Nuetech Solar Systems Private Limited

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CHAPTER 1
INDUSTRY PROFILE COMPANY PROFILE
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CHAPTER 1
INDUSTRY PROFILE
The primary consumer segment using solar heater is of educated, cost conscious people, who are ready to take the option of saving electricity and help environment. The other segments are still largely unexplored. Finally the economic conditions of India also pose a challenge to solar power heater penetration where those who genuinely cannot afford electricity, cannot pay for the upfront cost of the solar heater and manage with burning wood or other fuel to meet the need. The companies in this space need great effort to draw attention of potential buyers and educate them about its benefits. Industry Description & Outlook Indias population of more than 1.2 billion people and GDP growth rate of over 7.8% have put tremendous pressure on the countrys energy resources. The has
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resulted in the rapid depletion and increased cost of non-renewable energy sources. Having more than 300 days of sunshine a year, India has an opportunity to increasingly use solar power, which does not encroach on forest resources and is not dependent on conventional energy. Within the solar power industry NSSPL is focused in the solar water heater market, which has a potential market size of 140 million square meters . The gross potential for solar water heating systems in India has been estimated at 140 million sq. m. of collector area. Of this, 40 million sq.m. has been estimated as the realizable Techno-economic potential at this stage. A total of 3.53 million sq. m. of collector area has so far been installed in the country for solar water heating as on March 2010 . The achievement so far has been modest compared to the overall potential. However, a reasonable infrastructure has emerged and experience is available for manufacture and installation for solar water heating systems.A cumulative target of 20 million sq.m. has been set under National Solar Mission which is proposed to be achieved in three phases as Phase 1(2010-2013) 7 million sq. m. Phase II (2013-2017) 8 million sq.m and Phase III (2017-2022) 5 million sq.m . Government initiatives have led the industry to grow on average 25%-30% year on year. Solar water heaters are becoming popular among residential users for home-use as well as institutional and industrial users. Currently, residential users constitute 50% of NSSPLs business, while 50% is sold to institutional institutional and industrial users might grow at a faster pace than residential users. Jawaharlal Nehru National Solar Mission Building Solar India Jawaharala Nehru National Solar Mission is one of the eight National Missions which comprise Indias National Action Plan on Climate Change. It has the twin objectives of contributing to Indias long-term energy security and its ecologically
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sustainable growth. We are living in a world of rapidly depleting fossil fuel resources with access the conventional energy resources such as oil, gas and coal becoming increasingly constrained. Besides, there are a large number of areas in the counry, which do not have access to electricity. Many other areas face power shortages. Huge quantities of kerosene and diesel are used to meet the lighting and power requirements of these areas. In this context, and in view of the . high solar radiation over the country, the rapid development and deployment of solar energy applications in the country would be critical to provide long term sustainable solutions, providing energy access and substantially reducing fossil fuel consumption. The mission will be implemented in 3 stages leading to an installed capacity of 20,000 MW of grid power, 2,000 MW of off-grid solar applications and 20 million sq.m. solar thermal collector area and solar lighting for 20 million households by the end of the 13th Five year Plan in 2022. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at centralized and decentralized levels . The present police consists of following ingredients. Loan @ 2%, 3% and 5% respectively to residential, institutional and industrial/commercial customers. Interest free loans to residential customers in selected regions of India. Capital subsidy equivalent to upfront interest subsidy to institutional and industrial/commercial customers who do not avail of concessional interest loan. Capital subsidy @ Rs.6000 per 100 Ipd, in addition to concessional interest loans, to residential customers in few states, e.g., Delhi
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Accelerated depreciation @ 80% to profit-making industrial/commercial customers Rebate in electricity bill, @ 50% to 150-per month, to residential customers in some cities Rebate in municipal property tax @ 6% to 10%, to SWH owners in few Indian cities BIS standards established for FPC producers and a system of MNRE approval for ETC producers. Incorporation of SWH among building components covered under Energy Conservation Building Code (ECBC) Soft loans to SWH manufacturers for improvement in technology and expansion of production facilities Municipal Corporation regulations in several cities, making installation of SWH compulsory for Housing units above a cut-off size Hospitals & nursing homes, Hostel, school, colleged, training centers and other institutes, Barracks of armed forces, paramilitary forces and police Competitor Analysis Indias solar water heating industry began to develop in the early 1980s . It has grown to approximately 64 manufacturers of solar water heaters, which are on the certification list of Bureau of Indian standards (BIS). However, the majority are small, regional players. With a market share of over 50% of total sales in the country , Karnataka dominates the market. Similarly, in West India, much of the business activity is carried our in Maharashtra. This is due to the fact that
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Bangalore in Karnataka, and Pune in Maharashtra, have more independent homes that are able to afford the installation of SWHs. Nuetechs major competitors, beginning with TATA BP Solar as a leader in solar thermal industries, include : o TATA BP solar o Emvee Solar Systems Pvt.Ltd. o Anu Solar o Rashmi Industries o Kotak Urja The comparative strength of Nuetechs competitors measured against itself , is as follows: Company Brand Launch year Emvee Solar Systems Pvt.Ltd. Solarizer 1992 -JV with Solar Cap (MNC - Strong brand image in Karnataka - Financially sound -Direct Soft loans to customers as IREDA intermediary TATA BP Solar Zing & Vajra 1998 -JV with BP solar -Good brand equity -Technically/financially sound -Established marketing network -Exports on solar collectors Nuetech Solar Systems
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Strengths
Nuetech
1992
-Good brand image and dealer network in Karnataka and Maharashtra -Largest original equipment manufacturer
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Pvt.Ltd
-Highest
installation
and
sales
in
evacuated tube solar water heaters (ETCEvacuated Tube Technology ) -Manor sales to residential buyers Kotak Urja Polyzol 1997 -Strong technical strength -Major sales in Industrial and institutional sector Rashmi Industries Rashmi 1999 -Major strength in institutional and OEM sales
NSSPL has excellent brand recognition in the market as well as a strong reputation for its after sales service. In addition, the extensive experience in the solar water heater industry , across the organization will help Nuetech scale up its capacity, Although it is currently operating out of limited facilities, the teams proven ability and expertise in solar water heater manufacturing and marketing has allowed it to keep up to date on the best technology, systems, and processes, and apply it, when possible to its own operations. Additionally, Nuetech has been able to look into the appropriate technologies to create state -of the art manufacturing facilities once it receives sufficient funding. This will bring in the benefit of large scale production, which will eventually reduce cost. Nuetech is in the early stages of implementing a new marketing concept DIRECT MARKETING to increase its sale of solar water heating systems. This concept,
which is further detailed in the Marketing Plan , will help Nuetech gain a large market share.
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COMPANY PROFILE
Company Overview Having 20 years of experience in the solar water heating industry Nuetech Solar Systems Private Limited (NSSPL) intends to aggressively scale up its operations over the next three to five years. As a solar water heater (SWH) manufacturing and marketing company with turnover of INR 280 milion in the last financial year and an expected turnover of INR 320 million for this financial year, NSSPL has ensured that they get a share of market potential of the solar water heater industry. Nuetechs market is growing at an average annual rate of more than 18% over the last 5 years and has an increasing number of individuals, institutions, and private and public agencies that recognize the multiple benefits of solar energy. Given the
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industrys current and potential market conditions, NSSPL aims to increase its production and sale of solar water heaters to both residential and institutional buyers, thereby reaching turnover of INR 1,000 million in the next five years. The company plans to reach the expected turnover by investing in new marketing techniques and brand building exercises. NSSPL considers its business as a commitment to contribute to an environmentally sustainable and energy secured world and has been a keen observer of initiatives across the world. Kyoto Protocol and its flexible mechanisms, particularly CDM has ignited an interesting view of the business. NSSPL considers CDM and its procedures, modalities and requirements contribute to its vision of a sustainable business model. Vision To provide greater quality of individual life, enhance organizational efficience and create safer world, thanks to improved harnessing of solar energy. Mission To deliver top-of-the line solar energy products & services and keep the customers delightfully surprised To sustain a cutting-edge infrastructure and an inspiring working environment, with constant investments and initiatives To adopt the best management practices To promote usage of solar and other renewable forms of energy in daily life; enable conservationof conventional energy; and support movements for a clean and green planet . Company History
