SUMMER TRAINING REPORT ON SIGNIFICANT & ANALYSIS OF ENERGY EFFECIENT LIGHTING AND POWER BACK UP PRODUCT IN WEST BENGAL

INDUSTRIAL BELT THROUGH INDUSTRIAL VISIT

SERVOTECH POWER SYSTEM LIMITED

Post Graduate Diploma in International Business by

SOURAV GANGULY PGDM IB : 2011-2013 ROLL NO : 11

Industry Mentor SUJIT KUMAR (ASM)

Faculty Guide KRITI SWARUP

PREFACE PGDM IB is a stepping-stone to the management carrier and to develop good manager it is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and its not sufficient to produce a good manager thats why practical knowledge is needed. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. In accordance with the requirement of any post-graduate management course, I have done summer training project on the topic SIGNIFICANT & ANALYSIS OF ENERGY EFFICIENT LIGHTING AND POWER BACK UP PRODUCT IN WEST BENGAL INDUSTRIAL BELT THROUGH INDUSTRIAL VISIT with SERVOTECH POWER SYSTEM LIMITED. The main objective of the internship project has to study about the services which are provided to customers, distributor, shops and how these are complied by Compony with various regulations. In the growing global competition, business has taken a new shape in the World. Todays Manager has to understand the uncertainty of business environment to cope with the situation. Dissertation for each and every Student of PGDM IB is an essential part of completion at the end of 1st year of the course. The prime objective of this summer training to familiar with real life business environment and apply the theoretical concept of business into reality and know how much theory is applicable in day to day business activity.

Moreover the experience acquired by student helps to decide the fut ure Professional career.

DECLARATION I hereby declare that the following documented project report titled SIGNIFICANT & ANALYSIS OF ENERGY EFFICIENT LIGHTING AND POWER BACK UP PRODUCT IN WEST BENGAL INDUSTRIAL BELT THROUGH INDUSTRIAL VISIT " is an authentic work done by me. The study was undertaken as a part of the course curriculum of PGDM IB, Full time Program in INTEGRATED INSTITUTE OF LEARNING & MANAGEMENT - COLLEGE OF MANAGEMENT STUDIES (IILM-CMS) I hereby declare that the study has not been submitted to any other institute/organization for the reference.

SOURAV GANGULY PGDM IB: 2011-13 Roll No- 11 IILM - CMS

ACKNOWLEDGEMENT This provides me an opportunity to thank and show my gratitude to everyone who encouraged and guided me during this tenure of Summer Internship Program at SERVOTECH POWER SYSTEMS PVT. LTD... . My association with SERVOTECH POWER SYSTEM as an intern was a highly enriching experience which helped me in gaining immensely in terms of knowledge as well as experience. This exposure helped me to get practical insight of a real work environment. With immense pleasure and deep sense of gratitude, I wish to express my sincere thanks to Mr. RAMAN BHATIA Managing Director of Servotech Power System Pvt. Ltd. for allowing me to carry out this project in Servotech . I am deeply gratified to Mr. SUJIT KUMAR (Company Mentor) and ASISTANT SALES MANAGER in SERVOTECH POWER SYSTEM LIMITED. He has guided me in doing my project with his constant encouragement and expert guidance throughout the course of this project. He has spared his valuable time to help me in my project which provided the necessary driven force that enabled me to pursue the project work with vigour and keen interest. I also thankful to Ms.Rama Narang (Team Leader) in servotach for her constant guidance throughout the project. I take this opportunity to thank all the people of Servotech Power System for helping me and providing me useful information. I am sure the knowledge imparted would help me in the long run in enriching my career. I would like to thank Prof. KRITI SWARUP of IILM-CMS for providing me this opportunity to get an experience of real work environment. In spite of having a very busy schedule she also guided and mentored me during my Internship period and taught the need of application of the theoretical knowledge in the real world; without her advice and encouragement this project would not have been completed.

