The study was undertaken primarily to understand and analyze the various factors that affect the demand of DG sets in NCR market and also to find out the strength of the competitor vis-à-vis UIL DG sets. Since power failure is very common in India, this equipment has got good demand. Diesel Generator set of 5 kVA to 60 kVA rating is having very good market as it suits to most of the commercial establishments. The time period was from 12th April to 2nd June. The study was focused in the Low to Medium power rating segment i.e.; from 5kva to 60kva and region chosen was NCR. Any cellular company was not considered in the study on the demand of the UIL. It was an Exploratory research or a problem Identification research. It was found that the “After sales service” played a key role and is one of the major factor followed by Brand of the ENGINE. Based on these findings UIL should focus on building a strong after sales support team and device a promotion strategy focusing on After sales service as there major asset and also build Brand awareness of the M&M engine they are using as prime mover for there DGsets. The project ends with the suggestions and the future scope of research. The suggestions made by the researcher are based on the customer and maintenance head’s feedback, his observations and understanding of the problem.

1. ANALYSE FACTORS EFFECTING DEMAND
OF
DIESEL GENERATORS (5-60KVA) IN NCR
SUMMER PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE
By Adeep Singh Dhir
ROLL NO. 167014
FOR

2. EXECUTIVE SUMMARY
The study was undertaken primarily to understand and analyze the various factors that
affect the demand of DGsets in NCR market and also to find out the strength of the
competitor vis-à-vis UIL DGsets. Since power failure is very common in India, this
equipment has got good demand. Diesel Generator set of 5 kVA to 60 kVA rating is
having very good market as it suits to most of the commercial establishments. The time
period was from 12th April to 2nd June. The study was focused in the Low to Medium
power rating segment i.e.; from 5kva to 60kva and region chosen was NCR. Any cellular
company was not considered in the study on the demand of the UIL. It was an
Exploratory research or a problem Identification research. It was found that the “After
sales service” played a key role and is one of the major factor followed by Brand of the
ENGINE. Based on these findings UIL should focus on building a strong after sales
support team and device a promotion strategy focusing on After sales service as there
major asset and also build Brand awareness of the M&M engine they are using as prime
mover for there DGsets.
The project ends with the suggestions and the future scope of research. The suggestions
made by the researcher are based on the customer and maintenance head’s feedback, his
observations and understanding of the problem.

3. TABLE of CONTENTS
.
Sl.No. Topics Page No.
i. Acknowledgement i
ii. Executive Summary ii
iii Objectives of the study 1
1. Introduction
1.1 Product Profile
1.2 Company Profile
1.3 Industry Profile
2
2
11
17
2. Research Methodology
2.1 Scope of the study
2.2 Research Design
2.3 Research Methods
2.4 Questionnaire Design
2.5 Sampling
22
22
22
23
23
23
3. Analysis 26
4. Findings/Observations 35
5. Limitations/Scope of further research 39
6. Suggestions 40
7. Bibliography 41
3

4. OBJECTIVE OF THE STUDY:
The primary objective of the study is to analyse the various factors that affect the Demand
of DGsets in NCR. And also to find out the strength of the competitor vis-à-vis UIL
DGsets.
INTRODUCTION
1.1 PRODUCT PROFILE:
4

5. Diesel Generator set is used to generate electricity for meeting the electricity requirement
of small establishments such as commercial buildings, Hotels, Railway Stations,
Telephone Exchange, Shops etc. when there is a power supply failure from the State
Electricity Board or other power supply undertakings.
The Diesel Generator sets proposed in this project profile are of lower to medium
capacity only i.e. between 5 kVA to 60 kVA. The prime mover of the Generator set will
be a diesel engine and the prime mover will be coupled to an alternator (single phase for
small units). There is a control panel to control the on/off operation/change over from
mains supply to Generator set supply etc. Generator sets of higher rating have to be
started with battery starters. Diesel Generator sets of smaller rating can be started by
cranking.
Technical Aspects :
The load requirement of the customer is studied in consultation with the customer. Any
special requirements such as minimum start up period, fluctuations of load etc. are noted.
A suitable alternator to meet the load requirement is procured from an alternator
manufacturer. A diesel engine suitable for the alternator is also selected and procured
from the diesel engine manufacturer. The diesel engine and alternator are coupled and
fixed on a frame. A control panel for starting the engine using battery bank, isolating the
mains while the alternator is running, disconnecting the alternator when the mains supply
is available etc. is designed and assembled as stipulated by the customer. The assembly is
tested for fuel efficiency, load capacity of the alternator, operational sequences etc.
The Diesel Generator set is then despatched to the premises of the customer in dismantled
condition on in assembled condition depending upon the size of the Diesel Generator set.
Midium Gensets(15-125kva)
5

6. Small Genset(2-15kva)
6

7. These DGsets have to confirm to certain quality standards given by Govt. of India.
7

8. Quality Control and Standards :
The alternator has to meet the requirements of the customer with regard to voltage,
frequency, power etc. and the diesel engine has to conform to IS 10001.
The performance of alternator and diesel engine may be tested at the manufacturers'
works before taking delivery.
The control panel requires contactors and relays. The contractors and relays shall conform
to relevant IS Specification and shall be from a reputed manufacturer.
Quality today is not only confined to the product or service alone. It also extends to the
process and environment in which they are generated. The ISO 9000 defines standards for
Quality Management Systems and ISO 14001 defines standards for Environmental
Management System for acceptability at international level. The unit may therefore adopt
these standards for global competition
P.S. for more on ISO,,refer www.iso.org
8

