Birla Power - MBA Project

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The Yash Birla group is a part of the famous House of Birlas, started by

Mr. Baldeo Das Birla, the great-great-grandfather of the current


chairman. The lineage of the Yash Birla group is from Mr. Rameshwar
Das, Grandfather of Mr.Ashok Birla. The sudden demise of Mr.Ashok
Birla, in 1990, plunged his son Yashovardhan into the corporate jungle.
But the circumstances that lead him to take up the mantle when he
was only 23 years old, have helped Yash and his Group to emerge
stronger than ever before. Yash, as he is often called, not only nursed
back sick companies to health but moved on to give the Group a
dynamic strategy. He integrated operations of various companies,
moved out of unrelated areas, and expanded operations in related
areas. He gave the Group a dream, a global vision and an integrated
approach.

The Yash Birla Group consists of a number of companies spread all over
India. Under the charismatic leadership of the Chairman, successful
forays have been made into many areas like Generators, Multipurpose
Engines, Chemicals, Yarns, Pipes, Consumer Durables, Precision Cutting
Tools etc. After achieving a combined turnover of Rs.1500 crore, the
Group is now set to make a mark in the IT world as its latest
diversification.

Strategy

The Group strategy is to consolidate the existing operations and to

focus on areas like IT, tools, chemicals and consumer durables.

Overseas

Partners

Our foreign partners like the Yamaha Motor Company from Japan,
Oswald

Forst

GMbH

from

Germany,

Samputensili

from

Italy,

Klingelnberg Solne of Germany, Kennametal Inc. USA, Besmer of


Germany , Fonderia Perucchini SPA of Italy, ACME Motori & Mecc Alte
are established leaders in the global market. The Group has benefitted
from their expertise, and we are a cost efficient sourcing base for
them.

Future Plans
Plans are on the anvil to get into the Cement industry and to leverage
the strong, marketing and distribution network, and make a related
diversification into consumer durables like air-conditioners and electric
radiators. The plans include increasing investments in the thrust areas
identified which are chemicals, consumer durables and IT.

Social Responsibility

Fully aware of its social responsibilites, the Group is supporting the


cottage and village industry sector by establishing centres in Bhadoi,
Srinagar, Jaipur and Agra for producing hand made carpets. The
support is not just financial, but for marketing and designing as well.
Help is also being provided to the families of artisans so that adult
members can contribute towards creating some of the most exquisite
carpets.
Profile
Birla Power Solutions Ltd., a Yash Birla Group Company has many a
firsts to its credit. It was the first Company to manufacture portable
generators

in

India

in

1986.

Company

has

the expertise

of

manufacturing 2 stroke as well as 4 stroke engines. The Company is


presently producing a wide range of Generators catering to the power
requirements 500W to 5.5 K.W. It was the 1st Company to roll out Self
Start Gensets and recently became the 1st Company to launch emission
compliant Generators under the brand name BIRLA ECOGEN.
The present domestic market share of BPSL Generators is around 32%.
Till date, we have more than 5.5 lacs satisfied genset owners in every
nook and corner of the country. BPSL has a network of more than 850
dealers spread throughout the country. These dealers are given
extensive training and are well equipped to cater After Sales Service
for generators.
The modern manufacturing unit is established near Dehradun
(Uttaranchal) in a very scenic and serene backdrop of hills & forest,
with a manufacturing capacity of 75000 Gensets and 25000 Multi

Purpose Engines. The total area of the factory is 150000 sq.mtrs and
the covered area is 17000 sq.mtrs. The connected load is 1550 KVA.
Though the power availability in the region is good, Company has DG
sets of 850 KVA as stand by captive power.
Alternator shop has fully automatic machines capable of producing
single phase self excited synchronous alternators upto the capacity of
4.5 KVA. The Machine shop has 79 machines out of which 10 are CNC
such as CNC Lathes, CNC Machining Centre & CNC Drill Tap Centre. The
Paint shop is having Dip Phosphating to accommodate upto the cube
size of 800 mm and conveyorised electrostatic spray painting alongwith
Thermic fluid baking for cube size of 600 mm.
There are 550 employees in the Company out of which around 200 are
skilled workmen, most of them are ITI educated. Work culture at
factory is very cordial and there have been no loss of production due to
Industrial related issues for the last 3 years.

