5 Ways To Improve Your Market Visibility: Building Better Supply Chains Together

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A 99 MEDIA PUBLICATION
VOLUME 12
ISSUE 11
July 2013
PRICE 100
Business Management
5 WAYS TO IMPROVE
YOUR MARKET VISIBILITY
SOCIAL MEDIA MARKETING IS
ESSENTIAL FOR BUSINESS
SUSTAINABILITY
Pg 42
Supply Chain
CHALLENGES OF
MSME SUPPLIERS
LACK OF PLANNING AND

REGULAR FOLLOW-UP
CREATE THE LACUNA
Pg 36
COVER STORy
BUILDING BETTER
SUPPLY CHAINS
TOGETHER
Krishnakumar
Srinivasan
Devdip Purkayastha
MD, EatonsCHEP
VehicleIndia
Group
President,
in India
UNLOCK VALUE THROUGH STANDARDISATION,

COLLABORATION AND MODERNISATION
Pg 10
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editorial
Vol. 12 | Issue 11 | July 2013
Managing Director: Dr Pramath Raj Sinha

Printer & Publisher: Kanak Ghosh
Editorial
Group Editor: R Giridhar
Managing Editor: P K Chatterjee (PK)
P. K. Chatterjee (PK)
editor@industry20.com
Unitised
Goods Tranport
hat are the

pillars of efficient
manufacturing? Had
this question been
asked to any Indian
manufacturing expert (say) around two
decades back, obviously the answers
would hover around one or more of the
statements like exercising control
on consumption of raw materials or
focusing on eliminating excess manhours or deploying highly sophisticated
and/or super-speed machinery in the
factories and so on.
In last ten years or so, they have
talked on creating real-time visibility
at all stages of production including
incoming and outgoing supply chains,
effective automation and fail-safe control systems. Then, they also emphasised on convergence of business and
manufacturing processes.
Now, when the Indian manufacturing leaders try to integrate the world
external to their enterprises with the
internal ones, they face the major challenge out of lack of standardisation of
supply chain devices and equipment.
So far Indian supply chain experts
have highlighted several shortcomings
related to our poor infrastructure, lack
of experienced manpower in the field
and inappropriate taxation policy, however, no much emphasis has been put to
july 2013 | industry 2.0
standardise the machinery and equipment used in executing supply chain

activities, which is one of the major
causes behind inefficiency in this field.
In the present Indian circumstances,
many manufacturing companies lose
0.5 to 5% of the contract values as
liquidated damage, where supply chain
inefficiency stands as one of the major
causes. Growing packaging cost is also
putting pressure on the manufacturers
in a way that was never seen before.
Owing to fast rising real estate cost in
the country, maintaining a big warehouse or large docking area is a big
challenge today. Thus, faster and safer
shipment of goods has no alternative.
As a common practice, bulk transporters fill up their trucks with goods
from different manufacturers, which
are not packed in a standardised way.
It is often found that the (inner) cubic
capacity of a truck is not properly filled,
and to utilise the maximum loading
capacity (weight-wise), they hang products dangerously on the trucks bodies.
A unitised goods transportation practice can address almost all these challenges. Thus, it is high time when our
manufacturing and supply chain leaders
should seriously focus on this practice,
and pave the way for standardisation in
all the material handling, storing and
transporting devices.
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contents
departments
Editorial..................................................02
Advertisers Index..................................04
Industry Update.................................... 06
Product Gallery......................................48
Business Index.......................................48
advertisers index
Exxon Mobil...........................................IFC
Schneider..................................................1
PTC........................................................... 3
cover story
Zenith Computers.................................... 5
Siemens................................................. 15
10 Building Better Supply Chains Together
Rockwell..................................................17
Pallets and Crates, creating a $6 billion revenue global organisation

based on supplying but not selling these products is not only intriguing
but also a very interesting business to learn about. This is exactly
what we planned to do, as we walked into the CHEP Mumbai office...
Everest Pressure & Vacuum Systems...... 21

Frost & Sullivan......................................23
Dell....................................................... IBC
Accenture.............................................. BC
Cover Design: Atul Deshmukh Photo Credit: Jiten Gandhi
BLOG
Control & Automation
44 Revolutionising Manufacturing
08 Building Excellence
28 Managing Convergence Issues
In a disruptive age, the randomness

component of supply chain rises high.
Thus, strategies should consider that...
How to mitigate challenges out

of manufacturing and business
network convergence?
A tightly integrated ERP solution

helps manufacturers consider and
respond to various day-to-day
challenges and variables...
design & optimisation
Challenges & solutions
event report
24 Optimising Power Plant Layout
34 Supporting the Growth
46 Backup Power
Increasing energy and power quality
How were the design challenges

overcome in the Dhuvaran Phase III
power project, which is going to be
commissioned in September?
Demand for engines for standby

power solutions is increasing in the
manufacturing sector...
Supply Chain
requirement fuels the demand for

backup power products, concludes
industry expersrts...
36 Challenges of MSME Suppliers

Most of the large scale manufacturers
depend on supplies from MSME
suppliers. Thus, their challenges often
disrupt big supply chains...
Management & Strategy

42 Improve Your Market Visibility
Many innovative manufacturers
fail to reach the right customers
because of their poor presence in
social media...
www.industry20.com
industry update
M&M, CIE Automotive form global alliance
he Mahindra Group (India) and CIE

Automotive (Spain) have signed
a global alliance agreement between
Mahindras automotive component
businesses (held under its Systech Sector) and CIE Automotive (involving also
its subsidiary Autometal). The agreement will see the formation of a global
automotive component supply network
with combined annual sales of approximately INR 15000 Crores / Euro 2.2
Billion / USD 3 Billion with operations
in North America, South America,
Europe and Asia held through listed
businesses in Spain, Brazil and India.
As part of the transaction, CIE
Automotive through one of its subsidiaries will acquire from Mahindra
Group a stake in its listed and unlisted
companies belonging to Systech Automotive Component business and CIE
Automotive will contribute its forging
businesses in Spain and Lithuania and
together consolidate all companies
under MFL, which will be rechristened
Mahindra CIE. Mahindra CIE will
continue to be listed on BSE (Bombay
BHEL, Alstom
sign contract
lstom will supply components

and services for the 2x660
MW Suratgarh Super Thermal
Power Project (STPP), in Rajasthan,
according to a contract worth
approximately Rs 206 crore, offered
by BHEL. The company will cooperate with BHEL in designing
the boilers, and supply identified
pressure parts of the 660 MW
supercritical boilers, along with
windboxes. It will also assist BHEL
with technical advisors during
the erection and commissioning
of the units. All key components
will be manufactured in Alstoms
manufacturing facilities in Concordia
(USA) and in Durgapur (India).
ity stake in a single

listed entity in India,
which will continue to
operate the current
Systech automotive
component businesses
globally and include
CIEs European forgings operations.
Eight years ago,
we at Mahindra set
out to build an Indian
automotive supplier
with a global footAnand Mahindra, Chairman, Mahindra Group (L) and Anton Pradera (R),
print and this drove a
Chairman, CIE Automotive during signing of a global alliance
series of acquisitions
Stock Exchange) and NSE (National
in India and Europe for us.We have
Stock Exchange).
been listening closely to our customers
The proposed business transaction
who have asked to step up our globaliwill be carried out in a series of steps
sation efforts and follow them around
over the next year that will culminate
the world. This Grand Alliance with CIE
in: 1) M&M taking a stake of 13.5%
enables us to Rise above competition,
in CIE Automotive, which is listed in
quickly extends our reach into new
Spain making it the second largest
geographies, and grows our collective
shareholder in CIE. M&M will nomiproduct portfolio in the coming years,
nate two Directors to the CIE Board.
saidAnand Mahindra, Chairman of the
2) CIE Automotive taking a majorMahindra Group.
Eatonappoints new president for Americas
hyamKambeyin Eaton as Regional

anda, who served
President Asia Pacific,
as Eatons Managing
Hydraulics Business.
Director for India from
Shyams diverse
2007 to 2010, has been
global experience
named Regional Presialong with his strong
dent, Americas, for the
knowledge of marketcompanys Hydraulics
ing and manufacturing
Business. In his new
make him ideally suited
role,Kambeyandawill
to lead our Amerihave responsibility for
cas region. I want to
sales and operations in
thankShyamfor the
the Americas region. He
great job hes done
ShyamKambeyanda
will continue to report
leading our Asia Pacific
to Bill VanArsdale,
region, and wish him
President, Hydraulics Group, and will
the best as he steps into this new leadrelocate to Eden Prairie, Minnesota.
ership role, said VanArsdale.
Kambeyandasucceeds Joao Faria,
Since joiningEaton(1995),Kambeywho has moved into a new leadership
andahas held many roles of increasing
role.A search is underway for a succes- responsibility at different countries in
sor forKambeyandain his current role
manufacturing and marketing.
www.industry20.com
Exxon Mobil inaugurates a new laboratory
xxon Mobil has opened its new

Asia Pacific Signum Laboratory at
the Exxon Mobil Shanghai Technology
Center. The new laboratory in China
is the companys first in the Asia
Pacific region, and will provide
customers direct access to high quality
oil analysis to help improve their
equipment performance.
Signum, ExxonMobils oil analysis program,leverages more than 40
years of oil analysis expertise and is
designed specifically to help evaluate
the condition of in-service lubricants.
It is a quick and non-invasive way to
gauge the health of a machine and help
achieve optimum performance.
The new Signum Laboratory at the
Shanghai Technology Center extends
ExxonMobilstechnology footprint in
China and the Asia Pacific region and
enables us to better support customers
in the region. With the Mobil branded
lubricant business growing steadily

in China and the Asia Pacific region,
more and more customers are requesting superior oil analysis to improve
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The
Darrin Talley, Vice President, Marketing, Exxon

Mobil Fuels, Lubricants & Specialties Marketing
Company, is talking on the opening ceremony of the
new laboratory in China.
productivity and reduce downtime. The

new Signum Laboratory will help meet
customers requests quickly through
technical application expertise, said
Darrin Talley, Vice President, Marketing, ExxonMobil Fuels, Lubricants &
Specialties Marketing Company.
The Signum Laboratory at the
Shanghai Technology Center is
designed to exacting laboratory standards, and complies with stringent
quality requirements. ExxonMobil has
full control of the laboratory operations, quality assurance, data integrity,
equipment reliability, and safety standards. The Signum Laboratory provides
access to the Companys centralised
database of oil analysis results, and is
capable of handling several hundred
analyses a day.The lab then generates a comprehensive analysisreport
for most client applications in 24 to 48
hours after sample reception.
blog
Building
Excellence
In a disruptive age, the randomness component of supply
chain rises high, thus, any strategy to build a robust value chain
should take that into account. By Pinak Kulkarni
www.industry20.com
trategists consider scenarios of static,

dynamic, complex and disruptive environments in which industries operate.
Paramaters for determining those are
number of variables in the environment,
and the rate of change of those variables. A disruptive environment is one when the rate of change is
high, and the number of variables in the environment is large. The industry context for that period
of industry life cycle is a chaotic environment. The
current industry is passing through a phase like
that with no surety if that is a permanent change
in the way it will need to operate for years to come.
Supply chains are structures, which support
a random event called sales. Each supply chain
supports a systemic component of demand and a
random component of demand. The state of supply
chains in disruptive stage makes the component
of randomness increase. While enterprises may
engage in the creation of their strategic plans, most
of them are falling short of their desired outcomes.
A pro-active approach to reaching the desired
goals would mean that the enterprise perceives the
need to change, identifies the theme, and wishes
to pursue to change so that it is relevant for its
markets and its needs. This approach would help
in creating a sustainable organisation for creating
supply chain excellence in the disruptive age.
The prominent pillars, which would create
supply chain excellence for companies thriving
on chaos, are Supply Chain Leadership, Revenue
Growth through Supply Partner Collaboration, Supply Chain Risk Management and Reducing Supply
Chain Complexity.
Supply Chain Leadership: Supply chain leaders would need to get conversant with the financial
lingos. The CEOs of companies would appreciate
supply chain leaders, who would be able to talk and
exhibit their positions using the balance sheet, P&L
including the cash flow language. Supply chain
typically contributes to 60 to 90 per cent of the
COGS of the enterprise. The supply chain leader,
hence, is a very important stakeholder for the CEO
to offer his ears to. The future supply chain leaders
will have to present the financial impact of the supply chain to CEOs, if they want to create the next
level of supply chain excellence.
Excellence lies in people. Today, supply chains
lack talents. An important dimension is the Talent Management in Supply Chains. The excellent
supply chains of future would recruit, nurture and
retain talent better than their competitors.
Revenue growth through supply partner
collaboration: Supply management organisations
would need to develop supply strategies based on
www.industry20.com
the proposed supplier relation. The clarity, hence,

the visibility of the type of relationship would help
supply management activities. Relationships that
are based on mutually congruent goals would lead
to partnerships. Partnerships with critically chosen
long term suppliers would support the customer
organisation to generate significant value.
Risk management: The development of modern processes and practices has gone towards
making enterprises more complex with many links.
Just-in-time process requirements, longer and more
complex supply chains, leaner supply chains, stringent service level agreements, single source supply
and greater regulatory requirements have reduced
organisational buffers in the form of inventory, lead
time and capacity. Added to it is worldwide sourcing and marketing, which creates new risks for the
The search of low cost of supply base would tend to create