9. NOISE LIMITS, APPLICABILITY AND REQUIREMENTS
The Environment (Protection) Second Amendment Rules, 2002, vide notification G.S.R.
371(E), dated 17th May, 2002, at serial no. 94 (paragraph 1 & 3), prescribes noise limit,
applicability and other requirements for new diesel generator sets (upto 1000 KVA),
manufactured on or after 1st July, 2003. The notification is reproduced here as such.
Noise Limit for Generator Sets run with Diesel
1. Noise limit for diesel generator sets (upto 1000 KVA) manufactured on or after the
1st July, 2003.
The maximum permissible sound pressure level for new diesel generator (DG) sets with
rated capacity upto 1000 KVA, manufactured on or after the 1st July, 2003 shall be 75
dB(A) at 1 metre from the enclosure surface.
The diesel generator sets should be provided with integral acoustic enclosure at the
manufacturing stage itself.
The implementation of noise limit for these diesel generator sets shall be regulated as
given in paragraph 3 below.
3. Limits Of Noise for DG Sets (upto 1000 KVA) Manufactured on or after the 1st
July, 2003
3.1 Applicability
01. These rules apply to DG sets upto 1000 KVA rated output, manufactured or imported
in India, on or after 1st July, 2003.
02. These rules shall not apply to -
a) DG sets manufactured or imported for the purpose of exports outside India; and
b) DG sets intended for the purpose of sample and not for sale in India.
3.2 Requirement of Certification
Every manufacturer or importer (hereinafter referred to as "supplier") of DG set
(hereinafter referred to as "product") to which these regulations apply must have valid
9

10. PART I
EMISSION LIMITS, APPLICABILITY AND OTHER REQUIREMENTS
The Environment (Protection) Second Amendment Rules, 2002, vide notification
no. G.S.R. 371 (E), dated 17th
May, 2002, at serial no. 95, prescribes emission
limits, applicability and other requirements for new diesel engines (up to 800 kW)
for genset applications. The notification is reproduced here as such.
95. EMISSION LIMITS FOR NEW DIESEL ENGINES (UP TO 800 KW)
FOR GENERATOR SETS (GENSETS) APPLICATIONS
1. Emission Limits
The emission limits for new diesel engines up to 800 kW, for gensets
applications shall be as given in the Table below :
TABLE
Capacity
of diesel
engines
Date of
implementation
Emission Limits
(g/kw-hr) for
Smoke Limit
(light
absorption
coefficient,
m-1
) (at full
load)
Test cycle
NOx HC CO PM
Weighting
%
Upto 19
kw
1.7.2003 9.2 1.3 5.0 0.6 0.7 100
75
50
1.7.2004 9.2 1.3 3.5 0.3 0.7
>19 kw
upto 50
kw
1.7.2003 9.2 1.3 5.0 0.5 0.7
1.7.2004 9.2 1.3 3.5 0.3 0.7
10

11. 25
10
>50 kw
upto 260
kw
1.7.2003 9.2 1.3 3.5 0.3 0.7
>260 kw
upto 800
kw 1.7.2004 9.2 1.3 3.5 0.3 0.7
2. Applicability
These rules shall apply to all new diesel engines for genset applications
(hereinafter referred to as ‘engine’) manufactured in India and all diesel
engines for genset applications and diesel gensets (hereinafter referred to
as ‘product’), imported into India, after the effective date:
Provided that these rules shall not apply to :
a. any engine manufactured or engine or product imported for the
purpose of export outside India, or;
b. any engine or product intended for the purpose of sample only and
not for sale in India.
3. Requirement of certification
Every manufacturer of engine or every importer of engine or product must
have valid certificates of Type Approval and certificates of Conformity of
Production for each year, for all engine models being manufactured or for
all engine or product models being imported, after the effective date with
the emission limit as specified in paragraph 1.
11

12. 4. Sale, import or use of engine or product not complying with these
rules
No person shall sell, import or use of an engine or a product which is not
having a valid Type Approval certificate and Conformity of Production
certificate as per paragraph 3.
5. Requirement of conformance labelling
i. All the engines (individually or as part of the product) shall be
clearly engraved ‘Genset Engine’ on the cylinder block.
ii. The engine or the product must be affixed with a conformance
label meeting the following requirements:
a. the label shall be durable and legible;
b. the label shall be affixed on a part necessary for normal
operation of the engine or the product and not normally
requiring replacement during the life of the engine or the
product.
iii) The conformance label must contain the following information:
a. name and address of the engine manufacturer or the engine
or product importer (if the address is given in the owner’s
manual, it may not be included in the label);
b. statement that ‘this engine or product conforms to the
Environment (Protection) Rules, 1986;
c. type approval certificate number
d. date of manufacture of engine or in case of import, the date
of import of the engine or the product.
6. Compliance with BIS specifications
All engines up to 20 kw (individually or as part of the product) shall carry
12

13. ISI mark and meet relevant BIS specifications ( IS 10001).
7. Nodal agency
i. The Central Pollution Control Board shall be the nodal agency for
implementation of these rules.
ii. In case of any dispute or difficulty in implementation of these rules
the matter shall be referred to the nodal agency.
iii. The nodal agency shall constitute a Committee to advise it on all
matters, including the disputed matters, related to the
implementation of these rules.
8. Authorised agencies for certification
The following agencies are authorized to carry out such tests as
they deem necessary for giving certificates of Type Approval and
Conformity of Production tests for Diesel engines and to give such
certificates:
i. Automotive Research Association of India, Pune
ii. Vehicle Research and Development Establishment, Ahmednagar.
9. Compliance and testing procedure
The compliance and testing procedure shall be prepared and published by the
Central Pollution Control Board with the help of the Certification Agencies.
10.Fuel Specification
The specification of commercial fuel applicable for diesel gensets
shall be the same as applicable for commercial HSD (High Speed
Diesel) applicable for diesel vehicles in the area, from time to time.
13