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Mr.K.R. Surendra Kumar, a first- generation entrepreneur started his career as a fuel-efficient wood Fuel Stove (WF Stoves ) producer in a village near Tiptur, Karnataka in 1988. The energy efficient WF stoves saved 25% wood-fuel over traditional WF Stoves and were more efficient. This Central Power Research Institute (CPRI) WF stove design channeled the air movement in such a manner that the energy generated by the wood fuel was more efficient than contemporary WF stoves. This design, coupled with a 75 % government subsidy to purchasers of these stoves, helped Mr. Kumar sell over 500,000 WF Stoves in South India under the brand name NUCIFERA. When the central government withdrew the subsidy in 1992, the market for the stoves declined, and Mr.Kumar stopped production, Despite this situation, the companys promoters leveraged their experience in WF Stoves and the field of non-conventional energy, and began manufacturing solar water heater systems, with INR 150,000, Mr.Kumar was then able to continue production of solar water heaters under a new company Nuetech Systems. Nuetech Solar Systems was established in 1992 as partnership firm , which later evolved into a private limited company. Currently, Nuetech is re-working on marketing strategies to increase the scale of its operations and build larger marketing team to push the products to customer. In doing so, it is designing its new marketing department to enhance the existing dealer network and bring in new marketing concepts which has proven in the industry. Having seen the market where awareness among the general public is relatively less, Nuetech intends to create visibility and reach so that the buyers are aware about Nuetech products and its strong products which will increase the growth of the company. Through this program as well as regular sales of the solar
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water heating systems. NSSPL intends to increase its expected turnover of INR 320 million for this years financial period to more than INR 1,000 million over the next five years. Competitive Edge Management/Key Personnel Nuetechs human resources are one of its greatest assets. NSSPL expects that its promoters extensive cxperience, along with a team of committed executives and other personnel will enable it to grow aggressively over the next five years. Its management team is listed below: Manager Mr. Surendra Kumar Mr. Prakash, B Mr.T.Ananth Mr.Anand.K Mr.Krishna Yadgiri Mr.Kumaraswamy Position Managing Director (MD) Director Chief Executive Officer (CEO) Purchase Manager Purchase Manager Manager QMS& Material Management Mr.Saravanan Mr.Anitha .S Mr.Chandra Mouly Mr.Pradeep Uppin Mr.Satyanarayana Manager-QMS & Material Management Customer Care Manager AGM (South Region ) DGM (Western India ) Business Development Manager (Northern India) Mr.Khurshid Ansari Business Development Manager
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(Eastern India ) Mr.Madan Kumar G DGM-Thermal & PV Technology and IT Mr.Jagadeesha K Manager PV
Geogrphi Location Nuetech Solar Systems head office is located in Bangalore, Karnataka along with its manufacturing plant and a warehouse. The company also has an established office and a full fledged warehouse in Pune to cater to Western India, and a regional office in Huble, which serves Northern Karnataka, The companys presence is gradually spreading all over India. It has been able to have footprint in the Northern and Eastern Parts of India like New Delhi, Raipur Bhopal and has been bag orders and deliver the systems in various other parts of the country like Jammu Kashimir . Production Efficiencies NSSPL has excellent brand recognition in the market as well as a strong reputation for its after sales service. In addition, the extensive experience in the solar water heater industry , across the organization will help Nuetech scale up its capacity. Although it is currently operating out of limited facilities, the teams proven ability and expertise in solar water heater manufacturing and marketing has allowed it to keep up to date on the best technology, systems, and prcesses, and apply it, when possibleto its own operations. Additionally, Nuetech is looking into the appropriate technologies to create state-of the-art manufacturing facilities once it receives
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sufficient funding for its further growth. This will bring in the benefit of largescale production, which will eventually reduce cost. Through its customer care team, which is headed by a Customer Care Manger , followed by a Customer Care Executive, five Senior Technicians, and five Trainee Technicians. To ensure that customer has choice of good quality products depending upon the geographical location, Nuetech is able to do research activities and been able to successfully build products which can cater to various geographical locations. Targed Market Nuetechs cllentele includes a wide range of residential and institutional customers. The Indian Space Research Organization (ISRO), Indian Railways, government hospitals, hostels, educational institutes, universities, reputed industries, hotels, lodges , and domestic homes constitute a very large market. Since its inception, Nuetech has built up a network of over a 100,000 customers. To date, Nuetechs distribution focus has primarily been South India in the states of Karnataka, Tamil Nadu, Goa, Maharashtra, and Andhra Pradesh. In order to cater to buyers within these states, as well as an increasing number of buyers in North and East India, Nuetech has built an experienced team of professionals, that consists of engineers, skilled-workers, well-trained service back-up technicians, marketing executives, and financial personnel.
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Past Financial Performance Particulars Revenues 31.03.2011 31.03.2010 31.03.2009 31.03.2008 31.03.2007 245.41 262.22 242.38 160. 32 Cost of Goods 79.16% Consumed (% of Revenues ) Admin & S& D 14.46% Expenses Financial Expenses Depreciation Taxes Net Profit 0.79% 1.07% 2.26% 0.73% 2.61% 5.06% 0.53% 2.25% 4.20% 0.53% 1.44% 2.90% 0.39% 1.37% 2.44% 2.26% 1.87% 1.17% 1.10% 0.89% 16.63% 13.94% 11.25% 11.27% 79.11% 77.91% 82.79% 83.65% 107.32
Nuetechs Promoters Nuetechs promoters, Listed below, are also its Board members : Mr.Surendra Kumar, Managing Director-55%stake in NSSPL Managing Director Mr.Surendra Kumar began Nuetech Solar Systems Private Limited after gainging experience in managing a company that produced fuelefficient wood stoves. He was able to build on this knowledge and subsequently
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create NSSPL. Since then, Mr.Kumar has played an instrumental role in Nuetechs planning , implementation, monitoring, control, and coordination of all the departments. Mr.Kumar as constantly ensured proper up-gradation of each of Nuetechs departments in order to continuously meet higher standards of production, Mr.Kumar holds a Diploma in Civil Engineering and is a first generation entrepreneur. Mr.Surendra Kumar is a Managing Director on the Board and is responsible for Nuetech;s Marketing plan & implementation, financial monitoring, administration and accounts. Mr. B.Prakash, Director-45% stake in NSSPL Mr.Prakash has a post-graduate degree in Arts. Mr.Prakash was an active partner of M/s.NUCIFERA CHEMTECH of four years. This firm manufactured bio-mass portable stoves.
Thereafter he re-located in Bangalore for manufacture of solar cookers and solar water heating systems. His strength lies in identifying ad sourcing the right good-quality raw material at the best prices. He is also very meticulous in manufacturing operations and has well-developed skills in calculating costs and pricing. Mr.B.Prakash is a Director on the Board and is responsible for Nuetechs planning, implementation, production monitoring and material management. Nuetech Solar and CDM
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Nuetech Solar Systems Private Limited., (NSSPL) Bengaluru, India, established in 1992 and an ISO 9001-2008 Certified Company, is a leading manufacturer of Solar Energy Products including Solar Water Heaters and Solar Photovoltaic Devices in India . It the year 1992 Nuetech Systems was established to manufacture Solar Water Heating Systems. It was an almost pioneering initiative, as the Solar Water heating technology and the products were in a nascent stage. It was the belief in the benefits. Of utilization of Solar Energy, particularly Solar Water Heaters and their imminent immense potential in the future that has been the bedrock. NSSPL considers its business as a commitment to contribute to an environmentally sustainable and energy secured world and has been a keen observer of initiatives across the world. Kyote Protocol and its flexible mechanisms, particularly CDM has ignited an interesting view of the business. NSSPL considers CDM and its procedures, modalities and requirements contribute to its vision of a sustainable business model . NSSPL as a part of its social responsibility, has initiated and sponsored a massive continuing project Rotary Green Brigade in collaboration a local club (Rotary Bangalore JP Nagar ) of Rotary International, and has till now covered over one lakh school children from about 200 schools in South Bangalore. The objective of the Rotary Green Brigade is to sensitize the children about the looming threat of Global Warming and Climate Change, ways to mitigate, and preparing them to adapt to the imminent consequences. In the year 2004 NSSPL decided to participate in the CDM and started the process of making all activities of the Company CDM compatible. The Project Design
