Vishweshwar Education Society’s

Indira Institute of Business

Management

GENERAL MANAGEMENT

PROJECT REPORT ON

“AN ORGANIZATIONAL ANALYSIS OF SIEMENS”

Submitted in partial fulfillment for the award of the degree of

MASTER OF MANAGEMENT STUDIES (MMS),

UNIVERSITY OF MUMBAI

Submitted by

MS. Muskan Shaukat Shaikh

ROLL NO.2022072

2022-24

Under The Guidance of PROF. NIKHIL SHIRSAT

 DECLARATION

I hereby declare that this project report submitted by me in partial fulfillment of the
requirement for the award of MASTER OF MANAGEMENT STUDIES (MMS) of
the University of Mumbai is a bonafide work undertaken by me and it has not been
submitted to any other University or institution for the award of any other degree or
diploma certificate or published any time before.

Name: Muskan Shaukat Shaikh

Roll No.: 2022072

Signature of the student

 Vishweshwar Education Society’s
Indira Institute of Business
Management

CERTIFICATE

This is to certify that the project entitled “AN ORGANIZATIONAL

ANALYSIS OF SIEMENS” submitted by Ms. MUSKAN SHAIKH,
Indira Institute of Business Management in partial fulfilment for the
award of Master of Management Studies of Mumbai University is his
original work and does not form any part of the projects undertaken
previously.

Date:
 ACKNOWLEDGEMEN
T

This project has been a great learning experience for me. I take this opportunity to
thank PROF. NIKHIL SHIRSAT my internal project guide, whose valuable
guidance & suggestions made this project possible. I am extremely thankful to him
for his support. He has encouraged me and channelized my enthusiasm effectively.
I express my heartfelt gratitude towards my parents, siblings and all those friends who
have willingly and with utmost commitment helped me during my project work.
I also express my profound gratitude to Dr. ASHOK LUHAR, in charge Director of
Indira Institute of Business Management for allowing me to work on the projects and
broaden my knowledge and experience.
I would like to thank all the professors and the Indira Institute of Business Management
staff, especially the library staff who were very helpful in providing the books and
articles I needed for my project.
Last but not the least, I am thankful to all those who indirectly extended their
cooperation and invaluable support to me.
 EXECUTIVE SUMMARY

The Indian Technology and Services Industry has been a catalyst for change for the
global enterprises, delivering innovative solutions and business impact to help them
become more competitive. India’s story in this space is exceptional and inspirational.
Over the years, India has emerged as the epic enter and the industry is fast
approaching USD 150 billion mark which is a testament to the position of India as a
partner of choice for customer segments. This has involved building deep capabilities
and competencies, new and innovative business and delivery models and a business
strategy to harness investments both within and outside the organization.

India, with growing semiconductor consumption and acceleration in electronics

manufacturing activities, is destined to emerge as an important semiconductor
manufacturing location. As per the recent reports India is one of the fastest growing
semiconductor- consuming markets in the world. The rise of the middle class fueled by
the sustained economic growth is driving the consumer market in India at an
astounding pace.

Pioneering the future of manufacturing, Siemens supports industrial enterprises across

India to reach a higher level of advanced manufacturing and become more productive,
efficient, and competitive.

This study is a modest approach to explore key issues raised in the process of
technological and organizational innovation through a case study of Siemens.
SR. NO. CONTENT PAGE NO.

1. CHAPTER 1. Introduction 1-19

A. Introduction to the Study `1

B. Objective of the Study 2

C. Company Profile 3

D. Strategic Analysis 5

E. Business Model 6

Sector Analysis 8-10

Environmental Analysis 11

A. PESTLE Analysis 11-14

B. SWOT Analysis 15-16

C. Porter’s 5 Force model 17-18

2. Chapter 2. Review Of Literature 20-21

3. Chapter 3. Research Methodology 22-23

5. Chapter 4. DATA INTERPRETATION 24-26

6. Chapter 5. CONCLUSION AND FINDINGS 27-28

7. BIBLIOGRAPHY 29-30
 CHAPTER: 1

INTRODUCTION

1
India is at the epicenter of global services market in technology. India constitutes nearly more than

55% of the global services market. It also has a strong growth of 12.5% against a global growth rate of

4.5%. India is emerging as a global Digital Lab with more than 20,000technology companies, with an

increasing focus on Innovation, of which nearly 50% are digitally focused. There is an increased R&D

footprint with MNC R&D centers growing at 15% and R&D spending growth at 8%. In the technology

innovation space, over 90% are satisfied with India cooperation and over 53% plan to maintain /

expand foot print.