14. Source : http://www.cpcb.org
1.2 COMPANY PROFILE:
Usha International Ltd.
Usha International is an associate company of the Siddharth Shriram Group. Its
philosophy and work culture finds inspiration in the vision and pioneering spirit of the
reputed Shriram Group. Usha International has been at the forefront of the country’s
economic and corporate growth for more than 50 years. It has been the marketing
company for a large number of products manufactured by other group companies and has
been reaching out to people in the remotest corners of the country and the world.
UIL is the largest Consumer durable marketing company of India with its brand “USHA”
being a household name among Indian consumers since the pre-independence period. UIL
is basically a distribution company except for few of its products, which it manufactures.
The brand “USHA” is registered with the Jay Engineering Works (JEW) which is an
affiliate of UIL and a principle vendor for Fans and fuel injection systems.
Product range :
• Fans
• Sewing Machines
• Home Appliances
• Refrigeration Equipments
• Inverters
14

15. • Power Products (includes Diesel engines, Gensets, Pumps etc.)
• Auto Products.
Except for the Fans and the refrigeration equipments, all the other products are sourced
from various vendors and then distributed through its channels. The Fans and the Fuel
Injection systems are manufactured at the JEW factories at Kolkata and Hyderabad while
the refrigeration equipments factory is in Faridabad, Haryana. The product stable includes
brands imported from abroad – especially from China.
I. Electric Fans
Electric fans are primary bread earner for the company with nearly 200 Crore of topline
contribution. Fans are one of the oldest business lines of UIL. UIL do over 160 Models of
fans, in different sweeps, shapes, sizes and application. UIL sources fans from its group
company, JEW and its units: HEI and UFI.
The total fan industry of the country is valued at about Rs. 3.3 Crores with the
Unorganized market commanding 55% of the pie and the organized being 45%.
The organized segment is very competitively shared by all the big names as follows:
Company Mkt. Share in 04 – 05
(%)
Mkt. Share in 05 – 06 (%)
Bajaj 13 13
Havell’s 5 7
Ortem 2 3
Usha 20 18
Orient 17 17
Crompton 21 23
Khaitan 11 10
Polar 11 9
Market size 1.37 1.50
15

16. (Rs Cr.)
It is evident from the above figures that the market leader is Crompton which has
increased over the last year while the performance of Usha has taken a beating with its
market share going down by 2% from the previous year. This is mostly because of the
decrease in the export contribution and the competitors eating up the market with better
design fans in the premium segment.
But the potential threat lies else where. The growth of Havell’s in the Fan segment is
tremendous because of the fact that Havell’s is a very recent entrant in the industry, just 3
– 4 years ago. The critical factor of Havell’s success in such a short period of time is its
distribution network. Havell’s is in the electrical goods market for a considerable period
of time now and already has an established and very strong dealer network. Havell’s is
using these dealers to sell its fan – in the standard and premium segment, which has
benefited them immensely. And as per market experts, Havell’s is the company to look
for in the near future as a very serious competitor for all the established companies.
II. Sewing Machine
Sewing machine is the oldest product line of UIL. Earlier the sewing machines were
sourced from JEW, but lately, since JEW has stopped production of Sewing Machines,
UIL is sourcing Sewing machines from different vendors, generally in Ludhiana. UIL is
also marketing Jenome range of Sewing machines in collaboration with Jenome of Japan.
Total size of sewing machine in India is 220 Thousands*/Number/ Month. Market
being segmented as follows
(* - the number being equal to the number of the “khols” or the body of the SW m/c being
produced at Ludhiana by different vendors, the only location for all the SW m/c
manufacture).
St Stitch 80% (176.5 T/N/M)
LIM 18% (40 T/N/M)
16

17. Semi auto zig zag 1% (2 T/N/M)
ZigZag imported 1% (1.5 T/N/M)
Market share vis-à-vis Competitors
Usha 16%
Singer 4%
Laxmi 2%
Pooja 3%
Relson 3%
Revo 3%
Novel 2%
Others 67%
III.Water Cooler and Air Conditioner
Total Market share of water cooler industry is 43000 per year. Blue Star is the market
leader with 36%, and voltas 29%. Sriram has 13% share in the industry.
A different kind of water coolers, called bottle coolers, used as dispenser for mineral
water are growing rapidly which has a market of 50000 per year and generally catered by
imported machines.
IV. Inverter
Inverter are solution to problem of frequent powercuts in northern India. According to a
conservative estimate, there will be demand for more than more than 15 lakh unit per
year. Today, the major player is Sukam with 31 % market share, followed by Microtek,
and luminous. Usha has a mere 2% market share.
17

18. Inverters are available in the following categories:
• 300 VA – Single battery, 240W
• 600 VA - -//-
• 800 VA - -//-, 640 W , 60%-65% of market
• 1400 VA – 2 batteries
• 2500 VA – 4 batteries
V. Appliances
Usha caters to this segment of market with Usha Lexus range of appliances, which are
sourced from Usha Sriram Limited. Total market of appliances is 2350 Crore, in which
organized is 36% and unorganized is 64%.
The share of the market is as follows:
Bajaj 19%
Philips 11%
Kenstar 11%
Usha 10%
Maharaja 8%
Recold 7%
Venus 5%
Symphony 5%
Inalsa 4%
Sumeet 4%
Others 12 %
18

