6 WEEKS INDUSTRIAL TRAINING AT ABB LIMITED

Presented By:Tanpreet Kaur MBA-2A 94972238242

INTRODUCTION
ABB Group was founded

in 1988, after the merger of Swedish ASEA and Swiss BBC Brown Boveri ASEA was founded in 1883
BBC Brown Boveri was

founded in 1891

Headquarters: Zurich, Switzerland

More than 120,000 employees in more than 100 countries

PRESENCE AROUND THE GLOBE

Countries

ABB Executive Committee

Joseph Hogan President and Chief Executive Officer

Michel Demar Chief Financial Officer

Gary Steel Human Resources

Ulrich Spiesshofer Corporate Development

Diane de Saint Victor General Counsel

Bernhard Jucker Power Products

Peter Leupp Power Systems

Tom Sjkvist Automation Products

Veli-Matti Reinikkala Process Automation

Anders Jonsson Robotics

DIVISIONAL STRUCTURE AND PORTFOLIO

2007 revenues (US$) and employees per division

Power Products
$9.8 billion 32,000 employees
Transformers, highand medium-voltage switchgear, breakers, automation relays

Power Systems
$5.8 billion 14,000 employees
Substations, FACTS, HVDC Light, power plant and network automation

Automation Products
$8.6 billion 33,000 employees
Low-voltage products, drives, motors, power electronics, and instrumentation

Process Automation
$6.4 billion 26,000 employees
Control systems and application-specific automation solutions for process industries

Robotics
$1.4 billion 5,000 employees
Robots, peripheral devices and modular manufacturing solutions for industry

ABB TECHNOLOGY ALL AROUND US

orbiting the earth and working beneath it,

crossing oceans and on the sea bed,

in the fields that grow our crops and packing the food we eat, on the trains we ride and in the facilities that process our water, in the plants that generate our power and throughout our homes.

GROUND-BREAKING AND NATION-BUILDING

PROJECTS

Mine hoist for largest potash mine

First commercial wave power plant

Longest underwater power link First platform connected to mainland grid

Most remote offshore wind farm linked to grid Europes largest thermal solar power plant

Largest battery Longest and highest capacity power link Largest SVC installation Automation of largest alumina plant Longest conveyor belt

Largest SCADA network

Longest underground power link Largest reverseosmosis desalination plant

Largest gearless mill drive (for crushing ore) First 600 kV power link

Power and automation Substation in worlds of largest chemical tallest building cellulose plant

PRODUCT RANGE

CABLES & CABLE ACCESSORIES CONTROL SYSTEMS FORCE MEASUREMENT GENERATOR CIRCUIT BREAKERS INSTRUMENTATION AND ANALYTICAL LOW VOLTAGE PRODUCTS AND SYSTEMS METALLURGY PRODUCTS POWER ELECTRONICS REACTORS SEMICONDUCTORS TURBOCHARGING

COLLABORATIVE PRODUCTION MANAGEMENT DRIVES HIGH VOLTAGE PRODUCTS AND SYSTEMS INSULATION COMPONENTS MEDIUM VOLTAGE PRODUCTS & SYSTEMS MOTORS AND GENERATORS POWER PROTECTION & AUTOMATION PRODUCTS ROBOTICS TRANSFORMER COMPONENTS

ABB IN INDIA
The company was incorporated on 24th December 1949 as Hindustan Electric Company Limited. In 1965, the Companys name was changed to Hindustan Brown Boveri Limited (HBB). Pursuant to the Scheme of Amalgamation of Asea Limited with HBB with effect from 1st January 1989, the name was further changed to Asea Brown Boveri Limited (ABB) with effect from 13th October 1989.

