Table of Contents

Table of Contents........................................................................................................1 Chapter 1....................................................................................................................4 Introduction.............................................................................................................5 Product Development strategy ............................................................................5 Indian Electrical Equipment Industry........................................................................6 Growth Rate Of Industrial Production..................................................................10 Indian Cable Industry Status..................................................................................11 Research And Development Scenario In India........................................................12 Growth Of Indian Electrical Industry.......................................................................13 Future................................................................................................................. 13 About the Company...............................................................................................14 Introduction........................................................................................................ 15 Extra High Voltage Cables..................................................................................15 Product Range.................................................................................................... 16 Manufacturing Facilities.........................................................................................16 Manufacturing Range..........................................................................................17 Cable Monitoring System (CMS)..........................................................................18 About the Product..................................................................................................19 Power Cables...................................................................................................... 20 Introduction XLPE Power Cables.......................................................................21 Background XLPE Power Cables.......................................................................22 An Overview of Technology Development & Upgradation Programme....................22 Project Title........................................................................................................ 22 Objective............................................................................................................ 23 Preamble ........................................................................................................... 23 A Brief On Product And Technology........................................................................24 Chapter 2..................................................................................................................25 Review of Literature...............................................................................................26 Product strategies...............................................................................................26 Idea generation ................................................................................................. 27 Idea Screening....................................................................................................28 1|Page

Concept development and testing......................................................................29 Concept Development........................................................................................29 Concept Testing..................................................................................................30 Marketing Strategy development........................................................................31 Business analysis................................................................................................31 Product development..........................................................................................32 Test marketing................................................................................................... 32 Standard test Marketing.....................................................................................33 Control Test Marketing........................................................................................33 Commercialization ............................................................................................34 Organizing for new product Development..........................................................35 Chapter 3.................................................................................................................. 37 Research Methodology...........................................................................................38 Objective of Research............................................................................................40 Research Design....................................................................................................40 Chapter 4.................................................................................................................. 41 Data Analysis......................................................................................................... 42 Company Analysis: Universal Cables Limited......................................................42 Peer Comparison................................................................................................ 46 SWOT Analysis of Universal Cables Limited.........................................................46 Production of selected Transmission and Distribution Equipments......................47 Porters Five Forces Analysis of Power Industry in India......................................49 SWOT Analysis....................................................................................................50 New Product Development Process at Universal Cables Limited.........................52 Objective of developing new product..................................................................53 Benefit of New Initiative: Project of Special Importance......................................53 Discussion.............................................................................................................54 Indian Cable Production US$ 2.2 bn ..................................................................54 Very Large Number of Cable Producers ..............................................................54 Larger Indian Cable Producers ...........................................................................54 Very Limited Consolidation ................................................................................54 Improved Industry Profitability ...........................................................................55 Large Informal Sector ........................................................................................55 2|Page

Counterfeit Cables an Issue ...............................................................................55 Cable Companies Show Resilience .....................................................................55 Foreign Investment in JVs ..................................................................................56 Contrast with China ...........................................................................................56 Approximate opportunities for power cable industry...........................................57 Recommendations................................................................................................59 Key concerns of cable companies.......................................................................59 Books..................................................................................................................... 61 Web site................................................................................................................ 61 Organization.......................................................................................................... 61 Annexure............................................................................................................... 62 Questionnaire........................................................................................................ 63

3|Page

Chapter 1

4|Page

Introduction
Product Development strategy

Given the rapid changes in consumer tastes technology arid competition companies must develop a steady stream of new products and services A firm can obtain-new products m two ways. One is through acquisition by buying a whole company a patent or a license to produce someone else s product The other as through new-product development m the company s own research -anddevelopment department By new products we mean original products product improvements product modifications and new brands that the firm develops through its own research-anddevelopment efforts. When an organization introduces a product into a market they must ask themselves a number of questions. 1. Who is the product aimed at? 2. What benefit will they expect? 3. How do they plan to position the product within the market? 4. What differential advantage will the product offer over their competitors? New products continue to fail at a disturbing rate. One source estimates that more than 90 percent of all new products fail in within 2 years. Another-study suggested that of the staggering 25,000 new consumer foods, beverages, beauty and healthcare products to hit the market each year, only 40 percent will be around 5 years later. Moreover failure rates for new industrial products may be as high as 30 percent. Why do so many new products fail? There are several reasons. Although an idea may be good but the market size may have been overestimated. Perhaps the actual product was not designed as well as it should have been. Or maybe it was incorrectly positioned in the market priced too high or advertised poorly. A high-level executive might push a favorite idea despite poor marketing research findings. Sometimes the costs of product development are higher than expected, and sometimes competitors fight back harder than Expected.

5|Page

Indian Electrical Equipment Industry

Indian Electrical Equipment Industry, though growing still, is showing signs of slowdown during the second successive quarter of the current financial year. The industry, which indicated reversal of trend even before the global financial crisis with a posting of an overall growth of 11.8% in the 1st quarter down from 14.5% in the 1st quarter of last fiscal. The growth has now further decelerated to 6.6% in the 2nd quarter. Consequently, the half yearly growth registered is 8.57% down from 19.6% of the previous financial year. The growth figures reported are in terms of volume. Additionally, the major metals like copper, aluminium, which were at their peak during the 2nd quarter impacted business margins and lowered domestic demand. IEEMA, the apex body representing the Indian Electrical Equipment industry, which monitors the growth based on the compiled and monitored production and sales data from its members on regular basis, had raised the red flag as early as the last quarter of the year 2007-08. Although most of the product groups showed a decline in growth, some products like conductors and power transformers could buck the trend and have shown remarkable growth of 33.6% and 30.6% respectively. The growth in conductors is attributed to the flow of orders from the single largest customer i.e. PowerGrid, the suppliers are optimistic about the order flow in near term coupled with a good export demand. Power transformers have also clocked in an exceptional growth of 30.6% including 50% growth in exports. Demand from upcoming evacuation systems has helped the 400 KV and above segment to grow by about 10% Delays in funding and order finalizations for the Government sponsored program - RGGVY and by many other utilities has resulted in decline in demand for distribution Transformers to the extent of 10% in 1st Quarter, further reducing to 22% till 1st half of the fiscal. Deceleration in growth is also visible in the switchgear segment, where the half yearly growth has reduced to a mere 5% from 11% in the 1st quarter. Slump in the construction projects has resulted in slowdown in growth for LV switchgear like MCBs, ELCBs, MCCBs, fuses, contactors etc. However, launching of the revised National Electricity Code for buildings and promotion of awareness for safety may create some demand in near future. High voltage breakers have grown by just 4%. But, breakers of rating above 220 KV, which are an integral part of power transmission system, have declined by 20%

6|Page

The cable industry registered an overall growth of 9.7% propelled by 15.6% growth in power Cables segment. It is also experienced that the domestic demand is rising especially for cables above 33 kV. However, demand for railway signaling cables has reduced sharply. Capacitors, being the last items in the power T&D segment are witnessing a surge in demand to 35.3% mainly for above 132 KV class, which is a normal fallout of last years growth in the sector. Rotating machines, which cater to various core sectors, has reported a growth of 12.6%. Demand is mainly for motors above 355 frame sizes indicating a positive momentum in the core sector industries. Captive power generation by SMEs and telecom tower segment continues to add demand for alternators, which has shown a growth of 15.6%. The Indian electrical industry is hoping for an urgent stimulus from the Government to spur the domestic demand and a need for faster implementation of the on-going projects for augmenting power generation, transmission and distribution systems like RAPDRP (APDRP II) and RGGVY. Whereas the funded projects may not be affected, the non-funded and BOT projects are likely to be impacted with the squeeze in money supply and cautious approach of project builders and investors. Experts like IEEMA says a close watch is needed on the scenario emerging due to the global meltdown since a further slowdown in domestic and exports demand, resulting in over capacities could create problems for the industry. On the flip side, however, the recent reduction in prices of the major raw materials like copper, aluminium, steel, fuel and polymers could stimulate the demand with reduction in project costs. A strong dollar would also help exporters and especially those whose value additions are high and who do not depend on imports to a large extent.

7|Page

8|Page

Product

Weightages

1st Quarter 2008-09 20.75 17.94 17.65 8.99 18.4 1.45 25.28 22.35 -0.06 1.52 11.07 12.06 24.04 14.96 36.77 -13.50 5.03 14.53 13.74 13.96 -16.24 -16.24 11.22

HY 200809 13.42 25.00 15.55 4.04 12.6 -7.70 12.86 8.76 -5.19 4.43 5.03 15.71 -8.29 9.69 30.41 -21.93 -0.29 52.63 21.39 35.27 -2.28 -2.28 10.05
9|Page

LT Motors HT Motors Alternators FHP Motors Rotating Machines Power Contactors LT Circuit Breakers MCB S/F & F/S Units HT Circuit Breakers Switchgears Power Cables: PVC Control Cables & other Special Purpose Cables Cables Power Transformers Distribution Transformers Transformers HT Capacitors LT Capacitors Capacitor Industry Energy Meters Energy Meters T.L.T.

