CHAPTER I

INTRODUCTION

The term switchgear, used in association with the electric power system, or grid, refers to the

combination of electrical disconnects, fuses and/or circuit breakers used to isolate electrical

equipment. Switchgear is used both to de-energize equipment to allow work to be done and to

clear faults downstream. The very earliest central power stations used simple open knife

switches, mounted on insulating panels of marble or asbestos. Power levels and voltages rapidly

escalated, making open manually-operated switches too dangerous to use for anything other than

isolation of a de-energized circuit. Oil-filled equipment allowed arc energy to be contained and

safely controlled. By the early 20th century, a switchgear line-up would be a metal-enclosed

structure with electrically-operated switching elements, using oil circuit breakers. Today, oil-

filled equipment has largely been replaced by air-blast, vacuum, or SF6 equipment, allowing

large currents and power levels to be safely controlled by automatic equipment incorporating

digital controls, protection, metering and communications.

One of the basic functions of switchgear is protection, which is interruption of short-circuit and

overload fault currents while maintaining service to unaffected circuits. Switchgear also provides

isolation of circuits from power supplies. Switchgear is also used to enhance system availability

by allowing more than one source to feed a load.

1.1 OBJECTIVE OF TRAINING

The main objectives of training are as follows:

To gain practical experience and company knowledge

To know about the industrial profile of the company

To know about the switchgear industry, switchgear production, users etc

1

To know about the organization structure

To know about the various functions of the department

1.1 SCOPE OF STUDY

The scope of the study is limited in approach as it mainly based on factual aspects of the company

collected through visits to center of manufacturing unit and through primary instructions and secondary

data compiled from the official documents of the company. To open the new visit managerial skills, the

study of manufacturing unit will open up divergent thinking to add on to the thought process.

ABSTRACT:

The report entitled “Industrial Training Report Of Megawin Switchgear P-Ltd” is about the

overall functions exercised by MEGAWIN. They manufacture all the devices used for

switchgear manufacturing including the sub-components. They purchase various raw materials

that is needed for manufacturing from various suppliers. The purchase procedure starts at

Indenting by the department that requires the material and goes to the cost department and

finance department for required approval. In between various activities like Liquidated Damages

calculation, Spare Parts procurement, Guarantee in Liability Defect period etc are undertaken.

Once all the terms and conditions are formulated and approved, they purchase the raw materials.

They compete with their competitors by providing quality products and quick delivery to

customers. They are going to start a separate unit for erection commission. The performance of

the organization is evaluated.

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CHAPTER-2

INDUSTRY PROFILE

2.1 FEATURES OF SWITCHGEAR INDUSTRY

Around Rs. 3,000 crore (US $ 698 mn) market

Three types of product markets - HT circuit breakers, LT circuit breakers, Motor

controllers & Contactors

Switchgear are devices used to regulate transmission and distribution of power both at

the generation as well as consumption end

India produces the entire range of circuit breakers from bulk oil, minimum oil, air blast,

vacuum to SF6 circuit breakers

In the low tension category MCB, Air circuit breakers, switches, HRC fuses are

produced in different versions

Industry caters to the demand of the domestic market and is in the process of

establishing itself in overseas  markets

Over 30 players in the market

Small scale sector activity high in LT switchgear, motors, starters & contactors

USER SEGMENTS

State Electricity Boards, Industries major user segments

Panel board industry a major user of LT switchgear

Non electrical machinery another large user of LT switchgear

MAJOR PLAYERS

High tension circuit breakers - Bharat Heavy Electricals Ltd.(BHEL), Asea Brown

Boveri (ABB), Crompton Greaves, GEC Alsthom , Siemens, MEGAWIN.

3

TYPES

A piece of switchgear may be a simple open air isolator switch or it may be insulated by some

other substance. An effective although more costly form of switchgear is gas insulated

switchgear (GIS), where the conductors and contacts are insulated by pressurized sulfur

hexafluoride gas (SF6). Other common types are oil [or vacuum] insulated switchgear.

The combination of equipment within the switchgear enclosure allows them to interrupt fault

currents of many hundreds or thousands of amps. A circuit breaker (within a switchgear

enclosure) is the primary component that interrupts fault currents. The quenching of the arc

when the circuit breaker pulls apart the contacts open (disconnects the circuit) requires careful

design. Circuit breakers fall into these four types:

Oil circuit breakers rely upon vaporization of some of the oil to blast a jet of oil through

the arc.

Gas (SF6) circuit breakers sometimes stretch the arc using a magnetic field, and then rely

upon the dielectric strength of the SF6 to quench the stretched arc.

Vacuum circuit breakers have minimal arcing (as there is nothing to ionize other than the

contact material), so the arc quenches when it is stretched a very small amount (<2–

3 mm). Vacuum circuit breakers are frequently used in modern medium-voltage

switchgear to 35,000 volts.

Air circuit breakers may use compressed air (puff) to blow out the arc, or alternatively,

the contacts are rapidly swung into a small sealed chamber, the escaping of the displaced

air thus blowing out the arc.

Circuit breakers are usually able to terminate all current flow very quickly: typically between

30 ms and 150 ms depending upon the age and construction of the device.

Several different classifications of switchgear can be made[1]:

By the current rating.

By interrupting rating (maximum short circuit current that the device can safely

4

interrupt)

o Circuit breakers can open and close on fault currents

o Load-break/Load-make switches can switch normal system load currents

o Isolators may only be operated while the circuit is dead, or the load current is

very small.

By voltage class:

o Low voltage (less than 1,000 volts AC)

o Medium voltage (1,000–35,000 volts AC)

o High voltage (more than 35,000 volts AC)

By insulating medium:

o Air

o Gas (SF6 or mixtures)

o Oil

o Vacuum

By construction type:

o Indoor (further classified by IP (Ingress Protection) class or NEMA enclosure

type)

o Outdoor

o Industrial

o Utility

o Marine

o Draw-out elements (removable without many tools)

o Fixed elements (bolted fasteners)

o Live-front

o Dead-front

o Open

o Metal-enclosed

o Metal-clad

o Metal enclose & Metal clad

o Arc-resistant

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o By IEC degree of internal separation

By interrupting device:

o Fuses

o Air Blast Circuit Breaker

o Minimum Oil Circuit Breaker

o Oil Circuit Breaker

o Vacuum Circuit Breaker

o Gas (SF6) Circuit breaker

By operating method:

o Manually-operated

o Motor-operated

o Solenoid/stored energy operated

By type of current:

o Alternating current

o Direct current

By application:

o Transmission system

o Distribution.

MANUFACTURING PROCESS:

  

Manufacturing process accommodates the following production areas:

Fabrication Department

High speed laser profiling machines, Traumatic 180 CNC punching machines, CNC

press brakes/copper punching machines/copper bending machines; Mig welding sets

multiple (Argon gas); 3-ton 100ft span crane.

Coating Department

Electro-static powder coating plant with manual spray applicators for the application of

epoxy paint.

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Busbar Coating Plant

To ensure the most effective application of epoxy-resin insulation to up to 60 busbar

sections per hour, S&I has installed a purpose-designed coating plant. The plant can

accommodate materials with varying dielectric properties as required by MV and LV

switchgear busbars.

