SUMMER INTERNSHIP PROJECT ON EFFECT OF CRM TO OVERALL EFFICIENCY OF SUZLON Submitted in partial fulfillment of the requirements for S.

Y MMS
(Insert course abbreviation)

(2013-2014)

SUBMITTED BY

Name: AKASH .R. PATEL Roll No: MB3357201235 Batch: (2012-2014)

S A V Acharya Institute of Management Studies Raigad- 400102

Effect of CRM to Overall Efficiency Of Suzlon

S A V Acharya Institute of Management Studies Shelu Raigad- 400102

JULY 20-- - DECEMBER 20--/ MAY JUNE 200_

Students Declaration
I hereby declare that this report submitted in partial fulfillment of the requirement of the award for the S Y MMS to S A V Acharya Institute of Management Studies is my original work and not submitted for award of any degree or diploma fellowship or for similar titles or prizes.

I further certify that I have no objection and grant the rights to S A V Acharya Institute of Management Studies, to publish any chapter/ project if they deem fit in Journals/Magazines and newspapers etc. without my permission.

Place : Mumbai

Date Name

: : AKASH RAJESH PATEL

Class

: S.Y.MMS-SEM-III

Roll No. : (INPUT YOUR CORRECT ROLL NO.)

Certificate

This is to certify that the dissertation submitted in partial fulfillment for the award of S.Y MMS of S A V Acharya Institute of Management Studies is a result of the bonafide research work carried out by Mr. AKASH RAJESH PATEL under my supervision and guidance, no part of this report has been submitted for award of any other degree, diploma, fellowship or other similar titles or prizes. The work has also not been published in any Journals/Magazines.

Date

Industry/NGO guide

: _______________

Company

: _______________

Place:

Designation

: _______________

Project guide

: Prof.__________ Core Faculty SAVAIMS

Acknowledgement
I owe great many thanks to great many people who helped and supported me to do the project. It was very good experience for me to work with Suzlon Energy PVT LTD. It has been a great challenge but plenty of learning and opportunities to gain huge knowledge. I want to thanks Mr Nitin Patel Senior Manager for guiding me and giving me a prominent opportunity to do the summer project at corporate level in Suzlon Energy. I would like to thank my internal guide Prof. Sunita Gowda under his valuable guidance I can complete my documentation of project. I would also thank to my S.A.V Acharya Institute Of Management Studies and my faculty members without whom this project would have been distant reality. I also extend thank to my heartfelt thanks to my family and well wishers.

Table of Contents
CHAPTERS CONTENTS PAGE NO

Chapter1 Chapter2

1.1 Executive Summary 2.1 Introduction to project 2.2 Introduction to the Industry About Wind Energy Trends in Renewable Energy Wind Energy Program in India Ten Major Wind Power Companies In The World 2.3 Introduction to the Company Organization Structure Alliances & Acquisitions Repower Hansen Transmissions Global Presence Technology

9 10 12 13 14 16 18 22 24 26 26 27 27 27

2.4 Objectives 2.5 Methodology 2.6 Limitations of the Report Chapte3 3.1 Analysis & Findings Insurance of Windmill Marketing Strategy Resource Mobilization Department Chapter4 4.1 Conclusions 4.2 Recommendations ANNEXURES A-1 Wind Power Installed Capacity in India A-2 State-Wise Cumulative Wind Generation Data in (MU) A-3 Company Profile A-4 Policy For Maharashtra State A-5 Installed Capacity In Maharashtra State A-6 Policy For Gujrat State A-7 Installed Capacity In Gujrat State B-1 Questionnaire Bibliography

30 31 35 36 38 45 56 60 62 17 17 23 48 49 50 51 64 66

Chapter 1

1.1Executive

Summary

Suzlon Energy Limited is the leader in Wind Energy in India from past 14 years. Also Suzlon Energy is the only company in the Wind Energy sector to provide end-to-end solutions. End-to-end solution includes providing all the activities from concept to evacuation. One of the activities included in this is raising of Funds for the Project from Banks and other Financial Institutions. Hence because of end-to-end solutions customers enjoy the benefit of Wind Energy without any investment of man or money. For this purpose of raising funds Suzlon has developed a dedicated department named as Resource Mobilization Department.

Previously banks were hesitant in funding wind power projects because of its low plant load factor. It used to fund on the basis of profitability of existing activities. But the trend has changed recently and now funding is done on basis of both existing as well as the new project profitability. Hence a detail about project financials and expected profits has to be accounted and given to banks or institutions. This report is called as Detailed Project Report. It includes all the financial documents of new project activities as well as existing activities. Once the Detailed Project Report is submitted it is evaluated by banks by putting evaluated by banks through putting information thus obtained into Project Proposal Format.

Chapter2 2.1 Introduction to Project

CRM is the abbreviation for customer relationship management. It entails all aspects of interaction that a company has with its customer, whether it is sales or servicerelated. CRM is often thought of as a business strategy that enables businesses to:

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

How CRM is Used Today

While the phrase customer relationship management is most commonly used to describe a business-customer relationship, CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. Customer relationship management solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, cross-sell and up sell more effectively, close deals, retain current customers and understand who the customer is. Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of selfservice channels like the Web and Smartphones -- customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effect.

2.2 Introduction to Industry

ABOUND WIND ENERGY

Overview of Renewable Energy All of us use fuel for innumerable reasons every single day of our lives. But as we know, a lot of the sources for todays fuels such as gas, petrol, coal can not be replenished or renewed. Fossil fuels are nonrenewable, that is, they draw on finite resources that will eventually dwindle, becoming too expensive or too environmentally damaging to retrieve. In contrast, renewable energy resources such as wind energy are constantly replenished and sustainable. Types of Renewable Energy:

Solar energy - can be used directly for heating and lighting Wind energy - captured in turbines to generate electricity Water energy hydropower Other types include biomass, tidal, hydrogen, geothermal, ocean energy etc