19. Only Usha has the complete range of appliances whereas other players are present in just
one or two product categories such as Inalsa is present in food processor and JMG
segment only. Similarly Symphony is doing only room coolers.
Total market according to product category
MG 27%
JMG 6%
EI 7%
SDS 3%
RC 11%
SWH 14%
Wet Grinder 10%
Food Processor 6%
OTG 3%
Others 13%
Where as contribution of different product categories in Lexus for Usha are as follows:
MG 12%
JMG 7%
EI 11%
SDS 3%
RC 25%
SWH 19%
Heating appliance 10%
Others 13%
From above figure we can conclude that, we are excellent in Room coolers, heating
appliances. Appliances business is one of major thrust area for UIL, as it has complete
19

20. range of appliances and has lot of potential. UIL is trying to fill the gap with new models
to increase the penetration.
Power Products :- Power products is the division of Usha headed by Mr. Mahendroo. It
consists of 3 distinct segments….namely..
Pump sets—Both Diesel and Kerosene
Electrical--- Mini Monoblock Pumps, Electric Monoblock Pumps and Submersible
Pumps
Gensets--- Large and Medium Capacity Canopy generators
In diesel Pump sets the market is 236000 per year and the organized sector takes 113000
of it and the unorganized 150000/year
In kerosene pumps the market size is 97000/ year..the main players are Honda with 36%
and Villiers with 17%, Usha’s share is 8%
In MMB’s the unorganized sector leads with 33% share and Usha and Crompton are
matched with 20% each shares
20

21. 1.3 INDUSTRY PROFILE
Market Size and share in the power generation segment for FY 0304 & FY 0405 is as
follows:
Manufacturer 03-04 Market
Share
04-05 Market Share
KOEL 1400
0
45 1750
0
38
CUMMINS 1150
0
37 1700
0
37
MAHINDRA 450 1 5000 11
LEYLAND 2000 6 2400 5
GREAVES 1200 4 2000 4
CATERPILLAR 400 1 600 1
Others 1900 6 1500 3
Total 3145
0
4600
0
Complementors:
A player in the industry is a complementor to the organization’s product if customers
value the organization’s product more when they have the other player’s product/ service,
than when they have only the organization’s product/service.
In power generation segment, battery, fuel tank, radiator, etc. are the complementors,
since with these products, consumers can value the engine. In other segments, it is other
equipments’ components which act as complementors.
Influencers:
Influencers generally operate between the industry and its suppliers and buyers. In
engines industry, channel financers act as influencers. Channel financers are those banks
that provide finance to OEMs and dealers to purchase engines from the manufacturer.
21

22. Channel financers can influence buyers to purchase from another manufacturer by their
terms and conditions.
MAJOR COMPETITOR:
Kirloskar: Kirloskar : Diesel Power Generator Manufacturers in India
Kirloskar pioneered the Engineering industry in
India with the introduction of India's first Iron
Plough in 1988,first Electric Motor, first Pump
and first Diesel Engine in 1946. Always a
socially conscious group, this philosophy finds its presence in the designing
our products. Kirloskar Eco friendly Power Generation Sets are first in the
world to meet the Central Pollution Control Board (CPCB) norms issued by
Ministry of Environment & Forests, Government of India. Kirloskar's Power
Generators are thus well equipped to satisfy the most stringent norms set in the
industry.
On the quality front the power generators are of the best quality to have
received the type approval from ARAI for emission compliances. With
continuous up-gradation we have ensured total quality, a fact proven by the
ISO 9001 certifications for Quality Management Systems. On the
environmental front we have certified for ISO 14001 for Environmental
Management Systems for our plant at Pune.
Few characteristics of the Kirloskar Power generator sets -
Ready to use generator sets A warranty of 24 months from the date of the DG
set supply or 5000 normal operating hours whichever is earlier
Lowest Life Cycle Costs
High generator set availability
Eco friendly options available
22

23. Product Range-
The various Diesel Generator sets manufactured by Kirloskar are the KGPI
series 15KVA to 600KVA and under the collaboration with SEMT-Pielstick in
the range of 2000 KVA to 6375 KVA.
Product Usage-
Kirloskar Green engines are used in industrial, agricultural, construction,
power generation as well as marine applications.
MAJOR DEALERS:
Bhaskar:
BHASKAR POWER PROJECTS (P) LTD. is a Pioneer in
manufacturing Generating Sets.
After graduating as an engineering from BITS, Pilani in 1971, Mrs.
Chandralekha Bhaskar headed Marketing Divisions of leading OEAs of
Kirloskar Cummins of their times. In 1988-89, she set up assembly
plant at Noida and has been OEA of Cummins, Kirloskar Oil Engines
and Leyland since then.
The other Director, Dr. Vinay Bhaskar is Ph.D from University of Delhi
in Modernisation and Industrial Systems with experience of 32 years in
industry.
The company is ably supported by a team of talented and experienced
engineers who have long and varied exposure in GENSET industry for
10 to 20 years with specialisation in diverse engine-alternator
configuration.
The company has the distinction of assembling 5 to 1250KVA GENSETS
with approvals of Defence, Air Force, NSIC, Petroleum Corporation,
23