TABLE OF CONTENTS CONTENT Executive Summary Introduction Market Analysis Objective Of The Report Background Of The Organisation Product Information Department Of The Organisation Pricing Strategy Sales Strategy SWOT Analysis Competitors Survey Methodology Findings Recommendation Learning Bibliography PAGE N0. 6 7 8-9 9 10 11-12 13-14 14-15 15 16 17 18-20 21 22 23 24

EXECUTIVE SUMMARY: Theoretical knowledge gained by student through classroom study is incomplete, if not subject to practical exposure of real corporate world and the challenges and problems that one face at the actual work place. In that context the study has been taken to be aware of the real business world. My Internship at SERVOTECH, in its Marketing division, was a wonderful experience. Every day came with new challenges as well as opportunities to out-perform myself. My team was always willing to help me with every doubt no matter how trivial it was. Everyone in the office was approachable and willing to render help. Selling the product of the company was an enriching experience wherein I got exposure to the world of corporate & polished my knowledge. My job is to create brand awareness,product awareness and most importantly doing a proper marketing survey in the industries regarding power back-up system and energy efficient lighting (LED LIGHT) product of Servotech among the industries in KOLKATA, DURGAPUR, ASANSOL industrial belt. For this reason I have visited close 130 companies in those area and talked to the administrative department people about which company power back system they are using in their company whether they are satisfied with the service understand their requirement and promote the products of Servotech and if they willing to use led light in future also is there is any requirement. This will also help me to focus on some of the key issue like competitive position, the strength, weakness, consumer awareness, brand awareness etc. Some suggestion has been made on the different product and services on the basis of the feedback given by the concerned person of different companies that I had gone through. The study has been concluding that the company performance is excellent in comparison with its competitor and the company has high growth prospect in future years to come.

INTRODUCTION
Power backup (including batteries) is a $1.1 Billion revenue industry in India. This industry has several facets uniquely shaped by Indian market realities of customer need and supply-demand dynamics. Two types of power backup devices commonly deployed in India are (a) the UPS and (b) the Inverter. In the Indian context the UPS systems refers to a power backup source for limited times, up to one hour or less, and a true-sine wave output is generated. These are generally on-line systems where power is processed continuously and no transition to backup mode is seen by the load. Desk-top Computers, Data-centers, Hospitals, Telecom exchanges, and mission critical applications use UPS systems. Battery ratings are consequently lower and form less than 30% of the system cost. One of the reasons for shorter back-up time is that there is an alternative power generation source (such as Diesel Generator), that comes on-line soon after utility power fails. The Inverter system refers to a power backup source for extended time of power outages, typically from one hour to eight hours or more, and a pure sine-wave output (older products produce quasisine wave output) is produced by the system. Battery ratings (and the battery chargers also) are typically of high capacity, consequently the battery costs can form 60% or more of the system cost. These are popularly deployed in homes and offices to drive ceiling fans, TV sets, fluorescent and incandescent lights, or even elevators in housing complexes during power outages.

One salient characteristic of these applications is that they are essentially power electronics end equipment, and hence, Power Electronics is the driver and forms a large portion of the cost of the system. We estimate the Power Electronics content in the UPS and Inverter markets combined at $494 Million per year.

Demand and Growth rates for Power backup systems The following figures provide unit volume and PE content for power backup segment in 2009.

UPS systems We estimate the UPS market in India has a Power Electronics content of $290 M. The industry has seen declining revenues the past two years of 8-9% but prior to 2008 the industry grew at a CAGR of 18%+ for 5-6 years. The sub-5 kVA systems make up 35% (by unit volume) of the UPS and Inverters sold in Indias market. Within this, more than 70% by unit volumes shipped are rated 600 VA and below which cater to the desk-top computer and linked to the growth of this market. Recent growth in the penetration of laptops and net books and the erosion in desktop PC sales are perceived as the reason for declining sales in 2009 in the 600 VA and below segment. The 10-100 kVA systems earn the highest revenues in the online and line-interactive UPS systems market. The outlook for 2010 remains depressed to flat, and beyond that recovery to a CAGR of 18-20% is our forecast given the power shortage in the country. Several projects for generating power, largely coal-fired plants, are in the pipeline and a recent initiative to tap into solar power has begun, however, this power hungry nation will still see power outages due to the supply-demand gap in power generation for the near future.