longer supply chains with additional nodes of supply.
enterprise. Organisations able to create a structured process for risk management would manage
the chaos better.
Reducing supply chain complexity: The
search of low cost of supply base would tend to
create longer supply chains with additional nodes
of supply. The need for customisation would add
to the variety at the input and process stage of
supply chain. Supply chains would become complex. Supply chain excellence would be achieved
if supply chains are able to reduce the complexity
through idealised design leading to sourcing strategies, reducing the layers of channel partners, and
improving the visibility of the chain.
The author is a Supply Chain focused Business
Performance Improvement Coach and Trainer. He
is the founder of SPARK, an organisation focused
on releasing and igniting organisational potential
for Sustainable Excellence. Contact: pinak.k@
think-spark.com.
industry 2.0
- technology management for decision-makers | july 2013
cover story
10
www.industry20.com
Building Better
Supply
Chains
Together
Pallets and Crates, creating a $6 billion
revenue global organisation based on
supplying but not selling these products is
not only intriguing but also a very interesting
business to learn about. This is exactly what
we planned to do, as we walked into the CHEP
Mumbai office one overcast rainy evening.
By P. K. Chatterjee
Photo: Jiten Gandhi
W
www.industry20.com
elcomed at the reception desk by the sight of a wall

chest full of industry awards and a customer logo wall
displaying the top industries in India, we realised that
there is surely a powerful business model in play. We
caught up with Devdip Purkayastha, President, CHEP
India, to unravel the mystery and understand the
dynamics of this business. We recently celebrated our
5th Anniversary as a successful start-up in India, and we are now on our way
to becoming a great organisation, informed Devdip. We dug deeper, we
delved further.
Fierce market competition, focus on mass market, inability to drive up
prices, labour strife, adherence to safety and food standards while complying with stringent government regulations have forced the Indian business
to focus and derive value from their operations. Businesses that can react
faster to customer demands will command the markets. This need for agility has pressurised operations to become lean and green, which in turn has
forced organisations to focus on supply chain that was never on top of the
management agenda.
industry 2.0
11
cover story
Success will be defined by the ability of the
supply chain to respond effectively and quickly to
customers. Being proactive rather than reactive
is the need of the hour. CHEP steps in to address
these challenges based on our decades of experience in working with large organisations in improving their supply chains globally, said Devdip. He
added, Value creation through collaboration at
the back end, to compete in the front end is the
new business mantra, as more and more organisations shift focus on leveraging their supply chains
through value unlocking to be profitable yet ensuring customer delight. But how do pallets and
crates achieve this complex yet comprehensive
task? Apart from a tte--tte, Devdip presented us
with the CHEP business solutions that helped them
create this global business.
Unlocking value
The various operational challenges faced by an

organisation actually are opportunities to value
creation. This value can be generated through Automation, Collaboration and Standardisation based
Equipment Pooling, creating a dynamic, agile,
sustainable and scalable supply chain. CHEP, with
their talent pool of supply chain experts, work closely with the customers, to help unlock values from
their operations. These experts study the upstream
as well as the downstream supply lines creating
an opportunity to collaborate within the eco-system
to enable seamless flow of goods right from the supplier location to the point of consumption.
CHEP FMCG supply chain solutions
Palletisation: This is a method of storing and

transporting goods stacked on a standard pallet,
and shipped as a unit load. It permits standardised
ways of handling loads with common mechanical
material handling equipment such as forklift trucks.
Palletisation helps in storing and transporting goods stacked

on a standard pallet.
12
Standard CHEP material handling platform builds a seamless

ecosystem.
Palletisation enables collaborating across individual

organisation supply chains in creating a seamless
ecosystem. However, creating this robust ecosystem will require a standardised material handling
environment.
Transfer hire model: The transfer hire model
is built for the classic FMCG industry. This solution
drives out the inefficiencies and create an ecosystem of collaboration where the supplier, manufacturer, logistic partner and the retailer share the
use of standard CHEP material handling platform
such as pallets and containers. This collaboration
leads to a seamless ecosystem, as goods move on
standard CHEP pallets across the supply chain of
all these entities.
In this model, CHEP issues ready to use conditioned pallets to the supplier, who palletises
his load and dispatches to the manufacturer. The
manufacturer unloads the raw material and can use
the same pallet to palletise their finished goods.
These goods are transported, again on pallets as
unitised loads to the distribution centre or the 3PL
warehouse for racking. Based on retailers orders,
the palletised load is delivered. Once empty, the
pallets are returned by the retailer to CHEP. These
returned pallets are than conditioned by CHEP and
kept ready for issue. This seamless movement of
goods brings in efficiencies, better resource utilisation, adds value at each node and greens the entire
supply chain.
www.industry20.com
Use of standard pallets, crates and containers help reduce

handling time, labour and space.
TCM facilitates shared use of standardised equipment by

multiple customers.
The CHEP solution is a catalyst to standardisation as all the proponents in the above ecosystem
standardise their docking systems, material handling equipment, racking system and data standards. The benefits derived from collaboration are
shared by all. Use of standard pallets, crates and
containers help reduce handling time, labour and
space. It also helps avoid build-up of packaging
waste such as cardboard, one-way pallets, wooden
boxes, and the cost of their disposal, thereby greening the supply chain.
reusable packaging, which is owned and managed

by the service provider. In managing, the packaging, and the cleaning, conditioning and on-time
delivery are handled as well.
TCM is also built around the concept of equipment pooling, which is the shared use of standardised equipment by multiple customers. The outer
crate is standardised to achieve optimum results
during transportation and handling, yet internally
customisable by placing low-cost durable component
specific insert, which can be reused throughout the
life cycle of the auto component. These crates move
seamlessly from the point of production at the tier-1
or tier-2 manufacturer to the OEM assembly line.
Benefits of TCM: TCM is successful because it
delivers value through reduced overall supply chain
managed packaging costs to the industry, while
providing on-time delivery of reusable packaging,
resulting in a better quality component being delivered to the line. TCM standardises all crates and
pallet footprints throughout the industry. The benefits are shared by each business participating in
the end-to-end supply chain, be it, the component
supplier or the vehicle manufacturer.
As the component moves from the point of
production to the point of consumption in standard packaging, space saving and labour reduction
are visible as neither decanting is required along
the supply chain nor is there a need for separate
storage area for each supplier at the OEM location. Reusable packaging also reduces damage,
especially during monsoon. Eliminating the need
for removal of unwanted waste and the space and
labour required thereon, in the warehouses, it provides saving. Standardised solutions can facilitate
international logistics, not just local and national.
All this leads to a positive impact on the environment. This model follows the 5S methodology. Built
around the proven cost efficiencies of pallet and
plastic crate pooling, TCM will be a game changer
for the automotive logistics industry in India.
CHEP automotive supply chain solutions
The CHEP automotive supply chain solutions are

specifically designed for inbound component logistics. The solution is based on the concept of Total
Crate Management (TCM), which is outsourcing of
designing, development and management of reusable packaging to CHEP. Vehicle manufacturers
and their tier suppliers convert all packaging within
their supply chain to high-quality, ready-to-use, and
High quality clean CHEP
crates are delivered to
Tier suppliers
The
Supplier
OEM
CHEP manages the

whole backend for the
packaging equipment
relocation, cleaning,
conditioning, tracking
and on time delivery
Empty crates
are returned
to the nearest
CHEP Service
Centre
the suppliers
pack with
components
and ship them
through the
supply chain
to other Tier
Suppliers or
OEMs
Crates arrive
loaded for
use by the
receiving Tier
Suppliers or
OEMs
CHEP has specifically designed automotive supply chain

solutions for inbound component logistics.
www.industry20.com
industry 2.0
13
cover story
Standardisation: Driver of
unlocking value
It is observed that value unlocking happens through

automation and collaboration based on standardisation across the eco-system. Standardisation in:
Racking system and material handling equipment
Handling platforms: pallets and crates
Standard trucking body sizes
Racking system and material handling
equipment: Pallet rack is a material handling storage aid system designed to store materials on
pallets or skids. Although there are many varieties
of pallet racking, all types allow for the storage of
palletised materials in horizontal rows with multiple
levels. Forklift trucks are usually an integral part of
any pallet rack system as they are usually required
to place the loaded pallets onto the racks for storage.
Selective pallet racking is the most common
pallet racking system in use today. Selective pallet
racking typically comes in one of two configurations: a roll formed or clip-in configuration and a
structural bolt-together configuration. Roll-formed
selective rack is most commonly manufactured in
a teardrop style (so named as the holes on the column of the upright are shaped like a teardrop).
Pallets then rest on the horizontal load beams
that are held in place by mounting clips. Because
the clips on teardrop configurations can be quickly
moved, the shelves can be easily adjusted to different heights to accommodate various load sizes.
This is convenient for a warehouse that needs to
store a variety of product sizes. Structural pallet
rack systems are very similar to roll-formed pallet
rack systems except the horizontal load beams are
attached to the uprights with bolts and have much
greater weight-bearing capacity. The bolt fixings
make this a form of adjustable shelving. Racks can
be constructed, reconfigured, and dismantled and
reused as necessary.
Selective pallet rack systems provide easy accessibility to all products at all times. A selective pallet
You
Achieve
Creative
Value
Ease of
You
doing
Experience Business
You Receive Reliable
Reduced Cost
No Capex
Lesser Damages
Lower Losses
Optimized
Performance
E2E Supply chain
coverage
Logistics optimization
Transparent
Ordering &
fulfillment
Visibility and
accessibility
Easy to contact
Focus on your core
Proactive and
Responsive
Preventative analytics
& resolution
Proactive account
management
Capable & empowered
Consistent Quality
Operational
excellence
Service excellence
Quality
consistency
Broad distribution
Customer and
retailer coverage
Supplier coverage
Geographic
coverage
Sustainability
Environmental &
social leadership
Sustainable
business model
Beyond compliance
Flexible
Service choice
Product range
Customized
solutions and
support
Secuity of supply
Financial stability
Quantity of product
Service &
operations
infrastructure
The Value Creation Matrix
14
Expert
We Ensue
Agile
We Are
Depend- We Deliver
able
Selective pallet racking is the most common pallet racking

system in use today.
Pallet trucks are used to handle unitised loads.
rack system is commonly used in a big-box distribution application as well as in retail store inventory rooms, cold storage applications and wholesale
stores. It is important that racking design is as per
global standards, capable of handling standard pallets and other material handling platforms.
Pallet trucks are then used to handle unitised
loads. They are either mechanised or hand operated. The pallet truck is an integral part of any warehouse, and standardisation of handling platforms
enable optimised usage.
Handling platforms (Pallets): Standardisation
of these material handling platforms is core to palletisation and the collaboration model. It also leads
to ease of operation, optimisation of equipment and
multiple other benefits. In Asia, a working group of
Efficient Consumer Response (ECR), a joint trade
and industry body working toward making the grocery sector as a whole more responsive to consumer
demand and promote the removal of unnecessary
costs from the supply chain, carried out a study
in 1997 in Singapore to rationalise the 13 different pallet sizes that were in use by the local FMCG
industry. It resulted in the development of the fourway 1 m x 1.2 m standard pallet that is currently in
use for the storage and transportation of goods for
www.industry20.com
Protect the availability and

productivity of your plant
S7-400H High-availability and S7-400FH Safety Controller
www.siemens.com/industry
Failsafe automation system for plants with increased safety requirements

Complies with safety requirements to SIL 3 in accordance with IEC 61508 and IEC 61511,
AK6 in accordance with DIN V 19250, and Cat. 4 in accordance with EN 954-1
Synchronized hardware solution without information loss
Standard modules for non-safety-related applications can also be used in the automation
system
Fail safe and standard modules can coexists in Failsafe solution
Controllers (CPUs) in Hot Stand by system can be separated and installed in separate
cabinets far from each other (up to 10km)
Unique state of art 'Event Synchronization' as a basis for hot stand by systems
For more details mail to : automation.india@siemens.com
Answers for industry.
cover story
the FMCG industry. The 4-way 1,000 mm x 1,200
mm pallet is recommended by the pallet standardisation working group as the standard. The 1,000
mm x 1,200 mm pallet has the following benefits:
Compatible with standard ocean going containers and the majority of trucks
Dominant size used across the globe
Endorsed by ECR Asia
Conform to international standard (ISO 6780
General) purpose flat pallets for through transit
of goods - principal dimensions and tolerances
Wide acceptance in major FMCG and allied
industries, 3PL, retailers
Sufficiently wide for drive-in racking
Ability for sharing among multiple trading
partners.
Crates and containers: New generation Foldable Plastic Crates (FPCs) have been specifically
designed to integrate supply chain activities while
reducing costs and environmental impact. Combining the features of a variety of crates into one,
FPCs offer a unique design providing distinct value
in supply chain efficiencies. The crates are modular by design and may be column stacked, cross
stacked or a combination of both, when erected.
Similarly, Foldable Large Containers (FLCs) are
used for bulkier goods. These robust crates and

containers provide maximum load carrying capacity
for improved product protection. They also provide
safe, efficient movement of products enabling
end-to-end value through various supply chains in
a range of industries. Some benefits of these standard crates are:
Load flexibility allows mixed crate sizes on a pallet
Heavier load capacity allows increased stacking
heights, reducing warehouse space
Reduces reverse logistics transport costs
Enables OHS handling efficiencies
Reduces product damage by eliminating bulging, breaking and collapsing
Enhances load stability
Reduces waste material
Increases internal volume capacity, improving
pack density
Reduces carbon footprint
Suits roller conveyors.
Standard trucking body sizes: The unorganised truck body building industry in India does not
follow any standards in body sizes, thus, leading
to cube loss, product damage and shrinkage. The
vehicle manufacturers deliver bare shell chassis,
and the transporters decide on the dimensions of
the truck body. Standard truck sizes will eventually
lead to shipment of unitised loads that is goods
moving on pallets. However, there are several challenges when these pallets start moving across the
supply chain from one entity to another. This will
create a need for optimised infrastructure at the
warehouses such as dock levellers.
Building the avenue for standardisation
New generation Foldable Plastic Crates from CHEP
The 1,000 mm x 1,200 mm pallet has multiple benefits.
16
As a concept, the industry recognises the potential

of these solutions in making their operations, lean
and green. Many of CHEP customers are already
collaborating, but at a very nascent level. The
desired level of collaboration is based on the premise of standardisation and for this to happen, there
are many external barriers. Today in India, there
is no standard for sizes of trucking body. Racking
layouts are different not only across customers but
even across a single customers various locations.
The traditional trend to own equipment versus
leasing is one such hurdle CHEP is trying to cross.
This has led to different types of material handling
equipment like pallet jacks, pallet trucks and a
conundrum of shipping platforms.
CHEP is working closely with all the stakeholders to bring about the required change. High-level
engagement with its customers as well as industry
bodies like CII, RAI, SIAM, ACMA and ECR to create awareness and acceptance is the way forward.
www.industry20.com
cover story
We are in
the business
of modernising
our customers
supply chains
Material handling at all stages
of supply chains becomes faster
and cheaper with standard
pallets and crates. In a tte-tte, D. Purkayastha,
President, CHEP India,
explains to P. K. Chatterjee,
how the company is
creating value to some
Indian manufacturers,
especially from FMCG
and Automotive
segments.
Q How is CHEPs business shaping up in the