24. TELCOM, ISRO, SIDBI, RAILWAYS, CSIR, NRSA, Roof Top Installation,
Silent and mobile sets, PLC based auto synchronised sets with
complete data logging facilities and GENSETS with remote radiators of
Heat Exchanger Cooling have been installed in various parts of the
country.
A sound state-of art assembly plant was also started in DAMAN in
1996. Equipped with latest process equipments, the plant has
adequately streamlined process flow, with UPF load bank and cooling
towers to test 1 MW GENSET on full load, both in H.E. & Radiator
Cooling arrangement. The packaging plant has a tool room, equipped
with Lathe, Drills, Slotter, Sheet Cutting, Welding, Grinding, Painting
and Hub Heating facilities. Complete records and tools are maintained
to ascertain highest standard of tolerance. Sound levels, vibration
tests, inductive transformer, alignment gauges provide necessary
support in the quality systems.
A second unit, Accredited with ISO:9000 started in 2000 and has
capacity to produce 300 DG sets per month, The plant has latest CNC
based technology to manufacture acoustic controlled (canopy house)
Generator sets for all applications.
The manufacturing staff is provided periodic training at Pune, Stamford
and Kirloskar plants at Ahmednagar and Bangalore respectively and by
other engine and alternator manufactures at company's Daman works.
Since May 2000 company is exclusive GOEM of Kirlosker oil engine
10L, Pune, Countries largest producer of Diesel engine.
The Central Administrative and marketing office operates at NOIDA IN
U.P. which is just 12 KMs from Connaught Place/Nehru Place/New
Delhi. There are five Regional offices located at Lucknow, New Delhi,
Ludhiana, Ahemedabad & Jaipur. Each is headed by Vice-President or
24

25. Area Manager marketing and supported by team of Sales Engineers,
Service & commissioning groups.
The local branches cover different zones form Udaipur, Jodhpur,
Daman, Karnal, Bareilly, Chandigarh, Allahabad, Surat, Rajcoat,
Dehradoon, Kanpur, Agra, Varanasi
The company has been oragnising training facilities for its customers at
Pune and conducting seminars and product appraisals at different
town. After sales services are the key areas of strength with Senior
Engineers available all round the year to supplement service team of
engines and alternators manufacturers.
The company has achieved sales of over 30000 DG sets till December
2003 and targets to manufacture 4000 GENSETS in 2004-05.
Since inception, the company directly procures all engines and
alternators from the respective manufacturers as this enables better
co-operation and effective product support.
Sudhir:
Sudhir today is the leading name in the powergen business for all gensets in the range of
15-2,000 KVA in single units in synchronising mode, power with cummins prime
movers.
The group forged a unique position for itself with its commitment to quality and complete
customer satisfaction covering a spectrum of service for over three decades.
The organisation has provided world class products to the Indian Industry.
Sudhir Group came into existence in 1973 and has today forged a
unique position for itself through its commitment made towards quality
& complete customer satisfaction. Covering a spectrum of services
including power generation, distribution, protection, control &
automation for over three decades the company has provided world
25

26. class services & products to the industry. Driven through a tireless &
unstinting desire for excellence in every field, the organisation has
achieved an enviable position by a programme of continious
improvement of quality, consistent growth, productivity & profitability,
customer goodwill & employee empowerment. Converting every
challenge into an opportunity, we have garnered the
market forces of liberalisation, competition and globalisation through
stage-of-the-art facilities & a highly dedicated and motivated team,
thus creating new benchmarks in quality, speed & reliability.
26

27. 2. RESEARCH METHODOLOGY
Marketing Research
Marketing Research is a systematic and objective identification, collection, analysis,
dissemination, and use of information for the purpose of assisting management in
decision making related to the identification and solution of problems(and opportunities)
in marketing.
The researcher has used
 Problem Identification Research
2.1 Scope of the study:
The study was focused in Delhi and NCR
 Time scope:: The study is based on the primary data collected over the period from
27th April 2006 to 18th
May 2006.
 The study is focused on small and medium size gensets i.e.; 5kva to 60kva.
 Cellular companies were not taken in survey.
2.2 Research Design:
Research Design is the framework or blueprint for conducting the marketing research
project. It specifies the details of the procedures necessary for obtaining the information
needed to structure and/or solve marketing research problems.
Research Design used in the project is Descriptive Research.
2.3 Research methods:
27

28. There can be different Research methods namely:
 Observational
 Survey
 Secondary Data
The Researcher has followed the survey method.
Research Instruments:
Structured Questionnaire and Interview with the respondents.
2.4 Questionnaire Design:
To collect quantitative primary data, the researcher has design a questionnaire.
The questionnaire has three objectives:
 It must translate the information needed into a set of specific questions the respondent
can and will answer.
 It must motivate respondents to complete the interview.
 It must also minimize response error.
2.5 SAMPLING
Target Customer:
 The respondent should be owner/purchaser of company which owns DGset.
 The respondent will be selected in the NCR.
 The respondent must have basic knowledge about the DGset.
28

29. Sampling Technique:
Since there was no database, Convenient sampling is done.
Sample Size:
For the survey, a sample size of 150 is taken. Actually the researcher had allocated 20
days for the survey. In these 20 days, 150 respondents were interviewed and asked to fill
questionnaires. The break-up is as follows:
 Delhi: (52)
 Noida: (35)
 Ghaziabad (32)
 Faridabad (15)
 Gurgaon (16)
29