7.6 1.3 2.5 1.7 13.1 1.4 3.7 2.4 0.8 6 14.3 20.9 6.7 27.6 8.7 14.9 23.6 0.2 0.5 0.7 2.6 2.6 9.5

Conductors Transmission Lines Total

8.6 18.1 100

20.31 15.54 11.79

33.58 19.46 8.57

Growth Rate Of Industrial Production

Sector 1995- 199696 97 Manufacturing Mining & Quarrying Electricity Overall 14.1 9.7 8.1 13.1 7.3 -1.9 4.0 6.1

Growth Rate 1997- 1998- 1999- 2000- 2001- 2002-03 98 99 00 01 02 6.6 7.0 6.6 6.6 4.4 -0.8 6.4 4.1 7.2 1.0 7.3 6.6 5.4 3.7 4.0 5.1 2.9 0.5 3.1 2.6 6.0 5.8 3.2 5.8

Date Source : C.M.I.E. (Sept 2003)

10 | P a g e

Indian Cable Industry Status

A whole range and variety of cables manufactured today in India includes PVC / FRLS cables, XLPE cables, submarine cables, aerial bunched conductor cable, telecommunication cable such as jelly filled cables, optical fibre cables etc. The cable industry may be mainly divided into four segments viz; house wiring (upto 440V), LT (1.1 to 3.3kV), HT (11 to 66kV), EHV (66kV). There is a definite upward technological movement along with the growth rate in cables and wire industry in India. But consumption has fallen by more than the rate of growth. Slow down in power generation sector has direct effect on cable industry and its power segment, in particular, resulting into reduced demand as State Electricity Boards (SEBs) are the principal customers of this segment. The LT cable segment and house wiring segment show moderate increase because of infrastructure and construction boom. The demand for optical fiber cable is expected to grow at compounded annual growth rate of 17% to 1.8-2.4 million fiber kilometers over the next 3 years as producers are reporting healthy order book position on the back of increased demand for broadband deployment. But at the same time, price realization for OFC will decrease owing to competition from global players as custom duties have been abolished under the IT agreement with effect from April 1, 2005. Large-scale deployment using wireless services is expected to limit the demand for wireless services, thus adversely affecting Jelly filled telecom cables (JFTC) demand. The demand for JFTC is expected to decline at compounded annual rate of 11% between 2003-04 and 2006-07and will eventually be restricted to replacement and maintenance demand. Intense competition will continue to strain the margins of JFTC producers over the medium term. The abolition of the custom duty on JFTC and OFC in the budget is expected to have a negative impact on domestic producers. The reduction in the custom duty on raw materials like copper, polyethylene and polypropylene will partially offset the decrease in the duties on finished goods. A major worry of the cable manufacturers is exorbitant cost of raw material namely aluminium, copper, XLPE and PVC compounds accounting for close to 60% of the production cost. Due to this, Indian cable makers are left behind in global competitiveness. However, the industry hopes that with increase in government spending on the infrastructure and restructuring of SEBs, the fortunes of the industry will improve.

11 | P a g e

Research And Development Scenario In India

What customer demands today is high quality of electrical and electronics product. Further, with rapid change in market environment, high degree of product innovation is demanded. This is where Research and Development activities play an important role. Focus on R & D activity is essential for improvement in the quality of products, upgrading the existing technologies and developing new products for diversification. Well-established R & D facilities are key factor for development of industry. In India, renowned laboratories like Central Power Research Institute (CPRI), Electrical Research and Development Association (ERDA), CEL are well equipped with the most advanced product testing facilities to meet international standards. Most of the major electrical and electronics manufacturing companies in India has strong R & D base. Product testing / certification in any foreign country is very expensive process adding financial burden to manufacturers. National Accreditation Board for Testing and Calibration Laboratories (NABL) has been granted a 4-year term as an accreditor of testing and calibration laboratories by APLAC & ILAC through Mutual Recognition Agreement (MRA). This allows entry for goods tested by any NABL accredited laboratories in India, into MRA partner countries.

12 | P a g e

Growth Of Indian Electrical Industry

Indian electrical industry has registered about 19.3% growth the year 2004-05 as compared to the same period for the year 2003-04. The well conceived APDRP programme and passing of Electricity Act 2003 have provided a ray of hope to the industry. Almost all sectors of electrical industry are indicating growth. Product like meter shows technology shift, as there is more demand for static meter than conventional electromagnetic meter. The general buoyancy in the Indian Economy would then create a demand for electrical products through growth of general industrial and economic development. From the experiences of the past few years, it can be confidently said that the Indian industry has faced the critical challenges well and survived in the most difficult times. In current favourable market scenario today, the electrical industry can certainly look forward for growth.
Future

Indias vibrant economy needs matching improvements in the infrastructure. Power sector will play important role in the economic development and hence need focused attention. Ministry of Power has taken number of legislative and policy initiatives to expedite power sector development. All these initiatives provide loads of investment opportunities to FIIs and other investors. The power sector reforms if implemented as scheduled will create large business for power sector equipment manufacturers and service providers. We can expect a continuous handsome growth for this sector for at least next five years. Indias vibrant economy needs matching improvements in the infrastructure. Power sector will play important role in the economic development and hence need focused attention. Ministry of Power has taken number of legislative and policy initiatives to expedite power sector development. All these initiatives provide loads of investment opportunities to FIIs and other investors. The power sector reforms if implemented as scheduled will create large business for power sector equipment manufacturers and service providers. We can expect a continuous handsome growth for this sector for at least next five years.

13 | P a g e

About the Company

Universal Cables Limited (UCL) was established in 1962 by late Shri M.P. Birla, the then Chairman, with modern plant for manufacture of Paper Insulated Cables. Since then, the Company has made rapid progress achieving a world class reputation. n the year 1977, collaborating with M/s. Asea Kabels AB, Sweden (now called ABB Cables), UCL brought XLPE technology to India. The Companys other collaborations are with internationally acclaimed leaders in their respective fields. UCL is a leader in the Indian Cable Industry with the widest product range. The cable division has a very wide range of product. It includes Low Voltage, Medium Voltage and Extra High Voltage XLPE Power Cables upto 500 kV grade, PVC and Rubber Insulated Power Cables upto 11 kV grade, Control and Instrumentation Cables upto 1.1 kV for any number of Cores/Pairs and speciality Rubber Cables for Trailing/Flexible standards to suit to customer requirements. Its Cables and Capacitors are known by the Brand Name UNISTAR. To meet the growing demand of Extra High Voltage Cables (220 kV and above), UCL has already ventured into this market segment. For this UCL has adopted VCV process at its Satna Plant in technical collaboration with the World Leader in Cable technology, Furukawa Electric Co. Ltd., Japan. The technical collaboration covers Cable designing, Manufacturing, Laying, Jointing, Testing and Installation. UCL has also tied-up with Viscas Corporation, Japan (Power Cable Alliance of Furukawa & Fujikura) for sourcing new generation cable jointing accessories for 220 kV and above. Apart from manufacturing Electrical Cables for multifarious applications, UCL is having full fledged EPC Division to execute Turnkey Contracts for various Utilities/Projects. With this, UCL has now positioned itself as a complete solution provider for EHV Underground Power Cables Transmission System upto 500 kV, involving designing, manufacturing, laying, jointing and installation. The 220 kV Cables prototype sample manufactured by UCL has been successfully Type Tested as a complete cable system at CPRI, Bangalore creating a land mark in itself as this is the first successful 220 kV cables system Type Test in India. UCL has successfully executed orders for 220 kV Cables. The Capacitor Division of the Company, which commenced operation in the year 1967, manufactures world class All Poly Propylene (APP) Capacitors for AC applications. This Division was set up in collaboration with Toshiba, Japan for manufacture of Paper and Power Capacitors. In 1977, this Division entered into another technical collaboration with General Electric Company of
14 | P a g e

USA for manufacture of Mixed Dielectric Capacitors and in 1985 for manufacture of All PP Dielectric Capacitors. The product range includes Low & High Voltage Capacitors (415 VAC to 220 KVAC), APFC Panels, Medium Frequency Water Cooled Capacitors for Induction Furnace Application, Surge Protective Capacitors, Tuned and Detuned Filter Capacitors, DC Capacitors. This Division also provides services like Automatic PF Correction Systems, Harmonic Analysis and PF Studies. Today, The Capacitor Division is rated to be the foremost manufacturer of All PP Power Capacitors in LT & HT Range in the country.
Introduction

Extra High Voltage Cables

UNIVERSAL CABLES LTD, the pioneer of XLPE cables in India, manufactures Extra High Voltage (EHV) XLPE cables in the range of 66-220 kV using Vertical Continuous Vulcanising (VCV) technology in technical collaboration with World Leader in Cable manufacturing, FURUKAWA ELECTRIC CO. LTD. (In association with VISCAS Corporation, Japan). This technology for EHV XLPE Cable manufacturing process is the only of its kind in the Country. EHV Underground Power Transmission is the solution for meeting todays growing power demand of the power starved Metro Cities. Underground Power Transmission System requires highest reliability to ensure uninterrupted power supply. Unistar EHV cable, manufactured using VCV technology with proven know-how from FURUKAWA ELECTRIC CO. LTD and also having in-house engineering expertise for system designing, cable jointing and installation, can guarantee this requirement. The main cutting edge features of this technology as True simultaneous triple extrusion with single (common) cross-head, Dry cure dry cooled process, Dimensional accuracy for perfect geometry
15 | P a g e

with Zero eccentricity/ ovality of the insulation, Class 1000 cleanliness level with completely closed material handling system, Online X-Ray monitoring system, Direct gravitational feeding of XLPE compound, Control and Monitoring in production process using SCADA, all add up to unmatched quality standard to ensure reliable and efficient performance of the cable throughout its service life.
Product Range

VOLTAGE GRADE 66 kV

CROSS SECTIONAL AREA (sqmm) 240 to 2000

TYPE OF DESIGN

SPECIFICATION

Lead sheath Corrugated / aluminium sheathed Polylaminate with or without Copper screen as applicable Lead sheath Corrugated / aluminium sheathed Polylaminate with or without Copper screen as applicable Lead sheath Corrugated / aluminium sheathed Polylaminate with or without Copper screen as applicable

IS 7098 Part-III IEC 60840 IEC 62067

110/132 kV 240 to 2000

IS 7098 Part-III IEC 60840 IEC 62067

220 kV

500 to 2000

IS 7098 Part-III IEC 60840 IEC 62067

Conductor shall be compacted circular up to 1000 sqmm and Milliken type from 1200 sqmm and above sizes. 1000 sqmm size conductor shall be available both in compacted circular as well as Milliken design.

