You are the newly-appointed

head of a Strategic Business Unit

(SBU). Setup, manage and report
the development of the SBU.
SUZLON
 Abhinav (29)
 Anand (15)
 Suresh (30)
 Mayuresh (31)
 Chandraneel (38)
 Prateek(36)
 Who started Suzlon?
 - About Tulsi Tanti.


 Company profile

- 3rd largest leader in the turbine market in the w
 - Global operations.
 - Major clients.

 Suzlon milestones. By the end of 2008,
 - Supplied 6000MW throughout the world.
 - Registered 100% growth rate year on year.
 - Earned a global market share of 12.3%.


 Suzlon product range,

 - S52 600KW.
 - S64 1.25MW.
 - S66 1.25MW.
 - S82 1.5MW
 - S88 2.1MW
SWOT ANALYSIS
 SWOT ANALYSIS

STRENGTHS
 WEAKNESSES


 Government policies.  Heavy investment.

 Low labour cost.  Availability of land.
 Eco-friendly.  Uncertainty of wind.
 Carbon credits.

 One-time investment.

 Easy customer income.

 Affordable
maintenance cost
 SWOT ANALYSIS

OPPORTUNITIES
 THREATS


 Large market share  Acquiring of land from

untapped for wind inhabitants is
energy market. difficult.

 Heavy scarcity of  Competition from

power in India. other sources of
power generation.
 Rising income of
people.


TO POSITION


WIND POWER AS
ONE OF THE BEST
INVESTMENT
OPTIONS
The SI
250KW
windmill
BCG MATRIX
SI 250KW WINDMILL
 ABOUT THE PRODUCT.
 Cost of the product:Rs.1.4 crore.
 Annual power output: 4.5 lac units.
 Average power rate: Rs. 3.5 per unit.
(increases by 15 paise every year)
 Minimum setup time: 30 days.
 Life of the turbine: 20 years.
 Maintenance cost
 - First year free.
 - Second year Rs. 2lac and increases by
approx. 2.5% per year.

 ABOUT THE PRODUCT.

 Interest rate: 12%

 Means of finance.
 - Equity: 30%-Rs.50lac.
 - Loan @12%: 70%-Rs.90lac.
 Cumulative income after 20 years
 - With loan: Rs. 1.6 crores.
 - Without loan: Rs. 3.1 crores.
 PROJECTED REVENUE
TO INVESTORS
Particulars 1 2 3 4 5 6 7 8 9 10
Generation In KWH 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25

Energy Rate 3.50 3.65 3.80 3.95 4.10 4.25 4.40 4.55 4.70 4.85

Receipts 14.88 15.51 16.15 16.79 17.43 18.06 18.70 19.34 19.98 20.61

CDM Benefit 2.34 2.34 2.34 2.34 2.34 2.34 2.34 0.00 0.00 0.00

MEDA Refund 1.50 1.50 1.50 1.50 1.50

Total Receipt 18.71 19.35 19.99 20.63 21.26 20.40 21.04 19.34 19.98 20.61
Expenses

Interest On Term Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

O & M Expenses 0.00 2.00 2.05 2.10 2.15 2.21 2.26 2.32 2.38 2.44

Total Expenses 0.00 2.00 2.05 2.10 2.15 2.21 2.26 2.32 2.38 2.44
Profit Before Tax 18.71 17.35 17.94 18.52 19.11 18.19 18.77 17.02 17.60 18.18
Income Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Profit After Tax 18.71 17.35 17.94 18.52 19.11 18.19 18.77 17.02 17.60 18.18
Bank Loan instalment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cash Balance 18.71 17.35 17.94 18.52 19.11 18.19 18.77 17.02 17.6 18.18

Cumulative Cash Bal 18.71 36.06 54.00 72.52 91.63 109.82 128.60 145.62 163.22 181.39
MARKET RESEARCH
 OBJECTIVES
 To determine the number of firms who
require large quantity of power.


 To determine the number of HNIs.



 To determine the number of people who

have the ability and interest to invest
Rs. 2 lac.


 To determine the competitors in the wind

power generation segment.
 DATA COLLECTION

 How we have collected the data?

 Other Suzlon SBUs
 Use of technology.


 What data we have collected?

 HNIs.
 Questionnaires.

