You are on page 1of 96

Marketing Analysis and standard Operating Process

A report submitted towards the partial fulfillment of the requirement of the


two years full-time Post Graduate Diploma in Management.

Submitted By: Prashant Baghel


Post Graduate Diploma in Management (Marketing &
Operation)
Roll No.:2k92a57
(2009-2011)

ASIA-PACIFIC INSTITUTE OF MANAGEMENT


3&4, Institutional Area, Jasola, New Delhi 11025
PREFACE

In today’s era of cut-throat competition, PGDM is sure to have an edge over their
counterparts.
PGDM education brings its students in direct contact with the real corporate world through
industrial training. The PGDM program provides its students with an in depth study of
various managerial activities that are performed in any organization.
A detailed analysis of managerial activities conducted in various departments like
production, marketing, finance, human resources, export-imports, credit dept, etc. gives the
student a conceptual idea of what they are expected to manage , how to manage and how to
obtain the maximum output through minimum inputs and how to minimize the wastage of
resources.
I have undergone my summer training at AREVA T&D INDIA LIMITED. It is one of the
leading Transformer companies in the country. I feel great pleasure to present this report
work after my training at AREVA T&D INDIA LIMITED Topic of Marketing Research
& Standard Operating Process that produced to be golden opportunity for me by enriching
my knowledge by comparing my theoretical knowledge with the managerial skill and
application.
Simple language has been used throughout the report. Report is illustrated with figure, charts
and diagrams as and when required.
ACKNOWLEDGEMENT

“The satisfaction Euphoria that accompanies the successful completion of any work would
be incomplete unless we mention the name of the person, who made it possible, who
constant guidance and encouragement served as a beckon of light and crowned our efforts
with success.” I consider it a privilege to express through the pages of this report, a few
words of gratitude and respect to those who guided and inspired in the completion of this
project.”

My first regard is to almighty God, it was my trust and belief on him, which enable me to
embark upon this task, move on the righteous path and recede the realm of facts. So success
is lock and hard is the key.

I am deeply indebted to Mr. Mohamed Yasser (Exec. HR Manager), for giving me the
opportunity to undergo my project in their esteemed organization and their timely
suggestions & Valuable guidance. I also want to give thanks to Mr. Rajeev Virdi (Sales
Manager), Mr. Abhishek Mani (General Manager, Project Manager). They constantly
encouraged me and showed the right path from day first till the completion of my project.
I had worked of company visited to filling Work, Editing of Ms Office entries to expenses of
all Month.

In the last but not the least, my grateful appreciation is also extended to Dr. D.K Benerjee
(Director of the collage), Mr. Sunil Kumar (Placement Officer) and Ms. Shyama
kumari (Faculty Project guide) my thanks to all my faculty members, parents and friends.

However, I accept the sole responsibility for any possible errors of omission and would be
extremely grateful to the readers of this project report if they bring such mistakes to my
notice.
(PRASHANT BAGHEL)

CERTIFICATE

This is to certify that the Summer Internship Project Report Titled Marketing Research &
Standard Operating Process Prepared by me is an original work and that this work has not
been submitted to AIM or elsewhere in any form. My indebtedness to other
works/publications has been duly acknowledged at the relevant place & in the bibliography.
The project work was carried during the period 01-05-2010 to 01-06-2010 in AREVA T&D
India Ltd.

An attempt has been made by me to provide all relevant and important details regarding the
topic to support the theoretical edifice with concrete research evidence. This will be helpful
to clean the fog surrounding the various aspect of the topic.

Mr.Abhishek Mani Prashant Baghel


(General Manager, AREVA t&d) 2k92a57
CERTIFICATE OF ATTENDENCE

This is to certify that Mr. Prashant Baghel, a student of Asia Pacific Institute of
Management, was engaged in a Summer Internship Project in our organization from 01-05-
2010 to 01-06-2010. He has been regular and punctual during the tenure of the Internship
Project.

Mr. Abhishek Mani


(General Manager)
CONTENTS
Particulars Page
INTRODUCTION TO THE PROBLEM 01
• A Background of the task undertaken 01
• The scope 01
OVERVIEW OF THE COMPANY 02
• History Of Areva T & D 03
• Vision and mission of the company 13
METHODOLOGY 14
Advantages & Disadvantages of data collection Methods 16
PART A:- MARKETING RESEARCH 17
• Major customer in India 21
• Market Competition 23
• The product power transformer,Noida AREVA works 26
• The range of Product 27
• Our Area of expertise. 33
• Competitors 34
• SWOT Analysis 35
• Questionnaires
PART B : - STANDARD OPERATING PROCESS 38
• Excise & sales Tax department 39
• Manufacturing Department 45
• Purchase Department 53
• Planning Department 60
• Account Department 72
• Annual Report 77
CONCLUSION 80
BIBLIOGRAPHY 82
1
INTRODUCTION TO THE PROBLEM /ORGANISATION

1. A background of the problem task undertaken:-

In todays market scenario it is important for any organization to know about its
objectives and goals, and to fulfill all these goals and objectives the most important thing
is strategy. That how to make an effective strategy to fulfill all the goals and objective.

An organization should know about its strategy and also should know how the company
is growing. A company should know:-
Who are its competitors?
What is their position in market?
How they can compete them?

So all this is possible by Marketing Research.An organization should also know about
the working of its department. That their department coordination is good or not.So all it
is possible by Standard operating process.

So I have taken a project title name “Marketing Analysis and Standard operating
process”. It has two parts:-
Marketing analysis.
Standard operating process.
2. The scope

The scope of the study is to simply know about market and the working of different
department In marketing we identify our customers and make profitable relations with
them. Hence it involves two main points...
1. Choosing target market.

2. Making profitable relations.

2
ABOUT COMPANY

Electricity is our business:

We have over 100 years of expertise and dedication in bringing power to people
worldwide. From rural electrification to turning the wheels of industry and facilitating the
trading of energy, we bring power to your projects.

Your solution provider based upon a superior product offering:

Our products and systems serve to transmit and distribute electricity, ensure the
reliability, quality and safety of energy flows, as well as operate efficient networks
through information management.

We are present at all stages of the supply power chain, from the generator to the large
end-user, backed by a comprehensive services portfolio.

As a solution provider, we bring together and optimize different disciplines, T&D


businesses and third-party suppliers, to address your specific problems, however
complex, and add value to your business. We bring solutions that draw upon market
segment expertise and are price-competitive.

A global presence:

We are one of the world's leading T&D companies. We have over 25,000 employees
located in more than 30 countries, with a dedicated sales force serving customers in over
100 countries.
AREVA NP is the world leader in the design and construction of nuclear power plants
and research reactors, engineering, instrumentation and control, modernization,
maintenance and repair services, component manufacture and supply of nuclear fuel. The
jointly-owned company is headquartered in Paris, with regional subsidiaries in the U.S.
and Germany. AREVA has a 66% and Siemens a 34% stake in AREVA NP.
3

HISTORY OF AREVA T&D


4

125 YEARS OF HIGH PERFORMANCE

AREVA T &D’s leading position in today’s energy market follows over 125 years of
pioneering innovation, technological expertise and unwavering commitment to
quality. From our initial
Creation in 1878 to company growing worldwide presence today, AREVA T&D has

gone from strength to strength.