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Documents were prepared and the Host Country Approval was received from Ministry of Environment and Forests, Government of India in December 2005. NSSPL renewed its efforts after the modalities for a CDM Programme of Activities were announced by the UNFCCC Executive Board and the project is in the final stages of Validation and ready for Registration. NSSPL has from the beginning stages been demonstrating its commitment to the concept of Total Customer Satisfaction and has been striving to exceed the expectations of the customer. NSSPL believes that one of the best methods of propagating usage of Solar Energy is by the word of mouth from the satisfied clientele. The strong platform of satisfied clientele also assures sustainability of the business. Nuetechs Programmatic CDM activities: Solar Water Neater Program in India The CPA (CPA1) under the above PoA includes 6,548 SWHs at various locations across India with a total collector area of 52,685 square metres resulting in an estimated emission reductions of 33,168 too during the period July 2007 to December 2009. The second CPA (CPA2) is under under preparation covering installations between January 2010 and December 2011 which will be of a similar size as the CPA1. All tuture Solare Water Heater installations by NSSPL which are as per the norms of the PoA will form small scale & micro scale CPAs. Upon successful registration of the project, other manufacturers of similar solar water heaters in India will be invited to join the PoA , by preparing individual CDM Programme Activities (CPA).
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A CME Manual has been prepared and adopted to ensure proper implementation f the project. The Manuals provides guidance on the implementation and operation of the CDM PoA and targets the management and staff of NSSPL who are involved in implementing the projects and managing the CDM aspects. Managing and administering the CDM revenue : NSSL has drawn plans to utilize the net CDM revenues for the sustainable development of the business. The objectives of the revenue utilization will be to give unparalled customer services pre and post installation, percolating the revenues to all the stake holders including the end users, increasing the companys outreach (sales & service network ), which may include: 1. Assuring free annual monitoring of the installed systems 2. Providing any spares/replacements at a subsidized rates 3. Increasing the service staff/technicians proportionally 4. Providing soft/interest free loans 5. Designing incentive schemes for existing users for increasing their tribe. However no concrete plans as above have been made as of now, and will be decided after the project crosses the milestone of Registration/Certification.
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PRODUCT PROFILE
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Products Nuetech manufactures and supplies a wide range of solar water heaters and markets solar PV lighting systems, for which it also offers customization services (e.g. optimum design & sizing for larger buildings). These products use solar energy for heating water for household, commercial, institutional, and industrial requirements. The solar water heating system consists of solar panels that absorb and retain solar energy, from where hot water is then transferred to a storage tank or geyser. The geyser has the capacity to retain hot water for many hours due to the addition of suitable insulation. Hot/warm water therefore remains in to geyser until it is used. Target Client Nuetechs target clients are residential buyers for home/family use, as well as institutional and industrial users that purchase more customized solar water heating systems (e.g.in terms of design, capacity, etc.) for larger buildings. The latter includes buildings such as hospitals, nursing homes, apartment buildings, hotels, and hostels, Muetech primarily operates in Karnataka, Andhra Pradesh, Tamil Nadu, Goa, and Maharashtra, and has started its operations in New Delhi, Bhopal Raipur and other North Eastern States of India. Marketing
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Nuetechs current marketing and sales strategy is highly successful at its present level of business. However, the model can be further scaled up for higher sales turnover. Along with its current and expanding dealer network across various states, methods such as advertising campaigns, regular newspaper ads, and television and radio insertions will be used. Nuetech has began to market its products through a DIRECT MARKETING to reach various households of the country and cater to household requirements and alternatively work on commercial, and institutional/industrial customers when opportunity permits. Nuetec plans to test run this modul to make sure that it does not affect the existing dealer network. Under this model marketing executives shall be recruited popularly known as LEG SOLDIERS who shall visit various households on daily basis and convince them about the products and its customer services. These executives will be given with target for the month and will be supervised by team Leaders, AGM. There shall be a Sales Coordinator to take care of dispatch and collections made from LEG SOLDIERS. They shall be
having a separate branch office from which they shall operate and report. CDM Activities NSSPL considers its business as a commitment to contribute to an
environmentally sustainable and energy secured world and has been a keen observer of initiatives across the world. Kyoto Protocol and its flexible mechanisms, particularly CDM has ignited an interesting view of the business. NSSPL considers CDM and its procedures, modalities and requirements contribute to its vision of a sustainable business model. In the year 2004 NSSPL decided to participate in the CDM and started the process of making all activities of the Company CDM compatible. The Project Design
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Documents were prepared and the Host Country Approval was received from Ministry of Environment and Forests, Government of India in December 2005 . NSSPL renewed its efforts after the modalities for a CDM Programme of Activities were announced by the UNFFCCC Executive Board and the project is in the final stages of Validation and ready for Registration. NUETECHS Programmatic CDM activities : Solar Water Heater Program in India The purpose of the POA is to install Solar water Heating systems (SWHs) in residential, commercial & institutional buildings throughout India and save precious electricity thereby resulting in reduction of GHG emissions . NSSPL is the Coordinating/Managing Entity (CME) of the PoA. The CPA (CPA1) under the above PoA includes 6,548 SWHS at Various locations across India with a total collector area of 52,685 square metres resulting in an estimated emission reductions of 33,168 tco2e during the period July 2007 to December 2009. The second CPA (CPA2) is under preparation covering installations between January 2010 and December 2011 which will be of a similar size as the CPA1. All future Solar Water Heater installations by NSSPL which are as per the norms of the PoA will form small scale & micro scale CPAs. Upon successful registration of the project, other manufacturers of similar solar water heaters in India will be invited to join the PoA, by preparing individual CDM Programme Activities (CPA).
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Funding Requirements Nuetech requires INR 500 Lacs in equity funding and INR 500 Lacs as low cost debt capital to scale up its manufacturing activities as well as bring new marketing strategy to enhance the reach and to build brand image across India. This is necessary, as Nuetech does not currently have own manufacturing facilities capacity, space, and working capital. Projected Financial Performance (INR In Lacs ) Particulars Revenues Cost of Goods Consumed Admin & S&D Expenses Financial Expenses Depreciation Profit Before Tax Taxes Profit After Tax 21.00 1129.12 38.74 90.39 17.03 266.60 79.98 186.62 13.81 445.47 133.64 311.83 11.20 677.26 203.18 474.05 9.08 976.38 292.91 683.47 82.33 86.45 90.77 95.31 100.07 530.05 583.05 641.36 705.49 776.04 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2017 3,812.50 3,050.00 4,765.63 3,812.500 5,957.03 4,765.63 7,446.29 5,957.03 9,307,86 7,446.29
(% of Revenues ) Particulars 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2017
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Revenues Cost of Goods Consumed Admin & S&D Expenses Financial Expenses Depreciation Profit Before Tax Taxes Profit After Tax
100.00 80.00
100.00 80.00
100.00 80.00
100.00 80.00
100.00 80.00
13.90
12.23
10.77
9.47
8.34
2.16
1.18
1.52
1.28
1.08
0.55 3.39 1.02 2.37
0.36 5.59 1.68 3.92
0.23 7.48 2.24 5.23
0.15 9.10 2.73 6.37
0.10 10.49 3.15 7.34
Products Solar Water Heating Systems Nuetech has a strong research and development resulted in manufacturing and supplies of wide range of SWHs, for which it also offers customization services (e.g.optimum design and sizing for larger buildings ) . These products has been designed to cater to variety of waters spread across India for example Salf water, Hard water, Normal water, cold region etc. These Products use solar energy for heating water for household, institutional, and industrial use. The solar water heating system consists of solar panels that absorb and retain solar energy, from wher hot wate is then transferred to a storage tank or geyser. The geyser has the capacity to retain hot water for many hours due to the addition of suitable insulation. Hot/warm water therefore remains in the geyser until it is used. Although Nuetechs core competency is in designing and manufacturing Solar Thermal (Heating) Systems, its experience in the industry and technical knowledge
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lends itself to other products that Nuetech may consider manufacturing in the future : Solar air/space heating Solar parabolic trough collectors Soar dish concentrators Solar chimneys Advanced solar cooking devices Solar photovoltaic devices
CHAPTER 2
QRGANISATIONAL STRUCTURE
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Head Office, Middle Management, & laborers Nuetechs team of professionals includes engineers, skilled-workers, well-trained service back-up technicians, marketing executives, and financial personnel. The diagram below represents Nuetechs current organization structure :
Managing Director
Board of Directors
Chief Executive Officer

