K-38, K-

50, 855 Big Cam, and QSK-60, in addition to the traditional V-28 model which it has been

exporting for the past 10 years.

42

For the first quarter ended Jun. 2000, Cummins India has registered a 10% rise in sales to Rs

195.75 cr. Here too, export sales lead the growth, which has increased by 21%, whereas

domestic sales has gone up by only 5%. In fact 33% of its sales is derived from exports. Exports

and earnings in forex have increased by 22%.

Other income, too, has increased by 31% to Rs 3.18 cr. Total expenditure increased in

proportion to sales by 10% to Rs 163.93 cr. Other income contributed to the rise in OPM, which

has grown marginally from 17.5% to 17.9%.

OP increased by 13% to Rs 34.99 cr and interest cost fell by 14% to Rs 0.54 cr. Depreciation

and tax increased by 3% and 12% each to Rs 6.07 cr and Rs 8.1 cr respectively. Thus, net profit

went up by 17% to Rs 20.28 cr.

The performance of CIL’s three subsidiaries, too, has been good. CDSS has recorded a turnover

of Rs 290 cr for the FY ended Mar. 2000 as against Rs 253 cr in FY 9903. It has 5 zonal offices,

4 regional offices, 14 area service offices, 7 parts depots, 2 regional service centres, more than

90 authorised dealers, 213 dealers outlets and branches, 45 dealers with service centres and

more than 2000 factory-trained service engineers. CDSS won the Rajiv Gandhi national award,

1998, for service sector (awarded in Jan. 2000). CDSS has made efforts by taking new initiatives

to provide power solutions to customers. The ‘power solutions’ cover business from load

assessment and project financing to powerhouse operations.

Power Systems India is a 50:50 joint venture between Cummins India and Cummins Diesel Sales

and Service (India). It focusses on low horsepower range of 30 KVA to 82.5 KVA generating

sets. It recently commenced its commercial production at Daman in Dec.’99 and has already

achieved revenues of Rs 2.2 cr by Mar. 2000.

Cummins Infotech operates with a vision to become a leading provider of IT solutions and

services for organisations across the world. It has worked in 4 key e-business projects for

Cummins and associate companies. Its domain expertise would be e-business, business process

outsourcing, ERP and application support and IT infrastructure services.

43

The company expects Cummins Infotech to record revenues of Rs 4.4 cr for the FY ended Mar.

2000, Rs 19.8 cr for FY ending Mar. 2001 and Rs 38.6 cr for FY ending Mar. 2003 — a CAGR of

196%. Cummins Infotech is a 100% subsidiary of Cummins India. However, now the US parent,

CEC, plans to take majority stake in this company. This proposal has, however, not gone down

well with investing community. CIL has charted a strategy for growth. It includes building a

high performance organisation and reducing cost and waste in all areas especially material cost,

inventory and receivables. It intends to become more customer-focussed with a thrust on exports

by increasing exports of components, engines, generating sets and services to other Cummins

entities around the world. It also plans to make itself an IT-enabled business, convert its image

from a mere engine manufacturer to power solution provider and extend the product range to

give the full range of diesel and gas engines from 10 HP to 6000 HP for power generation,

automotive and industrial applications.

It will also set up a bricks and click portal for industrial customers.The company feels that the

above steps will result in a dominant marketshare and superior resources.

By the end of FY ending Mar. 2003, the company expects its consolidated sales and net profit to

be at Rs 3,000 cr and Rs 209.9 cr. These figures include figures of Cummins India plus all its

subsidiaries and JVs, along with the growth it expects from new initiatives.

Going by its first quarter performance, CIL individually on its own, can be expected to report

total sales and net profit of Rs 961.63 cr and Rs 108.69 cr respectively for the year ended Mar.