Electrical Sub-Assembly and Electrical Fitting

Computer-aided cable marking system (Raychem); Programmable controlled cable

stripping machine and looming facility. Computer controlled engraving machine

Test Department

High temperature soak test facility

Multiple simulation panels for functional testing

Primary and secondary injection test set

High voltage dielectric test facilities to 50kV

Ductor test set for joint resistance testing

2.2 INDUSTRY TRENDS

SWITCHGEAR & CONTROL GEAR

Switchgear refers to the combination of electrical disconnects, fuses and/or circuit

breakers used to isolate electrical equipment. Switchgear is used both to de-energise

equipment to allow work to be done and to clear faults downstream. Switchgear &

Control gear are indispensable not only in transmission and distribution of power, but

anywhere where there is a need to access and control electricity. The Indian Switchgear

Industry is manufacturing the entire range of circuit breaker from bulk oil, minimum oil,

air blast, vacuum to sulphur hexafluoride as per standard specification. Switchgear &

Control gear Industry in India is a fully developed and mature industry, producing and

supplying a wide variety of switchgear and control gear items needed by the industrial

7

and power sector. This industry sector in fact manufactures the entire voltage range from

240 V to 800 KV.

Secondary equipment such as relays used for various types of fault protection, also

known as control gear, have made significant advances due to major development in the

field of electronics. The digital relays are fast replacing the conventional relays due to

technology advancement, compact size & its reliability. As per recent trends in addition

to protection and control of power, monitoring and signaling are becoming integral part

of switchgears. With monitoring, the fault conditions can be predicted whereas signaling

helps to know the status of switch gears at various locations.

The production, import and export figures for the last 2 years are as follows:-

Year

Production

(non-SSI)

(Lakh nos.)

Exports

(Rs. Crore)

Imports

(Rs. Crore)

2007- 08 189 1,613 2,629

2008- 09 178 1,373@ 2,678@

2.3 MARKET SIZE:

India's vibrant economy needs matching improvements in the infrastructure. Power sector will

play important role in the economic development and hence need focused attention. But due to

global economic crisis India electrical equipment half yearly growth registered in 2008-09 is

down to 8.57 percent from 14.6 percent of the previous financial year (2007-08). However,

India posted a positive growth compared with global growth where the growth has been

negative a fall of 2.2 percent in 2008 compared to 2007.

India has taken number of legislative and policy initiatives to expedite power sector

development such as Rajiv Gandhi Gramin Vidyutikaran Yogna (RGGVY). All these initiatives

8

provide loads of investment opportunities to FIIs and other investors. The power sector reforms

if implemented as scheduled will create large business for power sector equipment

manufacturers and service providers. In India electrical sector export in the past 3 years (2004-

05 to 2007-08) has grown with much higher CAGR of 57.28 percent compared to 32.25 percent

for the period of 1995-96 to 2007-08. We can expect a continuous handsome growth for this

sector for at least next five years and it is expected to cross INR 400 Billion by 2013.

Due to financial crisis global electrical equipment market has fallen by 2.02 percent in

2008 compared to previous year 2007.

In 2008 Power Cables and Switchgear together controls 60 percent of the market share

in global electrical equipment market.

India electrical sector exports have grown with a 40 percent in 2007-08 to compared

previous year 2006-07.

Due to economic slowdown India electrical sector has shown a decline of 6.04

percentage points for the half-yearly 2008-09 compared to half-year 2007-08.

Despite India electrical sector negative growth Voltage transformers and Power

transformers has shown a growth of 28.6 and 25.7 percent respectively for the year

2008-09 compared to 2007-08.

2.4 BARRIERS TO ENTRY

“A barrier to entry is anything that prevents entry when entry is socially beneficial

”

Production of switchgears is complicated because of its various approval process

It should be approved by the all the electricity boards

It should undergo the qualification of test

It should obtain technical rights

It should be certified by CPRI (like ISO) Central Power Research Institute

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OTHER BARRIERS:

Advertising - Incumbent firms can seek to make it difficult for new competitors by

spending heavily on advertising that new firms would find more difficult to afford. This

is known as the market power theory of advertising. Here, established firms' use of

advertising creates a consumer perceived difference in its brand from other brands to a

degree that consumers see its brand as a slightly different products. Since the brand is

seen as a slightly different product, products from existing or potential competitors

cannot be perfectly substituted in place of the established

firm's brand. This makes it hard for new competitors to gain consumer acceptance.

Control of resources - If a single firm has control of a resource essential for a certain

industry, then other firms are unable to compete in the industry.

Cost advantages independent of scale - Proprietary technology, know-how, favorable

access to raw materials, favorable geographic locations, learning curve cost advantages.

Customer loyalty - Large incumbent firms may have existing customers loyal to

established products. The presence of established strong brands within a market can be a

barrier to entry in this case.

Distributor agreements - Exclusive agreements with key distributors or retailers can

make it difficult for other manufacturers to enter the industry.

Economy of scale - Large, experienced firms can generally produce goods at lower

costs than small, inexperienced firms. Cost advantages can sometimes be quickly

reversed by advances in technology. For example, the development of personal

computers has allowed small companies to make use of database and communications

technology which was once extremely expensive and only available to large

corporations.

Government regulations - It may make entry more difficult or impossible. In the

extreme case, a government may make competition illegal and establish a statutory

monopoly. Requirements for licenses and permits may raise the investment needed to

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enter a market, creating an effective barrier to entry.

Inelastic demand - One strategy to penetrate a market is to sell at a lower price than the

incumbents. This is ineffective with price-insensitive consumers.

Intellectual property - Potential entrant requires access to equally efficient production

technology as the combatant monopolist in order to freely enter a market. Patents give a

firm the legal right to stop other firms producing a product for a given period of time,

and so restrict entry into a market. Patents are intended to encourage invention and

technological progress by offering this financial incentive. Similarly, trademarks and

servicemarks may represent a kind of entry barrier for a particular product or service if

the market is dominated by one or a few well-known names.

Investment - That is especially in industries with economies of scale and/or natural

monopolies.

Network effect - When a good or service has a value that depends on the number of

existing customers, then competing players may have difficulties in entering a market

where an established company has already captured a significant user base.

Predatory pricing - The practice of a dominant firm selling at a loss to make

competition more difficult for new firms that cannot suffer such losses, as a large

dominant firm with large lines of credit or cash reserves can. It is illegal in most places;

however, it is difficult to prove.

Restrictive practices, such as air transport agreements that make it difficult for new

airlines to obtain landing slots at some airports.

Research and development - Some products, such as microprocessors, require a large

upfront investment in technology which will deter potential entrants.

Supplier agreements - Exclusive agreements with key links in the supply chain can

make it difficult for other manufacturers to enter an industry.

Sunk costs - Sunk costs cannot be recovered if a firm decides to leave a market. Sunk

costs therefore increase the risk and deter entry.

Vertical integration - A firm's coverage of more than one level of production, while

pursuing practices which favor its own operations at each level, is often cited as an entry

barrier

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FACTORS THAT MAKE THE INDUSTRY ATTRACTIVE:

Huge profit and technical collaboration with most of the industries.

Economic development

Job opportunities

Gain technical knowledge

Customer satisfaction

MAINLY ATTRACT THE FOLLOWING USERS:

Windmills

Spinning mills

Malls

Apartments

Mines

Water projects

Electricity boards

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CHAPTER 3

COMPANY PROFILE

Name of the Industry: MEGAWIN SWITCHGEAR PVT .LTD

Address : UNIT –I ( H.O & Registered Office)

PO Box No 434,

Perumalmalai Adivaram,

Alagapuram Post.

