Presented by

R.Manohara Krishna Ganti

PGDM-Marketing
ITM Business School
Contents

 Introduction to the DG market

 Research objectives
 Research methodology
 Data collection
 Data analysis & Interpretation
 Major findings
 Recommendations
 Conclusion
The diesel generator set market in India is a well organized and
highly competitive market.
 .

The diesel generator set market in India can be broadly

classified as small diesel generators (7.5-160)
kVA), medium diesel generators (180– 625kVA) and large diesel
generators (750– 3000kVA).

The market witnessed steady growth rates in the last decade on

account of chronic power shortages and rapid growth across
several segments

The total genset market is now estimated to grow steadily at a

CAGR of about 10.1 percent in revenue terms
between 2009-2015.
To find the market potential for the diesel generator market in Navi
Mumbai
To improve the flow of enquiries
To explore new markets
Designing novel strategies for capturing the DG Market
 SWOT ANALYSIS
STRENGTHS
1 Integrated player with full
diesel product line
Global technology with
localization capabilities
2 Distribution strength with pan-
India coverage
3 Pan –India After-market support
capability
4 Cummins Brand
5. Strong R & D
6)rising urbanization, growing
consumerism and increasing
infrastructure investment.
OPPORTUNITIES
India growth story remains
positive
2 High energy deficit (7-12% of
peak demand)
3 Delay in onset of monsoons,
hence longer summer
4 Game changing 2013 emission
norms
5 Tightening of CPCB 2 norms
OF CUMMINS
WEAKNESS
1 Segment wise FFM proposition
2 No Products in Sub 12 kW
3.Heavy dependence on few
suppliers
3 Tough competition, limited
market share
THREATS
1 Presence of large number of
unorgansed players is leading to
unhealthy competition
2)Low margin pressure with
increased commodity costs
3)Emergence of new power
generation sources like solar
energy
4) Hold on current projects
leading to sluggish demand
5)New emission norms will
change value equations for
gensets
6)Diesel price
deregulation in near
future is likely to affect
the sales of diesel
 SWOT ANALYSIS
STRENGTHS
• Strong brand acceptance & visibility
across India.
• Good penetration of business
especially in and upcountry markets
• Manufacture engines for variety of
applicationslike Agriculture, Industrial,
Powergen.
• Strong dealer & service network
Positioning as a price competitive brand
OPPORTUNITIES
• Can capitalize on competitive
manufacturing for
small engines as these are outsourced from
traditionally loyal vendors
• Can meet the growing demand with
newmanufacturing facility at Kagal
(capacity – approx 1,00,000 units pa.
New business opportunities with DV Series
engines (320 to 625 kVA
OF KOEL
WEAKNESS
• Do not have presence in above 750
kVA market
• All OEM’s are not as financially
strong
• Perceived quality & product
aesthetics
THREATS
• Business compulsions of allocating
engines as
per requirements from various internal
lines of business
(Agriculture/Industrial/Powergen)
• Ongoing loss of business
opportunity from the 750 kVA &
above market demand due to lack of
adequate product range
The basic methodology used is of descriptive statistics
Where information is collected through questionnaires
from the respondents
Generally personal interview, some times telephone
interviewing.
are the basic methods I used for collecting the information
data is collected in two forms.
They are primary data data & secondary data
Secondary data is collected through magazines journals , frost
&sullivan reports.
According to it, Frost & Sullivan research service titled Indian Diesel
market
. In this research, Frost & Sullivan's expert
analysts thoroughly examine the following market segments: 15 – 75
kVA, 75.1 –375 kVA, 375.1 –750 kVA, and 750.1 – 2,000 kVA.
Expert Frost & Sullivan analysts thoroughly examine the following market
sectors in this research:
By Output Range:
- 15-75 kVA
- 75.1-375 kVA
- 375.1-750 kVA
- 750.1-2,000 kVA.
By End Use Vertical:
- Large- and small-scale industries
- Hospitality
- Real estate
- Commercial and residential
- Hospitals and healthcare
- Retail and restaurants
The primary data is collected approximately from 216 respondents
making sample size as 216 respondents
Data is collected through personal interviews with maintenance
mangers sometimes also through through telephone interviewing
Data is collected from various regions of Navimumbai they are Kharghar ,
Vashi, Ghansoli ,Bhiwandi, kalyan , kopparkhairne