Wind Power Growth Drivers Amongst all renewable energy sources, Wind Energy is most viable due to its technological advances making it economically feasible and ideal for large scale power production. The staggering growth of the global wind energy markets are being driven by a number of factors, including the wider context of energy supply and demand, the rising profile of environmental issues, especially climate change, and the impressive improvements of the technology itself. Environmental Concerns Science is clear that if we are to avoid the worst ravages of climate change, global emissions need to start declining before 2020.The power sector is not the only culprit when it comes to climate change, but it is the largest source of emissions, accounting for about 40% of CO2 and 25% of overall emissions. Wind energy is the only power generation technology that will be able to make a substantial difference in CO2

emissions in the crucial timeframe up to 2020. It is quick to install, and on track to saving 10 billion tons of CO2 by 2020. Security of Supply Global demand for energy is increasing at a breathtaking pace, which will require significant investment in new power generation capacity and grid infrastructure. Just as energy demand continues to soar, supplies of fossil fuels are dwindling and prices are at their most volatile position. Wind energy, however, is a massive indigenous power source that is available virtually everywhere in the world. There are no fuel costs, no geo-political risk and no supply import dependency. Economic considerations Wind energy makes sound economic sense. In contrast to other generation sources, the price for the fuel needed over the total lifetime of a wind turbine is well known: it is zero. This takes away a substantial part of the investors risk. At many sites, wind power is already competitive with new-built conventional technologies and in some cases it is much cheaper. When taking into account the price of carbon, wind power is even more attractive. Job creation and regional economic development are also key factors in economic considerations surrounding wind power.

TRENDS IN RENEWABLE ENERGY

The renewable energy demand is bound to boom when cost efficiency attains parity with other competing energy sources. The following trends are a few examples by which the renewable market is being aided to attain critical mass and compete against fossil fuels:

Other than market forces, the renewable industry often needs government sponsorship to help generate enough momentum in the market. Many countries and states have implemented incentives like government tax subsidies, partial co-payment schemes and various rebates over purchase of renewable to encourage consumers to shift to renewable energy sources.

Governments have been granting funds for research in renewable technology to make production cheaper and generation more efficient.

Development of loan programs that stimulate renewable-favoring market forces with attractive return rates, buffer initial deployment costs and to entice consumers to consider and purchase renewable technology. A famous example is the solar loan program sponsored by UNEP helping 100,000 people finance solar power systems in India.

Success in India's solar program has led to similar projects in other parts of the developing world such as Tunisia, Morocco, Indonesia and Mexico.

Oil and world petroleum crises and inflation are helping promote renewable. Most importantly, renewable is gaining credence among private investors as having the potential to grow into the next big industry. Many companies and venture capitalists are investing in photovoltaic development and manufacturing. This trend is particularly visible in Silicon valley, California, Europe, Japan.

Forecast: Wind Energy Wind energy is the leading source of renewable electricity. It is fast becoming an international business sector, spreading beyond its original markets in a few European countries, India and the United States. The major manufacturers and project developers now operate across all five continents. Whilst the underlying motivation, is wind power being one of the leading carbon-free generation technologies, there are also other economic bonuses. Even without its clean credentials, wind power unaffected by fuel price rises presents an important opportunity to diversify from potentially volatile sources. The Global Wind Power Industry

Employs around 200,000 people Has an annual turnover of more than US$ 23 Billion Has been growing at an annual rate of more than 28% for the last 10 years Meet the electricity needs of more than 25 million households Is concentrated in Europe, which accounts for 65% of total capacity and most of the major turbine

Over 100,000 wind turbines installed in 70 countries Over 74,000 MW of installed capacity

WIND ENERGY PROGRAM IN INDIA

The Wind power program in India was initiated towards the end of the Sixth Plan, in 1983-84. A market-oriented strategy was adopted from inception, which has led to the successful commercial development of the technology. The broad based National program includes wind resource assessment activities; research and development support; implementation of demonstration projects to create awareness and opening up of new sites; involvement of utilities and industry; development of infrastructure capability and capacity for manufacture, installation, operation and maintenance of wind electric generators; and policy support. The program aims at catalyzing commercialization of wind power generation in the country. The Wind Resources Assessment Program is being implemented through the State Nodal Agencies, Field Research Unit of Indian Institute of Tropical Meteorology (IITM-FRU) and Center for Wind Energy Technology (C-WET).Wind in India are influenced by the strong southwest summer monsoon, which starts in May-June, when cool, humid air moves towards the land and the weaker north-east winter monsoon, which starts in October, when cool, dry sir moves towards the ocean. During the period march to August, the winds are uniformly strong over the whole Indian Peninsula, except the eastern peninsular coast. Wind speeds during the period November to march are relatively weak, though higher winds are available during a part of the period on the TamilNadu coastline. A notable feature of the Indian program has been the interest among private investors/developers in setting up of commercial wind power projects. The gross potential is 48,561 MW (source C-wet) and a total of about 11,807.00 MW of commercial projects have been established until March 31, 2010. The break-up of projects implemented in prominent wind potential states (as on March 31, 2009) is as given below

State-wise Wind Power Installed Capacity In India State Andhra Pradesh Gujarat Karnataka Kerala Madhya Pradesh Maharashtra Orissa Rajasthan West Bengal Tamil Nadu Others Total (All India) 48,561 5530 Gross Potential(MW) 8968 10,645 11,531 1171 1019 4584 255 4858 Total Capacity (MW) till31.03.09 122.5 1566.5 1327.4 27.0 212.8 1938.9 738.4 1.1 4304.5 3.2 10242.3

A-1: Wind Power Installed Capacity in India

Wind power potential has been assessed assuming 1% of land availability for wind farms requiring at 12 ha/MW in sites having wind power density in excess of 200 W/sq.m. at 50 m hub-height

S. No. Name of the State

Upto 2005 2005-06 2006-07

2007-08 2008-09 Cumulative

1 2 3 4 5 6

Andhra Pradesh Gujarat Karnataka Kerala Madhya Pradesh Maharashtra

0.721 1.332 1.409 0.000 0.300 2.650

0.079 0.286 0.935 0.000 0.030 0.790

0.111 0.455 1.397 0.000 0.070 1.714

0.101 0.851 1.840 0.000 0.069 1.804

0.324 1.489 0.080 0.000 0.000 0.562

1.336 4.413 5.661 0.047 0.469 7.520

7 8

Rajasthan Tamil Nadu Total

0.494 11.970 18.876

0.427 3.444 5.991

0.532 5.268 9.547

0.682 6.066 11.413

0.688 5.662 8.805

2.823 32.410 54.679

A-2: State-Wise Cumulative Wind Generation Data in (BU)

