36. Increase in prices of metals, which constitute primary raw materials for our engineering products, may adversely affect financial conditions.
37.
38. The global and domestic turbine user industries may slow down or saturate.
39. Technological obsolescence of our product range can lead to an erosion of our customer base and declining market share.
40. Increasing competitive pressures in turbine business - through reduced import duties, larger number of suppliers (mainly foreign) and substitute products - (drives replacing lower rating mechanical turbines.
41. Prospects for growth and capacity additions in user industry directly impacts prospects for turbines .
55. Research findings, Interview responses & strategies:- Q 1. Has your association articulated a vision for the association? A . Yes , updated last year. Q 2. Is the vision statement relevant to the association’s activities and mandate? A. yes, very relevant. Q 3. How does the organization manage linkages within the value chain system ? GM of each department alternately meets with the GM of the concerned department. Q 4. What is the core competencies within its different activities of value chain ? A. The core competency of triveni industries is that it is “pioneer in turbines manufacturing”. However, different departments are experts at their corresponding jobs. Ex. R & D – Engineering formulae and calculation ,Customer care :- Trouble shooting ,Mechanical & electrical – Design etc. Q5. How has it been in developing competitive advantage? A:- Through continuous innovation and accepting all new trends of turbine industry. Q 6. What are the resources that are helping to achieve the competitive advantage ? A:- Through T&D, employee satisfaction. 31). Does their exist any resource gap that must be filled in your belief and which needs investment to improve upon ? A:- For a time being no, but time to time decisions are taken Q 1. Has your association articulated a vision for the association? Yes .
56. Continued…. Q . Which approach is chosen for measuring organizational performance ? a) EVA approach b) Benchmarking c) ROCE d) Income approach e)Others Q. Has there been any structural change in the turbine industry which has affected your organization ? A:- Yes, when the concept of twisted blades had come into picture , to consistently be the market leader the company had to adopt the technology and for this had to change their entire setup which took around one year. Q. What strategies company has been following in recent years ? A :- Business level ( differentiation, and cost leadership) Q.Where according to you , you place your organization in this respective turbine industry ? a) Introduction b) Growth c) Maturity d) Decline Q. What growth strategies have been undertaken by the company in the past ? a) Market penetration b) Market expansion c) Diversification d) Product development Ans:- Market expansion in IRAQ, Diversification in Maharastra , the product was tapered blade turbines of 20 MW,Product development is also consistently done.
57. Continued…. Q. Has your organization executed any international strategies ? a) Export b) licensing ( had given to UK based company ALMSTOM in 1998, withdrew in 2004) c) franchisee d) Joint venture ( on 14th April 2010 ,with GE turbines) by 1st October we will adopt certain International strategies once this JV comes into force. Q. What is the role of the leader in your organization ? A:- To develop the business , meeting the vision and mission statement , concentrating on cherishing the decentralized innovation. Q. Has there been any challenging situation in the past where the role of the leader was quite directional ? A :- Yes, when the economy was seeing the financial downturn , more than 60% orders were pending. And the clients were saying to hold turbines for 6 months which was affecting our profitability. Then MR shawhney decided to do an agreement to them and asked them to produce bank guarantee then turbines were delivered. And on his own will he gifted one turbine to Mr Nawaz sharif who has sugar industries . Q. Has there been any corporate governance reforms? A :- Yes , Two new executive directors as well as promoters have joined in , Mr Tarun Shawhney & Mr Nikhil Shawhney. Q. Is your organization contributing to society through CSR activities? A:-- Yes, we are funding to schools and giving funds to a few NGOs .
58. Challenges faced There were three areas where Triveni wanted to improve. In the recent past, the company has shifted its focus from being a product-oriented company to a services company. 1. The first was customer support (CS). Critical information such as the case history of spares at customer premises were maintained manually and the systems were paper-based. Because of the data being unavailable we ended up overstocking spares. 2. Project systems ( for tackling projects), Each item/spare is tracked with the associated project. Triveni manufactures some of the items/spares and partially outsources/procures from a third party. A purchase order is issued against each item/spare directly bought out. Triveni had to deal with large number of items at a time (on an average, 80 to 90 items); there was no means of tracking these projects. 3. Cost of project was the third area : . It was necessary to determine how much Triveni was investing in a given project. It was easy for us to calculate the cost of the spares but because of longer shelf life of spares (25-30 years), it was difficult for us to calculate the travel expenses incurred while getting to the customer premises, spares supplied during warranty conditions and the like.
59. Strategies Implemented Following measures were taken :- 1. Establishment of extensive customer care unit. In case of any complaint,has to be resolved within 24 hrs.Use services to establish product life-cycle relationships with customers 2. SAP R3 implemented. ( Functional level strategy) 3. Cost cutting strategies -Cost leadership strategy -Less inventory -Early dispatches -Negotiation with vendors when metal rates change. -Online customer support and quality check. GROWTH STRATEGY – PRODUCT DEVELOPMENT: -Expand the manufacturing infrastructure -Increase the range of products offered
60. Strategies Implemented CORPORATE LEVEL STRATEGY: Triveni Turbines ltd.(TTL) will allot Triveni shareholder’s one share for every share held. The board approved the demerger of the turbine business of Triveni groups to TTL with effect from 1st October, 2010. This demerger will result in- -clear management focus. -flexibility to get strategic partner. The company is looking for partnership which will add value to business and is looking at Europe, US, and Parts South-East Asia for expansion. INTERNATIONAL STRATEGY AND GLOBALIZATION : -Focus on export of steam turbines -Joint Venture with GE (49% stake of GE and 51% stake of Triveni) - technogy transfer for design & manufacturing - global presence -great example of the decentralized 'reverse innovation' Triveni Engineering capacity will be at Bangalore and turbines would be sold with the brand name GE in the global market. looking at a global market of $1-2 billion.
61. Conclusion:- 1. A rational blend of determined intentions, focused efforts, intelligent direction and skillful execution offers it a strong platform to deliver world-class products and solutions to its customers. 2. The Competetive Strategies which have provided Triveni Industries an edge over its competetitors are : -Triveni technology is of paramount importance, -quality is a logical sequel. -stringent quality measures from design to manufacture and testing to dispatch. -3-stage quality check: -Raw materials stage -Component Manufacturing stage -Final Assembly Full speed test stage 3. Continuous improvement in all its processes and products through TQM tools and Six Sigma Methodologies. 4. Provides higher quality of international standards such as IEC etc. 5. A market leader in the turbine industry is its readiness to change and bring about innovations through effective strategy implementation. 6. The value chain system of this particular company is properly organized and guide towards effective linkage of its different components.
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