Technology is also transforming the socio-economic landscape in India. India also commands sizeable

domestic market of USD 50 billion with massive growth potential. Indian technology space is the

largest private sector employer with 3.5 million direct and over 10 million indirect employments. This

segment contributes significantly nearly 9.5% of the GDP.

Industry creates a lasting value and is an important motor of India’s economic growth. Our country

sees the need to make industrial production even more professional – to increase productivity,

efficiency (production efficiency and resource efficiency) and international competitiveness. The

future of manufacturing is made possible by Siemens by connecting the real and the virtual worlds of

production with industrial integration, innovative industry software and solutions for resource

efficiency. To increase productivity, Siemens looks at the entire value chain and ensures the seamless

integration of information, communications and automation technologies in all operating processes.

This helps customers optimize all process steps in the entire product development and production

process, making them more productive, efficient, and flexible.

2
OBJECTIVES OF THE STUDY

 To understand the importance technological advancement into the

manufacturing industry

 To know where Siemens stands when compared with its major competitors

 To analyze Siemens in manufacturing industry using various analysis tools

3
Company Profile:

SIEMENS AG is the biggest engineering company in Europe and was created in 1847. The company
is a German multinational conglomerate and the main divisions it operates in include industry, energy,
healthcare and infrastructure and cities. The company is headquartered in Berlin and Munich. The huge
company has close to 349,000 employees in as many as 190 countries worldwide. Global revenue was
reported to be 75 billion Euros in 2013. The highest revenue generating unit for the company is the
industrial automation division. This is followed by the medical healthcare unit which produces
medical diagnostics equipment. The medical unit brings in about 12 percent of the company’s total
profit.

In 2014, the company announced plans to reduce bulk by cutting as many as 16,000 jobs. This could
help the company cut as much as 1 billion Euros in cost. The cuts represent about 3 percent of the
workforce. The jobs will be cut from both the simplification of regional operations and a leaner
divisional structure.

The principal divisions of the company are Industry, Energy, Healthcare, and Infrastructure & Cities,
which represent the main activities of the company. The company is a prominent maker of medical
diagnostics equipment and its medical health-caredivision, which generates about 12 percent of the
company's total sales, is its second-most profitable unit, after the industrial automation division. The
company is a component of the Euro Stoxx 50 stock market index.
Siemens and its subsidiaries employ approximately 362,000 people worldwide and reported global
revenue of around €75.6 billion in 2015 according to their annual report. The von Siemens family
remain the largest shareholder with a stake of 6.9% percent, based on a market cap of
€112 billion, the Siemens family holds €7, 7 billion worth of common stock in the company and
received €201million in dividends in 2016.
Siemens & Halske was founded by Werner von Siemens and Johann Georg Halske on 12 October
1847. Based on the telegraph, their invention used a needle to point to the sequence of letters,

4
Instead of using Morse code. The company, then called Telegraphen-Bauanstalt vonSiemens &
Halske, opened its first workshop on 12 October.

In 1848, the company built the first long-distance telegraph line in Europe; 500 km from Berlin to
Frankfurt am Main. In 1850, the founder's younger brother, Carl Wilhelm Siemens, later Sir William
Siemens, started to represent the company in London. The London agency became a branch office in
1858. In the 1850s, the company was involved in building long distance telegraph networks in Russia.
In 1855, a company branch headed by another brother, Carl Heinrich von Siemens, opened in St
Petersburg, Russia. In 1867, Siemens completed the monumental Indo-European (Calcutta to London)
telegraph line.

Siemens & Halske (S & H) was incorporated in 1897, and then merged parts of its activities with
Schuckert & Co., Nuremberg in 1903 to become Siemens -Schuckert. In 1907, Siemens (Siemens &
Halske and Siemens -Schuckert) had 34,324 employees and was the seventh-largest company in the
German empire by number of employees.

In 2001, Chemtech Group of Brazil was incorporated into the Siemens Group; it provides industrial
process optimisation, consultancy and other engineering services.

