Presented By:-Kumar Abhishek

Jyoti

Prashant Kumar

Respondent:-

Mr. Ankit bhardwaj

Sr. HR Executive (Triveni Turbines)

COMPANY PROFILE:

Head-quartered in Bangalore

Factory area- 11 acres, equipped with contemporary machining and assembly facilities.

State of art R&D facilities.

Consistently maintaining over 70% market share in last decade

Continue to grow significantly.

First turbine company to be ISO 9001 and ISO 14001 certified.

Complete Business process runs on SAP R/3

Well established high quality vendor network

Emerged as successful exporter of small steam turbines.

Very large base of 2000 working turbines.

Employee strengths:

Sanctioned strength- around 450,

Officers: 169

Maintaining 65% – 70 % of over all Market share of up to 30 MW capacity in the last 10

Years

More than 2000 turbines ( Maximum in it’s range) in the field

Have commissioned over 100 ( more than any competitors) TG sets in co generation field .

Good acceptance in oversees market in products and service

Leadership through Customer Care and focus, Average uptime around 99 % for turbines.

Two Distinct Promoter driven,Businesses - professionally

managed companySugar & Engineering

Eminent andPan India Presence independent Board

of Directors

Introduction :-

Management Efficiency Ratios FY’06 FY’07 FY’08 FY’09

Inventory Turnover

Ratio2.23 2.99 4.57 3.38 4.57

Debtors Turnover Ratio 15.44 14.36 19.61 10.31 8.36

Investments Turnover

Ratio2.43 3.25 5.22 3.38 4.57

Fixed Assets Turnover

Ratio4.36 2.74 2.03 1.02 1.17

Total Assets Turnover

Ratio1.55 1.31 1.14 0.82 1.10

Asset Turnover Ratio 2.51 1.69 1.27 1.02 1.17

Net Operating Profit Per

Share (Rs)116.04 46.51 74.00 61.51 73.98

Return On Capital

Employed(%)25.23 20.96 10.54 13.10 21.51

Ratios:-

ROCE = EBIT / (Total Assets – Current Liabilities)

Over 35 years of Design and

Operation Experience(The largest and

most experienced )

More than 2500 turbines in

operation & has around 75% market

share.

Time Tested & Proven Machines

Rugged design to withstand

Tropical conditions & variable Grid

Rich experience in Industrial CHP

applications.

The research and development Use

of modern technology

Prompt and Efficient After sales

support

SWOT ANALYSIS

Weaknesses:-Strengths:-

Financing costs are a substantial

expenditure.

Increase in prices of metals,

which constitute primary raw

materials for our engineering

products, may adversely affect

financial conditions.

There is no weakness as of now ,

there are areas of improvements

always ,what we keep doing.

Threats:-Opportunity :-

Prospects for growth and capacity

additions in user industry directly

impacts prospects for turbines .

Prospects in international market.

Funds availability and duty structure

too, have a bearing on turbines

business.

Prospects for sugar, paper

chemicals, petrochemicals, fertiliser

industry affect demand for smaller

(< 10 MW) turbines

Power plants, steel and paper

industry prospects affect demand for

larger (> 10 MW) turbines.

Co-generation trends drive demand

for larger capacity turbines.

undertake acquisitions or investments

or strategic relationships or divestments

in the future which may pose

management and integration challenges.

The global and domestic turbine user

industries may slow down or saturate.

Technological obsolescence of our

product range can lead to an erosion of

our customer base and declining market

share.

Increasing competitive pressures in

turbine business - through reduced

import duties, larger number of

suppliers (mainly foreign) and substitute

products - (drives replacing lower rating

mechanical turbines.

SWOT ANALYSIS

Competitive

Rivalry ( High)

Threat of new

entrants

(low)

Bargaining power of suppliers

(Moderate)

Threat of substitutes

(Low)

Bargaining power of buyers

(Low)

Porter’s Five forces framework

PEST ANALYSIS

Political:-

Service tax , education cess,

Export duties

International policies

Taxes and other levies imposed

by the Government of India or

other state governments

Economical:-

Exchange rate fluctuations

A slowdown in economic growth

in India

A significant change in the

Government of India’s economic

liberalization and deregulation

policies.

Social:-

Natural calamities have a

negative impact on the Indian

economy and cause it’s business to

suffer.

Terrorist attack, civil unrest and

other acts of violence or war

involving India and other countries.

Technological:-

Continuous changes in the design

of the turbines to meet the growing

demand of power generation.

Legal:- legal proceedings &

petitions related to it’s business &

operations.

Research findings, Interview responses & strategies:-

Q 1. Has your association articulated a vision for the association?Yes .

Q 1. Has your association articulated a vision for the association?

A . Yes , updated last year.

Q 2. Is the vision statement relevant to the association’s activities and mandate?

A. yes, very relevant.

Q 3. How does the organization manage linkages within the value chain system ?

A. GM of each department alternately meets with the GM of the concerned

department.

Q 4. What is the core competencies within its different activities of value chain ?

A. The core competency of triveni industries is that it is “pioneer in turbines

manufacturing”. However, different departments are experts at their corresponding jobs.

Ex.

R & D – Engineering formulae and calculation ,Customer care :- Trouble

shooting ,Mechanical & electrical – Design etc.

Q5. How has it been in developing competitive advantage?

A:- Through continuous innovation and accepting all new trends of turbine industry.

Q 6. What are the resources that are helping to achieve the competitive advantage ?