Indian sub-continent?
A We have just completed five years in India. We
look at our business from various stake holders
aspects. First of all from the industry point of view,
pooling, palletisation etc., are quite new concepts.
If you look at the industry acceptance, Ill say,
today we are well accepted in the industry. The
evidence for that is in the last five years, many
industry bodies have recognised us with awards for
Innovation, Sustainability and Returnable Packaging. There is a lot of interest in trying to under-
18
stand our business model. For a sunrise industry,

the most important thing is acceptance.
Then the question arises, within the industry are
the customers accepting us? Two years back, we
were engaged with just the top few international
FMCG customers. Today, we have penetrated this
industry a bit more. Most of the national and international FMCG industries, which are operating in
India, are working with us. If you look at the 3PL
industry, most of the top players in this segment,
both international and national, are now working
with us in India.
www.industry20.com
One big change in the last two years is for

automobile industry, now we have got a different
set of solutions.
In FMCG industry, we built a solution around
pallets, for the automobile industry, we have built
a solution around a range of plastic crates and
containers. That is now very well accepted. Many
of the tier 1 suppliers, some of the tier 2 suppliers
and several OEMs are with us. Parts are flowing
from the suppliers to the OEMs in our crates. We
have done millions of such movements last year.
Each crate contains 20 to 40 parts, I mean multiple
components. That shows how well we are being
accepted by the industry.
Q How is CHEP India transforming as
an organisation?
A We have successfully managed to transition
from an expatriate-based management team to an
Indian team. Today, the leadership team includes
all Indians, which is a big achievement for a new
company in the industry. Secondly, our attrition
rate is very low. Thirdly, we are investing heavily
into our human capital development.
As it is a new kind of industry, nobody has actually worked in this kind of a business. We need to
source employees from other industries and train
them well. One indicator of our progress is shown
by whether our employees are leaving after joining
us. We hardly have any attrition.
Photos: Jiten Gandhi
Q How do you manage so many activities

across the big country?
A Now we have over thirty warehouses, wherefrom we can issue our pallets and crates, and
collect them back. Our penetration has reached
pan-India. Moreover, we are ensuring that we can
maintain consistency of our service, quality, dispatch and retrieval.
We have a core CHEP organisation, which
consists of highly talented and motivated people.
Also, we are supported by a network of service
providers. We work with C&F providers, transport providers, 3PLs and other kinds of manpower
service providers. The CHEP core team owns the
execution, processes and systems and looks after
the service quality.
We are a 3PL service provider in one way, but
we engage with other 3PLs too. Our warehouses
are managed, processed and supervised by us, but
may not be owned by us. Day to day execution is
done by 3PLs.
We follow a Zero Harm Charter for safety, a
commitment made by our CEO and every employee of CHEP. All our associates are also included
www.industry20.com
in this charter. Our training programmes are also

applicable to CHEP associates. Our Tool Box meeting (a weekly meeting at each site) is conducted by
a CHEP manager but includes everyone working
for CHEP at that site.
Q How challenging is it to maintain the
pallets quality?
A A pallet is a very simple product. But the challenge comes when you scale up. Making millions
of pallets all of the same consistent quality is a
big challenge.
Secondly, as pallets are made of a natural
resource, we are very much careful about the
compliance the Indian forest conservation act.
Therefore, we avoid using any illegal wood. For our
Indian operations, we source wood from certified
and harvested forests in Europe, which is completely sustainable.
Food contamination is a very big thing. For
example, if a packet of biscuits, chocolates or a cola
bottle is contaminated, there are many compliance issues around that. We ensure that the wood
in clean and in dry condition (moisture taken out
through technical process to make it light and free
from fungal attack), and dont use any chemicals
on the wood.
So the third challenge is to get so much of wood
and complying with various safety acts so that the
wood does not get contaminated. Any Indian wood
without chemical treatment will catch fungi, but
our imported woods will seldom be contaminated.
As we have several government welfare projects
like NREGA, labourers are gainfully employed in
different parts of the country. This increases costs
of getting manpower to engage as workers in factories. Another challenge for organisations is the
need to be compliant with the labour laws of the
land. So, we need automation to the extent possible
and CHEP helps customers achieve this.
When a pallet is pulled through the assembly line or a conveyor belt, even for a tolerance
of cm, the line or belt may get stuck causing a
disaster. Thus, a pallet is a low-tech product, yet
manufacturing millions of standardised pallets with
high level of dimensional consistency is a big challenge. Our ability to turn this very challenge into
an opportunity is a huge differentiator for us from
the locally available white wood pallets of dubious
source and quality.
We have three manufacturing locations for
pallets in India, one in north, one in west and one
in south. We use a type of epoxy-coated nails to
fix each joint, so that there is no rust even in the
extreme weather condition.
industry 2.0
19
cover story
We follow two sets of standards. One is PQS
(Pallet Quality Standard), whereby we check and
maintain compliance, quality and load bearing
capacity of each pallet. If we make any modification in design, we need to get that approved by
our global engineering team. Also, we have a Core
Work Process to ensure the timeliness of delivery
(within 48 hours), taking back the damaged pallets
etc. We have a quality team to look after all the
products and processes quality.
Q What are the specialties of your innovative
plastic crates?
A We import some of the plastic crates from
Europe, others we get from the Indian suppliers
adhering to our quality standards. All our plastic
crates, which are mainly used for automotive logistics, are foldable. So, bringing them back to our
warehouses is quite easy.
They look flimsy, but actually they are very
tough as they are made of reinforced plastic. Those
are light yet strong. Even if one part of the crate
is damaged, that part can be replaced. They are
stackable, and have a long life. The stacked crates
can be put on a pallet and moved with a forklift.
Also, our crates provide a dust and waterproof
cover on the high-value components. We have got
almost 150 kinds of inserts that fit inside a crate
to prevent shaking of the parts. We have a design
team in India, they design all these inserts. Some
very sophisticated designs are made in Germany.
Our dedicated team of solutions designers works
closely with the customers in mapping their needs
and providing optimum solutions. Like pallets, for
crates also, we maintain two quality practices.
Q How do the customer benefit from using
standardised pallets?
A A pallet can take up to a ton of material. Naturally, there is an issue of industrial safety. Making
pallets in bulk quantity is not easy. Then comes up
their maintenance issues, any failure during use is
very costly.
So, there is a whole bunch of non-monitory benefits that a customer can get by using a standard
pallet pool. They are not violating the laws of the
land, they are not wasting labour for non-core activities and most importantly, high levels of safety and
compliance standards are maintained.
We have companies handling two or three hundred-thousand pallets across the locations. Even
if a company can manage those on their own, the
question arises how do they link those? For example, you are a manufacturer; you get raw materials
from your suppliers. Also, you are feeding to your
20
distributors. If you manage your own pool, your

suppliers are not getting access to that pool. Your
customers also may not be getting the access
To understand the whole beauty of a standard
pallet pool let us take an example. PET bottles
come to a beverage company not as a bottle but in
pre-form shape, the beverage manufacturer blows
and then fills them. Now, we can supply pallets to
the PET manufacturer (pre-form supplier). From
there, pre-form bottles can move to the beverage
manufacturer. The beverage plant can again use
the same pallets to ship their filled bottles to the
distributor. A pallet can take any kind of load, only
the packaging of the products are changed, which
can be kept on the same pallet.
Q Can you focus on the value proposition
part of it?
A We create value for the customer through our
drive for excellence. There are five areas of the
value proposition. First is that the user company
need not invest in pallets or crates. A good quality pallet made from legal wood and adhering to
stringent quality criteria will cost Rs. 1500 to 2000.
Imagine the cost for 50,000 or more pallets that a
company uses. There is always a capital advantage
if they rent it.
Secondly, if a company loads a truck without
using pallets, it will take two to three hours of time.
Obviously, it will take another three hours to get
unloaded. Whereas with palletised loads, a truck
can be loaded or unloaded in just 15 to 20 minutes.
Thus, the trucks turn around goes up drastically.
With unpalletised load, one dock can load eight
trucks in a day, whereas with palletised load the
number can go up to 90 or more. Idle truck is a
cost. Thus, with palletised load truck depreciation
(truck-hour) reduces drastically.
Dock itself is costly being a part of real estate.
The land required to set it up has a huge cost. If
you block the docking area for long, there is a huge
increase in cost.
Then look at the labour cost. For loading and
unloading non-palletised loads, you need to engage
at least six labourers per truck at each end (loading
or unloading).
Also, you know, many FMCG products are very
seasonal. If it is a cola, the peak sales will be in
summer, but for tea or coffee, the peak sales will be
in winter. Many companies find peak sales in the
last week of each month. So, when the demand is
so fluctuating, every company can save through a
good throughput in terms of better truck utilisation, better dock utilisation, better labour utilisation
and so on. When a company needs more pallets, we
www.industry20.com
cover story
will issue that, again when that
company has low demand, we
will put our pallets in a different
product segment. So, our business model is highly scalable for
the customer.
Q How do you fix price for
your service?
A We do not talk of pricing
typically. We are not actually into
pallet or crate selling. We are in
the business of building better
supply chains for our customers. Suppose you are a manufacturer, you have got suppliers, you
have got customers. Goods are
flowing through the eco-system
raw material is coming from the
suppliers to your manufacturing
plant, finished goods are again
going out to your customers.
We improve the flow of goods
through this supply chain in different ways.
So, when we talk to (say) an
FMCG manufacturer, we study
their entire supply chain. We
show this is what is coming from
your supplier, and this is what
you are pumping out to your
retailer or customer, and this is
what you are doing to store the
product at different stages. We
point out (say) this is the lead
time, this is your throughput,
this is your docking efficiency,
this is your space and labour
utilisation, this is your safety,
standards and compliance risks
and so on we show the value of
each event. Then we explain, if
you do so and so things, you will be able to unlock
so and so values leading to so and so amount
of savings. Also, we highlight how much of sales
are being lost because of the inefficiency in their
supply chain.
Then we say, out of this saving, let us share this
much. So, it is a value minus pricing and not a cost
plus pricing that we offer to our customers. We
dont quote that this is our costs and you have to
pay us this.
We just present what we can do for each ecosystem, and from the value unlocked, we propose
to share a percentage.
The Indian ecosystem is not

standardised. We
have warehouses
with different
kinds of racks,
different kinds
of trucks and
forklifts for
moving goods as
well as different
types of material
handling
platforms.
22
This business has a long gestation period. There is a capital

cost around the product itself.
Also, there is a cost of service,
and costs involved in managing
manpower, IT, legal compliance,
etc. We need to maintain the
whole network; we do forward
logistics, reverse logistics, repair
and conditioning etc.
We have a web-based tool
called Portfolio Plus, which is
like a control tower. We can
track anything that is coming in
from the suppliers, anything that
is flowing out from the manufacturer, anything that we issue
from CHEP and anything that
is not returned back to CHEP.
Our whole business model is
around can we improve your
supply chain?
Q How is the concept of
standardisation catching up
in India?
A If you look at our products

all are standardised. Whatever
be the size of the consumer
goods or automotive parts, we
fit them in our pallets or crates.
Within our offerings, we are
quite standardised.
The Indian eco-system is not
standardised. We have warehouses with different kinds of
racks, different kinds of trucks
and forklifts for moving goods as
well as different types of material handling platforms. Those
things are unfortunately not yet
standardised.
We are doing thought advocacy in this area.
We are working with the industry bodies to make
them feel that India needs standardisation in supply
chain eco-system. If you have one type of truck, one
type of pallet, one type of rack, one type of forklift
and so on, everything moves smoothly.
If you look at shipping containers, they were
standardised 60/70 years back. The entire global
cargo runs on standard containers. Many of the
advanced countries have standardised on trucks,
racks, forklifts, pallets and so on. Why not to drive
India too to reap the benefits of standardisation in
supply chain equipment?
www.industry20.com
Congratulations to all the award recipients of

2nd India Backup Power Industry Excellence Awards 2013!
Product Category
Award Category
Award Recipient 2013
Diesel Genset
Kirloskar Oil Engines Limited
2nd India Backup Power
Most Preferred Brand - Customer Service