Also in 2001, Siemens formed joint venture Framatome with Areva SA of France by merging much of
the companies' nuclear businesses.
In 2002, Siemens sold some of its business activities to Kohlberg Kravis Roberts & Co.
L.P. (KKR), with its metering business included in the sale package.In 2003, Siemens acquired the
flow division of Danfoss and incorporated it into the Automation and Drives division. Also in 2003
Siemens acquired Index software (realtime data organization and presentation).The same year in an
unrelated development Siemens reopened its office in Kabul. Also in 2003 agreed to buy Alstom
Industrial Turbines; a manufacturer of small, medium and industrial gas turbines for €1.1 billion. On
11 February 2003, Siemens planned to shorten phones' shelf life by bringing out annual Xelibri lines,
with new devices launched as spring -summer and autumn- winter collections. On 6 March 2003, the
company opened an office in San Jose. On 7 March 2003, the company announced that it planned to
gain 10 per cent of the mainland China market for handsets. On 18 March 2003, the company unveiled
the latest in its series of Xelibri fashion phones.

5
STRATEGIC ANALYSIS

VISION STATEMENT:

“To remain market leader and technology pace setter in the engineering and electronics industry by
utilizing the high tech expertise in Siemens group worldwide to maintain our strong and prominent
local presence.”

MISSION STATEMENT:

It is our goal to set the benchmark by being the “best in class ” in our fields and to create value for our
customers, wealth for our stake-holders and a future for our employees while giving back graciously
to society a piece of our success.

QUALITY POLICY:

For Siemens, quality is a driving factor which strengthens our ambition to assume a world- leading
role in our environment of logistics automation and material handling technology. Our Quality Policy
is:

“Customer Satisfaction through Continuous Improvement”

Help us to get nearer to our goal, and to become better in our efforts to achieve top quality in
all the products and services that we supply — push us to the limit!

6
BUSINESS MODEL

Product and Services:

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 low-voltage switchgear including circuit protection and distribution
products.

Siemens drives, automation and industrial plant-related products include motors anddrives 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

7
Tomography, fluoroscopy, magnetic resonance, mammography, molecular imaging ultrasound, and x-
ray equipment; and radiation oncology and particle therapy equipment. As of 2015, Siemens finalized
the sale of its hearing-aid (hearing instruments) business to Sivantos.

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 andsystems for postal automation including letter parcel sorting.

Siemens also completed a world record in 2012 for the most electricity generated by bicycles in an
hour. Generating 4,630 watts in an hour in Melbourne, Australia, on December 11, 2012.

Siemens is incorporated in Germany and has its corporate headquarters in Munich. It has operations in
around 190 countries and approximately 285 production and manufacturing facilities. Siemens had
around 360,000 employees as of 30 September 2011.

Electrification, automation and digitalization are the long-term growth fields of Siemens. In order to
take full advantage of the market potential in these fields, Siemens businesses are bundled into nine
divisions and healthcare as a separately managed business.
In 2011, Siemens invested a total of €3.925 billion in research and development, equivalent to 5.3% of
revenues. As of 30 September 2011, Siemens had approximately 11,800 Germany-based employees
engaged in research and development and approximately 16,000 in the rest of the world, of whom the
majority were based in one of Austria, China, Croatia, Denmark, France, India, Mexico, Slovakia,
Sweden, Switzerland, the United Kingdom and the United States. As of 30 September 2011, Siemens
held approximately 53,300 patients worldwide.

8
SECTOR ANALYSIS

SCOPE OF THE BUSINESS

Electrification, automation and digitalization are the long-term growth fields of Siemens. In order to
take full advantage of the market potential in these fields, our businesses are bundled into eight
divisions, and healthcare and Siemens Wind Power as separately managed businesses.

Building Technologies:

Building Technologies is the world market leader for safe, energy efficient and environmentally
friendly buildings and infrastructure.

Headquartered in Zug, Switzerland, the Building Technologies Division is a leading provider of

automation technologies and services for commercial, industrial and public buildings and infrastructures
across their entire lifecycle.

Digital Factory:
Offer a comprehensive portfolio of seamlessly integrated hardware, software and technology based
services in order to support manufacturing companies.
The Digital Factory Division aims to provide its customers with a comprehensive portfolio of
hardware and software products which enable the comprehensive integration of data from
development, production and suppliers.

