ACKNOWLEDGEMENT

It gives me great pleasure to express my deep sense of gratitude to Mr. Ramuavtar

Dixit Senior sales executive…, without whose patient guidance and constant
encouragement this study would not have come to its present form. I am sincerely
thankful to him for permitting me to work on a topic of special interest to me for study. I
owe him a debt of gratitude for constructive criticism from time to time during the course
of these investigations.

I am also highly grateful to my internal mentor Mrs. Malvika Mago for providing all

facilities for carrying out this project work.

Yogesh Sharma

Pg20090126

1
 EXECUTIVE SUMMARY

CROMPTON GREAVES LIMITED is a major player in the Transformer industry in India.

The objective of the project was to study the effectiveness of marketing activities of the
company and to know about the sales and after sale service provided by the company
to their corporate clients and expectations of corporate clients.
NEED FOR THE STUDY

This report is an outcome of the study undertaken for assessing the Effectiveness of
marketing activities with reference to the and after sale service etc.The data collected
has been subjected to analysis and interpretation on the basis of objective and
suggestions have been given at the end, which will help the company to improve their
service for taking steps for toning up the satisfaction of corporate clients.

OBJECTIVE OF THE STUDY

Primary objective:

To study the Effectiveness of marketing activities of CROMPTON GREAVES LIMITED

Secondary objective:

To find out the problems in the marketing department of the company if any.

To give the suggestions regarding those problems, to the company.

To study the various factors that influences the consumers to purchase the
products of CGL

2
 Chapter-1

Introduction to the topic

Effectiveness of marketing activities is the quality of marketers to optimize their efforts

and achieve the best short-term and long-term results. Effectiveness of marketing
activities is related to Return on Marketing Investment (ROMI) and Marketing ROI which
helps to describe the relationship between costs and the returns achieved either in form
of profits or leads..

When we want to measure the effectiveness of marketing campaign, there are three
things that are essential to know. One is cost of marketing, second is revenue or leads
generated from this campaign and lifetime value of a customer. Marketing is a process
by which organizations create and distribute products that are not only desired by
customers but they are willing to purchase those on given price.

Cost of Marketing means comparing different sources of marketing and to decide which
one will work better for your business campaign, like sometimes generating a brochure
can cost you more as compared to make an ad in newspaper. It must be you to decide
your marketing strategy on cost or its effectiveness. Next thing comes is revenue
generated from specific sales after its marketing campaign and how much sales is
increased after adopting a specific technique. Final thing to measure the marketing
effectiveness is Customer Lifetime Value; it is the amount of gross profit generated per
year by a customer multiplied by number of years they continue to purchase the same
product.

If a company creates a good understanding of how their consumers make a purchasing

decision, this understanding can help in making a good marketing campaign and they
will be able to enhance their marketing effectiveness. Lastly, there is small percentage
of some factors that are out of control of marketers that can potentially impacts the
effectiveness of marketing activities.

3
Effectiveness of marketing activities can also be enhanced by changing the current
marketing strategy of company to be more successful like changing the marketing
infrastructure, or taking another advertisement agency into consideration. Measuring
marketing effectiveness is not an easy thing but it can be made easy by hit and trial
method and learning from past experience.

It has four dimensions:

Corporate – Each company operates within different bounds. These are determined by
their size, their budget and their ability to make organizational change. Within these
bounds marketers operate along the five factors described below.

Competitive – Each company in a category operates within a similar framework as

described below. In an ideal world, marketers would have perfect information on how
they act as well as how their competitors act. In reality, in many categories have
reasonably good information through sources, such as, IRI or Nielsen. In many
industries, competitive marketing information is hard to come by.

Customers/Consumers – Understanding and taking advantage of how customers

make purchasing decisions can help marketers improve their marketing effectiveness.
Groups of consumers act in similar ways leading to the need to segment them. Based
on these segments, they make choices based on how they value the attributes of a
product and the brand, in return for price paid for the product. Consumers build brand
value through information. Information is received through many sources, such as,
advertising, word-of-mouth and in the (distribution) channel often characterized with the
purchase funnel, a McKinsey & Company concept. Lastly, consumers consume and
make purchase decisions in certain ways.

Exogenous Factors – There are many factors outside of our immediate control that
can impact the effectiveness of our marketing activities. These can include the weather,
interest rates, government regulations and many others. Understanding the impact
these factors can have on our consumers can help us to design programs that can take
advantage of these factors or mitigate the risk of these factors if they take place in the
middle of our marketing campaigns.

4
There are five factors driving the level of effectiveness of marketing activities that
marketers can achieve:

Marketing Strategy – Improving marketing effectiveness can be achieved by

employing a superior marketing strategy. By positioning the product or brand correctly,
the product/brand will be more successful in the market than competitors’
products/brands. Even with the best strategy, marketers must execute their programs
properly to achieve extraordinary results.

Marketing Creative – Even without a change in strategy, better creative can improve
results. Without a change in strategy, AFLAC was able to achieve stunning results with
its introduction of the Duck (AFLAC) campaign. With the introduction of this new
creative concept, the company growth rate soared from 12% prior to the campaign to
28% following it.

Marketing Execution – By improving how marketers go to market, they can achieve

significantly greater results without changing their strategy or their creative execution. At
the marketing mix level, marketers can improve their execution by making small
changes in any or all of the 4-Ps (Product, Price, Place and Promotion) (Marketing)
without making changes to the strategic position or the creative execution marketers
can improve their effectiveness and deliver increased revenue. At the program level
marketers can improve their effectiveness by managing and executing each of their
marketing campaigns better. It's commonly known that consistency of a Marketing
Creative strategy across various media (e.g. TV, Radio, Print and Online), not just within
each individual media message, can amplify and enhance impact of the overall
marketing campaign effort. Additional examples would be improving direct mail through
a better call-to-action or editing web site content to improve its organic search results,
marketers can improve their marketing effectiveness for each type of program. A
growing area of interest within (Marketing Strategy) and Execution are the more recent
interaction dynamics of traditional marketing (e.g. TV or Events) with online consumer
activity (e.g. Social Media). Not only direct product experience, but also any stimulus
provided by traditional marketing, can become a catalyst for a consumer brand
"groundswell" online as outlined in the book Groundswell.

5
Marketing Infrastructure (also known as Marketing Management) – Improving the
business of marketing can lead to significant gains for the company. Management of
agencies, budgeting, motivation and coordination of marketing activities can lead to
improved competitiveness and improved results. The overall accountability for brand
leadership and business results is often reflected in an organization under a title within a
(Brand management) department.

Exogenous Factors - Generally out of the control of marketers, external or exogenous

factors also influence how marketers can improve their results. Taking advantage of
seasonality, interests or the regulatory environment can help marketers improve their
marketing effectiveness.