TEN MAJOR WIND POWER COMPANIES IN THE WORLD

Sorted by megawatts installed worldwide This article provides you with a detailed list and overview of the 10 largest wind power companies in the world. The top ten listing is sorted by the companies total amount of megawatts installed throughout the year 2007. MyWindPowerSystem.com is currently awaiting updated figures for the fiscal year 2008 and will post and update this article the moment the data has been received and verified. Here are the top 10 major wind power companies in the world: 1. Vestas (Denmark) 4,500 MW 2. GE Energy (United States) 3,300 MW 3. Gamesa (Spain) 3,050 MW 4. Enercon (Germany) 2,700 MW 5. Suzlon (India) 2,000 MW 6. Siemens (Denmark / Germany) 1,400 MW 7. Acciona (Spain) 870 MW 8. Goldwind (China - PRC) 830 MW 9. Nordex (Germany) 670 MW 10. Sinovel (China - PRC) 670 MW

Vestas, or Vestas Wind Systems, is the leading and the largest wind turbine manufacturer in the world. Vestas has a total market share of 28%. The company operates plants in Denmark, Germany, India, Italy, Britain, Spain, Sweden, Norway, Australia, China, and Windsor, Colorado and employs more than 20,000 people globally.

The General Electric Company, or GE is a multinational American technology and services conglomerate incorporated in the State of New York. In terms of market capitalization as of September 2008, The General Electric Company is the worlds tenth largest company.

Gamesa Corporacin Tecnolgica is a manufacturing company mainly concerned with the fabrication of wind turbines and the construction of wind farms. Its headquarters are in Vitoria-Gasteiz, Spain. It develops, manages and sells wind farms, for which it also supplies the turbines. It is the market leader in Spain and is the second largest company in the sector worldwide with a market share of 15.5 % in 2008.

Enercon GmbH is based in Aurich, Northern Germany and is the fourth-largest wind turbine manufacturer in the world and has been the market leader in Germany for several years. One of Enercons key innovations is the gearless wind turbine in combination with an annular generator.

Suzlon Energy is a wind power company from India. In terms of market share, the company is the largest wind turbine manufacturer in Asia (and the fifth largest worldwide. In terms of net worth, it is the worlds most valuable wind power company. With headquarters in Pune, it has several manufacturing sites in India including Pondicherry, Daman, Bhuj and Gandhidham as well as in mainland China, Germany and Belgium.

Siemens AG is Europes largest engineering conglomerate. Siemens international headquarters are located in Berlin and Munich, Germany. The company is a conglomerate of three main business sectors: Industry, Energy and Healthcare with a total of 15 Divisions. Worldwide, Siemens and its subsidiaries employ approximately 480,000 people in nearly 190 countries and reported global revenue of $110.82 billion as of 2008.

Acciona SA is a Spanish conglomerate group dedicated to civil engineering, construction and infrastructures. The company was founded in 1997 through the merger of Entrecanales y Tavora and Cubiertas y MZOV. The companys headquarters is in Alcobendas, Community of Madrid, Spain. The companys U.S. operations are headquartered in Chicago.

Xinjiang Goldwind Science & Technology Company is a Chinese wind turbine manufacturer based in Urumqi, Xinjiang. The company is the largest turbine manufacturer in China and one of the ten largest in the world. Goldwin acquired a 70% stake in Vensys Energy AG for 41.24 million on February 1, 2008.

Nordex was founded in 1985 in Give, Denmark and in 2000 they moved their headquarters to Germany and became Nordex A.G. and launched their IPO in 2001. Today, their primary production facilities are in Rostock, Germany and also have manufacturing joint ventures in China. The company has a total global work force of over 1500 people. In 2006, Nordex was ranked in 7th place for worldwide wind turbine sales, holding a 3.2% global share of the global wind turbine market.

Sinovel Wind Co., Ltd is a high-tech company engaged in developing, engineering, manufacturing and marketing of the wind turbine generator system. Sinovel Wind is the first company which introduced the technology of 1.5MW wind turbine generator system into China.

2.3 Introduction to company

Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with:

Over 14,000 people in 21 countries Operations across the Americas, Asia, Australia and Europe Fully integrated supply chain with manufacturing facilities in three continents Sophisticated R&D capabilities in Belgium, Denmark, Germany, India and The Netherlands

Market leader in Asia, Suzlon Market Share (Combined with REpower) rose to 9.8% thereby making Suzlon 3rd * largest wind turbine manufacturing company in the world

Founded Headquarters Presence

1995 Pune, India 21 countries: Australia, Belgium, Brazil, Canada, China, Denmark, Germany, Greece, India, Italy, New Zealand, Nicaragua, Portugal, Romania, Spain, Sri Lanka, The Netherlands, Turkey, Ukraine, UK, USA

Manufacturing

India: Maharashtra, Pondicherry, Gujarat, Daman,Padubidri China:Tianjin North America: Pipestone, Minnesota

R&D

Belgium, Denmark, Germany, India, The Netherlands

Market Share Employees Listing

9.8% of the world wind energy market, 3rd largest wind power supplier* 14000+ [23 nationalities] BSE and NSE (India), part of S&P CNX Nifty Index A-3: Company Profile

Vision

To be a technology leader in the wind industry To be among the top three wind energy companies in the world To be the most respected brand To be the best team and place to work at To be the fastest growing and most profitable business

Philosophy

To be a company that serves society with sustainable wind-power on a commercial scale with a focus on continuously increasing efficiency and reliability of our wind turbines.

To always be committed to a life-long relationship with customers and work towards total customer satisfaction.

To lay importance on bettering our quality, safety and environmental standards. To build partnerships with all stakeholders; employees, customers, vendors, service providers, local communities and governments.

To conduct business only with the highest standards of ethics. To contribute to the reduction of use of fossil fuels by reducing our carbon footprint in all our operations.