A PIONEER IN SMART TECHNOLOGIES

Challenge

Delhi, India: Electrify one of the largest metro projects under construction in Asia

Maharashtra, India: State

of the art, turnkey electrification solution for thermal power plant that will supply increased power to western grid

Bangalore, India: Improve reliability in grid serving 53 million people in Karnataka

CONTD
Challenge

India/Bangladesh: Provide a complete automation solution for worlds longest trans national, single-belt conveyor India: Help the largest steel blast furnace in India maximize their production efficiency

India: Complete electrical and automation solution for one of the largest cement manufacturers in the world

PRESTIGIOUS PROJECTS OF ABB-IN INDIA

Automation solutions for various steel plants in IndiaTata Steel, JSW, Bhushan Group Delivery of automation and power solutions to help power a stadium in Delhi for the Commonwealth Games 2010 Robotics painting solution for Tata Motors Plant electrification and automation for steel plants around India- JSW Invisible substation solution to power help power city of Bangalore- KPTCL Distribution automation solution- Delhi airport new terminal 3 Network management solution that is the first step towards a smart grid in Karnataka- KPTCL

SUSTAINABILITY
EDUCATION ACCESS TO ELECTRICITY PROJECT SUPPORTING THE DIFFERENTLY-ABLED ENVIRONMENT SUPPORT TO NATURAL CALAMITIES

STRONG LOCAL PRESENCE

Head office- Bangalore Global Corporate Research Centers

2 power technology centers

Automation operations center

HARIDWAR FARIDABAD

KOLKATA VADODARA

16 Manufacturing facilities 29 Marketing offices 4 Training centers 8 Service centers Listed on Bombay Stock Exchange and National Stock Exchange, India

NASHIK

MUMBAI

BANGALORE

MYSORE

ABB INDIAS CLIENTS

Companys client includes all the sectors of market since the company has products for the following sectors:Power Plants:- All Major Power Plants owners like NTPC, State Electricity Boards, Private Power Plants Owner like JSW, GVK etc. Process Industries:- like cement, Steel, Sugar, Metal and Minerals, Food and Beverage etc. All companies who set up such plants are our customers. Transportation Industry like Metro and Airport operators. Retails markets for all kinds of power related products.

CLIENTS OF ABB-CHANDIGARH
CHANDIGARH COLONIZER EMAAR-MGF OMAXE CPW PWD TOURISM DEPARTMENT CHANDIGARH HOUSING BOARD

FACTORS CONSIDERED WHILE CHOOSING CLIENTS:Financial Capability of client. Project feasibility. Risk factors for ABB in supplying to client which will also include soft issues like clients background, ethics, climate issues, country related risks etc. Clients past similar experience in setting up project. Clients usage of product.

PROCESS OF DEALERS SELECTION

Dealers past exposure to the business. Dealers financial capability. Dealers technical infrastructure. Dealers engineering manpower infrastructure. Dealers ability to meet ABBs stringent Quality, Safety and Statutory obligations. Dealers capability to meet the quantity requirement of ABB.

DEPARTMENTS INVOLVED IN MARKETING A

PRODUCT

Product development- where active feedbacks are taken from market for product development to suit market requirement. Business development- This department is the first step of marketing for ABB wherein all ABB products are marketed to end customer and process includes new projects information, to introduce ABBs products and registration of all ABB products with new customers. Front end sales- Front end sales as a function are located near customers cities (major cities) and market for new enquires and gives total support to customer for offers, order booking and also ensure collection of payments and statutory forms. Back end Tendering support- This includes preparation of technical and commercial offer against detailed technical specifications of customers.

India Country management team

Biplab Majumder Country and Sub-region Manager Amlan Dutta Majumdar Chief Financial Officer Ramesh Shankar Human Resources David Huegin Legal and Compliance Juliane Lenzner Communication and Investor Relations OHS TBA B Gururaj Company Secretary

Tommy Ranjan De R Narayanan Pitamber GNV Subbarao Andreasson S Karun Account Madhav Vemuri Prakash Nayak Discrete N Venu Shivnani Process Low Voltage Country service Management -Global engineering Power Systems Automation and Front end sales Power Products Automation Products manager Global account and services Motion (as of 1.8.10) manager- TATA

Mr. Piyush Bansal (Regional Manager)

Finance and commercial

LP Team

DM Team

PS Team

PS Team

Automation Team

Admin Team

A.O Thomas (Manager) Mr. S.K Verma (Manager) Mr. Ranjeet Singh (Comm Officer) Mr. Suman Kumar (Comm Officer)

Mr. Ankit Goel (TL) Mr. Sandeep Gulati (Manager Sales) Mr. Rajesh Kumar (Manager-Sales) Mr. Rakesh Kumar (Manager-Sales)

Mr. Baldev Raj (Manager-Sales) Mr. Lalit Sharma (Manager-Sales) Mr. Vipin (Manager-Sales)

Mr. Manish Srivastava (TL)

