- To estimate the market potential of Suzlon Wind Energy in Pharmaceutical Industry in Ahmedabad City. - To generate future prospects of business for the company by creating market awareness and client acquisition. - Forecast energy requirements for the next five years for Pharmaceutical Industry in Ahmedabad. Thanks

1. A
REPORT
ON
“Scope of Wind Energy in Pharmaceutical Industry in Ahmedabad”
CASE STUDY
ON
“Power Consumption Pattern and Forecasting for Pharmaceutical
Industry under SEZ‟s in Ahmedabad”
SUZLON ENERGY LIMITED
By:
ANTRIKSHA AGRAWAL
0901202867
ICFAI BUSINESS SCHOOL
AHMEDABAD
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2. A
PROJECT REPORT
ON
“Scope of Wind Energy in Pharmaceutical Industry in Ahmedabad”
CASE STUDY
ON
“Power Consumption Pattern and Forecasting for Pharmaceutical
Industry under SEZ‟s in Ahmedabad”
By:
ANTRIKSHA AGRAWAL
0901202867
SUZLON ENERGY LIMITED
A Report Submitted in partial fulfilment of the requirements of MBA
program of
The ICFAI University
Dehradun
DATE: 28/04/2010
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3. ACKNOWLEDGEMENTS
I feel great pleasure in expressing my esteemed regards to my company guide
Mr Prashant Baxi and also to Mr Viral Mehta for there skilful guidance and
unparalleled supervision throughout the internship. I have enormously benefited
by working under their guidance and will always be greatly indebted to them for
there perennial source of help, everlasting inspirations and innumerable
discussions as a consequence of which present study reached fruition.
I also wish to thank Ms. Madhuri for her kind help and suggestions.
I am also thankful to all the employees of Marketing Department in Suzlon
Energy Limited for their support and encouragement throughout the tenure of my
project.
It is my privilege to express the regards to our Director Dr Bala Bhaskaran, ICFAI
Business School, Ahmedabad and Professor Amit Saraswat for their esteemed
co-operation and consecutive guidance which helped me to get the work in the
present shape.
Date: 28/05/10 Antriksha Agrawal
IBS Ahmedabad
Batch 2009-11
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4. TABLE OF CONTENTS
Acknowledgements…………………………………………………………… 3
Abstract………………………………………………………………………….6
INTRODUCTION……………………………………………………………… 7
DESCRIPTION
Wind Power Industry at a glance……………………………………………. 8
Wind Power development in India…………………………………………...11
Wind Energy- Renewable Energy Source…………………………………. 12
Setting Up Wind Energy Project…………………………………………….. 15
Wind Power Density in India………………………………………………… 16
INDIAN PHARMACEUTICAL INDUSTRY
Industry trends………………………………………………………………… 19
Future scenario……………………………………………………………..... 20
SPECIAL ECONOMIC ZONES
Type of SEZ‟s 22
Gujarat State Policies 23
ABOUT SUZLON
History of Suzlon……………………………………………………………… 25
Company Profile………………………………………………………………. 25
Vision and Corporate Philosophy…………………………………………… 27
Organisation Structure……………………………………………………….. 29
Suzlon‟s presence in India…………………………………………………… 33
Business Strategy …………………………………………………………….. 34
Market presence and Clients………………………………………………… 37
End- to- End Wind Energy Solution Provider in India…………………….. 39
Suzlon‟s Market Share (Worldwide)………………………………………… 39
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5. Product Profile………………………………………………………………… 40
Suzlon Today............................................................................................ 41
Current Market share in Asia……………………………………………….. 42
THE BASICS OF WIND POWER TECHNOLOGY
General Diagram of Wind Energy Mechanism…………………………….. 44
Wind Parks: Concept…………………………………………………………. 45
INTRODUCTION TO THE PROJECT
Objective……………………………………………………………………….. 46
Research Methodology………………………………………………………. 46
Research Design Steps……………………………………………………… 48
List of Companies Surveyed………………………………………………… 50
Analysis of Survey……………………………………………………………..52
Findings and Recommendations from Survey…………………………….. 61
Limitations of Research………………………………………………………. 63
CASE STUDY OF POWER SAVING
Case Facts and Objectives…………………………………………………...65
Forecasting……………………………………………………………………..67
Conclusions…………………………………………………………………....70
ATTACHMENTS……………………………………………………………… 71
REFERENCES………………………………………………………………... 72
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6. ABSTRACT OF WORK DONE FOR PROJECT
The project on which I have worked is of marketing research. I am giving an
abstract of the work which I have done for the completion of the project.
It is as follows:
1. I have done a detailed Study about the industry, company, its structure, market
in which it is operating, products of the company, its competitors and also the
issues at the industry level.
2. I have prepared research design steps.
3. I have prepared questionnaire for doing survey in companies.
4. I have prepared the list of companies for carrying out survey.
5. I have done survey in 31 Companies in my project.
6. I have analysed the survey for finding out the conclusions of the research.
7. I have done a case study on the growth of power consumption and power cost
for the next five years for pharmaceutical industry in Ahmedabad.
This work done is explained in the later part of the report in the description part.
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7. INTRODUCTION
The project on which I had worked was based on Marketing Research. In my
project, I will have to find out and study the power consumption pattern for
pharmaceutical companies coming under Special Economic Zones in
Ahmedabad and nearby areas. For that, I had prepared a questionnaire for
companies and I had to do a survey in those companies that I have selected for
research. Main objective of the project is to find out the average annual power
consumption in kWh and then calculate average annual power cost for the
companies. After that I will have to analyse those companies which can become
potential customers for Suzlon Energy Limited. This can be done by comparing
their present power cost with the cost incurred if they use wind energy as a
source of power for their operations and hence estimating their annual savings.
The main objective of my project is to find out the companies which can become
potential customers for Suzlon Energy Limited at present and also the companies
which can become future prospects of business for the organization. This can be
done on the basis of the size of the company, turnover, annual power usage rate
and its investment capacity. This is the value which I will add to the organization
for expansion of the business.
The methodology for doing the project is marketing research. In that, the
research methodology which is been used is personal questionnaire followed by
structured observation. I had approached to respective companies for the
research and then gathered the data required. After that, I had analysed the data
into useful information profitable for the company and customer both.
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8. DESCRIPTION
WIND POWER INDUSTRY AT A GLANCE
The first wind-powered electricity was produced by a machine built by Charles F.
Brush in Cleveland, Ohio in 1888. It had a rated power of 12 kW (direct current -
dc). Direct current electricity production continued in the form of small-scale,
stand-alone (not connected to a grid) systems until the 1930's when the first large
scale AC turbine was constructed in the USA. There was then a general lull in
interest until the 1970's when the fuel crises sparked a revival in research and
development work in North America (USA and Canada) and Europe (Denmark,
Germany, The Netherlands, Spain, Sweden and the UK). Modern wind turbine
generators are highly sophisticated machines, taking full advantage of state-of
the-art technology, led by improvements in aerodynamic and structural design,
materials technology and mechanical, electrical and control engineering and
capable of producing several megawatts of electricity. During the 1980's installed
capacity costs dropped considerably and wind power has become an
economically attractive option for commercial electricity generation. Large wind
farms or wind power stations have become a common sight in many western
countries. In 2001 Denmark alone had 2000 Megawatts of electricity generating
capacity from more than 5,700 wind turbines, representing 14% of their national
electricity consumption.
