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Topic              :          Business Operational Plan

Name               :          Syed Arif Ali Shah

Reg #              :          7922

Program            :          BBA-H

Course             :          Operation Management

Instructor         :          M-A-K Chishty




Submitted to       : M-A-K Chishty

Submittance date   : 3rd Jan 2011
COMPANY NAME                  :       TECHINT POWER SOLUTION
PRODUCT NAME                  :       WIND TURBINE / MILL
BRAND NAME                    :       TECHMILL-WT & WTG Series

MISSION STATEMENT:
Our Mission is to develop a low cost, high efficient Low Wind Speed turbine and power
generation system that will offer true cost saving to electric energy users. Our goal is to provide a
best technology solution on the basis of research and development, with best quality and
continuous improvement to the consumers. Our goal is to save your money plus using the non
polluting energy to save the environment for our future.

COMPANY’S INTERNAL ENVIRONMENT:
Renewable clean energy comes from sources i.e. solar, wind, biomass, hydrogen, geothermal,
hydroelectric, and from ocean waves. The only forms of energy that are economical almost
anywhere in the world are solar and wind energy. As such the sun shines every day, the
electricity produced through solar cells wouldn’t be enough to power an average home at all
times. Therefore, wind energy is one of the consumer’s forms of renewable clean energy to
power homes and provide electric power for other purposes. Since a small wind turbine needs a
startup wind speed, the location of the wind turbine is very important. The average wind needs to
be a certain speed and the wind turbine needs to be efficient. Techint Power Solution currently
manufactures of wind turbines, which is more efficient than any other unit of comparable size in
the world.
Techint Power Solution is a manufacturer of Wind Turbine in Pakistan. Techint Power Solution
is a start-up manufacturing firm to help overcome the crisis of electricity along with a significant
level of its own capital. Techint hopes to initially make a successful effort to secure start-up
financing to begin operations.
Techint Power Solution is a start-up manufacturing firm which will be managed by four
executives representing administration, marketing, Operational, and finance. These
executives bring to the company a large degree of experience in the wind turbine manufacturing
industry. They perceive an opportunity to acquire a significant amount of market share by
focusing on the specific needs of the market and by providing greater precision controls to their
products than other competitors. The company will be organized as a closely-held corporation
with a majority of the shares held by the four principle executives.
Techint with the manufacturing of wind turbine, also contributing in the other related areas to
gives the maximum benefits to the costumer by wind resource assessment, local government
support, land acquisition and permitting, installation and commissioning, operations &
maintenance, turbine monitoring, and spare parts.
It is the policy of Techint Power Solution to manage and operate business activities in conformity
with applicable laws and ethical standards. The management determined to comply fully with the
law and to maintain company reputation and fairness in business dealings with others.
All employees, officers and directors of the Company are expected to adhere to all ethical and
legal standards and to preserve company reputation for integrity and ethical conduct.

The Company requires that all employees, officers and directors comply with all laws, rules and
regulations applicable to the Company wherever it does business.
Employees and officers must maintain the confidentiality of proprietary information entrusted to
them by the Company or its customers or suppliers, except when disclosure is authorized in
writing by the Chief Financial Officer or required by laws or regulations.

All employees and officers should protect the Company’s assets and ensure their efficient use.
 Theft, carelessness, and waste have a direct impact on the Company’s profitability. All
Company assets are to be used for legitimate Company purposes. Any suspected incident of
fraud or theft should be immediately reported for investigation.

Every employee, officer and director has the responsibility to ask questions, seek guidance, and
report suspected violations and express concerns regarding compliance with this Code. Any
employee, officer or director who knows or believes that any other employee or representative of
the Company has engaged or is engaging in Company-related conduct that violates applicable
law or this Code should report such information to his or her supervisor or to: the Director of
Internal Audit; the Director of Human Resources; and/or the Chairman of the Audit Committee
of the Board of Directors.

Employees must respect and encourage company values at work, promoting teamwork,
individual responsibility, and the strength that comes from diversity. Company will strive to pay
fair compensation and provide a safe and healthy workplace for employees. Company is
committed to equality of opportunity in all its employment practices, policies and procedures. Job
requirements fulfilled, no employee or potential employee will receive less favorable treatment
due to any reason whatsoever. Company will continue to invest in the personal and professional
learning and growth of company employees.

CUSTOMER MARKET:
Due to the shortage or crisis of electricity and rising awareness of air, water, and land pollution,
the government and environmental agencies are focusing to decrease pollution, and wind turbines
are the forefront technology which helps to achieve the objectives. The increase in incentives
from the government bodies for using and connecting renewable energy will drive the
consumer’s price for a wind turbine very competitive. These incentives and the highly efficient
wind turbine will be the leader in producing small wind turbines for farmers, green energy
activists, early adopters of this technology, and entrepreneurs. There are many remote farms and
homes that aren’t have electricity, and they would get benefit from this product. While other
homes and farms that are connected to the grid can buy a wind turbine, these owners are more
energy conscious and would like to make a profit in the long run. Entrepreneurs that would like
to treat the wind turbine as an investment and companies that would like backup power for their
facilities would also purchase a wind turbine, due to its clean and continuous power generation.
Many of the wind turbine owners would be very energy conscious people because this wind
turbine is very efficient for its size. There are hundreds of remote farms and homes all over the
country with sufficient wind speeds. Therefore, these customers are looking already for a
convenient and reliable source of energy, which provides an opportunity for to give them.
Techint wind turbine more efficient board processor and low maintenance cost will keep any
customer happy at all times.

As for the future, Techint will benefit from it as long as there is wind. In the near future, there
will be more incentives which will mean more customers shopping for efficient, reliable, clean
energy. Techint also produce larger wind turbines that can produce more power for large scale
homes, large businesses, and even maybe communities.

Techint customers would be people or businesses that are not connected to the power grid. This
includes institutions such as hospitals, schools, universities, and governmental buildings, energy
conscious consumers, and industries. The wind energy industry is a relatively new industry in the
Pakistan, but increasing due to governmental requirement, Environmental policies and incentives
for using renewable energy. With more adopting clean energy legislation the market for wind
energy is expected to increase. This increase in green energy laws and the market will drive the
consumers to Techint due to its quiet and more efficient wind turbine than any other on the
market. This product is more efficient than that of any direct competitor.