Mr. Manish Srivastava (TL)

Mr. Manish Srivastava (TL)

Mr. Murlidhar

Mr. Vipin Lakhanpal (Manager-Sales) Mr.Sandeep Bhardwaj (Manager-Sales) Mr. Alfin Tom (Manager-Sales) Mr. Jasbir Singh (Execution-Sales)

Mr. Ramandeep Gupta (Manager-Sales) Mr. Abhijeet Roy (Manager-Sales) Mr. Neeraj Verma (Manager-Sales) Ms. Divjot Kaur (Marketing-Manager) Mr. Kuljeet Singh (Execution -Sales)

Mr. Manoj

Mr. Motilal

Mr. Harjeet Singh (Manager-Sales) Mr. Ramanpreet Singh (Executive-Sales)

Mr. Sanjeev Balta (Execution-Sales)

Mr. Kuldeep Singh (Execution-Sales) Mr. Harminderpal (Execution-Sales) Mr. Mukesh Kumar (Execution-Sales)

Strenghts 1.) Robust growth rates in revenue and profits 2.) Centrally Located in Chandigarh 3.) 80% of Sales person are Electrical Engineers

Weakness 1.) Very restricted Promotional schemes by the company

SWOT

Threats 1.) In Switches segment, the new players and the existing players are very active 2.) Increasing Raw Material Prices 3) Unawareness amongst customers about the Low Voltage Products

Opportunity 1.) Increasing private participation in developing mega projects 2.) Many new Builders are coming up in northern region, DLF, Ansal, Deepak Builders etc.

DEVELOPMENT OF SWITCHES

1899

1915

1920

1933

1953

1975

1998

2001

2002

2004

INABB EWA BUSINESS

INABB launched Modular Switches with Classiq Lumina range in 2004.

Local design with basic modular concept

Features are thin plate and luminous strips which illuminates at night

In 2006 end, ABB introduced one more range of Plate Classiq Sleek

Designed & developed new switch Classiq

FINANCIAL STATEMENT ANALYSIS

LIQUIDITY RATIOS:Current Ratio =CurrentAssets/Current Liabilities

YEAR 2008 2009

Current Assets 44.48 44.32

Current Liability 31.62 29.81

Current Ratio 1.38 1.49

Quick Ratio
=Quick Assets/Current Liability

YEAR 2008 2009

Quick Assets 37.05 37.02

Current Liabilities 31.62 29.8

Quick Ratio 1.17 1.24

Absolute Liquid Ratio

=(Cash+ Marketable Securities)/Current Liabilities

YEA R
2008 2009

Cash+ Marketable Securities

7.3 8.44

Current Liabilities
31.62 29.8

Absolute Liquid Ratio

.23 .28

PROFITABILITY RATIOS:

Gross Profit Ratio:-

=(Net Profit+Operating Expense)/Sales

YEAR 2008 2009

NP+ OP 9024.6 6012.9

Sales 69674.5 63097.7

GPR 12.9 9.53

It is desirable that this ratio must be high and steady because any fall in it would put the management in difficulty In the realisation of fixed expenses of the business.

Net Profit Ratio:-

=Profit After Tax/Sales

YEAR
2008 2009

Profit after tax Net sales

5474.1 3546.4 69674.5 63097.7

NPR
7.8 5.6

This ratio is helpful to determine the operational ability of the concern. While comparing the ratio to previous years ratios, the decrement shows the inefficiency of the concern.

Earning Per Share:-

=Profit/Share Capital

Year 2008 2009

Profit 5474.1 3546.4

Share Capital 211.9 211.9

EPS 25.8 16.7

Earning per share helps in determining the market price of the equity share of the company. It also helps to know whether the company is able to use its equity share capital effectively with compare to other companies. It also tells about the capacity of the company to pay divide to its equity shareholders.