Manufacturing Facilities
16 | P a g e

Manufacturing Range

Product

Voltage Class

Size

XLPE Power Cables

1.1 - 500 kV

16 - 2000 Sq.mm

PVC Power Cables

1.1 - 11 kV

16 - 2000 Sq.mm

Elastomeric Cables .

250 V - 33 kV

0.5 - 630 Sq.mm

Control & Instrumentaion Cables ( XLPE / PVC / Elastomeric )

110 V - 1.1 kV

0.5 - 6.00 Sq.mm Up to 61 Cores

Speciality Cables

As per Customer Requirement

As per Customer Requirement

LV & HV Capacitors

415 V - 220 kV

1 - 50000 KVAR (Unit / Bank)

UCL undertake the complete solution package for Underground Power Transmission involving system design, supply of cables, cable jointing and termination, laying, installation and
17 | P a g e

commissioning. UCL have specialized cable jointers with expertise and long experience upto 220 kV class cables. UCL offers its know-how on specialized underground cable projects with most efficient and cost effective solution.
Cable Monitoring System (CMS)

On demand, UCL can provide Cable Monitoring System using Distributed Temperature Sensor (DTS) system and offers complete package including installation and commissioning, training and maintenance. DTS System, using Optic Fibre Cables is recognised world over as the most reliable technology for monitoring optimal power transmission and distribution in Power Cable System and its protection. This system enables the user to monitor and record the Real Time Temperature profile of the entire power route and avoid development of hot spots and situation leading to thermal run away of cable and its joints. DTS system measures temperature either by using optic fibre cable embedded with the power cable or an external optical fibre cable running along the length of power cable. Continuous temperature profile using a single optical fibre as the sensing element Sensor length up to many kilometres Monitor thousands of points in seconds

220 kV Cable installation with Outdoor Termination

18 | P a g e

132 kV Termination installed on Overhead Transmission Tower

132 kV Cable installation for Power Evacuation

About the Product

Electric power transmission or "high voltage electric transmission" is the bulk transfer of electrical energy, from generating power plants to substations located near to population centers. This is distinct from the local wiring between high voltage substations and customers, which is typically referred to as electricity distribution. Transmission lines, when interconnected with each other, become high voltage transmission networks. In the India, these are typically referred to as "power grids" or sometimes simply as "the grid". Historically, transmission and distribution lines were owned by the same company, but over the last decade or so many countries have introduced market reforms that have led to the separation of the electricity transmission business from the distribution business.

19 | P a g e

Transmission lines mostly use three phase alternating current (AC), although single phase AC is sometimes used in railway electrification systems. High-voltage direct current (HVDC) technology is used only for very long distances (typically greater than 400 miles, or 600 km); undersea cables (typically longer than 30 miles, or 50 km); or for connecting two AC networks that are not synchronized. Electricity is transmitted at high voltages (110 kV or above) to reduce the energy lost in long distance transmission. Power is usually transmitted through overhead power lines. Underground power transmission has a significantly higher cost and greater operational limitations but is sometimes used in urban areas or sensitive locations. A key limitation in the distribution of electricity is that, with minor exceptions, electrical energy cannot be stored, and therefore it must be generated as it is needed. A sophisticated system of control is therefore required to ensure electric generation very closely matches the demand. If supply and demand are not in balance, generation plants and transmission equipment can shut down which, in the worst cases, can lead to a major regional blackout. Power Cables Electric power can also be transmitted by underground power cables instead of overhead power lines. They can assist the transmission of power across:

Densely populated urban areas Areas where land is unavailable or planning consent is difficult Rivers and other natural obstacles Land with outstanding natural or environmental heritage Areas of significant or prestigious infrastructural development Land whose value must be maintained for future urban expansion and rural development

Some other advantages of underground power cables:

Less subject to damage from severe weather conditions (mainly lightning, wind and freezing) Greatly reduced emission, into the surrounding area, of electromagnetic fields (EMF). All electric currents generate EMF, but the shielding provided by the earth surrounding underground cables restricts their range and power. Underground cables need a narrower surrounding strip of about 110 meters to install, whereas an overhead line requires a surrounding strip of about 20200 meters wide to be kept permanently clear for safety, maintenance and repair. Underground cables pose no hazard to low flying aircraft or to wildlife, and are significantly safer as they pose no shock hazard (except to the unwary digger). Much less subject to conductor theft, illegal connections, sabotage, and damage from armed conflict. 20 | P a g e

Some disadvantages of underground power cables:

Undergrounding is more expensive, since the cost of burying cables at transmission voltages is several times greater than overhead power lines, and the life-cycle cost of an underground power cable is two to four times the cost of an overhead power line. Above ground lines cost around $10 per foot and underground lines cost in the range of $20 to $40 per foot. Whereas finding and repairing overhead wire breaks can be accomplished in hours, underground repairs can take days or weeks and for this reason redundant lines are run. Underground power cables, due to their proximity to earth, cannot be maintained live, whereas overhead power cables can be. Operations are more difficult since the high reactive power of underground cables produces large charging currents and so makes voltage control more difficult.

The advantages can in some cases outweigh the disadvantages of the higher investment cost, and more expensive maintenance and management. Most high voltage cables for power transmission that are currently sold on the market are insulated by a sheath of cross-linked polyethylene (XLPE). Some cables may have a lead or aluminium jacket in conjunction with XLPE insulation to allow for fiber optics to be seamlessly integrated within the cable.] Before 1960, underground power cables were insulated with oil and paper and ran in a rigid steel pipe, or a semi-rigid aluminium or lead jacket or sheath. The oil was kept under pressure to prevent formation of voids that would allow partial within the cable insulation. There are still many of these oiland-paper insulated cables in use worldwide. Between 1960 and 1990, polymers became more widely used at distribution voltages, mostly EPDM (ethylene propylene diene M-class); however, their relative unreliability, particularly early XLPE, resulted in a slow uptake at transmission voltages. While cables of 330 kV are commonly constructed using XLPE, this has occurred only in recent decades.

Introduction XLPE Power Cables

For several years, the use of Overhead lines has been traditionally the most economical and reliable means of power supply to Urban as well as Rural areas. The ever increasing demand of energy for Industrial and Domestic applications led to a steady rise in transmission voltages over the years e.g. 6.6/11 KV to 33 KV to 400 KV and even 800 KV today. The transfer of power at such high voltage levels necessitates installation of high rise bulky towers and also leads to generation of powerful magnetic field which is hazardous for inhabitants and environment of densely populated areas. In view of public safety, aesthetic and environmental concerns, the use of overhead lines are nowa-days limited to primary transmission of bulk power over the long distances to outskirts of a city or town.
21 | P a g e

As a safe and reliable alternative to Overhead lines, underground XLPE cables are being used today worldwide for transfer of power inside semi-urban / urban areas for Industrial & Domestic needs. All new installations in urban areas are now invariably of XLPE Cables and overhead lines located in densely populated areas are being progressively replaced by underground XLPE cables worldwide. The introduction of technologically superior Cross linked Polyethylene (XLPE) Cables in late 60s as replacements of Paper Insulated Lead Cover (PILC) Cables proved to be a milestone and since then XLPE Cables are an integral part of infrastructure in Energy Transmission & Distribution Network worldwide on account of following critical applications. MV XLPE Power Cables HV/EHV XLPE Power Cables : : Primary Distribution of Energy for Industrial & Domestic (11kV-33kV) Applications. For secondary transmission of power in Power Plants, (66-400 kV) Switch Yards and receiving stations. For Primary Transmission of Bulk Power in densely Populated metropolitan and other cities.

In Indian context the use of 220 kV imported XLPE Power Cables for carrying bulk power inside the densely populated cities is of vital importance as apart from our four metropolitan cities there are many other cities experiencing severe power shortage. Since the expertise in the country is limited to 132 kV, there is an urgent need to upgrade the XLPE technology to 400 kV level keeping in mind the future needs of the country.
Background XLPE Power Cables

The use of Cross linked Polyethylene (XLPE) for insulation of Medium Voltage Power Cables (10 KV) commenced in late sixties. In the past 45 years, continuous improvements in material and manufacturing technologies based on service experience led to use of XLPE Power Cables up to 400 KV commercially and 500 KV XLPE Power Cables are currently under field evaluation in many countries. In India, XLPE Cables having a limited range up to 132 KV are being manufactured indigenously and 220 KV and 400 KV XLPE Power Cables are being imported presently. The development profile of XLPE Power Cable over the period 1960-2005 is enclosed herein.

An Overview of Technology Development & Upgradation Programme

Project Title

22 | P a g e

Development & Upgradation of Indigenous Technology for improving the manufacturing process of XLPE Power Cables.
Objective

To enhance the expertise and capability in the field of manufacturing technology of XLPE Power Cables in line with the technological development taking place worldwide. To establish world class manufacturing facility for bridging the existing technology gap and meeting the emerging demand of 220 KV Extra High Voltage XLPE Power Cables in the country which are being imported presently.
To further upgrade the technology for the future needs of 400 KV Extra High Voltage XLPE

Power Cables in the country. To attain requisite competitiveness & cost effectiveness for Domestic and Export Business through : Quality Upgradation Enlargement of the Manufacturing Range Improved Productivity Optimised consumption of raw materials Efficient Energy Management Overall operational flexibility.
Preamble

Universal Cables Limited pioneered the introduction of XLPE Technology in the country by commencing the manufacture of Medium Voltage (11 kV) XLPE Cables in the year 1978.