COMPETITORS:
As such we have not the competitor as a manufacturer, but few importers are working and
supplying product through China, Denmark, UK etc. the imported wind turbine would be more
expensive than the local.

MARKETING ENVIRONMENT:
It is important for the organization to consider the environmental influences that have been
particularly important in the past, and the extent to which there are changes occurring, which may
make any of these more or less significant in the future and bring in new issues for consideration.
The macro-environment consists of all the outside institutions and uncontrollable forces that have
an actual or potential interest or impact on the organization’s ability to achieve its objectives. The
Political, Economic, Social, Technological, Legislation and Environmental factors, are the most
important tools to consider in regards to the impact of the general environment as they provide a
broad structure assessing the potential impact of these influences, positive or negative, while the
opportunities and threats to be faced.
The demographic environment tells marketers who can be potential customer in terms of size,
density, location, age, sex, race, occupation, and other statistics. Changes can result in significant
opportunities and threats presenting themselves to the organization and major trends for
marketers include worldwide explosive population growth. All of these can provide with the tools
and assets it needs to promote its products in different areas of the country as well as outside the
country and gain a bigger share of the market. Techint has realized wind energy equipment that
generates clean renewable energy, to provide power generation equipment for consumers highly
efficient, reliable, and cost effective.
The economic environment consists of factors that affect consumer purchasing power and
spending patterns. Economics factors include business cycles, inflation, unemployment, interest
rates, and income. Changes in these major economic variables have a significant impact on the
marketplace. Techint is impacted by these economic variables greatly as these things cannot be
controlled. Such things as consumer-expenditure and family incomes play an important role in
the marketing strategy and are an important part of advertisement and technical literature
campaigns. The government tax relaxation facilities are giving more advantage to increase the
market.
Techint operations are under the government policy and with the collaboration of government
and environmental societies, make more effective and usable in the country. The government
incentive and relaxation in taxes helps in increasing the market on this industry. Techint is using
home resources to make a cheap market for the consumer.
Organizations need to be aware of new technology in order to turn these advances into
opportunities and a competitive edge. Technology has a tremendous effect on life-styles,
consumption patterns, and the economy. Advances in technology can radically alter existing
industries and because of the industries competitive nature each company makes their own
advances, and then copyrights them. Techint research team has spent years and years in,
researching, developing and testing the possibility of making more efficient. Techint turbine, the
most acclaimed technological development makes the dream a reality. Therefore, by advancing in
technology, we hold a competitive edge in the market. Techint has also taken the lead in by being
the first market with its e-commerce web site. Its web site offers online purchasing, a complete
description of its product lines, store locations, and many more features to reach its market. The
goal for applying this system is to create a seamless flow of information shared by any browser,
reduce time for getting information and they can obtain the information about their company and
product anywhere. As a result, we increased more than 20% - 25% of their sales.
Environmental consciousness has a strong presence in Western, as well as now in the Pakistan.
Currently, rising awareness of air, water, and land pollution, people and society is focusing to
decrease pollution all together and wind energy is the consumer’s number one form of renewable
clean energy to power homes and provide electric power for other purposes. It is the Techint
commitments to provide a green environment and use all natural resources to safe environment.




SEGMENTATION:
Residential Customers

             Farmers Have       Farmers have   Prefer NaturalBusiness/         Entrepreneurs
             not Electricity    Electricity    Energy        higher class
Age          35-70              35-70          25-45         30-70             25-45
Gender       Both               Both           Both          Both              Both
Location     Remote Rural       Rural Areas    Metropolitan  Metropolitan      Rural/Metropol
             Areas                                           / Suburban        itan/urban
Income Level N/A                N/A            60,000-150,00 200,000 +         N/A
                                               0
Social Class / Farming          Farming        Bule Collar / White             Self-Employed
Occupation                                     White Collar  Collar /
                                                             Business
                                                             class
Education      No               No             High School / College +         High School /
                                               College                         College
Electricity    No               Yes            Yes           Yes               Yes / No
Supply




Corporate Customers
Service Critical Corporations – Companies that need a constant source of energy, independent of
the power grid. Although connected to the grid, these companies need an uninterruptible source of
energy to conduct their business. It will probably need to be connected to an electrical storage
unit.

   ·     Industry (or portion of an industry)      Medical/Technology/Telecommunications
   ·     Location                                  Metropolitan
   ·     Size of firm                              Medium/Large
   ·     Quality/technology/price preferences      High Tech/Reliable/Price is no object
   ·     Energy Demand                             High and Constant

Energy Conscious Corporations – Companies that provide a green product, or wish to promote an
energy conscious attitude. These companies are willing to pay a premium for green energy.

   ·     Industry (or portion of an industry)      Sporting/Outdoors/Various
   ·     Location                                  Metropolitan
   ·     Size of firm                              Small/Medium
   ·     Quality/technology/price preferences      High Tech/Reliable/Price is no object
   ·     Energy Demand                             Moderate during normal business hours



Schools / Universities – Schools which intend to teach the benefits of green energy, including
wind energy, would greatly benefit from having a wind turbine on site.

   ·     Industry (or portion of an industry)      Education
   ·     Location                                  Metropolitan/Rural
   ·     Size of firm                              Small/Medium
   ·     Quality/technology/price preferences      New Technology/Low Price (grants)
   ·     Energy Demand                             Moderate during normal school hours

Government Agencies – These organizations would be able to greatly reduce the cost of wind
turbines with grants and subsidies. Also, the energy generated by on-site turbines would help to
fulfill renewable energy quotas implied by law.

   ·     Industry (or portion of an industry)      Government
   ·     Location                                  Metropolitan
   ·     Size of firm                              Medium/Large
   ·     Quality/technology/price preferences      Low Price (grants)
   ·     Energy Demand                             Moderate during normal business hours
In our country, we possess a lot of wind resource in the province of Sindh and coastal areas of
Baluchistan. Alternate Energy Development Board (AEDB) has collected the Wind Data of all
Pakistan from Pakistan Metrological Department and analyzed it. As per the collected data, the
coastal belt of Pakistan is blessed by God Almighty with a wind corridor that is 60 km wide
(Gharo to Keti Bandar) and 180 km long (up to Hyderabad.) This corridor has the useable
potential of 50,000 MW of electricity generation through wind energy (courtesy: AEDB).We
should be able to meet a major part of our electricity requirement by installing wind turbines in
this corridor.