INverters We estimate 1.8 Mu inverters are sold annually in India, with more than 60% rated below 1.5 kVA. We estimate the Power Electronics content at $204 Million. This market is expected to remain steady in 2010 and accelerate to a growth of 10-15% as the power shortage in the country is expected to ease only after 2012. This industry is currently much more fragmented than the UPS industry. The unbranded Inverter industry in India is estimated to have a power electronics content of $60 Million, and more than 80% is sourced from China/Taiwan presently. Cost pressures are at the root of this trend and manufacturers tend to become traders in this high volume business segment. Unless significant policy changes happen to encourage access to low cost components for the local manufacturing industry, the trading opportunity will remain attractive.

OBJECTIVE To utilize the experiences gathered during the internship To conduct a proper marketing survey for the future growth of the company To present my observation and suggestions regrading my marketing survey and learning during the summer internship .

BACK GROUND OF THE ORGANIZATION:

One name has been consistently redefining excellence in the field of Power Electronics and that is "SERVOTECH". Incorporated in the year 1994, we have rapidly attained a position of one of the leading manufacturers, exporters, and suppliers of world class power electronics and other customised solutions in the field. We offer world class quality UPS, Sine Wave Inverters, Servo/Static Stabilizers and V.F.D. (Variable Frequency Drivers) of various capacities up to 500KVA. Along with these, we also have specialization in trading in LED (Light Emitting Diode) Products. All our products are designed and developed by following best manufacturing practices. Also, as an ISO 9001: 2008 certified company we take strict control on quality and reliability of our range. We have a dedicated work force and a state of art facilities, which helped us to achieve the leadership position. It is only with the support of our team and their coordination skills that we built long lasting partnership with renowned clients. Based on all above credentials, we confidently guarantee our customers with good results, each and every time they get associated with us. Patronised by over 1 million users and more than 200 retail outlets network spread all over the country, we are reckoned as one of the most preferred choice of customers in the present competitive marketing .

Business Perspective: We are surging ahead on the path of an uninterrupted success and growth by taking a wide-angle view of things and envisioning even the minutes details in terms of product development and client servicing. We have created wide markets for our products confidently and are looking forward to achieve the leadership position in the worldwide arena. What SERVOTECH is today can be traced back to a determination to excel under any the workforce of SERVOTECH has always believed in I know what I am doing" culture. Circumstances. Taking a wide-angle view of things, envisioning and creating markets confidently we are surging ahead on the path to a golden future. Looking beyond the obvious has helped us to achieve the leadership position and building a partnership with clients.. The company's state of the art manufacturing facilities at Parwanoo (H. P.) & Delhi are well equipped to offer next generation power solutions. All process are precisely defined and controlled so as to maintain high level of quality as per ISO standards.

CORE BENEFITS & FEATURES OF THE COMPANY: Servotech quality has been acknowledged resulting in a client base that consists of 2005: Digital & Sine Wave HOME UPS for Domestic applications customers in Retail, Power, Telecom, Software, Banking Sector like Software & E-Business Sector Private Sector Companies, Public Sector Companies, Telecom & Banking Sector, MNCs & Hotels, Schools, Institutes & Hospitals, Retail Sector, Ministry and Police Department and many more. 2006: Sine Wave Inverters & UPS up to 120KVA Servotech was nominated by IMRB for EFY Award 2004 in Inverter Category. Leverage technology for process efficiencies, and see your business prosper. Keeping a tab on the winds of change and adjusting our sails according to it, we at Servotech make sure that what we offer is truly world class. To achieve quality, you have to be naturally attuned to its vibrations. You have to move mountains to acquire it. No sleep, no limits, no pause, The R & D cell of Servotech always goes an extra mile to produce the latest. And, the factories work continuously to meet the ever increasing demand. After Sales Service Support: Technical help desk Highly skilled service technicians 24 hours service available in India and abroad.