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Director
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Sales Coordinator
Product Manager Western India Marketing Karnataka & Goa Marketing Customer Care & Customer Driven Marketing Production Purchase Accounts Logistics
Northern
Western India Accounts & Admin
Nuetech currently employs a total of 94 people with 26 office staff members and 68 factory workers. NSSPL is in the process of developing its HR strategy with its expansion plans in mind. Nuetechs HR strategy is expected to be completed by calendar year-end 2013, as the company aims to do this after investment funding comes into the company. Nuetech plans to hire professional HR consultants to develop this policy and look into human resource strategies and issues.
Key People & Human Resources Key people
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Nuetechs human resources are one of its greatest assets. NSSPL expects that its promoters extensive experience, along with a team of committed executives and other personnel will enable it to grow aggressively over the next five years. Its management team is listed below. Manager Mr.Surendra Kumar Mr.Prakash, B Mr.T.Ananth Mr.Anand, K Mr.Krishna Yadgiri Mr.Sumaraswamy Mr.Saravanana Position Managing Director (MD) Director Chief Executve Officer (CEO) DGM Finance Purchase Manager Production Manager Manager-QMS Management Mr.Shiva Kumar Mr.Chandra Mouly Mr.Pradeep Uppin Mr.Satyanarayana Customer Care Manager AGM (South Region ) DGM (Western India) Business Development Manager (Northern India) Mr.Khurshid Ansari Business Development Manager (Easter ) & Material
Key People
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Nuetechs team of 157 as on 31st March 2012 includes engineers, skilled-workers, well trained service back-up technicians, marketing executives, and financial personnel, who collectively have extensive experience in the solar water heating industry. Nuetechs promoters are: Managing Director Mr. Surendra Kumar began Nuetech Solar Systems Private Limited after gaining experience in managing a company that produced fuel-efficient wood stoves. He was able to build on this knowledge and subsequently create NSSPL. Since then, Mr.Kumar has played an instrumental role in Nuetechs planning, implementation, monitoring, control, and coordination of all the departments. Mr.Kumar has constantly ensured proper up-gradation of each of Nuetechs departments in order to continuously meet higher standards of production. Mr.B.Prakash is a Director on the Board and is responsible for Nuetechs planning, implementation, production monitoring and material management. Prior to Nuetech, Mr.Prakash worked as an active partner in Nucifera Chemtech, Tiptur , from 1988 to 1992 where ISI marked Biomass Portable Chule was manufactured and marketed . Since 1992, he has established a branch unit in Bangalore for manufacturing and marketing of solar systems and solar cookers, and works as Director of that same unit.
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CHAPTER 2
FUNCTIONAL AREAS
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PEOPLE SYSTEMS AND PROCEDURE PROBLEMS IF ANY
FUNCTIONAL AREAS
FINANCE MARKETING
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FINANCE
Financial Plan Funding to Data Nuetechs total funding to data is INR 8 million consisting of Mr.Surendra Kumar, who holds a 55% stake and Mr.B Prakash, who holds a 45% stake. The company has accumulated profit of INR 34.59 Million as on 31 st March 2012. Financing Sought Nuetech requires INR 50 million in equity funding and INR 50million as low cost debe capital to scale up its manufacturing activates as well as working on Marketing and Brand Building plan across India. Funding Utilization Nuetech does not currently have adequate manufacturing capacity, space, and working capital. It is therefore unable to meet presentmarket demand, but plans to scale up its manufacturing plant, machinery, and infrastructure to solve this problem. The total funding will be utilized as follows: 1. Construction of Building 2. Marketing & Branding 3. Working Capital Funds Total INR 20.00 million INR 30.00 million INR 50.00 million INR 100.00 million
Projected Financial Performance
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(INR In Lacs ) Particulars Revenues Cost of 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2017 3,812.50 Goods 3,050.00 4,765.63 3,812.50 5,957.03 4,765.63 7,446.29 5,957.03 9,307.56 7,446.29
Consumed Admin & S & D 530.05 Expenses Financial Expenses Depreciation Profit Before Tax Taxes Profit After Tax 21.00 129.12 38.74 90.39 17.03 266.60 79.98 186.62 13.81 445.47 133.64 311.83 11.20 677.26 203.18 474.08 9.08 976.38 292.91 683.47 82.33 86.45 90.77 95.31 100.07 583.05 641.36 705.49 776.04
(% of Revenues) Particulars Revenues Cost of 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2017 3,812.50 Goods 100.00 4,765.63 100.00 5,957.03 100.00 7,446.29 100.00 9,307.56 100.00
Consumed Admin & S & D 80.00 Expenses Financial Expenses Depreciation 0.55 0.36 0.23 0.15 0.10 13.90 12.23 10.77 9.47 8.34 80.00 80.00 80.00 80.00
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Profit Before Tax Taxes Profit After Tax
3.39 1.02 2.37
5.59 1.68 3.92
7.48 2.24 5.23
9.10 2.73 6.37
10.49 3.15 7.34
Appendix 1 :Corporate Values Appendix 2: Historical Financials Appendix 3: Market Research Appendix 4: Range of Solar Water Heaters Appendix 5: Ownership Structure Summary Appendix 7: Professional References Appendix 8: Stored Products /Systems in Warehouse Appendix 9: Suppliers, Vendors , & Transportation Companies Appendix 10:Detailed Financial Projections
Corporate Values Corporate Values Nuetech Solar aims to take its business forward and through a greater growth phase by leveraging its core values : 1. Conducting business with sincerity and honesty, integrity and commitment, consistency and openness, discipline and value for resources, mutual trust and respect, teamwork and partnership, competency and quality
professionalism and innovation, and free of deception. 2. Building and sustaining business on the foundation of collective competence, commitment and character of principal stakeholders viz.,
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society, shareholders , employees, vendors, customers and competitors. Nuetech will work towards safeguarding their interests. 3. Pooling stakeholders resources and meeting their expectations by managing Nuetechs resources and operations efficiently to their satisfaction. 4. Maintaining an ethical and moral relationship with stakeholders and within the ambit of rules regulations and law of the land and free from offer and acceptance of inducements, gifts or entertainment, which may be construed as extravagant or unethical. 5. Providing equal opportunity to those who desire to do business or take up employment with the company purely on merits and without prejudice by following clear-cut rules, regulations and procedures that are transparent and capable of standing the test of time and public scrutiny.
Appendix 2 :Historical Financials Past Financial Performance Particulars Sales Cost Goods Cousumed Cost Goods Cusumed of 79.16% 73.11% 77.91% 82.79% 83.65% 2010-2011 2,454.10 of 1,942.66 2009-2010 2,622.20 1,916.99 2008-2009 2,423.80 1,888.29 2007-2008 1,603.23 1,327.24 2006-2007 1,073.17 897.70
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(%) Operating Costs Operating Cost Ratio (%) Profit Before Tax Profit Before Tax % Taxes 26.35 68.55 5.06% 54.53 4.20% 23.01 2.90% 14.70 2.44% 3.33% 7.67% 6.45% 4.33% 3.81% 81.69 201.11 156.32 69.48 40.85 17.51% 19.22% 15.64% 12.88% 12.54% 429.75 504.10 379.19 206.51 134.62
Profit after 2.26% Tax %
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MARKETING
Target Market Nuetech uses distributors, and a large dealer network to market its to Domestic homes Hospitals and nursing homes School, college, and training center hostels Apartments, hotels, lodges, and guest houses Functional buildings of railway stations and airports Such as waiting rooms and retiring rooms Community centers, banquet halls, wedding halls Other industries The geographical area of Nuetechs present market and dealer network are shown in the tables below . Nuetech already has an established office and full-fledged warehouse in Pune to cater to Western India, a regional office in Hubli, which serves Northern Karnataka and is headed by a business Development Manager and executives. State No. of Dealers State Haryana Karnataka Maharashtra Andhra Pradesh New Delhi Tamil Nadu 85 23 11 6 5 Goa J&K Calcutta Manipur Assam No. of Dealers 2 1 1 1 1 1
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Madhya Pradesh Chattisgarh Uttar Pradesh
5 5 5
Mizoram Haryana Total
1 2 153
The companys presence is gradually spreading all over India. It has been able to have foot print in the Northern and Eastern Parts of India like New Delhi, Raipur, Bhopal and has been bag orders and deliver the systems in various other parts of the country like jammu Kashmir. Nuetech is planning to establish a strong dealer network in unrepresented areas, especially in North and Northeast India. Leveraging these regional offices, Nuetech will expand to have a national presence. In addition, Nuetechs dealers also hire our freelancers who obtain business for the company on a commission basis.