The Company recently diversified into Multi Purpose Engines and its
application products such as Pumpsets, Sprayers, Vibrators and Lawn
Mowers etc. The engines manufactured by the Company are useful
particularly to small / medium scale farmers having small land
holdings. The products are extremely compact, light weight, portable
and efficient and are becoming popular in the farming community
because of their reliability, low maintenance and low running costs..

The company exports significant percentage of its production to


various countries around the world. Both Generators as well as Multi
Purpose Engines are gaining increasing acceptance in the African sub
continent, Middle East and Far East countries. Our products are sold in
competition with known and renowned international brand names such
as Honda, Robin and Briggs etc. Engines exports is a relatively new
field and is gaining popularity in many countries.
The Company has launched 500VA Inverters Ecogen 625 for domestic
segment in October2000 and 1250 VA in June2001. The Company has
developed Dual Fuel Generators (run on kerosene / LPG) to be
launched in the markets where kerosene availability / price is
becoming out of reach. The Company has also plans to increase its
range of Pumpsets and Sprayers in the lower power range.
The Company got ISO 9002 in October,1998.. Further, Company has
undertaken the implementation of ISO-14001 for which the Company is
successfully awarded ISO14001 certification.. The Company has just
completed the implementation of BaaN ERP system at works and will
shortly connect all its Regions and Head Offices to the Factory for on
line

connectivity.

BPSL STRENGTHS 1. Manufacturing


a. Locational Advantages

The manufacturing unit is situated on the main high way

between Haridwar and Dehradun in the lush green


surroundings of forest area. It is well connected to
important towns. Dehradun being the seat of excellent
education helps to retain talent of middle and senior
management at the factory. It is also well connected with
Delhi by road / rail where most of the quality goods /
vendor based. Industrial culture is excellent and so also is
the local and civil administration.
There is an abundance of clean water, uninterrupted power
supply and fresh crisp and clean air.

b. Factory

Constructed in 1985, the factory has covered area of 17,000


sq.mtrs. Construction is A class, well ventilated with
industrial floor and high roof. The large industrial hall
allows flexibility in layouting and manufacturing.

The manufacturing set up consists of standard plant and


machinery from the best manufacturers in India and
abroad.
The machine shop particularly has a flexibility of machining
aluminum castings of various size and shapes.

The alternator shop similarly has a modern winding,


varnishing and testing plant to produce high quality
alternators upto 4 Kva capacity.
The paint shop has conveyorised electrostatic painting
alongwith dip phosphating which produces high quality
automotive finish components having long life glossy finish.
The labour is highly productive, good educated and
dedicated to the work. This being the largest industrial unit
in the surrounding carries a name in the adjoining villages
and the workers are proud to associate themselves with this
unit.
The plant has the flexibility and capacity to produce around
1 lac engines and alternators upto 4 Kva capacity. There is
enough land available for expansion if needed.

2. Marketing
Birla Power Solutions Ltd. has a sound foundation of being in the
market for more than 15 years. As the product is sold all across the
country, we have very strong and dedicated dealers numbering more
than 850. This strength of distribution and sales logistics is an ideal
platform for launching and marketing of any allied product.
The sales logistics and administration are fully equipped to handle the
despatch and distribution of products in the shortest time at the
lowest cost to any corner of the country.

Being an engineering product, the necessary after sales service is fully


in place. The dealers as well as the sales staff is fully equipped to
maintain and service the products of engineering / automotive nature.

3. Other advantages

Birla Power Solutions Ltd. has offices in all major cities which
serve as a back bone for sales and marketing of our products.

The manufacturing set-up is on ERP.

The Company has ISO9002.

All products of the Company are fully emission compliant and ISI
marked.

The Company has another manufacturing unit at Paonta which


gives the strategic advantage of tax optimisation.