1878:

Creation of Societe Alsacienne De Construction Mecanques (SACM) in France,

Predecessor of AREVA T&D

1918:

Creation of English Electric Company Limited (Later known as GEC) in the UK.

1928:

SACM merges with Thomson-Houston, forming ALSTHOM SA.

1983:

ALSTHOM SA acquiers Compagnie Electro-Mecanique(CEM).


5

1986:

Acquisition of Sprecher and Schuh’s high and medium voltage activities.

1988:

Acquisition of the Relays and instrument transformer divisions of Schlumberger

Industries. Merger with General Electric Company (GEC) to create GEC-ALSTHOM,

later known as ALSTOM.

1996:

Acquisition of Allgemeine Electricitats-Gesellschaft(AEG).

1998:

Acquisition of CEGELEC T&D.

2003:

Four joint ventures in China


2004:

ALSTOM T&D joins the AREVA group, to form AREAV T&D.

2006:

Acquisition of the high-voltage activity of the RITZ Group.

2007:

Acquisition of Passoni & Villa, manufacturer of high voltage bushings. Acquisition of

VEI Power distribution S.P.A.’s medium-voltage activities in Italy.

2008:

Acquisition of the Finish Company Nokian Capacitors Ltd., manufacturer of power

system components, such as capacitors.


COMPANY PROFILE WORLDWIDE
11

The AREVA group is organized around a Supervisory Board, an Executive Board and

an Executive Committee assisted by the Corporate Departments. These bodies supervise

and pilot the group operations, divided into four divisions

organized as business units.

With manufacturing facilities in 40 countries and a sales

network in more than 100, AREVA offers customers reliable technological solutions for

CO2-free power generation and electricity transmission and distribution. Company is the

world leader in nuclear power and the only company to cover all industrial activities in

this field. Our 58,000 employees are committed to continuous improvement on a daily

basis, making sustainable development the focal point of the group’s industrial strategy.

AREVA’s businesses help meet the 21st century’s greatest challenges: making energy

available to all, protecting the planet, and acting responsibly towards future

generations.
12

SIMPLIFIED LEGAL ORGANIZATION CHART


13
VISION AND MISSION OF COMPANY:

Vision:

At AREVA to make the highly profile of company at to create the brand name of whole
words. Its best performance product for tranmission and distribution.

Mission:

At AREVA you’ll face new and exciting challenges every day as you support the needs
of our customers. But there’s also a bigger picture to your career. Our businesses help to
meet the needs of the great endeavors of the 21st century – making energy available to
all, protecting the planet, and acting responsibly for future generations. It’s a vision that
includes innovating cleaner, safer, and more attainable energy to drive economies,
develop cultures, and deepen life experiences.

Brand Essence:

AREVA participated in the last two America's Cup races and is still as committed as ever
to helping the French team win. This year, AREVA is sponsoring the French Match
Racing Team consisting of five crews of talented, seasoned sailors from a variety of
backgrounds selected by the French Sailing Federation. This is the first French team to
have been formed specifically for match racing. The team will participate in this year's
prestigious World Match Racing Tour (WMRT), an international championship of ten
match races held at various locations around the world.

14
METHODOLOGY

While there are many ways to perform market research, most businesses use one or more
of five basic methods: surveys, focus groups, personal interviews, observation, and field
trials. The type of data you need and how much money you’re willing to spend will
determine which techniques you choose for your business.
1. Surveys.

With concise and straightforward questionnaires, you can analyze a sample group that

represents your target market. The larger the sample, the more reliable your results will

be.

In-person surveys are one-on-one interviews typically conducted in high-traffic

locations such as shopping malls. They allow you to present people with samples of

products, packaging, or advertising and gather immediate feedback. In-person surveys

can generate response rates of more than 90 percent, but they are costly. With the time

and labor involved, the tab for an in-person survey can run as high as $100 per interview.

Telephone surveys are less expensive than in-person surveys, but costlier than mail.
However, due to consumer resistance to relentless telemarketing, convincing people to

participate in phone surveys has grown increasingly difficult. Telephone surveys

generally yield response rates of 50 to 60 percent.

Mail surveys are a relatively inexpensive way to reach a broad audience. They're

much cheaper than in-person and phone surveys, but they only generate response rates of

3
15

percent to 15 percent. Despite the low return, mail surveys remain a cost-effective choice

for small businesses.

Online surveys usually generate unpredictable response rates and unreliable data,

because you have no control over the pool of respondents. But an online survey is a

simple, inexpensive way to collect anecdotal evidence and gather customer opinions and

preferences.

2. Focus groups.

In focus groups, a moderator uses a scripted series of questions or topics to lead a

discussion among a group of people. These sessions take place at neutral locations,

usually at facilities with videotaping equipment and an observation room with one-way

mirrors. A focus group usually lasts one to two hours, and it takes at least three groups to

get balanced results

3. Personal interviews.
Like focus groups, personal interviews include unstructured, open-ended questions. They
usually last for about an hour and are typically recorded.

Focus groups and personal interviews provide more subjective data than surveys. The
results are not statistically reliable, which means that they usually don't represent a large
enough segment of the population. Nevertheless, focus groups and interviews yield
valuable insights into customer attitudes and are excellent ways to uncover issues related
to new products or service development.
16

4. Observation.

Individual responses to surveys and focus groups are sometimes at odds with people's
actual behavior. When you observe consumers in action by videotaping them in stores, at
work, or at home, you can observe how they buy or use a product. This gives you a more
accurate picture of customers' usage habits and shopping patterns.
17

Advantages and disadvantages of various data collection


techniques
18

Marketing
Research

19
T&D DIVISION:
20

The AREVA T&D division supplies products, systems and services for electricity
transmission and distribution. They are used to regulate, switch, transform and dispatch
Electric current in electric power networks connecting the power plant to the final
user.AREVA T&D products and solutions play an essential role in electricity network
reliability, quality and safety. The division's customers are electric utilities as well as the
oil, mining and metals, wind energy, paper and glass, transportation, and power
engineering industries. This division consists of the four following business units:

(A) PRODUCTS

The Products business unit designs, manufactures and delivers a complete range of
products covering every stage of electric power transmission and distribution. The
business unit's specialized equipment is used for:
• high voltage power transmission (52 kV-800 kV): conventional equipment, insulated
substations, instrument transformers and power transformers;
• medium voltage primary and secondary power distribution (3 kV-52 kV): compact
transformer substations, distribution transformers, circuit breakers, switchgear,
engine starting cells and lightning arrestors;
• substation control and safety.

The business unit operates production units in 25 countries on six continents. The group
serves more than 30,000 customers around the globe. The key strengths of the Products
business are its research and development expertise, its understanding of changing
customer requirements, quality management, and optimized production site operations.
21

(B) SYSTEMS:

The Systems business unit offers turnkey projects and grid management systems.
Customers turn to the Systems business unit for substation engineering experience,
electric power supply system expertise, command of advanced technologies, and project
management know-how. The business unit's main customers are power companies and
industrial groups that use large quantities of electricity. The unit offers:
• High voltage and medium voltage substations;
• power electronics for direct-current substations and systems to increase existing grid
capacity and quality;
• operating systems for transmission and distribution networks;
• electric power market management systems.
The Systems business unit's key strengths are technology and applications expertise,
particularly power electronics, know-how in real-time electric current management, and
partnerships with suppliers.