30. Discussion of the Questionnaire
Qs.1-5 is concerned with the personal information of the owner/purchaser of DGset.
Qs.6 Gives information about the Brand owned by the interviewer and also the power
rating. Thus it could be termed as a classification Qs.
Qs.7-8 seeks to find out which is the most important attribute the interviewer saw while
finalizing the Dgset.
Qs.9 this question provides points to each of the attributes that the interviewer thinks
are important to him/her in a Dgset.
Qs.10 This question is in the form of a matrix between the various attributes of DGset
and the various brands available in the market. Thus it provides a good
comparison between various brands on each of the attribute.
Qs.11 it gives the comparison between various brands of diesel engine available in
market and also checks for any discrepancies in the answer given in the 10th
Qs.
Qs.12 This Qs gives the average no. of hours the DGset are being used in NCR, thus
helps in determining the demand.
Qs.13 This Qs seeks to find out the satisfaction level of the interviewer.
30

31. 3. ANALYSIS
Which Brand of DGSet you are using
currently?
29%
9%
13%4%
45%
kirloskar
ashok leyland
cummins
caterpillar
others
31

32. Which of the following MOST
influenced your purchase of DGSet?
33%
44%
2%
11%
10%
brand of DG SET
brand of engine
brand of alternator
reference
word of mouth
If by REFERENCE, then by whom it
was referred
12%
18%
6%64%
yellow pages
builders/
contractors
architect
others
32

33. Rate the following factors on a scale of 1-10
according to the IMPORTANCE
Given by you in a DGSet?
1304
21%
1123
18%
1372
21%
853
13%
686
11%
993
16%
engine
alternator
after sales service
maintenance
Overall design /
Aesthetics
fuel efficiency
Brand-wise comparsion of different attributes of
DG SET
0
200
400
600
800
1000
1200
Usha
Kirloskar
Ashok
Leyland
Cum
m
ins
Caterpillar
Local
Engine
Alternator
After sales Service
Maintenance
Overall Design
Fuel Efficiency
33

34. perception of various diesel engine brands.
468, 13%
1018, 27%
560, 15%
962, 26%
385, 10%
336, 9%
M&M
kirloskar
ashok leyland
cummins
caterpillar
others
usage of DG SET.(in hours )
0 to 1
2%
1 to 3
19%
3 to 6
67%
6 +
12%
0 to 1
1 to 3
3 to 6
6 +
34

35. Would you recommend your existing DGSet
Brand’s services to colleagues or
contacts within your industry?
114
31
5
0
20
40
60
80
100
120
yes no not sure
35

36. PESTEL Analysis:
Political Factors:
P1: Central government has declared that agriculture, road construction and housing will
continue to be their priorities. This will ensure the demand of engines in these segments.
P2: Announcements by States of free supply of electricity to farmers will affect the sale
of generating sets in rural areas.
P3: Value Added Tax (VAT) regime brought in effect from 1 April 2005 has reduced the
costs of manufactures, but they still have to pay octroi.
P4: Government initiatives to encourage exports will increase the exports of engines.
Economic Factors:
E1: GDP grew by 7.4 per cent in the first quarter and 6.6 per cent in the second quarter of
the current year. This also has good effect on the economy as whole.
E2: Industrial sector grew by 8.4 per cent in first three quarters of 2004-05 which means
that the manufacturing sector is booming.
E3: Inflation is 5% that is rise in prices of goods is not very much.
E4: Power deficit to increase, hence there will be demand for generating sets.
36
Peak
Demand
Surplus /
Deficit
Surplus /
Deficit
Energy
Requirem
ent
Energy
Availability
Surplus /
Deficit
Surplus /
Deficit
(MW) (MW) (%) (MU) (MU) (MU) (%)
Total (NR) 35540 29677 -5863 -16.5 220820 181544 -39276 -17.8
Total (WR)
35223 30193 -5030 -14.3 224927 186386 -38541 -17.1
Total (SR) 31017 25290 -5727 -18.5 194102 159787 -34315 -17.7
Total (ER) 11990 14187 2197 18.3 69467 84271 14804 21.3
Total (NER)
1875 2035 160 8.5 9501 11057 1556 16.4
All India 115705 101428 -14277 -12.3 719097 623252 -95845 -13.3
Region/
State/U.T.
Peak
Availability
(MW)
Anticipated power supply in 2006-07

37. E5: Thrust on investments in infrastructure & construction sector continues, hence
demand for earth moving equipments will increase, thereby increasing the demand for
engines. Eg NHDP as on Jan 01, 2005 is:
Source: NHAI website
E6: IT-enabled Services sector to grow at CAGR of 38%, hence generating sets are
required for stand-by power.
E7: Investments in telecom infrastructure likely to be Rs.1030 billion over the next 5
years. This will also impact the sales of engines, as generating sets are required for
generating power in the base terminal stations of the network tower.
37
Year
Subscribers
(million) GSM CDMA
BTS-installed
('000)
BTS-additions
('000)
2003 13 13 0 11
2004 35 25 10 23 12
2005F 63 39 24 44 21
2006F 99 57 42 72 28
2007F 129 72 57 101 29
2008F 159 87 72 131 29
Port Others Total by
Golden Quadrilateral NSEW Corridor Total Connectivity NHAI
Total Length (Km) 5,846 7,300 13,146 363 653 14,162
Completedtill date 4,328 675 5,003 69 194 5,226
UnderImplementation 1,518 388 1,906 243 121 2,270
Contracts to beawarded(Km) 73 5,761 5,834 51 338 6,223
National Highway DevelopmentProgramme

38. E8: Growth in retail banking to be at a CAGR of 10-12%, hence generating sets are
required for stand-by power. Expansion program of 05-06 of some banks is:
Source: KOEL
E9: Raw Material (Steel and non-ferrous metals) cost increase of 60% to 70%, which has
also made engines costly.
38
Branches ATM
HDFC Bank 100
Kotak Mahindra Bank 70
IDBI Bank 30
Corporation Bank 20
Tamil Nadu Mercantile Bank 150
Canara Bank 494
Total 220 644