Keeping in view the urgency of the situation, the government has to move fast and solve this
problem as soon as possible. It’s a serious challenge for the new government. Long spells of load
shedding would be unbearable for the people. The situation would be going from bad to worse
with every passing day.



MARKET STRATEGY:
Techint are focus on the Micro-marketing on the basis of individual needs and requirement.
   1. For Consumer Market: this product is low speed and compact in size for the household
       consumer and low consuming customer.
   2. For Industrial & Rural Market: this product is manufacturer on the requirement of the
      customer with special feature, more effective function of energy generation in economical
      price.
   3. For Institutional & Education Market: this product is special design for the large scale
      producing energy in the low space requirement.


CONSUMER BEHAVIOUR:
The major population of Pakistan is based on rural areas, there are many remote areas which have
not any resource of energy and due to this they are still facing challenges to improve their
farming facilities and life, people move to the city to pursue an alternative way to make a living,
so the traditional rural life is going finish. The wind turbine is a very attractive source to cover up
their challenges without any damages of environment and rural tradition. Wind energy projects
provide new jobs, a new source of revenue for farmers and are a home growing energy that helps
secure energy requirement for future without pollution and saving water resources. Wind energy
offer rural landowner a new cash business, by paying royalties or rent of space for installing wind
turbine. Wind energy project helps to all community in a very competitive price rather than the
other sources.

On the other side the urban resident or population is quite sophisticated, and understands the
benefits of wind turbine. They have the access of other energy sources but as the population
grows and crisis or shortage of energy they need this innovative technology for economic
development. The government incentive and environmental society’s policy is also make
consumers that wind turbine electricity represents a clean, safe, and reliable way to power their
homes. The economical factors are making them easy life and improve their quality of life.

Competitive Advantages:

Techint manufacture a light weight product, use of special material which make it unique and
increase the performance 20-25% than the others, special design feature for individual as per
customer requirement. Techint have highly skilled technical staffs which provide complete
solution to the customer and in touch with customer regular basis.




PRODUCT CLASSIFICATION:
Techint products is stand in special products due to unique characteristics, and special feature.
Techint provide a complete solution to our consumer through sale, service and spare parts.


PRODUCT LINE:
Techint have a similar product with different model, due to change of capacity, blade design,
dimensions, and other features. The different model are as follows;

S.No.        Model Number                                        Capacity
01           TECHMILL-WT500                                      500Kw
02           TECHMILL-WT700                                      700Kw
03           TECHMILL-WT1000                                     1000Kw
04           TECHMILL-WT1.5                                      15,000 Kw
05           TECHMILL-WT2.0                                      20,000Kw
06           TECHMILL-WTG5                                       5Mw
07           TECHMILL-WTG20                                      20Mw
08           TECHMILL-WTG30                                      30Mw
PRODUCT FEATURE & QUALITY:
    FEATURE                      DETAIL                             BENEFIT / QUALITY
Quantum Drive       Compact, two-stage helical, distributed     Increased reliability and
Distribution        load path.                                  durability.

                    Four smaller high speed shafts              Higher efficiency
                    distribute the output to four generators.

                    Two pre-loaded, low-speed taper-roller      Increased reliability, reduced
                    main bearings absorb thrust loads           downtime and extended turbine
                                                                life.

                    High-speed gear                             Reduced downtime, increased
                                                                energy production, and
                                                                substantially reduced long-term
                                                                operating costs.

                    Multiple inspection ports, enabling a       Reduced unscheduled
                    more precise operations and                 maintenance cost and increased
                    maintenance.                                energy production.
Permanent           Permanent magnet generators offer           Nearly maintenance-free
Magnet Generators   advantages over induction generators in     operation with higher
                    terms of increased power density,           efficiency, increased energy
                    increased efficiencies at lower wind        production, Higher efficiency.
                    speeds, improved low-voltage ride-
                    through capability when combined with
                    full power conversion, and simplicity
                    of design.                                  Reduced               unscheduled
                                                                maintenance cost.
                    Does not utilize slip rings or brushes.     Reduced maintenance cost,
                    Historically, slip rings have been a        increased reliability.
                    maintenance issue requiring                 Extended gearbox life.
                    replacement more frequently than
                    anticipated.

                    Stray current-induced pitting and
                    bearing failures inherent in doubly-fed     Lower operating temperature
                    generators is eliminated, substantially     provides for increased
                    extending bearing life.                     reliability, and longer life due to
                                                                greater thermal margin.
                    Low short-circuit current reduces
                    torque overload on the drive train due
                    to electrical short circuit. Effective
                    generator cooling design maintains
                    temperature.
Variable     Speed System is based on larger capacity and         Higher energy capture.
System             proprietary permanent magnet                   Increased productivity.
                   generator technology which
                   Provides simpler, more reliable, more
                   cost effective variable speed operation.
Full         Power Grid Isolation. variable speed generator       Improved gearbox reliability.
Conversion         and inverter system.                           Reduced overall system cost.
                   Power Factor Control. Enables the              Higher reliability and less
                   operation with selectable power factor         downtime
                   to near unity and as low as five percent
                   load                                           Lower       operating        and
                                                                  maintenance costs.
                      Passive Rectifier. Conversion of the
                      generator alternating current output to
                      direct current for the input to the         Sitting versatility.
                      variable speed inverter.                    Increased productivity.

                      Unidirectional Power Flow. Variable
                      speed inverter system is simpler,
                      utilizes fewer parts, and delivers power.
Blades                Rotor sizes available for all wind          Provides sitting optimization
                      regimes                                     benefits.
Blade Pitch System    Each blade has an independent               Increased reliability, higher
                      electromechanical       pitch      system   availability
                      with battery back-up for power control
                      and primary braking.

Lightning             Blade tip lightening receptors connect      Reduced downtime, reduced
Protection            through brushes on the blade pitch          cost, and greater productivity
                      bearings and main shaft, transmitting
                      lightning strike current down the tower
                      to ground.
Advanced Cold         Operates at temperatures down to -30        Greater energy capture and
Weather Package       degrees Centigrade, survives to -40         reduced downtime.
                      degrees.