(C) SERVICES:

In addition to product-related services, the Services business unit provides network


management services, operating support, and maintenance services to power companies.
The business unit offers medium and long-term contracts covering the entire life cycle of
its customers' electric power systems. These contracts allow power companies to
optimize equipment costs and performance while ensuring operator safety.

The Services business unit offers a wide range of services:


• Power system engineering, consulting, training, and transmission and distribution
expertise;
• Long-term maintenance contracts for products and substations;
• Repair services, spare parts and product start-up services;
• Electrical substation upgrading and refurbishing;
• Information technology support for grid management systems and safety/control
products.
The key strengths of the Services business unit are a keen understanding of its customers
and the T&D products they use, the ability to supply products and related services, quick
turnaround times, and project management expertise.

(D) AUTOMATION:

The Automation business unit answers to demand for fully integrated energy
management networks. The business is built around three main activities: automation and
information systems, automation products and application and support services. The
business unit supplies equipment and information technology systems, including
computerized power management systems used to operate power transmission networks,
determine customer needs and regulate the flow of power from power plants to the
distribution network.

In particular, the business unit provides Information Systems solutions for deregulated
energy industry applications, large information technology control systems (SCADA)
and telecommunications equipment for power lines. The Automation business unit also
provides equipment for power networks and substation protection, control and
monitoring.

MAJOR CUSTOMERS IN INDIA:-

• All State Electricity Board

• Power Grid Corporation of India


• National Hydro Power Electric Corporation

• Kolkata Electric Supply Corporation

• Ahmadabad Electricity Company

• New Delhi Municipal Corporation

• Tata Iron and Steel Company (TISCO)

• Bhilai Steel Plant

• Indian Iron and Steel Company

• Bharat Heavy Electricals Limited (BHEL)

• Kribhco

• National Fertilizers Limited

• ACC

• Birla Cement

• Century Cement

• L&T

• Western Collieries

• Eastern Coalfield

• Santa Eastern Coalfield

• Oil and Natural Gas Corporation

• Indian Oil Corporation Ltd

• HPCL

• Cochin Refinery

• Reliance Textiles
• ABB

• TC Engineers

• POIL

• Engineers India Ltd

• Indian Railways

• HINDALCO

• Bihar Caustic and Chemicals Limited

• Ashok Leyland

• Damodar Valley Project

• GRIDCO

MARKET COMPETITION:-

Major Competitors in India

a) ABB

b) BHEL

c) CGL

d) EMCO

e) BBL
f) Siemens

g) Crompton Greaves

h) TELK

i) L&T

j) SCHINDER

k) ECE

l) T&R

The power transformer-manufacturing unit at Noida works. India belongs to the Tower
Transformer Business that is a part of the power Transmission & Distribution Sector
(T&D), which was part of the ALSTOM.

The transformer division is further divided into two:


• Power Transformers.

• Distribution Transformers.
26

EXPORTS

Zimbabwe Brazil

China Myanmar

Argentina Australia

Bangladesh Bhutan

Malaysia Nigeria

Kenya Iran

Columbia Croatia

Greece Malawi

Nepal Uganda

Vietnam Canada

France UK

Libya Tanzania
THE PRODUCT POWER TRANSFORMERS, NOIDA, AREVA

WORKS:

The Noida unit plant was set up in 1957 and today it can provide up to 400kv
transformers

Sheetff
Year of Establishment : 1957

Nature of Business : Service Provider

Number of Employees : 501 to 1000 People

Turnover : US$ 10-25 Million (or Rs. 40-100 Crore Approx.)

The competitors:

Some if its prominent competitors are BHEL, TELK, CGL, ABB, SIEMENS and EMCO
and others.

The range:

AREVA Transformer Unit at Noida offers the following rage of products:

• Power transformers up to 315 MVA 3 phase & 600 MVA 3 phase bank, 400 kV

class.

• Single-phase trackside Transformer for Railways.

• Transformers for Locomotives.

• Scott connected Transformer up to 200 kV.

• Rectifier Transformers.

• Shunt reactors of coreless and gapped core type.

• Current limiting series reactors.


• Arc furnace transformers.

The unit has a well-maintained private railway siding, which allows consignments
weighing upto180 tones to be dispatched by Rail wagon. Road dispatches are affected
through special low bed trailers that are provided by dedicated transporters and can
handle consignment weights up to 250 tones.

The efficiency of transformers is rated between 96% to 99% if the user takes the proper
care, 25 years is generally is the normal transformer life.

The range of products at Noida Works


Other feature:

At AREVA T&D India Ltd, Noida Works the goal is customer satisfaction. To give after
sales service the attention is deserves Noida units’ as a separate division staff with highly
competent and experienced technical personnel supported by a countrywide network.
This division undertakes site erection, testing, commissioning of all types of
Transformers up to 400 kV class. Response within 24 hours is always the objective and
the unit has established its performance in this area of operation.

Quality assurance

The Quality systems of AREVA T&D India Ltd, Noida works, transformer units at
Noida are certified as ISO 9001. Design Control Procedure, Contract reviews, Vendor
control and incoming materials and acceptance all follows the documented system. The
transformers are manufactured in accordance with standard quality plan or the job
specific quality plan approved by the customer. To ensure the customer’s specifications
are met, each order is treated as a project and allocated to a dedicated team responsible
for complete execution. Critical inspection procedures are applied at all stages of
manufacture and detailed inspection records are maintained. In addition, internal audits
are conducted at regular intervals to ensure strict compliance to Quality Systems.

Design Activities:

The computer-aided design is completely integrated in the AREVA T&D India, Ltd.
Noida Works, transformer business structure and allows exact specifications to be met.
The CAD center also facilitates manufactured to meet delivery commitments.
Advanced Computer Design & Draught employs state-of-the-art software like ‘SLIM’
for Electro-magnetic field analysis and ‘FEM’ to optimism Electrical, Mechanical &
Thermal characteristics. This ensures on errors-free, highly reliable and economic
product delivered on time.
Research & Development:

One of the major challenges at AREVA T&D Noida works Research and Development
where “future always means now” is reduction of losses. On-Load losses cause the
efficiency of the transformer to drop. To reduce these losses, several possibilities are
examined, including improvement in magnetic circuits and reduction of Eddy current
linked to the leakage flux.
There is continuous rapport with other AREVA transformer units across the globe in
order to be a world class manufacturer and keep up-to-date with the latest technology and
design practices.

Areas of focus
The areas of focus for AREVA NP's community involvement include:

 Education: science, technology, engineering, business


 Civic/Cultural/Environment: arts, music, theatre, history, environmental
protection
 Human services: housing, family crisis response, successful children and youth,
strengthened families and individuals, healthy and independent individuals

In addition, AREVA NP strongly supports the local United Way organizations in our
communities joining our employees in giving more than $500,000 annually.

REGIONAL SOLUTIONS:
Plant AREVA NP offers custom solutions to solve any
Solutions complex nuclear engineering issue. The Plants
Sector is committed to improving safety and plant
performance by increasing reliability, reducing
risks and reducing costs for the existing fleet as
well as undertaking major initiatives for the
deployment of new plants.
Fule Solutions For nearly four decades, our fuel assemblies have
powered the growth of nuclear energy around the
world, providing the highest performance, cost-
competitiveness, and reliability.

Backed by the global resources of AREVA, and by


proven domestic success, our fuel designs provide
effective solutions to current and anticipated
demands for high reactor core performance and
reliability. Our advanced fuels feature superior
debris protection, high resistance to corrosion, and
fuel rod and structure designs for 18 to 24-month
fuel cycles.

BUSINESS & MARKETING:


The AREVA group has positioned itself as a major partner to electric utilities, which are
facing the 20th century’s energy challenges: generating more electricity at the lowest cost
with the utmost reliability while reducing greenhouse gas emissions.AREVA, the world
leader in nuclear power, meets these challenges through each of its operating divisions by
offering technological solutions for reliable CO2-free power generation and electricity
transmission and distribution.With manufacturing facilities in 43 countries, AREVA aims
for balanced development between the various regions of the world.

INVESTOR RELATIONS:
In this area, you can access all of the group’s financial data and a series of tools giving
you access to information for a better understanding of our operations.

CUSTOMER TRAINING:
In the context of the current economic climate, many T&D customers are focusing on
how to extend the lifecycle of existing assets while improving security, service continuity
and power quality and network performance.

AREVA T&D offers high added value services to its customers, from network consulting
to training and competence management which cover all aspects of electrical
installations.

AREVA T&D Technical Institute can provide training on subjects ranging from safety,
design, operations, maintenance to protection, control and network management.
AREVA T&D Technical Institute will help you map out your training plans to improve
your staff competences on existing equipment and also to keep your staff up-to-date on
the latest technological advances.

Areva Join Venture:

AREVA’s Transmission and Distribution division has announced today the signing of an

agreement to form a 50/50 joint venture with the Russian company, United Company

RUSAL (UC RUSAL), the world’s largest producer of aluminum. The joint venture will

become the preferred supplier for turnkey projects, electrical equipment and services in

the T&D field for UC RUSAL’s plants and is expected to generate $500 million in orders

over the next five years.Through this partnership, UC RUSAL will secure key

competencies to support its fast growing production capacity. For AREVA, partnering

with UC RUSAL will enable the company to strengthen its position on the booming

electro-intensive industries market, and to further develop its activities in Russia.AREVA

has longstanding experience and expertise in developing high direct current electricity
supply systems for aluminum production sites around the world. In 2006, it designed and

installed such a customized electrical system for UC RUSAL’s Sayanogorsk site in

Siberia.

Philippe Guillemot, Chairman and CEO of AREVA’s Transmission and Distribution

division, said: “This new partnership is in line with our strategy to reinforce our

presence on the industries market. It also illustrates our strong commitment to support

UC RUSAL’s development strategy by ensuring its secure access to key competencies in

the electrical field.” More about with manufacturing facilities in 41 countries and a sales

network in more than 100 countries, AREVA offers customers reliable technological

solutions for CO2-free power generation and electricity transmission and distribution. We

are the world leader in nuclear power and the only company to cover all industrial

activities in this field. Our 61,000 employees are committed to continuous improvement

on a daily basis, making sustainable development the focal point of the group’s industrial

strategy. AREVA’s businesses help meet the 21st century’s greatest challenges: making

energy available to all, protecting the planet, and acting responsibly towards future

generations.

AREVA's T&D division is an active player around the globe. It designs, manufactures

and supplies a complete range of equipment, systems and services for all stages in the

transfer of electricity, from the generator to the large end-user.

CAREERS:-

A stimulating work environment, diversified jobs within a high-tech sector, careers in


constant evolution.
OUR AREAS OF EXPERTISE:-

AREVA T&D's technologies and expertise ensure higher safety, reliability and
capacity of power grids around the world.

We provide global solutions to industrial partners in their need for flawless energy and
to utilities in their mission to supply energy to people around the world.

• Substation equipment: - Such as high and medium voltage transformers, circuit


breakers, disconnectors and instrument transformers.

• Turnkey substations: - Bringing together the right mix of products, expert


engineering and complete project management.
• Network management: - Protection and control solutions.

• Network consulting: - Asset management, refurbishment and spare-part


solutions to manage electrical installations in a secure and efficient way
throughout their lifecycle.

COMPETITORS:-
Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

Areva T&D 262.95 6,287.24 3,583.19 192.00 1,194.22

Alstom Projects 577.85 3,872.99 2,064.81 167.25 409.20

Kalpataru Power 1,059.75 2,808.34 1,884.92 94.41 1,491.68

KEC Int 519.65 2,672.04 3,878.23 170.99 1,180.39

Jyoti Structure 157.85 1,294.44 1,724.34 79.74 720.36

Voltamp Trans 859.35 869.41 643.06 114.80 264.68

Transformers 417.10 539.04 522.65 49.51 299.72

Sujana Towers 51.30 463.39 701.13 31.98 570.03

Indo Tech Trans 273.95 290.93 206.74 38.97 161.57

Sunil HitechEng 229.10 281.22 598.21 10.29 367.98

SWOT ANALYSIS

STRENGTH
• HUMAN RESOURCE

The employee strength of the Company stands at around 3,500 as on December 31, 2007.
During the year under review, hiring quality work force and retention of talent posed a
serious challenge to the Company, and this was carefully addressed. AREVA`s HR team is
sufficiently geared up to meet these challenges.

• TECHNOLOGICALLY STRONG

AREVA is fully equipped to face the technological challenges of the T&D market and has
various solutions in its portfolio to address most of the segment.

• BRAND VALUE

The brand value of AREVA T&D is well recognized in the market.

• EXPANSION

Capacities of the manufacturing plants are being continuously increased to meet the
increased demand of the market.

• STRONG COMMUNICATION NETWORK

One-on-one meetings with the investor community and web based interactive sessions to

discuss the progress and performance of the Company.

• STRONG FINANCE AND ACCOUNTING SERVICES


Finance Shared Service Centre at Chennai, in each location, the accounting and controlling
team is being segregated with clearly defined responsibilities. The accounting team
emphasizes strict implementation of various accounting standards with the implementation
of Internal Controls to foster best practices. The controlling team concentrates on profit
optimization actions to boost profitability growth. Both accounting and controlling processes
are aimed at becoming benchmarks in world class finance.

WEAKNESS

Even after adapting new IT enabled processes there are number of paper works carried out in
AREVA which is a bottle neck in its functioning.

AREVA has heavily experienced staff but they are not well versed with IT applications.

The prime customers for the company are SEB in the MV switchgear segment. They don't
pay the dues on time making the company lose interest cost on the due amount.

• The production process has to wait for a number of different approvals.

OPPORTUNITY

The increasing requirement of High Voltage Substations provides a good opportunity for the
growth of our Turnkey Systems, Products, Automation and Service businesses.

Power Grid is also planning to scale up the voltage level of the Transmission Network in the
country to 800kV DC by 2010 and to 1200kV AC by 2012. This will provide a significant
opportunity for companies engaged in the manufacture of high technology equipment.

Areva`s upcoming manufacturing facilities at Varodara, Hosur and Padappai will enable
Areva to meet the needs of the growing market in the future.

Areva is the first to have launched the construction of a local manufacturing facility for High
Voltage Gas Insulated Switchgears.
THREATS

A delay in funding, results in a further delay in the award of projects. During the previous
year, we observed a delay of several months for projects earmarked under World Bank
financing. Several large 765 kV substations & HVDC are to be implemented in the 11th
plan. A delay in such projects would have an impact on the planned growth of AREVA.

A rise in raw material costs, especially metals may put a strain on margins. The price of
copper, the main raw material required by your Company has increased substantially during
the last year.

Accelerated Power Development and Reform Program 2 is an important investment


scheduled during the 11th plan, but not cleared by the Government. This may impact the
growth of the Distribution segment business.

Future IPOs of private sector power projects, if not completed on time, may affect the growth
of the T&D business.

• Further, any unforeseen slowdowns affecting the growth of the Indian economy, may

adversely affect investments in the Power sector.

Customer Satisfaction Survey Questions


1. Do you like the Product of AREVA T&D?

Yes
No.

2. How would you rate the product of AREVA T&D?

Excellent
Good
Fair
Poor

3. State your opinion about the quality of AREVA T&D’s Product and services?
…………………………………………………………………………………………
…………………………………………………………………………………………
…………………………………………………………………………………………

4. AREVA T&D’s product and services have to improve on quality ?

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

5. On a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents


"Extremely Satisfied," how would you rate your level of overall satisfaction with
Company AREVA, Inc as a supplier?

1 2 3 4 5 DK/NA/RF
6. Why do you say that? What specifically are you satisfied or dissatisfied with
Company AREVA? Enter response below…

……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………

7. How likely are you to recommend Company AREVA to a friend or relative?


Would you say the chances are …

Excellent
Very Good
Good
Fair
Poor
DK/NA/RF

8. How would you describe the services of AREVA T&D?

Efficient ….. …… …… ….. ……. …… …… …… Inefficient.


Fast ….. …… …… ….. ……. …… …… …… Slow.
Reliable ….. …… …… ….. ……. …… …… …… Unreliable.

9. How would you rate the overall quality of your relationship with company
AREVA, considering all of your experiences with them? Would you say it is …

Excellent
Very Good
Good
Fair
Poor
DK/NA/RF
10. On a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents
"Extremely Satisfied," how would you rate your level of satisfaction with
Company AREVA in regards to customer service?

1 2 3 4 5 DK/NA/RF

11. On a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents


"Extremely Satisfied," how would you rate your level of satisfaction with
Company AREVA in regards to price?

1 2 3 4 5 DK/NA/RF

12. On a scale of 1 to 5 where 1 represents "Extremely dissatisfied" and 5 represents


"Extremely Satisfied," how would you rate your level of satisfaction with
Company AREVA in regards to value?

1 2 3 4 5 DK/NA/RF
Employee Satisfaction Questionnaire

1) Regarding the statement, "I am aware of Company AREVA overall strategy,"


would you say you …

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

2) Regarding the statement, "I understand what Company AREVA, as a company,


is trying to achieve," would you say you …

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

3) I feel my department gets support and teamwork from other areas within the
Company.

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable
4) Overall I am very satisfied with my job at Company AREVA …

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

5) My manager clearly defines my job responsibilities..

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

6) My manager/supervisor encourages high achievement by reducing the fear of


failure.

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

7) My manager/supervisor provides me with continuous feedback to help me


achieve.

Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

8) My manager/supervisor clearly communicates what is expected of me.


Strongly Disagree
Disagree
Somewhat Agree
Agree
Strongly Agree
Not Applicable

9) Your Extra views??


………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………..
Standard Operating

Process

FUNCTIONS OF DEPARTMENT AT

AREVA T&D

1- EXCISE & SALES TAX DEPARTMENT-


The Levy

Excise duty is the single largest source of revenue for central government in India.
Authority to impose excise duty by government has been given by article 246 of
constitution and at entry no-84 of list no i (union list) and entry no 51 of list no ii (state
list).under this authority constitution bifurcates alcoholic liquors opium and narcotics
from other goods and duty is levied on these products by state government called as state
excise duty. Central excise is a tax on act of manufacture or production while sales taxis
a tax on act of sale of goods. For manufacture of all the goods duty is levied by central
government called central excise.

At present the rate of excise duty for most of the product is @8% + educational Cess @
2% of ED + secondary & higher educational Cess @ 1% of ED except some items such
as petroleum products where the rate of ED is still 14%.

Registration

Every manufacture / First and second stage dealer of dutiable excisable goods desiring to
issue Cenvetable invoices is required to take a central excise registration. However if a
manufacturer is SSI and his yearly clearance is less than Rs. 90 lacs then he is not require
to get himself registered with central excise (Rule 9 of Central Excise Rules 2002).

Procedure for Registration

Before starting production or dealership to issue cenvatable invoice, an application in


prescribed format (annexure -1) with PAN no., detail of goods to be manufactured and
retail of premises has got to be submitted to Asstt. / Dy. Commissioner of Central Excise.
A registration certificate allocating PAN based 15 digit registration no shall be issued
within 7 days.

Even if there is some change in information furnished or change in constitution of the


firm, the registration will not change. However the change has got to be intimated to
issuing authority within 30 days of the change.
If the factory is required to be closed down or business is not carried, registration
certificate should be surrendered to the Superintendent of Central Excise.

Application form for Central Excise registration


-Annexure-1

Central Excise registration certificate (NW)


-Annexure-2

Valuation-

The Excise duty is payable on “transaction value” which means the price actually paid or
payable for the goods, when sold , and includes in addition to the amount charged as a
price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by
reason of, or in connection with the sale, whether payable at the time of the sale or at any
other time, including, but not limited to, any amount charged for, or to make provision
for, advertising or publicity, marketing and selling organization expenses, storage,
outward handling, servicing, warranty, commission or any other matter; but does not
include the amount of duty of excise, sales tax and other taxes, if any, actually paid or
actually payable on such goods.

Invoice-

Under rule 11 of Central Excise Rules2002, The excisable goods will generally be
removed from a factory under cover of an INVOICE. The invoice shall be serially
numbered in triplicate and shall contain the registration number, address of the concerned
Central Excise Division, name of the consignee, description, classification, time and date
of removal, mode of transport and vehicle registration number, rate of duty, quantity and
value, of goods and the duty payable thereon.

Before making use of the invoice series, in each financial year the serial numbers of the
same shall be intimated to the Superintendent of Central Excise having jurisdiction.

Excise Procedure-
Removal of Goods, Payment of Duty & Assessment As per rule 6, and assesses shall
himself assess the duty payable on the excisable goods and under rule 12 submit
following returns:-

(1) ER-1- Monthly return to be submitted by tenth of every month for production ,

clearance, duty payable and duty paid for previous month( annexure-3).

(2) ER-4- Annual financial information statement to be submitted by 20th November

of every year (Annexure-4).

(3) RR-5- Annual information regarding principle inputs to be submitted by 30th

April of every year (Annexure-5)

(4) ER-6- Monthly return to be submitted by 10th of every month for receipt and

consumption of principle inputs for previous month. (Annexure-6)

Tendering Department Process-


ISO

Unit (Tender Dept.)