INDUSTRIAL MARKETING AT CROMPTON GREAVES

Industrial marketers have to develop their capabilities in supplying even more complex
“total solution” that include both tangible (service). Thus, technical product marketing
has recently received increased scholarly attention.

The process of acquiring and delivering such products entails coordinating the activities
of buyers and sellers, as the details of each equipment are agreed during often-
extensive interaction between the two sides. The relationships between employees in
the buying and selling’s firms are therefore important before during and after delivery.
The term “Technical Product Marketing” embraces all this. Marketing of technical
solutions for electrical distribution substation is synonymous with project marketing that
in turn encompasses relationship and industrial marketing.

Eg:- CROMPTON GREAVES Vs AREVA , BHEL Vs ABB etc

Industrial marketing management also called Business-to-Business marketing; it is

defined by the nature of the customer- a profit seeking or a budget constrained
organization seeking help in achieving its goal through the purchase of goods and
services. Industrial marketing is unique in its concern for long term strategic

6
relationships with customers, the complexity of the buying process, and the mutual
dependence of technology is at the core of buyer seller relationship.

A typical scheme involves-

Construction

Heavy equipment

Light equipment

Components

Subassemblies

Raw materials

Processed materials

The four key dimensions in applying the marketing concept to Industrial Marketing were-

(a) Aiming for improved profit performance, with sales volumes and market share
but not as important as in consumer marketing.

(b) Identifying customer needs, which require understanding the economics of the
customer’s operations, then structure of the industry within which they operates
and how they compete.

(c) Selecting customer groups for emphasis, the classic problem of market
segmentation, which takes on special meaning in industrial marketing because of
the high degree of buyer seller interdependence after the sale

(d) Designing the product/service package, where there is seldom a standard

product itself and the product must be invented.

7
 CHAPTER-2

COMPANY PROFILE

CROMPTON GREAVES LIMITED (CGL) is India’s largest private sector enterprise. It

has diversified extensively and is engaged in designing, manufacturing technologically
advanced electrical products and services related to power generation, transmission
and distribution, besides executing turnkey projects. In 1875, a Crompton ‘dynamo’
powered the world’s very first electricity-lit house in Colchester, Essex, U.K. CG’s India
operations were established in 1937, and since then the company has retained its
leadership position in the management and application of electrical energy. Crompton
Greaves (CG) is part of the US$ 3 billion Avantha group, a conglomerate with an
impressive global footprint. With a turnover over RS. 4200 CRORES, the company is
India’s largest private sector enterprise in the business of electrical engineering.

The company is organized into three business groups viz. Power Systems, Industrial
Systems and consumer products. Nearly, two-thirds of its turnover accrues from
products lines in which it enjoys a leaderships position. Presently, the company is
offering wide range of products such as power & industrial transformers, HT circuit
breakers, LT & HT motors, DC motors, traction motors; alternators/ generators, railway
signaling equipments, lighting products. In addition to offering broad range of products,
the company undertakes turnkey projects from concept to commissioning. Apart from
this, CG exports it’s product to more than 60 countries worldwide, which includes the
emerging south-east Asian & Latin American markets. Thus , the company addresses
all the segments of the power industry from complex industrial solution to basic
household requirements. The fans and lighting businesses acquired “Super brand”

8
status in January 2004. It is a unique recognition amongst the country’s 134 selected
brands by “Super brands”, UK

CG’s business operation consist of 22 manufacturing divisions spread across in Gujarat,

Maharashtra, Goa, Madhya Pradesh and Karnataka, supported by well knitted
marketing and service network through 14 branches in various states under overall
management of 04 regional sales offices located in Delhi Kolkata Mumbai and Chennai.
The company has a large customer base, which includes State Electricity Boards,
Government bodies and large companies in private and public sectors.

At Crompton Greaves there is always a passion for quality. The company has the
unique distinction of being the first one to receive an ISO 9000 certification for finance
and administration. The commitment has the unique distinction of being the first one to
receive an ISO 9000 certification for finance and administration. The commitment to
responsible business through quality, technology and productivity has helped the
company to receive many certifications in the ISO 9000/9001:2000/14001 series. The
company’s twenty three divisions/ regions have been accredited with ISO9001:2000
certification; Seven manufacturing units have been accredited for ISOI 14001 and four
units for OHSAS 18001. The Light sources division is one of the few business units in
India in lighting industry to receive dual certificate of ISO9000 :2000 was well as
ISO14001 and OHSAS 18001, Certification for Occupation Health and Safety
management system .The company’s Fans, Motors, Automation and control
products are approved by the CSA , BASEEFA, and CE.

With several international acquisitions, Crompton greaves(CG) is fast emerging as a

first choice global supplier for high quality electrical equipment.CG has completed the
acquisition of the Belgium-based Pauwels on 13th May 2005.The Pauwels has
transformer manufacturing facilities in five countries (Belgium , Ireland , Canada, USA,
and Indonesia) and well spread distribution network across the globe, this makes a
significant impetus to the company’s international presence. CG have also successfully
acquired Hungarian based Ganz(GTV) ,engaged in the manufacture of EHV

9
Transformers, Switchgear ,Gas insulatedSwitchgear(GIS), rotating Machines and
contracting businesses and Transverticum Kft(TV) which was a subsidiary of GTV,
engaged in the supporting areas of design, erection, commissioning and commercial
activities on 17th October,2006.The acquisition of Microsol Holdings Limited (MHL) and
its associate companies ,based in Ireland with facilities in UK and USA, in May 2007 is
yet another significant stride in CG’s journey towards positioning itself as a Global T&D
solutions Provider. The acquisition of Societe nouvelle de maintenance de
Transformatures(Sonomatra) of France in June 2008 ,will enhance Crompton greaves
capabilities in the services segment of its transmission and distribution business.

Crompton Greaves limited is truly India’s industrial ambassador to the world.

10
 HISTORY

Crompton Greaves goes back to 1878, when Col. R.E.B. Crompton founded
R.E.B.Crompton & Company. The company merged with F.A Parkinson in the year
1927 to form Crompton Parkinson Ltd., (CPL). Greaves Cotton and Co (GCC) was
appointed as their concessionaire in India. In 1937, CPL established, it's wholly owned
Indian subsidiary viz. Crompton Parkinson Works Ltd., in Bombay, along with a sales
organization, Greaves Cotton & Crompton Parkinson Ltd., in collaboration with GCC. In
the year 1947, with the dawn of Indian independence, the company was taken over by
Lala Karamchand Thapar, an eminent Indian industrialist. Crompton Greaves is
headquartered in a self-owned landmark building at Worli, Mumbai.