The wind, one of nature‟s most abundant resources, is a form of solar energy. It
is renewable, non-polluting, universally available, and when used as fuel, free. In
short, wind is a stream of moving air molecules circulated by the sun‟s unequal
heating of the earth‟s surface (Nar John, The New Wind Power, Middlesex, 1982,
p33). The author goes on to define the great „power‟ of the wind. The power in
the wind is the sum total of all the moving molecules of air, and according to the
law of fluid dynamics, is proportional to the speed of the wind. The amount of air
in constant circulation around the earth is estimated to be 5 quadrillion tonnes. If
we could extract 10% of the global energy potential of the wind, we would
comfortably meet the world‟s energy requirements from that source alone.
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9. Wind power installation is the latest mantra in Maharashtra‟s endeavour to
improve the power generation scenario. The Maharashtra government, which
has many firsts to its credit in the infrastructure sector, is keen to make a mark in
the development of unconventional energy. As of now, the state is lagging far
behind Gujarat and Tamil Nadu, which have an installed capacity of 168.405 MW
and 75.970 MW capacities, respectively, in this form of energy. There are 21
sites for wind farm projects in Maharashtra. In Satara, the projects are to the tune
of 72.615 MW, with a total investment of Rs 3500 millions (The Observer of
Business and Politics, 3 July 2000).
The Rajasthan government is trying to tap the potential of the desert and harness
wind energy to tackle the state‟s power problems. In the next three years, the
state government expects to attract investment of Rs 5000 millions in the private
sector for the generation of 100 MW of electricity from wind energy. It has
already received 10 proposals for producing 236 MW of power.
Wind energy is one of the clean, renewable energy sources that hold out the
promise of meeting a significant portion of energy demand in the direct, grid-
connected modes as well as stand-alone and remote „niche‟ applications (water
pumping, desalination, and telecommunications) in developing countries like
India. It is estimated that wind power in many countries is already competitive
with fossil power (capital cost, 40 million rupees per MW) when external/ social
costs are also accounted for. International organizations estimate that wind
power will become competitive in a short time frame (2008/2013)) with both fossil
and nuclear in a narrow economic sense, without taking into account its
competitive advance in external or social costs. Two perspectives form the
economics of grid-connected wind power. The first is that of public authorities or
energy planners, making assignments of different energy sources. Here the
focus is on levelled cost in, for example, Rs/kWh. Such calculations do not
include factors determined by society or governments, such as inflation or
taxation. The second perspective is that of the private or utility investor, where
inflation, interest rates, the taxation system, amortization period, etc. must be
included. Consequently, the economics of wind energy differs greatly from
country to country. Here the focus is on cash flow in each project, on payback
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10. time, and present value of the investment. The generation cost from wind energy
is then basically determined by the following parameters: total investment cost,
which comprises cost of wind turbines, project preparation costs, and cost of the
infrastructure; operation and maintenance cost; average wind speed at the
particular site; availability; technical lifetime; amortization period; and real interest
rate.
By the end of March 2010, over 10, 181.93 MW of grid-connected wind farms
were operational. The current optimism with regard to wind power generation
owes itself largely to the demonstration effect of such wind farms. These initial
concerted efforts/actions were supported by multilateral and bilateral funding
agencies, particularly DANIDA (Danish International Development Cooperation
Agency).
India is sitting on huge wind power potential, estimated at 45 000 MW, which can
be developed only by a „performance-driven‟ long-term wind power policy, say
energy experts. Currently, investments in wind power in the country are
incentive-driven. Many corporate houses, including DLF Group, IPCL (Indian
Petro Chemicals Ltd), MSPL, TATA Group and GACL etc. have availed
themselves of fiscal incentives and set up wind power plants. The total wind
power capacity installed in the country is estimated at 10182 MW (as on 31
March 2009). The largest installed capacity, 1350 MW, is in Maharashtra.
Investments in wind power are being provided with a benefit of up to 80%
depreciation.
The wind power program in India was initiated towards the end of the sixth plan,
in 83-84. A market-oriented strategy was adopted from inception, which has led
to the successful commercial development of the technology. The broad base
program includes wind resources assessment activities, research and
development support, implementation of demonstration projects, development of
infrastructure capability and capacity for manufacture, installation, operation and
maintenance of wind turbine generators, and policies support. Through scientific
assessment of wind source throughout the country, along with multi dimensional
and systematic approach, wind power has emerged as viable and cost effective
option for grid.
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11. WIND POWER DEVELOPMENT IN INDIA
INTRODUCTION
Energy is a major input for overall socio-economic development. Use of fossil is
expected to boost the economic development process of a majority of the world
population during the next two decades. By the period 2020-2050, fossil fuels are
likely to reach their maximum potential and their price will become higher than
other renewable energy option on account of increasingly constrained production
and availability. Therefore, renewables are expected to play a key role in
accelerating development and sustainable growth in the second half of this
century, accounting for 50 to 60% of the total global energy supplies. Wind power
happens to be the fastest growing industry in the world with growth rate of about
20%. Today there are more than 122 GW of wind power generation capacity all
over the world and in India we have nearly 10, 182 MW of installed capacity.
India ranks 4th in terms of total installed capacity and third in the terms of current
market size. US with about 25 GW of wind power is the leading country followed
by the Germany (24 GW) and Spain (16.4 GW).
The wind power programme 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 commercial deployment; implementation of demonstration projects;
development of infrastructural capability, installation, operation and maintenance
of wind electric generators. An important role played by the Ministry has been
towards introduction of suitable fiscal and promotional incentives at the central
and state levels to encourage private investors and developers to take up
commercial projects.
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12. Wind Energy – Renewable Energy Source
Wind is the natural movement of air across the land or sea. Wind is caused by
uneven heating and cooling of the earth‟s surface and by the earth‟s rotation.
Land and water areas absorb and release different amount of heat received from
the sun. As warm air rises, cooler air rushes in to take its place, causing local
winds. The rotation of earth changes the direction of the flow of air.
Wind Resource Assessment
India has been endowed with vast wind resources. Onshore wind power potential
has been assessed at more than 45,000 MW assuming 1% of land availability for
wind power generation in ten potential states. However, technical potential is
limited to only 14,775 MW assuming 20% grid penetrations, which will go up with
the augmentation of grid capacity in the potential states.
Potential Exploited
A total wind power capacity of 10182 MW has been installed which is about 70%
of the installed capacity through conventional sources in the country.
Global Scenario
Over the last decade significant progress has been made in harnessing wind for
power generation in different parts of the world, particularly in the USA, Europe
and in India. The technical feasibility of using wind as a source of power
generation has now been established, and wind energy has emerged in the near
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13. term as the most promising renewable energy technology for generating
electricity. The growth in energy demand the limitations of supply and increasing
cost of fossil fuel generation and environmental concerns make wind power a
competitive option in countries which have a good wind resource base. Wind
power installation world-wide have crossed 122 GW. A total capacity of about
23180 MW has come up in Germany; 28060 MW in USA, 15860 MW in Spain,
12200 MW in China and in India it is 10242 MW and is now the fifth largest wind
power generator in the world.