Complete study of the specification

Data entry in enquiry (PROPAL)


Technical & commercial

)
Target Price Evaluation

Pass on to design department with


target price and target date (PMS)
Design gives PMS with raw materials
to be used and quantities

Offer submitted based on EAS

Then EAS (Estimation analysis sheet) is prepared and final selling price is brought out

Utility (one shot tender) Industry (negotiation based)

Opening of offers in front of all After first stage of offer


bidders done submission, it is followed by 2-3
times of negotiations
Tender Department fills
up the price for each raw
material in the PMS from
IEEMA
Lowest bidder gets the order Customers evaluate each bidder
technically as well as commercially
& then finally places the order on
the best suited bidder
Order handing over to contract execution
department

Customer Specification + final Offer +


Purchase Order + Amendment &
classification+ Final EAS & PMS

Customer specification, final offer


submitted, purchase order, amendment
and classification, final PMS and EAS

Role of IEEMA (Indian Electrical and Electronics

Manufacturer’s Association)-

IEEMA issue prices of raw materials every month. The price quoted is based on the cost
of raw material and labor cost as on the date of quotation. In case of any change in price,
then supplier give additional bill on the name of price variation. It is a liability of
customer to pay that bill. It may increase or decrease. In both cases details must be given.
Price variation is calculated according to following formulae-

Where,

P= Price payable as adjusted in accordance with above formulae

Po= Price Quoted

Co=Average LME settlement price of copper wire bars, two months prior to the date of
tendering

ESo=C&F price of CRGO, one month prior to the date of tendering

ISo=Wholesale price index no. for iron and steel, three months prior to the date of
tendering

Imo=Price of insulating material, one month prior to the date of tendering

TOo=Price of transformer oil, one month prior to the date of tendering

Wo=All India average consumer price index no. for industrial workers as published by
labor bureau , Ministry of Labor, Government of India, three months prior to the date of
tendering

MANUFACTURING

Different steps are involved in manufacturing are shown in this flow chart-

Core cutting
Coil winding

Core building

Dummy coil assembly

Active part assembly

Tanking

Testing

Dispatch

MANUFACTURING

Manufacturing plays vital role in supply chain system. It completes with the help of
many steps and these steps are interrelated to each other. In manufacturing one step act as
supplier for other step and other step act as customer for previous step so, manufacturing
proceed in a specific manner. Manufacturing of specific job will be completed in two to
three month. Different manpower involves in different steps of manufacturing. Various
steps of manufacturing are describe as follows-

Core cutting and core assembly-The basic raw material is core. It is made up of Cold

Rolled Grain Oriented steel (CRGO), also known as lamination. CRGO purchased from

A.K.Steel Corporation Butler U.S.A. . Laminations are cut according to design given by

customer. These sheets are of 0.23 to 0.35mm in thickness. These laminations are

assembled in such a manner that there are no gaps between joints of two consecutive

sheets. The entire assembly is done on a frame with the help of a tie rod and core bolts.

The entire core assembly is lifted and is used; mainly Meter cut line is used for giving

specific shape.
Coil winding- The winding are design to ensure high short circuit withstand capability,

uniform surge voltage distribution and effective heat dissipation are critical to

transformer reliability. Winding are made on layer setting winding machine vertical as

well as horizontal machines are available. A solid cylinder former of predetermine

diameter and length is used as base for winding disc and layer winding are manufacturing

according to design requirement. Complete set of low voltage, high voltage and tap

winding are assembled at this stage. Moisture content in insulating material of winding

assembly is removed by oven (winding autoclave) and before assembly winding are

individually pressed in a hydraulic press to required size.


Core and coil assembly- The component produced in coil winding and core assembly

stage is then taken into core coil assembly stage. The core assembly is vertically placed

with the foot plate touching a special assembly platform. The top yoke of the core is

renamed and the winding are assembled with core. Special core is given to electrical

connections of leads and tap changes. All the necessary joints are made secured by

applying special patented crimping technology carried out by trained personnel.

Vacuum drying- The active part can absorb moisture during assembly process;

therefore, a final drying process is carried out in a completely automated vapors phase

drying plant. This ensure through and uniform drying resulting in a clean and dry core

coil assembly which ensure long transformer life.


Tanking – The core coil assembly after drying and the tank supplied by the fabrication

department are taken into tank up stage. C ore coil assembly is placed into tank after

complete trimming and tightening procedure and properly locked up. Fitting like drain

values, high voltage and low voltage bushing, conservator, oil level indicator and

explosion vent are fitted on the tank.

INSPECTION

Basically three types of inspection carried out by customer are as follows –

Pre-inspection- Pre-inspection done, when raw material purchased from supplier or

vendors.

In-process inspection- This type of inspection is carried out during manufacturing or

product development.

Final-inspection- This type of inspection is done when product is finally developed and

ready for dispatch.

TESTING

Testing laboratory Designed following the most modern concepts of high voltage

technology available, in the testing laboratories all transformer and reactors are subjected

to the routine tests and measurement specified and accordance with IEC (International

Electro-chemical Commission) Keema, Netherlands and IS (Indian Standard) New Delhi

specification. These routine tests may be complemented by type and special tests, which

are carried out at the customer’s request or as part of an internal sampling procedure to

monitor quality on an ongoing basic.


Testing on reactor-

Routine test for 400kv class-

• Resistance Measurement (winding)

• Magnetizing Current

• Insulation Resistance Value

• Flash Test

• Partial Discharge Test

• Reactant Measurement

• Noise Level

• Vibration

• Impulse Test

• Switching Impulse Test

• Loss Measurement Test (with ten delta method)

Type test- Only one method is used in type test-

• Temperature Rise Test

Special tests-
• Zero Phase Sequence Test (relay trip)

• Capacitance Test & Delta Measurement

• Stress Measurement Test

MANUFACTURING PROCESSES

CORE CUTTING

The cold rolled, grain-oriented silicon steel (GOS) lamination are cut by microprocessor-
controlled slitting and cropping machines with an extremely high dimensional accuracy.

CORE BUILDING

Core laminations are carefully assembled and built-up erected on a specially made core
building platform, avoiding any unnecessary mechanical stresses.

COIL WINDING

Spiral, helical, continuous, intershielded and interleaved disc windings with multiple
strands of copper conductors are our standard for power transformer.

ASSEMBLY & TERMINAL GEAR

After pre-assembly, the coils are lowered on to the core legs. After top-yoke filling, they
are clamped using a hydraulic tool that ensures uniformly simultaneous pressure to secure
the windings. The current carrying joints are made by a fully automatic crimping
machine.DRYING & IMPREGNATION
A highly efficient vapor phase drying process, which ensures complete moisture extraction
with uniform heating at 120°c for 96 hrs, is used to coils and insulation components. In the
presence of vapor short circuits will happened.

TANKING

During tanking and final pipe assembly work, bushings and coolers are fitted onto the
transformer to prepare it for testing. Especially design, sophisticated tools and handling
equipment is employed to carry out all final assembly activities.

TESTING

The factory test laboratory is fully equipped to conduct all routine and type tests as per
national, international and in-house standards. On request, special tests such as Frequency
Response analysis (FRA) can also be conducted.

