Summer Internship Project Report On Fundamental Analysis of LARSEN

Summer Internship Project Report
On
Fundamental Analysis of LARSEN & TOUBRO (L&T) POWER
At
LARSEN &TOUBRO POWER (L&T POWER)
Submitted to
Institute code:822
Institute Name: INSTITUTE OF TECHNOLOGY AND MANAGEMENT UNIVERSE
Under the Guidance of
Mrs Krishna Bhatt
(Assistant professor)
In partial Fulfilment of the Requirement of the award of degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Shah Arpan Nishidhkumar
178220592041
MBA (Semester-3)
Month & Year: JUNE & JULY 2018
Student’s Declaration
I hereby declare that the Summer Internship Project Report titled “Fundamental Analysis of L&T power “in (L; T power) is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged. If I am found guilty of copying from any other report or published information and showing as my original work, or extending plagiarism limit, I understand that I shall be liable and punished by the university, which may include “Fail” in examination or any other punishment that university may decide.

Enrolment no. Name Signature
178220592041 Shah Arpan Nishidhkumar Place: … Date:………
INDEX
SR NO CONTENTS PAGE NO
1 TITLE OF PROJECT 2 INTRODUCTION 3 LITERATURE REVIEW 4 RESEARCH OBJECTIVES 5
SCOPE OF STUDY 6 LIMITATIONS OF THE STUDY TITLE OF THE PROJECT
FUNDAMENTAL ANALYSIS OF L;T POWER

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INTRODUCTION
L;T Was founded by two Danish engineers Henning Holck-Larsen and Soren Kristian-Toubro in 1938. It is the largest multinational firm headquartered at Mumbai in India. L;T is a major engineering, technology, construction, manufacturing and financial conglomerate with global operations. L;T’s key areas are Hydrocarbon, Infrastructure, Power, Process industries and Defence over 30 countries around the world.

L&T Power is a part of Larsen &Toubro group. L&T Power embraces two projects: Coal based project and Gas based project. It is uniquely positioned to combine rich and diverse stands of engineering, construction, manufacturing and designs providing on turnkey solutions. It combines with the partnership and provides best to its customers.

The L&T knowledge city Vadodara started in 2008 includes various key business in Gujarat. The power business operates as mid &downstream hydrocarbon and L&T Technology services and JV L&T Sargent and Lundy. The campus offers single point engineering and development solutions to core industries and takes a lead in maintaining and sustaining its green lush campus.
L&T Power is mainly engaged in coal based and Gas based power plants.
L&T power plants mainly at Vadodara, Faridabad and Chennai.
L& T POWERS coal based products include: –
TURNKEY SOLUTIONS
CLOSE TO 80% of all the mining in India is for coal, by far the most abundantly available fossil fuel in the country. about 75% of all coal is consumed by the power industry to drive more than 50%of the country’s total installed capacity.

L;T power offers turnkey solutions for large coal based power plant projects (up to 1000 MW) based On Supercritical standards. Similarly, it has demonstrated capability of executing balance of plant packages of both subcritical and supercritical thermal plants on EPC basis. L;T power owns India’s largest integrated manufacturing facility for power plant equipment.
SUPERCRITICAL TECHNOLOGY
L&T-MHPS turbine generators private limited a JV between L&T and MHPS of japan, manufacturers supercritical stream turbines of up to 1000MW Rating. MHPS products have added advantages of ease in maintenance, reduction in vibration stresses and better performance in a corrosive environment. The JV also offers state of the art facility for generator testing and high speed balancing.
SUPERCRITICAL BOILERS
L&T-MHPS boilers PVT LTD, a JV with MHPS of japan, executes supercritical boiler islands of up to 1000 MW on turnkey basis, forging its own considerable engineering and project management prowess with the technological muscle of the Japanese giant.
ENVIRO SOLUTIONS
Flue gas Desulphurisation technology
L&T has a long term technical licence agreement with Chiyoda corporation, Japan, for its thoroughbred FGD technology. The CT-121tmFGD process is a unique technology in which sulphur dioxide is absorbed from flue gas generated by coal-fired, oil-fired and other types of boilers and removed as gypsum. This technology is highly efficient, enabling low-cost removal of flue gas SO2. moreover, it ensures that plant remains compact and easy to maintain.
SELECTIVE CATALYTIC REDUCTION SYSTEMS
L&T-MHPS Boilers PVT LTD, a JV of L&T & MHPS, Japan, technology license agreement for SCR systems with MHPS. It is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC, OR SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India. The SCR systems limit oxides of nitrogen (NOx) emissions.

ELECTROSTATIC PRECIPITATORS
For power plants above 300MW Capacities, L&T supplies Electrostatic precipitators under a technology License agreement with Clyde Bergemann, USA. Advanced technological features of the product ensure energy efficiency and low downtime.
ENGINEERING SERVICES
L&T S&L provides engineering and design services for gas based, coal based power plants. Its systems and design engineering process centres help identify projects, conceive designs, successfully implement them plan up gradation of services.
These services include as follows-
Project conceptualisation
Feasibility studies
Detailed project reports
Tender specifications
Basic and detailed engineering
Procurement support
Review engineering
Construction drawings
Inspection and testing support
Site technical support
Support for commissioning and PG testing
Electrical systems studies
Owners engineering services
Lenders engineering services
Restructuring of SEBs / power sector reforms studies
Special engineering services
L&T-S&L Technologically advanced tools include the PLADES software – an integrated project management, engineering and design automation system – suitable for all aspects of all power plant design, analysis optimisation and 3D modelling.
CONSTRUCTION SERVICES
L&T POWER offers the benefits of five decades of experience in construction. The construction record spans over 50 power plants, totalling approximately 35000 MW of power capacity. Our customers gain from a proven ability to mobilise large workforces, advanced construction techniques, and a thorough understanding of requirements at project sites.

POWER BLOCK AUXILIARIES
COAL PULVERISERS
L&T-MHPS boilers also provides pulverisers which use MHPS advanced Mitsubishi rotary separator to achieve higher fitness directly resulting in improved combustion efficiency and lower emissions. Since there are large capacity pulverisers, they reduce the number of pulverisers that are required to be used as boilers effectively reducing maintenance cost for customers.
CRITICAL PIPING
L&T POWER has a large pool of experienced engineers specialised software and state of the art manufacturing set up for carrying out critical piping work for power plants. Our capability includes alloy steel piping for high pressure and high temperature stream conditions feed water and power cycle piping in boiler and turbine islands.

FOUNDRY
L&T POWER has set up a heavy foundry with a capacity of a 2500T per annum. The foundry will be capable of producing castings up to 60 MT, making L&T POWER 2nd as a company in India. The foundry will cater to the heavy casting needs of supercritical boilers, auxiliaries and turbines.
HEAT EXCHANGES
L&T power through its heavy engineering division(HED) has long proven experience in design manufacturing and delivery of high and low pressure heat exchangers, condensers and de-aerators.
VARIABLE PITCH AXIAL FANS
Variable pitch axial fans are used where high volumes, high aerodynamic performance and precise flow control are required where reliability and continuous running for extended periods are demanded. They are the choice of fans in critical applications for large boilers within the power industry where they are used in both primary air, forced draught and induced draught applications. L&T HOWDEN provides design, manufacture, engineering and supply of axial fans to thermal power plants ranging between 100MW to 1200MW.
ROTARY AIR PREHEATERS
Power boilers air require highly efficient and reliable pre-heaters to ensure optimum performance. The core of the pre-heater, the heat exchange surface is composed of several hundred tonnes of metal plates known as elements. As the pre-heater slowly rotates, at around 1-2 rpm the elements collect heat from hot gas stream being discharged from the boiler & then transfer it to the cold air stream entering to the boiler. This can improve efficiency and boiler performance thus leading to reduce CO2 emissions from the boiler.