POWER UNLIMITED
The Yashovardhan Birla group is a part of the famous house of Birla.
Birlas have been a significant part of Indian public life since the
freedom struggle. Post independence they played a significant part in
scripting an industrial development of the country. Chemistry of the
success of Birlas can be attributed to a successful marriage between
tradition and professional needs in tune with time.
Yashovardhan Birla group has various industries spread all over India.
Under the dynamic leadership of Yashovardhan Birla, the company

made successful forays into many areas like generator sets,


multipurpose engines, chemicals, yarns, pipes, consumer durable,
precision cutting tools etc. The groups combined turnover is Rs.1500
crores. Over the years the group has identified new pastures to start
operations. The latest in the menu of diversification is Information
Technology. The strategy of the group is consolidation in tools,
chemicals and information technology and consumer durable. With an
eye on markets overseas and modern technology, the group has
established tie-ups with the market leaders like the Yamaha Motor
Company (Japan), Oswald Forst (Germany), Samputensili (Italy),
Klingelnberg Solne (Germany Kenametal Inc. (USA), Besmer (Germany)
and Fonderia Peruchini Spa (Italy). Needless to say, the group has
reaped benefits from such ventures. In 1986, the group gave India the
first portable diesel generator set. Today, the soft purr of the genset is
audible in every nook and corner of the country making it Indias
largest

power

solution

provider.

Birla

Ecogen

is

product

manufactured by Birla Power Solutions Ltd. in collaboration with


Yamaha Motor Co. Ltd. Japan. Birla Ecogen is an advanced genset. As a
group committed to social responsibilities, the product is designed to
minimize the harmful effects on the environment. It is the most
ecofriendly genset. Every Birla eco-friendly genset confirms to the
strict pollution control norms of the Central Pollution Control Board,
Ministry of Environment and EPA of USA. The gensets have been
specially designed to cut down the emission like carbon monoxide and
hydrocarbons without sacrificing the efficiency. Birla Ecogen 4-stroke

gensets incorporate new features such as, PR alternators for flicker


free power, automatic fuel changeover system for convenience, oil
alert system to prevent engine from seizure and side fuel tank for
safety in case of accidental leakage of fuel. These gensets are UPS
compatible and are effortless to start. Unlike most gensets the fuel
tank is not located on top of the engine, but on the side which ensures
that in event of any fuel leakage there is no explosion or accident.
Birla Power Solutions Ltd. is the first company in India to have ISI
marked engines and alternators for its entire range of gensets. Today it
is certified both with ISO 9002 and ISO 14001. The company has a
network of 850 dealers, which ensures after sales service and other
demands of the customers.
Care for Gensets

Keep the genset on a level surface.

Switch off the genset before refueling and shifting.

Operate the genset at least 1 meter away from a building wall or


any equipment, to allow good air circulation for effective
cooling.

Do not put a dust cover on the genset while in poor cooling,


overheating and malfunctioning.

Operate the genset away from inflammable objects.

While refueling, be sure that the engine is not running.

Set the fuel cock lever at the OFF position before refueling.

Avoid spillage and quickly wipe off any spilt petrol.

While refueling, ensure that no dust or water gets mixed with the
fuel.

After refueling, replace the fuel tank cap.


Mission & Vision of the Company
1. TO BE A PROFITABLE COPMANY.
2. TO BE MARKET LEADERS BY SELLING HIGH QUALITY
PRODUCTS AT THE REASONABLE PRICES AND PROVIDE
PROMPT AND EFFICIENT AFTER SALES-SERVICE.
3. TO STRIVE FOR EXCELLENCE.
4. TO LOOK AFTER WELFARE OF OUR EMPLOYEES.
5. TO BE LEADERS IN OUR SOCIETY.
OUR VISION

To Earn the Trust of Every Indian Household


Credentials

Manufacturing Facilities

PLANTS

DEHRADUN

POANTA

SAHIB

Land Area

(UTTARANCHAL)
1493276.58 Sq.Mtrs

(HIMACHAL PRADESH )
5760.85 Sq Mtrs.

Total Covered 19175.00 Sq.Mtrs

646.56 Sq Mtrs

Area
Capacity
1,25000 units/ year
12,000 Unit / Year
Manpower
374
16
Manufacturing Portable
Gensets Portable
Portable

Enginees Portable

Portable Water Pumping Portable


Set.All

Gensets
Enginees

Water

Pumping

critical sets

components
Certification
Address

manufacturing in House
I S O 9002 & I S O 14001 I S O 9002 & I S O 14001
Vilage - Lal Tappar P.O - Village - Batta Mandi Yamuna
Resham

Phone
Fax
E - mail

Majri

Distt

- Nagar RoadPaonta Sahib Distt.