Techint operates with ISO 9001:2000 compliant Quality Management System “QMS” manages
the full life cycle of the product from design, operation and maintenance, including tools and
training for manufacturing practices, personnel training and quality assurance of suppliers. Our
professional staff and QC department go through the components and inspection on every supply
and assembly points to ensure production to the highest standards.
PRODUCT PRICING STRATEGY:
The price of the Techint wind turbine is stabilized in order to avoid price war and maintain a
moderate and stable level of profit. This price is higher than the few competitor companies but
this is due to many factors.
The Techint wind turbine uses High Tech. & different technology which produces more power
for a given rotor diameter. The wind turbine is also claimed to be a more efficient, higher quality,
and longer lasting turbine. The material cost is also higher due to the use of composite materials.
Techint provides the complete customer service and solution to the consumers for the installation
of wind turbine and after sales service with spare parts.

Techint is also use the finance company to handle the customer payments for the turbine.

For the Commercial purpose and on large scale installation Techint gives the additional
incentives with the collaboration of government incentives program to minimize the cost and
gives the maximize benefits to the consumers.


DISTRIBUTION CHANNEL:
Techint objective is to supply the product and installation within 3days for the small wind turbine
and large wind turbine within 15days.

Techint open the sales office in all the major cities of the country with display of small wind
turbine and for large wind turbine display by animation programs.

Techint provide transportation by own transport system and other equipment for installation
because the product need very careful to handle during the transportation, loading and unloading.
The wind turbines are packed in wooden box in different part to handle easily with minimum
cost.

Commercial and large wind turbine need the heavy equipment for loading & unloading therefore
for the safety of the product Techint hire the skilled employee which are fully trained in handling
and installation of product and minimize installation time, problems or unforeseen accidents.

Techint distribute or sell the wind turbines in many ways; by visits from customers to the place of
business, over the phone, by fax, or over the web. A website will be set up which displays the
products and shows ways to conduct the online purchase or order.


PROMOTION:
The Promotion objective of the Techint is to create the awareness about the green house policy,
save the environment, reduce the import dependence of fuels, and avoid risks of disruption in
fossil fuel supply and association of price instability.

Techint use advertising, word of mouth, and renewable energy conferences to get the word out
about their new product. Advertisements and articles can be placed in scientific and renewable
energy magazines or others to introduce their wind turbine into the market. These will be the
best places for the ads because consumers interested in renewable energy may likely read these
types of magazines. Methods other than paid advertising could be a brochure of company
products and an introduction into renewable energy, conferences that deal with the topic of
renewable energy. Word of mouth can also be used for promotion of the company, and this
would be stimulated from satisfied users of Techint brand wind turbines. Another idea for
company promotion would be to have the company name or website painted somewhere on the
turbine itself, in order to introduce viewers of the turbine to the company. Techint could be
painted on the fairing surrounding the blades, since the fairing remains still while the unit is in
operation.

Techint would also like to obtain contracts with larger institutions such as universities, hospitals,
or cities in order to get the product out into the market. They could also include a discount on the
purchase of the turbines, for a large quantity purchased. Techint would also put in place a system
that would contact customers on a timely basis, to question them about their wind turbine. This
contact would be done to see how the turbine is working, to find out if there are any problems,
and to see if the customer is satisfied. This will help to promote a strong interest in customer
service and satisfaction.

KEYS FACTS:
STRENGTHS:
Complete Solutions---Planning of Wind Farm Systems, Land Acquisition, Development and
Technical Design, Infrastructure and Equipment, O&M services. Techint offers customers' end-
to-end wind energy solutions, including wind resource mapping, site development and
installation, and finally operations & maintenance services. This allows Techint to offer
customers economies of scale, and eliminates the need for customer involvement in the complex
process of wind farm development.

Unique Design – Techint adopt unique design for large scale wind turbine, vertically integrated
which gives more power in very low speed of wind, plus special design motor with a very low
noise and life of turbine. This design encrouge the customer demand and fulfill the customer
satisfaction.

Market leadership in Pakistan- Techint is the first manufacturer of wind turbine in Pakistan. It
the biggest advantage that Techint lead the wind turbine market in Pakistan easily.

Innovation- Techint has the R&D department and continuous effort in designing to give the best
technology in the competitive cost to the consumers.

Human Resource-Techint true strength is not only in its technology, quality and market share,
but also its people. The Techint has the best team in the wind energy business. The employee’s
efforts and their skill are remarkable for the Techint which leads to the maximizing growth while
maintaining margins to generate maximum value for all stakeholders.
WEAKNESS:
Capital Intensive: Wind power projects require high upfront capital investment per kWh of
energy. So demand will be sensitive to interest rates.

Overseas Business: Techint is expanding business in overseas, where major players have
established markets. The advantage of new markets and new orders may take time, while
marketing, personnel and other initial costs could jump. Hence, this may put pressure on the
margin in the short run. Risks involved in overseas business are also higher. So expansion plan
may further increase the burden on the company.

Operational Risk: The construction and operation of wind power projects has faced opposition
from local communities and Political Parties.


OPPORTUNITIES:
Environmental and Government initiatives: The government and environment bodies are
taking the initiative and promote the investor in this sector. The projections of WAPDA we have
still shortage of supply approx. 35% - 45%, and will increase in the next 3 years. It is predicted
that 50% of this capacity or 12,000MW may come from wind power. Pakistan has now gained
sufficient technical and operational experience, and is now on the threshold of "taking off" in
wind power.

Favorable tax exemptions: The Wind Energy industry enjoys special tax benefits from
government and subsidies from regulatory bodies. Better tariffs, policy support and optimistic
outlook are driving investment in this sector.

Green Power: The existing power sector emits around 40% of global carbon dioxide emissions
and there are only three options to substantially reduce these emissions between now and 2020:
energy efficiency, fuel switching, and renewable, predominantly wind power. Wind power could
produce 12% of the world’s energy needs and save 10 billion tones of CO2 within 12 years.

THREATS:
Competition: Techint products price are high than competitor especially China manufacturing
products, the local importer could be harmful for the company in importing of wind turbine from
China.

Technology Risk: The failure to keep technical knowledge confidential could grind down
company competitive advantage.

Decreasing Price of crude: There is a direct correlation between Crude prices and Wind energy
demand. If the crude suffers from low prices which indicate the overall fall in demand in
infrastructure and energy demand then it would affect the growth of the Sector.


CONCLUSION:

Due to the shortage of power supply in the country and demand increase giving the opportunity
to the company positively. It will give immediate access to cover the local market. Pakistan
market has a good potential in terms of volumes, and renewable energy is considered strong
technology. Techint wind turbine due to the unique design with complete solution and customer
satisfaction improve in the market share.