Technological Development
The wind turbines installed so far in the country are predominantly of the fixed
pitch „stall‟ regulated design. However, the trend of recent installation is moving
towards better aerodynamic design; use of lighter and larger blades; higher
towers; direct drive; and, variable speed gearless operation using advanced
power electronics. Electronically operated wind turbines do not consume reactive
power, which is a favourable factor towards maintaining a good power factor in
the typically weak local grid networks.
Benefits of Wind Energy
 Reduce climate change and other environmental pollution.
 Diversifies energy supply, eliminates non renewable fuels, provides
circumvent against the price volatility of fossil fuels. Thereby provides energy
security and prevention of conflict over natural resources.
 One of the cheapest sources of electrical energy.
 Wind energy source is free, abundant and inexhaustible.
 Wind energy can be utilized as a replacement energy resource against
increasing power prices. The cost per kWh reduces over a period of time as
against rising cost for conventional power projects.
 Wind energy project is the fast track power project and also it has fastest
payback period.
 The project creates employment, regional growth and innovation.
 Operation and maintenance costs are low.
 The wind energy project has lowest gestation period and modular concept.
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14. There are few environmental advantages of wind energy
 Pollution free
 Permanent
 Conserves fossil fuel
 Improves grid quality and efficiency
 Extremely low gestation period
 Rural development
There are few limitations related to wind energy
 Wind machines must be located where strong, dependable winds are
available most of the time.
 Electricity from wind machines must have a back-up supply from another
source because wind does not flow every time strongly.
 As wind power is "intermittent," utility companies can use it for only part of
their total energy needs.
 Wind towers and turbine blades are subject to damage from high winds and
lighting. Rotating parts, which are located high off the ground can be difficult
and expensive to repair.
 Electricity produced by wind power sometimes fluctuates in voltage and power
factor, which can cause difficulties in linking its power to a utility system.
 The noise made by rotating wind machine blades can be annoying to nearby
neighbours.
Incentives to Wind Power Projects
The fiscal incentives extended by the Indian government to the wind energy
sector include:
• Direct taxes – 80% depreciation in the first year of installation of a project.
• Tax holiday for 10 years.
• CDM (Clean Development Mechanism) which gives CER‟s (Certified Emission
Reductions) as Carbon Credits.
• FDI (Foreign direct investments) is cleared very fast.
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15. Setting Up a Wind Energy Project
Following procedural steps shall be useful guideline to examine whether the
project proposal is viable both in technical and financial terms, as also ensure
trouble-free implementation.
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16. Distribution of wind energy
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17. WIND POWER DENSITY IN INDIA
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18. INDIAN PHARMCACEUTICAL INDUSTRY
The Indian Pharmaceutical Industry today is in the front rank of India‟s science-
based industries with wide ranging capabilities in the complex field of drug
manufacture and technology. A highly organized sector, the Indian
Pharmaceutical Industry is estimated to be worth $ 4.5 billion, growing at about 9
to 10 per cent annually. It ranks very high in the third world, in terms of
technology, quality and range of medicines manufactured. From simple headache
pills to sophisticated antibiotics and complex cardiac compounds, almost every
type of medicine is now made indigenously.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading
250 pharmaceutical companies control 70% of the market with market leader
holding nearly 7% of the market share. It is an extremely fragmented market with
severe price competition and government price control.
The pharmaceutical industry in India meets around 70% of the country's demand
for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,
tablets, capsules, orals and injectable. There are about 250 large units and about
8000 Small Scale Units, which form the core of the pharmaceutical industry in
India (including 5 Central Public Sector Units). These units produce the complete
range of pharmaceutical formulations, i.e., medicines ready for consumption by
patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and
used for production of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for
most of the drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug Control
Authority. Technologically strong and totally self-reliant, the pharmaceutical
industry in India has low costs of production, low R&D costs, innovative scientific
manpower, strength of national laboratories and an increasing balance of trade.
India is the third largest producer of pharmaceuticals, according to Srikant Kumar
Jena, the Minister of State for Chemicals and Fertilizers, Government of India.
India has the share of 10% in the total pharmaceutical volume produced across
the world. But in term of value India pharmaceutical industry stands at 14th
position with mere 1.5% of the total global share. It is expected that
pharmaceutical manufacturing opportunities in India will be at US$ 18 to 20
billion.
Position of India Pharmaceutical Industry
 In terms of volume - 3rd
 In terms of value - 14th
 In terms of generic production - 4th
 In terms of export value - 17th
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19. There has been seen immense growth related to infrastructure, technology and
this has led to the Indian pharmaceutical industry to become an industry that has
total worth above Rs. 1,00,000 Crores (US $ 2 billion). Also according to the
Mckinsey and Company's report pharmaceutical industry in India will touch USD
40 billion by 2015 that at present is USD $ 20 billion. Also the contract
manufacturing business will see 25% growth so from US $ 4 billion in 2007 it will
reach to US $ 10 billion in 2015. Along with this the contract manufacturing
opportunity for India will reach to US$ 18 to 20 billion.
Due to the presence of low cost manufacturing facilities, educated and skilled
manpower and cheap labour force among others, the industry is set to scale new
heights in the fields of production, development, manufacturing and research. In
2008, the domestic pharmacy market in India was expected to be US$ 10.76
billion and this is likely to increase at a compound annual growth rate of 9.9 per
cent until 2010 and subsequently at 9.5 - 10 per cent till the year 2015.
Industry Trends
- The pharmaceutical industry generally grows at about 1.5-1.6 times the
Gross Domestic Product growth.
- Globally, India ranks third in terms of manufacturing pharmacy products by
volume.
- The Indian pharmaceutical industry is expected to grow at a rate of 9.9 %
till 2010 and after that 9.5 -10% till 2015 (Source: ORG IMS).
- In 2007-08, India exported drugs worth US$7.2 billion in to the US and
Europe followed by Central and Eastern Europe, Africa and Latin America.
- The Indian vaccine market which was worth US$665 million in 2007-08 is
growing at a rate of more than 20%.
- The retail pharmaceutical market in India is expected to cross US$ 12-13
billion by 2012.
- The Indian drug and pharmaceuticals segment received foreign direct
investment to the tune of US$ 1.43 billion from April 2000 to December
2008.
- In the year 2009-10 the BSE health care index has gone up by 70%.
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20. Future Scenario
With several companies slated to make investments in India, the future scenario
of the pharmaceutical industry in looks pretty promising. The country's
pharmaceutical industry has tremendous potential of growth considering all the
projects that are in the pipeline. Some of the future initiatives are:
 According to a study by FICCI-Ernst & Young India will open a probable
US$ 8 billion market for MNCs selling expensive drugs by 2015
 The study also says that the domestic pharma market is likely to reach
US$ 20 billion by 2015
 The Minister of Commerce estimates that US$ 6.31 billion will be invested
in the domestic pharmaceutical sector
 Public spending on healthcare is likely to raise from 7 per cent of GDP in
2007 to 13 per cent of GDP by 2015
 Dr Reddy's Laboratories has tied up with GlaxoSmithKline to develop and
market generics and formulations in upcoming markets overseas
 Lupin, a Mumbai based pharmaceutical company is looking to tap
opportunities of about US$ 200 million in the US oral contraceptives
market
 Due to the low cost of R&D, the Indian pharmaceutical off-shoring industry
is designated to turn out to be a US$ 2.5 billion opportunity by 2012.