Since then, there is no looking back and keeping in pace with the domestic requirements UCL developed necessary skill and expertise for the XLPE Cables up to 132 kV employing the Catenary Continuous Vulcanisation (CCV) Process.

23 | P a g e

The existing CCV lines have now become very old and have limited manufacturing range. Keeping in mind, the tremendous technology development having taken place over the years in the field of processing technology of XLPE Cables, this initiative by the Company will go a long way to fulfil the future needs of the country as well as creation of exports opportunities.

The Upgradation Proposal of Universal Cables Limited has been conceived with an objective to fulfil the future needs of the country with the National objective of Power Sector Reforms.

A Brief On Product And Technology

Product Product Applications o MV XLPE Power Cables o HV XLPE Power Cables o EHV XLPE Power Cables o Existing Manufacturing o Upgraded Manufacturing
: Cross linked Polyethylene (XLPE) insulated Power Cables in

11- 400 KV range.

: : Primary Distribution of Powers. (11kV-33kV) : Primary Distribution & Secondary Transmission of Power.

(66kV to 132kV)
: Primary Distribution & Secondary Transmission of Power.

(66kV to 132kV)
: Catenary Continuous Vulcanisation Technology

(CCV)

Process.
: Vertical Continuous Vulcanisation Technology (Proposed)

(VCV) Process.

24 | P a g e

Chapter 2

25 | P a g e

Review of Literature
Product strategies

When an organization introduces a product into a market they must ask themselves a number of questions.

Who is the product aimed at? What benefit will they expect? How do they plan to position the product within the market? What differential advantage will the product offer over their competitors?

We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer (P.Tailor 7/00) Philip Kotler in Principles of Marketing devised a very interesting concept of benefit building with a product.

Kotler suggested that a product should be viewed in three levels.

Level 1: Core Product : What is the core benefit your product offers? Customers who purchase a camera are buying more than just a camera they are purchasing memories. Level 2: Actual Product : All cameras capture memories. The aim is to ensure that your potential customers purchase your one. The strategy at this level involves organizations

26 | P a g e

branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors. Level 3: Augmented product : What additional non-tangible benefits can you offer? Competition at this level is based around after sales service, warranties, delivery and so on. John Lewis a retail departmental store offers free five year guarantee on purchases of their Television sets, this gives their `customers the additional benefit of peace of mind over the five years should their purchase develop a fault.

Idea generation

New product development starts with idea generation the systematic search for new product ideas. A company typically has to generate many in order to find a few good once. According to one well-known management consultant, For every 1000 ideas, only 100 will have enough commercial to promise to merits a small scale experiment, only 10 of those will warrant substantial financial commitment and of those a couple will turn out to be unqualified successes. His conclusion: If you want to find a few ideas with the power to enthrall customer, foil competition, and thrill investors you must first generate hundreds and potentially thousands of unconventional strategic ideas. Internal Idea Sources Using internal sources the company can find new ideas through formal research and development. It can pick the brains of its executives Scientists engineers manufacturing staff Sand sales people Some companies have developed successful entrepreneurial programs that encourage employees to think up and develop new product ideas. For example, 3Ms well known 15-percent rule allow employees to spend 15 percent of their time bootlegging working on projects of personal interest whether or not those project directly benefit the company. Companies sometimes look for creative innovation approaches that overcome barriers to the free flow-of new product ideas For example firms like Eureka Rancha well known new product hatchery employ both method and madness in helping companies to jumpstart their new product idea generation process. External Idea Sources Good new product idea also come from watching and listening to customers The company can analyze customer questions and complaints to find new products that better solve consumes problems Company engineers or salespeople can meet with and work. Alongside customers to get suggestions and ideas The Company can conduct surveys or focus groups to learn about Consumer needs and wants. Heinz did just that when its researchers approached children who consume more than half of the ketchup sold find out what would make ketchup more appealing to them The answer change the color So, Heinz developed and launched EZ Squirt green ketchup that comes with a squeezable bottle targeted at kids Blastin Green ketchup was a smash hit, so Heinz followed up with an entire rainbow of EZ Squirt colors, including Funky Purple Passion Pink, Awesome Orange, Totally Teal, and Stellar Blue. The EZ Squirt bottle s special nozzle also emits a thin ketchup stream, so tykes can autograph their burgers (or squirt someone across the table though Heinz neglects to mention that). In all the new line earned the Company a 5 percent increase
27 | P a g e

in sales ii the first year after hitting the grocery shelf. Consumers often create new products and uses on their own and companies can benefit by putting them on the market. For example for years customers were spreading the word that Skin-so-soft bath oil and moisturizer was also a terrific bug repellent. Whereas some Consumers Were content simply to bathe an water scented with the fragrant oil others carried it in their backpacks to mosquito-infested campsites or kept a bottle on the deck of their beach houses Avon tuned the idea into a complete line of Skin-So-Soft Bug Guard PLUS lR335 products including the Insect Repellent Gentle Breeze Moistures Sun block Lotion SPF 30 a combination moisturizer insect repellent and sunscreen. The search for new-product ideas should be systematic rather than haphazard. Otherwise few new ideas will surface and many good ideas will sputter and die Top management can avoid these problems by installing an idea management system that directs the flow of new ideas to a central point where they can be collected reviewed and evaluated hi setting up such a system the company can do any or all of the following.

Appoint a respected senior person to be the companys idea manager. Create a cross-functional idea management committee consisting of people from R&D, engineering purchasing operations finance and sales and marketing to meet regri1rly and evaluate proposed new product and service ideas. Set up a toll-free number or Web site for anyone who wants to send a new idea to the idea manager. Encourage all company stakeholders-employees suppliers, distributors, dealersto send their ideas to the idea manager. Set up formal recognition programs to reward those who contribute the best new ideas.

Idea Screening

The purpose of idea generation is to create a large number of ideas. The purpose of the succeeding stages is to reduce that number. The first idea-reducing stage is idea screening, which helps spot good ideas and drop poor ones as soon as possible. Product development costs rise greatly in later Stages, so the company wants to go ahead only with the product ideas that will turn into profitable products. The object is to eliminate unsound concepts prior to devoting resources to them. The screeners must ask at least three questions:
1. Will the customer in the target market benefit from the product?

2. 3. 4. 5.

What is the size and growth forecasts of the market segment/target market? What is the current or expected competitive pressure for the product idea? What are the industry sales and market trends the product idea is based on? Is it technically feasible to manufacture the product?

28 | P a g e

6. Will the product be profitable when manufactured and delivered to the customer at the target price? Many companies require their executives to write up new-product ideas on a standard form that can be reviewed by a new-product committee. The write-up describes the product, the target market, and the competition. It makes some rough estimates of market size, product price, development time and costs, manufacturing costs, and rate of return. The committee then evaluates the idea against a set of general criteria. For example, at Kao Company, the - large Japanese consumer-products company, the committee asks questions such as these: Is the product truly useful to consumer and society? Is it good for our particular company? Does it mesh well with the companys objectives and strategies? Do we have the people, skills, and resources to make it succeed? Does it deliver more value to customers than do competing products? Is it easy to advertise and distribute? Many companies have well-designed systems for rating and screening new-product ideas.

Concept development and testing

An attractive idea must be developed into a product concept. It is important to distinguish between a product idea, a product concept, and a product image. A product idea is an idea for a possible product that the company can see itself offering to the market. A product concept is a detailed version of the idea stated in meaningful consumer terms. A product image is the way consumers perceive an actual or potential product. Develop the marketing and engineering details Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate? What benefits will the product provide? How will consumers react to the product? How will the product be produced most cost effectively? Prove feasibility through virtual computer aided rendering, and rapid prototyping What will it cost to produce it?

Concept Development

After 10 years of development, Daimler Chrysler is getting ready to commercialize its experimental fuel-cell-powered electric car. This cars nonpolluting fuel-cell system runs directly on methanol, which delivers hydrogen to the fuel cell with only water as a by-product. It is highly fuel efficient (75 percent more efficient than gasoline engines) and gives the new car an
29 | P a g e

environmental advantage over standard internal combustion engine cars or even todays stupefacient gasoline-electric hybrid cars. Last year, Daimler Chrysler put 60 F-cell cars on the road in Japan, Germany, and the United states to test their worth in everyday operation. Based on the tiny Mercedes A-Class, the car accelerates quickly, reaches speeds of 90 miles per hour, and has a 280-mile driving range, giving it a huge edge over battery-powered electric cars that travel only about 80 miles before needing 3 to 12 hours off recharging. Fuel cell systems are also being tested in busses, trucks, and other vehicles. Now Daimler Chryslers task is to develop this new product into alternative product concepts, find out how, attractive each concept is to customers, and choose the best one. It might create the following product concepts for the fuel-cell electric car:

Concept 1: A moderately priced subcompact designed as a second family car to be used around town. The car is ideal for running errands and visiting friends. Concept 2: A medium-cost sporty compact appealing to young people. Concept 3: An inexpensive subcompact green car appealing to environmentally conscious people who want practical transportation and low pollution. Concept 4: A high-end SUV appealing to those who love the space SUVs provide but lament the poor gas mileage.

Concept Testing

Concept testing calls for testing new-product concepts with groups of target consumers. The concepts may be presented to consumers symbolically or physically. Here; in words, is concept 3: An efficient fun-to drive fuel cell-powered electric subcompact car that seats four. This methanol powered high-tech wonder provides practical and reliable trans potation with virtually o pollution It goes up to 90 miles per hour and unlike battery-powered electric cars, it never needs recharging It s priced, fully equipped at $20000. For some concept tests a word or picture description might be sufficient. However a more concrete and physical presentation of the concept will increase the reliability of the concept test Today some marketers are finding innovative ways to make product concepts more real to consumer subjects For example some are using virtual reality to test product concepts. Virtual reality programs use computers and sensory devices (such as gloves or goggles) to simulate reality A designer of kitchen cabinets might use a virtual reality program to help a customer see how his or her kitschier would look and work if remodeled with the companys products. After being exposed to the concept consumers they may be asked to react to it by answering questions such as those. The answers will help the company decide which concept has the strongest appeal For example the last question asks about the consumers intention to buy suppose 10 percent of the consumers said they definitely would buy and another 5 percent said probab1y. The company could project these figures to the full population in this target group to estimate sales volume Even then the estimate is uncertain because people do not always carry out their stated intentions.
30 | P a g e

Marketing Strategy development

Suppose DaimlerChrysler finds that concept 3 for the fuel cell powered electric car tests is best The next step is marketing strategy development designing an initial marketing strategy for introducing this car to the market. The marketing strategy statement consists of three parts. The first part describes the target market the planned product positioning; and the sates, market share, and profit goals for the first few years. Thus, the target market is younger well educated moderate to high income individuals couples or small families seeking practical environmentally responsible transportation The car will be positioned as more economical to operate, more fun to drive, and less polluting than today s internal combustion engine or hybrid cars. It is also less restricting than battery powered electric cars which must be recharged regularly. The company will aim to sell 100 000 cars in the first year at a loss of not more than $15 million In the second year the company wall aim for sales of 120,000 cars and a profit of $25 million. The second part of the marking strategy statement outlines the products planned price distribution and marketing budget for the first year. The fuel cell powered electric car will be offered an three colorsred white and blueand will have optional air-conditioning and power drive features It will sell at a retail price of $20,000with 15 percent off the list price to dealers. Dealers who sell more than 10 cars per month will get an additional discount of5 percent on each car sold that month an advertising budget of $5Q million will be split 50-50 between a national media campaign and local advertising. Advertising will emphasize the cars fun spirit and low emissions. During the first year, $100,000 will be spent on marketing research to find out who is buying the car and their satisfaction levels.
Business analysis

Once management has decided on its product concept and marketing strategy it can evaluate the business- attractiveness of the proposal. Business analysis involves a review of the sales costs, and profit projections for a new product to find out whether they satisfy the companys objectives. If they do the-product can move to-the product development stage. To estimate sales, the company might look at the sales history of similar products and conduct surveys of market opinion. It can then estimate minimum and maximum sales to assess the range of risk. After preparing the sales forecast, management can estimate the expected costs and profits for the product including marketing R&D operations accounting and finance costs. The company then uses the sales and costs figures to analyze the new products financial attractiveness.

Estimate likely selling price based upon competition and customer feedback Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation Estimate profitability and breakeven point

31 | P a g e

Product development

So far for many new product concepts the product may have existed only as a word a thawing or perhaps a crude mock-up If the product concept passes the business test it moves into product development Here R&D or engineering develops the product concept into a physical product. The product development step however now calls for a large jump in investment It will show whether the product idea can be turned into a workable product. The R&D department will develop and test one or more physical versions of the product concept R&D hopes to design a prototype that will satisfy and excite consumers and that can be produced quickly aid at budgeted costs. Developing a successful prototype can take days, weeks, months, or even years. Often products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them. Here are some examples of such product tests: Procter & Gamb1e (P&G) spends $150 million on 4,000 to 5 0O studies a year test in everything from the ergonomics of picking up a shampoo bottle to how long women can keep their hands in sudsy water. On any given day subjects meet an focus groups e11 their dirty laundry to researchers put prototype diapers on their babies bottoms and rub mysterious creams on their faces Last year one elementary school raised $17000 by having students and parents take part in P&G product tests Students tested toothpaste and shampoo and ate brownies while their mothers watched advertising for Tempo tissue P&G s paper wipes packaged to fit in a car. At Gillette almost everyone gets involved in new product testing. Every working day at Gillette, 200 volunteers from various departments come to work unshaven troop to the second floor of the companys gritty South Boston plant and enter small booths with a sink and mirror. There they take instructions from technicians on the other side of a small window as to which razor, shaving cream or after shave to use The volunteers evaluate razors for sharpness of blade, smoothness of glide and ease of handling In a nearby shower room women perform the same ritual on their legs, underarms and what the company delicately refers to as the bikini area. We bleed so you. 11 get a good shave at home says one Gillette employee.
Test marketing

If the product passes functional and consumer tests, the next step is test marketing the stage at which the product and marketing program are introduced into more realistic market settings. Test marketing, gives the marketer experience with marketing the product before going to the great expense of full introduction. It lets the company test the product and its entire marketing programpositioning strategy advertising distribution pricing branding and packaging and budget levels. The amount of test marketing needed varies with each new product Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.

Produce a physical prototype or mock-up Test the product (and its packaging) in typical usage situations Conduct focus group customer interviews or introduce at trade show Make adjustments where necessary Produce an initial run of the product and sell it in a test market area to determine customer acceptance
32 | P a g e

When the costs of developing and introducing the product are low or when management as already confident about the new product the company may do little or no test marketing In fact test marketing by consumer package-goods firms has been declining in recent years Companies often do not test market simple line extensions or copies of successful competitor products For example. P&G introduced its Folgerss decaffeinated coffee crystals without test marketing and Pillsbury rolled out Chewy granola bars and chocolate covered Granola Dips with no standard test market. However when introducing a new product requires a big investment or when management is not sure of the product or marketing program a company may do a lot of test marketing. For instance Lever USA spent 2 years testing its highly successful Lever 2000 bar soap in Atlanta before introducing it internationally. Frito-Lay did 18 months of testing in three markets on at least five formulations before introducing its Baked Lays line of low fat snacks. And Nokia test-marketed its N-Gage cell phone/mobile game player extensively in London before introducing it worldwide.
Standard test Marketing

Using standard test markets, the company finds a small number of representative test cities conducts a full marketing campaign in these cities and uses store audits consumer and distributor surveys, and other measures to gauge product performance. The results are used to forecast national sales and profits discover potential product problems and fine tune the marketing program. Standard test markets have some drawbacks. They can be very costly and they may take a long timesome last as long as 3 to 5 years Moreover competitors can monitor test market results or even interfere with them by cutting their prices in test cities increasing their pro motion or even buying up the product being tested. Finally test market give competitors a look at the companys new product well before it is introduced nationally Thus competitors may have tune to develop defensive strategies and may even beat the company s product to the market For example while CLOROX was still test marketing its new detergent with bleach in selected markets P&G launched Tide with Bleach nationally Tide with Bleach quickly became the segment leader GLOROX later withdrew its detergent Despite these disadvantages standard test markets are still the most widely used approach for major in-market testing However many companies today are shifting toward quicker and cheaper controlled and simulated test marketing methods.
Control Test Marketing

Several research firms keep controlled panels of stores that have agreed to carry new products for a fee Controlled test marketing systems like AC Nielsens Scan track and Information Resources Inc s (IRI) Behavior Scan track individual consumer behavior for new products from the television set to the checkout counter. In each Behavior Scan market WI maintains a panel of shoppers who report all of their purchases by showing an identification card at check-out in participating stores and by using a handheld scanner at home to record purchases at nonparticipating stores. Within test stores, IRI controls such factors as shelf placement price and in-store promotions for the product being tested IRI also measures TV viewing in each panel household and sends special commercials to panel member television sets Direct mail promotions can also be tested.
33 | P a g e

Commercialization

Commercialization is the process or cycle of introducing a new product into the market. The actual launch of a new product is the final stage of new product development, and the one where the most money will have to be spent for advertising, sales promotion, and other marketing efforts. In the case of a new consumer packaged goods, costs will be at least $ 10 million, but can reach up to $ 200 million. In general one can say that it will cost about a dollar for each dollar of sales turnover achieved. Commercialization is often confused with sales, marketing or business development. The Commercialization process has three key aspects: 1. The funnel. It is essential to look at many ideas to get one or two products or business that can be sustained long-term 2. It is a stage-wise process and each stage has its own key goals and milestones 3. It is vital to involve key stakeholders early, including customers Commercialization of a product will only take place, if the following four questions can be answered: When? The company has to decide on the introduction timing. When facing the danger of cannibalizing the sales of the companys other products, if the product can be improved further, or if the economy is down, the launch should be delayed. Every single bank in Nigeria today has been commercialized. But its sad enough to know that most of these banks are not straight forward in their various dealings with their clines/customers. Where? The company has to decide where to launch its products. It can be in a single location, one or several regions, a national or the international market. This decision will be strongly influenced by the companys resources, in terms of capital, managerial confidence and operational capacities. Smaller companies usually launch in attractive cities or regions, while larger companies enter a national market at once. Global roll outs are generally only undertaken by multinational conglomerates, since they have the necessary size and make use of international distribution systems (e.g., Unilever, Procter & Gamble). Other multinationals use the lead-country strategy: introducing the new product in one country/region at a time (e.g. Colgate-Palmolive). To Whom? The primary target consumer group will have been identified earlier by research and test marketing. These primary consumer groups should consist of innovators, early adopters, heavy
34 | P a g e

users and/or opinion leaders. This will ensure adoption by other buyers in the market place during the product growth period. How? The company has to decide on an action plan for introducing the product by implementing the above decisions. It has to develop a viable marketing mix and create a respective marketing budget. Test marketing gives management the information needed to make a final decision about whether to launch the new product. If the company goes ahead with commercialization introducing the new product into the marketit will face high costs The Company may have to build or rent a manufacturing facility. And it may have to spend in the case of a new consumer packaged goods between $10 million and $200 million for advertising sales promotion, and other marketing efforts in the first year. The company launching a new product must first decide on introduction timing. If DaimlerChrysler s new fuel cell electric car will eat into the sales of the company s other cars its introduction may be delayed If the car can be improved further, or if the economy is down, the company may wait until the following year to launch it. Next, the company must decide where to launch the new productin a single location, a region the national market or the international market. Few companies have the confidence capital and capacity to launch new products into full national or international distribution. They will develop a planned market rollout over time. In particular small companies may enter attractive cities or regions one at a time larger companies, however may quickly introduce new models into several regions or into the full national market. The following are the steps of commercialization.