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PEOPLE
Ownership Structure Summary The investors in the company are also the Directors on the Board of the company. And they are : Mr.Surendra Kumar 55% Shareholding
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Managing Director Mr.B.Prakash Director Investors of the company are heading the company as Managing Director and Director respectively and are not related to each other. 45% shareholding
key Personnel Mr.Surendra kumar photo Mr.Surendra kumar aged about 45 years is a Diploma holder in civil engineering started one partnership industries in the year of 1988 under the name of Nuclifera Chemtech, Tiputur, Tumkur Dist (Karnataka); Activities included manufacturing and Marketing ISI Marked Biomass Portable high efficient wood burning stoves and improved chullha. From 1992 established Branch unit in Bangalore for manufacturing and Marketing of Solar Thermal Systems, P.V.Systems and Solar Coookers. Today NUETECH is very proud of its stature in solar water heater market as a renowned manufacturer and major share holder in Solar water heater sales in India market. Nuetech consider among top 5 solar thermal manufacturer in India
Achievements 1988 : Started a tiny industry Manufacturing a high efficient wood burning stoves at Madihalli in Tiptur taluk with an investment of Rs.25,000
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1992 : Manufacturing and marketing solar thermal systems. 1996 : Installed above 600 units of solar water heater in Bangalore district Rural areas under subsidy programme. 1997 : Got ISI Marking license from Burue of Indian standards 2002 : Converted in to private Limited Company NUETECH SOLAR SYSTEM PVT LTED, Got ISO 9001-2000 Certification from BVQI. 2002: Got Rastriya Rattan award from global economy council New Delhi for individual achievements in solar industries. Efforts as an Enterpreneur Mr.K.R.Surendra Kumar who promoted this company in 1992, Mr.Surendra Kumar born on dated 18-10-1996 in shimoga city in middle class background family Studied his primary education in shimoga and is a civil Eng., Diploma Holder in S.M. Polytechnic in sagar taluk in shomoga district. The concept of solar water heater was itself a remarkable 15 years back. Nuetech systems also came into existence with the main intension of joining one hands in nations common for conservation of energy and use of renewable energy some of energy. NUETECH as a Solar water heater manufacturer, initially faced lot of problems not only financial and infrastructure but also non- awareness about this concept among the mass. NUETECH started with 4 to 5 factory workers and we ourselves started marketing SWH door to door with one scooters for mobility. We were able to market only 3 to 4 units per month and incurred losses during the initial phase of 2 years. But we never let go one confidence. We strived hard to educate the mass about this concept and parallel developed trained marketing team Bangalore . our marketing team started educating mass about the concept of SWH and this cutting down the cost of and has multiplied into not only domestic but also
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industrial like hospitals, hostels, Hotels etc., we are very confident that our stringent concern for quality measures has helped us a lot in our growth. Today our marketing network has spread all over South. India involving marketing executives, dealers, commissions agents, distributors and free lances numbering to more than 400 persons directly and indirectly. Our production capacity has reached more than 300 units per months and consists of technically skilled expert today our company is run on systematic ISO standards and is certifies by BVQI for ISO 9001-2000. We have prestigious clients like ISRO, Telecom, railways university hospitals educational institution, Hostels, Industries etc., and more than 10,000 satisfied domestic users.
Competitive Advantage Overall, Nuetech sees tremendous opportunity to grow within this industries, its extensive experience, combined with greater government incentives for customers, potential export market, wide dealer network and dedicated team, leaves huge scope for expansion, Although the likelihood of a greater number of large companies may enter the field, with appropriate funding, Nuetech products are in competition with a few companies of its own size as well as smaller, regional players, However its holds a competitive advantage in: Technology although Nuetech does not presently have the necessary equipment to give its products the best finish, it is still technologically superior to may companies due to its higher quality standards and
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manufacturing such as bonding and sealing that robustly handles the highly corrosive effects of water. Brand Recognition Nuetechs brand commands high loyalty in the market Production Methods- sophisticated production methods of nuetechs solar water heaters make them longer lasting , efficient and environment friendly. This higher quality both in terms of material and process is a solid advantage over most other competitors In addition, Nuetech is better positioned compared to its competitors as many of its competitors have not yet entered the evacuated tube solar water heater market Nuetech has however. Installed a large number of systems based on this evacuated tube technology, through which the company has gained more knowledge and developed better technology. Marketing & Sales Strategy Nuetechs current marketing and sales strategy is successful at its present level of business However, the model needs further scale up for higher sales turnover. Along with its current and expanding dealer network, mentioned above, methods such as advertising campaigns, regular newspaper ads, and television and radio insertions will be used. Nuetech will also promote its products through live display models, road shows, hoarding and wall paintings and neon sign boards to create increased presence at the national level. Nuetech has began to market its products through a DIRECT MARKETING to reach various households of the country and cater to household requirements and alternatively work on commercial, and institutional/ industrial customers when opportunity permits. Nuetech plans to test run this model to make sure
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that it does not affect the existing dealer network. Under this model marketing executives shall be recruited popularly know as LEG SOLDIERS who shall visit various householders on daily basis and convince them about the products and its customer services. These executives will be given with target for the month and will be supervised by team Leaders. AGM. There shall be a Sales Coordinator to take care of dispatch and collections made from LEG SOLIDIERS They shall be having a separate branch office from which they shall operate and report. The success of this model depends upon scale up of marketing team and also supported by Customer Focus as part of CDM Activities Value Preposition to the Customers Nuetech connects to its customers through different means as mentioned below o The dealer connects with the local customers. The dealers are trained on the companys product and have all the requires knowledge to be given to the customers. o Through print media such as advertisement on TV channels and Participation in Exhibitions NUETECHs offering Highly satisfying customer [The survey was done on solar water service. concerns The are customer heater users with the perspective of taken care understanding the customer GAP] 100% of the customers had the concern of cold water on cloudy current customer Customer expectation Our Survey output
within 48 hours of customer complaint.
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A new mechanism in the water heater tank to enable drainage of water. This is very helpful for the customer as he is able to clean the water heater tank regularly. Nuetech also having
days and hence an alternative needs to be provided so that hot water can be obtained even when there is less sunlight. (one user suggests using electric geyser alternative instead of inbuilt
heating in solar heater ) 100% of the customers mentioned the importance of piping as it cools the water down in the transit. 100% of the customers mentioned the difficulty of cleaning the panel in every 15 days/month and tank once in 6 months. Customers measured had the not power really savings
dedicated customer care to make complaint system.
Nuetech os planning to open branch places office to at various the
address
customer requirements and ensure that systems works it its life. To some extent there is product customization to
cater to the varying need of the customers. To address expectations from the customer n R&D is
advantage of the solar water heater
working
bringing
innovative products.
NUETECH
COMPETITORS
Better Branding Better Marketing Strategies