Products Offer: We manufacture, export and supply the most qualitative range of Power Electronics Products including the following: 1} Inverter: Square wave Inverter, Sine wave Inverter, Heavy Duty Industrial Inverter, Telecom Inverter, Hot Standby (1+1) Inverter, Online UPS: 1-IN, 1-OUT Online UPS, 3-IN, 1-OUT Online UPS, 3-IN, 3-OUT Online UPS, PFC Series Online UPS Batteries: Lead Acid Batteries, Tubular Ubular Batteries, Sealed Maintenance Free Batteries Stabilizer: Servo Stabilizer, Static Voltage Regulator 2) Our Speciality Product: LED (Light Emitting Diode) What is LED ? Light Emitting Diode is a semiconductor device which converts electricity into light. LED Products: 1. L.E.D Based Street Lighting System 2. L.E.D Based Indoor Lighting System 3. L.E.D Based Flood Lighting System

4. L.E.D Based Tunnel Lighting System

Era Sine Series HOME UPS

Corona Sine Series Inverters

KS-Efficient Series Online UPS BATTERIES

Goodfit Series Tubular

DEPARTMENT OF SERVOTECH HR MARKETING FINANCE SALES

Administration and Human Resource: As the name implies, this department has two major divisions. The Administration division is responsible for, Legal and Protocol & Government affairs; the Purchase & General Maintenances is responsible for Purchase & Support and Estate & Properties, Maintenance & general security. The Human Resource department is responsible for procuring future employees according. This department is also responsible for maintaining the database of all employees, leaves, attendance, health care and related fields of employees.

Marketing: Servotech marketing team is working nicely. Marketing department has two sub departments. These are. 1) Product Development: 2) Branding Product Development: This department is responsible for find out the innovative features that can attract the an potential customers. Product development is one of the key departments in the company. While developing new product this department has to keep in mind the profit and cost issue. Under all these constraints the department has been producing exciting and new features which ultimately attract customers. Branding: The brand department of the company deals with picture of the brand to the customers. It basically helps the brand to portray its intentioned image to the potential target group. This department along with the Marketing Communication department deals with the promotional activities. Sales Department: Servotech sales team has 2 sub departments. These are..
1. Direct Sales 2. Corporate Sales

Direct sales: Direct sales team handles the home users and Small & Medium Industries. They try to make the product available to the corporate and single or home users. In Delhi city there is more than 30,000 SMI. So Servotech targeted those SME and the direct sales team works with those organisations. Corporate Sales: Corporate Sales team works with the corporate clients. Some renowned Industries are our corporate clients. They are.

Government Steel Industries. Finance Department: This department is responsible for funds collected from sales of product are used and controlled for the maximum benefit of the company Pricing Strategy: Pricing play an important role in every company because they earn their revenue only from the charges they take from their client or customers. As it is a crucial thing the company should plan their pricing in proper way because if their charges are high the customer can move in the other peers company but if they charge low price company may suffer loss so they should take proper step before implementing their price structure. For implementing their pricing strategy the company should analyse the competitor price and they should also look customer perspective. Different pricing strategies followed by Servotech are Value Based pricing: Servotech is following value based pricing. They focus on the purchasing power of their customers while deciding the price range. However they evaluate the price according to the requirement of the industry and provided by them within that range and fix the price for every segment. Product line pricing: Product line pricing is different price for different range, or different service offered, they are charging according to the load capacity of the company. If the load capacity is high company charge a high price.