Launch the product Produce and place advertisements and other promotions Fill the distribution pipeline with product Critical path analysis is most useful at this stage

Organizing for new product Development

Many companies organize their new product development process into the orderly sequence of starting-with idea generation and ending with commercialization. Under this sequential product development approach one company department works individually to complete its stage of the process before passing the new product along to the development next department and stage. This orderly step-by step process can help bring control to complex and risky projects. But it also can be dangerously slow. In fast changing highly competitive works markets such slow but sure product development can result in product failures lost sales arid profits and crumbling market positions Speed to market and reducing new product development cycle time have become pressing concerns to companies in all industries.

35 | P a g e

In order to get their new products to market more quickly many companies are adopting a faster team-oriented approach called simultaneous product development (or team bad or collaborative product-development) Under this approach company departments work closely together through cross functional teams overlapping the steps in the product development process to save time and increase effectiveness Instead of passing the new product from department to department the company assembles a team -of people from various departments that Stays with the new product from start to finish. Such teams usually include people from the marketing finance design, manufacturing & legal departments and even supplier and customer companies. The top management gives the product development team general strategic direction but no clear cut product idea or work plan It challenges the team with stiff and seemingly contradictory goals turn out carefully planned and superior new products but do it quickly and then givers the team whatever freedom and resources it needs to meet the challenge In the sequential process a bottleneck at one phase can seriously slow the entire protect In the simultaneous approach, if one functional area hits snags it works to resolve them while the team moves on.

36 | P a g e

Chapter 3

37 | P a g e

Research Methodology
Data collection from the following sources: Primary (surveys using questionnaire and interviews) Secondary o News papers o Subject books, articles and notices from public and college library o Magazines o Journal o Internet

Use of the various trade websites, BSNL telephone directory services to access various organizations, dealers, and suppliers detailed database. Cold calling and sending online questionnaire to organizations and dealers via internet.

Fixing up an appointment with them. Contact the persons working or involved in the cable installation process. Collecting detailed information and data of power transmission requirements by personal interview. Compilation and sorting of observations and collected data. Formulating the data thus obtained in a suitable format and quantity. Analysis of obtained data. Inference from the analysis. Deriving at the applicability of the study to the Power sector.

38 | P a g e

39 | P a g e

Objective of Research
The main objective of the research report is to study the scope of product development in the high power transmission sector. The project involves the study of demand of these high power transmission products in the Indian markets and the methods to increase the companys share by investing in these future arenas of new product development since India is observing a huge development in its Infrastructural needs.

Research Design
The research involves working with the market research department of the company where the main responsibility allotted were to:

Creating database of all the companys suppliers and customers. Prepare a questionnaire about the needs of the customers for the power transmission cables. Taking personal interviews with the industry experts and the customers. Finding out the technical specifications of these demands. Finding out the scope of these new demands to build a new product. Companys current position analysis and future growth prospects of market coverage.

40 | P a g e

Chapter 4

41 | P a g e

Data Analysis
Company Analysis: Universal Cables Limited

Universal Cables Limited engages in the manufacture and sale of power cables, capacitors, and optical fiber cables in India and internationally. It offers XLPE power cables, PVC and rubber insulated power cables, control and instrumentation cables, and rubber cables; low and high voltage capacitors, APFC panels, medium frequency water cooled capacitors, surge protective capacitors, tuned and detuned filter capacitors, and DC capacitors, as well as provides PF correction systems, harmonic analysis, and PF studies. The company offers its cables and capacitors products under the UNISTAR brand name. Universal Cables Limited, through its joint venture with Birla Ericsson Optical Limited, manufactures optical fibre cables and jelly filled telephone cables. It also involves in the system design, supply of cables, cable jointing and termination, laying, installation, and commissioning of underground power transmission networks. The company exports its products primarily to the Middle East, the Far East, Africa, Europe, Sri Lanka, Bangladesh, Nepal, Bhutan, Mauritius, and Pakistan. It sells products through dealers and distributors. The company has a strategic alliance with VISCAS Corporation for the supply of 220kV cable jointing accessories. Universal Cables Limited was founded in 1962 and is based in Satna, India.

42 | P a g e

EH (Upto V 220K 7% V) L PVC 4 V 8% H (Upto V 33K 36% V) L X PE 9% V L

EH (Upto 22 V) V 0K H (Upto 33K V V) L X PE V L L PVC V

The questionnaire has been prepared which is attached as annexure which was given to companys key customers and the findings of the 15 respondents in pan India locations is shown in the graph above. The above data shows that there exists a growing demand for the companys new extra high power cables as the power transmission requirements of the electrical energy has increased due to vast increase in the number of customers and the power load of the transmission lines. This increasing demand has created a great opportunity for to company to tap a niche market of high power capacity transmission cable, where only a few players are present on a global level. But still there is a large scope as the Indian market is still on a growth stage of infrastructure development where the customers for such cables are increasing day by day and the cost efficiency has become top most priority for these firms.

43 | P a g e

Currency in Millions of Indian Rupees Revenues Other Revenues TOTAL REVENUES Cost of Goods Sold GROSS PROFIT

As of:

Mar 31 Mar 31 Mar 31 Mar 31 2007 2008 2009 2010 Restated Reclassified Reclassified 3,772.1 41.8 3,813.9 2,826.8 987.1 505.9 82.3 -23.0 565.2 421.8 -66.5 1.4 -65.1 0.7 -17.1 340.4 -1.9 1.3 1.3 339.8 120.0 219.7 4,914.6 22.5 4,937.1 3,742.1 1,195.1 549.4 134.2 91.6 775.3 419.8 -148.0 2.7 -145.3 3.9 -17.3 261.2 1.9 3.6 3.6 266.6 93.9 172.6 5,774.3 3.2 5,777.6 4,501.7 1,275.9 681.3 164.8 109.3 955.5 320.4 -202.3 5.5 -196.8 -22.4 8.4 109.6 2.9 --112.5 42.5 70.0 4,957.3 1.2 4,958.5 3,741.3 1,217.1 602.2 168.7 90.9 861.8 355.3 -78.6 9.7 -68.9 25.7 16.7 328.8 84.5 --413.2 141.8 271.4 44 | P a g e

Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL OPERATING INCOME Interest Expense Interest and Investment Income NET INTEREST EXPENSE Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) EBT, EXCLUDING UNUSUAL ITEMS Gain (Loss) on Sale of Assets Other Unusual Items, Total Other Unusual Items EBT, INCLUDING UNUSUAL ITEMS Income Tax Expense Earnings from Continuing Operations

NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

219.7 219.7 219.7

172.6 172.6 172.6

70.0 70.0 70.0

271.4 271.4 271.4

Although debt as a percent of total capital decreased at Universal Cables, Ltd. over the last fiscal year to 40.88%, it is still in-line with the Electrical Equipment industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, with 85.39 days worth of sales outstanding. Last, inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at 95.83 days.

45 | P a g e

Peer Comparison
Company Market Cap (Rs. in Cr.) P/E (TTM) (x) P/BV (TTM) (x) 1.33 2.07 1.58 1.22 0.90 0.91 -9.54 1.20 0.55 -0.34 1.06 0.34 -0.10 -1.22 0.36 EV/EBIDTA (x) ROE (%) ROCE (%) D/E (x)

Finolex Cables Diamond Power Cable Corpn. Universal Cables KEI Inds. Torrent Cables Uniflex Cables Nicco Corpn. Cords Cable Incab Inds. Delton Cables Rishabhdev Techn Fort Gloster Ind Cybele Inds. Yamuna Power

852.70 564.15 242.65 235.35 203.36 119.37 59.33 57.59 48.01 46.87 24.44 22.23 14.88 7.66 6.91

7.99 9.17 0.00 11.42 40.25 11.84 0.00 0.00 11.44 0.00 13.28 6.17 0.00 0.86 1.65

13.72 4.21 0.00 4.68 6.26 8.74 0.00 0.00 3.01 0.00 3.47 0.00 0.00 0.00 0.00

6.3 30.8 -37.8 14.9 4.0 8.3 0.0 0.0 8.8 0.0 1.3 19.9 0.0 0.0 7.8

8.9 22.2 -3.9 16.5 10.2 7.3 0.0 0.0 16.0 0.0 17.3 18.4 0.0 0.0 12.2

0.47 1.14 1.05 0.72 1.76 0.08 2.32 3.48 0.50 0.00 1.78 0.48 0.00 0.00 1.09

Last Price

Market Cap.
(Rs. cr.)