Today, Crompton Greaves (CG) is part of the US$ 3 bn Avantha Group, a conglomerate
with an impressive global footprint. Mr. Gautam Thapar, the third generation of Lala
Karamchand Thapar, is Chairman & CEO of India's foremost diversified corporation, the
Avantha Group. Mr. Sudhir Mohan Trehan is the Managing Director of Crompton
Greaves Limited since May 2000. He was the recipient of the ‘Outstanding Chief
Executive of the Year’ Award for 2000-2001, instituted by the Indian Institution of
Industrial Engineering, for steps he took towards successfully implementing his vision of
making Crompton Greaves a world-class manufacturing company. In addition to above,
the Board of Directors includes the renowned names of Dr. O. Goswami, Mr. S. Labroo,
Dr. Valentin A H von Massow, Ms. M. Pudumjee, Mr. S.P. Talwar and Mr. S.R. Bayman.

11
 Major Acquisitions

Pauwels Acquisition

Crompton Greaves has completed the acquisition of the Belgium-based Pauwels on

13th May 2005. The group has manufacturing facilities in Belgium, Ireland, Canada,
USA and Indonesia and well spread distribution network across the globe. The
acquisition catapults the company amongst top ten transformer manufacturers in the
world. It has truly transformed into an Indian MNC making a long-cherished dream
finally come true.

Apart from strengthening it's foothold in the Indian market, Crompton Greaves
acquisition of the Pauwels Group and it's transformer manufacturing facilities in five
countries is expected to provide a significant impetus to the company's international
presence.

The additional turnover of approximately Rs.1,380 crore of Pauwels Group for it's last
financial year is expected to increase Crompton Greaves' International business to
around 50% of it's turnover, making the company a force to reckon with, in the
international market.

Ganz Acquisition

Crompton Greaves have also successfully acquired Hungarian based Ganz (GTV),
engaged in the manufacture of EHV Transformers, Switchgear, Gas Insulated
Switchgear (GIS), Rotating Machines and Contracting businesses and Transverticum
Kft (TV), engaged in the supporting areas of design, erection, commissioning and
commercial activities on 17th October,2006; TV being a subsidiary of GTV.
12
Microsol Acquisition

The acquisition of Microsol Holdings Limited (MHL) and its associate companies in May
2007 is yet another significant stride in CG's journey towards positioning itself as a
Global T&D Solutions Provider.

MHL, based in Ireland with facilities in UK and USA, is engaged in the business of
providing sub-station and distribution automation for the utility industry including MV and
HV sub-stations, new sub-stations and retro-fitting solutions for existing sub-stations.
The acquisition reinforces CG's ability to design, build and service world-class sub-
stations, with state-of-the-art automation & high-end engineering.

Sonomatra Acquisition

Crompton Greaves concluded an arrangement for the acquisition of Societe Nouvelle

de Maintenance de Transformateurs (Sonomatra) of France in June 2008. Sonomatra
provides on-site maintenance and repair of power transformers and on-load tap
changers, oil analysis, oil treatment and retro filling. The approximate enterprise value
of this acquisition is €1.30 mn. This acquisition will enhance Crompton Greaves'
capabilities in the services segment of its transmission and distribution business and is
the company's fourth international acquisition.

13
 Product & Services Offered By Crompton

The company is organized into three business groups viz. Power Systems, Industrial
Systems, Consumer Products. Nearly, two-thirds of it's turnover accrues from products
lines in which it enjoys a leadership position. Presently, the company is offering wide
range of products such as power & industrial transformers, HT circuit breakers, LT & HT
motors, DC motors, traction motors, alternators/ generators, railway signaling
equipments, lighting products, fans, pumps and public switching, transmission and
access products. In addition to offering broad range of products, the company
undertakes turnkey projects from concept to commissioning. Apart from this, CG
exports it's products to more than 60 countries worldwide, which includes the emerging
South-East Asian and Latin American markets.

Thus, the company addresses all the segments of the power industry from complex
industrial solutions to basic household requirements. The fans and lighting businesses
acquired “Super brand" status in January 2004. It is a unique recognition amongst the
country's 134 selected brands by "Super brands", UK.

HT Motors Pumps
LT Motors
Power Transformer FHP Motors

Alternators

14

Switchgear
Distribution Transformer Dry Type Transformer Bulbs, Tubes Street Lighting
Shunt Reactor
 DIVISIONS OF CGL

REGIONAL OFFICES (ALL PRODUCTS)

MANUFACTURING UNITS

1. Manufacture of Domestic, Agro and Industrial Pumps, Ahmednagar

(Maharashtra)

2. Manufacturing range of DC M/C and Railway Traction Motors, Mandideep (M.P.)

3. Manufacture DC Motors in the range of 1.2 to 450KW, Ahmednagar

(Maharashtra)

4. Manufacture of Power Transformer and Shunt Reactor, Mumbai (Maharashtra)

5. Manufacture of Distribution Transformer, Malanpur (M.P.)

6. Manufacture of Power Transformers, Mandideep (M.P.)

7. Manufacture of Transformer-AMT Plant, Mandideep (M.P.)

8. Manufacture of Stampings for Motors, Mumbai (Maharashtra)

9. Manufactures High Voltage Induction Motors, Mandideep (M.P.)

10. Signalling Relay Unit, Pithampur (M.P.)

15
 11. Luminaire Division, Mumbai (Maharashtra)

12. Fans & Appliances Division – I, Goa

13. Table Fans(Kundaim) Division, Goa

14. FHP Motors Division, Goa

15. LT Motors Division, Goa

16. Switchgear Division – EHV, Nashik (Maharashtra)

17. Digital-PSTA Manufacturing, Bangalore (Karnataka)

Transformers Plant, Mandideep

Transformers Plant, Malanpur

Alternators & DC Machines Plant, Ahmednagar

LT Motors Plant, Ahmednagar. Transformers Plant, Kanjurmarg - Mumbai

16
 Transformer Plant, Mandideep Ceiling Fans Plant, Goa

Transformers Plant - Winding Bay,

DC Machines Shopfloor, Mandideep.
Kanjurmarg - Mumbai.

Research & Development Facility, Switchgear Unit,

Kanjurmarg – Mumbai Aurangabad

17
CGL Transformers Division ,Malanpur(M.P.)
The transformers division of Crompton Greaves began operations over 60 years ago
with their first supply to the US Army. The initial inputs for technology came from
collaborations with Brush Transformers and Hawker Siddeley Power Systems of U.K.
The company then forged a technology arrangement with Westinghouse Electric
Corporation U.S.A. for transformers of up to 400 kV to serve international demand. The
Transformer Division is the highest exporter of Power Transformers from India, a
position it has maintained consistently since 1997-98. Exports of the division amount to

18
over 50% of the total transformer exports from India! Products of the Transformer
division are exported to over 40 countries worldwide. The Crompton Greaves
Transformer division is known for its wide range, reliable designs, excellent materials
and globally benchmarked manufacturing practices.