39. E10: Rising diesel costs which will affect sales of engines as diesel is used as fuel in
engines.
E11: Cheap imports from China will affect the sale of engines.
Socio-Cultural Factors:
S1: Per capita income of India has increased to US$534.
Source: www.ibef.org
S2: Lifestyle of people has changed; hence there is demand for housing and
entertainment. Because of this, sales of engines are affected, as engines are used in
construction equipments and also in generating sets as source of stand-by power.
S3: Bank financing has increased, which helps customers to buy gensets and hence,
demand for engines has increased.
Technological Factors:
T1: Research and technology up-gradation has become necessary to meet stringent
emission standards. Unless engines comply by these regulations, their sales get affected.
T2: As diesel costs have increased, hence there is a shift from using diesel to using gas as
an alternative fuel. This causes pressure on manufacturers to design engines using gas as
fuel.
T3: New products that are less material intensive are built so that rising raw material
(steel & non-ferrous metals) doesn’t affect the prices of engines.
T4: Changes due to Information Technology have caused changes in back-end and front-
end supply chains. ERP system is used in most of the companies to process orders and to
integrate all functions of the organizations.
39

40. Ecological Factors:
EC1: Emission and noise regulation by Ministry of Environment and Forest concerning
generating sets regulates engine manufacturers to manufacture engines which comply
with these regulations.
All these factors are important to this industry. But not all the factors will have significant
impact on the organizations in the industry. Hence, we will use impact matrix to
determine those factors:
Impact on Business
Probability of
Impact
High Medium Low
High P2
E4,5,6,7,8,9,10,11
E1,2 P3,4
E3
EC1
Medium T1,2 P1
S2, T3
S1,3
T4
I1,2
Low ------- ----- -----
40

41. Hence, critical factors (having high probability and high impact) derived from the
external analysis are:
Factor 2003-04 2004-05 2005-06 Favourab
le
Unfavo
urable
Free supply of
electricity
to farmers
No free
supply
Free
supply
Free supply √
Power deficit
(Source: Mr. Jeetendra
Shende, KOEL)
Deficit of
26475 MW
in 03-04
Deficit of
28272 MW
in 04-05
Deficit of
30084 MW in
05-06
√
Investments in road
infrastructure
and construction
sector
Sector
started
getting
attention
High
investment
s
Investments
likely to
continue
√
Growth in services
sector
Medium
growth
High
growth
Expected to
grow by 60%
√
Investments in
telecom
Infrastructure
13 million
subscribers
in 0304
35 million
subscribers
in 0405
63 million
subscribers in
0506 & likely
to grow
√
Growth in retail
banking
Medium
growth
High
growth
High growth
to continue
√
Raw material prices Small
increase in
prices
Steep
increase in
prices
May increase
further
√
Diesel costs Small
increase in
prices
Increase in
prices
Further
increase in
prices due to
√
41

42. increase in
global oil
prices
Cheap imports from
China
Less
imports
Imports
have
increased
in small hp
engines
Imports may
further
increase in all
segments
√
4.FINDINGS:
USHA is seen as a new entrant in DGsets. Hence, people perceive all the problems which
are encountered by a new entrant in USHA.
 DGset customers in NCR look for the following attributes:
• A strong after sales service, since it involves diesel engine
so all the maintenance headaches are to be solved by
company itself.
• The Dgset should have a good Brand image, the image of
the DGset’s brand as well as the image of the Brand of the
diesel engine both play a major role
• Brand of the alternator is also necessary
• Easy Availability of cheap spare parts and mechanics
• Less repair time and cost
• Operator Safety
• Easy installation
42

43. • Overall design and aesthetics need to be customized
according to the customers requirement
CRITICAL FACTORS :
 Strong service back-up:
Since engine is a product that is used very roughly, hence it requires timely
and correct service. Hence, this industry requires strong service back up.
 Differe ntiation of engine, in terms of brand, customer service etc.:
Since the product i.eDGset is a differentiated product but it sells. engine is not
a differentiated product, hence companies require brand heritage, strong and
reliable customer service for differentiating themselves.
 Threat of new entrants:
o Capital requirements are high, as manufacturing engines is a highly capital
intensive business. Hence, threat of new entrants is low.
o Switching costs are high because after investing huge capital, switching
business is not possible. Hence, threat of new entrants is low.
o Control of distribution channels is high, as the relationships with the
channel partners are very old and very strong. Hence, it is very difficult for
a newcomer to establish equal and strong distribution channels so early.
Hence, threat of new entrants is low.
o Profit is moderate. Hence, threat of new entrants is medium.
o Strong service back up is required, as engine is a product which has a very
usage. Thus, it requires a strong service back up. Hence, threat of new
entrants is medium.
43

44. o Product differentiation is moderate, since the basic product is same. It is
differentiated only by brand heritage, customer relationships and service.
Hence, again threat of new entrants is medium.
o Minimum efficient scale of production is high relative to market that is
scale of economies is large. Thus, threat of new entrants is low.
44