Salem : 636004

Ph No : 0427-2330288,2330498 Fax : 2330502

UNIT – II

2/18, 2/19

Perumalmalai Adivaram,

Alagapuram Post.

Salem : 636004

UNIT- III

SF.No.263/2, D.No.5/268-1

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Steel Plant Road, Jagir Ammapalayam,

Salem – 636302

Ph: 0427-6457395.

Name of the Promoters: (A.) Shri. S. Ganesan.

(B.) Smt. Jayanthy Ganesan

Share Ratio: (A.)- 90% (B.)- 10%

PROMOTERS’ DETAIL:

Shri. S.Ganesan, Managing Director:

Shri S. Ganesan is a B.E (Electricals) REC, Entrepreneur. Started his carrier by assisting his

farther who was then engaged in electrical good trading. Out of Interest and to diversify the

activities started a small fabrication/machine shop for manufacturing custom built LT/HT panels.

Based on the knowledge and the experience gained on customs built panels, he ventured into the

field of manufacture of high tension Switchgear. Simultaneously he gained marketing

knowledge. With innovative thinking and involvement in research and development in connected

Switchgear field, up gradation was possible. Diversification of connected products has been his

priority during the last two decades and today excels in switchgear industry not only in the field

of manufacture but, also towards penetrating the market , competing with the giants in the field

such as Siemens, ABB, Areva, Crompton besides BHEL. Traveled widely around the world

towards acquiring knowledge on further improvement of various products manufactured at

Megawin besides marketing related activities.

Smt. Jayanthi Ganesan, Director

Smt. Jayanthi Ganesan, is a MA., Post Graduate, managing the complete administration

especially in Purchase/Accounts besides HR.

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NOTE: The above mentioned persons are lifetime directors

3.1 BRIEF HISTORY

Megawin was started in the year 1992. Intially it was started as Panel builders and during the

year 1992-93 entered into Technical Collaboration with Enkom, Yugoslavia for manufacture of

HT Air Break Load Break Switches & Isolators. Over the years they developed indigenously

Vacuum Contractors, Vacuum Circuit Breakers, Current/Voltage Transformers, Cable Couplers,

Resin Cast Transformers Relays, Fuses, Auto Recloses etc.

BORN TO WIN:

The journey began in 1988. MEGAWIN Switchgear was born in the mind of a young

and daring first generation entrepreneur in Salem. It had a humble beginning with only

six people. Their greatest asset was fire in the belly and an inspiration to excel. By 1990,

with a modest infrastructure, the company ventured into a Technical Collaboration with

Enkom of Yugoslavia for Load break switches and Off load isolators up to 36 KV.

Initial forays were into mining sector which warranted a great degree of customization

and robustness. A direct spin off was the development of components such as CTs, PTs,

Vacuum Contractors, ATS, Soft Starters, etc.

WILL TO WIN:

MEGAWIN Switchgear – P-Limited has emerged as an integrated medium voltage

switchgear solution for utilities, industries and infrastructure sectors. Its products range

covers system voltages from 3.6 kV TO 36 kV and the growing patronage has resulted in

a CAGR of >30%. The population of installations are in excess of 15000, spread across

the length and breadth of the country.

GROWN TO WIN:

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1993 heralded the emergence of Megawin Switchgear as a manufacturer of VCB

Switchgear. In the subsequent years , the full range of medium voltage vacuum

switchgear was developed up to 36 kV systems. All the developments were

comprehensively tested at accredited test laboratories in the country. It tied up with

relays, through an operational joint venture, for marketing in India.

WINNOVATIONS:

Innovation has been the hallmark of MEGAWIN . the management focus and encouragement has

resulted in development of magnetically actuated VCBs, Capacitors,

INFRASTRUCTURE:

Megawin has adequate infrastructure at their works having three units at Salem located in large

area of their own with sufficient machineries and manpower. More than 450 workmen besides

160 qualified administrative/technical personnel are in their rolls and are fullygeared to meet the

increased demand.

FUTURE PLAN:

Towards a) development / manufacture of SF 6 Products such as Ring Main / Circuit Breakers.

b) HT Vacuum Interrupters c)EHV equipment

PAST PERFORMANCE:

Megawin has achieved the following turnover

YEAR 2003-04 2004-05 2005-06 2006-07 2007-08

TURNOVER

(in crores)16.80 37.59 77.85 105.36 116.36

PROFIT

(in crores)0.55 1.97 3.99 11.49 17.72

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STANDING IN MARKET:

There are more than thirty manufacturers and Megawin has come up in the ladder from 28 th

position to 5th as on 2007-08. Main competitors are as Siemens, ABB, Areva, Crompton &

BHEL. The turnover has increased several folds. It was Rs.0.21 lakhs during 1992-93 and today

it is Rs.150.00 crores.

MARKET INFRASTRUCTURE:

Besides Head Office/Registered Office located at Salem (Tamilnadu) full fledged branches at

Chennai, Hyderabad, Bangalore, Kochi, Mumbai/ Calcutta/New Delhi/ Pune / Nagpur etc. and

Authorized Representatives at all State Capitals.

PRODUCTS USAGE:

The products manufactured are generally used in Distribution / Protection of Electricity as

Control device to protect Transformers and Substations/Capacitors/Motors, etc. The products are

fully type tested at Government Recognized approved Laboratories such as Central Power

Research Institute at Bangalore and Bhopal besides IIT’s.

CUSTOMERS:

Almost all Electricity Boards, Public/Private Utilities, Mines, Big Industrial Houses, Multi Store

Buildings, Wind Mills, Water and Irrigation Projects, Steel/Cement/Chemical/Sugar and Textile

Industries/ IT Parks etc.

FUTURE OUTLOOK:

With Central/State Governments thrust on increased Power Generation, requirements/ Demand

and expected spurt in Industrial Growth, it is expected that the boom in the market for the

products manufactured by Megawin shall continue to grow upward in the years to come.

SAFETY MANAGEMENT:

The company has taken various safety initiatives to minimize the accident. These

initiatives have helped in creating a culture of safety in the plant and in improvement of

the safety parameters.

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ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:

The company has taken various adequate steps by educating its staffs, workers and others

the need to conserve energy.

ENVIRONMENT MANAGEMENT

This company has taken various safety initiatives to minimize the pollution through

monitoring and disposal of waste materials. During the year, the company has taken

extensive steps to improve greenery in the plant premises.

3.2 MEGAWIN’s VISION & MISSION

"A world class integrated SWITCHGEAR MANUFACTURER”

To realize this vision, MEGAWIN has drawn up a detailed Corporate Plan which represents

the company's collective optimism and enthusiasm, inspired by a glorious past, a vibrant

present and a brilliant future. The Plan has been prepared in-house in consultation the

committed, competent and confident members of the MEGAWIN family. The road map that

has been charted out was after a thorough scan of the strengths and weaknesses within the

organization as well as opportunities and threats in the environment.

MEGAWIN MISSION:-

“Develop and provide related products and services at competitive prices with innovative and

eco – friendly technologies and contribute to society"

MEGAWIN’s CORE VALUES:

Business ethics

Customer focus

Initiative & speed and Organizational pride

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3.3 FUNCTIONS OF MEGAWIN:

Their main function is distribution of power generation equipments & starters and

control and electrical lines.