PACKING, DISPATCH & DELIVERING

Road dispatches used special low-bed mechanical / hydraulic trailers provided by


dedicated transporter to accommodate large consignments.
PURCHASE DEPARTMENT

SOURCING:-

• Sourcing refers to “a number of procurement practices, aimed at finding,


evaluating and engaging suppliers of goods and services.”
• Sourcing in Areva refer to the strategic planning of procurement of the material
with best quality at the best possible rates with best delivery schedules without
comprising on Areva values and quality.

BASIC FUNCTIONS

1. Market analysis

2. Vendor mapping

3. Vendor evaluation

4. Procurement

5. Performance monitoring

6. Minimizing the vender data base


7. Strategic procurement from soc(CHINA, INDIA, COREA)

8. Rate agreements

9. Vendor development

CHALLENGES IN SOURCING

1. Hike in raw material price

2. Availability issue in certain commodities like oil bushing

3. Reduce the customer complaints

4. Quality issues

5. Supplier OTIF(on time in full)

6. Inventory management

TYPES OF PURCHASE ORDER

Import P.O.-deals with import


Capital P.O.-capex procurement
Production P.O.-deals with the bought out items in production
Subcontracting P.O.-deals with the processing work on raw material
Non production P.O.- deals with the genex procurement
Service P.O.-deals with the services rendered by the supplier

PROCUREMENT PROCESS:-
(When rates & supplier are fixed)

PURCHASE REQUISITION

Purchase order (PO)


PURCHASE ORDER (PO) release

Follow up with the suppliers


PROCUREMENT PROCESS FOR THE MATERIAL NOT HAVING RATE

AGREEMENT

PURCHASE REQUISITION

RFQ (REQUEST FOR QUOTATION)

SELECTION ON QCD (QUALITY COST &


DELIVERY) BASIS
PURCHASE REQUISITION

RFQ (REQUEST FOR QUOTATION)

SELECTION ON QCD (QUALITY COST &


DELIVERY) BASIS

PURCHASE ORDER

PURCHASE ORDER RELEASE & FOLLOW UP


WITH SUPPLIER

Basic terminology in purchase

• INCO Terms

• Payment terms

• Warranty and guarantee

Lead time

ROLE OF DESIGN DEPARTMENT


BEFORE GETTING AFTER
GETTING
THE TENDER THE TENDER

MAKING DESIGNED RECEIVE TECHNICAL DETAIL DESIGNING


SPECIPECIFICATION THROUGH MARKITTING
DEPARTMENT

PRIMILIRY DESIGN AS PER SPECIFICATION PREPRATION OF


CUSTOMER DRAWING

PREPRATION OF PRICE MAKING SHEET


AND GURANTEE TECHNICAL PARTICULAR APPROVAL FROM CUSTUMER

HAND OVER TO MARKETTING DEPARTMENT


FINAL DESIGNIN

ELECTRICAL DESIGNING MECHNICAL


Winding sheet preparation Tank
Insulation bom Core cutting
Rim Yokk
Terminal gair
PURCHASING

MANUFACTURING
Earlier designing was done manually but now, in present time it is prepared by target
software.

Designing works before releasing the tender.

I S O (INTERNATIONAL SALES ORGANITION) place the Tender in marketing


department and marketing department sends it to design department for technical analysis
and subsequent preparation of PMS (Price Make-up Sheet)

Designing will be prepared based on the following basic requirement of the customer:

1:- M.V.A.(MEGA VOLTAGE AMPERE)RATING

2:- VOLTAGE RATIO (220/132/11)

3:- PERCENTAGE IMPENDNCE (REDUCE FAULT)

(IMPENDNCE MEANCE COMBANITAION OF RESISTANCE AND INDUCTION)

4:-TAPS (OLTC, OCTC)

This preliminary design as per specification is completed and decides and estimates
about 80% costs of copper and core. Overall costing depends upon the above analysis of
Core and Copper. Preparation of price making sheet and guarantee technical particulars
by design department, will take from two to seven days. Complete set of Tender
documents are being submitted to the customer for their review and analysis. If being L1,
and adhering to the Technical requirement of the customer, order will be placed on us.
Role of Design Department commences after getting the order. They do detail
engineering and designing of the job as per the approved GTP. This is the mutual
exercise of the Electrical and the Mechanical Team. Complete drawings in turn will be
sending to the customer via marketing department for their approval/comment. If there is
any comment from the customer, then that comment will be incorporated after discussion
and mutual agreement with the customer. After getting the final approval from the
customer, Design department releases the drawings to the purchase department for the
procurement of the raw material and other long lead items.
Planning Department
MAIN RESPONSIBILITIES

· Hands on knowledge of Planning, Commercial aspects, Material procurement

coordination, Site management issues

· Erection and Commissioning of substation

· Site identification and Survey.

· Drawings preparation and approvals and coordination.

· Forecasting of material required for project.

· BOQ of line & substation.

· Communicating and coordinating with client & vendors.

· Invoicing of supplied material to client.

· Daily progress report and gap analysis

· Implementing quality and safety plan.

· Knowledge of Cable Laying., termination

· Statutory documentation

· Plant Electrical work execution

· Auditing

This position will be responsible for: Management of GIS substation orders from the date

of receipt of commercially and technically clarified order to the date of final handover to

the customer at site.


1. Project Management

Set-up project organization (team-time-cost) and appropriate action plans. Prepare

milestones and deliverables

2.Customer interface

Communication with the customer to clarify all technical requirements and delivery

deadlines during contract implementation.

3. Production coordination

Interface with Sourcing, SCM and Production to ensure the timely manufacturing of the

equipment in order to meet the contractual deadlines

4. Interface with GIS Service

Coordinate site erection and commissioning with GIS service. Scheduling, resource

planning etc.

SAP (Systems Applications and Products)

SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and
Products in Data Processing. Over the years, it has grown and evolved to become the world
premier provider of client/server business solutions for which it is so well known today.
The SAP R/3 enterprise application suite for open client/server systems has established a
new standard for providing business information management solutions.

SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that

it is the world's largest inter-enterprise software company and the world's fourth-largest

independent software supplier, overall. The original name for SAP was German:

Systeme, Anwendungen, Produkte, and German for "Systems Applications and Products."

The original SAP idea was to provide customers with the ability to interact with a
common corporate database for a comprehensive range of applications. Gradually, the

applications have been assembled and today many corporations, including IBM and

Microsoft, are using SAP products to run their own businesses.

In 1973 the SAP R/1 solution was launched. Six years later, in 1979, SAP launched SAP
R/2. In 1981, SAP brought a completely re-designed solution to market. With the change
from R/2 to R/3 in 1992, SAP followed the trend from mainframe computing to client-
server architectures.

The development of SAP internet strategy with mySAP.com redesigned the concept of
business processes (integration via Internet). SAP was awarded Industry Week’s Best
Managed Companies in 1999.