Crompton Greaves is among the very few companies worldwide that designs and
manufactures the widest range of Power & Distribution Transformers and Reactors from
160kVA to 415MVA, 500kV Class to fulfill the specific demands of the Power &
Industrial sectors and the Railways. With an installed base of over 120 million kVA in
Transformers, Crompton Greaves has emerged as the largest Indian supplier of a wide
range of Transformers and Reactors for all critical applications. These Transformers
and Reactors find use in industries such as Power Utilities, Process Industries,
Railways, Mines, Electricity Boards, Industrial users etc in both the Domestic as well as
Global markets.

The division has the capability to manufacture transformers from 400 kVA to 900,000
kVA (in a bank) 3.3 kVA to 500 kV class for various applications confirming to IS, IEC,
EN, AS, BS, ANSI and other international standards. All the plant operations are
certified under the ISO 9001 and ISO 14,000. The Division has technologically superior
manufacturing facilities in Mumbai, Gwalior and Bhopal with a total installed capacity of
18,500 MVA. Crompton Greaves incorporates the latest technology, superior raw
materials and state-of-art manufacturing facilities to build transformers of superior
quality and with high degree of reliability.

The four transformer manufacturing facilities of CGL are listed below:

1. Manufacture of Power Transformer and Shunt Reactor, Mumbai (Maharashtra)

2. Manufacture of Distribution Transformer, Malanpur (M.P.)

3. Manufacture of Power Transformers, Mandideep (M.P.)

19
Manufacturing division of Transformer, Malanpur (M.P.)
Bhopal plant covers an area of over 30,000 sq meters. The Kanjur Plant in Mumbai
manufactures Power Transformers up to 400 KV and Shunt Reactors. The Mandideep
plant manufactures Power Transformers of 132 & 230 KV range.

The new integrated Distribution Transformer division (T2) at Malanpur is spread over
20,000 sq meters. The Malanpur plant manufactures Distribution Transformers up to
20MVA, 66 KV.

The consumer products of the plant are customized and are assembled according to the
needs of the customers, Job type of production is carried out.

Based on function the transformers can broadly be divided into Power transformers,
Distribution transformers and other types of special transformers for welding, traction,
furnace etc.

1) Low Power Transformers: The power transformers are used to transform power
voltage from the generation point to the transmission point and are installed at
the generation site right up to the last substation just before distribution activities
commence. This transformer is used to either step up or step down power to
match the voltage requirements. They are oil filled transformers with its range
spanning from 11kV – 765kV. Power transformers would account for about 65-
68% of the total value of the transformer industry.

2) Distribution Transformers: A distribution transformer is used to transform power

voltage from a substation to final end of consumption. The basic purpose of a
distribution transformer is to provide end user with low voltage power. A
distribution transformer could either be oil filled or dry type by nature, with range
spanning from 1.1 kV to 11kV. Distribution transformer would account for the
remaining 32 -35 % of the total value of the transformer industry.

3) CR Transformers: A dry type transformer is used where there is space constraint

and higher chances of occurrence of fire. Special fire resistant insulation is used

20
 in this type of transformers. These are mostly used by industrial and corporate
clients at software parks, hotels, hospitals, high rise buildings etc. These
transformers are categorized as distribution transformers due to their nature of
operation, i.e. at the end users locations.

Financial Analysis
NET SALES (FY2006-FY2010)

Year CG DT T2 Division(in lacs) Rate Of Growth CG Power System Asia(in lacs) Rate Of G
2005-06 9513 32.7 115318 37.42
2006-07 12576 32.2 170644 47.98
2007-08 17909 42.41 187346 9.79
2008-009 20410 13.97 231179 23.40
2009-10 21268 4.20 269670 16.65

The Unit’s net sales increased at almost 33% in the financial year 2006 and 2007 which
is quite proportionate to the growth rate of the Power System Asia which was 38% and
48% in the year 2006 and 2007 proportionately. The net sales growth rate for Asia in
the year 2008 was about 10% on the other hand the sales for CG D2 T2 plant increased
by approx. 43%. The Net Sales for this plant has increased by 14% and 4% in the year
2009 and 2010 respectively. The T2 unit Malanpur accounts for about 7% to 10% of the
Nest Sales of the CGL PS Asia.

21
The division’s profit has significantly mounted up in the past three years as can be
easily visualized from the chart.

ORGANIZATIONAL STUDY OF CGL MALANPUR DIVISON

(M.P.)

I. Marketing

II. Materials & Stores

III. Production (Design, Manufacturing & Testing Equipment)

IV. Human Resource

V. Information Technology

VI. Engineering & Maintenance

22
VII. Finance

I. Marketing

The Marketing Department at CG Malanpur Division operates in basically two modes:

Marketing

Tendering Execution

Tendering

Customers

Quotation
Order Received (Letter of
Marketing Intent)
Design

Bill of Specification
Material

Since CG Malanpur division is a Job-Type production unit, the division takes order from
the customers which vary according to the customer requirements. The Marketing
Department takes following steps:

23
 • Enquiry received from regions

• Preparation of design

• Costing Preparation

• Guaranteed Technical Particular or GTP Sheet Preparation ( This document

contains information about the various sub-components and variation in costing
depending upon what is used)

• Techno-Commercial Deviations

• Formal Offer Submission

• Order Finalization

• Order Received

• Contract Review

Execution

Once the order is finalized by the customer, the marketing department begins the
planning phase of the order. Each order takes about 21 days to get its basic designing
done and this duration is divided according to the various steps involved in the complete
production process. The marketing department keeps the customer informed about the
progress of his order and coordinates the internal activities so as to get the order
completed within the allocated duration. If the customer makes some post order
changes, the designing team interacts with the customers about the concerned details
and whatever technical and monetary changes should be made in the contract.

After the transformer is ready to be delivered the Dispatch section sees to it that all the
necessary precautions are taken while the final product is loaded on the truck to be
delivered. Various accessories that are related to the products are also packed with the
transformer and are delivered to the customer. The Marketing Section keeps track of
24
the product till it is delivered to the customer.

25
II. Materials & Stores

Terms of
Payment
Purchase Order Bill of
Materials
Price and
Discounts Negotiations

SAP-3
Vendors

103 Movement (Stock-in,

No Accounting Entry)

Material Received

105 Movement (Unload &

Storage &
Quality Assurance)
Security
Stores

In-Time Issuing

It performs following major functions:

• It releases orders to the shop floor/vendor.

• Reschedules due dates of existing open orders.

26
 • Analyze and update system planning factors like lot size, lead time, safety stock,
scrap allowances.