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Better dealer Network in south India
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CUSTOMERS Research & Development Center The companys promoters, executive team , and operations personnel oversee Nuetechs research and development. Through constant knowledge acquisition from meetings, seminars, conferences, exhibitions, trade fairs, internet, industry journals, and active participation in industrial association activities, Nuetech is constantly striving to analyze data, trends, and information in the SWH and related fields. Nuetech has plans to make its research and development center into an autonomous department so as to support Nuetechs business more, and scope for customization and improvement of its products.
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Operational Plan Since its inception, Nuetech has manufactured solar water heating systems and carried out head office business in rented facilities with limited space. With 9,000 square feet of industrial space for manufacturing and storage, its production capacity per annum is approximately 25,000 collectors; manufacturing facility, through which it can scale up its production by 10 times over the next three to five years if adequate funding is received for the expansion. Nuetech will also build a larger warehouse to store finished products, improve its head office, and construct supporting facilities such as further storage and goods movement facilities. Nuetech also plans to keep some land available for expansion over the five year business plan period.
Nuetech expects high growth shall be achieved in the first phase of three years if it is able to set up its large state-of the-art manufacturing facility on new land, which can be expanded upon in Phase II. In Phase II Nuetech expects to double its capacity. While in Phase III, it will triple triple its production.
Logistics
As it is both a manufacturer and marketing company for solar water heating systems, Nuetech follows a multi-step approach from procuring its raw materials to assembling its products to final distribution to customers. The major steps in this process include :
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Raw Materials Procurement
Manufacturing Solar Water Heaters
marketing, Distribution, & Sale
Post Sales Support
Raw Materials Procurement Nuetech acquires most of its raw materials from within Karnataka, and also from Mumbai and Hyderabad. A select list of raw materials used to manufacture solar water heaters is presented below.
Select Raw Materials for SWHs High Cost Core Raw Materials Aluminum coil, aluminum sheets, SS coil, copper pipe and sheet, insulation materials, evacuated tubes Medium Cost-Accessories to Core RM Aluminum foil, anodes, brass flanges, SS nipples, packing materials, safety items, electric heaters, hose pipes Low Cost Accessories Welding accessories, rubber items, Fasteners
All of these raw materials are purchased domestically except avacuate tubes, which are imported from China, as they are not available in India, but are necessary in the
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production of a particular. Type of solar water heater. Nuetech purchases these raw materials from regular vendors, with which Nuetech has built a relationship. Different payment structures are arranged with each vendor depending on the type of material purchased . To physically procure the raw materials, Nuetech : Requests that vendors supply raw material to Nuetech with their own vehicle and if required, bear the freight charges At times, Nuetech hires contract vehicles to procure materials from ocal suppliers Nuetech arranges vehicles through through shipping agents for important and inter-state purchases of raw materials. Manufacturing Solar Water Heaters Currently, Nuetechs factory has a capacity utilization of 70 percent. Laborers can manufacture approximately 20 systems per day along with allied components such as Collectors, how water storage tanks and support stands, As Nuetech receives orders for residential solar water heater systems as well as from institutional buyers, it helps them customize their system for their requirements: Residential Systems- Typically, customization for a Residential system takes place within an eight hour Period after the customer places the order. It then takes 24 hours to manufacture it, depending on the stock of necessary components for the particular model . Industrial Systems - Customization of industrial systems depends on : a) 1-3 day site survey, b)designing the system (24-hours), and c) closing the deal with customers (24 hours) Finally, depending on the capacity of the system, manufacturing takes 1-5 days.
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Marketing, Distribution ,& Sale Nuetech markets its products through a wide renge of print and audio-visual media, as mentioned in the Marketing Plan. It also contracts mobile advertising agents. Once a product is manufactured, it is kept in Nuetecs warehouse before being transported to the customer for installation. Installation typically occurs within eight hours from the time of receipt of systems at a residential installation site. Installation of institutional and industrial systems on the other hand, takes one to five days depending on the systems capacity. Nuetech uses its own vehicles for transportation for installation. If customers require the product urgently, Netech uses reliable cargo services. Inter-state deliveries are made through Nuetechs network of transportation agents, which have a large number of vehicles and are reliable. Post Sales Support/Customer Service Nuetechs reputation has been built on reliability, good quality products, and strong customer service support. To preserve this image, Nuetechs customer service department ensures timely follow-up through its customer car team, which is headed by a Customer Care Manage, followed by a Customer Care Executive, five Senior Technicans, and five Trainee Technicians. The team undertakes the following to following to follow-up with customers on their satisfaction of the product and any problems: Calls customers immediately after sales to ensure that the system is functioning Studies cusrtomer satisfaction through generally service via phone call to the customer and/or through a frequent free servicing campaign
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Addresses complaints immediately once Nuetech receives a complaint, it analyzes the problem and sends a technician to solve it within a 24 hour time period Conducts customer satisfaction surveys by a) sending a customer authorization format along with the system, b) using a customer feedback forms, and c) using call slips to ensure the attendance of the technician. Data is then analyzed to demonstrate the suitability and effectiveness of the product. This information allows Nuetech to adjust the products characteristics, look into processes, and examine opportunities for improvement. Cost of Goods Manufactured Structure The cost of goods manufactured strncture includes high cost direct raw materials and medium cost accessories to core raw materials. These constitute approximately 65% of total cost of goods manufactured, while wages and salaries paid for production constitutes 10% and other required overheads amount to 5% of cost of goods manufactured.
Risks & Risk Management Solar Water Heaters (SWH ) based of Fiat Plate Collector (FPC) and Evacuated Tube Collector (ETC) Technologies are mature technologies that hve evolved over the years. However, a change in certain technology used in the typical manufacturing process could lead to the need to re-adjust Nuetechs processes (e.g.could cause a change in raw materials).
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Nuetech therefore remains open to changes and is constantly seeking to improve its products, innovated, and use new techniques to offer its customers the best quality and most reliable product. This is evident by the adoptionof a relatively new market-leading Evecuated Tube based technology . Raw Material Cost Variability Risk Typical raw materials for solar water heater systems include coper, aluminum, and stainless steel, which are cost sensitive. Consequently, Nuetech constantly looks for good quality substitute metals that are less expensive and can replace the currently used material. Such substitutes include : Copper galvanized iron, mild-steel, cold-rolled steel, annealed MS, Polypropylene , copper-aluminum alloy, composite material etc. Aluminum- fiber reinforced plastic, galvanized iron, powder-coated MS, pre-coated MS/CI, molded thermo-plastic molded FRP/thermo plastic, powder-pre-coated GI. Stainless Steel for Storage Tank Epoxy/ceramic coated MS,GI Nuetech also plans to put forward contracts in place as a mechanism to control raw material costs. Social & Environmental Impact Social Impact Between 1992 and 2012, the industry has installed above 20 million liters of solar water heaters in domestic and industrial sector. There is a indirect economic and social impact to the installation of these systems there, as one unit of saving electricity equals two units of generating power .