Sales Turnover 513.53 910.42 357.65 340.96 220.83

Net Profit

Total Assets

Universal Cable KEI Industries RPG Cables Nicco Corp Cords Cable Ind

101.95 31.75 27.80 6.00 42.15

235.81 203.00 115.26 56.61 48.17

27.14 14.23 -7.05 -54.05 4.19

328.42 564.50 204.46 207.97 131.95

SWOT Analysis of Universal Cables Limited

46 | P a g e

STRENGETH Availability of large capital and Funds Well established Brand Name Available Highly Technical Expertise Use of Latest Technology & Strong Research & Development Cell Highly experienced Management One of the largest production facility OPPORTUNITIES Continuous growing demand of high power electrical cables across the globe Government backed support to establish projects of special preference Continuous growth in demand for power due to rapid development in Countrys infrastructure

WEAKNESS Scarcity of raw material Bad infrastructure for transportation across various places in Country

THREAT Continuous increment in new entrants from domestic as well as international markets Increasing raw material prices and transportation costs

Production of selected Transmission and Distribution Equipments

Product Groups LT Motors HT Motors Alternators FHP Motors Power Connectors LT Circuit Breakers MCB S/F & F/S Units

Acc. Unit MW MW MVA MW 000'No s Nos. 000'Pol es Nos.

199798 345 3 104 4 333 2 381 168 3 312 497 131 03 528 932

199899 3283 1107 3198 671 1703 34965 0 13597 58256 8

199900 3156 773 3194 641 1957 3184 68 1390 5 6147 70

200001 3017 806 3019 608 1894 3090 33 1698 0 6261 00

200102 2914 812 2749 622 1836 2777 88 1917 3 5248 29

200203 3021 696 3381 633 1822 3696 67 2182 0 5505 73

200304 3518 658 3929 783 2144 4150 23 2517 4 5911 34

200405 4438 790 4886 672 2406 6083 57 3519 0 6773 18 47 | P a g e

HT Circuit Breakers Power Cables Control & Other Special Purpose Cables Power Transformer s Distribution Transformer HT Capacitors LT Capacitors Energy Meters Indicating Instruments TLT Conductors

Nos. KM C. KM

229 90 349 51 131 20

24058 37060 9109

2402 9 3617 7 9724

2350 6 2963 3 7386

2366 9 3098 8 7596

2586 7 3221 2 8632

2797 9 4293 2 1056 7

3495 7 4720 1 1253 6

MVA

413 05 877 8 588 7 255 8 496 1 732 183 231 91

40639

3313 3 9643 6461 2112 6030 664 192 1811 9

3311 1 1215 8 7676 1891 7784 544 165 1371 4

3940 6 1149 7 9548 1960 9491 540 184 1648

4648 8 1142 1 8909 2193 8136 527 178 1939 1

5572 2 1441 47 8741 2848 7071 533 190 1854 4

6083 6 1936 1 9685 3825 6809 611 283 1978 0

MVA MVAR MVAR 000'No s 000'No s 000'MT MT

8072 6986 2133 5281 691 179 14909

Source : IEEMA Databank

48 | P a g e

Porters Five Forces Analysis of Power Industry in India

The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Supply Many projects have been planned but due to slow regulatory environment, the supply is far lesser than demand. Currently, India needs to double its generation. Many projects have been planned but due to slow regulatory environment, the supply is far lesser than demand. Currently, India needs to double its generation capacity to meet the potential demand. Demand The long-term average demand growth rate is 6%. Barriers to Entry Barriers to entry are high, as entering this business requires heavy investment initially. The other barriers are fuel linkages, payment guarantees from State Governments, Retail distribution licensed, etc. Bargaining Power to Suppliers Not very high as Government controls tariff structure. However, this may change the future. Bargaining Power of Customers Bargaining power of retail customers is low, as power is in short supply. However, Government is a big buyer and payment by Government can be more erratic. Not high currently. The Electricity Act, 2003 will encourage investments, thereby increasing competition.

49 | P a g e

SWOT Analysis

Strenghts And Opportunities Of Power Sector

Well established and vast transmission and distribution network. Highly qualified engineering and technical personnel. Regulatory framework is further facilitated with enactment of Electricity Bill, 2003. The Electricity Bill, 2003 holds promises for the power sector and certainly for the consumer by way of competition reliability and rationalized tariff structure. Emergence of strong and globally comparable central utilities (NTPC, POWERGRID). India has substantial non-conventional energy resource base and technologies to meet growing power requirements by tapping this energy.

Weaknesses And Threats To Power Sector: Poor infrastructure has led to heavy T&D losses. Old and poor transmission and distribution network has led to frequent power outages and poor quality of power. Lack of proper metering and theft has led to large scale losses. Only 51% of the power generated is billed and only 41% is realized. Moreover, Government provides power to agricultural sector at subsidized rates and also free of cost in some states. All these factors have resulted in financial disorder of the State Electricity Boards (SEBs). Restoration of SEBs financial health and improvement in their operating performance continues to be a critical issue. The Government of India has signed a Memorandum of Understanding (MOU) with various states reflecting the joint commitment of centre and states to undertake reforms in a time bound manner. Poor return to utilities, which affect their profitability and capacity to make further investments Increasing gap between unit cost of supply & revenue, approximately Rs 1.10/Unit Managerial and financial inefficiencies in state sector utilities have adversely affected capacity addition and systems improvement. Non-availability of quality coal may hamper thermal plants efficiency in power generation.

50 | P a g e

Inability of SEBs to raise funds, as most of the SEBs is on the verge of bankruptcy due to poor operational performance. Adding to the problems, SEBs need huge money to measure up competition from efficient private players The major risk of privatizing a critical sector like power is the precedence of commercial over public interest. Some of these interests that will take a back seat include development of environment friendly generation and provision of electricity for rural areas. The new Electricity Act does not provide any specific financial incentives for private players to address public issues. The SBEs which are right now holding 60% of total installed capacity, will be hit adversely by some provisions of the new electricity act such as delicensing of generation and open access for IPPs and CPPs, there by such units will take away the most lucrative customers (like industrial and commercial users) from the SEBs. This will not only affect SEBs but also the entire power sector for near term.

51 | P a g e

New Product Development Process at Universal Cables Limited

New Initiative: Necessity

Indigenous Technology is stagnant at 132 KV level since 1990 as the existing CCV Line is 27 years old and not suitable for producing 220 KV & 400 KV XLPE Cables being imported presently. VCV Line with its State-of-the-Art Features like X-Ray & Laser Units is the most suitable technology for producing world class XLPE Power Cables up to 400 KV. First of its kind in India. Will Gear up the country for the future needs of XLPE Cables up to 400 KV. Will help the Nation in import substitution (220 KV Cables). Will help the Nation in promoting Export Business.

52 | P a g e

Objective of developing new product

To enhance the expertise and capability in the field of manufacturing technology of XLPE Power Cables in line with the technological development taking place worldwide. To establish world class manufacturing facility for bridging the existing technology gap and meeting the emerging demand of 220 KV Extra High Voltage XLPE Power Cables in the country which are being imported presently. To further upgrade the Technology for the future needs of 400 KV Extra High Voltage XLPE Power Cables in the country. To attain requisite competitiveness & cost effectiveness for Domestic and Export Business through Quality Upgradation, Enlargement of the Manufacturing Range, Improved Productivity, Optimised consumption of raw materials, Efficient Energy Management and Overall operational flexibility.

Benefit of New Initiative: Project of Special Importance

The Government of Madhya Pradesh has accredited the proposed project as a project of special importance. Special economic concessions have therefore been granted to the project.

53 | P a g e

Discussion
Indian Cable Production US$ 2.2 bn

CRU estimates that Indian cable production in 2005 was US$ 2.2 billion. This means that the Indian production is comparable to that of France or Mexico, for example. Chinas cable production in 2005 is estimated to be US$ 17 billion, nearly 8 times higher than India. This ratio is much higher than the ratio of Chinas GDP to Indias, as (a) China has many manufacturing industries that are very intensive in their consumption of cable, and (b) China is going through a sustained boom in infrastructure development.
Very Large Number of Cable Producers

The Indian cable industry is highly fragmented with a very large number of cable producers many hundreds of companies a larger total than can be found in any other country in the world except China. Many of these Indian companies are small-scale cable producers, the smallest of which are family-run operations with only the most basic of production equipment.
Larger Indian Cable Producers

At the other end of the scale in the Indian industry are some relatively large cable producers, but even amongst these larger players there are only a small number whose annual sales of insulated wire & cable approach or exceed US$ 100 million. The larger Indian cable producers include Finolex Cables, the Birla Group (including Universal Cables, Vindhya Telelinks and Birla Ericsson Optical), Sterlite Optical Technologies, Havells India, Nicco Corp. and KEI Industries. These are all listed companies. Polycab is a large privately-owned cable producer, while Hindustan Cables is a state-owned manufacturer of telecom cables.
Very Limited Consolidation

CRU estimates that even the largest Indian cable producer, the Finolex group, accounts for only 5% of total Indian cable production. In mature markets it would be more usual to find that the largest cable producer had 15% to 20% (and sometimes a much higher percentage) share. There has been only very limited consolidation amongst the major players in the Indian cable industry. The tendency of Indian cable companies to grow organically, rather than by acquisition of competitors, means that no clearly dominant groups have emerged in the Indian cable industry. Many Major Listed Cable Companies Most of the major cable companies in India are listed companies or are part of large industrial groups that are themselves listed companies. This bias in India towards listed companies contrasts with many other developing regions of the world where listed cable companies are not so widespread as they are in India. In China, for example, only a few of the large cable companies are listed, as most of the others have developed from state-owned enterprises or have been newly
54 | P a g e

established by private entrepreneurs. The situation in India also contrasts with South America, where, with a few notable exceptions like Madeco, most of the major cable groups are subsidiaries of foreign groups or are privately owned.
Improved Industry Profitability