Currently for promotion and popularity they are offering free installation for every connection they provide. SALES STRATEGY OF SERVOTECH: Servotech has exceptional expertise in the design, Innovative product and delivery of product in emerging markets. Identify emerging market opportunities: Servotech selection criteria is based around sound business planning principles which identify markets based on a number of key success defining factors such as population (and urban density), number of Industries, duration of power cut etc. Leverage Technology: Leverage technology for process efficiencies, and see your business prosper. Keeping a tab on the winds of change and adjusting our sails according to it, at Servotech make sure that what we offer is truly world class. Innovative Product: To achieve quality, you have to be naturally attuned to its vibrations. You have to move mountains to acquire it. No sleep, no limits, no pause, The R & D cell of Servotech always goes an extra mile to produce the latest. And, the factories work continuously to meet the ever increasing demand and always come up with new innovative product. Deliver affordable and reliable product: Use economies of scale and superior technology to achieve a customer proposition of affordable and reliable product.

SWOT ANALYSIS Strength: Low Pricing Market Growth Innovative Range of products Weakness: Low awareness due non aggressive promotional strategies. No branches in the other metropolitan city. Opportunity: More coverage in different cities Company is totally depending upon Corporate clients but also they should focus on direct sales. Lot of opportunity in the B to B ( Business to Business selling process) Threat: Competitor New Entries

COMPETITORS OF SERVOTECH POWER SYSTEM:

SURVEY METHODOLOGY : I have worked under the Sales & Marketing division for past two months. During this period I had been assigned to work is to create brand awareness, identify the requirement of the industries regarding power back-up system and energy efficient lighting product of Servotech among the industries in West Bengal belt. For this reason I have visited more than 130 companies in this belt. Snap shot of my job responsibilities.. 1. Maintain a data base. 2. Fix an appointment 3. Daily visit report Servotech arrange an extensive training session for us. This was really effective for me because my product knowledge was poor when I get joined in Servotech. After getting the proper training I became more confident. Maintain database: With the company guidance i have maintain a proper database. I have followed the instruction of my company mentor and start maintaining a database where I had different organizations phone number as well as the top level management contact details. I have made this database by visiting the industry. Fix an appointment: With the help of company list in the various website i take the phone number and try to fix a proper appointment. By the help of appointment I have got chance to describe my product and show them the demo of our product. I always tried to make my meeting effective and done a proper marketing survey about the prospect of the company product in the market .Also ask some important question like if they satisfied with the current product if not i will ask them will they use our product in near future. Daily visit report: Back at home, I had to make a report on the specific client and their requirements. It was mandatory to send a regular visit report to my company mentor. Visit report contains customer name, address, contact number, e-mail address, whether he is interested or not, if not then what is the reason and so on. Then as per my report company will call the clients try to find out if there any requirements in near future. My company mentor advised me to every situation to done a proper marketing survey in the industries.

FORMATE OF DAILY REPORT:

Serial NO

Date 0f visit

Start time

Name of the Industry/company &address

Name of the contact person & number

Remarks

26/6/2012

10.00am HCL Technologies Ltd. Sector V, Bidhannagar Kolkata 700 091

MR. DIPANKAR (Marketing Manager) (91)(33) 23573024/25/3209/3210 dipankars@kol.hcltech.com

They use: UPS- APC & FRONTEC H CFLPHILIPS & HAVELLS But they are interested on our LED

Serial NO

Date 0f visit

Start time

Name of the Industry/company &address

Name of the contact person & number

Remarks

30/6/2012

1.00 PM Wipro Limited. Plot No. 1, 7 & 8, Block-DM Sector-V, Salt Lake City Kolkata 700 091

JYOTIRMOY BHATTACHARYA (91)(33) 2367-3424-27 jyotirmoy.Bhattacharya@wipr o.com

They use: UPS- APC & EMIRSON CFLPHILIPS But they are interested on our ON LINE UPS

FINDINGS:

Servotech is the emerging company and trying to cop up with the top competitor in the market. The company is trying to grab the power backup market in West Bengal . The most important is Servotech has several state-of-the-art production facilities, systematically planned and built to modern construction standards. The plants are equipped with sophisticated and proper assembly lines and are backed by completely integrated in-house component manufacturing facilities and R&D Centres. All Servotech products have invariably received very good response from the market, as it creates products which eventually enhance the quality of life for its users, while giving them real value for money. The power backup market in India is lucrative and fast growing primarily due to chronic power shortage. The market comprises of generators or gensets, and batter-based devices like inverters and Uninterrupted Power Supply (UPS). The report covers all three segments. An overview gives an introduction to the market with estimated size, and description of market segments based on product and end-user base. Analysis of generator segment suggests that stationary generators, which are largely used in industrial and large commercial locations, are driving generator sales. In UPS segment the sub-5 KVA segment is the largest due to its popularity in SME and SOHO setups. Father, India is fast becoming an export hub for generators and inverters with high growth rates since 2004. Increasing power deficit, demand from telecom operators and an expanding desktop user base indicates strong growth prospects for this industry. Industry faces challenges from increasing cost of raw materials like battery and packaging materials, competition from the unorganized sector and lack of consumer awareness. The competitive landscape distinguishes the share of organized and unorganized sector in each product segment, identifies the major players in the market and market shares. The other important point about Servotech is company being committed to the customer. The company is value his client trust and try to exceed their expectation.

RECOMMENDATION: After going through the above project work and visiting the numerous company i found that Servotech is trying to grab all the opportunities in power backup Market. But after doing the marketing survey i try to draw attention of the following points. Servotech should create more products with new features: To compete the other power backup companies, like SU-KAM, EMIRSION, APC has more product variation than Servotech. More product variation helps a company to be unique. Even it creates threats to competitors if they try to challenge the company. So, servotech should come out the products which have new features to attract the consumer. Brand Image: Brand Image plays an important role for the consumer so company should increase their awareness in the market so that it attracts the consumers. After visiting the industries I found out that company always prefer the product which has the proper brand image in the market. Branches in all cities: Servotech office is only situated in DELHI; they should open their branches in other cities for easy supply of product to the customer. Deliver affordable and reliable product: The product should be affordable and reliable because West Bengal people are more price sensitive if the product price is high they shift to other company which provide the product with affordable price. Servotech should come up with proper promotional strategies for their product: Today advertisement is the easy medium to reach the customer and promote the product. Servotech already promote their product through print media but they should come up with other promotional strategies like proper advertisement in the Television also they can use any celebrity as the brand ambassador. This will get an extra edge of their product in the market.

LEARNINGS:

The practical Study in PGDM IB program develops the feeling of awareness. It helps the management student to know about the difficulties and challenges of the business world. Only theoretical studies do not impart complete education. There must be practical study to add meaning of education .To fulfil this objective SIP has become an integral part of PGDM IB Program. What I experience from my summer internship is that summer internships offer the important opportunity to work closely with professionals in your field, and to develop knowledge, competencies, and experience related directly to your career goals. If managed correctly, internships will lead to new contacts, mentors, and references. With recommendations in hand from business relationships developed during a summer internship, securing a job becomes that much easier and its also helps you to sale your product easily. My focus in this two months is try to cooperate with the responsibility, was self motivated and got the job done, took initiative and tried to be proactive, did my best to stay focused, and most importantly, identified the value I personally tried to bring to the organization. What made the experience most exciting was to work with some of the best and brightest people in the industry and, to say the least, my internship at SERVOTECH went way above my expectations. Most importantly learning from the brightest people of the industry is enriching the experience of mine and help me to get proper direction of my future perspective.

BIBLIOGRAPHY:

www.servotechindia.com Philip Kotler (Marketing Management) Innovatech Switching Power India pvt .ltd WWW.scribed.com Indian power market (Market Research Report)