Final product: Panel board/ switch board and porcelain clad, circuit breakers

Circuit breakers- the main function of circuit breakers is to get a single line and dividing

into multiple lines

Various sub-components are needed for the production of the final product such as

i) Vacuum interrupters

ii) Load break switch

iii) Insulators

iv) Transformers

v) Relays

vi) HT/HRC fuses

vii) Meters

All these sub-components are produced by them since they are needed more in number

except certain components like Insulators since they are needed less in number.

It has an individual fabrication unit where the sheet metals are fabricated, further it is

passed on the painting process and then assembling is done. Testing & packing is done

and later dispatched.

RAW MATERIALS

The raw materials are mainly purchased within India & sometimes from China

Sheet metal, rods. Channels

Copper bars

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Wires paint

Switches/ cables

Switchgear materials

Other ferrous and non-ferrous metals

3.4 PRODUCT PROFILE

COMPONENTS OF SWITCHGEAR

Switching and Interrupting Devices: used to turn the power on or off. Include circuit

breakers or disconnectors.

Control Devices: used to check and/or regulate the flow of power

Metering Devices: used to measure the flow of electric power

Protective Devices: used to protect power service from interruption, and to prevent or

limit damage to equipment

Indoor Switchgear: This product category includes all metal-clad/metal-enclosed

switchgear with circuit breakers (vacuum or SF6 circuit breakers) and vacuum contactors.

Outdoor Switchgear (kiosks): All metal-clad/metal-enclosed switchgear in a

weatherproof enclosure (kiosks) suitable for outdoor application.

Air Circuit Breaker: A circuit breaker with air as the arc-quenching medium.

Molded Case Circuit Breaker (MCCB): An MCCB is a circuit protection device whose

current-carrying parts, mechanisms, and trip devices are completely enclosed within a

molded case of insulating material.

Miniature Circuit Breaker (MCB): A small trip switch operated by an overload and used

to protect an electric circuit, especially a domestic circuit as an alternative to a fuse.

Residual Current Device (RCD): This protects against indirect contact electric shock. It is

designed to detect such a residual current (an earth leakage current), to compare it to a

reference value, and to open the protected circuit when it exceeds the reference value.

RCD is also known as earth leakage circuit breaker (ELCB) or residual current circuit

20

breaker (RCCB). The product definition also includes RCCB with over current protection

(RCBO).

VARIOUS PRODUCTS OF MEGAWIN:

CAPACITOR SWITCH WITH MAGNETIC ACTUATOR (indoor/ outdoor):

Salient features:

Very compact.

Fewer components

Fewer linkages & maintenance free.

Mechanical / electrical life more than 200000 operations.

Directly coupled linear motion

Fully type tested

Easy to install

Self – powered, RVT input

CAST RESIN TRANSFORMERS

Salient features

Highly compact

Devoid of oil; fire hazard eliminated

Finds excellent application in high rise buildings

Safe, self extinguished

High impulse and high short circuit strength

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Applications

Theatres

Residential buildings

Hospitals

Commercial complex

Air ports

Mines

Design features:

H.V & L.V windings are made up of electrolytic copper conductors covered with

inorganic thermally upgraded insulating material(nomex) which can withstand temperature up to

220 C and which has good mechanical strength.

PORCELAIN CLAD OUTDOOR VCB TYPE MSP 12/36:

Salient features:

Simple in construction and easy to operate

Factory assembled porcelain pole part and operating mechanism so that no site

adjustment is required and reduction in erection time

Fully type tested as per IEC-62271-100/ IS-13118.

Restrike free, suitable foe capacitor switch application

Suitable for rapid auto- reclosing duty

Negligible maintenance

Very high reliability

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TRIP CIRCUIT SUPERVISION RELAYS-MVAX

Salient features

They ensure positive action without chatter

Provide choice of pre-closing and after supervision

Robust and designed for trouble free operation

CICULATING CURRENT RELAY-MCAG 14

Features

Compact design

Dust proof enclosure

High stability on external faults

Trouble free and strong construction

Application

Protection for AC machines, reactors, auto transformers and bus bars

Earth fault protection of generators and transformers

3.5 FUNCTIONS OF VARIOUS DEPARTMENTS

MARKETING FUNCTION:

They mainly market the products through liaison agents and dealers. They conduct

meeting once in two months in order to promote their marketing functions.

They discuss about the sales of their products and their targeted customers. They do

across the table presentations, conduct seminars in order to promote their product.

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Their main competitors are Areva, Siemens, ABB, Crompton & BHEL. They

compete with them by cutting down the margins, by providing quality products and

ensuring prompt delivery.

Areva, Siemens, and other major competitors are large scale industries and they

serve worldwide and not dependent on the government

They have extended to provided their services to textile units also through reference

contractors.

They have taken contracts from Salem Steel Plant, L & T (Larsen & Toubro),

NTPC.

They participate in ELECRAMA FAIR conducted once in two years. Their major

customers are almost all Electricity Boards, Public/Private Utilities, Mines, Big

industrial houses, Windmills, etc.

Their turnover has increased drastically. It was Rs.0.21 lakhs during 1992 – 93 and

today it is Rs.150.00 Crores.

Their main customers are all state governments.80% of their products are sold to the

government on tender basis.

The remaining 20% of their products are sold to the private clients.

About 60% of switchgears is contributed by first 4 clients (Siemens, Areva, ABB,

Crompton).

10- 15% is contributed by MEGAWIN

10% is contributed by BHEL

Remaining is contributed the other 25% producers of switchgears.

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MARKET ANALYSIS – An Overview

Whether you are starting a new business or launching a new product, conducting a marketing

analysis is the first step in determining if there is a need or audience for your idea. Knowing the

market's needs and how it is currently serviced provides you with key information that is

essential in developing your product/service and marketing plan. Too often, businesses spend

thousands of dollars launching a "new" idea with a limited market because of competition. The

owner is forced to reevaluate his strategy and determine if there is room for another player.

Although the quality of the product is critical, your development of the best product on the

market will not necessarily correlate with the most sales. Up to 50 percent of a product's price

can be for marketing. The company who wins the marketing game generally will capture the

larger share of the market. Conducting a market analysis will help to:

Prepare to enter a new market

Launch a new product/service

Start a new business

MARKET OVERVIEW

Government Funding and Power Capacity Additions Open the Doors for Switchgear Manufacturers  

To meet the objective of "power for all" in India by 2012, an estimated additional power capacity

of 100,000 MW is required, which would mean that the efforts of the past fifty years have to be

replicated in another ten years. As the Indian power sector strives hard to plug the huge demand-

supply gap caused by rapid economic growth, new opportunities are presenting themselves for

switchgear manufacturers. For instance, the poor financial health of the State Electricity Boards

(SEBs) due to huge transmission and distribution (T&D) losses - around 28 percent to 35 percent

of the generation capacity - has prompted the Government of India to come out with various

policies such as ARDRP.

"The APDRP scheme provides funding under two components - incentive and investment, and

many SEBs have evinced interest in the scheme, engaging private sector participants to renovate,

25

modernize, restructure, and upgrade the T&D infrastructure," says the analyst of this research

service. "This has not only paved the path for private sector participation in the state-owned

utilities, but also generated interest among the participants to drive home this advantage." Thus,

higher energy requirements coupled with the shift of focus from generation to T&D, hence,

reduction of T&D losses, are likely to drive the switchgear market.