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21. SEZ
(Special Economic Zones)
 India was one of the first in Asia to recognize the effectiveness of the
Export Processing Zone (EPZ) model in promoting exports, with Asia's first
EPZ set up in Kandla in 1965. With a view to overcome the shortcomings
experienced on account of the multiplicity of controls and clearances;
absence of world-class infrastructure, and an unstable fiscal regime and
with a view to attract larger foreign investments in India, the Special
Economic Zones (SEZs) Policy was announced in April 2000.
 This policy intended to make SEZs an engine for economic growth
supported by quality infrastructure complemented by an attractive fiscal
package, both at the Centre and the State level, with the minimum
possible regulations. SEZs in India functioned from 1.11.2000 to
09.02.2006 under the provisions of the Foreign Trade Policy and fiscal
incentives were made effective through the provisions of relevant statutes.
WHAT IS SEZ?
 Special Economic Zone (SEZ) is a specifically delineated duty free
enclave and shall be deemed to be foreign territory for the purpose of
trade operation and duties and tariffs.
WHO CAN SET UP SEZ?
Central Foreign
Government Company
State Private &
Government Public
Company
Jointly by any
of the above
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22. TYPES OF SEZ’s
1. Free trading and warehousing zones
The objective of such zone is to create trade related infrastructure to
facilitate import and export and import of goods and services with freedom
to carry out trade transactions in free currency.
2. SEZ for Multi product manufacturing
Here units may be set up for manufacture of two or more goods in a
sector or goods falling in two or more sectors or for trading and
warehousing or rendering of two or more services in a sector.
3. SEZ for Sector specific
It is exclusively for one or more products in a sector or one or more
services in a sector.
4. SEZ in Port or Airport
The incentives and facilities offered to the units in SEZs for attracting
investments into the SEZs, including foreign investment include:-
 Duty free import/domestic procurement of goods for development,
operation and maintenance of SEZ units.
 100% Income Tax exemption on export income for SEZ units under
Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years
thereafter and 50% of the ploughed back export profit for next 5 years.
 Exemption from minimum alternate tax under section 115JB of the Income
Tax Act.
 External commercial borrowing by SEZ units‟ up to US $ 500 million in a
year without any maturity restriction through recognized banking channels.
 Exemption from Central Sales Tax on the sale or purchase of goods,
provided that, the goods are meant for undertaking authorized operations.
 Exemption from Central Excise duty on the procurement of capital goods,
raw material and consumable spares, etc. from the domestic market.
 Exemption from Service Tax.
 Single window clearance for Central and State level approvals.
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23.  Exemption from State sales tax and other levies as extended by the
respective State Governments.
 Since SEZ units are considered as „public utility services‟, no strikes would
be allowed in such companies without giving the employer 6 weeks prior
notice in addition to the other conditions mentioned in the Industrial
Disputes Act, 1947.
 Enhanced limit of Rs. 2.40 Crores per annum allowed for managerial
remuneration.
GUJARAT STATE SEZ POLICIES
 The Government of Gujarat has issued a set of policies under the
Government of India for the special economic zone in Gujarat in terms of
infrastructural development for an augmented export production.
 The special economic zones in Gujarat can be set up either in public
sector, or private sector, or in the collaboration unit of both private and
public sector.
 The special economic zones in Gujarat are considered to be foreign
territory in terms of duty and trading operations.
 SEZ in Gujarat has been planned with the aim bring in large dividends to
the state that will lead to an accretion in the industrial development as well
as generate new job opportunities.
 The state government has converted the two free trade zones, which are
known as Kandla Free Trade Zone and Surat Export Processing Zone into
special economic zones and these already existed from before.
 A number of incentives and facilities have been offered by the Central
Government both to the Gujarat SEZ developers and the industrial units
that are about to be established in the special economic zone of the state.
Various units are being permitted for setting up in the Gujarat special
economic zone. These units include manufacturing, trading or service
activities. The Development Commissioner approves the proposals put
forth for the setting up of these units in the SEZ. The State Government
set the incentives and facilities to be offered by the SEZs in Gujarat
through the units.
 The Development Commissioner of the Gujarat special economic zone
plays a crucial role in granting permission for single window clearance for
the proposed units in the SEZ of the state that will effectively provide a
hassle-free environment in the special economic zone.
 The single window clearance will be effective in registration of the unit,
allotment of land, license for construction of building and approval of
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24. building plan, power connection, clearance on environmental issues, water
requirement, and etc.
 An uninterrupted power supply will be ensured to the units in Gujarat SEZ
by the SEZ authority. The Gujarat Pollution Control Board handles all the
applications required for site clearance, NOC, consent orders, and other
clearances within the special economic zone and are applied according to
the necessary acts.
 The development commissioner is also responsible for the labor unit and
acts as the labour commissioner for the units in SEZ under Government of
Gujarat. Gujarat special economic zone is absolutely tax-free and all the
units that are to be set up in the zone will be exempted from all sorts of
taxes such as sales tax, VAT, motor spirit tax, luxury tax and
entertainment tax, purchase tax, and so on.
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25. About SUZLON
History of Suzlon
The history of Suzlon Group is rooted in Saurashtra where the first seeds of its
inception in 1984 were sown. It is a family run business under the visionary
statesmanship of its Chairman Shri Tulsi R. Tanti. Suzlon made its initial foray in
the textile sector under the brand name – Suzlon Fibres. In the year 1995 Suzlon
Fibres decided to diversify in the field of Wind Energy, which led to the formation
of Suzlon Energy Limited. This bold entrepreneurial step was a watershed in the
history of Suzlon and soon Suzlon was poised to catapult in a big way. However,
many in the industry were initially sceptical of Suzlon‟s entry as the contemporary
wind energy industry was dominated chiefly by European based companies. This
did not deter Suzlon as it was head strong in making India self reliant in this
nascent sector. Suzlon Energy Limited installed its first ever Wind turbine in
Gujarat state for Indian Petrochemicals Corporation Ltd. (IPCL) and since then it
has never looked back.
Suzlon energy is Asia‟s strongest growing fully integrated wind power company
and ranks amongst the top ten in the world. Suzlon integrates consultancy,
design, manufacturing, operation and maintenance services to provide customers
with power solution. Suzlon is one of the fastest growing wind energy companies
in the world.
Company Profile
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
At a Glance
Founded : 1995
Headquarters : Pune, India
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26. Presence : 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
Belgium, Denmark, Germany, India, The
R&D :
Netherlands
Product Portfolio: S88-2.1 MW, S82-1.5 MW, S66-1.25 MW, S64-1.25 MW,
S52-600 kW
Market Share : 9.8% of the world wind energy market, 3rd largest wind
power supplier*
Employees : 14000+ [23 nationalities]
Listing : BSE and NSE (India), part of S&P CNX Nifty Index.