Dehra Dun Uttaranchal

Sirmour

0135 - 2499341
0135 - 2499227
[email protected]

Himachal Pradesh
01704 - 224740
---

Research & Development


Research & Development Our R & D Division is currently working
on the following projects :
6. Development of Acoustic hood - for generator sets.
7. Development of Gensets - capable of giving 400 Hz A/C
output.
8. Development of Autostart series of gensets.
9. Development of following applications - for our existing

10.

multipurposeengines, Lawn Mowers, Rain Gun and Jet

pumps.
11.

Development of 5 KVA Generator sets.

Birla Power Solutions Ltd.


Founded in 1984, Birla Power Solutions Ltd. is a pioneer in genset
technology in India. It is also the first company to have ISI marked
engines and alternators for its entire range of gensets. Birla Power
Solutions Ltd. also gave India its first 4-stroke portable genset and
have recently launched Birla Ecogen gensets in collaboration with
Yamaha Motor Co. Ltd., Japan, their new range of eco-friendly and
advanced gensets. With a network of over 400 dealers spread across
India and ISO 9002 & ISO 14001 certification, Birla Power Solutions Ltd.
is the nations largest provider of power solutions.

BIRLA ELECTRICALS
Birla Electricals Limited is a collaboration between Yash Birla Group
and USD 1 Billion Italian white goods major Delonghi s.p.a and markets
various ranges of consumer durables and home appliances in India. The
company was the first to launch electric oil filled room heat systems.
These systems were well received by the consumers, who were till
then dependent on obsolete and age old technology of heat
rods/conventional heaters. Birla Electricals also has a range of airpurifiers which are sold under the brand name 'Arrapuro'. There are

ambitious plans to expand the product range which include cooking


ranges, electric bar-be-ques, cooking hobs, floor care appliances and
heating appliances. Looking at the growth of the industry, the company
also has plans to introduce products like hand blenders, juicer mixer
grinders, frying pans, OTG, toasters, irons and kettles.

BIRLA TRANSASIA
The company is a well reputed manufacturer of high quality tufted and
woven carpets. The carpets are exported to many countries. Birla
Transasia has won several awards for being the largest exporter many
times. It has many hi-tech international plants from Petrie & Mcnaught
and Heig Chandwik, UK for dyeing, Mackie International, UK for
spinning, Edgar Pickering & Cobbel, UK for tufting and Cobbel, Uk for
latexing. It has also instituted the latest Axminster machine from David
Crabtree, UK for designer carpets. Not only has tapped successfully
into the institutional and hospitality segment in India with its wall to
wall carpets in cut-pile, loop-pile and AX-minster designs but has also
built a place for itself in many a homes and offices with its
contemporary and traditionally designed rugs.

ZENITH LIMITED

ZENITH LIMITED is a Multifunctional Organisation having a turnover of


US$. 100 million per year, manufacturing a wide range of products like
STEEL PIPES, DYESTUFF INTER-MEDIATES, SYNTHETIC TEXTILE YARNS
AND STEEL CUTTING TOOLS.
ZENITH LIMITED which was incorporated in 1960 belongs to the HOUSE
OF BIRLAS which is among largest Industrial House in the Private Sector
of India. The company started with manufacturing Steel Pipes and soon
after in 1964, pioneered their exports from India.
ZENITH LIMITED has been repeatedly honoured by the Government of
India with many awards for outstanding export performance. Not only
this, looking at its continuously excellent export
performance, the Government of India has conferred
the status of EXPORT HOUSE on ZENITH LIMITED.

BIRLA 3M LIMITED
Birla 3M is the Indian subsidiary of the US based Minnesota Mining and
Manufacturing Company (3M), one of the worlds largest manufacturing
company. A joint venture between the Ashok Birla Group and 3M
Corporation, 3M is the majority stakeholder with a stake of 76%, while
the Ashok Birla group holds 8%. The company has introduced over 2,000
diverse products in the health care (micropore surgical tapes, Littman
stethoscopes), consumer office markets (post-it notes, scotchmagic
tape and 3M brand overhead projectors), traffic and safety