PROCUREMENT FUNCTIONS:

Every firm, be it a manufacturing concern or a trading concern has to buy something either to

trade it as it is or add some value to it. In both the cases the firm is buying and selling the

goods or services generated. The value generated between two points in the value chain is the

profit generated by that particular chain partner. These values being terms of place, time,

quantity of form etc. In the case of MEGAWIN, MEGAWIN buys sheet metal, wires, copper

bars and other capital goods and converts it into panel boards, load breakers, etc. Since the

raw material is changing form during the value addition process hence MEGAWIN is a

manufacturing firm. For every manufacturing concern, the raw material is the cost center

after the initial expenditure relating to the capital goods. It is also the most important factor

affecting the quality of the product and in case of MEGAWIN the performance. A low-grade

sheet metal may not only reduce the efficiency of the plant but may also make it malfunction

or might even lead to a sudden breakdown. Hence the plant but may make it malfunction or

might even lead to a sudden breakdown. Hence the right quality of ferrous & non-ferrous

metal is not only desired but is required.

Similarly the plants and equipment required to produce the finished product is also to be

procured and hence one more purchasing comes into picture. Once the plant is erected and

commissioned, during its normal operations the plant may require some spare parts as well as

some replacement and maintenance parts. Hence for that also the firm has to maintain a

constant supply. So for all this purchase system is another big question. To get an appropriate

purchase system structure we must identify the actual requirement MEGAWIN has some

plants as old as ten years old, which are using a very aged or aging technology; on the other

hand some of its requirement for these two plants will obviously be different

26

The purchasing procedures at MEGAWIN should be such that it can take care of such

extreme differences and provide both the locations with the required material at the right

time. If MEGAWIN procure all the material through a centralized purchasing division which

will club all the requirements of various projects together and order on the basis of his

clubbed requirement, of various projects together and order on the basis of the clubbed

requirement, then MEGAWIN can achieve economies of scale as the quantity bought will be

significantly high .

Procurement Steps:

Procurement life cycle in modern business usually consists of the following steps:

1. Information Gathering: If the potential customer does not already have an established

relationship with sales/ marketing functions of suppliers of needed products and services (P/S), it

is necessary to search for suppliers who can satisfy the requirements.

2. Background Review: References for product/service quality are consulted, and any

requirements for follow-up services including installation, maintenance, and warranty are

investigated. Samples of the P/S being considered may be examined, or trials undertaken.

3. Negotiation: Negotiations are undertaken, and price, availability, and

customization possibilities are established. Delivery schedules are negotiated, and a contract to

acquire the P/S is completed.

4. Fulfillment: Supplier preparation, shipment, delivery, and payment for the P/S are completed,

based on contract terms. Installation and training may also be included.

PRODUCTION FUNCTION:

Megawin Switchgear, established in 1987 having its manufacturing works located in the steel

city of Salem in southern part of India. They offer a wide range of medium voltage electrical

substation products, completely designed, developed and type tested in accordance to relevant

standards at CPRI and other independent recognized testing stations. The products are

dependable & reliable with specific emphasis to the client needs. They have their presence in the

domestic & international markets and it is our constant endeavor to offer quality products .

27

They follow the IS (INDIAN STANDARDS) & IEC in the manufacturing process.

They have different quality control department for each of their products.

The workers would mostly find the defaulted products (components) while installing.

Later on the supervisor takes in charge for the products to go under various testing

process.

They mostly produce indoor components, very few outdoor components produced as it

would lead to the expansion of the units. The main advantage is that the sub

components are produced by themselves and they are not dependent on the third

parties.

About 80% - 85% they are not dependent on outsiders. 15% -20% they buy few

components from outside, since they are needed less in number. Such components

cannot be produced by them as the cost incurred in the production is heavy.

INFRASTRUCTURE:

 They have a robost infrastructure in place. Most of their components used in their

finished products are made of steel, copper, aluminium or epoxy raw materials which

are ultimately machined in-house. There are several machines installed for sheet metal

bending, shearing, punching, drilling and so on. Jigs & Fixtures are made in-house for

assembly.

Other facilities include autoclave for curing of epoxy components. Sand Blasting & 7-

tank process for sheet metal processing. Powder coating plant using epoxy paint for

painting the panels both interior and exterior.

The in process inspection is carried out in accordance to the quality assurance plan.

The testing facility covers oscilloscope for analyzing the breaker parameters like

opening/closing speed, opening/closing time, contact/mechanism over travel, High

Voltage Test Kit, Milli volt drop test kit, tongue tester, avometer, digital vernier, no go

gauges, micrometer, 2kV tester for control circuit test. P.D measurement kit, CT /PT

testing kits, Fuse & Relay testing kits.

URE drafted with the help of cutting edge technologies.

28

Megawin has a team of trained engineers/technicians who have hands on experience

and knowledge in meeting the service needs.

QUALITY POLICY/PROCESSES

Reliability of your equipment is our Obligation.The products undergo stringent in

process quality check as well as final inspection. Every product manufactured is routine

tested after assembly to the relevant standards.

Propagating quality management systems by way of formulating implementing and

monitoring the improvement plans with total focus on the internal as well as the

external customer satisfaction. It is also responsibility of the task force to bring about

the investigation and preventive action on critical quality issues and report the same to

the top management and take necessary corrective action.

 

29

MANUFACTURING PROCESS

STAGE -1

30

PCVB BOX  & HORIZONTAL  MECHANICAL  BOX  RECEIVED  FROM FABRICATION 

QC CHECK

ACCEPTED

RETURNED TO 

FABRICATION

QC CHECK

REJECTED

REJECTED

ACCEPTED

QC CHECK

ACCEPTED

REJECTED

ASSEMBLY SECTION

PHOSPHATING (7 TANK PROCESS)

POWDER

COATING

RETURNED TO 7-

TANK PROCESS

RETURN POWDER

COATING

STAGE-2

31

CORK SHEET FIXING

IN PCVCB BOX TOP

HORIZONTAL MECH. FIXING

TOP ON BOX

VCB ASSY. RECEIVED FROM

VCB ASSEMBLY

VCB  ASSEMBLY  QC . CHECK

ACCEPTED

MAIN SHAFT ASSEMBLY FIXING IN HORIZONTAL  MECHANICAL BOX

TOP TRAY FIXING IN

HORIZONTAL  MECH. ASSY.

REJECTEDRETURN TO VCB

ASSEMBLY

STAGE -3

32

POLE PART  COMPONENTS  RECEIVED FROM STORES

QC CHECK  OF  ALL COMPONENTS

ACCEPTED

RETURNED TO 

SUPPLIERS

QC CHECK

REJECTED

REJECTED

ACCEPTED

MANUAL OPERATIONAL

CHECK 50 OPERATIONS

ACCEPTED

REJECTED

WIRING BOARD FIXING

POLE ASSEMBLY

NITROGEN  GAS  FILLING

RETURNED TO 

SUPPLIERS

ALIGNMENT 

CHECK

WIRING

POLE  FIXING ON THE HOR. MECH. ASSEMBLY

STAGE -4

33

ELECTRICAL OPERATION

CHECK

ACCEPTED

HIGH VOLTAGE, CONTACT RESISTANCE, TIMINGS AND

OTHER CHECKS

REJECTIONWIRING CHECK

HOR. MECH,COVERS,DOORS & GRAND PLATE FIXING

PACKING & DESPATCH

HUMAN RESOURCE

Human resources is a term used to describe the individuals who comprise the workforce of an

organization, although it is also applied in labor economics to, for example, business sectors or

even whole nations. Human resources is also the name of the function within an organization

charged with the overall responsibility for implementing strategies and policies relating to the

management of individuals (i.e. the human resources). This function title is often abbreviated to

the initials 'HR'.