Source:-*BTM Consult ApS March 2010
Goals that company strive for:
 Dedication to serve the humankind with sustainable wind power on
commercial scale.
 Focus on continuously increase efficiency and reliability of the wind
turbines.
 Commitment to a life-long relationship with customers.
 Exceed the quality and safety standards of the industry.
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27.  Building partnerships with all stakeholders; employees, customers,
vendors, service providers, local communities and governments.
 Conduct the business with the highest standards of ethics.
Vision
VALUES
 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
CORPORATE PHILOSOPHY
Suzlon has been the epitome of continual improvement on all fronts. Suzlon
stands by its corporate philosophy:
“WE ARE BECAUSE WE INNOVATE”
At suzlon, innovation is intrinsic. It is what drives the company. It is their mantra,
their stimulus for growth. Quite simply, we are, because we innovate. Innovation
at suzlon is not limited merely to product innovation. To them, to be innovative is
to:
 Be creative enough to live with changes that time brings.
 Come to terms with dynamic market realities.
 To sustain calculated risks.
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28.  To integrate the company and its people into wholesomeness and to be
competitive enough to bridge the past, present and future with a common
thread.
 Serve humankind with sustainable wind power on a commercial scale.
 Work towards total customer satisfaction.
 Build partnerships with all stakeholders: employees, customers, vendors,
service providers, local communities and Governments.
 Exceed the quality, safety and environmental standards of the industry.
 Build life-long relationship with customers.
 Conduct business with the highest standards of ethics.
Genesis & Growth
The seeds of Suzlon were sown by Mr Tulsi R. Tanti‟s venture into the textile
industry. Faced with soaring power costs and the infrequent availability of power,
he looked to wind energy as an alternative. Beginning with a wind farm project in
the Indian state of Gujarat in 1995, with a capacity of just 3 MW - he set forth to
acquire the basic technology and varied expertise to set up Suzlon Energy
Limited - India’s first home-grown wind technology company.
By the end of 2009, Suzlon:
 Supplied over 8,000 MW across the world
 Registering 100% growth rate year on year
 Was ranked the 3rd leading wind power equipment* manufacturer
 Earned a global market share of 9.8 %*
 Maintained market leadership in Asia
 Suzlon installed over 4800 MW of wind turbine capacity, acquired over
50% market share (YOY) and reigned as the market leader consecutively
for the last 11years.
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29. ORGANISATION STRUCTURE
Suzlon is a leading wind power products and services company with a global
footprint. The primary principle shaping the organisation‟s 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.
This apex body comprises the following:
Tulsi R. Tanti- CMD
Girish R. Tanti- Executive Director
Ashish Dhavan- Independent Director
V. Raghuraman- Independent Director
Pradip Kumar Khaitan- Independent Director
Ajay Relan- Independent Director
Functional Structure
Suzlon is organized, by function, into the 4 broad areas listed
alongside.
 Corporate Services

 Manufacturing

 Business Units
 Research & Development
Corporate Services
Based in Pune, India, the Corporate Office seeks to maintain and enhance
Suzlon‟s 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:
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30.  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, and 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 sale.
Additionally, the Company is establishing Forging facilities of 70,000 MT and
Foundry facilities of 120,000 MT. These have commenced 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.
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31. Alliances & Acquisitions
Suzlon‟s 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:
o that complement its key strengths
o are synergistic with its operations
o 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 employee strength of 1,150.
Acquisition Rationale
 Complementary geographical presence
 Complementary product portfolio
 Complementary supply chain strategies
 Repower‟s off-shore leadership
Transaction Overview
 Suzlon through its subsidiaries purchased 33.85% stake for a
consideration of approximately Euro 453 million on June 6, 2007
 Agreement with Martifer for its approximate 23.08% stake with acquisition
cost payable only after May, 2009
 Agreement with Areva for its approximate 30.17% stake with acquisition
cost payable only after May, 2008
 The deal was partially financed in tranches with loan repayment upto 7
years, which got partly refinanced through convertible bonds issue and
follow-on equity offering proceeds
 Suzlon was awarded the Euro money - Ernst & Young global renewable
energy award for 'M&A of the Year' for the successful acquisition of a
stake in Repower.
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32. Hansen Transmissions
In May 2006, Suzlon completed the acquisition of Hansen Transmissions
International NV, Belgium, the world‟s 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.
Transaction Overview
 Suzlon acquired Hansen Transmissions in 2006
 Hansen Transmissions went in for a public listing in Dec 2007
 Major capacity expansion in Belgium, China & India
 10% private placement in January 2009.
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33. SUZLON’S PRESENCE IN INDIA
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34. BUSINESS STRATEGY
BUSINESS STRATEGY
They seek to further enhance their position' in India as a provider of integrated
wind energy solutions and to expand their markets globally. They intend to
accomplish this through:
• Expanding their WTG product line and improving existing models.
They intend to leverage the WTG design and development capabilities that they
have developed through their research and development subsidiaries to enhance
their existing WTG models and develop new models, particularly in the MW and
multi-MW class. They intend to focus on the development and construction of a
gearless 1.25 MW WTG and WTGs with 1.50 MW and 2.10 MW capacity as well
as improved control systems for their current WTG models.
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35. • Integrating manufacturing facilities.
They have developed and implemented a backward integration strategy that
allows them to manufacture rotor blades in-house. In March 2005 they began in-
house manufacture of tubular towers through their 75% owned subsidiary,
Suzlon Structures. They are also in the process of establishing in-house
manufacturing capabilities for generators through their 74.9% owned subsidiary,
Suzlon Generators. They believe that increasing their in-house manufacturing
capabilities will allow them to lower WTG manufacturing costs, give them greater
control over the supply chain for key WTG components and enable quicker and
more efficient assembly and delivery of WTG components to their customers.
• Improving the cost-efficiency of generating power from wind
energy.
They aim to improve the cost-efficiency of power generation from wind energy
by reducing the cost of generating electricity per kWh from their WTGs. They
plan to achieve this goal by focusing on designing and developing more
advanced WTGs, identifying sites which offer wind conditions that are optimal
for WTG installations, reducing manufacturing and infrastructure costs, and by
decreasing ongoing operating costs for their customers.
• Maintaining their strategic focus on the Indian market.
They believe that India is and will continue to be an important growth market for
wind power. They intend to continue to focus on growing their India business by
leveraging their status as the leading WTG manufacturer in India and by
continuing to develop, with their Associate Companies, large-scale wind farm
projects. They will also continue to utilize the experience and expertise gained in
their India operations to win and execute orders from international customers.
• Expanding their presence in international growth markets.
In order to increase their share of the world market for renewable energy, they
plan to continue to grow their overseas operations. They consider their key
international market to be : North America, in particular the United States, which
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36. has many sites that offer wind conditions that are optimal for WTGs and also
offer tax incentives for power generated by WTGs; China, where the level of
demand for energy is high and where the government is encouraging the
development of renewable energy sources; and Australia, which also has sites
with optimal wind conditions and where the government has declared that it
intends to encourage a sustainable and internationally competitive renewable
energy industry. They may also establish a presence in markets in Europe.