OTHER CRITICAL SYSTEMS
Other critical systems include switchyards, BTG block electricals, electrical bop, chimneys, cooling towers, water systems and coal handling plants.
GAS BASED POWER PLANTS include-
TURNKEY SOLUTIONS
L&T POWER executes combined cycle cogeneration gas based power projects on turnkey basis. It has excellent track record in implementing projects in India and overseas. It is the 1st company to execute F technology gas turbine of 250MW class.
IT owns India’s largest integrated manufacturing facility for power plant equipment.
HEAT RECOVERY STREAM GENERATORS
L;T POWER Offers vertical and horizontal HRSG heat recovery from gas turbine
Exhaust gases. The range includes fresh air fired and unfired and supplementary HRSGs up to triple pressure levels, with or without reheat.
STEAM TURBINES
Steam turbines are used in advanced class gas turbine cycle plants. It supplies ratings are 150MW to 300MW.

Vision: –
L;T POWER shall be Indian’s most preferred of state-of-the-art efficient, reliable, environment friendly equipment, systems, services, for fossil and nuclear power plants, thereby contributing to the growth of the nation and shall be an important player in select international markets.

Mission: –
L&T power shall provide world class products and services by consistently meeting customer expectations, quality and on time delivery. L&T power shall achieve sustainable business growth by value creation by all stakeholders through continuous innovation in capabilities, products and services, while remaining agile and adaptable. L&T power shall follow fair, transparent and ethical practices and encourage a culture of care, safe and healthy environment, people empowerment as well as protection of environment and natural resources.
AWARDS AND RECOGNITIONS: –
YEARS
2012
L&T POWER SHINES AT TISS CLO SUMMIT
L&T power won two prestigious awards at the CLO summit India held in Mumbai. The first was gold award in the induction training programme category given to L&T power. The second award was silver award for apprenticeship programme category given to L&T-MHI turbine generators. The awards were presented by TISS in association with Leap Vault.

PMI AWARD FOR 2*384 MW VEMAGIRI PHASE-2 PROJECT
The 2*384 MW combined cycle vemagiri phase-2 power project was awarded the 2nd position in the best project management national conference India 2012, organised by PMI Institute, Chennai.
L&T POWER BAGS BRITISH SAFETY COUNCIL’S SWORD OF HONOUR
Raj Pura project, Dhuvaran PROJECT and L;T-MHI TURBINE GENERATORS factory got the sword of honour which is one of the most coveted awards in health and safety field worldwide. Best award in health ; safety management.
2013
INDIAN GREEN BUILDING COUNCIL AWARDS GOLD CERTIFICATION TO NEW WEST BLOCK AT KNOWLEDGE CITY
The LEED India plaque awarded to west block-2 by the Indian green building council is recognition of the project achievement. The evaluators made a note of high quality construction material that has least ecological impact. LEED India certification provides independent, third party verification that a building project meets the highest performance standards.

LMTG BAGS FROST ; SULLIVAN GREEN MANUFACTURING EXCELLENCE AWARD
L;T-MHI turbine generators PVT LTD bagged the green manufacturing excellence award instituted by frost ; Sullivan BAGGED The green manufacturing excellence award instituted by frost ; Sullivan. LMTG had worked relentlessly to prepare for appropriate response to the assessors from frost ; Sullivan during making of the preliminary report and final assessment carried out in the early part of 2013.

LMB GETS 5 STAR SAFETY RATING
L;T-MHI boilers PVT LTD, Hazira obtained 5-star rating in the British safety council occupational health and safety audit 2013 conducted during 22-26 July 2013 near Surat.

MALWA GETS 5-STAR SAFETY RATING
The 2*600 MW Shri Singaji thermal power plant being set up by L;T Power on an EPC basis got 5-star rating in BSC’S occupational health and safety audit 2013 conducted on July 15-20 2013 at malwa site.
IT TEAM WINS NAASSCOM INNOVATION 3.0 AWARD
The L&T POWER IT team bagged the prestigious NAASCOM innovation 3.0 award in the category of best it driven innovation in manufacturing vertical for IT enabled project review & monitoring system.
2014
LMB WINS NATIONAL ENERGY CONSERVATION AWARD
L&T-MPHS BOILERS won the prestigious award for the year 2013 for energy conservation.
LMTG SHINES AT NAMC
L&T-MHI Turbine generators PVT LTD was awarded gold medal in the heavy engineering at Chennai on June 6 2014.
L&T KNOWLEDGE CITY GETS NDTV-GRUNDFOS MISSION ENERGY CHALLENGE 2014 AWARD
L&T VADODARA won this award for its energy saving initiatives in Knowledge City campus. The award was presented at a function held on June 5,2014.
L&T-SARGENT & LUNDY WINS GOLDEN PEACOCK NATIONAL QUALITY AWARD
L&T S&L won the award by institute of directors at the 24th world congress on total quality & leadership at Trivandrum, Kerala on May 23,2014.

L&T S&L WINS THE STAR PERFORMER AWARD
L&T S&L won the regional export award from EEPC, INDIA in the category of star performer- medium enterprise-engineering services for its outstanding export performance during 2011-12.
2015
L&T WINS CBIP AWARD
L&T POWER won the central board of irrigation and power award in excellence in construction of power projects category.
L&T POWER BAGS RAJIV GANDHI NATIONAL QUALITY AWARD
L&T power bagged the Rajiv Gandhi NATIONAL QUALITY AWARD IN 2013 in large scale manufacturing industry. It was presented by consumer affairs by Indian government.

L&T WONS 1ST PRIZE AT STEAMTECH
L&T MPHS WON the 1st prize in best innovation in technologies for boiler system development at the 8th national steamtech conference at Ahmedabad on February 27& 28.
ICAI HONORS LMBS CFO
CFO of L&T MHPS boilers PVT LTD Mr Anil Mehta was conferred the prestigious ICAI award of CFO.
L&T WINS AWARD FOR EXCELLENCE IN POWER PROJECT EXECUTION
L&T won the award for excellence in power project execution from the CBIP, an institution of government of India for its outstanding performance in the development of the power sector in India. It was presented on January 1 2015 at New Delhi.
2016
MANUFACTURING EXCELLENCE AWARD FOR L&T-MHPS TURBINE GENERATORS PVT LTD
LMTG was awarded GOLD under Large business category by IMEA. The award function was held at Mumbai in India.
CII EXIM BANK AWARD FOR BUSINESS EXCELLENCE
L&T POWER won the cii Exim bank award for business excellence 2016. The award was presented at 24th national quality summit in Bengaluru India.
CSR AWARD FOR L&T POWER
The coveted PMI India award for best CSR project in 2016-17 was bagged by L&T POWER it was presented by PMI Mumbai for CSR activities at project sites.
L&T POWER WINS NATIONAL SAFETY AWARD
It won’s award at the Chhabra project in Rajasthan for outstanding performance in industrial safety and trophy for accident free year 2014.
2017
L;T S;L WINS CII AWARD
It has been conferred CII award for customer management 2016 as emerging leader in services sector by CII. The award ceremony was held at 25th national summit at Bengaluru in INDIA on November 25; 26 2017.
NATIONAL SAFETY AWARDS
L;T POWERS SHREE SINGAJI THERMAL POWER PLANT IN MP bagged the industrial safety award by union government. It was presented at new Delhi on September 17,2017.
SARVASHRESTHA SURAKSHA PURASKAR
L;T POWERS RAPP project won the national safety award for sarvashreshtha suraksha puraskar in new Delhi on April 20 2017.
FICCI QUALITY SYSTEMS EXCELLENCE AWARD
L;T power won the FICCI award for platinum category for quality systems excellence award in construction sector in large org category. It was held at NEW DELHI on January 20,2017.