 As world is looking alternative source of energy to sustain the growth, harvesting energy through
wind is the best alternative. Techint is better positioned to capture the opportunity. People are
very much now concerned about the environment. The demand for pollution free source of
energy is gaining ground. Harvesting energy through wind is good alternative as most of the
regions have good wind, specially the coastal region. Energy produced from wind mills are low
cost as compared to the energy produced through any other sources.

The wind energy demand is directly correlated with the crude oil prices. As global economy is
expected to revive by the FY2010 .We expect the demand for crude oil will be back as and prices
will be once again shooting up from the current levels. The demand for crude will be there for the
revival of economies especially in Emerging markets like

The industry's outlook is expected to turn favorable by 2010 as reduction and lower costs boost
demand. The slowdown in the renewable energy sector is likely to be temporary. Pakistan
government approved a good budget to support the renewable energy sector.


MARKET SHARE:

Techint have a market share in this year is about 3% of the market and will gain in the next two
about 11% of the market.

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Techint turbine1

  • 1. Report Topic : Business Operational Plan Name : Syed Arif Ali Shah Reg # : 7922 Program : BBA-H Course : Operation Management Instructor : M-A-K Chishty Submitted to : M-A-K Chishty Submittance date : 3rd Jan 2011
  • 2. COMPANY NAME : TECHINT POWER SOLUTION PRODUCT NAME : WIND TURBINE / MILL BRAND NAME : TECHMILL-WT & WTG Series MISSION STATEMENT: Our Mission is to develop a low cost, high efficient Low Wind Speed turbine and power generation system that will offer true cost saving to electric energy users. Our goal is to provide a best technology solution on the basis of research and development, with best quality and continuous improvement to the consumers. Our goal is to save your money plus using the non polluting energy to save the environment for our future. COMPANY’S INTERNAL ENVIRONMENT: Renewable clean energy comes from sources i.e. solar, wind, biomass, hydrogen, geothermal, hydroelectric, and from ocean waves. The only forms of energy that are economical almost anywhere in the world are solar and wind energy. As such the sun shines every day, the electricity produced through solar cells wouldn’t be enough to power an average home at all times. Therefore, wind energy is one of the consumer’s forms of renewable clean energy to power homes and provide electric power for other purposes. Since a small wind turbine needs a startup wind speed, the location of the wind turbine is very important. The average wind needs to be a certain speed and the wind turbine needs to be efficient. Techint Power Solution currently manufactures of wind turbines, which is more efficient than any other unit of comparable size in the world. Techint Power Solution is a manufacturer of Wind Turbine in Pakistan. Techint Power Solution is a start-up manufacturing firm to help overcome the crisis of electricity along with a significant level of its own capital. Techint hopes to initially make a successful effort to secure start-up financing to begin operations. Techint Power Solution is a start-up manufacturing firm which will be managed by four executives representing administration, marketing, Operational, and finance. These executives bring to the company a large degree of experience in the wind turbine manufacturing industry. They perceive an opportunity to acquire a significant amount of market share by focusing on the specific needs of the market and by providing greater precision controls to their products than other competitors. The company will be organized as a closely-held corporation with a majority of the shares held by the four principle executives. Techint with the manufacturing of wind turbine, also contributing in the other related areas to gives the maximum benefits to the costumer by wind resource assessment, local government support, land acquisition and permitting, installation and commissioning, operations & maintenance, turbine monitoring, and spare parts. It is the policy of Techint Power Solution to manage and operate business activities in conformity with applicable laws and ethical standards. The management determined to comply fully with the law and to maintain company reputation and fairness in business dealings with others. All employees, officers and directors of the Company are expected to adhere to all ethical and legal standards and to preserve company reputation for integrity and ethical conduct. The Company requires that all employees, officers and directors comply with all laws, rules and regulations applicable to the Company wherever it does business.
  • 3. Employees and officers must maintain the confidentiality of proprietary information entrusted to them by the Company or its customers or suppliers, except when disclosure is authorized in writing by the Chief Financial Officer or required by laws or regulations. All employees and officers should protect the Company’s assets and ensure their efficient use. Theft, carelessness, and waste have a direct impact on the Company’s profitability. All Company assets are to be used for legitimate Company purposes. Any suspected incident of fraud or theft should be immediately reported for investigation. Every employee, officer and director has the responsibility to ask questions, seek guidance, and report suspected violations and express concerns regarding compliance with this Code. Any employee, officer or director who knows or believes that any other employee or representative of the Company has engaged or is engaging in Company-related conduct that violates applicable law or this Code should report such information to his or her supervisor or to: the Director of Internal Audit; the Director of Human Resources; and/or the Chairman of the Audit Committee of the Board of Directors. Employees must respect and encourage company values at work, promoting teamwork, individual responsibility, and the strength that comes from diversity. Company will strive to pay fair compensation and provide a safe and healthy workplace for employees. Company is committed to equality of opportunity in all its employment practices, policies and procedures. Job requirements fulfilled, no employee or potential employee will receive less favorable treatment due to any reason whatsoever. Company will continue to invest in the personal and professional learning and growth of company employees. CUSTOMER MARKET: Due to the shortage or crisis of electricity and rising awareness of air, water, and land pollution, the government and environmental agencies are focusing to decrease pollution, and wind turbines are the forefront technology which helps to achieve the objectives. The increase in incentives from the government bodies for using and connecting renewable energy will drive the consumer’s price for a wind turbine very competitive. These incentives and the highly efficient wind turbine will be the leader in producing small wind turbines for farmers, green energy activists, early adopters of this technology, and entrepreneurs. There are many remote farms and homes that aren’t have electricity, and they would get benefit from this product. While other homes and farms that are connected to the grid can buy a wind turbine, these owners are more energy conscious and would like to make a profit in the long run. Entrepreneurs that would like to treat the wind turbine as an investment and companies that would like backup power for their facilities would also purchase a wind turbine, due to its clean and continuous power generation. Many of the wind turbine owners would be very energy conscious people because this wind turbine is very efficient for its size. There are hundreds of remote farms and homes all over the country with sufficient wind speeds. Therefore, these customers are looking already for a convenient and reliable source of energy, which provides an opportunity for to give them. Techint wind turbine more efficient board processor and low maintenance cost will keep any customer happy at all times. As for the future, Techint will benefit from it as long as there is wind. In the near future, there will be more incentives which will mean more customers shopping for efficient, reliable, clean