• Expanding manufacturing Capacity.
They are in the process of constructing additional manufacturing facilities in India
for key WTG components and they expect these facilities to be located close to
markets with growing demand for power generated by wind energy. Some of
these facilities may be located in geographies that will allow them to take
advantage of the fiscal incentives. In furtherance of their goal of expanding their
international presence, they are planning to establish an integrated WTG
manufacturing facility in China, thereby giving them manufacturing facilities in a
key growth market with low costs for inputs and components. They are also
evaluating the construction of rotor blade and tubular tower manufacturing
facilities in the United States, in order to meet increasing demand for wind energy
projects in certain regions of North America. This will reduce costs associated
with the transportation and delivery of these key, but quite large, WTG
components.
• Growing their business through strategic acquisitions and alliances.
They will evaluate on a case by case basis potential acquisition targets and
alliance partners that offer an opportunity to grow their business and/or expand
their capabilities or geographical reach. They intend to only pursue those
transactions that complement their key strengths, are synergistic and, in their
assessment, have manageable integration risks.
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37. STRONG HOME MARKET PRESENCE
CLIENTS AND PROJECTS
In a short span of 13 years, Suzlon has become the world‟s 3rd largest wind
turbine manufacturer in the world, Suzlon Market share (Combined with
Repower) rose to 9.8% thereby making Suzlon 3rd * largest wind turbine
manufacturer in the world. Our wind turbine generators (WTGs) are customized
to local geographies, wind regimes and needs, for installation in a variety of
climates ranging from hot, dry deserts, to humid coasts and near-freezing plains.
With a range of WTGs, ranging in capacity from 600 kW to 2.1 MW, we have
successfully set up projects in some of the most essential wind sites in the world.
Suzlon has set up of prestigious wind farm projects such as:
Hallet Wind Farms in Australia, John Deere in the USA, Penamacor in Portugal,
Weihai in China and many more in different parts around the world. Some of our
major clients include AGL Energy Ltd., Trust Power Ltd., Tecneira, Servtec, DLF
Group, Reliance Group, Aditya Birla Group, Tata Group, British Petroleum,
MSPL, and John Deere Wind Energy & Distributed Wind Systems.
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38. COMPANY NAME CAPACITY (MW)
DLF Group 217.50
MSPL (Baldota Group) 133.75
Gujarat NRE Coke Group 87.50
Tata Group 86.15
Aditya Birla Group 75.00
Bajaj Group 68.00
GACL 62.75
RSMML 59.80
ONGC 51.00
Jaypee Group 49.00
ITC Limited 47.1
Ramco Group 46.60
Friends Group 46.00
Reliance Group 45.00
Ruchi Group 45.00
VRL Group 42.50
British Petroleum 40.00
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39. END-TO-END WIND ENERGY SOLUTIONS PROVIDER IN INDIA
SUZLON MARKET SHARE (WORLDWIDE)
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40. PRODUCT PROFILE
Wind turbines: Overview
At Suzlon, our ethos is “we are because we innovate.” This philosophy is our
unflinching commitment to continuously raise the bar to provide technologically
superior reliable and efficient wind turbines. Our product range, which includes
high-performance Wind Turbines of capacities from 600 KW to 2.1 MW, is replete
with such innovations which culminate in tangible benefits like:
 Higher efficiency
 Reduced stresses
 Better power quality
 Lower operating costs
 Higher reliability
 Better performance
 Increased safety
Product Range:
 600 KW
 1.25 MW
 1.5 MW
 2.1 MW
Technological Leaps
Suzlon is the only company to launch mega class Wind Turbine Generators in the
MEGAWATT range with micro pitching features in Asian markets. Suzlon initially
started with 270 kW Wind Turbine Generators and subsequently ventured into
launching technologically advanced higher capacity Wind Turbine Generators of
350 kW, 600 kW, 1000 kW, 1250 kW, 1500 kW and 2100 kW.
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41. Suzlon Today..
 Suzlon Energy Limited – Professionally managed large multinational & the
flagship company of the Suzlon Group - a name to reckon with, in the
Global Wind Energy Industry.
 Operations in USA, Germany, China, Holland, Australia, Denmark &
India.
 Subsidiaries in Germany & Netherlands exclusively for R&D in technology
development & Rotor blade moulding and tooling respectively.
 First exports to the U.S in Oct 2002 - reversing the technology flow to a
developed country - a feat “par excellence” especially in light of Western
dominance of this sector.
 Start of this millennium - SUZLON captures the largest market share in
the growing Asian markets and featured amongst the top ten in the world.
 Recognized and awarded by “World Wind Energy Association, Germany”
for outstanding contribution in the field of Wind Energy worldwide.
 Market leader in India for the past consecutive Ten years with
installations in Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra,
Gujarat, Rajasthan & Madhya Pradesh.
 Spread over some twenty odd sites having dedicated Infrastructure &
O&M backup.
 Pioneered the concept of large wind parks in Asia, including the world's
largest wind park - one of its kinds with capacity of over 750 MW in
Gujarat.
 First company in India to launch the Megawatt & Multi-megawatt class
turbine.
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42. CURRENT MARKET SHARE IN ASIA
The start of this millennium saw SUZLON capture the largest market share in the
growing Asian markets and featured the top five in the world.
On the domestic front Suzlon has been a market leader for the past consecutive
six years with installations in Andhra Pradesh, Karnataka, Tamil Nadu,
Maharashtra, Gujarat & Rajasthan. These are spread over some twenty odd sites
having dedicated infrastructure & O&M backup.
GRAPH
veatas NEPC. GE wind
Gamesa Enercon Suzlon
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43. THE BASICS OF WIND POWER TECHNOLOGY
Wind electric generator (WEG) is ingeniously devised to convert Kinetic energy
from the „air in motion‟ directly into electricity without using conventional sources
like coal, oil or natural gas for power generation.
Major components
1) A set of turbine blades mounted on
2) A metallic hub to seize power from the up-stream wind. This in turn drives.
3) The generator to produce electric power. The generator along with its
associated components is housed in a common enclosure, c2alled the
nacelle.
4) The tower, for better reach too un-obstructed wind. The power captured
by the turbine blades is transferred to the generator through.
5) The drive train. Since in most of the WEGs, the rotor moves at a fixed
rpm (revolution per minute)
6) A gearbox is included in the drive train, which increases the speed at the
generator end of the shaft. There are however a few design options where
the rotor speed is either variable or the generator is direct drive. The latter
use of gearbox redundant
7) A mechanical brake disc is mounted on
8) The shaft to work as back-up for aero-dynamic braking system attached
to the blades.
9) A yaw mechanism turns the nacelle and the rotor assembly to face the
wind as it changes its direction.
10) A wind vane which is mounted on the top of the nacelle along with
11) An anemometer also mounted on the top to monitor wind speed.
12) The control panel placed at/close to the tower.
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44. General Diagram of Wind Energy Mechanism
Simply stated, a wind turbine works the opposite of a fan. Instead of using
electricity to make wind, a turbine uses wind to make electricity.