INTRODUCTION TO FUNDAMENTAL ANALYSIS
Meaning of fundamental analysis
Fundamental analysis is a method of evaluating security in an attempt assesses its intrinsic value, by examining related economic, financial, other qualitative and quantitative factors.
Fundamental analysis studies –
Macroeconomic factors
Macroeconomic factors include economy and industry analysis.

Microeconomic factors
Microeconomic factors include financial analysis and company analysis.
(source: – Investopedia)
Fundamental analysis is the analysis of economy, company and industry analysis. As the goal of the analysis is to forecast the price from profit movements. At the company level, there may be financial data, business concept and trend analysis. At the company level, there will be ratio analysis. At the industry level, there will be porter 5 forces model and swot analysis. At the economy level, there will be PESTEL analysis.
Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups and companies. As, the most of the analysis, the goal to derive a forecast and profit from future price movements. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy fundamental analysis may focus on economic data to assess the present and future growth of the economy.

LITERATURE REVIEW
Avijit banerjee (1998) reviewed fundamental analysis and technical analysis to analyse the worthiness of the individual securities needed to be acquired for portfolio construction .
The fundamental analysis aims to compare the intrinsic value with the prevailing market price and to take decisions whether to buy, sell or hold the investments. The fundamentals of the economy, industry and company to determine the value of security. If the IV is greater than MV the stock is under priced and should be purchased. He observed that the fundamental analysis could never forecast the MP of a stock at any particular point of time.
Pattabhi ram v (1995) emphasised the need for doing fundamental analysis and equity research before selecting for investment. He has done research in the Indian stock markets.
To estimate the fair value of our company stock requires a forecast regarding earnings or dividends. Fundamentals are company related to profitability, financial strength or risk (Pinto Al 2010) .
Fundamental analysis is one method which evaluate securities in order to measure the intrinsic value such as earnings and dividends in regard of economic, financial and other related quantitative and qualitative factors. Fundamental analysis examine related factors which affect the securities including macro economic factor such as gross domestic production growth, industry analysis such as typical lie cycle of an industry to specific factors in the perspective of a company such as financial condition and management. (Bodie et Al 2009)
This approach commonly stated as top down approach since it initially started with wide perspective that it narrowed down to the specific firm factors. The purpose of conducting fundamental analysis is to evaluate the value which could be compared with market price then considered as underpriced or overpriced.

RESEARCH OBJECTIVES
To study the economy analysis (PESTEL ANALYSIS).
To study porters five forces model
To study the business opportunities.
To study various trends, opportunities and challenges faced by company.
To analyse the financial ratios and interpret it.
SCOPE OF STUDY
The scope of the study is to do financial analysis of the company. The study is restricted to one company in one sector.

LIMITATIONS OF THE STUDY
The study was limited to one sector.
The study was more based on secondary data.
CSR ACTIVITIES
WATER AND SANITATION FACILITIES

Sanitation awareness drives among the community members and community based monitoring committees will ensure that these villages are well on their way to becoming open defecation.
Increase in ground water level, conversion of land from fallow to cultivable of soil erosion through various watershed interventions.
EDUCATION FACILITY
Education infrastructure: L;T Provides infrastructure support to government schools. It provides furniture, set up and equips laboratories, libraries and playgrounds, refurbishes and digitises classrooms and builds toilet blocks for rural schools. All these lay the foundation for good education.
Learning enrichment: Learning enrichment programmes are conducted in schools through NGO partners, with a focus on science, language and maths. ‘Science on wheels’ vans visit schools to provide young, enquiring minds with exciting opportunities to perform hands on science experiments and fire their imagination.
HEALTH FACILITIES

L;T HAS SETUP-
Mobile clinics
Health centres
Health campus
Dialysis centres
SKILL BUILDING;
VOCATIONAL TRAINING FOR WOMEN
To make underprivileged women self-reliant, L;T has introduced vocational training programmes in tailoring, beautician skills, home nursing and food processing.
CONSTRUCTION SKILLS
Free vocational training given for short time certification courses of six months.
SOURCES OF DATA
PRIMARY DATA
Those are the data which are obtained by the study specially designed to full fill the data needs of the problem. Meeting the company professionals collected the information necessary for the study.
SECONDARY DATA
Data which are not originally collected but rather obtained from published or unpublished sources are known as secondary data. In this sources like internet, research report, company journals, magazines are used for research.

ECONOMY ANALYSIS (PESTEL ANALYSIS)
Economic analysis
Graph 1: GDP
YEARS GDP (%) CONTRIBUTION OF POWER SECTOR in GDP (%)
2013-14 6.39 6.04
2014-15 7.41 8.43
2015-16 8.16 5.64
2016-17 7.11 4.72
2017-18 6.74 3.95

ANALYSIS AND INTERPRETATION
During 2013-14 the GDP was 6.39% and its contribution to power sector was 6.04%. in the year 2013-14 there is good amount of contribution of power sector in GDP. As in the year 2013-14 the GDP rate and its contribution to power sector is almost near. During 2014-15 the GDP increased from 6.39% to 7.41% which is 1.02% increase as compared to 2013-14 and its contribution of power sector increased from 6.04% to 8.43% which is 2.39% increase from the past year contribution.
In the year 2015-16 the GDP rate was 8.16% which is a high growth rate as compared to all 5 years and contribution of power sector is 5.64%. here the high growth rate means economy is developing but the contribution of the power sector has declined by 2.79%.
During the year 2016-17 the GDP rate was 7.11% which is 1.02% decrease in respect of the past years. Contribution of power sector in the year 2016-17 GDP rate is 4.72% which is 0.92% decline in respect to the past year.
In the year 2017-18 the GDP rate declined from 7.11% to 6.74% which is 0.37% decline as compared to 2016-17. In the year 2017-18 there were major two impacts because of demonetisation and introduction of GST a new tax scheme in India.

With the implementation of GST, the may businesses face the severe conditions due to tax reforms. Because of no knowledge about this scheme the economy faced major drawback in implementing and adopting the GST in their Businesses.
During the year 2017-18 the contribution of power sector in GDP was 3.95% which has declined due to major two decisions taken by the govt of India under Prime Minister Narendra Modi. The contribution of GDP has declined about 0.77% as compared to 2016-17.

From the GDP graph, we can understand that the GDP in 2013-14 was 6.39%and increased to 7.41% in 2014-15. in the year 2015-16 the GDP growth rate was 8.46% which is the highest growth rate compared to all years. In 2016-17 the growth rate has declined to 7.41%. The growth rate declined in year 2017-18 to 6.74%.
As from the above graph it can be analysed that from the year 2013-14 to 2015-16 the GDP rate is constantly increasing which is a good sign for the economy.

From the above graph, we can understand that the contribution of power sector in GDP in the year 2013-14 is 6.04% which increased to 2014-15 to 8.43% which is high rate of contribution almost there is 2% increase in the contribution. During the year 2015-16 the contribution of power sector declined by almost 3% and its contribution was 5.64%. in the year 2016-17 the contribution declined from 5.64 to 4.73% which is 1% decrease as compared to year 2015-16. In the year 2017-18 the contribution is almost 3.95% of power sector in GDP.
From the above graph, it can be analysed that from the year 2013-14 to 2014-15 it has been increased from 6.04% to 8.43%. from the year 2014-15 to 2017-18 the contribution of power sector in GDP has declined from 8.43% to 3.95%. due to two reasons demonetization and GST tax regime.
GRAPH 2: INFLATION
Years Inflation rate Contribution of power sector in India (%)
2013-14 10 6.04
2014-15 6 8.43
2015-16 4.9 5.64
2016-17 4.5 4.72
2017-18 3.6 3.95

ANALYSIS AND INTERPRETATION
During the year 2013-14 the inflation rate was 10% and contribution of power sector was 6.04%. In the year 2014-15 the inflation rate decreased to 6% and its contribution of power sector was increased to 8.43%. during 2015-16 the inflation rate decrease to 4.9% and its contribution decreased to 5.64%.
During the year 2016-17 the inflation rate was 4.5% and its contribution to power sector was 4.72% which overall matches with the inflation.
During the year 2017-18 the inflation rate decreased to 3.6%and contribution of power sector is 3.95%. when there is high inflation then the contribution to power sector is less and when the inflation is less then contribution starts on increasing.

During the year 2013-14 the inflation rate was 10% and it decreased to 6% in the year 2014-15 which id decline of 4%. In the year 2015-16 the inflation rate was declined 4.9% which is around 1.1% decrease as compared to the year 2014-15. In the year 2016-17 there is decrease in inflation rate 4.5% which is 0.3% decrease as compared to 2015-16.

In the year 2017-18 the inflation rate got decreased to 3.6% and declined by 1% as compared to 2016-17.
From the above inflation chart we can understand that there is constant decline in inflation rate from past 5-year analysis. As higher the inflation then high will be the price. We can understand that the inflation rate has declined from 2013-14 to 2017-18 from 10% to 3.6% ; the decline difference % is 6.4%.

SOCIAL ANALYSIS
Social analysis includes all cultural factors and CSR taken into action.
Building social infrastructure
CSR conducted by L;T POWER is carried nicely, but the risk of trying too many programmes do too many things too soon, it involves the risk. So, L;T has therefore decided to focus on a single scheme: Building India’s social infrastructure. Based on these schemes few villages have been selected in water-stressed districts around the country and more are being identified. Through our integrated community development programmes they partner with the community and address issues of water, sanitation, education, health and skill building.

Active participation from the community is sought between experts and dependent villagers `awaiting relief. Communities pledged their support through ‘shram daan’ or voluntary service.

CSR IN ACTION
For L&T POWER CSR should be implemented thoroughly. After doing the CSR programmes they check it. L&T POWER has a CSR department in Mumbai, supported by different units across the country. The L&T Public charitable trust also make efforts. Their CSR policy is endorsed by Group Executive Chairman.
L&T set up a science centre at Ondipur Boys Higher Secondary School, in COIMBATORE. It provides hands-on-science education for the underprivileged and acts a hub of science learning. It will also act as a resource centre, teacher training centre and venue for project-based and integrated learning.
Letting a hundred of balwadis bloom
The first day -in fact the first weeks -in school can be a daunting experience for a child, especially one from a dis advantaged background. L&T has set up hundreds of balwadis in partnership with NGOs across the country. These centres are used to confine themselves to looking after the health and nutrition requirements of children. They took the step further to provide an enriching learning environment. Preschool education helps underprivileged children prepare themselves to enter the formal school set up. It has helped increase enrolment and reduce dropouts.
A.r.t CAMPAIGN against aids
A new Anti- retroviral therapy ART Centre in north Mumbai has been built and operated by L&T and owned by municipal corporation of greater Mumbai. Our partner is the Mumbai district aids control society. They are collaborating with government departments since 1985. The ART centre offers the entire range of pathology tests for up to 2000 patients. They can avail of free medical and super speciality consultation and X-ray facilities. Ultrasonography is offered at concessional rates. Medicines issued at the facility are as per NACO protocol.
(source: annual review of L&T power)

TECHNOLOGICAL ANALYSIS
SUPERCRITICAL TECHNOLOGY
The term supercritical refers to main steam operating conditions, being above the critical pressure of water (221.5 bar). The significance of the critical point is the difference in density of steam and water. Above the critical pressure there is no distinction between steam and water, i.e. above 221.5 bar, water is a fluid.

Supercritical steam cycle with one reheat.

a ? b: Condensate cycle up to Deaerator
c: Boiler feed pump discharge
c ? d: Feed water heating
d ? e: Main steam generation
e ? f: Expansion in turbine
f ? g: Reheat steam generation
g ? h: Expansion in turbine
(IMAGE SOURCE: L&T POWER WEBSITE)
In the supercritical cycle, equipment is designed to operate above critical pressure of water. Supercritical boilers are once-through where the feedwater enters the economiser and flows through one path and main stream exists the circuit. Typically, current supercritical units operate at 242 bar main steam pressure, 565ºC main steam temperature and 595ºC reheat steam temperature.
EVOLUTION
Supercritical technology has been invented over past 30 years. Advancements in metallurgy and design concepts have made supercritical technology units extremely reliable and highly efficient. There modern supercritical technology is available in large in japan and Europe for boilers & turbines ranging up to 1000 MW.
Advantages
Higher efficiency
Supercritical steam conditions improve the turbine cycle heat rate significantly over subcritical steam conditions. The extent of improvement depends on the main steam and reheat steam temperature for the given supercritical pressure.
Operational flexibility
Supercritical technology units also offer flexibility of plant operation such as
Shorter start up times
Faster load change flexibility and better temperature control
Better efficiency even at part load due to variable pressure operation and
High reliability and availability of output

ENVIRONMENTAL ANALYSIS
For environment health and safety L&T POWER has developed (EHS) capability centre.
The EHS capability centre has developed operating procedures for effective EHS management system across all functions in L&T power. For implementing EHS programmes for smooth operations at project sites & offices, the capability centre also identifies training needs to help put the EHS management system in effective use.
It ensures compliance through a system of monitoring & audit.
The function of EHS capability centre are
Monitor & measure EHS performance.
Incident investigation.

Nonconformity
status of corrective action
Preventive action.
At the centre there is all measures of health & safety of employees at all project sites.

LEGAL ANALYSIS
QUALITY MANAGEMENT

(IMAGE SOURCE: WWW.LNTPOWER.COM)
The quality management capability centre (QMCC) ensures that the quality should be maintained and is good. Quality is taken the first preference in first time and every time. They have established a centre for maintaining quality which is known as QMCC which ensures consistency at all projects of L&T power.
The key objective is to ensure a customer centric organization through institutionalization to meet quality benchmark & services against requirements in contractual documents.
The QMCC also ensures sustainable continual improvement towards achieving customer satisfaction. This is achieved with the vision of ‘Doing it right first time, every time ; in time’ being deployed through capability building, defect prevention & benchmarking, continual improvement and rendering prompt & efficient quality services.
The QMCC gives L&T POWER an unmatched edge when it comes to end to end building and management of large power projects.
INDUSTRY ANALYSIS
MICHAEL PORTERS FIVE FORCES MODEL

SWOT ANALYSIS OF L&T POWER

STRENGTHS
It maintains global HSE standards.

Customer focused approach.

First company to disclose its sustainability performance in engineering & construction.

L&T power propagates super critical technology which is greener than conventional techniques & major advantage for industry.

It provides higher efficiency and maintains good quality.

WEAKNESSES
Order book are less.

Cash conversion.

Growth in assets overweight growth in profits.

OPPOURTUNITIES
Large and greater scope in power industry.

Greener supercritical technology.

Favourable tax exemption.

THREATS
Global slowdown.

Interest rate at risk.

Summer Internship Project Report
On
Fundamental Analysis of LARSEN & TOUBRO (L&T) POWER
At
LARSEN &TOUBRO POWER (L&T POWER)
Submitted to
Institute code:822
Institute Name: INSTITUTE OF TECHNOLOGY AND MANAGEMENT UNIVERSE
Under the Guidance of
Mrs Krishna Bhatt
(Assistant professor)
In partial Fulfilment of the Requirement of the award of degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Shah Arpan Nishidhkumar
178220592041
MBA (Semester-3)
Month & Year: JUNE & JULY 2018
Student’s Declaration
I hereby declare that the Summer Internship Project Report titled “Fundamental Analysis of L&T power “in (L; T power) is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged. If I am found guilty of copying from any other report or published information and showing as my original work, or extending plagiarism limit, I understand that I shall be liable and punished by the university, which may include “Fail” in examination or any other punishment that university may decide.

Enrolment no. Name Signature
178220592041 Shah Arpan Nishidhkumar Place: … Date:………
INDEX
SR NO CONTENTS PAGE NO
1 TITLE OF PROJECT 2 INTRODUCTION 3 LITERATURE REVIEW 4 RESEARCH OBJECTIVES 5
SCOPE OF STUDY 6 LIMITATIONS OF THE STUDY TITLE OF THE PROJECT
FUNDAMENTAL ANALYSIS OF L;T POWER

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INTRODUCTION
L;T Was founded by two Danish engineers Henning Holck-Larsen and Soren Kristian-Toubro in 1938. It is the largest multinational firm headquartered at Mumbai in India. L;T is a major engineering, technology, construction, manufacturing and financial conglomerate with global operations. L;T’s key areas are Hydrocarbon, Infrastructure, Power, Process industries and Defence over 30 countries around the world.

L&T Power is a part of Larsen &Toubro group. L&T Power embraces two projects: Coal based project and Gas based project. It is uniquely positioned to combine rich and diverse stands of engineering, construction, manufacturing and designs providing on turnkey solutions. It combines with the partnership and provides best to its customers.

The L&T knowledge city Vadodara started in 2008 includes various key business in Gujarat. The power business operates as mid &downstream hydrocarbon and L&T Technology services and JV L&T Sargent and Lundy. The campus offers single point engineering and development solutions to core industries and takes a lead in maintaining and sustaining its green lush campus.
L&T Power is mainly engaged in coal based and Gas based power plants.
L&T power plants mainly at Vadodara, Faridabad and Chennai.
L& T POWERS coal based products include: –
TURNKEY SOLUTIONS
CLOSE TO 80% of all the mining in India is for coal, by far the most abundantly available fossil fuel in the country. about 75% of all coal is consumed by the power industry to drive more than 50%of the country’s total installed capacity.

L;T power offers turnkey solutions for large coal based power plant projects (up to 1000 MW) based On Supercritical standards. Similarly, it has demonstrated capability of executing balance of plant packages of both subcritical and supercritical thermal plants on EPC basis. L;T power owns India’s largest integrated manufacturing facility for power plant equipment.
SUPERCRITICAL TECHNOLOGY
L&T-MHPS turbine generators private limited a JV between L&T and MHPS of japan, manufacturers supercritical stream turbines of up to 1000MW Rating. MHPS products have added advantages of ease in maintenance, reduction in vibration stresses and better performance in a corrosive environment. The JV also offers state of the art facility for generator testing and high speed balancing.
SUPERCRITICAL BOILERS
L&T-MHPS boilers PVT LTD, a JV with MHPS of japan, executes supercritical boiler islands of up to 1000 MW on turnkey basis, forging its own considerable engineering and project management prowess with the technological muscle of the Japanese giant.
ENVIRO SOLUTIONS
Flue gas Desulphurisation technology
L&T has a long term technical licence agreement with Chiyoda corporation, Japan, for its thoroughbred FGD technology. The CT-121tmFGD process is a unique technology in which sulphur dioxide is absorbed from flue gas generated by coal-fired, oil-fired and other types of boilers and removed as gypsum. This technology is highly efficient, enabling low-cost removal of flue gas SO2. moreover, it ensures that plant remains compact and easy to maintain.
SELECTIVE CATALYTIC REDUCTION SYSTEMS
L&T-MHPS Boilers PVT LTD, a JV of L&T & MHPS, Japan, technology license agreement for SCR systems with MHPS. It is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC, OR SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India. The SCR systems limit oxides of nitrogen (NOx) emissions.

ELECTROSTATIC PRECIPITATORS
For power plants above 300MW Capacities, L&T supplies Electrostatic precipitators under a technology License agreement with Clyde Bergemann, USA. Advanced technological features of the product ensure energy efficiency and low downtime.
ENGINEERING SERVICES
L&T S&L provides engineering and design services for gas based, coal based power plants. Its systems and design engineering process centres help identify projects, conceive designs, successfully implement them plan up gradation of services.
These services include as follows-
Project conceptualisation
Feasibility studies
Detailed project reports
Tender specifications
Basic and detailed engineering
Procurement support
Review engineering
Construction drawings
Inspection and testing support
Site technical support
Support for commissioning and PG testing
Electrical systems studies
Owners engineering services
Lenders engineering services
Restructuring of SEBs / power sector reforms studies
Special engineering services
L&T-S&L Technologically advanced tools include the PLADES software – an integrated project management, engineering and design automation system – suitable for all aspects of all power plant design, analysis optimisation and 3D modelling.
CONSTRUCTION SERVICES
L&T POWER offers the benefits of five decades of experience in construction. The construction record spans over 50 power plants, totalling approximately 35000 MW of power capacity. Our customers gain from a proven ability to mobilise large workforces, advanced construction techniques, and a thorough understanding of requirements at project sites.

POWER BLOCK AUXILIARIES
COAL PULVERISERS
L&T-MHPS boilers also provides pulverisers which use MHPS advanced Mitsubishi rotary separator to achieve higher fitness directly resulting in improved combustion efficiency and lower emissions. Since there are large capacity pulverisers, they reduce the number of pulverisers that are required to be used as boilers effectively reducing maintenance cost for customers.
CRITICAL PIPING
L&T POWER has a large pool of experienced engineers specialised software and state of the art manufacturing set up for carrying out critical piping work for power plants. Our capability includes alloy steel piping for high pressure and high temperature stream conditions feed water and power cycle piping in boiler and turbine islands.

FOUNDRY
L&T POWER has set up a heavy foundry with a capacity of a 2500T per annum. The foundry will be capable of producing castings up to 60 MT, making L&T POWER 2nd as a company in India. The foundry will cater to the heavy casting needs of supercritical boilers, auxiliaries and turbines.
HEAT EXCHANGES
L&T power through its heavy engineering division(HED) has long proven experience in design manufacturing and delivery of high and low pressure heat exchangers, condensers and de-aerators.
VARIABLE PITCH AXIAL FANS
Variable pitch axial fans are used where high volumes, high aerodynamic performance and precise flow control are required where reliability and continuous running for extended periods are demanded. They are the choice of fans in critical applications for large boilers within the power industry where they are used in both primary air, forced draught and induced draught applications. L&T HOWDEN provides design, manufacture, engineering and supply of axial fans to thermal power plants ranging between 100MW to 1200MW.
ROTARY AIR PREHEATERS
Power boilers air require highly efficient and reliable pre-heaters to ensure optimum performance. The core of the pre-heater, the heat exchange surface is composed of several hundred tonnes of metal plates known as elements. As the pre-heater slowly rotates, at around 1-2 rpm the elements collect heat from hot gas stream being discharged from the boiler & then transfer it to the cold air stream entering to the boiler. This can improve efficiency and boiler performance thus leading to reduce CO2 emissions from the boiler.