  • 4. energy. Techint also produce larger wind turbines that can produce more power for large scale homes, large businesses, and even maybe communities. Techint customers would be people or businesses that are not connected to the power grid. This includes institutions such as hospitals, schools, universities, and governmental buildings, energy conscious consumers, and industries. The wind energy industry is a relatively new industry in the Pakistan, but increasing due to governmental requirement, Environmental policies and incentives for using renewable energy. With more adopting clean energy legislation the market for wind energy is expected to increase. This increase in green energy laws and the market will drive the consumers to Techint due to its quiet and more efficient wind turbine than any other on the market. This product is more efficient than that of any direct competitor. COMPETITORS: As such we have not the competitor as a manufacturer, but few importers are working and supplying product through China, Denmark, UK etc. the imported wind turbine would be more expensive than the local. MARKETING ENVIRONMENT: It is important for the organization to consider the environmental influences that have been particularly important in the past, and the extent to which there are changes occurring, which may make any of these more or less significant in the future and bring in new issues for consideration. The macro-environment consists of all the outside institutions and uncontrollable forces that have an actual or potential interest or impact on the organization’s ability to achieve its objectives. The Political, Economic, Social, Technological, Legislation and Environmental factors, are the most important tools to consider in regards to the impact of the general environment as they provide a broad structure assessing the potential impact of these influences, positive or negative, while the opportunities and threats to be faced. The demographic environment tells marketers who can be potential customer in terms of size, density, location, age, sex, race, occupation, and other statistics. Changes can result in significant opportunities and threats presenting themselves to the organization and major trends for marketers include worldwide explosive population growth. All of these can provide with the tools and assets it needs to promote its products in different areas of the country as well as outside the country and gain a bigger share of the market. Techint has realized wind energy equipment that generates clean renewable energy, to provide power generation equipment for consumers highly efficient, reliable, and cost effective. The economic environment consists of factors that affect consumer purchasing power and spending patterns. Economics factors include business cycles, inflation, unemployment, interest rates, and income. Changes in these major economic variables have a significant impact on the marketplace. Techint is impacted by these economic variables greatly as these things cannot be controlled. Such things as consumer-expenditure and family incomes play an important role in the marketing strategy and are an important part of advertisement and technical literature campaigns. The government tax relaxation facilities are giving more advantage to increase the market. Techint operations are under the government policy and with the collaboration of government and environmental societies, make more effective and usable in the country. The government incentive and relaxation in taxes helps in increasing the market on this industry. Techint is using home resources to make a cheap market for the consumer.
  • 5. Organizations need to be aware of new technology in order to turn these advances into opportunities and a competitive edge. Technology has a tremendous effect on life-styles, consumption patterns, and the economy. Advances in technology can radically alter existing industries and because of the industries competitive nature each company makes their own advances, and then copyrights them. Techint research team has spent years and years in, researching, developing and testing the possibility of making more efficient. Techint turbine, the most acclaimed technological development makes the dream a reality. Therefore, by advancing in technology, we hold a competitive edge in the market. Techint has also taken the lead in by being the first market with its e-commerce web site. Its web site offers online purchasing, a complete description of its product lines, store locations, and many more features to reach its market. The goal for applying this system is to create a seamless flow of information shared by any browser, reduce time for getting information and they can obtain the information about their company and product anywhere. As a result, we increased more than 20% - 25% of their sales. Environmental consciousness has a strong presence in Western, as well as now in the Pakistan. Currently, rising awareness of air, water, and land pollution, people and society is focusing to decrease pollution all together and wind energy is the consumer’s number one form of renewable clean energy to power homes and provide electric power for other purposes. It is the Techint commitments to provide a green environment and use all natural resources to safe environment. SEGMENTATION: Residential Customers Farmers Have Farmers have Prefer NaturalBusiness/ Entrepreneurs not Electricity Electricity Energy higher class Age 35-70 35-70 25-45 30-70 25-45 Gender Both Both Both Both Both Location Remote Rural Rural Areas Metropolitan Metropolitan Rural/Metropol Areas / Suburban itan/urban Income Level N/A N/A 60,000-150,00 200,000 + N/A 0 Social Class / Farming Farming Bule Collar / White Self-Employed Occupation White Collar Collar / Business class Education No No High School / College + High School / College College Electricity No Yes Yes Yes Yes / No Supply Corporate Customers
  • 6. Service Critical Corporations – Companies that need a constant source of energy, independent of the power grid. Although connected to the grid, these companies need an uninterruptible source of energy to conduct their business. It will probably need to be connected to an electrical storage unit. · Industry (or portion of an industry) Medical/Technology/Telecommunications · Location Metropolitan · Size of firm Medium/Large · Quality/technology/price preferences High Tech/Reliable/Price is no object · Energy Demand High and Constant Energy Conscious Corporations – Companies that provide a green product, or wish to promote an energy conscious attitude. These companies are willing to pay a premium for green energy. · Industry (or portion of an industry) Sporting/Outdoors/Various · Location Metropolitan · Size of firm Small/Medium · Quality/technology/price preferences High Tech/Reliable/Price is no object · Energy Demand Moderate during normal business hours Schools / Universities – Schools which intend to teach the benefits of green energy, including wind energy, would greatly benefit from having a wind turbine on site. · Industry (or portion of an industry) Education · Location Metropolitan/Rural · Size of firm Small/Medium · Quality/technology/price preferences New Technology/Low Price (grants) · Energy Demand Moderate during normal school hours Government Agencies – These organizations would be able to greatly reduce the cost of wind turbines with grants and subsidies. Also, the energy generated by on-site turbines would help to fulfill renewable energy quotas implied by law. · Industry (or portion of an industry) Government · Location Metropolitan · Size of firm Medium/Large · Quality/technology/price preferences Low Price (grants) · Energy Demand Moderate during normal business hours