Strategy Suzlon as a group aims to provide a strong renewable energy platform thereby promising to power a greener tomorrow, today. Together with its subsidiary re power, Suzlon has grown to be the 3rd largest wind turbine supplier in the world ensuring it builds a strong and futuristic path for the wind energy sector. From initiating a wind power project, till completion and even beyond, Suzlon ensures that nothing stands in the way of it serving its purpose. This is with the support of its key differentiators, it is the very philosophy of questioning ourselves at every step that has helped us sustain our vision.

ORGANISATION STRUCTURE
Suzlon is a leading wind power products and services company with a global footprint. The primary principle shaping the organizations structure across global operations is to infuse momentum and flexibility in decision-making and execution, with empowered managers.

Board of Directors The Board of Directors, as repositories of corporate powers, act as a guardian to the Company, as also the protectors of shareholders interests. The Board of the Company represents the finest blend of knowledge and experience.

Functional Structure Corporate Services : Based in Pune, India, the Corporate Office seeks to maintain and enhance Suzlons pre-eminent position in the wind energy industry in accordance with our Corporate Values of integrity, accountability, equity, transparency and environmental responsibility. To ensure that all group companies conduct their business profitably for stakeholders while adhering to the Brand and the cultural core of the company, our Corporate Services head quartered in Pune:

Sets strategic direction and allocates capital Manages issues of control and governance Outlines best practices to be followed across functions in all offices Monitors performance of various regions and units Provides vital shared services - Finance, Legal, Corporate Communications, S&P, Infrastructure, Human Resources, Information Technology

Manufacturing Suzlon has 13 manufacturing facilities, spread across 3 countries: China, India and USA. These units make a wide range of rotor blades, nacelles, nacelle covers, control panels and hubs, tubular towers and generators, covering all key components of wind turbines.

Group Company Hansen Transmissions International N.V. makes Gearboxes for captive consumption as well as third-party sales. Additionally, the Company is establishing Forging facilities of 70,000 MT and Foundry facilities of 120,000 MT. These are scheduled to commence production in Q3 FY09 Business Units Globally, the Suzlon Business is divided into 5 regions:

Australia China Europe, Middle East & Africa (EMEA) & Central & South America (CASA) India North America

Each of these is headed by a CEO, and handles all business aspects for that region, including Sales, Marketing, Wind farm Development, CRM, O&M. All report into the Corporate Headquarters.

Research & Development Technology is the key enabler to allow a company to compete successfully in the long run and be the market leader. Suzlons sophisticated R&D capabilities in the wind energy space have led to the development of a comprehensive product portfolio, ranging from 600 kW to 2.1 MW wind turbines. The 500-strong Technology Group, led from its R&D Headquarters in Hamburg, derives its technological success from a close collaboration between the development teams in Germany, Netherlands, Denmark and India.

Composite wind turbine technology in Germany and Denmark Aerodynamic development in the Netherlands, Denmark and India Engineering in India Gearbox technology in Belgium

ALLIANCES & ACQUISITIONS

Suzlons business has grown dramatically with strategic alliances and acquisitions. Potential acquisition targets and alliance partners are evaluated on a case-by-case basis, with the objective of developing business, and expanding capabilities and geographical reach.

Suzlon pursues only those alliances and acquisitions :

that complement its key strengths are synergistic with its operations have manageable integration risks

REPOWER Suzlon acquired a stake in REpower in May 2007. REpower is a recognized technology leader with a strong presence in Europe. It controls approximately 10% of the German market share. It has a capacity of 1,250 MW with a planned expansion of an additional 450 MW. REpower manufactures medium to high capacity WTG (1.5 to 5 MW) and has an employee strength of 1,150 Acquisition Rationale

Complementary geographical presence Complementary product portfolio Complementary supply chain strategies REpowers off-shore leadership

HANSEN TRANSMISSIONS
In May 2006, Suzlon completed the acquisition of Hansen Transmissions International NV, Belgium, the worlds second largest gearbox manufacturer for wind turbine generators. Acquisition Rationale: Wind Energy is a high growth industry restricted only by its supply chain

Hansen Transmissions is a technology leader in making gearboxes for wind turbines Hansen brings a market advantage, being a supplier to leading wind turbine manufacturers

Attractive valuations The right fit in terms of management styles and vision

GLOBAL PRESENCE
Suzlon has seen consistent and undisputed growth and is now the world's third largest wind power group. India, home to the group's corporate offices, employs more than 14,000 people. Our global team, spread across five continents, focuses on adoption of the worlds best practices to fuel continuous growth and propel expansion in high potential markets. At Suzlon, we combine global experience with local expertise to maximize technology for the economic value and benefit of our clients. Suzlon heads its international sales, marketing and service out of each operation-active country with an emphasis on local expertise to drive high growth in each market. Suzlon subsidiaries in Australia, China, Europe and USA benefit from extensive global competencies in specific wind engineering disciplines that the group harnesses.

TECHNOLOGY
Suzlons multi-dimensional approach to value engineering and cost reduction provides better margins and a competitive advantage to its customers.

To create market-defining products To enable entry into new markets with new applications To implement robust back-end processes To leverage our workforce competency

Product Technology The Wind Electricity Generators (WEGs) are broadly divided into three parts:

Tower - supports the Nacelle and Rotor Nacelle - contains the key components of the wind turbine Rotor - converts kinetic energy into electrical energy

Figure 3.1: Wind Electricity Generator

Blade Technology The Suzlon Blade Technology Group:

Delivers blade and production definitions, knowledge and support to make customers the preferred supplier for the end-users

Focuses on technology leadership to deliver high performance and cost efficient blades for wind turbines

Asynchronous Generator Suzlon uses asynchronous generators (induction machines) in all models of wind turbines. Induction machines :

Are most compact Operate as induction motors or generators Draw electrical power Deliver mechanical power

Brake System Aerodynamic Braking is:

Used to stop the Wind Turbine Generator Locked with hydraulic brakes, ensuring personnel safety

The Brake Pad has the following properties:

Utilization for dynamic braking in dry environment Stable friction coefficient High-wear resistance Low-wear melting material

Grid Management Suzlon generators are grid-friendly in their operations, with the generation voltage at 690V. They can also be stepped up to the local grid voltage. The inrush currents remain at safe limits and the wind turbines are provided with protection schemes.