• Cushion Stock-

i) providing physically a safety stock

ii) Providing cushion lead time

• It reconciles errors in inconsistencies and tries to eliminate root causes of these

errors.

• It identifies the key problem areas that require immediate action.

• It tries to solve critical material shortage problems so that corrective action can
be taken which must act as an information for the next period-

i) Accuracy of information is most important for ERP system to act.

ii) The 2nd important issue is the precaution one has to take in order launching (to
shop floor). This has to be correctly entered.

iii) Before releasing an order, it ensures that the components are physically
available, so periodic checking of actual inventory status and the one
available in the system is necessary.

In case of a discrepancy, then few people can be deployed in checking inventory from
time to time physically in the shop floor. Any correction may be entered in the system
and the process continues till the discrepancy disappears.

Inventory management

Transformers are not an off-the-shelf product, and are customized to meet individual
customer requirements and order specifications. Each transformer is identified by
assigning a job number (JN), each having a separate bill of material. Hence, they have
two types of raw material inventory: -

27
i) Raw materials which are procured against specific JN:

JN wise items are procured on the basis of monthly requirements. Depending on the
process cycle, inventory for high-value items is optimized. The required levels of raw
material are maintained in the inventory. Raw materials such as copper rods and CRGO
sheets are procured based on specific JN's. By using technical production management
tools like ERP System and CPM, they estimate our job-specific requirements for raw
materials like copper rods and CRGO sheets. On receiving copper rods, the same are
sent for job work to convert it into the requisite size of conductors as per the customer
specifications. The process of converting the copper rods into conductors is normally

completed in fifteen days. Received materials are issued to the shop floor on the basis
of requisitions generated by the shop floor team.

ii) Raw materials which are common to all types of transformers:

The requirement for these items are estimated based upon past consumption data,
future requirements, lead time, ABC analysis, and market sensitivity, minimum stock
levels and reorder levels. The company keeps its raw material purchase policy flexible
enough to absorb seasonal factors as well as unforeseen ups and down in the raw
material requirement.

Periodically, a report is developed on non-moving items and appropriate decisions are

taken in time to dispose off the same.

The Materials Department of the company plans the material requirement during one
complete operating cycle and integrates it with its strategic plans. The materials kept in
the Stores are issued to the Production Department in time according to the plans made
by the Planning Department.

Quality Check

Other than the functions mentioned above the materials department also supervise the
materials quality, for this two major functions are performed:

28
 i) 103 Movement

The 103 Movement is performed when the stock is received at the company
gates, the material is checked against the list of the materials ordered
however no entry accounting is done at this moment, the acknowledgment of
the reception of the materials is done but its validity is not communicated.

ii) 105 Movement

The materials are then unloaded from the truck into the stores and the quality
assurance department checks whether the materials received are of
appropriate quality. During the 105 movement, the materials department
safely stores the materials received in the Stores with appropriate utilization
of the space available.

III. Production - Design, Manufacturing and Testing Equipment

They use state-of-the-art technologies in their in-house design department, and strive to
upgrade the products based on customer feedbacks and engineering expertise of their
technical teams. Apart from continuous improvement, every effort are being carried out
to reduce the input cost by increasing efficiency in manufacturing cycle, reduction of
cycle time, reduction of raw material cost and procuring improved products/machines
from third-party vendors and so on. Few accomplishments achieved are:

• Introduction of CTC conductors have decreased cycle time for windings.

• Installation of the new oven in 2007 utilizing the "autoclave with Vapor Phase
Drying process" which has helped to reduce cycle time of the process of drying
active parts from approximately nine days to three days.

29
Production Process Diagram

30
A. Product Design and Planning

Since all transformers are tailor made, on receipt of the customer order, the
manufacturer commence designing the transformer as per customer needs. The
drawing is then submitted to the customer for approval. The drawing and bill of material
are then issued to various departments to carry out further work as per design.

Specification

Bill of
Technical Design
Material

NO

GTP (Guarantee
Technical Particular)

Customer
YES Details
Purchase
Order Acceptance Letter of
of Customer Intend

Technical Letter of
Specification Acceptance

31
Planning
The electrical designs are made using Excel software’s and mechanical drawings are
made using the software’s AutoCAD, Inventor and ProE. Apart from continuous
improvement, every effort are being carried out to reduce the input cost by increasing
efficiency in manufacturing cycle, reduction of cycle time, reduction of raw material cost
and procuring improved products/machines from third-party vendors and so on.

B. Manufacturing process

a) Core Building

CRGO (Cold Rolled Grain Oriented) steel sheets are used for manufacturing core
laminations by the sub contractors. They cut required size of laminations by high
accuracy shears. Laminations are stacked in step lap - interleaved fashion to minimize
core losses, exciting current and noise level. The yokes and limbs are firmly clamped
between steel channels in manner, which reduces vibration, and inherent noise.

b) Winding

Annealed/half-hard copper conductors either in the form of a strip or round wires are
used in winding operations and dimensions for the winding such as inside diameter and
outside diameter are maintained by selecting proper Mandrel. Insulation is provided as
mentioned in the design output. The coil tapping leads and phase leads are taken out
according to the design output. Coils are kept under clamping pressure and sent for
opening.

c) Preparation of insulating material

Pre-compressed boards, perma-wood (un-impregnated identified laminated wood which

can withstand temperatures of up to 1100c); craft paper, crepe paper, etc. are used as
insulating material. Components such as cylinders, wedges, spacers, rings etc. are
32
made from these materials by different operations like cutting, edge rounding,
chamfering, drilling, machining etc.

d) Core Coil Assembly

The coils are concentrically assembled on the core limbs as per the design details. The
core and coil assembly is rigidly supported and clamped. The main leads and tapping
leads of coils are then connected to bushings and the tap changers respectively. All
these leads are properly clamped and insulated to ensure required electrical clearance
and creepage.

A tap changer is a selector switch that allows the voltage ratio of the transformer to be
changed by increasing or decreasing the turns of the winding. The tapping leads of the
coils are connected to the tap changer to allow the additional turns to be brought into or
taken out of circuit. In some distribution transformers, the tap changer switch is an off
load manual switch, while in others, the tap changer is an on-load automatic switch.

e) Tank finish and paintings

After welding, tanks are pre treated by shot blasting. They are thoroughly cleaned
before applying a coat of zinc chromate primer paint on external surface. One coat of
weather resisting enamel finish paints is then applied on outside surface of the tank. To
all interior surfaces a coat of heat and oil resistant paints is applied. The final coat of
external paint is applied, prior to dispatch of ready transformer, fitted with accessories
and fittings.

f) Ovening

Hot air drying is carried out to remove moisture from the active parts of the
transformers. For transformers up to 33 kV class drying is carried out in well ventilated
ovens for a period till insulation resistance builds up to specified value. For larger
transformers, above 33 kV class, drying takes place in vacuum drying oven. The core -
coil assembly is initially heated for a predetermined period by admitting heated
kerosene vapour, and then they are placed under vacuum. This cycle is repeated till all
the moisture is extracted.