  • 7. In our country, we possess a lot of wind resource in the province of Sindh and coastal areas of Baluchistan. Alternate Energy Development Board (AEDB) has collected the Wind Data of all Pakistan from Pakistan Metrological Department and analyzed it. As per the collected data, the coastal belt of Pakistan is blessed by God Almighty with a wind corridor that is 60 km wide (Gharo to Keti Bandar) and 180 km long (up to Hyderabad.) This corridor has the useable potential of 50,000 MW of electricity generation through wind energy (courtesy: AEDB).We should be able to meet a major part of our electricity requirement by installing wind turbines in this corridor. Keeping in view the urgency of the situation, the government has to move fast and solve this problem as soon as possible. It’s a serious challenge for the new government. Long spells of load shedding would be unbearable for the people. The situation would be going from bad to worse with every passing day. MARKET STRATEGY: Techint are focus on the Micro-marketing on the basis of individual needs and requirement. 1. For Consumer Market: this product is low speed and compact in size for the household consumer and low consuming customer. 2. For Industrial & Rural Market: this product is manufacturer on the requirement of the customer with special feature, more effective function of energy generation in economical price. 3. For Institutional & Education Market: this product is special design for the large scale producing energy in the low space requirement. CONSUMER BEHAVIOUR: The major population of Pakistan is based on rural areas, there are many remote areas which have not any resource of energy and due to this they are still facing challenges to improve their farming facilities and life, people move to the city to pursue an alternative way to make a living, so the traditional rural life is going finish. The wind turbine is a very attractive source to cover up their challenges without any damages of environment and rural tradition. Wind energy projects provide new jobs, a new source of revenue for farmers and are a home growing energy that helps secure energy requirement for future without pollution and saving water resources. Wind energy offer rural landowner a new cash business, by paying royalties or rent of space for installing wind turbine. Wind energy project helps to all community in a very competitive price rather than the other sources. On the other side the urban resident or population is quite sophisticated, and understands the benefits of wind turbine. They have the access of other energy sources but as the population grows and crisis or shortage of energy they need this innovative technology for economic development. The government incentive and environmental society’s policy is also make
  • 8. consumers that wind turbine electricity represents a clean, safe, and reliable way to power their homes. The economical factors are making them easy life and improve their quality of life. Competitive Advantages: Techint manufacture a light weight product, use of special material which make it unique and increase the performance 20-25% than the others, special design feature for individual as per customer requirement. Techint have highly skilled technical staffs which provide complete solution to the customer and in touch with customer regular basis. PRODUCT CLASSIFICATION: Techint products is stand in special products due to unique characteristics, and special feature. Techint provide a complete solution to our consumer through sale, service and spare parts. PRODUCT LINE: Techint have a similar product with different model, due to change of capacity, blade design, dimensions, and other features. The different model are as follows; S.No. Model Number Capacity 01 TECHMILL-WT500 500Kw 02 TECHMILL-WT700 700Kw 03 TECHMILL-WT1000 1000Kw 04 TECHMILL-WT1.5 15,000 Kw 05 TECHMILL-WT2.0 20,000Kw 06 TECHMILL-WTG5 5Mw 07 TECHMILL-WTG20 20Mw 08 TECHMILL-WTG30 30Mw
  • 9. PRODUCT FEATURE & QUALITY: FEATURE DETAIL BENEFIT / QUALITY Quantum Drive Compact, two-stage helical, distributed Increased reliability and Distribution load path. durability. Four smaller high speed shafts Higher efficiency distribute the output to four generators. Two pre-loaded, low-speed taper-roller Increased reliability, reduced main bearings absorb thrust loads downtime and extended turbine life. High-speed gear Reduced downtime, increased energy production, and substantially reduced long-term operating costs. Multiple inspection ports, enabling a Reduced unscheduled more precise operations and maintenance cost and increased maintenance. energy production. Permanent Permanent magnet generators offer Nearly maintenance-free Magnet Generators advantages over induction generators in operation with higher terms of increased power density, efficiency, increased energy increased efficiencies at lower wind production, Higher efficiency. speeds, improved low-voltage ride- through capability when combined with full power conversion, and simplicity of design. Reduced unscheduled maintenance cost. Does not utilize slip rings or brushes. Reduced maintenance cost, Historically, slip rings have been a increased reliability. maintenance issue requiring Extended gearbox life. replacement more frequently than anticipated. Stray current-induced pitting and bearing failures inherent in doubly-fed Lower operating temperature generators is eliminated, substantially provides for increased extending bearing life. reliability, and longer life due to greater thermal margin. Low short-circuit current reduces torque overload on the drive train due to electrical short circuit. Effective generator cooling design maintains temperature.
  • 10. Variable Speed System is based on larger capacity and Higher energy capture. System proprietary permanent magnet Increased productivity. generator technology which Provides simpler, more reliable, more cost effective variable speed operation. Full Power Grid Isolation. variable speed generator Improved gearbox reliability. Conversion and inverter system. Reduced overall system cost. Power Factor Control. Enables the Higher reliability and less operation with selectable power factor downtime to near unity and as low as five percent load Lower operating and maintenance costs. Passive Rectifier. Conversion of the generator alternating current output to direct current for the input to the Sitting versatility. variable speed inverter. Increased productivity. Unidirectional Power Flow. Variable speed inverter system is simpler, utilizes fewer parts, and delivers power. Blades Rotor sizes available for all wind Provides sitting optimization regimes benefits. Blade Pitch System Each blade has an independent Increased reliability, higher electromechanical pitch system availability with battery back-up for power control and primary braking. Lightning Blade tip lightening receptors connect Reduced downtime, reduced Protection through brushes on the blade pitch cost, and greater productivity bearings and main shaft, transmitting lightning strike current down the tower to ground. Advanced Cold Operates at temperatures down to -30 Greater energy capture and Weather Package degrees Centigrade, survives to -40 reduced downtime. degrees. Techint operates with ISO 9001:2000 compliant Quality Management System “QMS” manages the full life cycle of the product from design, operation and maintenance, including tools and training for manufacturing practices, personnel training and quality assurance of suppliers. Our professional staff and QC department go through the components and inspection on every supply and assembly points to ensure production to the highest standards.