Capital Turnover Ratio:-

=Sales/Capital Employed

YEAR 2008 2009

Sales 69674.5 63097.7

Share Capital+ Reserves 21046.9 24097.3

CTR 3.3 2.62

The higher the ratio is, the more efficiently a company is using its capital also called equity turnover

OPERATING PROFIT RATIO

=Operating profit/Sales

YEAR 2008 2009

OP 8332.4 5274

sales 69674.5 63097.7

OR .12 .083

TURNOVER
2005
30141.4
80000 70000 60000 50000 40000 30000 20000 10000 0 2005 2006 2007 2008 2009 Turnover(Rs. In millions)

2006
43477

2007
60013.6

2008
69674.9

2009
63097.7

Turnover(Rs. In millions)

NET PROFITS
2005 2186.8 2006 3403.1 2007 4916.7 2008 5474.1 2009 3546.4

Profit (Rs. In millions)

6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009

Profit (Rs. In millions)

EARNING PER SHARE

2005 10.3 2006 16.1 2007 23.2 2008 25.8 2009 16.7

EPS
30 25

20

15

EPS

10

0 2005 2006 2007 2008 2009

NEED OF THE STUDY:Company Legrand ABB Anchor** Crompton Greaves Havells Change in Market share 4.04 0.32 3.65 -1.62 1.95

MARKET ANALYSIS OF ABB SWITCHES

OBJECTIVES
TO KNOW AWARENESS ABOUT DIFFERENT BRANDS OF SWITCHES TO STUDY THE FACTORS AFFECTING CUSTOMERS PREFERENCE/ CHOICE TOWARDS SWITCHES TO WORKOUT THE MARKET SHARE OF ABB SWITCHES TO KNOW ABOUT PROBLEMS BEING FACED BY CUSTOMERS WHILE USING ABB SWITCHES

TYPE OF DATA USED:

Primary Data

TARGET GROUP/ POPULATION:

Channel Partners/Authorized Dealers of ABB in Punjab, Himachal Pradesh,Haryana(Karnal,Yamuna Nagar, Hisar, Zirakpur,) and Chandigarh

AREA OF STUDY:

Punjab, Himachal Pradesh,Haryana(Karnal,Yamuna Nagar,Ambala Hisar,Zirakpur,) and Chandigarh

SAMPLE SIZE :

20

SAMPLING:

CONVENIENCE SAMLING

LIMITATIONS

Sample size is small so sampling error may be committed Many questionnaires were through telephonic conversation Authorized Dealers of ABB switches in northern region is very less Since study time was less, so so my study area was limited to northern zone(excluding Delhi and NCR) Consumers were scattered very far off so I courier them, to which many didnt replied The research area is limited to Punjab, Haryana(Karnal, Yamunanagar, Ambala), Jammu & Kashmir, and Himachal Pradesh, so the results cannot be generalized.

AWARENESS ABOUT DIFFERENT BRANDS OF SWITCHES

N=20
Brand ABB Crabtree Legrand Clipsal SSK No. of dealers 19 19 19 19 9 % of dealers 95 95 95 95 45

BRANDS OF SWITCHES DEALERS HAVE IN THEIR STORE

N=20 BRAND ABB Crabtree Legrand Clipsal SSK Others No of dealers 20 9 16 9 4 5 %age 100 45 80 45 20 25

AWARENESS OF CUSTOMERS ABOUT ABB BRAND

N=20 Yes No

No of dealers % of dealers 19 95 1 5

AWARENESS LEVEL OF CUSTOMERS ABOUT ABB SWITCHES

N=20

Yes No

No of % of dealers dealers 10 50 10 50

BRANDS IN ORDER OF THEIR PREFERENCE

N=20

Brands ABB Crabtree Legrand Clipsal SSK

1 2 4 14 0 0

2 3 3 4 9 1

3 5 6 2 7 0

4 7 7 0 3 3

5 Ratings 3 3.3 0 2.8 0 1.4 1 2.8 16 4.7

SALES IN PERCENTAGE OF THESE BRANDS

N=20
BRAND ABB Crabtree Legrand Clipsal SSK any other 0% 10 55 20 50 75 75 1-20% 21-40% 41-60% 61-80% 41-60% 61-80% 81-100% 55 15 0 0 0 0 20 20 15 10 0 10 0 0 10 20 35 15 35 15 0 45 5 0 0 0 0 0 15 10 0 0 0 0 0 20 5 0 0 0 0 0

80 70 60 50 40 30 20 10 0

ABB Crabtree Legrand Clipsal SSK any other

CUSTOMER PREFERENCE OF BRANDS OF SWITCHES ON VARIOUS FACTORS.