Leadership (Up to 250 kVA)
Diesel Genset

Leadership (Above 250 kVA)
Cummins India Limited
Industry Excellence
Diesel Genset
Most Preferred Brand - IT/ITES, Realty and

Hospitality
Awards 2013
Diesel Genset
Most Preferred Brand - Construction &

Infrastructure
Diesel Genset
Most Preferred Brand - Telecom
Mahindra Powerol Business
Diesel Genset
Most Preferred Brand - Manufacturing & Process Kirloskar Oil Engines Limited
Industries (Up to 250 kVA)
Diesel Genset
Most Preferred Brand - Manufacturing & Process Cummins India Limited

Industries (Above 250 kVA)
Diesel Genset
Customer Value Enhancement
Mahindra Powerol Business
UPS
Most Preferred Brand - IT/ITES
Emerson Network Power

(India) Pvt. Ltd.
UPS
Most Preferred Brand - BFSI Ofce
Schneider Electric IT Business

India Pvt Ltd
UPS
Most Preferred Brand - BFSI Retail Branch &

ATM Infrastructure
NUMERIC
UPS
Most Preferred Brand - Manufacturing &

Process Industries

(India) Pvt. Ltd.
UPS
Most Preferred Brand - Power and Oil & Gas

(India) Pvt. Ltd.
UPS
Most Preferred Brand - Hospitality

India Pvt. Ltd.
UPS

Leadership (Up to 20kVA)

India Pvt. Ltd.
UPS

Leadership (Above 20kVA)

(India) Pvt. Ltd.
Battery
Most Preferred Brand - Telecom
Amara Raja Batteries Limited
Battery
Most Preferred Brand - Residential
Exide Industries Limited
Battery
Most Preferred Brand - Manufacturing & Process Exide Industries Limited

Industries
Battery
Most Preferred Brand - Commercial Sector
Exide Industries Limited
Power Inverter
Most Preferred Brand - Commercial & Industrial
Su-Kam Power Systems Ltd.
Power Inverter
Most Preferred Brand - Residential
Microtek International Pvt Ltd.
M E D I A PA R T N E R S
To know more about India Backup Power Industry Excellence Awards, please contact:
Saurav Mitra - M: +91 9818192407
Anindya Das - M: +91 9830080724
l
l
T: +91 11 66071007
T: +91 33 66273362
l
l
E: sauravm@frost.com
E: anindya.das@frost.com
Optimising
Power Plant
Layout
The 375 MW Dhuvaran Phase III
Combined Cycle Power Project is
scheduled to be commissioned by
September 2013. Accommodating
the entire plant within a small
available area was a big challenge.
Let us see how the design has been
done, and what kind of innovative
equipment the power plant hosts.
ujarat State Electricity Corporation Ltd.

(GSECL) is currently setting up a 375
MW Thermal Power Station at Dhuvaran,
Khambat District in Gujarat. The thermal
power station at Dhuvaran was the first
power station of erstwhile GEB (Gujarat Electricity
Board). It was a coal-based power stationwith four
units of 63.5 MW each, two units of 140 MW each,
and a total installed capacity of 534 MW.
All the above units were commissioned between
1964 and 1972. Now, all those units are closed,
and these ageing plants are being replaced with
plants of very high efficiency, which will bring a
great relief in terms of power supply to the entire
zone. Dhuvaran is geographically located at sea
coast, and the complete town is being developed
due to setting up of this thermal power plant, which
24
also offers a big source of employment and will further catalyse the developments in this area.
L&T Power, in global competitive bidding proposed gas-based single shaft combined cycle power
plant to the owner GSECL, and it was very well
www.industry20.com
accepted by them. L&T was awarded the work on

EPC basis by GSECL. As part of L&T, L&T-S&L
(Larsen & Toubro - Sargent & Lundy) was engaged
to carry out the complete proposal engineering
before the award of work, and later complete detail
engineering for this project.
Dhuvaran single shaft combined cycle

power plant
A gas-based Combined Cycle Power Plant (CCPP)

is defined by the arrangement of main equipment,
viz. gas turbine, steam turbine and generator. For
a multi shaft CCPP, gas turbine and steam turbine
are on different shafts with separate generators.
However, single shaft CCPP, gas turbine and steam
turbine are on the same shaft with a common generator between them.
One of the largest vertical HRSG manufactured

by L&T
Indias largest three phase single transformer
Largest common foundation of gas turbine,
generator, steam turbine condenser and GTG
exhaust duct
375 ton EOT crane for turbine building
Bypass de-aerator on BFP building
The client demanded: each and every facility required for the combined cycle power plant,
viz., power block, IDCT (Induced Draft Cooling
Tower), 7 bay switchyard, water pre-treatment and
post-treatment facilities and 150m3/hr ETP, cooling water system, overhead tanks, central control building for plant DCS, and also switch yard
SCADA system, service building, stores, workshop,
canteen, fire station and gate complex etc. They
had also desired that this size of the plant would be
standardised for their future combined cycle plant.
It was quite a big challenge to prepare the most
compact plot plan in a brown field project considering the construction sequence to meet the
completion schedule. The best way was to prepare the entire plot plan with actual 3D models
of various facilities. This ensured the most optimum utilisation of the entire plot area and perfect
visualisation of the facilities for the client, and it
obviously helped in the faster approval of the plot
plan and all building drawings from the client end.
The entire 3D model was prepared by in-house
PLADES software.
Single shaft combined cycle project
The engineering carried out in Dhuvaran Single

Shaft Combined Cycle Power Plant is exemplary,
because of its unique features as briefed below:
Single shaft arrangement first in India by a
non-OEM/EPC contractor
www.industry20.com
In the single shaft arrangement, the gas turbine,

generator, HP turbine, IP/LP turbine, condenser,
the SSS clutch and the GTG exhaust duct is on the
common foundation.
The land required for power block area including
the transformer and HRSG and BFP building is
reduced by 20 per cent as compared to multi shaft
combine cycle power plant:
In multi shaft arrangement land required is
10500 m2 approx
In single shaft arrangement land required is
8600 m2 approx
However, the design of the building, the foundation and the piping layout along with the bus duct
for the generator becomes a real challenge. Siemens has installed many such machines and they
have perfected the entire piping layout and the
entire auxiliaries to meet the best optimised result.
However, L&T-S&L was doing the engineering for
the first time, and it was a great challenge since
the benchmark was already fixed by Siemens and
the Client, and L&T Power was expecting perfectly
industry 2.0
25

similar result from its end with all the auxiliary
equipment made in India. Again, the perfect 3D
modeling helped meet all the requirements of Siemens interconnecting piping, main steam piping,
cooling waters system, IPBD and also electrical and
control equipment.
Civil and structural design
The design of the power block building along with

the common foundation of single shaft train of GTGSTG-Generator-condenser-GTG Exhaust duct was
the biggest challenge. The power block building
column and foundation was designed by L&T-S&L
civil and structural engineers for 375 T EOT crane.
Later the 375 T EOT crane was successfully used
for the erection of the 370 T Generator.
In order to meet the stringent plant conditions,
innovations were required at every stage of the
project backed by high degree of accurate 3D modeling platform. The integrated link between analysis and modeling software provided by Bentley
Solution was very useful for successful implementation of the desired optimised layout. The controlled
and accurate modeling potentials of Bentley aided
in identifying the hindrances in key areas of the
TG Building at a very premature stage that could
have been a constraint later on.
While working for the first time on process
design and erection of single shaft train, L&T-S&L,
with its process driven and coordinated environment, worked out a complete 3D Model of the basic
plant and auxiliaries. Development of each facility from right from start and bringing to reality
required a high accuracy. Models were exported to
create 3D PDF having facilities to provide details of
member properties at a click of button, which were
provided for site execution. Civil design of supporting structure was done using STAAD V8i, having excellent interface with Excel helped manage
changes at a much faster pace. Standard departmental calculations and innovative tools were used
for application of loads, properties and design
parameters to the STAAD Model.
Another challenge was to route the four numbers of main steam piping of 1200 mm dia (including insulation) and feed water piping along with
the main pipe rack within the confined space of 5m
wide corridor between BFP building and HRSG.
All the auxiliaries of steam cycle were required
to be planned within a 13m wide corridor only on
one side of turbine train below 2m level, so as to
clear the GTG air intake duct. All the models were
prepared on 3D platform, which helped in resolving inter disciplinary interferences very easily,
efficiently and within the scheduled time. Navigation tools were used to have actual walk through to
study and solve the critical congested areas including installation and removal procedure.
The use of Bentley solar time feature integrated
with project scheduling software was used for complete scheduling of structural erection of compact
main pipe rack. The elements erection procedure
of the main pipe rack was identified step by step to
facilitate the construction group to avoid unforeseen circumstances which might arise within a
compact area. The schedule, erection procedure,
hindrances etc., were studied using 3D modeling.
The common foundation was of size 57m long,
10m wide and 9m deep. The concrete quantity is
2400 m3, and reinforcement is 285 tonnes. The
total structural steel in the power block is approximately 1300 tonnes.
Indias largest three phase single

transformer of 477 MVA
Bentley Solution was very useful for successful implementation

of the desired optimised layout.
26
An advantage of three phase single transformer is

reduction in number of equipment, which in turn
requires less land. However, its main advantage
lies in installation, maintenance and operating cost
which is lesser as compared to three-phase three
transformers. Being a very compact plant, there
was a requirement for providing a perfect solution
for removal (for maintenance) of the heavy (425
MT) three-phase Generator Transformer (GSU). A
3D video simulation was prepared for removal of
the GSU from its foundation.
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375T EOT crane
Siemens single shaft arrangement generator stator

and rotor needed to be lifted together. EOT (Electric Overhead Travelling) Crane of power block
building was selected for combined lifting weight of
the generator stator and rotor. Single EOT capacity of 375T was installed in power block building,
and the power building columns are designed for
375T crane load. The installation plan was actually
demonstrated through the video for the purpose of
approval of the entire TG hall design.
Power cycle with bypass de-areator
In conventional CCPP, de-aerator will always

remain in service throughout the power plant
operation cycle. In Dhuvaran, de-aerating condenser with bypass de-aerator has been installed in
the system in place of the conventional de-aerator.
This system will perform the required de-aerating
of condensate, and at the same time reduce equipment cost considerably. The advantages of this
system are multifold, like reduction in plant cost,
increased power output and improved efficiency,
improved plant reliability, etc. The other unique
feature of this de-aerator design was the installation of the de-aerator above BFP building at 18 m
level on steel structure; however the BFP building
was RCC building.
New concept of PRDS system in place of

auxiliary boiler
All combined cycle power plant with single unit

uses auxiliary boiler to generate auxiliary steam.
Auxiliary steam is required at very early stage of
start-up of plant for packing steam turbine glands.
In the Dhuvaran project, gland sealing steam will
be generated from cold reheat line with the help of
PRDS, where the steam is available within required
range of parameters and in very short time. The
main advantage of PRDS is reduction in number of
equipment, which directly reduces plant installation and operation & maintenance cost.
Higher combined cycle plant efficiency
The single shaft arrangement has gross plant efficiency of 58.67 per cent, which is the highest in its
class. It also possesses the best possible gross heat
rate of 6136 kJ/kWhr, which in turn will directly
benefit in lesser tariff to the user and savings of
the precious natural gas, which is being supplied
by GAIL.
Reduced water consumption
The cooling water system is provided with two

types of water. Pond water will be used from
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Key Technical Features

Switchyard control and operation by SCADA
Natural Circulation Vertical Heat Recovery
Steam Generator (HRSG) by L&T
Siemens SGT5-4000F Gas Turbine, capacity
245 MW
Siemens SST5-3000 Steam Turbine of capacity 130 MW, two cylinder (HP, IP-LP) axial
exhaust
GT/ST common generator rated 471 MVA,
20 kV
Cycle auxiliaries like BFP, CEP, DM, CW pump,
vacuum pumps and heat-exchangers etc.
By-pass de-aerator and de-aerating condensers by L&T
Induced draft cooling tower by L&T
Balance of plant including water system with
ETP RO facilities, HVAC, firefighting, fuel gas
system etc.
Generator transformer 3-phase unit, 20/235
kV, 477 MVA
Power evacuation by 220 kV outdoor switchyard 2M+1T, 7 bays
November to March, and the brackish bore well

water will be used for summer seasons. Accordingly, the entire cooling water system is planned with
dual water system. The CCPP has been planned
with an Effluent Treatment Plant (ETP) with RO
system of 150 m3/hr, which is installed inside the
plant boundary to recycle plant waste water. The

treated effluent water of 90m3/hr is being used in
CW cooling water system. Further, sweet bore-well
water through RO-DM plant is being converted into
the potable water, and other steam cycle makeup
water. This potable water is being supplied to the
township and nearby areas. It has helped in overall
reduction of the water requirement of the plant.
One of the largest natural circulation

vertical HRSG
Dhuvaran project will have Indias one of the largest natural circulation vertical HRSG used in this
project. It is a triple pressure HRSG capable of
producing steam, which can run steam turbine up
to 150 MW. The complete design, fabrication and
execution is being carried out by L&T. HRSG is
triple pressure with reheat, natural circulation and
the flow inside the HRSG evaporator is through
natural circulation. The biggest advantage of the
natural circulation HRSG is reduced auxiliary
power consumption of 100 kW.
industry 2.0
27
control & automation
Managing
Convergence
Issues
The convergence of manufacturing

and enterprise networks increases
access to manufacturing data, which
assists manufacturers in making better
business decisions. However, the
process offers various challenges. How
to mitigate them?
ndustry adoption of EtherNet/IP for control