The wind turns the blades, which spin a shaft, which connects to a generator and
makes electricity the electricity is sent through transmission and distribution lines
to a substation, then on to homes, business and schools. Here Yawing and
pitching mechanism are used to utilize maximum amount of wind so that wind mill
can produce more power.
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45. Wind Parks: Concept
Suzlon wind park is an innovative concept that develops a wind-farm with all
necessary infrastructure, including land, civil work, electrical work, wind turbines,
transmission lines, approach roads, etc. coupled with financial assistance for the
third party. This concept provides investors with extensive infrastructure born of
collective design at shared costs while giving wind farm ownership in a wind park.
The investor can claim all incentives as well as utilize the power generated by the
wind park, in a way found to be most economically suitable. This concept
provides investors with extensive infrastructure born of collective design at
shared costs while giving wind farm ownership in a large wind park.
Asia’s biggest Wind park in Gujarat developed by Suzlon
Wind park advantages
Each wind turbine set up under the Suzlon wind park gains from several
economies of scale:
 An efficient wind farm design executed at a carefully chosen windy site.
 Extensive infrastructure born of collective design.
 Minimized power transmission losses.
 Increased array efficiency leading to optimize power generation.
 Adequate flow of wind available to all wind turbines.
 Project execution under the coveted ISO 9001:2000 quality requirements.
 24-hour on-site monitoring & control
 Increased return on investment
 Coordinated dispatch management with transmission operator.
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46. INTRODUCTION TO THE PROJECT
OBJECTIVE
To find out the scope and awareness of Wind Energy in Pharmaceutical Industry in
Ahmedabad City.
Some of the other important objectives of the study:
 To find out power consumption patterns of the companies and hence
industry and forecast their needs with reduced cost and maximum savings.
 To study how wind power is useful in saving power cost.
 To make an appropriate sample of companies that can become business
prospects.
In the research companies are mostly taken from SEZ‟s (Special Economic Zones) in
Ahmedabad because of exemptions and benefits available to them.
RESEARCH METHODOLOGY
RESEARCH DESIGN
The research design is of the type.
EXPLORATORY RESEARCH
Power cost (Rs.)
MW*1000= KW
KW*24*365=KWH
KWH*5.0=Cost in Rs. (for Torrent Power)
KWH*5.50= Cost in Rs. (for GEB)
This result will be useful to forecast the increment in power consumption in next
five years. This project is also including comparison between wind turbine
generation power and other sources cost and then savingprofit margin is
showed in the analysis sheet.
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47. Detailed calculation sheet showing name of company, its area of business, its
scale, turnover, source of power, Annual power consumption and its cost is
enclosed for your ready reference.
Type of Sources of Data:
SOURCES OF DATA:
There are numerous possible sources of data, but of them two are the most
common used methods. These are:
1. Primary sources:
Primary data may be obtained from individuals and from organizations.
2. Secondary sources:
Secondary data refer to those for already gathered and available data.
There may be from books; periodicals published reports, data services and
computer data banks available on internet.
Here, the Sources of Data are BOTH.
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48. RESEARCH DESIGN STEPS
1. Research Title- What is the scope and awareness of Wind Energy in
Pharmaceutical Industry in Ahmedabad?
2. Research Objectives
 To find out power consumption patterns of the companies and
forecast their needs with reduced cost and maximum savings.
 To study how wind power is useful in saving power cost.
 To make an appropriate sample of companies that can become
business prospects for Suzlon Energy Limited.
3. Type of research- Exploratory Research.
The objective of exploratory research is to gather preliminary information
that will help define problems and suggest hypotheses.
After searching of approximate 50 companies from different
pharmaceutical magazines and internet I have filtered 31 companies
covering production of various pharmaceutical products.
The main criterion of my project is to workout the responses regarding
wind energy awareness and forecasting the power consumption patterns
with the help of current consumptions.
4. Research Tool- Questionnaire.
5. Method of Interviewing and Observation Technique-
Personal Questionnaire with Structured Observation.
6. Sampling –
Sample size is 31 and sampling is done on the basis of popularity, size
and location of the companies.
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49. 7. Sampling Frame-
Large scale, medium scale and small scale companies are selected for
carrying out research.
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50. LIST OF COMPANIES SURVEYED
SR. NO.
NAME OF COMPANY
1. COMPANY NAME
ZYDUS CADILA
2. DISHMAN PHARMA
3. TORRENT PHARMA
4. GREEN APPLE LIFESCIENCES
5. COREL PHARMA
6. LINCOLN PHARMA
7. HESTER BIOSCIENCES
8. UNISON PHARMACEUTICALS
9. VIEW LABORATORIES
10. SWATI CHEMICALS
11. SUNIJ PHARMA
12. PURO PHARMA LABORATORIES
13. N.K. PHARMA INDUSTRIES
14. ELITE PHARMACEUTICALS
15. DIAL PHARMACEUTICALS
16. ATLAS PHARMACHEM
17. SAGA LABORATORIES
18. ABARIS HEALTHCARE
19. TUTTSAN PHARMACEUTICALS
20. BILLICON PHARMACEUTICALS
21. COSMOS REMEDIES
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51. 22. FIVE STAR PHARMACEUTICALS
23. GUJARAT MEDICRAFT
24. HALEWOOD LABS
25. HONEST BIO- VET
26. LA PHARMACEUTICALS
27. MEDICO LABS
28. OSHO PHARMA
29. ORLEY LABS
30. PALAM PHARMACEUTICALS
31. SWISS PHARMA
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52. ANALYSIS OF SURVEY
Q. No. 1
What is the source of power in your organisation?
Frequency Table
AQ_1
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 1 23 74.2 74.2 74.2
2 8 25.8 25.8 100.0
Total 31 100.0 100.0
Chart
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53. Q. No. 2
What is the annual power consumption (kWh) of your organisation?
Frequency Table
AQ_2
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 1 19 61.3 61.3 61.3
2 5 16.1 16.1 77.4
3 4 12.9 12.9 90.3
5 3 9.7 9.7 100.0
Total 31 100.0 100.0
Chart
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54. Q. No. 3
Do you believe that current electricity charges will become high in future?
Frequency Table
AQ_3
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 19 61.3 61.3 61.3
2 12 38.7 38.7 100.0
Total 31 100.0 100.0
Chart
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55. Q. No. 4
Are you aware about wind energy which is cheaper source of power generation?
Frequency Table
AQ_4
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 28 90.3 90.3 90.3
2 3 9.7 9.7 100.0
Total 31 100.0 100.0
Chart
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56. Q. No. 5
Are you aware about benefits available to wind power projects?
Frequency Table
AQ_5
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 1 10 32.3 32.3 32.3
2 21 67.7 67.7 100.0
Total 31 100.0 100.0
Chart
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57. Q. No. 6
Are you aware about Suzlon Energy Limited?
Frequency Table
AQ_6
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 30 96.8 96.8 96.8
2 1 3.2 3.2 100.0
Total 31 100.0 100.0
Chart
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58. Q. No. 7
Would you like to have a presentation on wind power project?
