Submitted by,

Kumar R
0911PGDM040

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Struggling with your equipments????????

Here is one stop shop for all your Equipment problems

Brings spark in your Life

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 Spark power station services (p) Ltd.

There are about 47 power generating companies in India with state run power generation
companies operating multiple power plants through out the country. The Ministry of
power is planning to increase the installed capacity by 1,00,000 MW which means govt is
planning to add many more power projects. Even though we have so many power
projects there is acute shortage of Technical Experts who can handle all the problems of a
power station i.e. there is hardly one company which can attend entire gamut of services
required for a power station.

Spark power station services (p) Ltd addresses the entire gamut of
power station requirements in terms of technical expertise and offer solutions for them.
The highly qualified and the experienced team of engineers are employed to make sure
that all your power station problems are attended and the ultimate customer satisfaction is
achieved.

Vision:

To become globally respected company providing best in class technical and Industrial
services by creating highest degree of value to the clients.

Mission:

To provide the technical and industrial services on grounds of all fairness by abiding to
the values of the organization.

Services offered:

1. Erection services and commissioning services

• Turbines and pumps
• softening plant equipment
• centrifugal pumps
• high pressure valves
• gear pumps and safety valves
2. Maintenance services

• steam turbine
• gas turbine
• High Pressure boilers as well as safety valves
• I.D.F.D. & PA fans
• steam & water pipe lines
• ball mills (coal mill)
• Rotatory air pre heaters and chemical injection pumps

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Type of service:

• Government service
• Private Service
• Maintenance service

Segmentation Variables:

Customer Type: Government and private Power Plants

Preferences: Outdoor activities
Ethnic background: it serves for all the states for India

Ways of positioning:

• Positioning by benefit to consumer

• Positioning as an expert
• Positioning as a leader

Core benefit:

• Erection of Machinery
• Installation (Making machinery to work along with trial runs)
• Repair and Maintenance

Other services

• Technical support
• Training for the New operators

Place of service:

The Nature of business is providing the service at the clients place so it doesn’t require a
business point or big commercial place. It only requires an office for the flow of
Information that could be maintained in Chennai as initially the service is provided for
the customers in south India. As the business proper it can be scaled up to the north India
as well.

Registration for the services can be done through following modes

o Postal mode
o Fax
o Internet registration through company website

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Management Team:

This section envisages the kind of people required for the organization their brief profile,
their skill set and the kind of Training required for them

As the Nature of Business is providing technical and Industrial services along with
the technical support it requires people who are technically qualified people with the
Exposure to power station engineering.

The organization requires a dedicated team for Erection and commissioning, and
Maintenance. Each team is headed by an Engineer who is professionally qualified and
has an Experience of more than 7 yrs in the respective field. Under the team head there
are two other engineers who are professionally qualified but less than 1-2 yrs of
experience. Again under each engineer there are 3 more support staff who can be
Diploma Engineers. so the organization structure looks like this

ENGINEER
GRADE 1

Engineer grade 2 Engineer grade 2

(Erection) (Maintenance)

Engineer grade 3 Engineer grade 3

(5nos) (1nos)

Since the Grade I Engineers are from well experienced background it is enough
that they are professionally qualified with Degree in Engineering but the Grade II
engineers are recruited after they finish additional course in power plant engineering after
they finish Degree in Engineering. There are specialized power plants training Institutes
like National thermal power Institute are available and Grade II engineers are recruited
from there. Thus no specialized training is required for Grade II engineers. The diploma
holders are preferred for the post of grade III engineers and they are available plenty in
south India. The diploma holders recruited as Grade III engineers are given an Induction
programme and put on the on-job Training. Besides this some manual laborers are
recruited on the contractual basis

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Process:

As explained before service is of two types, maintenance and erection services, the
process are little different for each these services.

Process for maintenance service:

1. Registration
2. Report on status of parameters before shutdown of plant or equipment is analyzed
3. Problem identification and diagnosis
4. Repair and rework
5. Trail Run
6. Hand over
7. Claiming of Bills
8. Processing Invoice and Payment.

Process for Erection Service:

1. Registration
2. Report or plan document is analyzed
3. Requirements are defined
4. Processes are planned
5. Equipments and support equipments are planned
6. Initial work like foundation are carried out
7. Machinery erected
8. Verification and validation of Flow of Processes
9. Trial runs
10. Hand over.
11. Claiming of Bills
12. Processing Invoice and Payment.