and information resulted in the wide deployment of standard Ethernet in manufacturing.
This deployment acts as the technology enabler for the convergence of manufacturing
and enterprise networks. By gaining timely access
to production Key Performance Indicators (KPIs)
at the right levels, manufacturers benefit from
network convergence. Information convergence
between manufacturing and business systems also
enables greater business agility and opportunities
for innovation.
This technology and network convergence
creates an unclear demarcation line for network
ownership. Groups that traditionally had limited
interaction within manufacturers now collaborate.
To support this network convergence, control
engineers and Information Technology (IT) professionals experience both organisational and cultural convergence as well as share best practices.
28
The emergence of manufacturing IT, distinct from

enterprise IT, takes this collaboration to a completely new level.
Control and information convergence
In the manufacturing industry, islands of automation for production and control systems have
increasingly converged into an integrated plantwide control and information platform.
Users also unite disparate batch, continuous
process, discrete, safety, motion, and drive control
industrial network technologies into a multi-disciplined industrial network by utilising EtherNet/IP, a
standard Ethernet technology.
Wide deployment of EtherNet/IP in manufacturing triggered migration from the traditional 3-tier
network model to a converged Ethernet model, as
shown in Figure 1. Convergence has not flattened
the network model. Segmentation of functions,
geographic areas, and security for domains of trust
requires a multi-tier model.
The traditional 3-tier network model evolved
during the early days of Ethernet. Proprietary, vendor-specific industrial networks proliferated early
on, until organisations like ODVA began promoting
a Common Industrial Protocol (CIP).
By dividing a network by function and geographic area into smaller Local Area Networks (LAN),
the 3-tier network model provides natural segmentation. This lessens the impact of traffic management and security. By connecting devices such as
drives and robots with a controller, a device-level
network controls, configures and collects data from
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Figure 1: Traditional 3-Tier Manufacturing Network Model and Converged Ethernet Manufacturing Network Model
these intelligent devices. A device-level network

in one area does not typically interact with other
device-level networks. By acting as a backbone for
device-level networks, control networks interlock
controllers and provide connectivity to supervisory
computers. A gateway maps information from the
manufacturing systems to the enterprise systems.
The manual, store-and-forward mapping mechanism required significant implementation and support efforts.
The naturally information-enabled, converged
Ethernet model eliminates the need for dedicated
gateways. Although the technology has converged,
the model has not flattened. Data access from anywhere at anytime presents a new challenge. Manufacturers must protect their assets from both internal and external threats because users typically
know how to plug into Ethernet. No longer isolated
in the manufacturing realm, industrial networks
make manufacturing computing and controller
assets susceptible to the same security vulnerabilities as their enterprise counterparts.
Plant-wide networking with Ethernet technology requires planning and structure. Establishing
smaller LANs, to shape and manage network traffic as well as creating domains of trust that limit
access to authorised personnel requires a multitier, segmented methodology.
Built on industry standards and

methodology
Designing and deploying a robust and secure network infrastructure requires a well-planned roadmap. The manufacturing process dictates usage
of equipment such as sensors and actuators as
well as their geographic deployment. By consult-
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ing operations, users can determine information

flow requirements. Users should also identify what
production information the business system needs.
Finally, the roadmap should address standards
implementation for common terminology, methodology and best practices.
RAfM are built on technology and manufacturing
standards common between IT and manufacturing.
These include technology standards such as IEEEs
802.3 standard, unmodified Ethernet, Internet
Engineer Task Force (IETF) Internet Protocol (IP),
and ODVAs CIP. Additionally, RAfM uses manufacturing standards to establish a Manufacturing
Framework as shown in Figure 2. This framework
establishes a foundation for network segmentation
for traffic management and policy enforcement.
Rockwell Automation and Cisco share a common technology view by supporting the facilitation
and acceleration of network convergence as well
as the promotion of standard, unmodified Ethernet.
In addition to jointly serving as principle members
of ODVA, the companies individually participate in
standard organisations like ISA.
Throughout the Reference Architectures for
Manufacturing, terminology refers to layers,
levels, and zones. The Open Systems Interconnection (OSI) seven-layer reference model defines
layers e.g., layer 1 for Physical, layer 2 for Data
Link, layer 3 for Network. Layer 2 devices forward
data and provide network services based on Data
Link layer characteristics such as Media Access
Control (MAC). Layer 3 devices forward data and
provide network services based on IP.
Figure 2 depicts levels and zones of the Manufacturing Framework. Both ISA-95 and the Purdue
Reference Model for Control Hierarchy segment
industry 2.0
29

industrial control devices into hierarchical levels of operations within a manufacturing facility. Using levels as common terminology breaks
down and determines plant-wide information flow.
For enhanced security and traffic management,
ISA-99 segments levels into zones. Zones establish domains of trust for security access and smaller LANs to shape and manage network traffic.
The Manufacturing Framework groups levels
into the following zones for specific functions:
Enterprise Zone Levels 4 and 5 handle
IT networks, business applications/servers (e.g.,
email, enterprise resource planning ERP) as well
as intranet.
Demilitarized Zone (DMZ) This buffer
zone provides a barrier between the Manufacturing and Enterprise Zones, but allows for data and
services to be shared securely. All network traffic
from either side of the DMZ terminates in the
DMZ. No traffic traverses the DMZ. That is, no
traffic directly travels between the Enterprise and
Manufacturing Zones.
Manufacturing Zone Level 3 addresses
plant-wide applications (e.g., historian, asset
management, Manufacturing Execution Systems MES), consisting of multiple Cell / Area Zones.
Cell/AreaZone Levels 0, 1 and 2 manage
industrial control devices (e.g., controllers, drives,
I/O and HMI) and multi-disciplined control applications (e.g., drive, batch, continuous process
and discrete).
Shaping and managing network traffic

Developing a robust and secure network infrastructure requires protecting the integrity, availability and confidentiality of control and informa-
Figure 2: Manufacturing Framework
30
tion data. Users should address the following when

developing a network:
Is the network infrastructure resilient enough to
ensure data availability?
How consistent is the data? Is it reliable?
How are data used? Are those secure from
manipulation?
RAfM provides recommendations, design guidance, best practices, methodology (Figure 3) and
documented configuration settings. This helps
establish a robust and secure network infrastructure for control and information data availability,
integrity, and confidentiality. Built on industry
standards and a future-ready network foundation,
it addresses todays applications like safety through
CIP Safety, and tomorrows applications like motion
through CIP Motion, time synchronisation through
IEEE 1588 Precision Time Protocol (PTP) with CIP
SyncTM, an d incorporation of Voice over IP (VoIP)
and video on demand (VOD).
IT professionals frequently use reference architectures as a common concept and tool within the
enterprise. From retail companies to data centers,
Cisco develops reference architectures for a variety
of industries and applications. Reference Architectures for Manufacturing, as shown in Figure 3,
incorporates the Rockwell Automation Integrated
Architecture and Cisco Ethernet-to-the-Factory, a
Cisco Validated Design.
To align with the Manufacturing Framework,
as shown in Figure 2, RAfM utilises the Campus
Network Reference Model. Common with enterprise networks, this multi-tier model naturally segments traffic into three main tiers: core, distribution and access.
Layer 2 access switches aggregate control
devices within the Cell/Area Zones. Additionally, layer 2 provides network services such
as switching, resiliency via Spanning Tree
Protocol (STP), Quality of Service (QoS), Virtual Local Area Network (VLAN) and security. Multilayer (layers 2 and 3) distribution
switches reside in the Manufacturing Zone
(level 3), brings together access switches
from the Cell/Area Zones and provide network services. Services include layer 2 and 3
switching, routing, load balancing, resiliency
via Hot Standby Routing Protocol (HSRP),
QoS and security. Finally, the core switch
aggregates distribution switches and provides
high speed switching.
Designing a resilient network infrastructure with low latency and jitter increases the
availability and integrity of control and information data. Latency, or delay, represents the
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time elapsed from when one device transmits data

until another device receives it.
Jitter represents the variation of delay. Converging multidiscipline control and information traffic
into a common industrial network requires reducing latency and jitter.
To reduce network latency and jitter, RAfM recommends segmenting and prioritising network traffic. Segmentation reduces the impact of broadcast
and multicast traffic.
Reducing network latency and jitter starts with
the Cell/Area Zone. When designing the Cell/Area
Zone, users should create smaller layer 2 Cell/Area
Zone network segments organised by function or
geographic area. Restrict data flow out of the Cell/
Area Zone unless plant-wide operations explicitly
require it. Each Cell/Area Zone should be implemented with a dedicated VLAN and IP subnet.
Network topology choice impacts the availability and integrity of control and information data.
Figure 3 depicts the bus/star, ring and redundant
star topologies described in RAfM. Since applications drive topology choice, users should address
key considerations. These include application performance requirements, network latency and jitter
tolerance, downtime and Mean-Time-To-Repair
(MTTR) tolerance as well as future upgrade and
expansion requirements. From right to left, Figure
3 depicts increases to network resiliency, modularity, flexibility and implementation complexity.
As a best practice, implement a resilient topology
such as the recommended redundant star topology.
Redundant star provides natural segmentation,
shapes traffic to help reduce latency and jitter by
improving data integrity as well as offers the resiliency required for greater data availability, which
helps reduce downtime. Modularity of the redundant star also increases scalability and flexibility
for network expansion and upgrades.
Not all network traffic is created equal, nor
should users treat it equally. To minimise application latency and jitter, control data should have priority within the Cell/Area Zone. Quality of Service
Figure 3: Reference Architectures for Manufacturing (RAfM)
(QoS) gives preferential treatment to some network

traffic at the expense of others. Control data is
more sensitive to latency and jitter than information data.
To minimise latency and jitter, users should
apply QoS to control data within the Cell/Area
Zone. Before implementing QoS within the Manufacturing Zone, use a multidiscipline team of operations, engineering, IT and safety professionals to
establish a QoS policy for the Manufacturing Zone.
Although not specifically addressed within
RAfM, developing a robust network infrastructure
requires proper design and implementation of an
industrial Physical layer.
Physical media, layer 1, within the Cell/Area
Zone is subjected to environmental and noise conditions not found in the enterprise. These conditions can impact availability and reliability of data,
introducing latency and jitter.
Industry 2.0, Indias only

magazine for the decision
makers and influencers across
the manufacturing and supply
chain industries, invites your
valuable inputs and opinions.
To get real time, in depth focus on the

Indian Manufacturing Industry, please log on to:
.
.
www.industry20.com
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industry 2.0
For editorial inputs and enquiries:
P.K. Chatterjee
Cell: +91 9320912419

31
E-mail: pk.chatterjee@9dot9.in
technology management for decision-makers | july 2013

The Manufacturing Zone contains all systems,
devices and controllers critical to controlling
and monitoring plant-wide operations. This zone
includes Site Manufacturing Operations and Control functions (level 3) as well as multiple Cell/Area
Zones. To preserve smooth plant-wide operations
and functioning of the systems and network, this
zone requires clear isolation and protection from
the Enterprise Zone via the Demilitarized Zone
(DMZ). All manufacturing assets required for the
operation of the Manufacturing Zone should remain
there. Assets include Rockwell Automation Factory
Talk Integrated Performance and Production Suite
as well as other applications and services, such as
Active Directory, DNS, and DHCP.
Level 3, Site Manufacturing Operation and Control, has a dedicated network segment within the
Manufacturing Zone, and contains the FactoryTalk
servers. Users should assign this network segment
with its own IP subnet and VLAN. The FactoryTalk
servers connect to a dedicated multilayer access
switch, which aggregates into the layer 3 distribution switches. The distribution switches act as the
network segments default gateway. To provide
redundant default gateways to the Cell/Area Zones,
distribution switches should use Hot Standby Routing Protocol (HSRP) or Gateway Load Balancing
Protocol (GLBP). Distribution switches will route all
traffic to and from the level 3 network segment.
Securing manufacturing assets
The recommended defense-in-depth approach,

depicted in Figure 4, helps in addressing internal and external security threats as well as helps
provide confidentiality for control and information
Figure 4: Defense-in-Depth Multiple Layers
32
data. By utilising multiple layers of defense (physical and electronic) at different levels within manufacturing, this approach addresses disparate types
of threats. No single technology or methodology
fully secures industrial networks.
A comprehensive security model should be
designed and implemented as a natural extension
to the manufacturing process. Security should
not be implemented as an afterthought or bolt-on
component. Defense-in-depth layers for securing
manufacturing assets include:
Physical Security This limits physical access
to authorised personnel for areas, control panels, devices, cabling, control rooms and other
locations as well as escorts and tracks visitors.
Network Security This contains the infrastructure framework, such as firewalls with
intrusion detection and intrusion prevention
systems (IDS/IPS).
Computer Hardening This includes patch
management and antivirus software as well
as removal of unused applications, protocols and
services.
Application Security This contains authentication, authorisation and audit software.
Device Hardening This handles change
management and restrictive access.
The recommended Manufacturing Network
Security Framework, utilising defense in depth is
depicted in Figure 5 and includes:
Manufacturing Security Policy This security policy roadmap identifies vulnerability
mitigation. A multidiscipline team of operations,
engineering, IT and safety should develop this
manufacturing security policy.
Demilitarized Zone (DMZ) This buffer
zone provides a barrier between the Manufacturing and Enterprise Zones, while allowing
users to securely share data and services. All
network traffic from either side of the DMZ
terminates in the DMZ. No traffic traverses the
DMZ, which means that traffic does not directly travel between the enterprise and manufacturing zones.
Defending the Manufacturing Edge Users
should deploy Stateful Packet Inspection (SPI)
firewalls (barriers) with intrusion detection/prevention systems (IDS/IPS) around and within the
industrial network.
Protecting the Interior Users should implement Access Control Lists (ACLs) and port security on network infrastructure devices such as
switches and routers.
Endpoint Hardening This restricts access,
prevents walk up, plug in access and uses
www.industry20.com
change management to track access as well