Human resources is a relatively modern management term, coined in the 1960s. The origins of

the function arose in organizations that introduced 'welfare management' practices and also in

those that adopted the principles of 'scientific management'. From these terms emerged a largely

administrative management activity, co-coordinating a range of worker related processes and

becoming known, in time as the 'personnel function'. Human resources progressively became the

more usual name for this function, in the first instance in the United States as well as

multinational corporations, reflecting the adoption of a more quantitative as well as strategic

approach to workforce management, demanded by corporate management and the greater

competitiveness for limited and highly skilled workers.

MEGAWIN’S EMPLOYEES:

MEGAWIN recognizes that the success of its operations is dependent to a large extent on the

commitment and support of its workforce. Employment decisions are made with no reference to

religion, caste, sex or any non-job related handicap. Terms and conditions of employment are

competitive.Employees display the highest level of ethics and integrity in every sphere of

activity and they abide by the rules and regulations of the organization.

Every employee is given an assignment that best suits the employee’s capabilities and is

sufficiently empowered to function at an optimal level. Adequate opportunities are provided to

the workforce to upgrade their skills. Every employee is entitled to equal consideration for any

open job opportunity within the Company and due importance is given to Succession Planning.

34

Innovation and well-reasoned risk taking are supported, but performance is always demanded.

Employees do not have rights or lien over any inventions that arise in the course of employment.

Suggestions from the workforce for the betterment of processes and practices are always

welcomed.Employees are expected to devote their full time attention to the business of the

Company and not take on any competing assignments either directly or indirectly without proper

authorizations.

Company property – equipment and intellectual property rights such as patents, trademarks,

copyrights, designs, strategies, plans, trade secrets and similar items that are not in the public

domain – should be used only in the course of and for Company business, with proper care and

safeguards.

Solicitation or acceptance of gifts is strictly forbidden except in cases where items are gifted with

no expectation of business or personal gain. The payment or receipt of bribes is prohibited.

They comply with all labor related legislations of the Central and the State Governments, and, in

particular, will neither employ nor advocate the employment of child labor or forced labor.

Employees are provided with a safe and healthy work environment.

RECRUITMENT & SELECTION:

Recruitment is Searching for, and obtaining, potential job candidates in sufficient

numbers and quality, and at the right cost, for the organisation to select the most

appropriate people to fill its jobs. (Kramar et al 1996)

Selection is the process of gathering information for the purposes of evaluating and

deciding who should be hired, under legal guidelines, for the short and long term interests

of the individual and the organisation.

They follow both internal & external recruitment. They mostly recruit the

employees through word of mouth and those with excellent technical skill.

They also recruit the persons through internet, private agencies and advertisement.

35

They select the persons through interviews based on their capabilities, knowledge

and skill .

DISCIPLINARY FUNCTION:

Wide range of procedures and steps in dealing with workplace conflict

Informal meetings

Formal meetings

Verbal warnings

Written warnings

Grievance procedures

Working with external agencies

TRAINING & DEVELOPMENT:

Provides new skills for the employee

Keeps the employee up to date with changes in the field

Aims to improve efficiency

Enables the employees to develop their skills and become more efficient.

BENEFITS TO EMPLOYEES:

The staffs of MEGAWIN are provided with various benefits which enables them

to work more effectively towards the success of the organization.

They are provided with leave salary.

Staffs who hail from places other than Salem are provided with free

accommodation.

Manager cadre persons are provided with cars .

No labor unions are formed in the company. All their grievances are handled

gently.

36

FINANCIAL MANAGEMENT:

Financial management can be defined as the management of flow of funds in a firm and it deals

with the financial decision-making of the firm. It is concerned with the overall managerial

decision making in general and with the overall management of economic resources in

particular.

FINANCIAL ANALYSIS

Financial analysis is separating facts according to some definite plan, arranging them in a group

according to certain circumstances, and then presenting them in a convenient and easily read and

understandable form. Moore & Jacdicke have defined financial analysis as “a process of

synthesis and summarization of financial and operative data with a view to getting an insight into

and interpretation of financial statements as a technique of X-raying financial position as well as

the progress of a company”.

ANALYSIS OF FINANCIAL STATEMENT:

Analysis of Financial Statement (AFS) refers to the process of the critical examination of the

financial information contained in the financial statement in order to understand and make

decisions regarding the operation of the firm. The AFS is basically a study of the relationship

among various financial facts and figures given in a set of financial statement. The complex

figures as given in these financial statements are broken into simple and valuables elements and

significant relationship are established between the elements of the same statement or different

financial statement. This process of dissection, establishing relationship and interpretation

thereof to understand the working and financial position of a firm is called the AFS. Thus, AFS

is the process of establishing and identifying the financial weaknesses and strength of the firm. It

is indicative of two aspects of a firm i.e. profitability and financial position of the firm.

37

OBJECTIVES OF THE ANALYSIS OF FINANCIAL STATEMENT:

The objective of AFS is to understand the information contained in financial statement with a

view to know the weaknesses and strength of the firm and to make a forecast about the future

prospects of the firm. The objective of AFS can be identified as:

i) To assess the present profitability and operating efficiency of the firm as a whole as well as for

its different departments.

ii) To find out the relative importance of different components of the financial position of the

firm.

iii) To identify the reasons for change in the profitability/financial position of the firm.

iv) To assess the short term as well as long term liquidity position of the firm. Procurement is the

acquisition of goods or services at the best possible total cost of ownership, in the right quantity

and quality, at the right time, in the right place for the direct benefit or use of the governments,

corporations, or individuals generally via, but not limited to a contract.

v) Simple procurement may involve nothing more than repeat purchasing. Complex procurement

could involve finding long-term partners - or even 'co-destiny' suppliers that might

fundamentally commit one organization to another. A key question in procurement is what to

buy, given a limited budget. If good data is available it is good practice to make use of economic

analysis methods such as cost-benefit analysis or cost-utility analysis.

ACCOUNTING POLICIES & NOTES ON FORMING PART OF ACCOUNTS:

ACCOUNTING POLICIES:

They accompanying financial statements are prepared on historical cost basis.

REVENUE RECOGNITION:

The company generally follows mercantile system of accounting and recognizes income

and expenditure on accrual basis.

Sales and services are accounted on accrual basis when the sale of goods or services is

completed.

38

Sales exclude sales tax, value added tax and excise duty.

FIXED ASSETS:

Fixed assets are stated at historical cost of acquisition net of cenvat credits, including

installation, direct attributable costs less accumulated depreciation.

DEPRECIATION:

Depreciation is provided on written down value method at the rates prescribed under

schedule XIV of the Companies Act,1956 on a prorate basis according tot the number of

days the assets are put to use.

Assets purchased during the year where the actual cost does not exceed Rs.5000 are

depreciated at the rate of 100% in the year of purchase.

INVESTMENTS:

Long term investments are stated at cost.

Provision for diminution in value of long term investments is made, if the diminution is

other than temporary.

DIVIDEND:

The directors have not recommended payment of dividend to the equity shareholders in

order to conserve funds for future expansion.

They decided to give dividend only after they achieve a turnover of Rs.250 crores .

FIXED DEPOSITS:

The Company has not accepted any deposit within the meaning of Section 58 A of the

Companies Act,1956 and the rules framed there under.