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Marketing plan:

The Nature of business and the target customers are Industrial, following is the
promotional plan

1. Advertisement in the Industrial catalogue

2. Advertisement in yellow pages
3. Advertisement in online catalogues like Indiamart.com
4. Conducting Power equipments Expo
5. Sales promotion through team of Engineers

Financial Plan:

start up costs Amt in Rs

legal 200000
Stationary 10000

office rent 240000

m/c and equipment 20000000

total 20450000

funding Amt in Rs

Equity

Investor 1 2500000
Investor 2 2500000
Investor 3 2500000
Investor 4 2500000

Debt

long term loans 20000000

total 30000000

Pricing:
The prices for the various services are listed below
Erection and commissioning : 1,00,00,000 Rs
Maintenance service : 5,00,000 Rs
Other value added service : 10,000 Rs
(support service)

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Projections:

Year 1

Salaries Amt in
1 year Rs

engineer grade 1 1200000

engineer grade 2 (6lac * 2) 1200000
engineer grade 3 (3lac * 6) 1800000
contract laborers ((300*26*12)*10) 936000

total 5136000

sales forecast year 1 Amt in Rs

1 per
erection services year 10000000 10000000
4 per
maintenance services year 500000 2000000
5 per
tech support year 10000 50000

total 12050000

operating costs

salaries and wages 5136000

stationary 10000
office rent 240000
transportation 1000000

total 6386000

contribution
for 1 year 5664000

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Year 2

Amt in
salaries for year 2 Rs

engineer grade 1 1200000

engineer grade 2 (6lac * 2) 1200000
engineer grade 3 (3lac * 6) 1800000
contract laborers ((300*26*12)*12) 1123200

total 5323200

sales forcast for year 2 Amt in Rs

erection services 1 per year 10000000 10000000

maintenance
sevices 8 per year 500000 4000000
tech support 10 per year 10000 100000

total 14100000

operating costs

salaries and wages 5323200

stationary 2000
office rent 240000
transportation 1000000

total 6565200

contribution
for 2 year 7534800

Year 3

Amt in
salaries for year 3 Rs

engineer grade 1 12lac 1320000

(6.6lac *
engineer grade 2 2) 1320000
(3.3lac *
engineer grade 3 10) 3300000
contract laborers ((330*26*12)*20) 1872000

total 7812000

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sales forcast for year 3 Amt in Rs

erection services 2 per year 10000000 20000000

maintenance
sevices 12 per year 500000 6000000
tech support 15 per year 10000 150000

total 26150000

operating costs

salaries and wages 7812000

stationary 2000
office rent 264000
transportation 1500000

total 9578000

contribution
for 3 year 16572000

Year 4

salaries for year 4 Amt in Rs

engineer grade 1 13.2lac 1452000

(7.26lac *
engineer grade 2 4) 2904000
(3.63lac *
engineer grade 3 12) 4356000
contract laborers ((363*26*12)*22) 2491632

total 11203632

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sales forcast for year 4 Amt in Rs

erection services 2 per year 10000000 20000000

maintenance
sevices 16 per year 500000 8000000
tech support 20 per year 10000 200000

total 28200000

operating costs

salaries and wages 11203632

stationary 25000
office rent 264000
transportation 1500000

total 12992632

contribution
for 4 year 15207368

Year 5

salaries for year 5 Amt in Rs

engineer grade 1 17.16lac 1716000

engineer grade 1 13.2 1320000
engineer grade 1 13.2 1320000
engineer grade 2 (7.26lac * 6) 4356000
engineer grade 3 (3.63lac * 12) 4356000
contract laborers ((363*26*12)*22) 2491632

total 12919632

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sales forcast for year 5 Amt in Rs

erection services 3 per year 10000000 30000000

maintenance
sevices 20 per year 500000 10000000
tech support 25 per year 10000 250000

total 40250000

operating costs

salaries and wages 12919632

stationary 25000
office rent 290400
transportation 1500000

total 14735032

contribution
for 5 year 25514968

Contribution for year 1 = 5664000 Rs

Contribution for year 2 = 7534800 Rs
Contribution for year 3 = 16572000 Rs
Contribution for year 4 = 15207368 Rs
Contribution for year 5 = 25514968 Rs
total = 70493136 Rs

Thus Break even is achieved between 3rd and 4th year.

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