A:- Through T&D, employee satisfaction.

31). Does their exist any resource gap that must be filled in your belief and which needs

investment to improve upon ?

A:- For a time being no, but time to time decisions are taken

Continued….

Q . Which approach is chosen for measuring organizational performance ?

a) EVA approach b) Benchmarking

c) ROCE d) Income approach e)Others

Q. Has there been any structural change in the turbine industry which has affected your

organization ?

A:- Yes, when the concept of twisted blades had come into picture , to consistently be the

market leader the company had to adopt the technology and for this had to change their

entire setup which took around one year.

Q. What strategies company has been following in recent years ?

A :- Business level ( differentiation, and cost leadership)

Q.Where according to you , you place your organization in this respective turbine industry ?

a) Introduction b) Growth

c) Maturity d) Decline

Q. What growth strategies have been undertaken by the company in the past ?

a) Market penetration b) Market expansion

c) Diversification d) Product development

Ans:- Market expansion in IRAQ, Diversification in Maharastra , the product was tapered

blade turbines of 20 MW,Product development is also consistently done.

Continued….

Q. Has your organization executed any international strategies ?

a) Export b) licensing ( had given to UK based company

ALMSTOM in 1998, withdrew in 2004) c) franchisee

d) Joint venture ( on 14th April 2010 ,with GE turbines)

by 1st October we will adopt certain International strategies once this JV comes into force.

Q. What is the role of the leader in your organization ?

A:- To develop the business , meeting the vision and mission statement , concentrating on

cherishing the decentralized innovation.

Q. Has there been any challenging situation in the past where the role of the leader was

quite directional ?

A :- Yes, when the economy was seeing the financial downturn , more than 60% orders

were pending. And the clients were saying to hold turbines for 6 months which was

affecting our profitability. Then MR shawhney decided to do an agreement to them and

asked them to produce bank guarantee then turbines were delivered. And on his own will he

gifted one turbine to Mr Nawaz sharif who has sugar industries .

Q. Has there been any corporate governance reforms?

A :- Yes , Two new executive directors as well as promoters have joined in , Mr Tarun

Shawhney & Mr Nikhil Shawhney.

Q. Is your organization contributing to society through CSR activities?

A:-- Yes, we are funding to schools and giving funds to a few NGOs .

Challenges faced

There were three areas where Triveni wanted to improve. In the recent past, the company

has shifted its focus from being a product-oriented company to a services company.

1. The first was customer support (CS). Critical information such as the case

history of spares at customer premises were maintained manually and the systems were

paper-based. Because of the data being unavailable we ended up overstocking spares.

2. Project systems ( for tackling projects), Each item/spare is tracked with the

associated project. Triveni manufactures some of the items/spares and partially

outsources/procures from a third party. A purchase order is issued against each item/spare

directly bought out. Triveni had to deal with large number of items at a time (on an average,

80 to 90 items); there was no means of tracking these projects.

3. Cost of project was the third area : . It was necessary to determine how much

Triveni was investing in a given project. It was easy for us to calculate the cost of the spares

but because of longer shelf life of spares (25-30 years), it was difficult for us to calculate

the travel expenses incurred while getting to the customer premises, spares supplied during

warranty conditions and the like.

Strategies Implemented

Following measures were taken :-

1. Establishment of extensive customer care unit. In case of any complaint,has to

be resolved within 24 hrs.Use services to establish product life-cycle

relationships with customers

2. SAP R3 implemented. ( Functional level strategy)

3. Cost cutting strategies

-Cost leadership strategy

-Less inventory

-Early dispatches

-Negotiation with vendors when metal rates change.

-Online customer support and quality check.

GROWTH STRATEGY – PRODUCT DEVELOPMENT:

-Expand the manufacturing infrastructure

-Increase the range of products offered

Strategies Implemented

CORPORATE LEVEL STRATEGY:

Triveni Turbines ltd.(TTL) will allot Triveni shareholder’s one share for every

share held. The board approved the demerger of the turbine business of Triveni

groups to TTL with effect from 1st October, 2010.

This demerger will result in-

-clear management focus.

-flexibility to get strategic partner.

The company is looking for partnership which will add value to business and is

looking at Europe, US, and Parts South-East Asia for expansion.

INTERNATIONAL STRATEGY AND GLOBALIZATION :

-Focus on export of steam turbines

-Joint Venture with GE (49% stake of GE and 51% stake of Triveni)

- technogy transfer for design & manufacturing

- global presence

-great example of the decentralized 'reverse innovation'

Triveni Engineering capacity will be at Bangalore and turbines would be sold

with the brand name GE in the global market. looking at a global market of $1-2 billion.

Conclusion:-

1. A rational blend of determined intentions, focused efforts, intelligent direction

and skillful execution offers it a strong platform to deliver world-class products and

solutions to its customers.

2. The Competetive Strategies which have provided Triveni Industries an edge

over its competetitors are :

-Triveni technology is of paramount importance,

-quality is a logical sequel.

-stringent quality measures from design to manufacture and testing to dispatch.

-3-stage quality check:

-Raw materials stage

-Component Manufacturing stage

-Final Assembly Full speed test stage

3. Continuous improvement in all its processes and products through TQM tools

and Six Sigma Methodologies.

4. Provides higher quality of international standards such as IEC etc.

5. A market leader in the turbine industry is its readiness to change and bring

about innovations through effective strategy implementation.

6. The value chain system of this particular company is properly organized and

guide towards effective linkage of its different components.

Thank you !!