Frequency Table
AQ_7
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 1 20 64.5 64.5 64.5
2 11 35.5 35.5 100.0
Total 31 100.0 100.0
Chart
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59. SCALE OF ORGANISATIONS IN WHICH SURVEY HAS DONE
Frequency Table
BQ_4
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 1 20 64.5 64.5 64.5
2 8 25.8 25.8 90.3
3 3 9.7 9.7 100.0
Total 31 100.0 100.0
Chart
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60. TURN OVER OF ORGANISATIONS IN WHICH SURVEY HAS DONE
Frequency Table
BQ_5
Cumulative Per
Frequency Per cent Valid Per cent cent
Valid 0 2 6.5 6.5 6.5
1 26 83.9 83.9 90.3
3 2 6.5 6.5 96.8
4 1 3.2 3.2 100.0
Total 31 100.0 100.0
Chart
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61. Findings and Recommendations from Pharmaceutical Industry
Survey
 It is found that 74 % companies are using Torrent Power as a source of
electricity and remaining 26 % are using GEB.
 Power Consumption Patterns
<5 lakhs- 61 %
6-10 lakhs- 16 %
11-15 lakhs- 13 %
16-20 lakhs- 0 %
Above 20 lakhs- 10 %
According to CONTRACT DEMAND RANGE companies having power
consumption of up to 30 lakhs kWh should go for 0.6 MW WTG.
Companies such as Torrent Pharmaceuticals, Dishman Pharmaceuticals
and Zydus Cadila which are having power consumption above 145 lakh
kWh should go for 1.5 MW or 2.1 MW WTG.
 It is found that almost 61 % companies agree that current electricity
charges will rise in future, 39 % said that they are partially agree about this
and no company have a view that charges will not rise in future.
 It is found that almost 90 % companies said they are aware of the fact that
wind energy is a cheaper source of power (wind is freely available) and 10
% refused (high investment and high interest).
 68% of the organizations are aware about benefits such as tax from wind
projects and remaining 32 % are not aware. So my suggestion is that
Suzlon should try to increase awareness about benefits from wind project.
This can be done by advertisements in business magazines and specially
designed brochure for tax benefits.
 97% of the organizations are aware about Suzlon Energy Limited.
 64.5 % of the companies said that they want presentation and brochure
from Suzlon and 35.5 % companies said they are not interested in such
kind of investment presently.
 In survey 64.5 % companies are small scale, 25.8 % are of medium scale
and remaining 9.7 % are large scale companies.
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62.  In survey 84 % companies have their turnover in the range 0- 500 Crores;
more precisely 0- 40 Crores, 7 % companies are in the rage 1001- 1500
Crores, 3 % are in 1501-2000 Crores and 6 % companies are not
interested in disclosing their turnover.
 Industry is also not aware about how the electricity can be set-off from
GEB or Torrent so they don‟t know that their units can be deducted from
electricity bill even if they have installed their wind mill at other site. So this
awareness is required.
 In survey one finding is that many companies are not aware that
pharmaceutical companies like Lincoln Pharmaceuticals, Intas
Pharmaceuticals, Makson Pharmaceuticals etc. has made investment in
Suzlon Wind Project. So Suzlon has to create awareness in Pharmaceutical
segment that companies from the same industry are also using Wind
Energy and getting benefits from it.
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63. LIMITATIONS OF RESEARCH
Study may feel constraint from following factors:
 Reluctance on the part of the respondents to provide exact details about
power consumption patterns.
 Limited coverage area for survey. It was restricted to the city of
Ahmedabad only.
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64. CASE STUDY
“Power Consumption Pattern and Forecasting for Pharmaceutical
Industry under SEZ‟s in Ahmedabad”.
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65. CASE STUDY OF POWER SAVING
CASE FACTS:
 Annual power consumption (in kWh) of pharmaceutical companies
surveyed is 9.27 Crores.
 Per unit rate of Torrent Power is Rs. 5.00
 Per unit rate of Suzlon Wind Energy is Rs. 1.40 (approx.)
 Growth in pharmaceutical industry is 9.5- 10 % per year.
 Growth in per unit electricity charges is Rs. 0.10 per year.
OBJECTIVES: Objective of the case study is to
 Forecast the growth in power consumption for the next five years of the
companies surveyed.
 Forecast the growth in annual power cost for the next five years of the
companies surveyed.
 Compare the cost incurred by Torrent Power and Suzlon Wind Energy
thus estimating annual savings.
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66. PHARMACEUTICAL COMPANIES OF AHMEDABAD CITY
Crores
Annual power consumption units (kWh) 9.273
As per Torrent Power (9.273*5.00) Rs. 46.36
AS per wind power (9.258*1.40) Rs. 12.98
Annual Saving (9.258*3.6) Rs. 33.38
ASSUMPTIONS
From the economic evaluation and past performances of pharmaceutical industry
we can expect that every year the industry will grow by 9.5- 10 %.
 This industrial growth will directly reflect on Power consumption and it will
increase by 10 - 12% every year.
 Each year the per unit electricity charges will increase by Rs. 0.10
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67. FORECASTING
From the above assumptions we can forecast that
Annual electricity consumption in units for next five years for
companies surveyed
Calculation Table
YEAR Particulars Total Units
2010 92730000 + 9273000 102003000
2011 102003000 + 10200300 112203300
2012 112203300 + 11220330 123423630
2013 123423630 + 12342363 135765993
2014 135765993+ 13576599.3 149342592.3
Graph
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68. Annual power cost in Rs. for next five years in Ahmedabad City for
the companies surveyed
Calculation Table
YEAR Particulars Total Amount (Rs.)
2010 102003000*5.00 510015000
2011 112203300*5.00 561016500
2012 123423630*5.00 617118150
2013 135765993*5.00 678829965
2014 149342592.3*5.00 746712961.5
Graph
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69. Comparison between the Torrent Power and Suzlon Energy
As per the forecasting for the next five years demand
Years Total Units Torrent Power Suzlon Your Savings
as Rs. 5.00/ Energy as (Rs.)
unit Rs.1.40/ unit
2010 102003000 510015000
142804200 367210800
2011 112203300 561016500
157084620 403931880
2012 123423630 617118150
172793082 444325068
2013 135765993 678829965
190072390.2 488757574.8
2014 149342592.3 746712961.5
209079629.2 537633332.3
GRAPH
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70. CONCLUSIONS
In the present competitive age, reduction in product cost is the prime aim of any
company. Power cost is also one of the factors in reducing the product cost. So
Suzlon Energy can offer wind power on the following grounds:
 Power cost is less as compare to Torrent power, GEB & other Electricity
providers.
 Due to less power cost, the product cost can be reduced that also
increases the profit level of the companies.
 Tax exemption for using the wind energy can also reduce financial burden.
 Usage of this product is also helpful in reducing pollution level that
indirectly help the society for clean, green and healthy environment.
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71. ATTACHMENTS
 Questionnaire used for Survey
 Findings of Surveys
 Coding and analysis datasheet in Ms-excel
 Coding datasheet in SPSS Statistics
 Survey Analysis datasheet in SPSS Statistics.
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72. REFERENCES
a) Indian Wind Power Directory- 2009.
b) www.suzlon.com
c) www.ireda.in
d) www.geda.org.in
e) www.expresspharmaonline.com
f) www.sezindia.nic.in
g) Business Research Methods- Cooper, Schindler.
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