OTHER CRITICAL SYSTEMS
Other critical systems include switchyards, BTG block electricals, electrical bop, chimneys, cooling towers, water systems and coal handling plants.
GAS BASED POWER PLANTS include-
TURNKEY SOLUTIONS
L&T POWER executes combined cycle cogeneration gas based power projects on turnkey basis. It has excellent track record in implementing projects in India and overseas. It is the 1st company to execute F technology gas turbine of 250MW class.
IT owns India’s largest integrated manufacturing facility for power plant equipment.
HEAT RECOVERY STREAM GENERATORS
L;T POWER Offers vertical and horizontal HRSG heat recovery from gas turbine
Exhaust gases. The range includes fresh air fired and unfired and supplementary HRSGs up to triple pressure levels, with or without reheat.
STEAM TURBINES
Steam turbines are used in advanced class gas turbine cycle plants. It supplies ratings are 150MW to 300MW.

Vision: –
L;T POWER shall be Indian’s most preferred of state-of-the-art efficient, reliable, environment friendly equipment, systems, services, for fossil and nuclear power plants, thereby contributing to the growth of the nation and shall be an important player in select international markets.

Mission: –
L&T power shall provide world class products and services by consistently meeting customer expectations, quality and on time delivery. L&T power shall achieve sustainable business growth by value creation by all stakeholders through continuous innovation in capabilities, products and services, while remaining agile and adaptable. L&T power shall follow fair, transparent and ethical practices and encourage a culture of care, safe and healthy environment, people empowerment as well as protection of environment and natural resources.
AWARDS AND RECOGNITIONS: –
YEARS
2012
L&T POWER SHINES AT TISS CLO SUMMIT
L&T power won two prestigious awards at the CLO summit India held in Mumbai. The first was gold award in the induction training programme category given to L&T power. The second award was silver award for apprenticeship programme category given to L&T-MHI turbine generators. The awards were presented by TISS in association with Leap Vault.

PMI AWARD FOR 2*384 MW VEMAGIRI PHASE-2 PROJECT
The 2*384 MW combined cycle vemagiri phase-2 power project was awarded the 2nd position in the best project management national conference India 2012, organised by PMI Institute, Chennai.
L&T POWER BAGS BRITISH SAFETY COUNCIL’S SWORD OF HONOUR
Raj Pura project, Dhuvaran PROJECT and L;T-MHI TURBINE GENERATORS factory got the sword of honour which is one of the most coveted awards in health and safety field worldwide. Best award in health ; safety management.
2013
INDIAN GREEN BUILDING COUNCIL AWARDS GOLD CERTIFICATION TO NEW WEST BLOCK AT KNOWLEDGE CITY
The LEED India plaque awarded to west block-2 by the Indian green building council is recognition of the project achievement. The evaluators made a note of high quality construction material that has least ecological impact. LEED India certification provides independent, third party verification that a building project meets the highest performance standards.

LMTG BAGS FROST ; SULLIVAN GREEN MANUFACTURING EXCELLENCE AWARD
L;T-MHI turbine generators PVT LTD bagged the green manufacturing excellence award instituted by frost ; Sullivan BAGGED The green manufacturing excellence award instituted by frost ; Sullivan. LMTG had worked relentlessly to prepare for appropriate response to the assessors from frost ; Sullivan during making of the preliminary report and final assessment carried out in the early part of 2013.

LMB GETS 5 STAR SAFETY RATING
L;T-MHI boilers PVT LTD, Hazira obtained 5-star rating in the British safety council occupational health and safety audit 2013 conducted during 22-26 July 2013 near Surat.

MALWA GETS 5-STAR SAFETY RATING
The 2*600 MW Shri Singaji thermal power plant being set up by L;T Power on an EPC basis got 5-star rating in BSC’S occupational health and safety audit 2013 conducted on July 15-20 2013 at malwa site.
IT TEAM WINS NAASSCOM INNOVATION 3.0 AWARD
The L&T POWER IT team bagged the prestigious NAASCOM innovation 3.0 award in the category of best it driven innovation in manufacturing vertical for IT enabled project review & monitoring system.
2014
LMB WINS NATIONAL ENERGY CONSERVATION AWARD
L&T-MPHS BOILERS won the prestigious award for the year 2013 for energy conservation.
LMTG SHINES AT NAMC
L&T-MHI Turbine generators PVT LTD was awarded gold medal in the heavy engineering at Chennai on June 6 2014.
L&T KNOWLEDGE CITY GETS NDTV-GRUNDFOS MISSION ENERGY CHALLENGE 2014 AWARD
L&T VADODARA won this award for its energy saving initiatives in Knowledge City campus. The award was presented at a function held on June 5,2014.
L&T-SARGENT & LUNDY WINS GOLDEN PEACOCK NATIONAL QUALITY AWARD
L&T S&L won the award by institute of directors at the 24th world congress on total quality & leadership at Trivandrum, Kerala on May 23,2014.

L&T S&L WINS THE STAR PERFORMER AWARD
L&T S&L won the regional export award from EEPC, INDIA in the category of star performer- medium enterprise-engineering services for its outstanding export performance during 2011-12.
2015
L&T WINS CBIP AWARD
L&T POWER won the central board of irrigation and power award in excellence in construction of power projects category.
L&T POWER BAGS RAJIV GANDHI NATIONAL QUALITY AWARD
L&T power bagged the Rajiv Gandhi NATIONAL QUALITY AWARD IN 2013 in large scale manufacturing industry. It was presented by consumer affairs by Indian government.

L&T WONS 1ST PRIZE AT STEAMTECH
L&T MPHS WON the 1st prize in best innovation in technologies for boiler system development at the 8th national steamtech conference at Ahmedabad on February 27& 28.
ICAI HONORS LMBS CFO
CFO of L&T MHPS boilers PVT LTD Mr Anil Mehta was conferred the prestigious ICAI award of CFO.
L&T WINS AWARD FOR EXCELLENCE IN POWER PROJECT EXECUTION
L&T won the award for excellence in power project execution from the CBIP, an institution of government of India for its outstanding performance in the development of the power sector in India. It was presented on January 1 2015 at New Delhi.
2016
MANUFACTURING EXCELLENCE AWARD FOR L&T-MHPS TURBINE GENERATORS PVT LTD
LMTG was awarded GOLD under Large business category by IMEA. The award function was held at Mumbai in India.
CII EXIM BANK AWARD FOR BUSINESS EXCELLENCE
L&T POWER won the cii Exim bank award for business excellence 2016. The award was presented at 24th national quality summit in Bengaluru India.
CSR AWARD FOR L&T POWER
The coveted PMI India award for best CSR project in 2016-17 was bagged by L&T POWER it was presented by PMI Mumbai for CSR activities at project sites.
L&T POWER WINS NATIONAL SAFETY AWARD
It won’s award at the Chhabra project in Rajasthan for outstanding performance in industrial safety and trophy for accident free year 2014.
2017
L;T S;L WINS CII AWARD
It has been conferred CII award for customer management 2016 as emerging leader in services sector by CII. The award ceremony was held at 25th national summit at Bengaluru in INDIA on November 25; 26 2017.
NATIONAL SAFETY AWARDS
L;T POWERS SHREE SINGAJI THERMAL POWER PLANT IN MP bagged the industrial safety award by union government. It was presented at new Delhi on September 17,2017.
SARVASHRESTHA SURAKSHA PURASKAR
L;T POWERS RAPP project won the national safety award for sarvashreshtha suraksha puraskar in new Delhi on April 20 2017.
FICCI QUALITY SYSTEMS EXCELLENCE AWARD
L;T power won the FICCI award for platinum category for quality systems excellence award in construction sector in large org category. It was held at NEW DELHI on January 20,2017.