I had collected information from various sectors like

Warehouses & industries at Bhiwandi ,
construction companies in Vashi
IT sector in Ghansoli,commercial complexes ,banks etc
I had telephone interviewed some of the respondents for information
 VIBRO POWER
STERLING FG WILSON HONDA 1%
ERAM
1% 1% 2% 1%
PELICAN
GMMCO VOLTEM ELEMAX 1%
1% 1% 1%
ASHOK MTU
GENSET BRAND SHARE
1% 1%
GREAVES
2%

MAHINDRA
4%

KIRLOSKAR
39%

CUMMINS
43%
USAGE OF GENSET BRAND IN WAREHOUSES
DATA ANALYSIS & INTERPRETATION
GENSET USAGE IN RESIDENTIAL & COMMERCIAL
COMPLEXES
USAGE IN IT PARKS &BANKS
ERAM GENSETS CROMPTON GREAVES
2% 2%
MTU STERLING
4% 2%
VIBRO POWER HONDA
2% 2%
FG WILSON
2%
GMMCO
2% kirloskar
mahindra 30%
2%

cummins
50%

GENSET USAGE IN IT PARKS &BANKS

KVA -RANGE
ANALYSIS OF HIRING SEGMENTS OF CUMMINS
DATA REGARDING USAGE OF AMC

PRIVATE AMC
31%

COMPANY AMC
69%
PARAMETERS TAKEN

• Rate of performance on 1-10 scale

• Servicing rating on 1-10 scale
• Fuel efficiency on 1-4 scale
• Spare parts accessibility on 1-4 scale

• These are the main parameters primarily taken into

consideration along with other factors
RATING FOR SERVICE
GENSET COMPNAY Mean N Std. Deviation
GREAVES 8.30 1 .
ASHOK LEYLAND 8.15 2 .212
CUMMINS 8.31 61 .990
ELEMAX 8.00 1 .
ERAM GENSETS 8.30 1 .
FG WILSON 8.30 1 .
GMMCO 8.65 2 .495
GREAVES COTTON 8.30 1 .
HONDA 8.20 3 .173
KIRLOSKAR GREEN 8.28 58 .559
MAHINDRA 8.64 7 .653
MTU 8.15 2 .212
PELICAN 8.30 1 .
STERLING 8.30 1 .
VIBROPOWER 7.00 1 .
VOLTEM 8.30 2 .000
Total 8.30 145 .757
RATING OF PERFORMANCE
GENSET COMPNAY Mean N Std. Deviation
GREAVES 8.00 1 .
ASHOK LEYLAND 5.50 2 4.950
CUMMINS 8.75 61 .830

ELEMAX 6.00 1 .
ERAM GENSETS 8.00 1 .
FG WILSON 8.00 1 .
GMMCO 7.50 2 .707
GREAVES COTTON 8.00 1 .
HONDA 7.00 3 2.000

KIRLOSKAR GREEN 8.35 57 .954

MAHINDRA 8.57 7 .976
MTU 8.00 2 .000
PELICAN 2.00 1 .
STERLING 8.00 1 .
VIBROPOWER 7.00 1 .
VOLTEM 6.00 2 2.828
Total 8.33 144 1.274
SPARE PARTS ACCESIBILITY
GENSET COMPNAY Mean N Std. Deviation
GREAVES 2.95 1 .
ASHOK LEYLAND 2.50 2 2.121
CUMMINS 2.89 61 .737
ELEMAX 4.00 1 .
ERAM GENSETS 2.62 1 .
FG WILSON 2.00 1 .
GMMCO 3.92 2 .109
GREAVES COTTON 2.33 1 .
HONDA 4.00 3 .000
KIRLOSKAR GREEN 3.35 58 .758
MAHINDRA 3.18 7 1.019
MTU 3.50 2 .707
PELICAN 3.43 1 .
STERLING 2.86 1 .
VIBROPOWER 3.00 1 .
VOLTEM 3.04 2 .758
Total 3.13 145 .796
IMPROVEMENT IN FLOW OF ENQUIRIES
 As far , as I observed word of mouth & referral marketing
brand awareness are the three important factors playing in
action
 As we are very low in to the penetration of construction
segment , our sales executives should have high monitoring since
this sector is in booming, maintaining good relationship with
the contractors will aggressively raise our enquiry cases
 Moreover more chance of hit ratio.
 In banking sector there is more scope since many business
tycoons are entering in to the banks ,especially entry of Reliance
& Tata groups .
 Government had issued a law where 25% of total banks
established must be in rural areas.
 More advent of malls & complexes are entering
MAJOR FINDINGS
• In total there are 173 generators market so far I founded in the
areas I visited so far in and around Navi Mumbai.
• In that Kirloskar - 83
• Cummins - 62
• Mahindra - 7
• Crompton greaves- 4
• Gmmco- 3
• Honda- 3
• MTU- 2
• Voltem - 2
• F.G.Wilson- 1
• Sterling- 1
• Vibropower- 1
• Others- 7
MAJOR FINDINGS
• So it is very clear that Cummins comprises of 35% market
share where Kirloskar comprises of 47% market share .
• In over all ,Cummins has scope of about 65% (111 gensets in
this case) of market to be captured .
• Even it is performing well in over all segments but when
comes in construction segment it is very low, the major
variation when compared to kirloskar comes from this
segment.
Factors responsible for low market share in
construction segment