According to the survey by CRU of financial results of the major listed Indian cable companies, industry profitability has been improving in recent quarters. Average profitability weakened from Q2 2002 onwards (i.e. Q1 of the Indian 2002/03 financial year), and the low point for the industry was reached in Q1 2004 (i.e. Q4 of FY 2003/04), as in that quarter some of the major players in telecom cables reported big operating losses. Since Q2 2005 average margins for the Indian cable industry have been above 10%, so compared to many other markets, where operating margins in the cable industry even in good years are in the range 5% to 10%, the financial performance of the Indian industry is quite strong.
Large Informal Sector

In the Indian cable industry there is a large informal or unorganised sector. Some small cable companies compete by selling products of dubious quality at low prices. While such a black market sector also exists in other countries, it is a particularly big problem in India. Smaller local cable producers may be encouraged in some market sectors (e.g. PVC power cables for utility distribution networks) by legitimate tactics, such as price preferences, but in the unorganised sector almost anything goes. In some instances small cable producers bypass the regulations that large and medium-sized cable producers have to follow. Companies in the unorganised sector may avoid paying taxes or take advantage of unmetered power supplies intended for agricultural users.
Counterfeit Cables an Issue

In mature markets, such as Western Europe, products such as building wire are generally regarded as commodities, with lowest price and availability being the key criteria for purchasers. Quality is a secondary consideration in mature markets, as purchasers usually assume that all cables that have the appropriate product approvals meet the required performance specifications. In India, however, the market situation is different: domestic consumers (e.g. for building wire used in residential construction) are likely to be quality conscious, aware of brands of cable that have a reputation for quality and wary of buying poor quality products. In a market where perceptions of quality are important, unscrupulous small producers may try to sell counterfeit cables, usurping the brandnames of the more reputable Indian cable makers.
Cable Companies Show Resilience

Even more than cable companies in other countries, Indian cable producers experiencing financial difficulties have shown a remarkable ability to survive, usually in a weakened form, rather than being bought by other groups or undergoing outright closure. This behaviour contrasts with the US or Europe, for example, where on a relatively short time scale pressure from shareholders and banks forces the management of poorly performing cable businesses to close unprofitable operations or to seek rationalisation opportunities. In India, by contrast, companies in difficulties
55 | P a g e

may carry on trading for several years, operating under Indias bankruptcy protection regulations. In most parts of India, but especially in areas such as Calcutta, it is difficult to close businesses because of laws that protect workers employment rights. Thus the exit barriers in the Indian cable industry are high, which has also tended to make outside investors very cautious about entering joint ventures or setting up green-field operations in India.
Foreign Investment in JVs

There are a number of cable-making joint ventures in India involving foreign groups, but there has not been a big movement by foreign investors into Indian cable manufacturing. The track record for foreign investors in the Indian cable industry is generally poor. There are several examples of foreign companies that in the past have established joint ventures in India but which have eventually withdrawn, either due to market conditions remaining poor over a number of years or to consistently weak performance by the joint venture. Cable businesses in India that are wholly owned (or nearly so) by foreign groups are rare. It is interesting that some of the leading global cable groups have no presence in India, except via trading companies.
Contrast with China

The reluctance of foreign investors to go it alone in the Indian cable market contrasts with what has happened over recent years in China. Depending on the market sector, a foreign cable group in China may choose either to set up a joint venture with a local company or to establish a whollyowned business. More experienced investors in China have the confidence not to need the support of a local partner, unless there are good reasons for seeking such support.
Power

With the government recognising the power sector to be the backbone of sustained industrial growth, robust investments have been proposed towards building up capacities. For India to sustain its GDP growth at over 8%, it is estimated that the power sector should grow atleast 1.8 to 2 times of the GDP, translating to an addition of generation capacity by nearly 18,000 to 20,000 MW (megawatts) each year.

Power cables play a crucial part in all the three aspects of the power sector generation, transmission and distribution. The power sector in India is characterised by shortages on account of various factors such as pilferage, theft, equipment defaults (due to poor quality), amongst
56 | P a g e

others. Increasing amounts of power deficits has increased the demand for quality equipment and higher voltage power generation. As such, the major cable manufacturers have ventured into manufacturing extra high voltage (EHV) cables along with expanding capacities to meet the demand rising demand. It is estimated that nearly 3% to 3.5% of investment per MW goes towards power cables. Therefore, with an approximate investment of Rs 40 m per MW, the demand for cables will be in the range of Rs 1.2 m to 1.4 m.
Approximate opportunities for power cable industry

Segment Estimated cost Range Opportunity Generation 3,430 3%-3.5% 103-120 Transmission 1,293 1.5%-2% 19-26 Distribution 1,443 10% 144 Total 6,166 266-290 Source: PCI; All figures in Rs bn Strong capacity addition plans have been proposed for power generation during the eleventh and twelfth five-year plans. The Planning Commission of India (PCI) has proposed capacity addition of almost 78,000 MW (although the actual addition is likely to be lower) during the eleventh plan (2007-2012), translating as opportunities in the range of 103 bn to Rs 120 bn. Further, on a conservative basis, it is estimated that nearly 1.5% to 2% total project cost in the transmission segment goes towards power cables. Power distribution on the other hand generates the highest demand for cables, approximating to nearly 10% of the total project cost.
Industrial

Investments in the industrial sector, comprising of buildings, factories, and industrial units across various sectors such as steel, power, fertilisers, oil & refinery, aluminum, cement, mining, among others, also generate demand for power cables (both low and high tension cables). It is estimated that nearly 2% to 2.5% of the total capex plans goes towards power cables. With Indian corporates estimated to spend around US$ 150 to US$ 200 bn as capex over the next few years, the demand for cables from the sector is expected to be high.
Communication

Cables are the backbone of the communication sector. Favourable demographics and increased discretionary spending drive the growth of this sector. As we all know, India is the fastest growing telecom market in the world adding nearly 8 m to 9 m subscribers every month. In addition, the
57 | P a g e

telecom companies are aggressively making inroads into rural markets. In addition, with the government estimated to contribute nearly Rs 18 bn towards the Universal Service Obligations (USO) fund on an annual basis, the demand for telecom infrastructure, including cables is expected to remain strong.
Realty

According to the eleventh fiveyear plan document, there is a shortage of 24 m homes in the country. While there has been a significant slowdown in real estate demand in the recent past, the above-mentioned fact still stands intact. As such, this sector is scheduled to create strong demand for commodities (including cables) going forward. Growth across segments such as residential, commercial and retail will be the major factor for this segment going forward.

58 | P a g e

Recommendations
Key concerns of cable companies

While the market opportunities remain vast, being a manufacturing industry, cable players will continue to face input cost pressures. With copper, steel and nickel being the major materials consumed, volatility in prices will have an adverse impact on the companies going forward. Passing on the costs to the customers may not be an easy task considering that most of the orders are small sized. Strong competitive environment, currency fluctuations and shortage of manpower are other factors that this sector needs to address in the long run. Also the fact that operations are working-capital intensive makes companies balance sheet sometimes stretched. Cables play a small but significant part in infrastructure activities. With strong investments proposed across sectors such as power, realty, industrial and telecom, the cable industry in India is slated for a strong growth going forward. In order to outperform the emerging competition, the companies need to focus more on its research and development process and invest more in these activities. Since the Indian companies lack the strategic approach to invest more into innovation and research activities, the percentage of contribution in overall sector wise growth on global level by Indian companies is significantly low. The new product development process helps the company to understand the constantly changing needs and demands of the current as well as future customers. Hence the company can strengthen its brand equity by indulging more in such innovative strategy thereby delighting the end customers as well as all its stakeholders with the desired returns and growth.

59 | P a g e

Conclusion
The new product development process of the company has lead to increase in the market share of the company. It has been successful in meeting the demand for extra high power transmission cables with low cost of production. As this new technology would result in maximizing efficiency and improving transmission losses, the company has gained competitive advantage as being an early entrant in this segment. It has also improved the product line of the company and has added to its branding initiatives. The new product developed has also benefited the company as:
Subsidised product pricing to gain price advantage due to special subsidy given by state government. Improved technology to reduce production costs Improved product quality and reduced power losses Gain first mover advantage and build brand equity Improve profit margin and growth on investment.

60 | P a g e

Bibliography
Books
Principal of Marketing (Eleventh Edition) o Part III

Chapter# 9: Page # 274,276,280,282

Web site
www.learnmarketing.net www.wikipedia.org www.infotrends.com http://learnmarketing.net/product.htm http://en.wikipedia.org/wiki/New_product_development http://www.npd-solutions.com/strategy.html http://www.infotrends.com/public/Content/MRD/Projectdescriptions/productconcepttestin g.html http://www.businessplans.org/Market.html http://www.proddev.com/pdf/Succeeding_at_New_Products_the_PG_Way.pdf http://www.unistar.co.in/index.php

Organization
Universal Cables Limited, Satna

61 | P a g e

Annexure

62 | P a g e

Questionnaire

1. Name of Respondent:.. 2. Designation:. 3. Name of the Company:. 4. Address of the Company: ... 5. Contact No.:
6. Email Address:

7. Nature of Business:.
8. Territory of Operations:

9. Your Key Customers: . . .

10. Power Capacity Requirements (Tick Appropriate):

63 | P a g e

a. More Than 66 KV
b. 66 KV

c. 33 KV d. 11 KV e. Low Tension (LT) 11. Current Power Losses (In %): 12. Desired Tolerance level for Power Losses: 13. Average Annual Cable Requirement (Quantity in Meters):
14. Requirement of Cable Type (Tick Appropriate):

a. Extra High Voltahe (EHV) Upto 200KV b. High Voltage (HV) Upto 33 KV c. Low Voltage XLPE
d. Low Voltage PVC

Date:

64 | P a g e