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Solar water heaters provide an almost assured supply of hot water, independent of grid power for about 300 days a year in Karnataka, These SWHs are predominantly used in urban areas, usually replacing electric water heaters (boilers/geysers) thereby proving to be a dependable source of one of the basic amenities (i.e., hot water) Nuetech has been part of green energy campaign to educatie students and youth in Bangalore. Presently Nuetech employs approximately 500 people, directly and indirectly to serve the industry . The company estimates are listed below.
Directly employed in Nuetech Good porters Freelance electricians and plumbers Goods transporters Dealers and their employees Freelancers Others Economic Impact
157 50 100 50 500 30 150
Through its own analysis, Nuetech states the SWHs work for at least 15 to 20 years with negligible maintenance. In addition, the pay back period for the user is less than five years, considering only savings on electricity bills. It is observed that an
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all electric household (AEH) saves approximately 40% to 60% of their electricity bills after switching over to SWH. The grid power thus saved by the end user (household) is approximately double. After considering other factors such as transmission and distribution losses. Environmental Impact SWHs work on solar energy, which are a zero emission source of energy and a perennially renewable source. Furthermore, they have a long likfecycle of about 20 years. These systems are in contrast to systems that use polluting fossil fuels including coal and diesel. Currently, 50% of Karnatakas electricity is generated through such fossil fuels. Technology The flat plate collector technology used along with other efficient practices makes SWHs highly reliable and safe products. Hence these products are highly suitable for applications such as domestic households. Since the technology used is indigenous and all raw materials are available locally, the SWH industry faces very low technological risk. Hence, the technology is sound and comparable to the best practices.
Nuetechs Contribution Nuetech has installed over 200,000 square meters of solar-energy collector area since its inception and has over 50,000 satisfied customers, Through its past activities, Nuetech has reduced green house gas emission(calculated on a conservative basis) equivalent to about 2 million tons of CO2
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Furthermore, solar water heaters, which usually replace electrical boilers/geysers, save at least 750 Kwh of electricityper square meter of collector area per year. At a nominal cost of INR 4 per unit (Kwh). Nuetechs business has also contributed to the reduction in use of conventional energy, albeit small.
CHAPTER 4
SWOT ANALYSIS /VISION/MISSION
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GOALS AND OBJECTIVES
SWOT ANALYSIS
Nuetechs SWOT Analysis, which is based on the consolidated views of the management team and a cross section of employees, has been completed to better understand how the business is positioned within its extemal environment, and provide a context for any competitive advantage its products hold . Strengths Good Range of Products Weaknesses Lack of dealer network in many
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Flexibility customization Large and
for
product
states in Northeast India All India brand image is missing Inadequate working capital Lack of funding has not allowed Nuetech to upgrade its facilities to
dedicated
dealer
network particularly in kamataka and Maharashtra Strong management dealer
become even more efficient No/ less Strategy for retail
relationship resulting in high level of confidence among dealers and very low dealer attrition Moderate brand image Commitment to customer care, which has led to a satisfied clientele Opportunities Enormous market potential Institutional, industrial and OEM customers can be targeted Dealership network can be tapped With the new DGS&D
promotion and selling
Threats Entrance of multi national companies into the field Competition from un-organized sectors
registration, the large government and defense market can also be tapped Introduction of new products and designs Solar Photovoltaic market
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Marketing
through
DIRECT
MARKETING
CHAPTER 5
SUGGESTION/ RECOMMENDATION
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CHAPTTER-6
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BIBLIOGRAPHY
CHAPTTER-7
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APPENDICES
Appendix 1 : Market Research Some of the major competitors of Nuetech and their geographical operations are as below: a) Tats BP Solar, Bangalore :area of operation All India : with a wide and focused dealer network all over the country Tata BP is the usual competitor at major projects and government tenders Tata being a household name and synonymous with quality and reliability, the smaller projects and domestic household enquiries are something passed on to Tata BP dealers on a preferential basis even though the costs are higher. However, as Tata BP has refrained from dealing directly with all types of customers, small or big, and only their dealer are providing the pre and post-sale services, the company and its dealers have earned the dubious distinction of very unprofessional services particularly after-sale in many areas of operation. Over the period of time it is becoming easier to complete with Tata BP, b) Emmvee Solar (solarised), Bangalore Area of Operation: Karnataka: The company has a strong dealer network in the city of Bangalore and some other districts in the state of Karnataka: One of the main unique selling propositions of Emmvee is the easy financing schedule provided at the customers door step, as an financial intermediary of India Renewable
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Energy Development Agency Limited (IREDA) at subsidized interest rates. The company has established an effective After-Sales-Services department along with a loan recovery team. c) Anu Solar, Bangalore: Area of Operation Karnataka The company has a strong direct marketing technique which was test implemented in Bangalore and now successfully running in Bangalore . this technique has provided growth of more than 50% in last two financial years. They are aggressively competing for the top three positions in solar thermal activities. d) Rashmi Industries, Bangalore : Area of Operation- All India: Predominantly an OEM supplier, Rashmi Industries has also started its Photovoltaic Module manufacturing unit and is now involved in major PV tenders and is loosing its priority in SWH activities. However, Rashmi is a force to recon with as far as the SWH OEM market is concerned. e) Kotak Urja, Bangalore : Area of Operation All India : Kotak Urja, which is both a SWH and PV manufacturer, concentrates on major projects and PV tenders on an all india basis. Its presence in the smaller systems segments, including the domestic household applications, is only nominal. Some of the regional competitors that we face in the market are: f) Sudharshan saur shaki Pvt. Ltd., Aurangabad Area of Opereation: Maharastra and some parts of Northern Karnataka : The company has shifted its focus from the Flat Plate Collector technology to the Evacuated Tube collector technology totally and provides stiff competition in their areas of operation. They are basically involved in smaller requirement segment only and do not have competence in the executing bigger projects.
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g) Jain Irrigation Systems Limited, Jalgaon Area of Operation: maharastra and some parts of Central India: The Solar Energy Division of the Jain group, is involved in smaller requirements segment and provides reasonable competition in their areas of operation. h) Inter Solar Systems(P) Ltd., Chandigath Area of operation : Northern States of India: the largest among the very few manufacturers in Northern India, i) Photon Energy System Limited: Area of Operation South India: basically an ETC systems supplier to OEMs, procures the FPC systems from Nuetech whenever requirement and both the companies have a mutually beneficial relationship.
Appendix 2 : Range & Products of Solar Water Heaters SWHs functioning on Thermosyphone Principle that are natural circulation systems and up to 2500 LPD (Litres Per Day) capacity. The applications include domestic households, small institutional / commercial and industrial systems. SWHs that are large than 2500 LPD systems that are usually based on Forced Circulation Principle. These may be either Closed Loop or Open Loop systems. and depending on the application they may be either Different Temperature Controlled (DTC) or Fixed Temperature Controlled (FTC) SWHs are also designed to cater to Hydro-Pneumatic pressurized applications, where higher working pressures than the usual atmospheric pressure are used.
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Special systems incorporating Heat Exchangers are supplied wherever the hardness is above the desirable limits. Range of Products innovatively designed by Nuetech to cater to all kinds of water to be heated for bathing purpose are as follows:
ABBSUN This product is designed to cater to lower income or middle income customers. This product may be also called as substitute for unorganized competitors products which are low price and low quality products, ABBSUN is low priced and good quality systems. if this product is subsidized then the cost of the solar water heater is comparable to electric geysers. By promoting to lower and middle income group, we can cater this product to rural areas resulting in higher awareness and can achieve the target set under solar Mission there by contributing to the revenues of the company. Nano & Anamel Coated tanks This product is based on Nano Material which is popularly known as Polymer based tank. This is a innovating product from Nuetech to address bad(Hardness) quality of the water. In India most of the households use underground water which contains sodim chloride , calcium and other salt contents. Due to this water quality solar water tanks will result corrosion of tanks resulting in leakage of tanks. To address the needs of the customer Nuetech has come up with this innovative product. These tanks will improve the life of the solar water heater.
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Appendix 3: Professional References Consultant for Advertising and Brand Building Media House Marketing And Advertising Private Ltd Established more than six years age at Hyderabad, Mediahouse Marketing and Advertising Private Limited is a full fledged advertising agency managed by professionals with over 12 years experience in the field of advertising and provide various communication solutions including media buying and planning especially for print and electronic media apart from concept & creations, Research and analysis. Ours is a fully accredited Agency with INS in the name and style of GAMAS with increasing demands of the fast changing Advertising and Media industry we have built up a strong network across the country with offices in Bangalore, Mumbai, Chennai & New Delhi with Hyderabad as its Head quarters. All the offices are fully equipped with necessary infrastructure and manpower to deliver business advantage through Advertising to their clients . Financial, legal, and Strategy Advisors : CA Nanu R. Mallya., B.com FCA- Strategy Advisor & Management Consultant He is a practicing Chartered Accountant with 30+ years of experience. He specialises in Management Consultancy, Strategies, Corporate Governance and Tapping the capacity Market.
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He is a partner in a Bangalore-based Chartered Accountancy firm with four partners. His firm renders various professional services such as income-Tax, service-Tax, VAT, Statutory Audits, Internal Audits, Corporate Audits. He was a director on Board of State Bank of Mysore from 2004 to 2007. He was also the Chairman of the Audit Committee of Bank . He conducts various programs for the institute of Chartered Accountants of India. CA Santhosha Kumar, B.Com, FCA, Management Consultant He is a practicing Chartered Accountant advising clients on Management issues, FEMA and related areas. He is been in practice from last 6 years. He is a partner in a Bangalore-based Chartered Accountancy firm with Three partners. His firm renders various professional services such as Income-Tax, Service-Tax, VAT, Statutory Audits, Internal Audits, Corporate Audits. CA Dhananjaya Hegde- Chartered Accountant Statutory Auditor Educational qualification :B.Sc, LLB, FCS He is our Company Secretary, handling all the register of Companies activities. Soon after companys Board meeting. Any charges takes place in the company matter, the same will be updated & files in ROC. He is also a specialized Corporate Advisor& giving services like Corporate systems study & reengineering of prevalling system, designing of standard operating procedure, secretarial support services etc, He is having 13 years experience . Mr. H.S.Sharma Sundar- Founder CEO & President- HR Consultant Paajaka consultancy services has a sound reputation for a aSystematic and handson approach to Strategic Corporate Management and Human Resources Consulting. Since our inception, we have steadily grown to become one of the leading HR service providers in Silicon city of India, Bangalore. DISA- Strategy Advisor &
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Established by a group of professionals known for Systematic and hands-on approach to Business Profit Optimization processes through Strategic HR interventions and consulting services. Since our inception, we have steadily grown to become one of the leading business & HR related advisory service providers in the silicon city if India. Bangalore and other parts of India We have an established client base & have the reputation of working with organizations very closely. Which has produced measurable growth record both in terms of increase in revenues and human capital development due to our strong fundamentals and consulting experience
Appendix 4: Stored Products/ Systems in Warehouse 1. Solar Collectors 2. Solar water heating systems (power coated) 3. Solar water heating systems(puff insulated) 4. Solar water heating systems (stainless steel cladding with puff insulation) 5. Evacuated tube collector heating systems (power coated and stainless steel) 6. Solar water heating systems pressurized 7. Solar water heat exchanger systems 8. Solar PV systems
Appendix 5: Suppliers, Vendors, & Transportation Companies TOP TEN VENDRORS LIST
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Sl No. 1 2 3 4 5
Vendors Name
Item Supplied
Place
Bokadia Steels Bhagyanagar India Ltd Bhadravati Metal Works Sakthi Electronics Sarda Engineering Industries
Stainless steel Copper Fins Stainless steel Batteries Alluminium Stainless Steels
Bangalore Hyderabad Mumbai Bangalore & Bangalore
6 7 8 9
Panchadhatu Associates Agricultural Industrial Supplies Mahaveer Metals Light Metals
Copper Fins Alluminium M S Angles Alluminium Frames
Bangalore Bangalore Bangalore Bangalore
10
Innovative Fab Tech
MS Stands & PV Bangalore Poles
11
Swastik safty Glass (Bangalore) Toughen Class Pvt. Ltd.
Bangalore
12
Haiyan Medeasolar
ETC Tubes
China
Nuetech has tie-up with different transport companies for different areas outside the State of Karnataka depending on the reliability, punctuality and cost benefits offered by individual transporters. Transporter Number EFC Logistic Private Limited Amith Roadways Private
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Contact person
Contact
Mr,Ananth Mr.Amith
9341382223/9343150313 8088088679/9342750927
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Limited Nortern Roadways Sahara India Road lines Super Laxmi Road ways Mr.Shafi Mr. Sushil 9141577090/9141577091 9342946395
Mr.Gagan Kumar 9379870924/9590964143
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Schedule No.1 Loan Funds Secured Term Loan Secured OD Unsecured Loans
31-032012
3/31/2013
3/31/2014
3/31/2015
3/31/2016
3/31/2017
44.00 442.05 (2.88)
40.00 700.00 -
30.00 480.00 -
20.00 400.00 -
10.00 50.00 500.00 -
483.17
740.00
510.00
420.00
510.00
500.00
Schedule NO.3 Current Assets Closing Stocks Sundry Debtors Cash in hand Bank Accounts Other Assets
31-032012
3/31/2013
3/31/2014
3/31/2014
3/31/2016
3/31/2017
357.10
438.43
511.25
628.88
746.97 921.06
963.28
1.32.55
992.84
1,241.05
1,551.31 1,939.14
2.71
1.00
1.00 1.00
1.00
1.00
17.00
25.84
26.83
35.42
354.38 688.43
122.25
122.25
122.25
122.25
122.25 122.25
1,462.34 Schedule No.4 Current 31-032012
1,620.06 3/31/2013
1,654.17 3/31/2014
2,028.60 3/31/2015
2,775.91 3/31/2016
3,671.88 3/31/2017
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Liabilities Creditors Provisions & Others 739.29 464.65 763.48 516.28 645.35 552.99 806.68 1,008.35 613.45 24.19 88.34 752.24 97.18 106.89 924.26 117.58 129.34 1,137.69
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(% of Revenues ) Particulars 31.03.2013 31.03.2014 31.03.2015 31.03.2016 31.03.2017

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0.55 3.39 1.02 2.37

0.36 5.59 1.68 3.92

0.23 7.48 2.24 5.23

0.15 9.10 2.73 6.37

0.10 10.49 3.15 7.34

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Chief Executive Officer

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Western India Accounts & Admin

Key People & Human Resources Key people

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PEOPLE SYSTEMS AND PROCEDURE PROBLEMS IF ANY

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Projected Financial Performance

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Profit Before Tax Taxes Profit After Tax

3.39 1.02 2.37

5.59 1.68 3.92

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9.10 2.73 6.37

10.49 3.15 7.34

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Profit after 2.26% Tax %

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Madhya Pradesh Chattisgarh Uttar Pradesh

Mizoram Haryana Total

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within 48 hours of customer complaint.

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dedicated customer care to make complaint system.