33
g) Tanking

Active parts (Core-coil assembly) after drying are placed in the tank. Bushings of
specified rating are mounted on the top or side as per design and connected to end
terminals. Tap changing switch is provided and connected to various tapping leads as
per design. The top plate is tightened at specified torque and the filtered oil is filled
under vacuum. The tank is tested for leakage by subjecting it to the required pressure
after all other accessories are fitted on the tank. The oil is used for further insulating
purposes plus the removal of heat from the windings. The assembly of the windings on
the core allows gaps to enhance the oil circulation around the windings. The tank is
constructed with fins or tubes to allow better circulation of the oil and to provide a
greater surface area for contact with the cooling air. Very large transformers have banks
of fans to provide greater air-cooling and are operated in conjunction with temperature
sensors. Some transformers also have forced oil circulation using a pumping system
and an oil cooling circuit. In installations where the use of transformer oil needs to be
avoided, the cooling medium used can be gas (nitrogen is often used).

C. Testing:

The division has a fully equipped testing room for carrying out of all routine tests such
as temperature rise test, zero phase sequence test etc. Every transformer is tested for
routine tests specified in the standard specification on the completion of which a test
certificate to this effect is issued.

All transformers are tested in a sophisticated laboratory for the following routine tests
conforming to National and International Specifications on the completion of which a
test certificate to this effect is issued.

• Voltage Ratio.

• Winding resistance.

• Impedance Voltage.

• No load and Load Losses.

34
 • No load Current.

• Dielectric tests.

CG - Transformer designs are proven for dead short circuits by tests conducted at the
independent, accredited short circuit laboratory of the Government of India.

35
IV. Human Resource

The HR Department mainly performs the following functions:

Administrative & Statutory Compliances

These are the normal day to day activities which the HR Department has to perform in
the company. They see to the regulatory organizational duties concerning the
employees and the rules and regulations defined in the Factory Act.

Recruitment & Planning

The HR department forecasts the manpower needs of the company on the basis of the
sales plan defined in the yearly budget plan. In order to fulfill the division’s manpower
requirements the HR Department performs the functions of recruitment and training, the
recruitment procedure consists of following basic steps: Questionnaire & Interview

Salary & Wages

The salary and wages are basically divided as per the classification of the employees,
they are basically categorized into 3 groups:

o Trainees : The trainees are recruited from the following sources:

 ITI (Electrical)

These trainees are basically appointed for duration of 2 years with a stipend of Rs.
2500 and are also provided with hostel facility and Mess Facility. The trainees are
also provided with 7 Casual Leaves(CL) and 7 Sick Leaves(SL) as per the
Apprentice Act. After the duration of the 1st year these trainees may be observed as
CGL Trainee whereby they are provided with some extra facilities.

 Corporate Recruited (B.E./B.Tech./ MBA)

36
 The Corporate Trainees are awarded with a stipend of Rs. 7000 with 7CL and 7SL
for 1 year and when observed as a CGL Trainee a stipend of Rs. 9000.

o Workmen (Blue Collar)

If a trainee is observed to perform well in this duration of 2 years, he may be

appointed as a CGL employee (workmen) and now he receives wages on daily
basis. Also, the workmen are appraised using BARS and are graded on a scale of
1to 4 (T-1 to T-4). The first promotion is awarded on the performance of 1st year and
then on a basis of 5 years. The employees are now availed with 7CL and 9SL, also
the employees are provided with 18 Privileged Leaves which can be availed only
after duration of 240 days as a workman.

The workmen are also given Compensatory Leaves which are subject to the number
of extra shift work.

o Executives (White Collar)

The white collar jobs are categorized into 3 categories:

1) Executives(E-1 to E-3)

2) Manager(M-1 to M-3)

3) Leader(L-1 to L-3)

These white collar jobs have 10CL, 15SL and 30PL associated with them (PL can be
availed only after a duration of 240 days). The white collar jobs are graded on a
scale of 1 to 3.

The Salaries are given on attendance basis and a computing software is used for the
same.

37
V. Information Technology

The company uses SAP3 as its ERP system for integrating various departments of the
company. The company’s various departments float the data on the ERP system and
the access to the information is provided to the employees on the basis of their
departments and their positions. Various levels of access to the information are defined
in the ERP system and the ERP system is operated through the servers at the Bombay
center.

38
VI. Engineering & Maintenance

The Engineering Department at this division takes care of the machinery needs of the
plant, for which they perform the function of tendering to purchase machines. For this
they prepare a detailed report on the use of machine and profits earned against usage
of the machine.

The Maintenance Department takes care of the Spare Parts requirement at the plant
and issues purchase orders of the spare parts. They also perform the function of
maintenance of the machines.

Pre-emptive Maintenance

The Department performs the regular functions of maintenance at the plant depending
on the usage of the machines:

• 100% Usage

• Monthly basis

• 85% Usage

• Quarterly basis

• 75% Usage

• Half-yearly basis

If at all a breakdown occurs at the plant, the operator of the machine fills a breakdown
format and lists the problem in it. The problem is identified as major or minor and
accordingly a corrective action is taken to reduce the breakdown time.

39
VII. Finance

Invoic

Commercial
Central Excise
Duty
Customer Branch

Pai

Factor Collection
y Pass of

After the acceptance of the order from the customer, the company starts the assembling
of the transformer according to the technical specification of the customers; after the
assembling and testing is completed the finance department issues an invoice and
performs 3 major functions:

Payment of Central Excise Duty

The finance department makes sure that the central excise duty on the products is paid
to the competent authorities, only when the duty fee is paid the product is allowed to
pass from the factory gate.

Commercial Invoice

The finance department also issues a Commercial Invoice a copy of it sent to the
branch office and the other copy is sent to the customer. The payment from the

40
customer is received on the basis of the terms of payment and other details mentioned
in the invoice.

Chapter 3

Research Methodology

For formulating marketing strategies, it is imperative to understand the concepts of

marketing management with specific reference to industrial marketing for industrial
product.

It is also necessary to understand the concepts of strategic management with particular

refrence to marketing strategy. Also it is essential requirement, to understand the
electric power scenario and the reforms being carried out in this sector in india as
compare to elsewhere in the world the literature survey was carried out by reviewing
the books and articles of renowned authors to built up the frameworks for formulation of
marketing strategies for providing right solutions in terms of right product.

Primary data

Primary data collection has been done by questionnaire method undisguised structured
form. Sample Customers were taken from existing and prospective users State
Electricity Board(SEB’s) Industries ,Contractors, Consultants and independent power
producers(IPP’s). The data collected was analytically examined. The responses were
categorized on the various variables that affect the buying behavior of the organization.
The factors determining customer satisfaction, which affect repeat purchases, were
also critically examined.

Questionnaire

The questionnaire is designed with close ended questions only. While designing the
questionnaire, a wide range of parameters has been given due considerations. The
questions have been mostly objective with multiple options. The various characteristics
are related on the basis of importance and weightage given in the decision process.

41
Some questions have been designed so as to obtain relevant information of the profile
and nature of the company. The details of the questionnaire are placed in annexure and
the response is analyzed.

Secondary data

Secondary data collection has been done by referring to CGL journals and brochures,
annual reports, Indian Electronics manufacturers association’s (IEEMA) monthly
journals, IEEMA production figures , and compilation of notice tenders(NITs).

A study was made on the effectiveness of marketing activities , market scenario, market
Identification of turnkey solution concept, Identification of the competition an the
customer.

Sampling

The sampling process considered to interview/get the response from atleast one
respondent from each customer segment. The samples are chosen such that samples
are involved in this type of business activity and are aware of the various facts of
transformer purchase to given correct opinion. The study was conducted and the
respondents were mainly from the commercial and engineering department. The study
was conducted during the period of May’10 to june’10 . The personal interviews were
conducted with respondents from NTPC Ltd, State electricity board(SEB’s) Bhushan
Steel Ltd.& ABB Ltd. This ensured a great variation in terms of respondents that
included actual customers and policy makers.

Sample size

The sampling units under consideration are the senior executives ,of various companies

The sample size taken was 20.

42
 LIMITATION OF THE STUDY

The research has been carried out under the following constraints:-

• The time period of the research is very small.

• The sample size collected for the research work is insufficient.

• The Questionnaire is subjected to error.

• The sampling units under consideration are the senior executives of various
companies

• Future plans of the company will not be disclosed to the trainees

• Latest data of the company could not be available as the company’s website
have not been updated.

43
 Chapter 4

AN AL YS I S AND IN TE RP RE TATI ON

Q.1 Organization belongs to

Government Semi-Government Industrial 60above

45% 35% 10% 10%

Interpretation

Different industries require different types of transformers . Here it is observed that the
customers of CGL are from different sectors. This graph shows that the transformers

44
manufactured by the CGL are providing good service and because of this the customers
are from every sector .

Q.2 Lin e o f a c t i vi t y i n e l e c t r ic a l i n d u s t r y

Transmission Distribution Generation other

50% 30% 20% 10%

Interpretation

This figure shows that the nature of industry should also be known so that it becomes
easy to provide the product according to their specifications . As it is observed that the
transmission industry requires the transformers the most and the distribution ,
generation have also the requirement for the product.

45
Q.3 T yp e o f e l e c t r ic a l e q u i p m e n t re q u i r e d

Power transformer Distribution transformer

54% 46%

Interpretation

It is also necessary to know that which type of transformer wiil be required by the
industry and the chart indicates that most of the industries require the power
transformers then the distribution transformer.

46
 Q.4 Ro u t e o f p u rc h a s e

Tender Notifications Involved consultants others

66% 22% 12%

Interpretation

The chart shows that most of the industries prefer to purchase transformers through
the tender notifications while some of the industries purchase by the help of consultants.

47
 Q.5 B u yin g pa t t e rn

Annually 50%
When required 24%
Once in 2 years 20%
Others 6%

Interpretation

48
It is clear from the chart that 50% of the industries are purchasing the transformers on
the regular basis i,e. every year. Some 24% of industries purchase it when required
while the rest purchase the transformer once in 2 years

Q.6 S ta n d a rd t e r m s o f p a ym e n t

49
 Alw a ys Mostly Very often Sometimes

Allow for 45% 26% 19% 11%

release
ad va nce
P a yment

Through 25% 44% 11% 20%

letter of
credit

Through 35% 18% 30% 17%

banks/finan
cial
institution
(IDBI etc)

others 11% 10% 50% 29%

Interpretation

50
It is clear from the chart that the 45% industries are giving the advance payments for
the products , some are using letter of credit i.e. 25% while 35% are taking the help of
banks and financial institutions and rest 11% are using other means.

Q.7 E x e c u t e d bu s i n e ss w i t h t h e c o m p a n ie s

CGL 49%
BHEL 15%
AREVA 10%
ABB 12%
OTHERS 14%

51
Interpretation

The chart shows that most of the industries had executed their business with CGL in
spite of the major players such as BHEL, AREVA, ABB are in the market . This shows
that CGL is the leading industry in the transformers.

Q.8 Ra t i n g i n te r ms o f p r ic i n g an d q u a l i t y o f t h e p r o d u c t

AREVA ABB BHEL CGL

12% 8% 20% 60%

Interpretation

52
The chart indicates that CGL is the leading company in the transformer industry in the
terms of price and quality of the transformers the Company provide to other industries.

Q.9 S e r vi c e a ft e r s a l e s p r o vi d e d b y CG L i s

Outstanding 56%
Very good 24%
Good 12%
Average 8%

53
Interpretation

The survey shows that most of the industries are satisfied by the after sale service
provided by CGL.

CGL is a prestigious company having a great brand name.

Q.10 Are you satisfied with the service provided by CGL?

Yes No
75% 25%

54
Interpretation

It is clear from the chart that most of the industries are satisfied with the product and
services provided by the CGL .

SWOT ANALYSIS

Situation analysis begins the process of strategy formulation and there is need to find
external opportunities and internal strengths. The individual parameters are hereby
listed:-

STRENGTHS

• Wide product range to provide solutions to different customer segments like

Thermal / Hydro power generation clients , transmission agencies , distribution
and industries.

• Major presence in domestic power market and wide installed equipment /

customer base.

• Prompt after sales service , understanding of Indian conditions & wide

geographical spread.

• Significant technology absorption and adaptation capability to suit local needs.

• Contemporary integrated manufacturing base and infrastructure

55
• Highly committed engineering , technical and managerial manpower

• International quality(ISO 9000/9001;2000/14001 series, OHSAS 18001,etc) at

competitive prices strategic management with a blend of appropriate measures.

WEAKNESSES

• Technology development constraints.

• Limited financing capacity for large projects & uncompetitive financing costs.

• Operational constraints (flexibility, speed of response etc.) vis-à-vis competitors.

• Inadequate recovery
from traditional customers – utilities / SEBs –> Higher working capital
requirements –> adversely affecting profitability.

OPPORTUNITIES

• Growth rate of economy

envisaged (6-8% p.a.) in next few years to stimulate large demand in
infrastructure.

• Boost to power
transmission sector & privatization moves in distribution sector

• The total transmission

capacity is planned to increase from the existing capacity of 9,450 MW to 37,150
MW by 2012.

56
• To secure cheaper
power through large size power projects ,the government launched ultra mega
power projects (UMPPs) with the target to produce

4000 MW by 2012.

THREAT

• Delay / deferment of
projects –> Adverse impact on domestic business

• Technology leaders
unwilling to share new technologies and insisting on their terms / imposing
licensing restrictions on territories.

• International players
consolidating & setting-up local manufacturing bases.

• Increasing competition
from large MNCs with greater financial & strategic muscle and speeder response.

• Lowering of imports
tariffs below the WTO bound rates continued customers insistence on
qualification / experience requirements –> Roadblocks for introduction of
indigenous technologies.

57
 Chapter 5

FI NDIN GS ,RE C OM M END ATION AN D C ON C LUSI ON

FINDINGS

MARKET CAPACITY OF CGL IN INDIA

A major part of the transformer manufacturing capacity of India is contributed by the

major players like BHEL, CGL, ABB , Areva etc. The details are as follows:-

Crompton Greaves Ltd. 30000 MVA p.a.

BHEL 25000 MVA p.a.

ABB 17000 MVA p.a.

Areva 15000 MVA p.a.

EMCO 12000 MVA p.a.

Bharat Bijlee 7000 MVA p.a.

Voltamp 5000 MVA p.a.

Telk 3000 MVA p.a.

Where as the total transformer manufacturing capacity of India in MVA is 200000

MVA(approx). and CGL is the highest MVA producer in india.

58
 M AR K E T SH AR E OF TR ANS FORM E R S ALE S IN I NDI A

MARKET SHARE OF TRANSFORMERS SALES

45%
40%
35%
30%
25% Power Transformer
20% Distribution Transformer
15%
10%
5%
0%
Areva

EMCO

Telk
Crompton

BHEL

Voltamp
ABB

Kanohar

Kirloskar

Others
Bharat

Market share: A major part of the installed transformer capacity of India is contributed
by the transformers supplied by CGL i.e. every 7th transformer in the country is a CGL
made transformer. High market share is due to customer’s confidence in our reliable
products and services . However many international players entered in the Indian
market like ABB , SIEMENS, AREVA and many more to come, CGL is ready to face &
counter future competition by continuous up gradation in its technology & services . In
spite of such stiff competition, CGL has maintained increasing order book position and
has increasing turn over values.

Purchase methodology : All the customers prefer to purchase through tender as

indicated by over 100% of the respondents .

Funding procedure: Majority of the customers are funding the projects from the
domestic funding the projects from domestic funding or own funds i.e. 35% next way
preferred is through world bank /ADB i.e. 28% others are financial institutions which is
24% and ECB 13%.

59
Decision time: The responses received takes 3 to 6 months as the products being
purchased are generally costly and through tenders however sometimes , responses
received takes more than 06 months.

Buyer selection procedure: The suppliers were selected on the basis of tender and
order being given to the lowest or the chosen one, who provide best quality in cheaper
prices.

Rating of various attributes of products: The results in the chart clearly marks that
customers wants the best quality at best prices . The quality and price are the front –
runners at 24% and 23% respectively followed by ‘After sales services’ and the
delivery. The customers are not interested in the brand image in the industrial
purchases.

Rating of the companies in terms of quality: Customers perceived quality as the

most important criteria . The respondents have rated the product –performance of major
equipment suppliers . It has been observed that 22% respondents have rated CGL with
the best quality of products . It is closely followed by BHEL at 21% ,ABB at 20% &
Areva at 19% . Quality of EMCO has not been upto mark.

Rating of the companies in terms of price: The company who can offer best quality
at affordable prices often turns out to be a winner. It has been observed that 22%
respondents have BHEL for offering products at high prices ; followed by CGL at
21%, then ABB at 20% and at the end AREVA and EMCO at 19% &17% respectively.

60
 RECOMMENDATION

The study and the analysis of the data tell about marketing strategy for the transformer
manufacturers. Thus, we need greater emphasis on the following areas:

• Increasing market share – Aim to increase penetration especially in

distribution transformer.

• Price competitiveness - to meet the levels of the small transformer

suppliers.

- The above can be achieved through:-

1. Greater participation in the distribution transformer.

2. Pre tendering activities to help customer developing specifications.

3. Increased level of public relations with the customer.

4. Updating the customer with the new technologies by conducting

studies.

5. Improving the flow of information and speed of response towards

the customer.

6. Effective competitive prices and delivery schedules.

7. Awareness about the market development and competitor

strategies.

8. Lowering the inventory of spare parts i.e. effective material

management.

9. Providing better After Sales Services to the existing customers.

61
62
 CONCLUSION

I was given the opportunity to do my project in the CGL, which is the largest transformer
manufacturing enterprise .To conclude this project report , it can be said that the
company holds a good market share and is managing well, even when there is cut
throat competition in the market.

The study reveals that the company has entered into the technical
collaboration with many international firms through acquisitions. With the increasing
competition ,company has improved their performance in services and provide prompt
after sales services. The study on, the factors affecting the marketing environment of
the company also helped in knowing the impact on economic, political, social &
technological aspects of the firm. Firm has got a large network of customers and thus
helped in knowing their perception about the firm’s product quality, price. Reliability and
delivery.

Overall , it was a great experience to work with such a company who has an
excellent marketing strategies and ideal sales/marketing network..

63
 ANNEXURE

QUESTIONNAIRE

1. Sector to which your organization belongs?

• Government

• Semi government

• Industrial sector

• Private

2. What is your line of activity in electrical industry?

• Transmission

• Distribution

• Generation

• Others

3. Type of electrical equipment required?

• Power transformer

• Distribution transformer

64
 4. How do you route your purchase?

Mostly Very often Sometimes

Tender
notification

Involved
consultants

Others

5. What is your buying pattern?

• Annually

65
 • When required

• Once in 2 years

• Others

6. Your standard terms of payments?

Always Mostly Very often sometimes

Allow for
release
advance

66
payment

Through
letter of
credit

Through
banks/financi
al
institution(ID
BI etc)

Others

7. Companies with which you have executed business?

• Crompton greaves limited(CGL)

• BHEL

• AREVA

• ABB

• OTHERS

67
 8. your rating in terms of pricing and quality of the product?

1 2 3 4 5

CGL

BHEL

ABB

AREVA

9. Service after sales provided by CGL is?

• Outstanding

• Very good

• Good

• Average

10. Are you satisfied by the service provided by CGL?

• Yes

• No

68
 BIBLIOGRAPHY

WEBSITES

www.powermin.nic.in

www.google.com

www.cea.nic.in

www.cgonline.com

Magazines and journals

IEEMA journals

National electricity policy

CGL annual report 2007-08, 2008-09, 2009-10

69