A REPORT ON INTERNSHIP PROJECT

AT

POWER SYSTEM CONTROLS, MYSURU

SUBMITTED TO BANGALORE UNIVERSITY IN PARTIAL FULFILLM ENT OF THE

REQUIREM ENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
AKSHAY.M
REG. NO: MB187609

UNDER THE GUIDANCE OF

Sanjay Dr. Anupama Malagi

Quality Engineer Professor
Balaji Autotech, Mysuru R V Institute of Management

R. V. INSTITUTE OF MANAGEMENT

CA 17, 36th Cross, 26th Main, 4th “T” Block, Jayanagar, Bengaluru-560041.
 CHAPTER-1

INTRODUCTION

1.1 INDUSTRY PROFILE

A concise presentation on business procedure of power system controls. Power system controls
are distribution and power transformer manufacturers that deliver high effectiveness and
performance. It is a private organization. It was established in the year 1989 and their line of
work is manufacturing and repair of power transformer, -they are equipped with state-of - the-art
technology and fitted with a wise consultative board and skilled engineers, technicians and
workers to deliver the highest quality transformers.

There are 43 employees working in this organization which includes 2 managers, 2 supervisors,2
accountants, 30 shop floor employees and 7 Helpers.

The average number of transformers manufactured in a month is 44.

Their customers are CESC(Power utility company), KUWS(Karnataka urban water supply and
drainage board), private industries, builders and many more.

Their customer bases are from Karnataka and Kerala

Competitors are kirloskar electricity, Vijay trafo, magnitude transformers etc.

 INDUSTRY PROFILE
Distribution and power transformers industry in India:
India is nearly getting to be significant power country among creating economies.
Power is a key constituent for the monetary development of the nation and is
legitimately connected to GDP of the nation. There has been a flood sought after for
power in India because of increment in limit use, industrialization, urbanization and
population.

Sharing perspectives on the power and distribution transformers industry in India,

Sahaj J Patel, Managing Director, JDS Group of Companies says, "As of now through
changes, for example, 'Power for all', administration intends to include 93 GW by
2022, this would fuel the interest for power transmission and conveyance hardware.
The Indian power and conveyance transformer market is figure to reach $2.9 billion
by 2022. By and by the administration is finding a way to reinforce the power
transmission and conveyances organize and has attempted imitativeness, for example,
UDAY for money related pivot of influence dispersion organizations. Further, the
administration has anticipated a speculation of Rs 146,000 crore. In transmission part
by FY 2019 which results popular for circulation and power transformers. According
to different specialists, the industry is going to increment by more than 10 percent
CAGR in the following 5 years."

With usage of UDAY and other discom schemes conspires there is a gigantic
increasing speed of infrastructural correction in India. This has impacted greeting for
offers for renovation and up-degree of existing T&D arrange, trusts Sanjib Mitra, Sr.
VP, Electrotherm Transformer Division, Electrotherm (India) Ltd. He includes, "Till
date 27 states and UTs have decided on the plan. Because of Indian government in
rescuing the majority of the discoms so as to make them monetarily independent with
the goal that they circulate power at sensible expense to household and mechanical
clients. It has truly dealt with every one of the issues spread crosswise over India
directly from remotest town to the closest town. So normally transformers are on
interest the whole way across India since vitality circulation in every case needs this
single most significant gadget in the system that is transformer."

Both power as well as distribution transformers is getting strengthened all across the
country. Also the discoms are instructed to reduce losses to the tune of 10 to 12 per
cent which means they have to go for more efficient transformers. Recently, BIS
circulation has issued strict norms on transformer losses and it is expected that in next
3 year’s time discoms have to replace all existing power and distribution transformers
with level 3 transformers (Level 3 means 5-Star Rated Transformers). Transformer
manufacturers have to manufacture and supply these new transformers in millions to
the discoms in a maximum period of 3 years.

Major growth drivers

The administration activities like DDUGJY, IPDS and developing FDI in power
industry are not many development drivers in the business. The development in
sustainable power source segment likewise considerably helps in increment sought
after for transformers.

Illuminating about the real development drivers Patel says, "Structure group of
transformers ought to be extremely solid and is one of the significant development
drivers in industry. They have to make the plans so that material required for
assembling transformers ought to be accessible uninhibitedly (numerous providers)
and less tweaked materials should be requested. The windings ought to be made
simple so that laborers discover them simple to gather. The other development driver
is coordination between various offices (dynamic way and tanks)."

He includes, "Aside from assembling transformers, transformer administration

industry can likewise be begun along these lines accomplishing outsider agreements
from governments or other private players. Current transformers and potential
transformers can be made from the wastage of distribution and power transformers
decreasing the manufacturing costs."
Government initiatives such as DDUGJY and IPDS which are planned for improving
the dispersion organizes in rustic and urban regions, individually, to a great extent
drive the appropriation transformer request in India. The interest from these plans is
relied upon to proceed and what's more new plans, for example, Saubhagya plot
which intends to give last mile availability to rustic customers should expand future
interest. Foundation portion (particularly Metro Rail Projects) is seeing increment
sought after for appropriation transformers and expanded government spending in this
section is set to drive request in future.