SAP R/3 is arranged into distinct functional modules, covering the typical functions in
place in an organization. The most widely used modules are –

1. Financials (FI)

2. Controlling (CO)

3. Human Resources (HR)

4. Materials Management (MM)

5. Sales & Distribution (SD) and

6. Production Planning (PP)

SAP R/3 is a client/server based application, utilizing a 3-tiered model. A presentation

layer, or client, interfaces with the user. The application layer houses all the business

specific logic and the database layer records and stores all the information about the

system, including transactional and configuration data. SAP R/3 functionality is


structured using its own proprietary language called ABAP (Advanced Business

Application Programming). ABAP, or ABAP/4 is a fourth generation language (4GL),

geared towards the creation of simple, yet powerful programs. R/3 also offers a complete

development environment where developers can either modify existing SAP code to

modify existing functionality or develop their own functions, whether reports or

complete transactional systems within the SAP framework. Thus we deal with the
various tasks and activities carried out in sales, delivery and billing. Key processes are-

Start
Start

Create an order

D Is t Yes
el he
iv re Outbound
e
Ite ry r any Delivery
m ele
va
nt

No PGI

Billing

Stop
1. Creating Sales Orders-

There are various types of orders with which I have to deal such as.

a. Domestic Order

b. InterUnit

c. Export

d. Price Variance

e. Free of Charge

f. Repair

g. Spare Parts

h. Debit Memo Request

i. Credit Memo Request

2. Delivery- Delivery consists of four steps

a. Outbound Delivery

b. Picking

c. Packing

d. Goods Issue

3. Billing- There is following types of billinga.

a. Proforma

b. Invoice

C. Cancellation Document

d. Debit Memo
e. Credit Memo

There are specific transaction codes for all the above mentioned transactions such as

VA01 for creating new sales order, VL01N for outbound delivery etc.

PAYMENT CYCLE-

Finished product

Inspection approval by the customer

Delivering information from customer (D.I)

NO
YES

Sales invoice is prepared by commercial If site is not prepared for installation


department.

Sales Invoiced sends to the purchaser of


transformer
Purchaser becomes debtors

Payment is received on due date

BILLS PAYABLE & RECEIVABLE-

Mode of payment-

1- Cash

2- Cheque

3- Letter of credit

4- Direct payment

Note- In AREVA payment occurs through letter of credit

Letter of Credit-
Letter of credit is most secure instrument available to international traders. It is

A commitment by a bank on behalf of the buyer that payment will be made to the

exporter provided that the terms and conditions have been met, has verified, through

the presentation of all required documents. The buyer pays its bank to render the

service. It is useful when reliable credit information about a buyer is difficult to

obtain. It also protects the buyer since no payment obligation arises until the goods

have been delivered as promised.

Document Collection-

It is a transaction whereby the exporter interests the collection of the payment

to the exporter’s bank which sends documents to importer’s bank along with

instruction for payments, ladding receipt, insurance, bills of entry, etc.

Types of letter of credit-

1- Confirmed

2- Unconfirmed

3- Confirmed Letter-

Payment beneficiary bank immediate after submission of documents to the supplier


(when there is no discrepancy in documents)

Beneficiary bank send a reimbursement letter to applicant bank


Memo send to applicant for acceptance Within 7 days after

issuing a memo by applicant

bank will make a payment

without confirmation of

applicant

At the time of direct payment (with credit period)

After material receipt

Document required-(a) Acceptance letter

(b) Form AL

(c) Original triplicate exchange control copy


PAYMENT PROCEDURE

FILLING OF LETTER OF CREDIT APPLICATION FORM

APLICATIONBANK ISSUE A LETTER OF CREDIT BASED ON APPLICATION

FORM

ONE COPY SENT ONE COPY TO BENEFICIARY TO

APPLICANT BANK

BENEFICIARY BANK SENT TO SUPPLIER

IF SOME AMMENDMENT REQUIRE THEN

SUPPLIER INFORMED IT TO APPLICANT

THE AMMENDMENT LETTER SEND TO

BANK

AFTER AMMENDMENT IT’S SENT

TO BENEFICIARY BANK
PAYMENT AGAINST LETTER OF CREDIT (UNCONFIRMED)

Payment against letter of credit

After shipment of material

Document as per letter of credit to be submitted with beneficiary bank

Beneficiary bank sent it to applicant for acceptance

Applicant bank sends a memo to applicant for acceptance

After acceptance by applicant (original document releases to applicant by bank)

Bank will remit the payment to supplier on due date and debit applicant account on due

date
ACCOUNT DEPARTMENT

(Bills Payable Process)

Assume that we have already got customer order

Design Particulars Quantity (kg) Rate (Rs)

Dept
Copper ----- ----

CRGO ----- ----

Transformer oil ----- ----

tank ----- ----

Material requirement Planning (MRP)

Purchase Requisition (PR)

Purchase Order (PO)


Create Sourcing Team

Vendor

Requisition material check by the factory gate man like- purchase order no., vehicle no.,

goods, etc.

Goods received by store department

Checking

MIGO entry (assuming that no damage of goods and no insurance claims)

Stock A/c Dr.

To GR/IR (goods received / inventory received)

Checked by Quality department


Account department

Availed of CENVAT

Bills Processing

Accounting – GR/IR Dr

To Creditor A/c

(Payments are made through bank)

Creditor Ageing

Vendor Amount Due 0-30 (days) 30-60( days) 60-90(days) 90

(Rs) above(days)
A ---Cr
B ---Cr
C ----Cr
D -----Cr
E -----Cr
F ------Cr

Payment EFT (Electronic fund transfer)

Creditor A/c Dr.


To Bank A/c

(Bills Receivable process)

Sales

Invoice

Billing (If delivery instruction received),

6 sheets prepared- 1- Original copy (Customer copy)

2- Duplicate copy to Transporter

3- Sales tax Department

4- A/c dept. & Excise Dept.

5- Gate Entry

Released Entry

Accounts Entry – Debtors A/c Dr.

To Sales A/c

To Excise

Debtor Ageing

Cash collection instruction by Accounts Dept.


ANNUAL REPORT
CONCLUSION

The growth in India will be driven by the transmission and distribution segment.
Transmission now contributes about 60 percent to revenues with the remaining coming
from other segments. Over time, this mix is expected to change with industrial
distribution showing more growth.

Areva T&D India offers transmission and distribution services and also manufactures
power equipment. Globally Areva, which is also a significant player in nuclear energy,
derives about a third of its revenues from its transmission and distribution unit. The
company plans to invest around Euro 50 million in the country’s transmission and
distribution sector over the period 2007-2010.

During the study of sample 5 government companies which were the debtors of AREVA
it was found that the they were given more liberty in payment terms as compared to
private companies.

It would be more profitable if the payment terms of government’s company’s debtors are
revised accordingly and they are agreed on the terms that ensures regular inflow of
money and keeps the contract cash rich mostly.

Government’s company’s debtors were found to be late payers of dues in most of the
cases so this matter needs to be looked upon and certain strict measures need to be taken
as they are the one which buy in bulk and are regular customers of AREVA.
BIBLIOGRAPHY

BOOKS:

 Marketing Research: A guide to planning, methodology by


Paul N. Haugh.

 Marketing Research: Tools and techniques by Nigel Bredley.

 Marketing Management by Kotler

 Principles of Marketing By M Hough.

SITES

 www.amazon.com

 www.managementparadise

 www.businessmall.com

 www.quickmba.com

 www.marketinteacher.com

 www.google.com

You might also like