as changes.
Domains of Trust Users should segment the
network into smaller areas based on function or
access requirements.
Physical Security This restricts physical
access to manufacturing assets and network
infrastructure devices.
Security, Management, Analysis and
Response System This monitors, identifies,
isolates and counters network security threats.
Remote Access Policy For employee and
partner remote access, implement policies, procedures and infrastructure.
Information convergence via the DMZ
Information convergence has helped provide

manufacturers with greater business agility and
opportunities for innovation. With these opportunities, come challenges. Manufacturing computing
and controller assets have become susceptible to
the same security vulnerabilities as their enterprise
counterparts. Protecting manufacturing assets
requires a defense-in-depth security approach.
The first best practice calls for establishing a
DMZ between the Enterprise Zone and the Manufacturing Zone. As noted earlier, the DMZ is a
buffer zone providing a barrier between the Manufacturing and Enterprise Zones, but allows for data
and services to be shared securely. All network
traffic from either side of the DMZ terminates in
the DMZ. No traffic traverses the DMZ. That is, no
traffic directly travels between the Enterprise and
Manufacturing Zones. Finally, users should contain
all manufacturing assets, such as FactoryTalk,
required for manufacturing operations within the
Manufacturing Zone.
To maintain these best practices while allowing
information convergence between the Enterprise
and Manufacturing Zones, Manufacturing Zone
applications should replicate data to an application
mirror within the DMZ. Users should then replicate
the data from this application mirror to an application within the Enterprise Zone. This can be either
unidirectional or bidirectional.
An example of data mirroring is shown in Figure 6. Since traffic cannot traverse the DMZ, an
MSSQL server in the Manufacturing Zone cannot
directly transfer data to and from an MSSQL server
in the Enterprise Zone. This means that all traffic
between the two zones must be initiated or terminated in the DMZ.
Users should implement the methodology shown
in Figure 6 to enable information convergence
while maintaining DMZ best practices. The Fac-
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Figure 5: Manufacturing Network Security Framework
Figure 6: Users should implement the above methodology for information convergence
toryTalk Transaction Manger with MSSQL server

solution involves:
The FactoryTalk Transaction Manager server
(level 3) is configured to read/write its SQL data
to and from an MSSQL server (data mirror)
located in the DMZ.
The MSSQL server data mirror in the DMZ then
replicates the data to and from the Enterprise
Zone MSSQL server.
Business systems within the Enterprise Zone
only access the enterprise MSSQL server.
industry 2.0
33
challenges & solutions
Supporting
the Growth
Historically, India
has been regarded
by many in the
industry as a prime
power market, but
times are changing,
and today
manufacturers
are seeing an
increased demand
for engines for
standby power
solutions.
By Nigel Baseley
ver the last few

years, the shortfall
in the power
requirements
needed to sustain
the demands of a rapidly growing
market and economy, has driven
increased demand for and
reliance on standby power,
delivered through a range of
generator sets powered by
reliable, dependable and cost
effective diesel engines.
Clean, reliable and efficient
power, when and where you need
it, is a key requirement for any
rapidly developing country. For
that reason, today India is an
important market for standby
34
power as people, public

services and businesses, both
large and small, strive to deliver
services, protect livelihoods and
ensure the future wellbeing of
their families.
The investment, development
work and delivery programme
for a new wave of power plants
required to meet the insatiable
domestic demand for power has
been identified in Indias 12th
Five-Year-Plan, but in the
meantime peoples need for a
reliable source of power continues to place a strain both on the
grid and on the power distribution system. Latest reports show
that electricity losses in India
during transmission and distribution currently stands at around

32 per cent, while overall power
shortages in India are, according
to statistics, in the range of 10 to
12 per cent, with that figure
reaching as high as 15 per cent
in the south of the country.
Through the Five Year Plan, a
phenomenal $1 trillion investment is being made in the
countrys infrastructure, which
will support the long term
stability required to sustain and
grow Indias economy. However,
in the interim, these activities
necessarily require a standby
power supply, which is both
reliable and cost effective.
www.industry20.com
While India has, until now,

been regarded by many as a
prime power market, the
industry and Perkins are seeing
an increased demand for standby
power generator sets.
Requests for standby power in
public services, such as Delhi
Airport Metro line, where our
Perkins 4000 Series engines
provide standby power at six
tube stations in case the lights go
out, or at the Reliance Hospital
in Mumbai, where our 4000
Series engines provide reassurance that should be there when
the mains power fail (lives will
not be in danger), are increasing
in their frequency.
Reliability and durability are
of course, essential features for
any trusted supplier of backup
power. The engine and generator
set must be a dependable and
reliable source of power; able to
work at a moments notice, and
deliver the power that is
required in an instant. The
engine must be efficient in terms
of running and maintenance
costs, and be supported by an
aftermarket network that can
respond quickly.
In conjunction with our
distribution partners in India, we
at Perkins have been working
closely with many businesses and
generator set manufacturers, to
provide the most appropriate
power solutions for a rapidly
Perkins 4000 Series Engine
www.industry20.com
changing marketplace that is

contributing significantly to a
positive future for India.
This has resulted in the
market for diesel engines within
EP, whether for prime or standby
power requirements, witnessing
a significant growth. Peak power
shortages across the country and
the business development that is
being seen, have driven a
previously unprecedented
demand for generator sets as a
source of backup power.
This has resulted in many of
our customers witnessing
substantial growth in their
domestic sales over the last few
years, supported by customer
requests to have the reassurance
of a reliable Perkins engine as
part of their standby solution.
While each and every individual installation has its own
unique challenges, there are
some common themes.
Reliability, cost-effectiveness
and product support are messages at the forefront of peoples
thoughts, and while each of these
are synonymous with most global
markets, there are situations that
are very much distinct to the
Indian continent.
For example, standby power
in India is very different from
that in a more mature market,
Perkins 4016 - 61 TRG Front View

with generator sets in standby
mode running for eight or more
hours a day when brown-outs
occur; a much longer period that
normally associated with that
mode of operation.
From a technological point of
view that means the engine has
to overcome the challenges
posed by its application, its
location, its installation and its
on-going maintenance.
Reliability is a key requirement
and that is why mechanical
engines are so predominant.
These engines offer simplicity, yet
are extremely robust and capable
of withstanding the challenging
environment and conditions often
imposed on them, while being
technologically advanced.
The independent power sector
has an important role to play in
helping India meet its energy
needs, for the time being as well
as in future. It complements the
grid, and on occasions it takes its
(grids) place.
The author is the Marketing Director at
Perkins Engines Company Limited.
industry 2.0
35
supply chain
Challenges of
Most of the Indian large scale manufacturers depend on supplies

from Micro, Small or Medium Enterprises (MSMEs). These MSMEs
face many challenges that often disrupt their supply chains. Unless
their challenges are reasonably addressed, it is very difficult even for
the large enterprises to buid a robust supply chain. By Pavan V. Murthy
36
www.industry20.com
Photo Credit: www.photos.com
MSME
Suppliers
mall and Medium

Enterprises (SMEs)
play a very important role in the entire
Supply (Value) Chain.
Be it any industry, they form a
backbone for the respective segment. Typically, SMEs are of the
following categories:
Micro-enterprise: Investment
in equipment does not exceed
Rs.10lakh
Small enterprise: Investment in equipment is more
than Rs.10lakh but does not
exceed Rs.2crore
Medium enterprise: Investment in equipment is more
than Rs.2crore but does not
exceed Rs.5crore
The Indian micro- and smallenterprises (MSEs) sector plays
a pivotal role in the country's
industrial economy. It is estimated that in value, the sector
accounts for about 45 per cent of
manufacturing output and about
40 per cent of total exports.
The major advantage of the
MSE sector is its employment
potential at a low capital cost
and the labour intensity is estimated to be nearly four times
that of large enterprises.
Before we move on to the
challenges, let us consider a Tier2 or a Tier-3 suppliers supply
chain. Diagram 1 clearly depicts
the internal supply chain pertaining to the suppliers facility and
activities, and connected to the
external world with suppliers
and customers at upstream and
downstream ends respectively.
A supplier, whose end product
directly gets assembled into the
Original Equipment Manufacturers (OEMs) end product, will
be called a Tier-1 supplier. But
for the Tier-2 supplier, OEM is a
more distant relation.
Major challenges
Consider the supply chain Diagram 1. The challenges faced
www.industry20.com
by an SME can be at any point

across the chain, right from his
sub-suppliers, suppliers, internal
to him as well as his customers.
Most of the SMEs face some
typical challenges:
1. Challenges with their sub- and
suppliers
2. Challenges internal to their
work unit
3. Challenges from customers.
To explain the challenges in
the SME manufacturing sector,
let us consider a typical day in a
manufacturing setup.
Challenges with subsuppliers and suppliers

Line stoppage
Its a common issue that stretches from an SME till a nuclear
reactor manufacturer. An assembly line can be stopped due to
want of a small washer or MRP
sticker or A-class costly item.
The lacuna happens when the

SME-supplier will not send the
schedules to his suppliers at the
right time.
This is due to the lack of planning and no follow-up of planning
calendar. This lack of planning
will lead to the sub-supplier not
procuring the raw material, and
hence delays would follow.
Supplier doesnt have raw
materials: A sub-supplier will
start procuring raw material only
after he receives the schedules
from his customer (SME-supplier). A sub-supplier may be an
SME, who is at the far end of the
chain who has severe infrastructure problems such as water,
power or cash flow or even man
power problems. He may be a
home-driven organisation with a
small unit behind his house.
It is logical that in such a case,
this supplier will not be able to
Diagram 1: A typical tier-2 or tier-3 suppliers supply chain

Internal supply chain
Suppliers
Purchasing
Production
A few common reasons why an

assembly line can be stopped are
stated below.
Schedules not sent on
time: Once the customer sends
his demand to the suppliers
(Lets call this supplier as SMEsupplier), usually on a monthly
basis, the buyers or procurement
personnel at the SME-suppliers
end have to fix the variables
such as manpower, material and
other necessities for that particular month. Then the SME-supplier will send these schedules to
his supplier (Sub-supplier to the
customer) for procuring some
parts, which can be assembled
into the main part and shipped
to the customer.
Distribution
Customers
buy raw material and supply at

the right time, if his customer
(SME-supplier) send late schedules or even changes schedules
very often.
Documentation issues:
Every day supplies are hand to
mouth. Improper planning leads
to this situation. Sub-suppliers
will have to be on their toes to
supply parts to their customers.
It is definitely not easy following the tight and ever changing
demand from the customer.
In this situation, priority is
given to the parts and not documents. This results in supply of
only parts and not the statutory documents such as invoice
etc. The result is the parts
industry 2.0
37
supply chain
are reaching the door without
proper paper work. The parts
are consumed to assemble the
final product and then shipped
out. Gross mistake of documentation results in other issues such
as the material value not being
reflected in P&L statement, haphazard working etc.
Man power issues: Why
is this issue? Is manpower not
available in abundance? Yes it is,
but not quality manpower. SMEs,
for the kind of margins they
operate, can hire not A-list business schools, but 12th/Diplomas/
few engineering graduates.
One of the directors of an SME
says It is very disheartening
because people quit companies
because of trivial issues such as
work pressure, or someone raises
their voice. There are also people
who disappear within a day or
two for no reasons. Further, he
says, We do not measure the
employee turn around as one of
the KPIs because the number hits
the roof.
Power, water, infra and
other issues
Certain industrial areas have various issues such as power, water
and sanitation. If one thinks how
sanitation can affect the production, think of a practical situation
wherein the workers who hail
from poor families depend on the
companys sanitation. The matter
should not be taken lightly, as
this is a fact. Power issues are a
major concern, especially when
industries are highly dependent
on power and cannot afford generator all the time. It is high time
to look at these concerns before
complaining the competency of
the suppliers.
Supplier payment (Creditors) related issues
Most of SMEs are single owner
of partnership firms. The promoters play all the roles to run his
38
company day in and day out. He

runs behind his customers for
payment, and has to pay the supplier without delays in order to
avoid stock out issues.
He cannot afford to import all
the materials, and if one of his
suppliers disagrees to supply at
the right time or cost, the brunt
has to be borne by him. He is
always in between the big customer and his small supplier.
Cash flow
SMEs have huge cash crunches
because of uneven credit terms
between the customers and suppliers. The customer has a long
credit period say three months
to pay the SME, and the SME
has credit terms of about 30 to
45 days to pay his small supplier.
This creates a huge imbalance in
cash flow resulting problems for
the SME. The SME doesnt operate like MNCs, who have good
cash reserves, and are always
looking to either hedge the
cash or multiply the reserves by
investing in various deposits etc.
Strategies used by SMEs to
create a better cash flow:
1. Increasing the credit period
with sub-suppliers: This can
work only a few times because

the sub-suppliers cannot take
the brunt of delayed payment.
2. Decreasing the credit period
with customers: May work but
not with all customers.
3. Holding payments to the
suppliers
4. Obtaining advance from customers for any new investments and adjustments from
the invoices later (This can
avoid the interest charges).
5. Delayed salaries to employees
Internal challenges
Internal challenges are internal

to any organisation that range
from support departments till the
operational departments. These
challenges are explained in the
next section.
Operational level
At the operating level we try to
retain people, but quite unfortunately they are not bothered
about their careers. But it is
a necessity for us to run the
company and cannot get bogged
down with it, says a Managing
Partner of an SME in Bangalore. Few important points are
explained hereafter.
Diagram 2: Internal challenges are internal to the organisation
Suppliers
Defining vision
Team building
Working towards a common goal
Concepts (Bundling, consolidation etc)
Exposure to better practices
Tactical level
Competency
Discipline
Maturity (Understanding of consequences)
Operational level
Education and job knowledge
Attitude
Ownership
Saturation
Job fit
Lack of processes
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Education: The Diagram 3,