• Native brand image of kirloskar:

• I had exposed to the people who says whenever the genset name
comes they thought of only about kirloskar, such image and brand
awareness has got for kirloskar.

• Strong dealer network of kirloskar and good relationship with the

contract engineers locally made kirloskar presence everywhere
• As per the data analysation & observation , especially in the
construction segment in Navimumbai , 4-5 dealers of kirloskar are
strong and agile.
• Whenever there is in venture starting ,they are very agile in next
dealing generator sale, as a result good amount of sale in
construction segment are happening so far from them
MAJOR FINDINGS
Coming to the warehouses , due to their old established, Kirloskar is prevailing
brand at that time , brand nativity, & strong brand presence made kirloskar
dominant player

Moreover the dedicated after sales of the kirloskar cemented the brand
relationship.
Another main important factor is that due to advent of private electricity board
such as torrent and reduced power cuts made some warehouses independent
of generators
But major chunk in textile industries & Pharma warehouses has increased the
usage of generators
The only day in having significant power loss is on Friday in a week
 Recommendations
Sector specific strategies
• Strategy for Construction Segment:
• Since our market share is less than 5% , we have to introduce
a dedicated sales team & also dealers for this construction
segment.
• Location specific monitoring has to be done strongly.
• positioning as good value for money to the construction
companies.
• Since majorily the kva falls from 15-125 range,finding
alternate ways for the cost reduction for aggressive
penetration in to this segment one of the way to fight
against the tough battle of competition from kirloskar
Strategy for IT parks & banks
• Strategy for IT & BANKING SECTOR;
• Since these sectors are of time valued driven sector,
• In this we have to position well about the after sales
primarily.
• Good communication regarding after sales plays an vital role
in this segment
• Since 90% of them are opting for AMC its better to improve
after sales with strong monitoring regarding the segment
RECOMMENDATIONS
• Strategy for Warehouses & Industries
• Even there is considerable drop in genset usage, textile
industries , Pharma warehouses are in need of the hour
• If we can improve our after sales we do have a competitive
edge on this sector.
• Two way communication between the customer & service
engineer is to be improvised
CLUSTER ANALYSIS
RECOMMENDATIONS
It is very clear from the data that fuel efficiency and availability of spare parts
are areas to be concentrated .
Innovations in product development along with cost reduction process plays an
major role in coping up against the tough competition.
Feed back from the service engineers regularly enables us to know the problems
faced by the customers and to rectify them as soon as possible
RECOMMENDATIONS
• Brand promoting is done by arranging tech shows
• Event sponsorships which acts as a powerful media in through
various industrial associations in Navi Mumbai such as
• SSEA(Small Scale Entrepreneurs Associations)
• Thane Belapur Industrial association where we get exposed
to good amount of industries
• Taloja Industrial Associations.
• Promoting brand awareness in Digital media space which is
fastest & powerful rich media connecting swiftly to
customers making C2C Connect ( i.e Company to Customers
• Connect) in less time
Finally I conclude that LHP segment competiton is high and
innovation such as product development and over all also cost
reduction process is to be done along with product branding.
Ultimately marketing research mainly helps in decreasing the
uncertaintiy to an maximum extent assisting in easier decision
making