(scotchlite), tape and automotive segment (scotch packing tapes and


scotch masking tapes), consumer products (Scotch Brite), industrial
market (abrasives), signage market (commercial graphics).
Birla 3M is into trading and manufacturing of goods. The Company
directly imports the traded products from the parent in US or its
subsidiaries in other countries. The company's products find
applications in various user industries. Some of its main customer
segments include automotive and auto-ancillaries, healthcare, home
markets and traffic & safety. The extensive diversification of its
product profile helps the company to spread out the contributions from
different segments and to keep its operating risk profile under control.
In F12/01, Birla 3M's net sales were at Rs2.19bn with an operating
profit of Rs341.1mn and net profit of Rs138mn. In Q1 2002, companys
sales decreased by 12% from Rs637mn in Q1 2001 to Rs560mn. Other
income increased sharply from Rs1.8mn to Rs7.6mn. Company's
operating profit decreased marginally by 0.9% to Rs95.4mn. Interest
expenses decreased sharply by 41% from Rs13.1mn to Rs7.7mn. Net
profit after tax increased by 16% yoy from Rs37.4mn to Rs43.4mn.
DAGGER FORST
Established in 1965
Strengths :

High skills acquired over decades.

Collaborations with world's best companies such as - 'Broaches :


Oswald Forst GmbH, Germany' and 'Gear Shaving Cutters :
Samputensili SpA, Italy'.

Continuous upgradation of technology through collaboration.

Engineers trained at Oswald Forst, Germany and Samputensili,


Italy.

Expertise in use of various grades of High Speed Steel, Powder


Metallurgy.

Highly controlled Heat Treatment facilities calibrated & certified


by most arduous Nuclear Power Corporation.

Computer Aided Design.

High precision CNC Profile Grinding machines.

Most capable for new developments.

Meeting intricate high precision requirement of W. European


customers.

Providing Total Solutions for cutting tools.

Exports :
Europe & UK, USA, Korea, Taiwan, S. Africa, Indonesia,
Iran, Australia, etc.

BIRLA KENNAMETAL
Birla Kennametal Ltd, established in the year 1986, is a joint venture
company between Yash Birla Group of India and Kennametal Inc, USA.

Yash Birla Group is a pioneering Industrial House with vast industrial


empire in India unarguably well known to every literate Indians and
Kennametal Inc. with US$ 2.00 billion turnover is the
undisputed global market leader in Metal Working and
Mining cutting tool products. Kennametal also markets its products
under several highely respected, widely recognized brand names,
including Kennametal, Kennametal Hertal, Hertal, Rubig, Cleveland
Twist Drill, Greenfield, Hanita, Circle Machine, Vermont Tap and die,
Disston, Blu-Mol, RTW, Carbide and Adaptive technologies. Birla
Kennametal also markets full range of Metal working and Mining
products of Kennametal in India.
Birla Kennametal manufactures wide range of precision AT3 Class Steep
Taper as well as HSK tooling in their most modern and well equipped
manufacturing facility at Aurangabad.

BIRLA PERUCCHINI
The concept of establishing BIRLA PERUCCHINI LIMITED was conceived
in the year 1997. It was decided that it will come under joint venture
with FONDERIA PERUCCHINI SPA of ITALY, who have 50 years of
experience of foundry and 25 years experience specially in this
particular line, which is of prime importance.
Production commenced in May 1998. Originally, the company was
established for 1000 tonnes in the 1st year, 2000 tonnes in the 2nd

year. The present capacity at Birla Perucchini is around 2000 tonnes


and it is expected to increase to 4000 tonnes in the next financial year.
Birla Perucchini has a manpower strength of 65 employees, including
40 technical personnel. Some of the key personnel responsible for
Production, Maintenance, Pattern Manufacturing and Quality, are
trained at Collaborator's Plant in Italy, for technical know-how. In
addition to the above, the collaborator's technical representatives
personally visit the plant to update the quality of the product and
processes and educate the personnel. In the month of August 1999, we
have been awarded ISO 9002 : 1994 by accrediting agency BVQI.
Moreover, we are going for QS 900 and expect to get it by July 2002.
All the processes and equipment are jointly selected and established
by Birla Perucchini and it's Collaborator - Fonderia Perucchini's expert
engineers.