"For power transformers, intra-state transmission ventures (400 kV and underneath)

are required to drive request. State TRANSCOS will significantly drive this interest
and buoy new transmission extends through the TBCB model. PGCIL, which is
chiefly into executing and actualizing interstate activities, is wanting to forcefully
enter intrastate undertakings by shaping joint endeavors with state utilities," says
Ganji.

Key targets to achieve in transformer business

The objective for the transformers business just as the policy makers will be to check
the misfortunes related with circulation transformer disappointment which are
moderately higher in the Indian setting contrasted with worldwide benchmark. Ganji
accepts. What's more, he says, institutionalize and improve the productivity of the
transformers over some stretch of time which will add to generally proficiency
additions and reserve funds over the T&D framework activity.

Transformers represent critical capital consumption for the utilities. One of the key
objectives for the business will be to progressively move from CAPEX based
mentality to take a gander at the transformer all out expense of possession which in
long run will profit the utilities, Ganji noted.

Clarifying about the key focuses to accomplish in transformer business, Mitra says,
"We are known to be a quality producer and have built up our accreditations in
specific application. The majority of clients are rehash in nature since they try to keep
up great association with their customer on a long haul premise and consequently
consistently lean toward ET make low misfortune transformers. Particular field
consistently need odd appraisals and henceforth are not famous as structure and
assembling ability are fundamental orders in these sorts. In most recent 5 years we
have provided at the very least 800 transformers in sun based power part totaling to 3
GW in aggregate premise. At present we are holding number 1 position is sun based
market and group is sure to get huge scale orders on the grounds that in sunlight
based the fundamental parameter estimation is execution proportion and ET has been
number 1 there."
 ABOUT COMPANY

Power System Controls began in the year 1987 as a transformer repair and reconditioning
firm. With passing time and gaining experience the company ventured into oil regeneration
services for customers at site. In the year 2000 the company acquired government tenders
from electricity board to repair and reconditioning of transformers. With the available
experience the company forayed into manufacturing small and medium distribution
transformers.

What power system controls do?

It is a company that manufactures of distribution and power transformers ranging from

25kVA up to 5000kVA of up to 33Kv class. The company is a ISO registered company and
is certified under both bureau of energy efficiency (BEE) and bureau of Indian standards
(BIS).
The company produces high efficiency star rated transformers as per Indian standards. The
company also manufactures custom made transformer as per customer requirements.
Transformers with on load tap changers for utilities which require precision in supply voltage
is also manufactured.
The company has a long history of repair and servicing of transformer of BESCOM,
MESCOM and CESCOM.
Apart from this the company is also involved in oil regeneration services at site for many of
the major industries in and surrounding Mysore.

Business goals of Power System Controls

 To manufacture and supply highest quality transformer thus providing maximum

value to customers.
 To provide the best after sales service to its customers.
 To deliver products with utmost integrity and honesty.
 Quality policies of Power System Controls

 Power System Controls is a registered manufacturing industries and is certified by

BEE and BIS.
 The company only manufactures products as per the set standards by the government
of India.
 The company has an in-house design team to ensure that the product being
manufactured is of highest quality and precision.
 Inbound raw materials such as aluminum, copper and CRGO steel are inspected for
conformity to the standards set by the company. Any discrepancy in the material
procured is rejected and is returned to the supplier.
 Every unit manufactured is tested at every level of production to check its conformity
to the set standard and design specification.
 The finished product is tested by both internal as well as external testing engineers to
ensure that the product is of the guaranteed standards.

FINANCIAL PERFORMANCE

Distribution transformers fall under the 18% tax slab under the goods and service tax(GST).
In the past few years, due to the change in standards and regulation for transformer
manufacturers by BEE and BIS, Power System Controls has had fluctuating turnover in
monetary terms.
Following are the data of annual turnover of Power System Controls, Mysore.
 FINANCIAL YEAR TURNOVER IN RUPEES
2015-2016 2,94,57,740

2016-2017 2,12,97,018

2017-2018 1,59,09,998

2018-2019 2,73,10,795

As seen above there is regular changes in the turnover of Power System Controls.

A brief study of the changes in the turnover of the company can be seen below.

 From the above data we can concur that the turnover dropped by 27% from the financial
year 2015-2016 to 2016-2017.
 The turnover further dropped by 25% in the financial year 2017-2018.
 In the year the company saw substantial growth in turnover of about 71% in the financial
year 2018-2019.

Business process and details:

Power system control manufactures and supplies distribution and power transformer to a variety
of customers like apartments, commercial spaces, industries, quarries etc.
The company company’s business process can be as shown below:

Marketing

Purchase order
from customer

Procurement
of material

Manufacturing
of product

Testing of
product

Dispatch of
product
 The McKinsey 7-S Model

Structure

Strategy System

Shared
values

Skill Styles

Staff

Strategy: