Inspire

2009 - Q4 Edition
IS Newsletter from India Business Highlights, Achievements & Information

Dear Colleagues, We would like to extend our hearty congratulations to each one of you for the sustained hardwork put in during FY 2008/ 09. The Company is in the process Robert Wagner M. K. Vig of finalization of results for FY09 and the same shall be communicated to you in the coming days. At IS, our divisions business performance during the year in terms of new orders, sales and profit has been close to our expectations, but our cash balance is a serious concern. What helped us to sail through the current fiscal, was the healthy level of orders in hand from the year 2008 and our teamwork and commitment. In the midst of an economic crisis, this success testifies to the strength and resilience of our team. Even as we managed to navigate through this challenging market scenario, the global economic slowdown has also had its impact on some areas of our business. For instance, in the Industry Segment - certain verticals that cater to private customers such as steel, cement and paper have been hit. However, at the same time, IS has benefited from its diversified portfolio and new ventures like water technology and service businesses have done well, thus inspiring us to surge ahead and tap emerging opportunities in these segments. More over, the opening of two sales offices at Hyderabad in the Southern Region and Ahmedabad in the Western Region has also helped us to get closer to our customers and strengthen our network. In the current business environment, there has been a dip in the inflow of projects, and this has caused the competition to intensify. In such a scenario, we need to make a very determined effort to win orders. Our success in FY10 shall depend on order volume and payment collections thereby improving our cash balance. We would like to urge you to devote all your energies in this direction. At a time where there is a significant emphasis on environmental protection and energy efficiency, we must consolidate on our strengths and leverage on our brand's reputation. On our part, IS continues to have all those vital ingredients that are fundamentally required for its success. Our robust portfolio of SMART Technology products and Green solutions, together with a strong customer base and a committed family of around 725 members, will jointly help us to tide over all challenges in the environment. We cannot afford to relax even for a moment; rather we must further intensify our efforts towards new orders, procurement, sales and collection. That will mean focusing on our customers, on our competencies, on cost awareness and reducing the sales and cash cycle. Once again, we personally thank all of you for your hard-work and dedication. Only a selective coverage of major events has been provided here. In case you wish to know more, please feel free to talk to our colleagues in various groups. Wish you all the very best. Let's do it together. Robert Wagner Mukesh Vig

Contents
Important Visits ........................................... 2 Major Orders Received................................. 2 Major Projects Commissioned ................... 3 Completion of 25 years of Service & New Joinees .................................................. 4 Significant achievements by SVAI .............. 4 IS Safety OHAS Training .............................. 5 Seminar & Training on Project Site Management ............................ 6 Marketing & Branding Initiatives .............. 6

Let's briefly touch upon the highlights of the Q4 FY 2009

Important Visits
IS Global CFO's Visit to India Wolfgang Hermann, Global Divisional CFO - Industry solutions, recently visited India during August 2009. During this brief tour, he visited the IS offices at Kharghar and Kolkata, the SVAI Kolkata office, the Delhi office and Morgan India Office at Thane. The visit also served as a perfect platform for an open and motivational interaction in an informal atmosphere with the SVAI Kolkata, Morgan India & IS India management teams. Moreover, the entire team at India was able to get a first hand feel of the business objectives which the Divisional CFO had and the areas that required focus for the fulfillment of the same. During the review meeting of the existing IS business in India, the domestic market opportunities were discussed and Wolfgang Hermann gave a broad guideline to the team about the road map for the future of the business in India. Enhanced local value addition as well as new portfolio elements for infrastructure and green factories was discussed. The meeting was also of great relevance as it helped in identifying the present realities in the Indian market. Also in focus were the customer's core competencies and expectations in regard to key value additions and technologies from Siemens, side which in turn can enhance the customer's business in terms of productivity and profitability. Siemens Water Technologies Global CEO & CFO's visit to India Chuck Gordon, Global President & CEO- Siemens Water Technologies, B H Fischer, CFO Siemens Water Technologies and Jagannath Rao, President International Business visited India between September 14-16, 2009. The main purpose of the visit was to explore the market in India, and understand the dynamics and customer requirements in the water technologies segment. The visit included a meeting with Dr. Armin Bruck (MD, Siemens Ltd), V.V. Paranjape (Executive Director and CEO Industry Sector, Siemens Ltd) and the Industry Sector Management. During his visit, Chuck Gordon interacted with the IS India Management and IS Water Technologies. He also met some selective Indian customers, including a key meeting with K. Venkataramanan, Director & President (O) L&T Ltd at their Mumbai office. In the meeting, future possibilities of Siemens Water Technologies for supporting L&T in their projects and also the market opportunities related to the Indian Water industry were discussed. During his interaction with the India Water Team, Chuck Gordon noted that India is a focused market for Siemens Water Technologies and with the growing awareness of the environment friendly technologies, there are several opportunities which need to be explored and capitalized. Expressing his happiness with the water team's performance, Chuck Gordon and B H Fischer also hoped that they will continue this good work in the future.

Major Orders Received

MT Orders MT-Mining Western region bagged a significant turnkey order valued at INR 325 million from Elecon Engineering Co. Ltd for the electrical and automation for CHP & OHP at Brahmani Iron & Steel Co. The entire scope of the project is divided into 2 phases. Phase I of the project is scheduled to be completed by May 2010 and Phase 2 of the project is scheduled to be completed by February 2011. The scope of the order includes supply, erection and commissioning of LT MCC, HT & LT Motors, Power and Control Cables, plant engineering, automation for CHP and OHP and for 5 machines. Congratulations to the team led by Shailesh Mehta, Ranjana Sutar, Santosh Varma for this special effort. Siemens VAI MT bagged a significant order valued at INR 311.42 million from Jindal Steel and Power Ltd in July, 2009. Jindal Steel & Power Ltd (JSPL) already operates several steel plants in India with a wide range of products from billets, blooms, beam blanks and slab. Siemens VAI will provide all core caster components including main casting floor equipment, mold and strand guiding equipment and discharge equipment including torch cutting machine, deburrer, marker, roll gap checker and pusher/piler. Basic and process automation hardware and software, hydraulics, lubrication and cooling systems are also included. SVAI will also provide supervision of erection, start-up and commissioning. The first caster is scheduled to be commissioned within 22 months from the date of contract signing. When operational this will be one of the most advanced slab casters in India. It will also be only the second caster in India to be equipped with SVAI dynamic soft reduction equipment. Congratulations to the team lead by Santanu Datta, Abhay Kumar, Kinshuk Bandyopadhyay, Sourav Datta, and Sukanta Chattopadhayay. Special thanks to the help and support extended by SVAI UK team led by Rob Hunter, Eddie Winder, Nick Middleton Phil O'Brien and Markus Pichler from SVAI Linz.. MT-Mining Southern region in another significant achievement bagged the INR 276 million order from L&T ECC Division for their Anpara Coal and Material Handling Plant at Jharkhand. The approximate duration of execution and completion of the project is 29 months. The scope of supply in the project is the complete turnkey plant electrical for the material handling plant. Good track record and the successful execution of projects in the past with the same customer helped us in clinching this order. Congratulations to the team lead by Santosh Varma, M.K.Subramanian, Ajit Paracharan, K. Selvamuthukumar, V. S. Parasaran, S. Karthik, E. Ramesh and Niranjan Bharathwaj for this commendable effort. MT-Mining Western region bagged an order valued at INR 260 million from Mundra Port & SEZ for complete turnkey electricals and automation of CHP for West Port Mundra SEZ. Phase I of the project is scheduled to be completed by March 2010 and Phase II of the project is expected to be completed by June 2010. The scope of supply in the project are HT boards, LT PCC & MCC, LT Power & Control Cables, plant engineering, automation and AC drives for CHP from their port to power plant. Our unique load sharing technology for multi-motor conveyors was appreciated by the customer. Moreover our plant engineering and project management expertise, past track records of successful projects execution helped in clinching this order against stiff competition from ABB. Congratulations to Shailesh Pande, Atul Joshi, Santosh Varma and team for this significant effort. IN Orders IN cross industry bagged an order from ITC Ltd for their personal care unit at New Delhi in July 2009. The scope of supply in the project is complete power distribution including supply of 33/ 0.433kV transformers. The duration of completion of project is 6 months. IN has clinched this order on the basis of their past

track record in project execution. Congratulations to the team led by Sanjeev Gupta, Nikhil Chaudhari, Radha Agarwal, Uphar Srivastava, Gaurav Kumar and team for this significant effort. IN Cross Industry also bagged an order from Hitech Carbon, an Aditya Group company at New Delhi in August'2009. The scope of the order is complete 132kV switchyard including supply of 15MVA transformer.The duration of completion of the project is 7 months. Past project execution and working close with the customer helped in clinching this order. Kudos to Lokesh Chundawat, Manish Srivastava, Uphar Srivastava, Gaurav Kumar and team for this special effort. IN Cross Industry also bagged an order from Bayer Material Science for the Macro Colour chemical project at Delhi. The scope of supply of the order is complete LT power distribution. The expected duration of completion of the project is 5 months. Working in close coordination with the customer, client , support from IA&DT and KAM helped in clinching this order against stiff competition. Congratulations to Sanjeev Gupta, Hemant Gupta from IS Abhijit Tamabat , Karthik from IA/DT for this significant effort. IN cross industry also bagged 2 back to back orders from Maruti Suzuki Ltd for their GAC project and R&D project respectively at Delhi. The scope of supply in the first order is 30MVA power transformer and generator auxiliary compartment including 11 kV panels and the scope of supply in the second order is LT power distribution. The expected duration of completion of project is 9 months and 4 months respectively. INs relationship with the customer and and their track record in project execution helped during the order bidding process. Congratulations to Hemant Chauhan, Uphar Srivastava and team for this significant effort. IN cross industry also bagged the Melting expansion project from Hindustan Zinc Ltd at Haridwar in July, 2009. Past on time delivery of projects helped in bagging the order. The scope of supply in the project is complete LT power distribution systems. The duration of completion of the project is 4 months. Kudos to the team led by Mihir Mathur, Sagar Bharadwaj, Gaurav Kumar for this commendable effort.

IN cross industry also bagged the cement order from Shree Cement Ltd at Delhi for the 132/ 220kV Switchyard project. The scope of supply is complete switchyard solutions along with the generator controls. Congratulations to Mihir Mathur, Praveen Khandelwal, Gaurav Kumar and team for this significant effort. IN OLM bagged two back-to-back significant orders in Q4 FY 2008-09 valued at INR 95.4million and INR 79.8 million from Tata Motors Ltd for Pantnagar plant and Bharat Oman Refinery Ltd for its Bina plant in Madhya Pradesh respectively. The scope of the first is the complete integrated maintenance contract (Electricals + Mechanical + Automation + Instrumentation) for 3 years. Our past excellent performance in maintenance of electrical systems helped in clinching the order. The scope of the second order is the complete maintenance of electrical systems for the plant for 2 years. Strong recommendations from RIL and competitive pricing helped in bagging this order. Congratulations to Rajiv Gangnaik, Ashok Rane, Akhilesh Agarwal, Anshuman Tarey, Ajay Srivastava, Wati Imchen, Kamal Sheweramani, Sunai PaiVaidya and team for the significant effort. IN southern region, Hyderabad office bagged 3 significant orders in the last quarter valued at INR 85 millon. The first order (INR 18'0) was for complete plant electricals for the Green boiler project of ITC Bhadrachalam's paper plant. The order was bagged in July 2009 against stiff competition from Sterling & Wilson, but our past track record in execution helped us clinch the order. The expected duration for completion of the project is 6 months. The second order (INR 25'0) was bagged in August 2009 from Penna Cements for complete plant electricals and installation of its Tandur plant in A.P. The expected duration of completion of the project is 6 months. The third order (INR 42'0) was bagged in September 2009 from Praxiware India for complete supply of plant Electricals for the oxygen plant at JSW Torangallu. The client was a product purchaser but the Siemens turnkey connect helped in clinching this order. Congratulations to team lead by Bidyut Mazumdar, Deviprasad Pendyala, Taruni Eswar, Kruthiventi Viswanath, and Aditya Jayarao for this commendable effort.

Major Projects Commissioned

IN Projects Commissioned IN Western region successfully commissioned the 66kV switchyard extension project for Gujarat Fluro-chemical Ltd. This was the first project executed from the Ahmedabad office where IS has opened its new sales office last year. The project was commissioned within a time frame of 5 months and the customer has given a bonus as per contractual terms. Congratulations to Kunjan Shah, Mahesh Karia, Nitin Shetty, Viral Khandwala, Anil Pawar, Davies, Sonali Chakroborty, Datta Kamat, Jitesh Mehta, Sunai PaiVaidya and team for this significant effort IN Western region commissioned the 66kV Switchyard MV distribution project for Air Liquid Holding Pvt. Ltd. The project

220 kV/132 kV Switchyard of MSDS VI Project at SAIL Bhilai Steel Plant

was for the Liquefied Industrial Gas Manufacturing unit at Jakhadia, Gujarat. The project was completed in August 2009 and the duration of completion was 24 months. In this project, value addition in the form of engineering was from the pre-bid stage wherein load flow studies of the customer's plant were carried out and the major specifications and ratings of equipment (power transformers) were derived. All technical consultancies for designing power distribution schemes were also provided to the customer. During the project lifecycle, the execution was put on hold for 12 months as there was a delay in the availability of upstream power from GETCO which was within the scope of the customer. Congratulations to Bholenath Yadav, Sandeep Patil, Anil Pawar, Aneesh A, Umesh Yeolekar, Sweta Iyer, Gautam Mitra, Sunai PaiVaidya and team for this special effort. IN Western region commissioned the 220kV & 132kV MSDS VI project for SAIL, Bhilai. The duration of completion of the project was 16 months. This project was prestigious to the client M/s Bhillai Steel Plant as Main Switching and Distribution System (MSDS) is required for interconnecting the newly installed Captive power plant and the existing manufacturing site. This facility shall enable them to avail their captive power at a cheaper price, rather than import power from the Chattisgarh State Electricity Board. The 220 KV switchyard along with a 132 KV yard was completed on a turn key basis with responsibility for design, supply, installation and

commissioning. Being a Public Sector client, coordination with their various departments- Projects, commercial and PSD (user dept) and consultants was a real challenge and persistent efforts were required for making progress and timely completion. The Client appreciated the quality of work especially the site erection and civil work which was done by Siemens. The high regard held by M/s BSP's top officials on the Siemens brand was reinforced by the successful completion of this mega project. Mathew Samuel, Rani Sodhi, Ravindra Yadav, Nitin Shetty, Yuvaraj Patil, Sunai Pai Vaidya and team! Congratulations! IN Western region also commissioned the 33kV SRS project for BALCO, Korba in September, 2009 within a short duration of 3 months. The job was an enabling activitiy for their expansion projects. As the existing switchyard was found faulty all the equipment was shifted to a new site within the yard. The challenge was to carry out the modifications in the 'Live' switchyard without affecting the operational plant. The task was made more complex as the drawings for the existing system was not available with the client and modification had to be carried out very carefully and after taking all precautions. Inspite of the hurdles posed by the monsoon, the task was completed to the fullest satisfaction of the client. Kudos to the team led by Mathew Samuel, Rani Sodhi, Girish Chauhan, Jasmin Vyas, Anil Pawar, Suhas Patil, Sameer Parab, Sunai Pai Vaidya and team for this special effort.

Completion of 25 years of Service

Bharat Tanna Head MT-Metals, India successfully completed 25 years of service with the house of Siemens on September 9, 2009. P. Andrews, IN-Pl-Western region successfully completed 25 years of service with the house of Siemens on September 24, 2009

Z. Muralikrishna, IN-E&C, Southern Region successfully completed 25 years of service with the house of Siemens on September 25, 2009

Congratulations to you all!

New Joinees

Suresh Kumar Kedarisetty joined the organization as a Manager-Execution in IS IN OLM Southern Region at Chennai in July, 2009 Sandeep Kumar joined the organization as a executive in IS IN OLM Western region at Kharghar in September, 2009 Sandeep Rane joined the organization as a executive in IS IN OLM western region at Kharghar in September, 2009

18 Trainees joined the organization during July 2009 across various departments in the division. They include Ravikumar R, Shwetha K, Balasubramani Ramachandran, Sudarshan M, Kannan B, Shruti Sharma, Sampada V Khombare, Sumedh Deogade, Nitin R Patil, Ajinkya S Kokate, Smit K. Dedhia, Vrutanti P. Shah, Sourabh Arwade, Asmita Shrikhande, Hemal Dani, Prathamesh Pewekar, Raavi Kulkarni, and Rashmi Sujatha Karun.

We extend our hearty welcome to you all!

Significant Achievements by SVAI team

JSW Blast Furnace #3 has passed the 1mt milestone, within 219 days of operations they achieved the mega milestone of One million tons of hot metal production. Congratulations to the SVAI MT India Level 1 Automation BF#3 team lead by Jyotirmoy Chatterjee, Sudipta Chaudhuri, Samaresh Chakraborty, Anirban Kundu, Arijit Das, Bidesh Samanta, Kingshuk Sen Gupta, Anjan Kumar Chowdhury, Debasish Mukherjee, Subhayan Roy Choudhury, as well as Level 2 Automation BF#3 team comprising of Praveen Mishra, Tanmoy Roy and S. Samanta. project

Closure of the project - SAIL, Bokaro of DC ((Down Coiler) #4

The project was commissioned in August, 2007. The scope of the project was Installation of Technological Control System for Coiler #4 of Hot Strip Mill for SAIL Bokaro Steel plant was commissioned in the Quarter 4 FY 2008-09. The duration of the project was 46 months and it was completed three weeks earlier than the expected time schedule. The scope of work encompasses complete design, engineering, dismantling of equipment, manufacture and supply of equipment insurance, erection, testing, pre-commissioning, start up and commissioning, demonstration, establishment of performance guarantee parameters. Internal consortium who were involved in the project were SVAI MT Linz and SVAI MT India.

Occupational Environment Health & Safety training for the staff of SVAI MT, Kolkata and EHS Audits at project sites

EH&S Presentation Training / Siemens VAI MT kolkata.

Construction Site at TATA BLUE SCOPE STEEL Ltd, Jamshedpur

PPE - Personal Protective Equipment at Construction site/ Hot Dip Galvanizing Line Color Coating Line

IS Safety Initiatives
IS OHAS Safety Training & Certification IS OHAS Safety program was conducted by Bureau Veritas, an external agency training in the month of September, 2009 at Kharghar All the safety and quality in-charge from the regions, participated in this five day workshop. This workshop was followed by a certification examination.

Seminar and Training on Project Site Management

A seminar on Project Site Management was held at three locations - Kharghar, Chennai and Kolkata from August 28- 29, 2009. The participants in the seminar comprised of all the Project Site In-charges, Project Installation team, EHS Team, Safety and Quality team from the respective regions. Some of the important topics that were covered at the seminar were overview of Project Installation Function and role of site incharges, Safety Management, Quality & ISO 9001-2008 and Statutory Compliance. The seminar was inaugurated at Kharghar through a welcome address by Robert Wagner and M.K.Vig and which highlighted the importance of Project Management. It was followed by an overview of our division, the present market and business conditions in which the division operates in. The importance of customer expectations and relationship management at project sites were discussed by the respective regional IN Heads. The other speakers who presented at the respective locations were A. Davies, E.K. Sreekumar, Sonali Chakraborty, Manglesh Lachake, Vinod Nair, James Ferrao, Projit De, Syamal Mukhopadhyay, Asif, Babu Rao, PMN Nambissan, KC Vasudevan, MKB Anand, Srikanth Adkikar, Govind Chari, R.Narayanan, Kishore Yadao, Abhijit Ghosh, Sanjay Banik The following topics were touched in the seminar during the 2-day workshop and training. At the end of the seminar, experiences were shared by the site in-charges and feedbacks for improvement were taken.

Marketing and Branding Initiatives

IS participated in the following events during Q4 FY 2008-09. IS IN Pulp & Paper Technologies participated in the Papertech 2009 Seminar & Sponsorship event organized by CII at Hyderabad. In the seminar, best practices related to paper technologies were discussed and all the major players from the Indian Paper Industry were present. N.Prasad Head -IS IN India, Atul Apte, IS IN-Pulp & Paper was present during the 2 day seminar. Demonstrations through brochures, paper presentations, CDs and branding initiatives about the Siemens offering for the Paper Industry were made. IS Water Technologies participated as a Gold Sponsor in an event named 'Celebrating Soak - Focus Mithi' at the seminar hall of Bombay Stock Exchange at Mumbai on July 8, 2009. This was a branding initiative as far as Siemens Water Technology was concerned. During the event, T.M.Nagarajan Head-Water Technologies India participated in the Panel Discussion and shared the same platform with the Municipal Commissioner of Mumbai Municipal Corporation and the Mayor of Mumbai and other dignitaries from other business. The entire event was covered by the press, media and the Siemens water portfolio was highlighted. It was a good branding activity where Siemens tried to associate itself with a social cause for the citizens of Mumbai. IS IN participated in a Joint Marketing & Branding Campaign and Sponsorship event organized by Data Quest Magazine at New Delhi, Mumbai and Bangalore. It was a collaborative initiative where SunMicrosystems, Emerson and Siemens came together to address the Data Centre Business. The theme of the show was Business Metrics Approach to Data Centre Business. In the event, the branding for Siemens was done through banners, live presentations and corporate brochure circulation. N. Prasad, Gaurav Kumar and Rohit Talwar participated on behalf of IS IN Northern Region and highlighted our IN power portfolio for the Data Centre. This was an inaugural initiative from IS IN India, wherein awareness about our products and solutions were made in front of all participants from the IT Industry. We received a very good feedback and response in the event at the different venues. About 100-120 participants from the IT industry attended the event.