Energy Management:
Are a leading global supplier of products, systems, solutions, and services for the economical, reliable,
and intelligent transmission and distribution of power

As the trusted partner for the development and extension of an efficient and reliable power
infrastructure, the Energy Management Division provides utility companies and industries with the
portfolio that meets their needs. This includes facilities and systems for the low-voltage and
distribution power grid level, smart grid and energy automation solutions, power supply for industrial
plants, and high-voltage transmission systems.

9
Financial Services:

Expertise is backed by engineering excellence and project management experience, as well as in- depth
knowledge of local and global markets.

Aligning ourselves with the growth fields of electrification, automation and digitalization, we support
customer investments with leasing solutions and equipment, project and structured financing. We
provide capital for SIEMENS customers as well as external businesses and serve as an expert adviser
for financial risks within Siemens. Our financial and industry know-how creates customer value and
enhances customer competitiveness while building trust in new technologies and facilitating their
market launch.

Mobility:

Efficient and integrated transportation of people and goods by rail and road – we handle all products,
solutions and services regarding mobility. The Mobility Division provides answers to all of these
questions with its comprehensive portfolio; because modern, interconnected and IT- based mobility is
the core competency of its five business units: Mobility Management, Turnkey Projects &
Electrification, Mainline Transport, Urban Transport and Customer Services. They have the know-how
to make road traffic flow more smoothly and quickly, make trains more environmentally friendly and
efficient, make train schedules and freight shipments more reliable. We work with our customers to
develop optimal solutions to help overcome their challenges

Power and Gas:

Help customers worldwide to successfully operate fossil power plants and to meet their specific
economic and ecological challenges.

The Power and Gas Division offers utilities, independent power producers, engineering, procurement
and construction companies (EPCs), and oil and gas customers a broad spectrum of products and
solutions for the environmentally-compatible and resource- saving generation of power from fossil
fuels and renewable sources of energy and for the reliable transportation of oil and gas.

10
Power Generation Services:

As service partner we ensure high reliability and optimal performance of rotating power equipment
within the utility, oil & gas, and industrial processing industries. Offers expert factory or field service
support, maintenance, repairs, replacements, modernizations and upgrades of components, such as gas,
steam and wind turbines as well as generators, in large-scale and industrial power plants, and
compressors for the oil and gas industry

Process Industries and Drives:

Measurably increase your productivity and improve your time to market – with innovative, integrated
technology across the entire lifecycle.

The process industry is one of the core businesses of Siemens. Countless applications, installed
throughout a wide variety of industries, demonstrate expertise. But even more important is the value
added for customers, enabling them to increase their productivity in every part of the value chain. With
precise knowledge of the different market segments, SIEMENS can help respond faster and more
specifically to new market requirements and developments, and thus strengthen your competitiveness.

11
ENVIRONMENTAL ANALYSIS

Environment analysis is a comprehensive analysis of the internal and external environmental factors
affecting an organization. A wide range of influences surrounding businesses can affect organizational
decision making powers, strategies, process and performance.

PESTEL ANALYSIS

Pestle analysis gives a brief understanding about the external business environment. It is a tool to
understand the "Big Picture" of the Environment which you are operating, and gives an idea about
opportunities and threats. By using this tool, companies maximize their opportunities and minimize
the threats.

POLITICAL FACTORS:

Political factor describes constancy and policies of a government. It includes personal interest on
politicians which creates a political environment.

For Example in India, Bangalore is known as IT city or in other words, IT center of Indiaand it has
happened because of political support.

 Today in the time of uncertainty and tumult Siemens stands out to be a fire of
political strength.
 In 2002 when the government forced extra duty on LDO it is a fuel using by power
plant at that time Siemens was adversely affected.
 Also In the special projects of power sectors 4%, CVD was imposed.
 Siemens prohibits directly or indirectly by manufacturing, developing and distributing
the weapon under its export control policy.

12
ECONOMIC FACTORS:

Economic factors influences business in a country. And this kind of factors includes employment,

inflation rate, gross national products, a balance of payments and interest rate consumer income etc.

 Siemens headquarters Germany was majorly affected because of a slow global economy which
resulted in fewer investments. And in 2008 Gross domestic product was 1.3%.
 Siemens is having strong order backlog which softened the effect of a global recession on
company's revenue and profit. Siemens expects profit between 6.0 billion and 6.5 billion in the
fiscal year 2010.
 Due to recent economic woes, Siemens cuts around 4% of their employees to achieve savings of
1.2 billion Euros.
 To gain investors’ confidence internal changes are expected. And also Siemens expects new
orders of 15 billion Euros over 3 years.