The generators feature:

Vacuum / air circuit breakers Lightening arrestors Earth fault protections Under / over voltage protections Under / over frequency protections Over load protections

Tower Technology There are two types of Suzlon towers:

Free standing lattice towers Circular tower

The towers:

Are constructed of structural/ alloy steel and surface Are protected to withstand extreme operating conditions according to EN standards

House the WTG at heights decided for power generation Remain sustainable under extreme wind load conditions Provide stability for the WTG at operating loads Provide ease during turbine maintenance and operation Feature standard internals/ accessories and a safe access system Are optimized to provide the best cost/ kWh and modular design

2.4 OBJECTIVE OF CRM

Objective of the project is to study overall working of Customer Relationship Management in suzlon energy ltd. Focuses on relation maintain with customer and improve the confidence level of customer. Study the insurance claim settlement of windmill. Have a glance on various services provided by suzlon like assist the customer in funding to purchase the windmill. Maintaining Customer relation with suzlon after post commissioning of wind mill. The ability of the CRM solution to contribute to this has to be considered. If the objective is increasing overall profit or simply contributing to customer retention than this should be achieved by the CRM choice.

2.5 METHODOLOGY
SUZLON BEFORE CUSTOMER RELATIONSHIP MANAGEMENT
To implement the windmill various departments work in suzlon like Marketing, Resource Mobilization department, financial department, research department. If customer wants to purchase the windmill, he need to concern with every internal department of suzlon for example purchasing the land to stand the windmill Non agriculture certificate required for that customer need to talk with Resource Mobilization department. Various land related issue and assist the customer in funding is handle by Resource Mobilization department. Contact with every department will be tedious job for customer. In this case Customer Relationship Department comes in picture.

Marketing Department

Suzlon

Resource Mobilization

Customer

Financial Department

Research Department

SUZLON AFTER IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management in suzlon is the integration of marketing, Service and support strategy, process, people and technology to maximize customer Acquisition, value, relationship, retention and loyalty. Role of CRM is to care for the customers on a continued basis, to achieve excellence in customer Engagement, leading to complete Customer satisfaction. The CRM is a single point contact for the customer after commissioning of windmill. CRM is also the single point contact for the company after commissioning of windmill

Marketing Department

Resource Mobilization Suzlon

Customer Relationship Management

Financial Department

Research Department

Customer

CRM ROLES & RESPONSIBILITIES

Relationship Management Service Facilitation Generation Guarantee & Blade Claim Settlement Statutory and Regulatory Support CDM Facilitation Other Activities

1. Relationship Management i. Daily interaction with customer ii. Regular Customer Visits (Once a Month / Quarter) iii. Resolution of Customer Issues within stipulated timeframe iv. E B Billing facilitation - Invoice and credit reports available on customer portal - Payment through RTGS in Maharashtra v. Arrangements of Customer Meets vi. Customer Site and Factory visit vii. Driving repeat business 2. Service Facilitation i. Payment collection towards O & M charges ii. O & M Agreement execution iii. Tracking of Preventive Maintenance Schedule Preventive Maintenance Execution Report iv. Keeping track of major breakdown & repetitive errors v. Keeping track of restoration activities vi. Technical issues resolution with the help of O&M 3. Generation Guarantee & Blade Claim Settlement i. Proactive claim initiation ii. Finalization of Claim Amount to create win-win situation iii. Payment Process iv. Collection of no due certificate from customer

4. Statutory and Regulatory Support Support / Facilitation for i. Gujarat substation O&M charges ii. Land NA / Grampanchyat Taxes iii. PWD Production report and Electrical Inspector Payments iv. Evacuation Charges Refund v. PPA with MSEDCL/BEST/Traders for Group II Projects 5. CDM Facilitation i. Stake Holders Meeting ii. Processing of all internal documentation iii. Arrangement of calibration report iv. Support to CDM validators 6. Other Activities i. Customer Profiling and Segmentation ii. Customer Satisfaction Survey iii. Complaint Management iv. Insurance - Documentation - Facilitatio - Payment Collection

2.6 LIMATATION OF CRM

1) Implementing CRM in Holistic way is no sinecure 2) Making the large CRM investments profitable is difficult 3) Achieving sustainable competitive advantage is more difficult

Chapter3 Analysis & Findings

Insurance of Windmill

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated. KAM is responsible to track WTG / Project for cover under appropriate and adequate insurance Policy towards Fire, Earth Quake and other natural Allied Perils along with

necessary burglary and any other parameters as advised by Suzlon from time to time. The Scope of KAM commences from date of Taking over of project from Marketing.

FLOW CHART OF CLAIM SETTLEMENT OF WINDMILL

Customer

Insured the wind mill Customer gives the authority letter to Suzlon Company

Incident Occurs

Suzlon Energy follow up the insurance company

Insurance company survey the location and study the incident

Insurance company sanction the claim

As per the agreement Suzlon claim the money

Suzlon repair the wind mill

Flow Chart of Claim Settlement Of Windmill

Procedure of Claim Settlement of Windmill

Receipt of Insurance policy

KAM receives a copy of first insurance policy along with other documents during Taking Over of project from Marketing

In case the Customer has not taken insurance policy or Marketing does not possess copy of same at the time of handling over, Marketing will include in it in Punch List and provide a copy as and when receive by the customer.

After receipt of insurance policy, KAM to verify details and maintain the same as per Report

In the event a Customer is not willing to share copy of Insurance Policy, Marketing will at least provide basic details of the policy without the Premium to KAM.

Renewal of Insurance Policy

KAM to monitor validity of insurance policy and to send reminder notice to customer one month prior to expiry of insurance period. KAM will capture this detail in the above mention report it self. KAM may send mail to client reminding for renewal.

on receipt of renewals every year, KAM to update the data in his report for Financial Year.

Insurance related Claim

In case of any occurrence of incident that requires the client to raise a claim on their insurance provider, the KAM receives information within 8 hrs of such events, and notifies same to client within 24 hrs of occurrence of the event happening at site and logs the same on the Customer Complaints Software. This will ensure communication to Marketing and Site. Special care should be taken for cases of Force Majeure. Adequate and full proof communication to customer should to be ensured and weighed / guided by the CRM Head.