39

COMPARATIVE BALANCE SHEET

SOURCES OF FUNDS 31.03.2009 31.03.2008 31.03.2007 31.03.2006

Share Holders Funds

Capital

Reserves & surplus

50200000

279096988

50200000

194421127

50200000

80684373

50200000

6167876

Loan Fund

Secured fund

Unsecured fund

447498591

0

332682794

342629

239443447

4631428

154576542

97261

Deferred tax liability 312076 28927594 18695848 0

808003215 606574144 393655096 211041679

APPLICATION OF FUNDS

Fixed assets

Gross block

(-)depreciation

321037503

53889521

266998294

27359553

217794521

7681315

71894083

1114185

Net block 267147982 239638741 210113216 70779898

Investments 2500000 2500000 - -

Current assets, loans,advances

Inventories

Sundry drs.

Cash & bank balance

Loans & advances

221137698

289071955

74677231

144930702

99993199

287584269

72466621

158244174

32992734

259901483

40574586

61869025

73219759

225792777

23222810

35425791

(-) Current Liabilities &

Provisions

729817586

191545760

618288263

254019674

395337828

212046168

357661137

218502861

538271826 36426859 183291659 139758276

Miscellaneous expenditure 83407 166814 250221 333628

Deferred tax assets - - - 769877

808003215 606574144 393655096 211041679

40

CHAPTER-4

ANALYTICAL REFLECTONS

4.1 RATIO ANALYSIS

ABSOLUTE CURRENT RATIO:

Absolute liquidity is represented by cash and near cash items. Hence, in the computation of this

ratio, only the absolute current assets are compared with current liabilities.

CurrentAsset

Current Ratio = ----------------------------------

Current Liabilities

ABSOLUTE CURRENT RATIO

YEAR Absolute Current

Asset( Rs. In Crs)

Ratio Liability Absolute Current

Ratio

2006-2007 38.73 35.92 1.08

2007-2008 61.40 52.72 1.16

2008-2009 72.98 58.13 1.26

Table 1

41

INTERPRETATION:

The ratio in the year 2006-2007 the ratio was 1.08. But the next year 2007-2008 the ratio is

increased to 1.16. Finally the ratio also increases in the year 2008-2009 the ratio was 1.25.This

reflects a steady growth of this company.

ABSOLUTE CURRENT RATIO

2006-2007 2007-2008 2008-20090.95

1

1.05

1.1

1.15

1.2

1.25

1.3

Figure 1

WORKING CAPITAL TURNOVER RATIO:

This ratio indicates whether or not working capital which relates to current assests such as cash ,

bank, bills receivable, sundry debtors, inventories, marketable securities , prepaid expenses and

current liability namely bills payable, sundry creditors, bank overdraft, provision for

taxation,accrued expenses has been effectively used in making sales.

NetSales

Working Capital Ratio = ----------------------------------

Net Working Capital

42

WORKING CAPITAL TURNOVER RATIO

Year Net Sales Net Working Capital Working Capital

Turnover Ratio

2006-2007 105.36 2.81 37.49

2007-2008 115.25 8.69 13.28

2008-2009 90.95 14.85 6.12

Table 2

INTERPRETATION:

The above table indicates the working capital turnover ratio of the Megawin Switchgear Ltd in

the year 2006-2007 the ratio was 37.49. The year 2007-2008 the ratio was 13.28 and the year

2008-2009 the ratio was 6.12.

WORKING CAPITAL TURNOVER RATIO

2006-2007 2007-2008 2008-20090

5

10

15

20

25

30

35

40

Figure 2

43

TOTAL ASSET TURNOVER RATIO:

This ratio measures the overall performance and activity of the business organization .

Sales

Total Asset Turnover Ratio = -----------------------------

Total Assets

Total Assets Include:

Current asset (cash, bank, sundry debtors, bills receivables, prepaid expenses ) + Fixed asset

( plant & machinery ,buildings, furniture)

TOTAL ASSET TURNOVER RATIO

Year Sales Total Assets Total Assets Turnover

Ratio

2006-2007 105.36 60.56 1.74

2007-2008 115.25 86.06 1.34

2008-2009 90.95 99.95 0.91

Table 3

INTERPRETATION:

The total turnover ratio is one of the most important ratios. This results in the financial

performance of the company. If the ratio is high the company is performing good.

The above table indicates the Total Assets turnover ratio was 1.74 in the year of 2006-2007. But

the ratio decreased in the year 2007-2008 to 1.34. In the next year 2008-2009 the ratio was

further decreased to 0.91, due to the decrease of the sales when compared to previous year.

44

When the company ‘s total assets turnover is high the company’s financial position was

effective.

TOTAL ASSET TURNOVER RATIO

2006-2007 2007-2008 2008-20090

0.20.40.60.8

11.21.41.61.8

year

ratio

Figure 3

DEBTORS TURNOVER RATIO

Debtors normally include both debtors and bills receivable and represent the uncollected portion

of credit sales. Receivables constitute an important component of current assets and therefore the

quality of receivable to great extent determined the liquidity of the firm.

CreditSales

Debtors Turnover Ratio = -----------------------------

Average Debtors

45

Opening Debtors + Closing Debtors Average Debtors = ------------------------------------------------------ 2

DEBTORS TURNOVER RATIO

Year Credit Sales Avg.Debtors Debtors Turnover

Ratio

2006-2007 105.36 14.12 7.46

2007-2008 115.25 27.37 4.21

2008-2009 90.95 28.83 3.15

Table 4

INTERPRETATION:

The above table represent debtors turnover ratio of Megawin Switchgear Ltd. The ratio in the

year of 2006-2007 was 7.46. But the ratio decreased in the year of 2007-2008 to 4.21. Further the

ratio decreased to 3.15 in the year 2008-2009.

DEBTORS TURNOVER RATIO

2006-2007 2007-2008 2008-2009

0

1

2

3

4

5

6

7

8

Figure 4

46

FINANCIAL HIGHLIGHTS:

PARTICULARS 31.03.2009 31.03.2008

Gross Sales & Services 10150.57 13705.35

Less : Excise Duty 1054.93 2068.86

---------------------------------------------

Net Sales & Services 9095.64 11639.49

Other Income 231.93 281.88

9326.68 11918.37

Profit before Depreciation, interest & taxes 2087.44 2372.87

Less: Finance Charges 547.70 383.48

--------------------------------------------

Profit before Depreciation 1539.74 1989.39

Less: Depreciation & Miscellaneous Expenditure w/o 264.36 217.39

---------------------------------------------

1275.38 1772.00

Less: Provision for income-tax, FBT & Deferred Tax 439.78 627.95

--------------------------------------------

Profit after Tax 835.60 1144.05

Less : Prior Period Items 1.30 6.69

--------------------------------------------

Profit for the year 834.30 1137.36

47

INTERPRETATION:

The financial year 2008-2009 has witnessed a downward trend in Sales, Operating Profit and Net

Profit due to general global recession and other related factors. The directors hope to achieve

even further better results in future.

4.2 SWOT ANALYSIS :

The MEGAWIN Switchgear Industry - STRENGTHS

The Indian electrical equipment industry comprising of multinationals, large, medium and

small players is quite capable of producing, supplying and exporting a wide variety of

electrical equipment including switchgear and control gear items needed by the expanding

industrial and power sector.

India’s Switchgear industry is fully developed and mature.

This industry sector manufactures the entire voltage range from 240 V to 800 KV. The

technology level is Contemporary.

The major technological factors in the market are safety, maximization of efficiency and

reliability.

Quality of the switchgear gives a market edge for most of the suppliers. Dedicated

commitment to the overall quality of the switchgear, prompt after sales service and

support has been determined as a mandatory strategy for success.

The industry has tried to reduce the adverse impact of internal factors by cost cutting,

improving productivity and keeping up to date in new technologies.

The industry is competitive in the field of design and engineering, as the skill sets

available in the country are relatively less expensive.

Per capita consumption of energy being relatively low, the growth potential for this

industry in medium and long term is high.

The ‘Made in India’ brand is gaining more currency/trust in the global markets.

New Developments/Trends in the

Switchgear Industry

The domestic switchgear industry continues to innovate and upgrade its products to meet

the evolving/future needs of its customers with the following products/trends:

48

Low Voltage

Increased acceptance of electronic releases in circuit breakers

Embedded Intelligence and communication enabled

Improved materials for cost saving, environmental reasons and ROHS

Movement from motor starters to submersible pump controllers

Soft Starters Increased use of modular device in building electricals

Vacuum contactors for higher ratings

Medium Voltage

More use of magnetic actuators

Field for Life-Maintenance free (IEC- M2 duty -

10000 Operations)

Shift from Electromagnetic to Numerical relays

Shift from Electrical sensors- CT/PT to electronic

sensors.

Ring Main Units

High Voltage / Extra High Voltage

Compact GIS

Compact AIS

Compact switchgear

Controlled switching

Solid State switchgear

Intelligent switchgear

VCBs with higher ratings

WEAKNESS:

Switchgear industry has to majorly depend on the

financially weak EBs for its sales.

Uncertainty and slow pace of reforms

Increasing competition from unorganized sector

and imports

Macroeconomic challenges which constrain public

and private funding

49

Low investments in R&D,

Integration/Assimilation of new technologies

into development of new products in the sector

needs improvement

OPPURTUNITIES:

Generation capacity is expected to be argumented by around 78,577 MW under Eleventh

FiveYear Plan (2007-2012). More than 60,000 MW under construction.

The T & D network expansion

The Government is focusing on increasing the penetration of power supply in villages.

Schemes like APDRP and RGGVY are providing an excellent

opportunity for the LV and MV under, “Electricity for All” initiative

Expansion of key industry sector like cement,steel, petrochemicals, telecom and others

Expansion of Infrastructure like telecom, railways, airports, ports, roads, hospitals etc.

Replacement and retrofitting programmes

THREATS:

Some of the threats faced by the Indian Switchgear Industry are:

Underutilization of installed capacity

Lack of HV switchgear test facilities in the country

Increasing competition from unorganized sector in low end/low tech items/imports in

LV segment and project imports

One sided contracts by the user industries/ Price

Variation contracts not accepted by many users

Improper procurement planning/bunching of order

CHAPTER-5

OBSERVATIONS

50

From the study I observed that the company has the widest range of products in the HT

Switchgear segment (Indoor & Outdoor) ranging from 3.6 KV to 36KV Vacuum

Circuit Breakers, Load Break Switches, Vacuum Contractors , Off Load Isolators, Cast

Resin Transformers, HT HRC Fuses, Relays and allied products.

The switchgear products are manufactured as per IS/IEC standards as required by the

purchaser which ensures right from the quality checking or raw materials to

manufacturing process.

Aiming at consistent growth with simultaneous technical advancement to fulfill the

customer’s need time to time, they have set up a fully equipped research and

development center headed by well qualified experienced engineers.

The company believes in and scrupulously follows the trends of corporate governance

and complies with all applicable mandatory accounting standards laid down by ICAI

and ROC prescribed procedures.

More than half of the capital belongs to debt. So it may have chances of creditors

participating management decision. Therefore minimize the debt position in capital is

very much necessary

The company has achieved a turnover of Rs.116.36 crores, during the year ended 2007-

2008, as against the projected figure of Rs.120.00 crores. Considering the present market

scenario and the global slowdown, they are confident of achieving a turnover of Rs.100

crores for the year 2008-2009 and Rs.150.00 crores in the year 2009-2010. They expect

the trend to improving the coming years. Especially, they have taken approval from

NTPC who are going in the many Ultra Mega Power Projects, where there is a huge

requirement for HT Switchgear units being manufactured by them. Their products have

been approved and well accepted by almost all the Electricity Boards, Coal Mines, Water

Boards and leading Private Institutions like L&T, SPIC, Subash Projects,etc.

EXISTING SYSTEM

51

The company’s philosophy on corporate governance is delineated below:

Effectiveness measured by the quality of its leadership resulting in best

performance.

Accountability through openness, public disclosure & transparency of activities.

Conforming to high stands in financial policies, internal controls, constant

attention towards high quality of its products and continuous up gradation of skill.

Responsibility and responsiveness to stakeholders including shareholders,

investors, customers, employees, lenders and government agencies.

Sustaining a healthy and ever improving bottom line

Upholding the spirit of social responsibility

Create a management team with entrepreneurial and professional skills.

CHAPTER-6

CONCLUSION

Compared to other Switchgear Manufacturers, they have introduced a variety of new

products, indigenously developed in their manufacturing range like

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Cast resin dry type transformers / Unitised packages substations

Auto closures

Control and Relay Panels

Vacuum Interrupters

In view of development of modern residential complexes, the demand for package

substations with Cast resin dry type transformers will go up exponentially.

Most of the electricity boards are opting for automation at present and hence we expect

a reasonable increase in the requirement of Auto Reclosures.

With more and more substations on the anvil, they are also expecting a very good

business through the supply of Control and Relay Panels.

They have commenced the production of Vacuum interrupters from their 3rd Unit.

Presently these vacuum interrupters are manufactured only by 3 companies in India,viz

Bharat Electricals Ltd., Crompton Greaves Ltd. and ABB Ltd. They are the 4th

indigenous manufacturer to commence production of Vacuum Interrupters. This in-

house capability will not only help them in maximizing their profits, but also will give

them an edge over other competitors and will help them capturing more business

opportunities.

They have already achieved a sales of Rs.63 crores up to December 2008 and with a

pending order book of 55 crores, they are sure to achieve Rs.100 crores this year.

More than Rs.50 crores are pending finalization in the course of next three months from

customers like Rajasthan Electricity Board, Neyveli Lignite Corporation Limited ,

Maharashtra State Electricity Board, Madhya Pradesh Electricity Board, Jammu &

Kashmir Power Development Board, Kerala State Electricity Board ,etc,.

Apart from this , they expect major orders from their regular customers and also from

the forthcoming tenders. With this, they are confident of achieving a turnover of Rs.150

crores in the year ending 2010.

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A lot of people in the power sector and infrastructure are underway and huge volumes

of orders are expected from these sectors in the next few years. On the other hand, the

competition is also increasing, in lieu of the increased manufacturing infrastructure

created by major manufacturers.

The expansion of the firm is good and it has doubled its sales and profits in just

five years of time.

The sales have increased more than profit it shows that there is needed a proper

control over cost of goods sold.

It has taken approval from NTPC which has a huge requirement for HT

Switchgears.

Research is going on for its future products such as SF 6 Breakers.

It is going to construct an Erection commission as well as a new division is

going to be started in two years of time.

The overall performance of the concern is fine.

BIBLIOGRAPHY

http://www.megawinswitchgear.com

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http://www.switchgearindustries.com

megawin records

megawin manuals

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