SHLOKA INFOTEC
The latest offspring of India's oldest, leading and socially proactive
private sector enterprise, 'The Birla Group' is Shloka Infotech. 'The
Birla Group' has continuously supplemented towards the constant
evolution of the nations' education pattern. Shloka Infotech, an
'Interactive Multimedia Learning Programme', will extend its services
towards building the infrastructure for a more coveted tomorrow and
through this program will strive at converting Words into a Reality and

Thoughts into a Vision'. Shloka Infotech also undertakes software


development for corporates.
BIRLA PERUCCHINI
The concept of establishing BIRLA PERUCCHINI LIMITED was conceived
in the year 1997. It was decided that it will come under joint venture
with FONDERIA PERUCCHINI SPA of ITALY, who have 50 years of
experience of foundry and 25 years experience specially in this
particular line, which is of prime importance.
Production commenced in May 1998. Originally, the company was
established for 1000 tonnes in the 1st year, 2000 tonnes in the 2nd
year. The present capacity at Birla Perucchini is around 2000 tonnes
and it is expected to increase to 4000 tonnes in the next financial year.
Birla Perucchini has a manpower strength of 65 employees, including
40 technical personnel. Some of the key personnel responsible for
Production, Maintenance, Pattern Manufacturing and Quality, are
trained at Collaborator's Plant in Italy, for technical know-how. In
addition to the above, the collaborator's technical representatives
personally visit the plant to update the quality of the product and
processes and educate the personnel. In the month of August 1999, we
have been awarded ISO 9002 : 1994 by accrediting agency BVQI.
Moreover, we are going for QS 900 and expect to get it by July 2002.

All the processes and equipment are jointly selected and established
by Birla Perucchini and it's Collaborator - Fonderia Perucchini's expert
engineers.

SHLOKA INFOTEC
The latest offspring of India's oldest, leading and socially proactive
private sector enterprise, 'The Birla Group' is Shloka Infotech. 'The
Birla Group' has continuously supplemented towards the constant
evolution of the nations' education pattern. Shloka Infotech, an
'Interactive Multimedia Learning Programme', will extend its services
towards building the infrastructure for a more coveted tomorrow and
through this program will strive at converting Words into a Reality and
Thoughts into a Vision'. Shloka Infotech also undertakes software
development for corporates.

SOUTH PACIFIC VISCOSE


Located in Purwakarta, Weat Java Indonesia, pt. South Pacific Viscose
is a joint venture between the Yash Birla Group of India, Lenzing Ag of
Austria, Pura Golden Lion and Mr. Ali Noor Luddin of Indonesia. It
started its production in 1983 and since then has become the largest
producer of Viscose fibres in Indonesia. The present capacity is over
110,000 MT p.a. With the addition of the third line in December 1996
and the overhaul of its first line in 1997, SPV now has the newest and

the most advanced Viscose fibre machines in the world. It has also
expanded its customer base to Korea, the Philippines, Malaysia,
Pakistan and China. SPV also maintains stringent environmental and
pollution controls in all the stages of its production, making it a leader
in Asia for its environmental standards in the Viscose industry.

BIRLA LEASING & INVESTMENT CO. LTD.


Birla Capital & Financial Services Limited, is the financial services arm
of the group. The Company started its operations in 1996 as Birla
Leasing & Investment Company Limited.
Companys initial operations were restricted to Mumbai, however ,
over the period, Birla Capital has expanded its branch network to 15,
with business operations in over 50 centres across the country. Birla
Capital offers a wide range of financial products and services to its
customers, in both the retail as well as the wholesale segment. The
Company has its presence in both Fund Based as well as Fee Based
businesses.
Fund Based Businesses

Leasing

Hire Purchase

Inter Corporate Deposits

Consumer Finance

Strategically, Birla Capital has its focus on the retail lending business,
which is still under serviced in the country. The retail business also
helps in diversifying the risk in the portfolio, resulting in higher
collection efficiency.
Fee Based Businesses
Birla Capital has ventured into financial distribution and advisory
business under the brand Birla Finace Shop;/. The Company is one of
the upcoming distribution houses in the country with a unique concept
of providing the entire range of financial service products under one
roof, such as ..Mutual Funds, Bonds, Fixed Deposits , Housing Loans,
Auto Finance, Personal Loans, etc.
Having left the difficult times behind, the Company is aggressively
looking forward to take a quantum leap and expand its business
operations in both fund and fee based businesses and establish itself as
a prominent Financial Service Company.

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