KAM will coordinate with Site and Finance & Accounts (O&M) to provide the cost of repair1 / replacement and pro forma invoice to the client.

KAM will ensure that client releases the amount received from insurance provider to balance amount if required towards the repair cost On receipt of entire amount from customer KAM cost On receipt of entire amount from customer KAM communicates to site for commencement of repair work

Repair work to commence only after receipt of full payment from client for the cost involved, any deviation from this will require approval from CRM Head and SBU Head.

KAM will be single point contact person between the Company and the Customer for providing all necessary documents for the purpose of Insurance claim

KAM to maintain records of all such claims appropriately and report the same to CRM Head

KAM along with CRM Head to monitor progress of insurance claims on monthly basis

KAM is accountable for any claim not receiving proper attention / documents from the company and may arrange for joint meeting of the internal Insurance Advisor with the Customers Insurance Advisor for completing the formalities.

KAM to also ensure transfer to Insurance Amount as received by the Client to the Company. A letter to this effect may be taken from the Customer in favor of Suzlon, for passing on the insurance amount as may be received from the Insurance Company.

Insurance Policy Type Five type of Insurance policy is taken for wind power machine

Burglary insurance policy: This policy is claim when machine is stolen or part of wind power machine is stolen. This incident occur commonly

Machinery break down policy: This policy is claim when any fault occurs in the wind power machine. This incident occurs rarely. The Machine Breakdown Policy in general covers unforeseen and sudden physical damages by any cause (subject to excepted risks) to the insured components of Wind Electric Generators : While it is at work at rest While being dismantled for cleaning or overhauling During cleaning or overhauling operations. When being shifted within the premises During subsequent erection

Some insurance companies provide MBD policy including loss of estimated generation (during the break period). This is known as consequential loss compensation policy. Typically a fixed amount is determined based on monthly generation and is insured. Assuming the maximum period a WEG may be the out of the operation due to break down say for 2 month so peak generation of 2 months * EB rate is the fixed amount to be insured.

Public Liability: Injury to the public because of wind power machine like fall down of machine.

Standard fire: Burning of machine. Machine contains the Oil so there may be chances of burning or spot. This incident occurs commonly. After erection and commissioning of Wind Electric Generators, the owner of wind farm usually takes Standard Fire and Special perils policy, which generally covers the following risk:

Fire Lightning Explosion / implosion Aircraft damage Riot strike, Malicious & Terrorism Strom, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood & Inundation Impact Damage

Subsidence & landslide include Rockslide Bursting and/ or overflowing of water tanks, apparatus and pipes Missile testing operations Leakage from automatic sprinkler installations Bush fire

Figure : Damage Of Windmill

The follo wing items are generally insured : Tower Nacelle Blades Electrical Panels Foundation Power and control cables Communication Cable Transformer etc.

If the owner desires to have the cover for damages due to earthquake (fire & shock) the insurance companies charge a nominal additional premium.

3.4.5 Terrorism: This policy is claim when terrorist attack on wind power machine. This incident occurs rarely 3.5 Insurance Company

Insurance policy taken from following companies The New India Assurance Co. LTD. Future Generali India Insurance Company LTD National Insurance Company Limited

AUTHORITY LETTER
A legal document in which a person gives another the power to act for him or her. The authority may be general or it may be restricted to activities such as the handling of security transactions.

In Suzlon Authority letter is required for follow up with the Insurance Company on behalf of customer. If any incident is occurs with wind mill maintenance is done by the suzlon company but insurance claim money is taken by the suzlon company. This is done as per the agreement with client.

TAX DEDUCTED AT SOURCE

Assessee pays tax in the assessment year on income earned in previous year. Due to this rule the tax collection is delayed till the completion of the previous year. Even sometimes people conceal their income and the tax is not paid at all. In order to overcome these problems,

government started to deduct some amount of tax from the amount which is receivable by the assessee. The amount of tax so deducted is called as "Tax Deducted At Source" or TDS in India. Advance Tax In some cases, the assessee is required to make a payment of advance tax. Such taxes paid in advance are called prepaid taxes. Tax deduction is mainly done to reduce ones taxable income. In a way tax deductions can reduce the taxable income and thus provide tax relief. Tax deducted in this manner needs to be deposited in the Government treasury and assigned to the Central Government, within a stipulated time period. Indian Government is adhering to the policy of TDS to broaden its tax bracket in the country. Income gained through several sources falls under the tax deduction at source or TDS scheme. Some of such income that is subjected to Tax Deduction at Source is as follows:

Salary. Interest. Rental fee. Interest on Securities. Insurance commission. Dividends from shares and UTI/Mutual Funds. Commission and brokerage. Prize money won from lotteries, horse races, etc. Payments to non-resident sportsmen or sports associations. Commission on sale of lottery tickets. Fees for professional and technical services and the like. Compensation for compulsory acquisition. Income from units of an offshore fund. Income from foreign currency bonds or shares of Indian Companies (unless specified as tax-free)

Marketing Strategy

THE ECONOMIC BENEFITS

Lower effective investment due to admissibility of 80% depreciation resulting into immediate tax shelter. To develop the windmill project 30% money is come from tax saving and 70% is come from loan.

Figure : Tax planning with wind power

High Return on Investment as reflected in the Pre Tax IRR for the project. Low Pre Tax Pay Back Period as compared to the economic life of the project. Wheeling to SEB is easy, so no marketing problems. Profitable investment in hi-growth energy sector Capital safety & steady cash flow predictable over 20 years & more Multiple revenue streams & faster payback Effective tax planning with accelerated depreciation Lower cost of power generation due to zero input cost coupled with low operational cost. Benefit of assured & cost effective operations & maintenance.