2001. This would translate into an EPS of Rs 27.4.

The scrip currently changes hands at Rs 405. The company has decided to split its shares in the

ratio of 5:1. Post-split, the stock can command better valuation than what it does currently. The

current price discounts the projected EPS of Rs 27.4 just under 15 times. A strong parent, focus

on R & D, thrust on technology and new growth initiatives will definitely help CIL to outperform

the industry and its peers.

44

Cummins India: Financials

Thrust on exports and technology should drive growth

9703 9803 9903 0003 0103(P)

Sales 800.73 743.61 648.04 828.99 961.63

Other

Inc. 14.72 14.14 16.6 21.08 24.4

OPM(%) 19.2 19.1 20.5 19 19.2

OP 153.72 142.09 132.56 157.2 184.63

Interest 9.37 6.94 3.51 3.43 3.05

GP 144.35 135.15 129.05 153.77 181.58

Dep. 19.19 19.98 22.12 24.6 28.5

PBT 125.16 115.17 106.93 129.17 153.08

Tax 45.12 32.89 32.14 35.86 44.39

Net

Profit80.04 82.28 74.79 93.31 108.69

EPS

(Rs)*20.2 20.8 18.9 23.6 27.4

* On the current equity of Rs 39.60 cr

(P): Projections Figures in Rs cr

Source: Capitaline 2000

45

According to WHIS POWER

This company manufactures around 2,500 DGSETS (diesel engine generators) per annum. They

are mainly (80 per cent) into genset applications. They manufacture generator sets of 7.5 KVA

to 500 KVA capacity and diesel engines of 12 hp to 1000 hp. We have 20-25 per cent of market

share in generators. The products are sold under the 'Greaves' brand name. Another product,

DG set, with acoustic encloser (sound proof container) is sold under the brand name WHIS

POWER.

They don't have any threat from Chinese products. In fact, we are exporting to China. The

Chinese are doing well in less capacity generators i.e. less than 7.5 KVA, which we don't

manufacture. They are more concerned with the domestic market and we do educate people

regarding the benefits of using our gensets.

Future plans for this division –

In the next six months, we will come out with 625 KVA to 750 KVA capacity generators; in a

year's time we will come out with 1000 KVA generators. They import diesel engines for 625 KVA

to 750 KVA capacity generators from our German partner, MWM gmbh.

They want to increase our maket share at least by 10 per cent in the next year and we are also

finding new applications for our diesel engines.

Strengths as compared to your competitors –

Their products are equipped with special features such as autostart, computer controlled PLC

(Program Logic Control) and remote control based. They do offer syncronisation of two or

three gensets. They regularly conduct contractors, consultants and customers meet and a lot of

promotional activities.

They offer complete gensets from Indian manufacturers so we offer single window warranty

services as compared to our counterparts, and we also offer our generators through assemblers.

46

Our spare parts products cost is low and our products have better field consumption. They also

have an all India network of service and spare parts dealers.

They have regional offices in four metropolitan cities and they are taking care of their

respective regions and under these regions we have branch offices that offer prompt after-sales

service. They are trying to make our presence felt in all the potential areas by increasing

locations (company employed sales and service engineers who supports our dealers).

Government has come out with new regulations - Their products are equipped with acoustic encloser and ours is the first company to get all our

products (generators) approved from ARAI (Automotive Research Association of India) in June

2004. Previously, the law was supposed to come into effect on July 1 but since other players

were not ready it will be implemented from November 1, 2004, onwards. Under the law it will be

mandatory for all the players to have environment-friendly DG sets. The law says generator sets

up to 176 KVA should be equipped with acoustic encloser and exhaust emission or they should

be free from noise pollution as well as emissions from November 1, 2004; generators above 176

KVA capacity should be equipped with the above norms from July 1, 2005.

Prospects of this service -

Previously, only industries found the need for DG sets. Now many commercial establishments

such as call centers and hotels are looking for stand-by power. Moreover, there is a huge gap

47

between demand and supply of power. In India, demand of power is increasing and it will result

in increase in demand for the DG sets.

48

Documents

A Study on Diesel Generator Sets in India