 DATA ANALYSIS

 As per our analysis, 100% of our respondents

responded positively to the first question
(Do you support the use of renewable
energy?)
 Which type of renewable energy do you
support?
 DATA ANALYSIS

 To what extent do you support wind

energy?
 DATA ANALYSIS

 Would you be interested in investing in

the Suzlon windmill?
 DATA ANALYSIS

 Would you be interested in investing

Rs.1-5lac in windmill project?
 STRATEGY
FORMULATION
 STRATEGY FORMULATION

 Advertise on Business news channels and

Business newspapers.
 Sponsoring and participating in big
exhibitions.
 Agents on commission basis.
 Dedicated sales department for personal
selling (especially for HNWIs).
 Tie-up with Financial institutions.
 SSI Scheme.

 PROGRAM
FORMULATION AND
IMPLEMENTATION
 SSI Scheme-investment
for middle class

 A department to handle investors in

this scheme.
 Minimum investment of Rs. 2 lac is
necessary.
 Same percentage return with a smaller
investment.
 First year return= Rs. 22500. 5%
increase in return for 20 years.



 PROGRAM FORMULATION
AND IMPLEMENTATION
 Select television channels and newspapers
for advertisements and calculate the
costs.
 Participation in POWER, ELECRAMA etc.
 Tie-up with investment consultants.
 For Rs. 1.4 crore investment,
 Diamond merchants
 Builders
 Exporters/Importers
 Professionals such as lawyers, doctors
 PROGRAM FORMULATION
AND IMPLEMENTATION
 We will also be targeting the following
companies with high power
requirements,
 Electric vehicles (Reva)
 Cold storage warehouses (K Maitri foods
and cold storage pvt. ltd)
 Chemical factories (Meen Been
Elastomers pvt. Ltd.)
 Use of software solutions.
 Warehouses to be built near the wind-farms
for quick availability of spare parts.
 Central warehouses at main cities which will
also stock turbines.
REPORTS
PROFIT CALCULATION (first
year)
 No. of HNIs (Net worth: Rs. 5 crore+) : 1.23
lac
 (source: Asia-Pacific Wealth Report,2008)
 5%=6000 people- first year.
 10% people purchase: 600.
 Sales: 600*1.4 crore=840 crores.
 Gross Profit: 0.3*600=180 crores.
 Total expenses: 160 crores.
 Net profit: Rs. 20 crores.
 EXPENSE
CALCULATION(first year)
 Advertising: Rs. 20 crores.


 Insurance: Rs. 5 crores.



 Factory expenses: Rs. 40 crores.



 Sales commission: Rs. 50 crores.



 Other expenses and taxes: Rs. 45 crores.

 REPORT FOR 5 YEARS

Sales - unit 634 700 843 1015 1245

Sales 888 980 1180 1421 1780

Total Sales 888 993 1207 1463 1829

Gross Profit 191 211 255 443 505

Net Profit 31 41 62 150 275

 REPORT FOR 5 YEARS

Power in Mwatt 222 245 295 355.25 445

 REPORT FOR 5 YEARS

# People Invested Money 2380 3500 5810 8050 10150

VALUE PROPOSITION
 VALUE PROPOSITION

 Power at Rs. 3.5/unit. Escalation at 15 paise

per year.
 Revenue from sale of carbon credit@
55paise per unit (present rate)
 High post tax IRR (Internal rate of return)
with tax incentives.
 Shorter pay-back period- 8 years. Life-20
years.
 Low operational and maintenance cost.
 Zero input fuel cost.
 VALUE PROPOSITION

INVESTME RETURN (in POST TAX RETURN AS

NT %) RETURN (in COMPARED
%) TO WIND
BANK FD 10 6.7 (in %)24.87

BSE 13.33 12 44.54

SENSEX
REAL 17 15.3 56.8
ESTATE
WIND 26.94 26.94 -
POWER
SUMMARY
 SUMMARY
 About Suzlon.
 Swot Analysis.
 Our Goal.
 The SI 250KW windmill- details.
 Market Research objectives.
 Data collection and analysis.
 Strategy formulation-The SSI scheme.
 Program implementation.
 Reports for 5 years.
 Value proposition.

ANY QUESTIONS?