  • 11. PRODUCT PRICING STRATEGY: The price of the Techint wind turbine is stabilized in order to avoid price war and maintain a moderate and stable level of profit. This price is higher than the few competitor companies but this is due to many factors. The Techint wind turbine uses High Tech. & different technology which produces more power for a given rotor diameter. The wind turbine is also claimed to be a more efficient, higher quality, and longer lasting turbine. The material cost is also higher due to the use of composite materials. Techint provides the complete customer service and solution to the consumers for the installation of wind turbine and after sales service with spare parts. Techint is also use the finance company to handle the customer payments for the turbine. For the Commercial purpose and on large scale installation Techint gives the additional incentives with the collaboration of government incentives program to minimize the cost and gives the maximize benefits to the consumers. DISTRIBUTION CHANNEL: Techint objective is to supply the product and installation within 3days for the small wind turbine and large wind turbine within 15days. Techint open the sales office in all the major cities of the country with display of small wind turbine and for large wind turbine display by animation programs. Techint provide transportation by own transport system and other equipment for installation because the product need very careful to handle during the transportation, loading and unloading. The wind turbines are packed in wooden box in different part to handle easily with minimum cost. Commercial and large wind turbine need the heavy equipment for loading & unloading therefore for the safety of the product Techint hire the skilled employee which are fully trained in handling and installation of product and minimize installation time, problems or unforeseen accidents. Techint distribute or sell the wind turbines in many ways; by visits from customers to the place of business, over the phone, by fax, or over the web. A website will be set up which displays the products and shows ways to conduct the online purchase or order. PROMOTION: The Promotion objective of the Techint is to create the awareness about the green house policy, save the environment, reduce the import dependence of fuels, and avoid risks of disruption in fossil fuel supply and association of price instability. Techint use advertising, word of mouth, and renewable energy conferences to get the word out about their new product. Advertisements and articles can be placed in scientific and renewable energy magazines or others to introduce their wind turbine into the market. These will be the
  • 12. best places for the ads because consumers interested in renewable energy may likely read these types of magazines. Methods other than paid advertising could be a brochure of company products and an introduction into renewable energy, conferences that deal with the topic of renewable energy. Word of mouth can also be used for promotion of the company, and this would be stimulated from satisfied users of Techint brand wind turbines. Another idea for company promotion would be to have the company name or website painted somewhere on the turbine itself, in order to introduce viewers of the turbine to the company. Techint could be painted on the fairing surrounding the blades, since the fairing remains still while the unit is in operation. Techint would also like to obtain contracts with larger institutions such as universities, hospitals, or cities in order to get the product out into the market. They could also include a discount on the purchase of the turbines, for a large quantity purchased. Techint would also put in place a system that would contact customers on a timely basis, to question them about their wind turbine. This contact would be done to see how the turbine is working, to find out if there are any problems, and to see if the customer is satisfied. This will help to promote a strong interest in customer service and satisfaction. KEYS FACTS: STRENGTHS: Complete Solutions---Planning of Wind Farm Systems, Land Acquisition, Development and Technical Design, Infrastructure and Equipment, O&M services. Techint offers customers' end- to-end wind energy solutions, including wind resource mapping, site development and installation, and finally operations & maintenance services. This allows Techint to offer customers economies of scale, and eliminates the need for customer involvement in the complex process of wind farm development. Unique Design – Techint adopt unique design for large scale wind turbine, vertically integrated which gives more power in very low speed of wind, plus special design motor with a very low noise and life of turbine. This design encrouge the customer demand and fulfill the customer satisfaction. Market leadership in Pakistan- Techint is the first manufacturer of wind turbine in Pakistan. It the biggest advantage that Techint lead the wind turbine market in Pakistan easily. Innovation- Techint has the R&D department and continuous effort in designing to give the best technology in the competitive cost to the consumers. Human Resource-Techint true strength is not only in its technology, quality and market share, but also its people. The Techint has the best team in the wind energy business. The employee’s efforts and their skill are remarkable for the Techint which leads to the maximizing growth while maintaining margins to generate maximum value for all stakeholders.
  • 13. WEAKNESS: Capital Intensive: Wind power projects require high upfront capital investment per kWh of energy. So demand will be sensitive to interest rates. Overseas Business: Techint is expanding business in overseas, where major players have established markets. The advantage of new markets and new orders may take time, while marketing, personnel and other initial costs could jump. Hence, this may put pressure on the margin in the short run. Risks involved in overseas business are also higher. So expansion plan may further increase the burden on the company. Operational Risk: The construction and operation of wind power projects has faced opposition from local communities and Political Parties. OPPORTUNITIES: Environmental and Government initiatives: The government and environment bodies are taking the initiative and promote the investor in this sector. The projections of WAPDA we have still shortage of supply approx. 35% - 45%, and will increase in the next 3 years. It is predicted that 50% of this capacity or 12,000MW may come from wind power. Pakistan has now gained sufficient technical and operational experience, and is now on the threshold of "taking off" in wind power. Favorable tax exemptions: The Wind Energy industry enjoys special tax benefits from government and subsidies from regulatory bodies. Better tariffs, policy support and optimistic outlook are driving investment in this sector. Green Power: The existing power sector emits around 40% of global carbon dioxide emissions and there are only three options to substantially reduce these emissions between now and 2020: energy efficiency, fuel switching, and renewable, predominantly wind power. Wind power could produce 12% of the world’s energy needs and save 10 billion tones of CO2 within 12 years. THREATS: Competition: Techint products price are high than competitor especially China manufacturing products, the local importer could be harmful for the company in importing of wind turbine from China. Technology Risk: The failure to keep technical knowledge confidential could grind down company competitive advantage. Decreasing Price of crude: There is a direct correlation between Crude prices and Wind energy demand. If the crude suffers from low prices which indicate the overall fall in demand in infrastructure and energy demand then it would affect the growth of the Sector. CONCLUSION: Due to the shortage of power supply in the country and demand increase giving the opportunity to the company positively. It will give immediate access to cover the local market. Pakistan market has a good potential in terms of volumes, and renewable energy is considered strong
  • 14. technology. Techint wind turbine due to the unique design with complete solution and customer satisfaction improve in the market share. As world is looking alternative source of energy to sustain the growth, harvesting energy through wind is the best alternative. Techint is better positioned to capture the opportunity. People are very much now concerned about the environment. The demand for pollution free source of energy is gaining ground. Harvesting energy through wind is good alternative as most of the regions have good wind, specially the coastal region. Energy produced from wind mills are low cost as compared to the energy produced through any other sources. The wind energy demand is directly correlated with the crude oil prices. As global economy is expected to revive by the FY2010 .We expect the demand for crude oil will be back as and prices will be once again shooting up from the current levels. The demand for crude will be there for the revival of economies especially in Emerging markets like The industry's outlook is expected to turn favorable by 2010 as reduction and lower costs boost demand. The slowdown in the renewable energy sector is likely to be temporary. Pakistan government approved a good budget to support the renewable energy sector. MARKET SHARE: Techint have a market share in this year is about 3% of the market and will gain in the next two about 11% of the market.