CARBON TRADING
Opportunity to earn additional revenue through carbon trading Reduction in carbon footprint to acquire a green / carbon neutral image for the company

ENERGY WHEELING FOR CAPTIVE USE

Mandatory to have HT meter For captive use, wind power project should be set-up in the same state of that of manufacturing unit of company Power generated from wind project is offset (unit-to-unit adjustment) proportionate to power consumed Results in up to 30% savings in power cost over long term Fiscal incentives (eg. Accelerated Depreciation & IT Benefits under Sec 80 IA)

SALE OF POWER TO UTILITY UNDER LONG TERM PPA

Any business or even individual can set-up a wind power project in any of windy states in India Power generated from the project is sold to local utility (EB) under long term PPA with pre-determined buy-back tariff Power generated from the project is sold to third party or captive use In the state of Tamil Nadu, Rajastan PPA is executed before commissioning the windmill In the state of Gujarat, Maharashtra PPA is executed after commissioning the windmill

THE END TO END SOLUTIONS

Single source solutions from land & infrastructure to supply of WTG, project commissioning & life cycle operation & maintenance Active assistance for Liaison activities, regulatory approvals, loan processing Customer time & manpower resources are not blocked

CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism (CDM) is an unique instrument established under the Kyoto Protocol which is based on understanding and co-operation among the nations to achieve sustainable development also aiming at protecting the world ecosystem. Since the onset of industrial revolution in the eighteenth century, the

atmosphere is being constantly loaded with several Green House Gases (GHGs). The

emissions have gone up considerable during the last decade resulting in progressive global warming. The CDM enables developed countries / companies to invest in developing countries towards GHG reduction commitment and earn Certified Emission Reduction (CER). CERs can be credited by developed countries towards their emission targets.

POLICY FOR MAHARASHTRA STATE

Description Power Purchase rate of SEB Duration of PPA by SEB Third Party sale of Power Wheeling & Transmission Charges Banking of Power Generated Approval of Regulatory Commission A-4: Policy For Maharashtra State Details Rs.3.50 with an increase of 15 Paise/p.a./unit up to 13 years from COD 13 years Allowed Approximately 25% Allowed Yes

Maharashtra
Supa 5% Sinnar 3% Satara 16% Dhule 51% Sangli 21% Gudhe Panchgani 4%

Motha 0%

Figure : Pie Chart Of Installed Capacity In Maharashtra State

Sr. No 1 2 3 4 5 6 7

Site Dhule Gudhe Panchgani Motha Sangli Satara Sinnar Supa Total

Installed Capacity 676.85 MW 54.9 MW 2 MW 269.1 MW 203.35 MW 39 MW 59.5 MW 1304.7 MW

A-5: Installed Capacity In Maharashtra State

Figure: Windmill Location in Maharashtra

POLICY FOR GUJARAT STATE

Description Power Purchase rate of SEB Duration of PPA by SEB Third Party sale of Power Wheeling & Transmission Charges Banking of Power Generated Approval of Regulatory Commission A-6: Policy For Gujrat State Details Rs.3.56 fixed for 25 years. 25 years Allowed 7%-10% Not allowed Yes

Amaliyara 9% Suthari 29% Bhogat 11% Kuchhadi 3% Sanodar 2%

Lathedi 17%

Nani Sindhodi 29%

Figure: Pie Chart Of Installed Capacity In Gujarat State

Sr. No. 1 2 3 4 5 6 7

Site Amaliyara Bhogat Kuchhadi Lathedi Nani Sindhodi Sanodar Suthari Total

Installed Capacity 60 MW 76.59 MW 21.6 MW 113 MW 203.85 MW 13.2 MW 195.15 MW 683.39 MW

A-7: Installed Capacity In Gujarat State

Figure: Windmill Location in Gujarat

Electricity Board Billing and Services Department

This Department deals with customer relationship post commissioning of Wind Turbine Generators. This department insures the developers or investors raise their invoices for the sell of power or adjustments in case of third party and captive use and also help them to get the payment.

Windmill Machines are group as per the commissioning date of machine 1998-2000 Machines in group A 2000-2003 Machines in Group B 2003-Till now in Group C As per the group unit rate is different. In Maharashtra rate of unit is decided by the Maharashtra state regulatory commission Customer will decide whom to sell the energy generated from wind mill

Their 3 options 1) Captive Use 2) Third Party 3) Electricity Board (Government)

1) Captive Use: Customer will use the energy for in their industry.

2) Third Part : Customer directly sells the energy to thirty party consumer. But their may be chance of loss money due to fraught, special attention should be given to handle the consumers. In this option customer will get more profit because Rate of per unit is 7 Rs or 8 Rs.

3) Electricity Board : Customer sells the energy to government. This option is secure option. But profit is less as compare to the Third Party Option. In Self Consumption and Third Party Option Suzlon will not come in picture. While giving the electricity to government like MSEB is Maharashtra State Electricity Board Suzlon give service to customer. Suzlon Company collects the reading of units generated every month and generate the invoice by using the software. The invoice is send to the customer. As per the invoice customer collect the money from government. For above service suzlon will need to track unit rate of every state. According to that invoice is generated

Benefits of this service 1) Secure Money Their may not any chance of loss of money due to fraught 2) On Time Money Governments always have enough money to pay

In the year 2003 electrical board is spited in to three companies under the Electricity Act promulgated by government of India. The companies are 1) Generation Company 2) Transmission Company 3) Distribution Company

The thing that produces the electricity is called generator like coal, nuclear, Hydro power. All the generators are come under the generation company.

Electricity Board

Generation Companies

Transmission Company

Distribution Companies

Conventional Energy

Coal, Natural Gas, Naphta Self / Captive use

Non Conventional Energy

Nuclear energy, Hydro energy

Renewable Energy

Wind, Biomass, Municipal west

Sale To Third Party

Figure: Structure of Electricity Board

Generator can sell the energy to Distribution Companies, Third Party, or captive use. Once the electricity generated it will enter in grid

Grid When energy is generated it is steps up to 110 KV / 132 KV /220 KV / 400 KV for transmission then Transmission company transmits to nearest sale station. Distribution Company steps down the voltage to 11 KV / 22 KV / 33 KV/ 440 KV. It distributes to various uses of their distribution area. While transmitting energy losses will occurs.Every generator uses the grid to reach final consumer. So it has to follow path like Transmission Company, Distribution Company for self use or third party sale.the trading margin in the intra-State trading of electricity, if consi

Resource Mobilization Department

Resource Mobilization department assist the customer in funding. To develop the windmill project 30% money comes from customer and 70% comes from loan of bank. The loan generally repayable within a period of seven years with moratorium of one year. During the moratorium period customer pay only interest on loan amount.

