ENGINEERING ECONOMICS
SUBMITTED TO:
Dr. Rajesh Acharya
Department of Humanities and Social Science
SUBMITTED BY:
Satyam Sarkar (12EE84)
Ranjeet Kumar Singh (12EE80)
Ayush (12EE24)
N Kushal (12EE57)
Yogesh Kumar Meena (12EE103)
BRIEF INFO ABOUT COMPANY:
The Siemens AG is a German multinational engineering and electronic
conglomerate company which was founded by Werner von Siemens on 12
October [Link] then it has worked with many companies and manufactured
various range of products and services. Its headquarters is in Berlin and Munich.
The Siemens Group in India has emerged as a leading inventor, innovator and
implementer of leading-edge technology enabled solutions operating in the core
business segments of Industry, Energy, Healthcare and Infrastructure and Cities.
The Groups business is represented by various companies that span across these
various segments.
Siemens brings to India state-of-the-art technology that adds value to customers
through a combination of multiple high-end technologies for complete solutions.
The Group has the competence and capability to integrate all products, systems
and services. It caters to Industry needs across market segments by undertaking
complete projects such as Hospitals, Airports and Industrial units.
The Siemens Group in India comprises of 13 companies, providing direct
employment to over 19,000 persons. Currently, the group has 21 manufacturing
plants, a wide network of Sales and Service offices across the country as well as
over 500 channel partners.
Today, Siemens, with its world-class solutions plays a key role in Indias quest for
developing modern infrastructure.
BUSINESS LINE OF COMPANY: MAJOR PRODUCTS
Siemens offers a wide range of electrical engineering- and electronics-related
products and services. Its products can be broadly divided into the following
categories: buildings-related products; drives, automation and industrial plant-
Related products; energy-related products; lighting; medical products;
and transportation and logistics-related products
Siemens' buildings-related products include building-automation equipment and
systems; building-operations equipment and systems; building fire-safety
equipment and systems; building-security equipment and systems; and lowvoltage switchgear including circuit protection and distribution products.
Siemens' drives, automation and industrial plant-related products include motors
and drives for conveyor belts; pumps and compressors; heavy duty motors and
drives for rolling steel mills; compressors for oil and gas pipelines; mechanical
components including gears for wind turbines and cement mills; automation
equipment and systems and controls for production machinery and machine
tools; and industrial plant for water processing and raw material processing.
Siemens' energy-related products include gas and steam turbines; generators;
compressors; on- and offshore wind turbines; high-voltage transmission products;
power transformers; high-voltage switching products and systems; alternating
and direct current transmission systems; medium-voltage components and
systems; and power automation products.
Siemens' OSRAM subsidiary produces lighting products including incandescent,
halogen, compact fluorescent, fluorescent, high-intensity discharge and Xenon
lamps; opto-electronic semiconductor light sources such as light emitting diodes
(LEDs), organic LEDs, high power laser diodes, LED systems and LED luminaires;
electronic equipment including electronic ballasts; lighting control and
management systems; and related precision components.
Siemens' medical products include clinical information technology systems;
hearing instruments; in-vitro diagnostics equipment; imaging equipment including
angiography, computed tomography, fluoroscopy, magnetic resonance,
mammography, molecular imaging ultrasound, and x-ray equipment; and
radiation oncology and particle therapy equipment.
Siemens' transportation and logistics-related products include equipment and
systems for rail transportation including rail vehicles for mass transit, regional and
long-distance transportation, locomotives, equipment and systems for rail
electrification, central control systems, interlocking, and automated train
controls; equipment and systems for road traffic including traffic detection,
Information and guidance; equipment and systems for airport logistics including
cargo tracking and baggage handling; and equipment and systems for postal
automation including letter parcel sorting.
(I)
A Siemens high-voltage transformer
(III)
A Siemens wind generation turbine
(II)
A Siemens SPECT/CT scanner in operation
(IV)
A Siemens steam turbine rotor
Buisness Segments
Research Race
R&D spending as % of revenue
48%
Industry
5.1
4.9
4.8
17%
4.1
3.8
4.8
5.3
5.5
4.2
Energy
35%
Healthcare
2007
2008
2009
Siemens
2010
2011
GE
Siemens provides answers to the worlds toughest questions. This is Siemens tradition for
past the 160 years.
COMPARISON WITH PEERS:
Siemens has many Competitors including companies like Larsen & Tubro, Bharat
Heavy Electricals (BHEL), Adani ports, etc.