N=16 PRICE BRAND ABB Crabtree Legrand Clipsal SSK 1 HS 0 2 10 2 1 2 S 5 2 3 5 0 3 N 4 7 2 4 3 4 D 4 3 0 2 6 5 HD MEAN 3 2.65 1 2.2 1 1.35 3 2.35 5 2.95

N=16 Aesthetic Brand ABB Crabtree Legrand Clipsal SSK 1 HS 0 8 8 0 0 2 S 0 3 8 4 1 3 N 4 1 0 8 3 4 D 5 1 0 4 5 5 HD MEAN 7 3.35 2 1.55 0 1.2 0 2.4 6 3.05

N=16 Durability BRAND ABB Crabtree Legrand Clipsal 1 HS 1 3 11 1 2 S 0 5 4 6 3 N 4 2 1 6 4 D 6 4 0 2 5 HD MEAN 5 3.1 1 0 1 2 1.1 2.2

SSK

3.15

VARIOUS PROMOTIONAL SCHEMES OFFERED BY ABB

N=20 No of dealers % of dealers Cash discounts 12 60 Credit 14 70 Offers 0 0 Others 0 0

PROBLEMS FACED BY DEALERS WHILE SELLING ABB PRODUCTS

N=20

No of dealers Prices 12 Unawareness 18 Quality 3 Any other 0

% of dealers 60 90 15 0

COMPLAINTS FROM CUSTOMERS ABOUT ABB

PRODUCT N=20

Yes No

No of Dealers 12 8

% of dealers 60 40

COMPLAINTS ABOUT ABB SWITCHES ARE REGARDING

N=12 Prices Durability Aesthetic After sale service other

No of dealers % of Dealers 0 0 5 25 0 0
11 1 55 5

FREQUENCY OF COMPLAINTS OF ABB SWITCHES

N=12
No of dealers % of dealers once in 4 weeks 5 25 1-3 month 5 25 once in 6 months 2 10 6 months or more 0 0

SUGGESTIONS TO ABB TO IMPROVE UPON SALES

N=13

after sale services Appoint local ABB representative Awareness of brand Price reduce Quality

No of dealers 2
2 5 7 1

% of dealers 10
10 25 35 5

FINDINGS:About ABB switches many customers are unaware, it is in ratio 50:50 80% of dealers of ABB have Legrand also with them Dealers are not satisfied with the brand ABB.(This is as per overall ratings) Market share of Legrand is the highest and many dealers of ABB have the sales of ABB in 0-20% and 10% dont have any share of ABB in their sales. Which means ABB as a brand in switches is not doing good With the prices of ABB dealers are not satisfied. Even though other brands have nearly same prices as ABB but still they are preferred over ABB

Even with ABB looks (aesthetic) and durability dealers are not satisfied. Legrand enjoys the leadership here. SSK is another brands which is getting comparable rating to ABB The main problem of ABB is with unawareness of brand- ABB Switches. This problem is faced by dealers while selling the product. As customers are not aware about the product so convincing them is a tedious task. Quality is another major problem being faced by dealers

RECOMENDATIONS

As the competition in this field is very much so the major stress should be on creating the brand awareness, through advertisement, campaigns, promotional schemes to dealers and to the customers Legrand is the market leader so to be in the competition ABB need to re construct its design part/ improve its design to attract customers. The prices need to be lower than customers, to attract new customers. In every city representative of ABB must be there to keep account of sales in routine, and to study the needs of that particular region. This will help in boosting up the sales After sales services of company need to be improved by appointing engineer for every zone.

For the prompt handling of queries, complaints and requests, it is suggested that one more person should be employed in every zone. It is recommended that training programs should be organized frequently and dealers should be informed and persuaded to participate in this so that handling of problems and complaints by customers can be handled by dealers and employees in more quickly and delay is not made. In switches segment company should award the highest seller of the month/ or year. This will motivate the dealers

 More

contests should be floated to keep the dealers motivated it will help in raising the sales many fold. Lastly, it is also strongly advised that company must resolve the issues and pay heal to suggestions given by dealers in the questionnaires so that this project does not become a futile exercise. It was also found during survey that company is having 2-3 dealers in every city, but more than 50 % do not keep Domestic switches. To improve upon the sales of switches to company should encourage them to keep switches in their stores, this will help increase the brand awareness and also the sales will increase.

QUESTIONNAIRE

Questionnaire

BIBLIOGRAPHY

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