INTRODUCTION TO FUNDAMENTAL ANALYSIS
Meaning of fundamental analysis
Fundamental analysis is a method of evaluating security in an attempt assesses its intrinsic value, by examining related economic, financial, other qualitative and quantitative factors.
Fundamental analysis studies –
Macroeconomic factors
Macroeconomic factors include economy and industry analysis.

Microeconomic factors
Microeconomic factors include financial analysis and company analysis.
(source: – Investopedia)
Fundamental analysis is the analysis of economy, company and industry analysis. As the goal of the analysis is to forecast the price from profit movements. At the company level, there may be financial data, business concept and trend analysis. At the company level, there will be ratio analysis. At the industry level, there will be porter 5 forces model and swot analysis. At the economy level, there will be PESTEL analysis.
Fundamental analysis is the examination of the underlying forces that affect the well being of the economy, industry groups and companies. As, the most of the analysis, the goal to derive a forecast and profit from future price movements. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy fundamental analysis may focus on economic data to assess the present and future growth of the economy.

LITERATURE REVIEW
Avijit banerjee (1998) reviewed fundamental analysis and technical analysis to analyse the worthiness of the individual securities needed to be acquired for portfolio construction .
The fundamental analysis aims to compare the intrinsic value with the prevailing market price and to take decisions whether to buy, sell or hold the investments. The fundamentals of the economy, industry and company to determine the value of security. If the IV is greater than MV the stock is under priced and should be purchased. He observed that the fundamental analysis could never forecast the MP of a stock at any particular point of time.
Pattabhi ram v (1995) emphasised the need for doing fundamental analysis and equity research before selecting for investment. He has done research in the Indian stock markets.
To estimate the fair value of our company stock requires a forecast regarding earnings or dividends. Fundamentals are company related to profitability, financial strength or risk (Pinto Al 2010) .
Fundamental analysis is one method which evaluate securities in order to measure the intrinsic value such as earnings and dividends in regard of economic, financial and other related quantitative and qualitative factors. Fundamental analysis examine related factors which affect the securities including macro economic factor such as gross domestic production growth, industry analysis such as typical lie cycle of an industry to specific factors in the perspective of a company such as financial condition and management. (Bodie et Al 2009)
This approach commonly stated as top down approach since it initially started with wide perspective that it narrowed down to the specific firm factors. The purpose of conducting fundamental analysis is to evaluate the value which could be compared with market price then considered as underpriced or overpriced.

RESEARCH OBJECTIVES
To study the economy analysis (PESTEL ANALYSIS).
To study porters five forces model
To study the business opportunities.
To study various trends, opportunities and challenges faced by company.
To analyse the financial ratios and interpret it.
SCOPE OF STUDY
The scope of the study is to do financial analysis of the company. The study is restricted to one company in one sector.

LIMITATIONS OF THE STUDY
The study was limited to one sector.
The study was more based on secondary data.
CSR ACTIVITIES
WATER AND SANITATION FACILITIES

Sanitation awareness drives among the community members and community based monitoring committees will ensure that these villages are well on their way to becoming open defecation.
Increase in ground water level, conversion of land from fallow to cultivable of soil erosion through various watershed interventions.
EDUCATION FACILITY
Education infrastructure: L;T Provides infrastructure support to government schools. It provides furniture, set up and equips laboratories, libraries and playgrounds, refurbishes and digitises classrooms and builds toilet blocks for rural schools. All these lay the foundation for good education.
Learning enrichment: Learning enrichment programmes are conducted in schools through NGO partners, with a focus on science, language and maths. ‘Science on wheels’ vans visit schools to provide young, enquiring minds with exciting opportunities to perform hands on science experiments and fire their imagination.
HEALTH FACILITIES

L;T HAS SETUP-
Mobile clinics
Health centres
Health campus
Dialysis centres
SKILL BUILDING;
VOCATIONAL TRAINING FOR WOMEN
To make underprivileged women self-reliant, L;T has introduced vocational training programmes in tailoring, beautician skills, home nursing and food processing.
CONSTRUCTION SKILLS
Free vocational training given for short time certification courses of six months.
SOURCES OF DATA
PRIMARY DATA
Those are the data which are obtained by the study specially designed to full fill the data needs of the problem. Meeting the company professionals collected the information necessary for the study.
SECONDARY DATA
Data which are not originally collected but rather obtained from published or unpublished sources are known as secondary data. In this sources like internet, research report, company journals, magazines are used for research.

ECONOMY ANALYSIS (PESTEL ANALYSIS)
Economic analysis
Graph 1: GDP
YEARS GDP (%) CONTRIBUTION OF POWER SECTOR in GDP (%)
2013-14 6.39 6.04
2014-15 7.41 8.43
2015-16 8.16 5.64
2016-17 7.11 4.72
2017-18 6.74 3.95

ANALYSIS AND INTERPRETATION
During 2013-14 the GDP was 6.39% and its contribution to power sector was 6.04%. in the year 2013-14 there is good amount of contribution of power sector in GDP. As in the year 2013-14 the GDP rate and its contribution to power sector is almost near. During 2014-15 the GDP increased from 6.39% to 7.41% which is 1.02% increase as compared to 2013-14 and its contribution of power sector increased from 6.04% to 8.43% which is 2.39% increase from the past year contribution.
In the year 2015-16 the GDP rate was 8.16% which is a high growth rate as compared to all 5 years and contribution of power sector is 5.64%. here the high growth rate means economy is developing but the contribution of the power sector has declined by 2.79%.
During the year 2016-17 the GDP rate was 7.11% which is 1.02% decrease in respect of the past years. Contribution of power sector in the year 2016-17 GDP rate is 4.72% which is 0.92% decline in respect to the past year.
In the year 2017-18 the GDP rate declined from 7.11% to 6.74% which is 0.37% decline as compared to 2016-17. In the year 2017-18 there were major two impacts because of demonetisation and introduction of GST a new tax scheme in India.

With the implementation of GST, the may businesses face the severe conditions due to tax reforms. Because of no knowledge about this scheme the economy faced major drawback in implementing and adopting the GST in their Businesses.
During the year 2017-18 the contribution of power sector in GDP was 3.95% which has declined due to major two decisions taken by the govt of India under Prime Minister Narendra Modi. The contribution of GDP has declined about 0.77% as compared to 2016-17.

From the GDP graph, we can understand that the GDP in 2013-14 was 6.39%and increased to 7.41% in 2014-15. in the year 2015-16 the GDP growth rate was 8.46% which is the highest growth rate compared to all years. In 2016-17 the growth rate has declined to 7.41%. The growth rate declined in year 2017-18 to 6.74%.
As from the above graph it can be analysed that from the year 2013-14 to 2015-16 the GDP rate is constantly increasing which is a good sign for the economy.