A comparison is made based on market capital, total assets, sales and profit
among these companies and is shown below:
*Note: All the data presented are in Crores
Company
Name
Last Price
Market Cap.
( Cr.)
Sales
Turnover
Net Profit
Total Assets
Larsen
1,495.25
138,793.99
56,598.92
5,493.13
45,120.75
BHEL
228.05
55,817.52
39,108.83
3,460.78
35,701.82
Adani Ports
258.90
53,593.64
4,345.78
2,016.17
17,602.66
Siemens
824.60
29,365.65
11,352.66
193.95
4,030.30
ABB
1,034.90
21,930.40
7,721.99
179.31
3,297.67
Thermax
857.30
10,215.27
4,302.16
252.97
2,214.30
GMR Infra
21.80
9,507.53
786.29
165.90
12,394.72
NBCC
750.85
9,010.20
4,066.96
247.14
1,127.29
EngineersInd
236.40
7,965.18
1,823.59
479.76
2,461.75
ANNUAL DATA:
Sales is the total amount of products or services sold by the company
Net Sales (Rs in crores)
14000
12000
10000
8000
6000
4000
2000
0
Sep '09
Sep '10
Sep '11
Standalone
consolidated
Sep '12
Sep '13
DATA ANALYSIS:
QUARTERLY DATA OF SIEMENS INDIA LTD.
Year
Quarter
Values
2008
2142.42
1820.45
2009
2010
2011
2012
MA(4)
CMA
PSI
2463.62
2013.86
2043.928
120.5336
1628.95
2073.995
2086.148
78.08412
2382.96
2098.3
2106.463
113.1262
1917.67
2114.625
2144.33
89.4298
2528.92
2174.035
2154.425
117.3826
1866.59
2134.815
2175.906
85.78449
2226.08
2216.998
2283.508
97.48512
2246.4
2350.018
2433.958
92.29413
3061
2517.898
2629.411
116.4139
2538.11
2740.925
2809.726
90.333
3118.19
2878.528
2938.361
106.12
2796.81
2998.195
2980.54
93.83568
3539.67
2962.885
3047.773
116.1396
2396.87
3132.66
3138.475
76.37053
3797.29
3144.29
3123.729
121.5627
2843.33
3103.168
3114.264
91.30023
3375.18
3125.36
2485.64
PSI TABLE
YEAR
MEDIAN
SI
QUATER
2008
2009
2010
2011
2012
1
-------- 113.1262 97.48512 106.12 121.5627 109.6231 109.5538
2
-------89.4298 92.29413 93.83568 91.30023 91.79718 91.73917
3
120.5336 117.3826 116.4139 116.1396 ---------- 116.8982 116.8244
4
78.08412 85.78449 90.333 76.37053 ---------- 81.93431 81.88252
MEDIAN =
400.2528
Adjustment Factor=400 MEDIAN = 0.99 9368
FORECASTING
Y(TREND)
1955.587
1984.376
2108.824
1989.374
2175.15
2090.35
2164.72
2279.595
2031.951
2448.681
2620.173
3099.697
2846.263
3048.654
3029.907
2927.206
3466.141
3099.363
2889.106
3035.617
Y(TREND) =
51290.74
XT
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
XT=
190
XT*Y
0
1984.376
4217.648
5968.123
8700.601
10451.75
12988.32
15957.17
16255.61
22038.13
26201.73
34096.67
34155.16
39632.51
42418.7
43908.09
55458.26
52689.17
52003.91
57676.73
XT*Y =
536802.7
XT^2
0
1
4
9
16
25
36
49
64
81
100
121
144
169
196
225
256
289
324
361
XT^2 =
2470
USING LINEAR REGRESSION ANALYSIS:
Y = (20*A0) + (A1*XT)
XT*Y = (A0*XT) + (A1*XT^2)
On Solving Above Two Equations We Obtain:
A0 = 1856.795
A1 = 74.499
TREND = 1856.795 + 74.499* XT
FORECAST VALUE FOR YEAR 2013
QUATER
TREND(Y)
3346.758
3421.255
3495.752
3570.249
FORECAST SEASONAL VALUE FOR YEAR 2013
QUARTER
FORECASTED VALUE
ACTUAL VALUE
ERROR
3666.501
2955.56
710.9405
3138.631
2642.64
495.9906
4083.89
3258.88
825.0101
2923.41
2393.9
529.5101
Using the data, a graph is drawn showing the variation of the
companys revenue over the yearly quarters.
Sources:
Company details : [Link] article
Companys Revenue Data : [Link]
Companys Competitors : [Link]
Images : [Link]