4 and 5 indicate the education
levels at various levels of an SME
organisation. Please note that
the percentages indicated are for
a particular SME, however, they
can hover around the range.
Saturation: This is not
something new that people face
irrespective of the type and size
of the organisation. The main
reason for this is the type of job
profile. A person, who has been
working in the shop floor assembling the same type of part for
many years, has truly nothing
left in him. He is bound to slow
down things.
SMEs do not have various
departments unlike an MNC
wherein an employee can get
a job rotation opportunity. In
spite of this, if he is given an
opportunity to the department
of his liking, he may not fit into
the job because of his lack of
knowledge this ultimately leads
to education.
Few people who are really
good in their work and have
performed over the years offer
themselves to quit, reason being
job saturation. If offered a new
profile, he or she may not be
interested to take up due to
the lack of knowledge. He or
she may not even join a different company as the work tends
to be the same. When asked if
employee retention is taken seriously, the Partner replied, We
dont have a KPI in place for the
HR as the HR practice is not so
matured. All what the HR does is
he takes care of the employee
leaves, PF, ESI etc. However, we
try to hold the person by paying
more salary and motivating him
or her to be with us.
Job fit: As known, SMEs
work with wafer margins and
this prevents them from hiring cream people in the market. They need to manage with
the local resources available to
www.industry20.com
them at a lower cost. The local

resources may not be technically
fit for the job in terms of their
education or knowledge or experience. Hence, SMEs cannot utilise the best out of an employee
due to the lack of proper skill set.
One of the reasons for saturation and huge employee turnover
is also because of job fit. It is
very common to find employees with a 12th or a BSc degree
negotiating price for a manufactured part. Though the person
may be good in negotiating, he
may not be effective in technical part of the process. Even in
many cases, one can see tons of
material being imported because
of lack of planning, and resulting in stoppage of line. He or she
doesnt realise that the companys profits are eroded by one or
two air imports.
Tactical level
Almost 90 per cent of the time,
we promote our own employees
as managers as a part of their
career growth. The promoters
have no choice, but to promote
the existing employees and give
them a ray of hope to their saturating careers, however what
is not being realised is that the
same old school of thought and
ignorance what was being dealt
at the lower levels are now being
transferred to the middle management level. So, why not to
look at options of lateral hiring?
We cannot even think of lateral
hiring because of issues such as
1. Salary issues: The new candidate will demand more than
our present employees, and it
is an uncertainty we run into
because the person is new.
Our existing employees know
in depth our company culture,
products and therefore it is
always better to timely promote them.
2. Ego issues: It is like a senior
student having ego issues
Diagram 3: Education @ operating level

4%
1%
Post graduates
15%
Graduates
40%
12th
10th
40%
Less than 10th
Diagram 4: Education @ tactical level

0%
5%5%
Post graduates
Graduates
30%
12th
10th
60%
Less than 10th
Diagram 5: Education @ management level

40%
35%
30%
25%
20%
15%
10%
5%
0%
35%
4%
Post
graduates
12th
1%
0%
10th
Less than
10th
% composition
over his junior resulting in no

support and co-operation.
3. Dissatisfaction and reduced
performance of an existing
employee
4. Resignations: Many a time,
due to the above issues,
the existing employees also
decide to move on. This
shakes the morale of the existing employees.
Managing human resource is
the challenge in an SME, says
industry 2.0
39
supply chain
Swaroop Srinivas, an IIMB grad,
who was an ex-consultant of PwC
and presently an entrepreneur.
At the middle management
level, it is very important to
identify the potential employees
across various segments or skill
sets and define a career path
for them.
This is the usual practice of
any MNC. However, this is not
very relevant in an SME for the
reasons explained in previous
paragraphs. Nevertheless, the
situation is changing.
Top management level
Does the root cause lie here?
Maybe yes or maybe not. Let
us get some more insights into
the gaps.
Vision: This is what you
define where your company
should be, and this is what most
of the companies are lacking in.
Promoters shall not only induce
capital, but also vision and define
the mission of the company. Ask
any operating level employee
of where the company wants to
head to, he has no answer.
Reason being the top management has no vision. Yes, one of
the primary reasons for running
a business is to increase net
worth, but that is not all. Defining vision is where SMEs lack.
Once a vision is defined, there is
a definite guide path and direction to where the company is
heading to.
Team building and motivation: It is surprising to see
when people backstab each other
and unwilling to help, especially,
those who are working with us
since the inception of the company. SMEs have a handful of
employees, yet there are issues
when it comes to helping each
other. We need to blame ourselves because of the culture
that we have imbibed into our
people, says an Owner of an
SME in Bangalore.
40
Motivation is another huge

issue, wherein companies fail to
motivate the employees. The only
way of motivation that SMEs can
think of is increasing salaries.
Yes, it may work but not at all
times. Employees, who are stuck
within the same job roles for
the past few years, usually are
de-motivated due to being with
the same working conditions or
the routine. But he or she may
be working due to various other
priorities and family commitments. Ganesh, a HR Manager of
an SME explains the measures
that are being taken to motivate
the employees:
1. Salary increase
2. Department change (The
employee refuses because
he may not have the right
skill set)
3. Paid leave etc.
On suggestion of the following options,.Ganesh says, The
management may not agree for
the same because it may spread
as a wild fire to other employees
as well. In such a case why not
to make it as a policy?
Options suggested:
1. One or two days paid company sponsored trip to the family
2. Sanction of loans at lesser
interest rate
3. Change of food menu
4. Company sponsored health
check-up
5. Company sponsored trainings, workshops and higher
education
6. Team building exercises etc.
Nevertheless the companies
have to think of ways and measures in order to pump up the
energy levels of the people.
Exposure to better practices:
Do not re-invent the wheel. In
todays world, where information is oozing out of everywhere,
one just needs to benchmark
and emulate the best practice.
The initiation and drive has to
be from the top management.
We have observed the education

levels of the top management,
and the vision earlier. Each one
of the issues is inter-linked.
Maturity is a major concern
in the top management cadre.
Many top management personnel have no visions. All they
need is to run the line for a
particular day. This may happen in infrastructure industry,
because people will have to work
in dangerous conditions, new
environments etc, but will not
work in a manufacturing set-up.
One cannot be stone hearted that
he overlooks the needs of the
down the level employees. There
are successful companies, which
were once SMEs, now huge conglomerates that have maturely
handled the issues.
Challenges from
customers
Bloated demand
The customers are directly
answerable to the markets
demand, and hence the fluctuations will be more. Hence in
order to cover up these fluctuations, in spite of knowing the
challenges of the suppliers, they
tend to push this to the supplier.
In the supply chain language,
this will end up in a bullwhip
effect. Diagram 6 shows the dramatic flow of a bullwhip effect!
The suppliers are at the
receiving end of the chain, and
they need to plan for the raw
materials to supply the parts to
the customers.
In case, the customers go on
changing the demand pattern
very often, the suppliers cannot
bear the brunt.
For example, a supplier may
have planned for production due
to X demand from the customer.
Suddenly, if the customer changes the demand at the end of the
month, it would be impossible for
the supplier to bear the inventory
and the raw material cost, espe-
www.industry20.com
cially if the customer completely

cancels the schedule.
Insensitive to the suppliers (SMEs) difficulties
Due to the scenario explained
earlier, it should be customers
responsibility to help and support the supplier in forecasting
the right demand. The customer
should also work out options that
are a win-win for both him and
his supplier.
Manpower planning is a big
issue at the suppliers end. During times of bloated demand, the
supplier may have hired more
personnel thinking that the
demand has increased, but little
does he know that the customer
is building up stocks due to an
upcoming sale that the customers marketing or sales department has planned.
Transparency is required
so that we can plan the right
amount of manpower. We also
rent a small storage place near
the customer to provide Just-InTime (JIT) supplies, however, all
this is possible if the customer
supports us, says an owner of
an SME.
He adds, The customers
know that cash flow is always
a problem. Hence, we always
request the problem in helping us in either providing us an
advance and then adjust in the
running bills. We also request
them to help us negotiate with
the raw material suppliers due
to the customers muscle power.
Certain customers are very cutthroat. All they want is materials
on time, and don't heed to our
requests. They've multiple suppliers and they will move on to the
other supplier, in case we cannot
provide material on time.
Satellite towns: Over a
period of years, things have
improved, and we have seen
many examples of supplier-customer relationships. Many manu-
www.industry20.com
facturing companies are already

planning of satellite towns
wherein the suppliers are located
in and around the customer. This
helps in many ways such as:
1. Reduced inventory
2. Visibility
3. Flexibility
4. Better co-ordination
5. Improved planning
6. Overall efficient supply chain
etc.
Information sharing
The bu(g)ck doesnt stop here.
I have discussed various issues
regarding suppliers (SMEs), but
even a rich customer is ignorant
about IT systems. At the end of
the day everything boils down to
excel sheets.
It is advisable that the customer shares information with the
supplier that will not only help
happen to that extra quantity?

Who will pay for the same?
Relationship
Many matured companies see
their suppliers as not suppliers
but as Business Partners. This
is a very healthy way of doing
business. Help us to help you is
what one SME owner comments,
because at the end of the day
business is all about relationship
and trust.
Conclusion
The value chain has numerous

stake holders, and it is impossible to leave anyone out.
Every business is interconnected.
All the parties have to be happy
and there has to be a win-win
situation. It is practically not
possible to do so, and hence challenges emerge.
Diagram 6: Dramatic flow of a bullwhip effect
the supplier but his own supply

chain. Real-time information and
the right information will always
make the chain efficient.
Typically what happens is
when the markets demand is
slightly down, the customer
still would prefer to store the
stocks and manufacture a little
more than the market in case
the demand increases. This is
the bullwhip that was discussed
earlier. The supplier doesnt have
the information and produces
as per the earlier demand. Just
before the supplier (SME) supplies, the customer would tell the
supplier to stock the inventory
(reduced quantity) at his end and
supply the remaining. What will
Industry bodies also conduct

various contact sessions, obtain
views from all the stakeholders across the value chain, and
also make presentations to the
government for the betterment
of the people. It is a long drawn
process, and will see a happy
ending one day.
Hats off to all the Indian
MSMEs, who constitute the
backbone of the Indian manufacturing industry. Without their
active contribution, it wouldnt
have been possible for our country to make a footprint on the
global map.
The author is a consultant working to guide
Indian SMEs. Contact: vpavan_13@yahoo.
com , vpavan.murthy@gmail.com.
industry 2.0
41
management & strategy
WAYS
to IMPROVE YOUR
MARKET VISIBILITY
1. Visibility
Enhancement
he age-old wisdom teaches

us what is seen that is
sold. Thus, creating ubiquitous
product visibility is absolutely
important in todays competitive age. This is possible only
through active presence in the
social media (Internet).
2. Awareness
Generation
utting advertisements are

not enough today. Customers need more details of the
product being advertised. The
cheapest way to demonstrate
the product to people worldwide is through discussions in
social media and webinars.
42
3. Trust
Building
ocus on a product from different angles help

customers understand the product in a better
way. Also, when users voluntarily comment on a
product, potential users gain confidence to buy
the same. At least they feel like testing that.
4. Understanding
Customers
efore launching
a new product or
a value added version
of an existing product, it is important
to understand the
emerging customers
demands. Social media is a good platform to generate enormous data in this regard, which helps read
users minds perfectly.
5. Closing
New Deals
ontinued blogging is a strong

marketing tool.
According to Aren Grimshaw, Strategic Marketing
Consultant & Trainer,B2B companies that blog
generate 67 per cent more leads per month than
those who do not.
www.industry20.com
Photo Credit: www.photos.com
Although in todays business arena,

it is no longer necessary to make any
C-level manager understand that social
media is not a fad, but an essential way
to business success; worldwide more
than 60 per cent of CEOs are still far
from social networks.
Do you have future CIOs in your team?
FIND OUT NOW!