45.  Intensity of Competitive Rivalry:
o Number of competitors is medium. The major players and their respective
market shares are:
Manufactures Market Share
Cummins India 24.31
KOEL 17.19
Greaves Cotton 11.06
Simpson & Co. 7.22
Ashok Leyland 2.76
Swaraj Engines 2.74
Imported 16.80
Source: CMIE Reports
o Industry growth rate is low as it is 10.7% (Source: CMIE Reports). It was
-0.7% last year, as the economy was not as good as it is this year. Hence,
this shows that the industry depends a lot upon the state of the economy.
Hence, the rivalry is moderate.
o Fixed costs are high, since large portion of investment goes into building
plant and fixing machines. Hence, fixed assets are high and the
competitive rivalry is low.
o Product differentiation is moderate, since the basic product is same. It is
differentiated only by brand and customer service. That is why, rivalry is
moderate.
o Exit barriers are high because of the large capital investment; which makes
the rivalry moderate.
Hence, competitive rivalry is moderate in the engines industry.
.
45

46.  Threat of substitutes:
o Invertors:
The performance of invertors has increased and their prices have also
reduced. In lower ratings of upto 6 kW, the generating set market is
steadily shrinking.
o Gas fuelled generating sets:
Since gas is available at economical price, power generated from gas is
usually lower in cost. With the advent of technology, gas can be
supplied all over the country at lower costs, which will put pressure on
generating sets running on diesel engines
Hence, the threat of substitutes is high in power generation segment.
 Network of distribution channels:
Vast network of distribution channels is an important requisite in this industry, as
presence of more and strong distribution channels helps in the pre-purchase and
post-purchase situation.
 Technology used for manufacturing engines:
The technologies keep on changing in this industry due to environment friendly
norms, emission norms, sound free working, etc. Hence, technologies used for
manufacturing engines become very important
Hence, it can be said that the network of dealers, brand heritage and efficient
customer service are the core competence for USHA to look upon.
46

47. 5. LIMITATIONS OF THE STUDY AND THE SCOPE OF
FUTURE RESEARCH
The study suffers from the following limitations:
 The study is limited only to the Delhi region
 Limited time period of two months.
 Inability or unwillingness on the part of some respondents to answer all the
questions asked.
The scope of future research:
Further research could be done for choosing the best promotion strategy for the
promotion of DGsets by UIL
47

48. 6. SUGGESTIONS:
 Repair time for the customer should be minimum.
 Make customer aware about the ISO9001 certificate.
 Can provide finance or give on installment basis.
 Since its illegal to run a DGset without Sound proof canopies, thus can educate
potential and existing users of DGsets.
 After sales service is of prime importance, thus a good maintenance team should
be formed for DGsets.
 Offering cost-effective models in all ranges of DGsets.
 Leveraging the fuel efficiency of engines as a selling proposition.
 To put pressure on competitor margins by positioning USHA offering with
affordable price and highlighting compactness of our offering
 Deployment of additional service dealers in under represented areas
 Further strengthen the partnership with the OEMs in various applications
 USHA can reduce the price of its DGsets by using technology to manufacture less
costly DGsets.
 Power deficit will continue to increase by enormous 10-15%, which will again
increase the sales of generating sets, so a big potential in the market for DGsets.
 USHA can follow penetration by decreasing its prices or employing stronger sales
force.
 No Frills Strategy: USHA can focus on Low Price, Low Perceived Added Value,
Focus on price-sensitive market OR Focused Differentiation: USHA can also
go high perceived value justifying high price.
 Tie-up with or Acquisition of diminishing competitor
 USHA can go for geographic expansion of untapped markets and even
manufacturing generators for retail customers i.e generators for household
purposes.
48

49. Bibliography
1. Marketing Research by Naresh Malhotra (4th
Edition)
2. Marketing Management by Philip Kotler (11th
Edition)
3. www.ushainternational.com
4. www.sudhirgensets.com
5. www.cumminsindia.com
6. http://kirloskarapps.kirloskar.com
7. www.cpcb.nic.in
8. www.indianindustry.com
49

50. ANNEXURE
FORE SCHOOL OF MANAGEMENT
SUMMER TRAINING PROJECT
Questionnaire
Q1. Name :
Q2. Designation :
Q3. Company name and address :
Q4. Contact number :
Q5. Email address :
Q6. Which Brand of DGSet you are using currently? (Kindly specify the power)
a. Usha
b. Kirloskar
c. Ashok Leyland
d. Cummins
e. Caterpillar
f. Any other(________________) please specify
Q7. Which of the following MOST influenced your purchase of DGSet?
a. Brand of the DGSet
b. Brand of the engine
c. Brand of the Alternator
d. Reference
e. Word of mouth
Q8. If by REFERENCE, then by whom it was referred:
a. Yellow pages
50

51. b. Builder / Contractor
c. Architect
d. Any other(________________) please specify
Q9. Rate the following factors on a scale of 1-10 according to the IMPORTANCE
Given by you in a DGSet?
a. Engine
b. Alternator
c. After sales service
d. Maintenance
e. Overall design / Aesthetics
f. Fuel Efficiency
g. Noise level
h. Installation
Q10. In the table below, please rate the brands on the following attributes on a scale
Of 1-10 :
Attributes
of DGSet
Brands of DGSet
Usha Kirloskar Ashok Leyland Cummins Caterpillar Local
Engine
Alternator
After sales Service
Maintenance
Overall Design
Fuel Efficiency
Noise level
Installation
Q11. On a scale of 1-10 rate the following brands of the DIESEL ENGINES:
a. M&M
51

52. b. Kirloskar
c. Ashok Leyland
d. Cummins
e. Caterpillar
f. Others
Q12. On an average, what is the usage rate of DGSet per day in hours?
a. 0 – 1 hr
b. 1 – 3hrs
c. 3 – 6hrs
d. > 6hrs
Q13. Would you recommend your existing DGSet Brand’s services to colleagues
or contacts within your industry?
a. Yes
b. No
c. Not sure
Thank You for sparing your time to complete this survey.
52