From the above graph, we can understand that the contribution of power sector in GDP in the year 2013-14 is 6.04% which increased to 2014-15 to 8.43% which is high rate of contribution almost there is 2% increase in the contribution. During the year 2015-16 the contribution of power sector declined by almost 3% and its contribution was 5.64%. in the year 2016-17 the contribution declined from 5.64 to 4.73% which is 1% decrease as compared to year 2015-16. In the year 2017-18 the contribution is almost 3.95% of power sector in GDP.
From the above graph, it can be analysed that from the year 2013-14 to 2014-15 it has been increased from 6.04% to 8.43%. from the year 2014-15 to 2017-18 the contribution of power sector in GDP has declined from 8.43% to 3.95%. due to two reasons demonetization and GST tax regime.
GRAPH 2: INFLATION
Years Inflation rate Contribution of power sector in India (%)
2013-14 10 6.04
2014-15 6 8.43
2015-16 4.9 5.64
2016-17 4.5 4.72
2017-18 3.6 3.95

ANALYSIS AND INTERPRETATION
During the year 2013-14 the inflation rate was 10% and contribution of power sector was 6.04%. In the year 2014-15 the inflation rate decreased to 6% and its contribution of power sector was increased to 8.43%. during 2015-16 the inflation rate decrease to 4.9% and its contribution decreased to 5.64%.
During the year 2016-17 the inflation rate was 4.5% and its contribution to power sector was 4.72% which overall matches with the inflation.
During the year 2017-18 the inflation rate decreased to 3.6%and contribution of power sector is 3.95%. when there is high inflation then the contribution to power sector is less and when the inflation is less then contribution starts on increasing.

During the year 2013-14 the inflation rate was 10% and it decreased to 6% in the year 2014-15 which id decline of 4%. In the year 2015-16 the inflation rate was declined 4.9% which is around 1.1% decrease as compared to the year 2014-15. In the year 2016-17 there is decrease in inflation rate 4.5% which is 0.3% decrease as compared to 2015-16.

In the year 2017-18 the inflation rate got decreased to 3.6% and declined by 1% as compared to 2016-17.
From the above inflation chart we can understand that there is constant decline in inflation rate from past 5-year analysis. As higher the inflation then high will be the price. We can understand that the inflation rate has declined from 2013-14 to 2017-18 from 10% to 3.6% ; the decline difference % is 6.4%.

SOCIAL ANALYSIS
Social analysis includes all cultural factors and CSR taken into action.
Building social infrastructure
CSR conducted by L;T POWER is carried nicely, but the risk of trying too many programmes do too many things too soon, it involves the risk. So, L;T has therefore decided to focus on a single scheme: Building India’s social infrastructure. Based on these schemes few villages have been selected in water-stressed districts around the country and more are being identified. Through our integrated community development programmes they partner with the community and address issues of water, sanitation, education, health and skill building.

Active participation from the community is sought between experts and dependent villagers `awaiting relief. Communities pledged their support through ‘shram daan’ or voluntary service.

CSR IN ACTION
For L&T POWER CSR should be implemented thoroughly. After doing the CSR programmes they check it. L&T POWER has a CSR department in Mumbai, supported by different units across the country. The L&T Public charitable trust also make efforts. Their CSR policy is endorsed by Group Executive Chairman.
L&T set up a science centre at Ondipur Boys Higher Secondary School, in COIMBATORE. It provides hands-on-science education for the underprivileged and acts a hub of science learning. It will also act as a resource centre, teacher training centre and venue for project-based and integrated learning.
Letting a hundred of balwadis bloom
The first day -in fact the first weeks -in school can be a daunting experience for a child, especially one from a dis advantaged background. L&T has set up hundreds of balwadis in partnership with NGOs across the country. These centres are used to confine themselves to looking after the health and nutrition requirements of children. They took the step further to provide an enriching learning environment. Preschool education helps underprivileged children prepare themselves to enter the formal school set up. It has helped increase enrolment and reduce dropouts.
A.r.t CAMPAIGN against aids
A new Anti- retroviral therapy ART Centre in north Mumbai has been built and operated by L&T and owned by municipal corporation of greater Mumbai. Our partner is the Mumbai district aids control society. They are collaborating with government departments since 1985. The ART centre offers the entire range of pathology tests for up to 2000 patients. They can avail of free medical and super speciality consultation and X-ray facilities. Ultrasonography is offered at concessional rates. Medicines issued at the facility are as per NACO protocol.
(source: annual review of L&T power)

TECHNOLOGICAL ANALYSIS
SUPERCRITICAL TECHNOLOGY
The term supercritical refers to main steam operating conditions, being above the critical pressure of water (221.5 bar). The significance of the critical point is the difference in density of steam and water. Above the critical pressure there is no distinction between steam and water, i.e. above 221.5 bar, water is a fluid.

Supercritical steam cycle with one reheat.

a ? b: Condensate cycle up to Deaerator
c: Boiler feed pump discharge
c ? d: Feed water heating
d ? e: Main steam generation
e ? f: Expansion in turbine
f ? g: Reheat steam generation
g ? h: Expansion in turbine
(IMAGE SOURCE: L&T POWER WEBSITE)
In the supercritical cycle, equipment is designed to operate above critical pressure of water. Supercritical boilers are once-through where the feedwater enters the economiser and flows through one path and main stream exists the circuit. Typically, current supercritical units operate at 242 bar main steam pressure, 565ºC main steam temperature and 595ºC reheat steam temperature.
EVOLUTION
Supercritical technology has been invented over past 30 years. Advancements in metallurgy and design concepts have made supercritical technology units extremely reliable and highly efficient. There modern supercritical technology is available in large in japan and Europe for boilers & turbines ranging up to 1000 MW.
Advantages
Higher efficiency
Supercritical steam conditions improve the turbine cycle heat rate significantly over subcritical steam conditions. The extent of improvement depends on the main steam and reheat steam temperature for the given supercritical pressure.
Operational flexibility
Supercritical technology units also offer flexibility of plant operation such as
Shorter start up times
Faster load change flexibility and better temperature control
Better efficiency even at part load due to variable pressure operation and
High reliability and availability of output

ENVIRONMENTAL ANALYSIS
For environment health and safety L&T POWER has developed (EHS) capability centre.
The EHS capability centre has developed operating procedures for effective EHS management system across all functions in L&T power. For implementing EHS programmes for smooth operations at project sites & offices, the capability centre also identifies training needs to help put the EHS management system in effective use.
It ensures compliance through a system of monitoring & audit.
The function of EHS capability centre are
Monitor & measure EHS performance.
Incident investigation.

Nonconformity
status of corrective action
Preventive action.
At the centre there is all measures of health & safety of employees at all project sites.

LEGAL ANALYSIS
QUALITY MANAGEMENT

(IMAGE SOURCE: WWW.LNTPOWER.COM)
The quality management capability centre (QMCC) ensures that the quality should be maintained and is good. Quality is taken the first preference in first time and every time. They have established a centre for maintaining quality which is known as QMCC which ensures consistency at all projects of L&T power.
The key objective is to ensure a customer centric organization through institutionalization to meet quality benchmark & services against requirements in contractual documents.
The QMCC also ensures sustainable continual improvement towards achieving customer satisfaction. This is achieved with the vision of ‘Doing it right first time, every time ; in time’ being deployed through capability building, defect prevention & benchmarking, continual improvement and rendering prompt & efficient quality services.
The QMCC gives L&T POWER an unmatched edge when it comes to end to end building and management of large power projects.
INDUSTRY ANALYSIS
MICHAEL PORTERS FIVE FORCES MODEL

SWOT ANALYSIS OF L&T POWER

STRENGTHS
It maintains global HSE standards.

Customer focused approach.

First company to disclose its sustainability performance in engineering & construction.

L&T power propagates super critical technology which is greener than conventional techniques & major advantage for industry.

It provides higher efficiency and maintains good quality.

WEAKNESSES
Order book are less.

Cash conversion.

Growth in assets overweight growth in profits.

OPPOURTUNITIES
Large and greater scope in power industry.

Greener supercritical technology.

Favourable tax exemption.

THREATS
Global slowdown.

Interest rate at risk.

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