ACTIVITIES IN RESOURCE MOBILIZATION

1) Enquiry: On receiving reference from Marketing Dept in respect of a client about possibility of arrangement of loan from banks / institutions opinion is provided on the basis of financial data such as B/S etc provided or on the basis of personal discussion had with the client along with the Marketing Team member. 2) Marketing Dept carries out customer enquiry stage to finalization and acceptance of PO.
3) Bank Proposal :Once PO is finalized, the PO copy is taken for processing the loan request of customer The PO is classified as follows on the basis of input given by marketing dept. a) Self-funding b) Loan assistance c) Loan arrangement (about 90%) In the case a No further action is taken unless specific request comes from the client or the marketing team

In the case of b The details / inputs required by the customer for preparing the presentation data is provided .The necessary assistance support is provided as and when required by them including meetings with their banker.. In the case of c A Check list indicating the details required by RMD for preparing Detailed Project Report is sent to customer and subsequent follow up is made by phone and or meeting the personnel at different levels. On receiving the information a Detailed Project Report incorporating amongst others Financials of existing activities, Wind Mill activity and Combined activities for the loan period normally for 8 years is prepared.

The project profile containing customer request /application in the prescribed format, Detailed Project Report with full financial information is made and presented to the identified bank in consultation with the customer.

4) A) Follow up

After reasonable time the follow up is made with the bank about the progress on the proposal and any additional information required is furnished and meeting with customer is also arranged whenever required.

Banks / Financial Institutions generally enquire further information about the project during the process of loan application such as:

1) Location details 2) Land details such as survey no. area, nature of land, land registration 3) Copies of Nodal Agency clearances such as Infrastructure clearance, Commissioning Clearance, Details of connectivity to grid etc 4) Status of material supply at site 5) present status of completed work/ erection 6) Execution of PPA

7) Receipt for the payments by the customer 8) Original of invoices and delivery challans for supply made at site 9) Copy insurance polices for transit and erection (particularly in milestone/progressive payments) 10) Probable date of commissioning 11) Modalities for of creation of charge on assets.

The details required by them are furnished coordinating with various internal customers.

B. Presentation is organized to Committees of the Banks, Training Colleges of the Banks on various aspects of the Wind Power Projects.

5) Sanction As soon as sanction is made and arrangement letter is issued the customer is persuaded to submit the acceptance to the bank immediately and steps are initiated to complete the documentation by the customer.

a) Land document The title report of land is obtained from bank-approved lawyer on the basis of original Land documents from site office. Constant follow up and liasioning is made for obtaining the same from site office.

The documents called for title report preparation by lawyers are: Original sale deed Lease Deed, as the case may be, executed by customer and Suzlon Group companies, Original index II, Mutation entries for 30 years upto date, 7/12 extract showing the name of the client, 30 years search report in sub-registrar office, Zone certificate, Noc if any, l P/A if any N.A certificate, and any other related and revelent documents Land documents required are the same in respect of all lands in different states, however, they may be known by different names in the local languages.

b) Invoices and receipts

Original invoices for supply of material and receipt for various payments made so for are submitted to the bank.

c) PPA copy of PPA and copy of commissioning certificate are submitted

d) Collateral security collatereral security if any stipulated is complied by customer

e) Other related documents are executed by customer

6) Site visit Pre sanction and post sanction visit to site is arranged as per their requirement

7) Disbursement of the loan The disbursement are obtained on closure of compliance of sanction terms by customers and a Accounts dept is intimated about the payments

Stamped receipt for payments organized from Accounts Dept and sent to the Banks

8). On the basis of monthly targets given by the Management , Collection Details and MIS is provided periodically.

9).Weekly MIS on C2C issues is prepared and provided to the Top Management Team presided by Shri R. A. Parmar and discussed over CONCALLS and issues closed.

10). Weekly MIS on Order Fulfillment and Milestone payment is prepared and discussed with Supply Chain management Team over CONCALL presided by Shri Dinesh Karna.

Chapter 4 Conclusion

CONCLUSION
Customer satisfaction is directly proportionate to the success of company. All new initiatives taken by Customer Relation Management, Operation and Maintenance and Electrical billing related and other initiative which directly give benefit to customer.

RECOMMENDATION

1) 2) 3) 4) 5) 6) 7)

Customer can put query online Confidential customer survey will be carried out on an annual basis Customer can view windmill machine directly Exact generation of energy can be cross checked Quick action or response by KAM on customer query Keep monthly meeting with customer Give weekly report of machine to customer

Questionnaire
Please furnish the following information at the earliest in DUPLICATE to enable us to prepare the proposal papers and submit to the Bank.

Name of the company (whether SSI?) Sr.No 1 2 Requirement Application Certified copy of Memorandum & Art.. of Association / partnership deed 2(a) (b) 3 Share holding pattern Brief History of the co. Audited Balance Sheet for the last 3 years 4. Provisional B.Sheet as of quarter ended 5 CMA data for the period of Term Loan (for existing activity) 6 Brief Note on facilities existing with latest Status

manufacturing

details of infrastructure facilities available, manpower available etc. 7 Brief Note on manufacturing

process (existing activity) 8 Brief background of promoters /Directors (name, age,

qualifications, experience etc)

Professionals

supporting

the

company with details of name, designation, experience et. 10 Existing bankers and facilities age, qualification,

availed, with latest outstanding position with copy of latest

sanction communication/s 11 Please obtain NOC from existing bankers for availing the Term Loan for Wind Energy Project and for creating charge in favour of the new bank (If loan is to be arranged from a new bank) 12 Name of the associate concerns, activity, bankers, facilities availed 13 Copies of Income Tax Returns filed by the company and the promoter directors 14 Copy of latest available Income Tax Assessment Order 15 Status of payment of statutory dues such as Sales Tax, Income etc as per format duly certified by C.A. 16 Names of Directors / persons extending Personal Guarantee. 17 Net worth statement / personal balance sheet of the guarantors certified by C.A. A-8 : Questioner

Bibliography

http://www.mywindpowersystem.com/2009/04/the-10-major-wind-power-companies-in-theworld/ http://www.suzlon.com/index.aspx http://www.mercindia.org.in/