SOCIAL FACTORS:

Social factors describes the society where an organisation exists. This factor includes customs, values,
lifestyle, beliefs and population of the social environment. This factor has a major impact on the
world in current times.

 To find better jobs, better lifestyle and better education most of the people are moving in urban
areas. And changes in urbanization exert a big impact on companies this time.
 Indian customers are highly perspicacious, educated and well known about all products they buy.
The social corporate responsibility of Siemens:

 Siemens is having national committee underworld energy council.

 Siemens is a member of the association in innovations, Advance research and

Entrepreneurship.
 Traditionally Siemens support various kinds of projects and charity activities.

13
TECHNOLOGICAL FACTORS:

Technological factors defines technology availability in the country. It indicates research and

development. And this factor is a key factor in this kind of challenging business environment.

Technology helps to reduce cost, improve quality and innovation.

 To developing technology Siemens and other hi-tech and electronic companies are facing
a different kind of challenging business imperatives.
 In this global market, Siemens have to develop products which are highly innovative and
cost sensitive.
 In continuously changing technology company is continued to squeeze by product
design complexities, regulatory requirements and price points.
These pressures threaten to help commoditization, profit margins and manufacturing process.

Today Siemens is most future-thinking company which has built global innovation networks
which help them to improve their value chain, products and processes. And all these networks
help an organization to meet in following business imperatives.
 By maximizing globalization

 By compressing time-market

 By increasing output in innovations

ENVIRONMENTAL FACTOR:

Environmental factor is the most important factor in today's world. It includes climate and weather
change. And due to global warming, the climate is changing. This is having a big impact on many
industries to produce environment-friendly products and processes.

 Siemens is known as green infrastructure giant

 Customer’s demands in energy are:
1. Decrease energy consumption
2. Decrease electrification cost
 Siemens always stay ahead by investing more and more money in environment portfolio.
 Siemens products make their customers become more eco-friendly, energy efficient
and competitive.

14
LEGAL FACTOR:

Legal factors describe laws passed by a government.

For example, in India, all business operations include laws like The Trademark Act 1969, Essential

commodities Act 1955, Standards of Weights and Measures Act 1969 and Consumer Protection Act

196 etc. It will also affect the firm's cost (E.g. if a new system has to be developed).

 Labour legislations and foreign trade regulations.

 By reducing greenhouse gases Siemens power sector will bear burden

 By implementing 360 workforce management, Siemens has realized lots of returns on

their investments.

Siemens is a member of the united nation global compact

15
SWOT ANALYSIS

The most important part of the strategic planning process is the internal and external environment. The

external environmental factors will be classified as opportunities and threats. And internal

environmental factors will be classified as strength and weakness. SWOT analysis is referred by

analyzing the strategic management. And it is a useful tool for decision making in all sort of situation

in business and organization. It also measures business unit and ideas.

SIEMENS STRENGTHS:

Internal strength defines corporate capabilities, competencies and resources which helps companies to

make a strategy. It also defines comprehensive assessment of internal environments strength and

weaknesses.

 Siemens is more focused on their strategies.

 Diversity-A most successful factor for Siemens

 Decentralization

 Siemens is having very good brand image

 Siemens is having their own production process

 Always implement local strategy but think globally

 Wide range of products with high quality

 Siemens is having certification of ISO (international Organization for Standardization)

 Siemens provide excellent goods and services and online services to their customers.

16
SIEMENS WEAKNESSES:

 Internal weakness diminishes company's competitiveness.

 Siemens main weakness is the low price for high-quality products.

 Siemens is having very complicated organizational structure.

 Mixed culture

 Weak appraisal system for employees

 Less employee satisfaction with fewer promotions.

SIEMENS OPPORTUNITIES:

External opportunities are like benefits which will be achieved by pursuing available
external opportunities and vision.

 Having a very strong position and growing opportunities in many countries.

 More and more overseas projects

 IT Development

 Market unification opening up

 Change in technology

THREATS:

External threats are defined as Situation that may go wrong, dangers, Variations and other
factors.