INDIAs FUTURE CIOs
About NEXT100
NEXT100 is the Indian IT industrys premier
awards program that identifies and honors 100
experienced IT managers who have the skills
and talent to become CIOs and leaders.
All NEXT100 award winners are selected
through a rigorous and comprehensive
evaluation process that reviews technocommercial, management and leadership skills.
The final selection of the award recipients is
made by a prestigious committee comprising
Indias top business and technology leaders
NEXT100 Award Process

Applicants need to complete the online
registration and application form (Last date is
04-Aug-2013)
All applicants have to take the online
VisiT www.nexT100.in TO knOw mOre

Initiative by
Event by
psychometric tests that assesses personality

traits and leadership style
Qualified applicants are shortlisted for
interview by jury panel. Each candidate
is independently interviewed by two
jury members
Reference checks of qualified candidates are
done with work supervisors and designated
referees
The list of NEXT100 award winners is
announced by the jury, and award winners are
invited to attend an all-expense paid gala
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How to Refer
You can nominate candidates by going to http://
goo.gl/X7kWo. The last date for nominations is
31st July, 2013.
Apply TODAy AT www.nexT100.in

Download the NEXT100 App to register and track your application
NEXT100 Book Partner
management & strategy
Revolutionising
Manufa
A tightly integrated
ERP solution helps
manufacturers consider
and respond to various
day-to-day challenges and
variables. It is important to
choose a solution that offers
an end-to-end support.
By AnishKanaran
f a country has little capacity to manufacture, then

it also has limited potential to achieve economic
growth. Manufacturing is
a wealth-producing sector that
needs to be constantly expanded
and enhanced. By harnessing
tools such as ERP, manufacturers can gain a competitive edge
in todays extremely aggressive
business landscape. An ERP solution is not a silver bullet. Considerable thought and planning
must be invested in identifying
and acquiring the right ERP solution to achieve the right results.
ERP software as a
business booster
In the past, Material Requirements Planning (MRP) systems

simply focused on materials,
and making sure that the correct materials were available at
44
the right time. Today, leading

ERP systems are much more
advanced. They focus on the
customer and offer significantly
more end-to-end support and
information. They provide one
solution with one set of data
accessed through one interface.
ERP software enables enterprises to use integrated applications to manage all aspects of
operations, including development, manufacturing, sales

and marketing.
ERP systems facilitate the
flow of information across all
internal business functions, and
also manage connections to
external stakeholders. They help
achieve many manufacturing
business goals, such as increasing efficiency, reducing the num-
www.industry20.com
cturing
Photo Credit: iStockphoto.com/dubassy
ber of independent systems, and

streamlining operations.
An ERP system represents
a major corporate investment
that goes beyond simply buying software. Manufacturers
must consider their system
requirements, the total cost of
ownership involved and how a
particular solution complements
their business objectives. An
ERP purchase should be justified
against an organisations business goals to ensure that it not
only supports them but acts as a
vehicle to realising them.
Ensuring proper management
of organisational change and
business transformation are also
essential to the overall success of
the system.
Facilitating the transition
from the organisations old business model to the new, streamlined structure of operations
requires planning and effective
communication with stakeholders. This will help create a positive environment, smoothen the
path for change and inspire management think differently about
how they do things.
Key business
software technologies
for successful
manufacturing
ERP software that is scalable

and modular with rich functionality sets to support growth with
www.industry20.com
rapid implementation and flexibility, irrespective of the size and

complexity of the manufacturing
process at hand, is paramount for
successful manufacturing.
Production planning is
paramount to the feasibility and
profitability of the manufacturing process. It is very important
to be able to accurately cost and
execute a job using a single business platform, which provides
the right tools to efficiently
assemble, ship and deliver so
that customers receive the goods
they want, when they want them
at the right price.
Scheduling assists manufacturers with day-to-day control,
long-term planning and decision
making to support business strategies ensuring that customer
deadlines and demands are met.
Materials management
capabilities ensure that the correct components are available at
exactly the right time.
Lean production is crucial in a
highly aggressive global market.
Being productive using fewer
resources while being flexible
enough to meet varying customer
requirements are essential for
gaining competitive edge and
ensuring profitability.
Manufacturing Execution
Systems (MESs) are most effective when they allow real-time
visibility throughout the manufacturing process. It is essential
that they are integrated,

accurate, and offer up-tothe-minute data to management
(on what is occurring on the
plant floor) by employee, job
and scheduling priorities. It must
also easily allow the plant floor to
access vital data such as product drawings, process drawings
and detailed instructions.
Quality management capabilities ensure that manufacturers have complete visibility of the
quality of operations right down
to individual item level tying
together all quality functions
from scrapping end-parts, rejecting raw materials or tracking
first article inspections.
Technology for growth
Advanced ERP solutions from

leading vendors such as Epicor
are crucial to the countrys development plans for its manufacturing base. Todays manufacturing
landscape requires out-of-thebox, cutting-edge strategies for
addressing challenges and raising
productivity with fewer resources. Innovative ERP technologies
being built by developers, such
as Epicor, are enabling manufacturers to hurdle obstacles and
streamline their business processes while remaining agile and
responsive to customer needs.
The author is the Director, Channel, Middle
East, Africa and India,EpicorSoftware.
industry 2.0
45
event report
Backup Power
Increasing energy and power quality requirement fuels the demand for backup
power products, says Frost & Sullivan (F&S) at its Second India Backup Power
Executive Summit and Awards banquet recently held in New Delhi.
ower is one of the key infrastructure

elements supporting a nations growth.
India has grappled with a power deficit
situation for several decades now. In fact, the
power generation capacity addition has rarely been
able to keep pace with the demand for power. An
outdated Transmission and Distribution (T&D)
network also results in high Aggregate Technical
and Commercial (AT&C) losses, as well as poor
power quality. While proliferation of industrial,
commercial, retail, and residential complexes is
increasing the overall power demand, growth in
mission-critical equipment is resulting in increased
demand for high-quality reliable power.
Several alternative power sources have attained
strategic importance in addressing this deficit and
meeting consumers power requirements. In fact,
backup power has become a way of life in India
for consumers ranging from households to large
commercial complexes, hospitals, data centers, process industries etc.
With this backdrop, F&Ss recent event aimed
to bring under one roof representatives of the
entire gamut of the multi-product backup-power
Anindya Das, Industry Manager, Energy & Power Systems Practice, Frost & Sullivan, is moderating
the panel discussion in the summit.
46
industry from diesel generators and power inverters, to UPS and industrial batteries to create an
interactive forum for the exchange of knowledge
and ideas. The summit also had representations
from prominent end-user segments. Additionally,
customer-research-based excellence awards were
bestowed upon companies that have demonstrated
excellence on various parameters within their
respective product categories.
Amol Kotwal, Associate Director, Energy &
Power Systems Practice, F&S presented a perspective on Mega trends shaping the Indian economy
and its impact on the Backup Power Industry.
He focused on seven mega trends - Urbanisation,
Infrastructure Development, Generation Y, Working Age Population, The Middle Bulge, Connectivity, Future Economic Growth and other facts
related to these mega trends, highlighting what
potential impact these are expected to have in driving consumerism, infrastructure requirement etc.
Kotwal said, These could further act as growth
drivers for various backup power products across
industries and applications such as realty, IT/ITeS,
malls, industrial, and the manufacturing sector etc.
Krishna Srinivasan, Global President & Managing Partner, Frost & Sullivan
is welcoming the delegates.
www.industry20.com
Despite aggressive plans of power capacity additions within the country over the next decade, the
increasing energy and power quality requirement
fuels the demand for backup power products like
UPS, diesel gensets, inverters, batteries etc.
Krishna Srinivasan, Global President & Managing Partner, F&S spoke on the Top 10 Markets
to Watch (viz. Smart Energy, Smart Grids, Smart
Buildings etc.) till 2020. He said, These markets
are picking up growth globally, and are expected
to emerge in the Indian context in the mid-to-long
term, thereby impacting the growth of backup
power industry in India as well.
The Chief Guest for the summit was Sunil
Khanna, President & MD, Emerson Network
Power (India). Other eminent industry personalities present at the summit included Marc Werle,
CEO, Numeric; Manas Kundu, Director, Energy
Solutions, International Copper Promotion Council
India; Damien Carroz, President, R&D and Industrial, Luminous Power Technologies; K. V. Nachiappan, Director, Marketing and R&D, Numeric;
Dr. Dipak Sen Chaudhuri, Executive VP and Chief,
R&D, Industrial, Exide Industries; P. Palaniappan,
Senior VP and Business Head, Mahindra Powerol
Business; Tarit K. Ray, VP Institutional UPS, Railways, Telecom and Solar, Exide Industries; Sameer
Saxena, VP, Marketing Group, Legrand India; R.
Vasudevan, VP, Enterprise and Telecom Business,
Emerson Network Power (India); Rahul Mundra,
Director, True Power International; R. G. Thalwani,
Technical Advisor, Desein; and G. N. Dwivedi, Senior VP (O&M) - Viom Networks.
The 2nd India Backup Power Industry Excellence Awards 2013 were given for two categories
Diesel Genset (DG) and UPS, which are the main
two sources for emergency power in India.
In DG category, following firms received awards
Kirloskar Oil Engines (Award: Most Preferred
Brand - Customer Service Leadership - Up to 250
kVA), Cummins India (Awards: Most Preferred
Brand - Customer Service Leadership - Above 250
kVA, Most Preferred Brand - IT/ITES, Realty and
Hospitality, Most Preferred Brand - Construction & Infrastructure, and Most Preferred Brand
- Manufacturing & Process Industries - Above 250
kVA), Mahindra Powerol Business (Award: Most
Preferred Brand Telecom, and Customer Value
Enhancement), Kirloskar Oil Engines (Award: Most
Preferred Brand - Manufacturing & Process Industries - Up to 250 kVA).
In UPS, award winners were Emerson Network Power (I) (Awards: Most Preferred Brand
- IT/ITES, Most Preferred Brand - Manufacturing &
Process Industries, Most Preferred Brand - Power
www.industry20.com
Delegates from various Indian industries are getting exposed to the present power scenario in India,
emerging global trends and the market potential of the backup power industry in the summit.
Amol Kotwal, Associate Director, Energy & Power Systems Practice, Frost
& Sullivan, is making his presentation on the Mega trends shaping the
Indian economy and its impact on the backup power industry.
and O&G, and Most Preferred Brand - Customer

Service Leadership - Above 20kVA), Schneider
Electric IT Business India (Awards: Most Preferred
Brand - BFSI Office, Most Preferred Brand Hospitality, and Most Preferred Brand - Customer Service Leadership -Up to 20kVA), Numeric (Award:
Most Preferred Brand - BFSI Retail Branch & ATM
Infrastructure), Amara Raja Batteries (Award:
Most Preferred Brand - Telecom), Exide Industries
(Awards: Most Pref. Brand Residential, Most
Preferred Brand - Manufacturing & Process Industries, and Most Pref. Brand - Commercial Sector),
Su-Kam Power Systems (Award: Most Pref. Brand
- Commercial & Industrial) and Microtek International (Award: Most Preferred Brand - Resident.).
industry 2.0
47
product gallery
Specialised
Steel
3D Measurement
Software
ssar Steel has launched

wood-finish steel products for the Indian market.
These products are a
subsitute for wood laminates
used for interiors. The woodfinish products are made
from steel that is recycleable, and are easier to use, last
longer, re-resistant and environment friendly. Unlike
laminates, these products are termite resistant, easy to
maintain, light weight, fully recycleable, and also does
not requires any post treatment. These products can
be used for both internal and external requirements.
According to the manufacturer, these products are
alternatives for laminates with unique features and
benefits, and are cheaper by 20 per cent. These are
environmet-freindly too.
ARO Technologies has released the new FARO

CAM2 SmartInspect measurement software.
The software is suited to take measurements
without CAD data. In developing the software,
the focus was on - simple,intuitive operation and
a short learning phase. This means that even
users with minimal background knowledge of 3D
measurement technology can achieve very good measuring results within a
short period of time. It is available in two versions: a Basic version, and a Pro
version with an extended range of functions.
The Basic version of CAM2 SmartInspect has a clear and self-explanatory user interface, as well as very usable functions. For example, helpful images can be added to the features to be measured, so that even untrained
personnel can handle the programs very easily.
In the Pro version of CAM2 SmartInspect, the 3D live view functions as
a visual interface to present the recorded dimensions to optimum effect.
Other feature includes measuring length and angle in combination.
Essar Steel
Tel.: +91 22 6733 5000
Website: www.essarsteel.com
FARO Technologies
Tel.: +91 11 4646.5644
Website: www.faroasia.com
Business Index
Company ......................................................................................Page No.
Company ......................................................................................Page No.
ACMA.......................................................................................................... 16
International Society of Automation (ISA)............................................... 29
Alstom........................................................................................................ 06
Kirloskar Oil Engines...................................................................................47
Amara Raja Batteries..................................................................................47
Legrand India..............................................................................................47
Bentley Solution........................................................................................ 26
L&T-S&L......................................................................................................25
BHEL.......................................................................................................... 06
Luminous Power Technologies...................................................................47
CHEP............................................................................................................11
Mahindra CIE............................................................................................. 06
CIE Automotive (Spain)............................................................................. 06
Mahindra Group (India)............................................................................. 06
Cisco.......................................................................................................... 29
Mahindra Powerol Business.......................................................................47
Confederation of Indian Industry (CII)....................................................... 16
Microtek International................................................................................47
Cummins India............................................................................................47
Numeric......................................................................................................47
Desein.........................................................................................................47
ODVA.......................................................................................................... 28
Eaton.......................................................................................................... 06
Perkins Engines Company..........................................................................35
ECR.............................................................................................................. 16
PricewaterhouseCoopers.......................................................................... 40
Emerson Network Power (India)................................................................47
Retailers Association of India (RAI)........................................................... 16
Epicor Software......................................................................................... 45
Rockwell Automation................................................................................. 29
Essar Steel................................................................................................. 48
Schneider Electric IT Business India..........................................................47
Exide Industries..........................................................................................47
Siemens......................................................................................................25
Exxon Mobil.................................................................................................07
Society of Indian Automobile Manufacturers (SIAM)................................ 16
FARO Technologies.................................................................................... 48
SPARK........................................................................................................ 09
Frost & Sullivan...........................................................................................47
Su-Kam Power Systems.............................................................................47
Gujarat State Electricity Corporation Ltd (GSECL)...................................24
True Power International............................................................................47
International Copper Promotion Council India..........................................47
Viom Networks...........................................................................................47
48
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