 The slow global economy has created threats for many companies including
Siemens.
 Same policies and promotions are adopted by competitors.

 Competitors are providing less product pricing

17
PORTER’S 5 FORCES ANALYSIS

It is a powerful tool to understand that where power lies in business. And this tool gives an
understanding about the strength of the company. And it also helps to avoid taking wrong steps in
future. To stay ahead and successful in this competitive market Siemens use Porters 5 forces analysis
against their competitors. Porter’s 5 forces analysis describes:

SUPPLIER POWER:

Supplier power defines bargaining of the power of the suppliers. It means how much it is easier for
your suppliers to hike their prices. It is proved that in today's market it is very difficult for the
companies to make a profit because of recession. Siemens is having many competitors like Cisco,
Haier, Hitachi, Larson and Turbo, Ericsson, Phillips, Samsung, Toshiba, Vistas Wind system etc. All
of these major corporations are suffering because of “Recession". And because of this, all the
companies approach their suppliers to cut their prices and it is very difficult for the suppliers to sell
their goods at very low price with fewer profit margins. And because of this most of the big companies
prefer to buy goods from abroad at very low cost.

For e.g. China. From China, they buy goods for a cheap price and sold their products to the customers
at reasonable price.

BUYER POWER:

Buyer power defines bargaining power of the customers. In today's business market people become
more intelligent and more concern about product price and quality. And they choose that kind of
products which makes their life easier and use that product in daily life. Siemens understands their
customers’ needs very well and always provide best price and quality to their customers. Siemens
provides best consumer products like hearing instruments, home appliances and lighting. It is very
important for the companies to understand customers’ demands

18
COMPETITIVE RIVALRY:

It defines bargaining power of competitors. It means that if you have many competitors which provide
almost same quality and price as you offer then you must have to act powerfully in that situation but if
you have a good brand image and something unique compare to your competitors then you have
enormous strength. Siemens always provides the best price, quality and excellent services to their
customers to achieve their success against all competitors.

THREATS OF SUBSTITUTION:

It happens when customers find a different way of doing what you do. And this kind of things reduces
your product demand. Because of this reason, Siemens has started to investor and more money in
research and development to find more and more advanced technology and uniqueness in their
product.

THREATS OF NEW ENTRANTS:

In all sectors of business environment new competitors are increasing rapidly and some of them find
success and some not. Siemens is a big brand and having a good capital to capture small market too.
Siemens, Samsung, Toshiba, L & T and other big corporations have also covered small rural areas and
sold their products at a very comparative price. New entrants are having less scope to capture market
against these big giants because of lack of capital and resources.

19
 CHAPTER: 2
REVIEW OF LITERATURE

20
21
 CHAPTER: 3
RESEARCH METHODOLOGY

22
RESEARCH METHOD:

DESCRIPTIVE

The Research study is a descriptive method of understanding how the economy

TYPE OF RESEARCH:
SECONDARY RESEARCH

This research study involves all the findings, theoretical information, news articles,
webarticles, and also government online release towards the research title.

PRIMARY RESEARCH

Case Study Research Design

Understanding the research title with the personal perspective by studying the
industrialpattern and using various tools to compare Siemens with its competitors

23
 CHAPTER: 4
DATA INTERPRITATION

24
General Performance Review

During financial year 2015-16, India’s macro-economic environment remained

subdued. Public sector capital expenditure was restricted to renewable energy, power
transmission, highways and railways while private sector capital expenditure remained
muted due to low capacity utilization.

During the financial year, GDP growth was at 7.1 percent compared to 7.5 percent in
June2015. The retail inflation rate stood at 4.1 percent during the financial year, which
encouraged Reserve Bank of India to continue on the cycle of interest rate cuts initiated
inthe last financial year. Manufacturing growth measured in terms of capacity utilization
also remained low at around 72 and 74 percent while the index of industrial production
witnessed a sharp fall in growth year-on-year to –0.7 percent compared to a growth of
4.1percent last year.

The Government has made commendable progress in its reform-oriented action since it
came to power in 2014. Its range of investor-friendly measures on infrastructure,
taxation, fuel prices and coal block allocations, amendments to electricity act, skill
development have led to higher investor confidence. One of the major successes in this
regard was the passage of the Goods and Services Tax bill by the Parliament and it is
now imperative that this is formally introduced in the country at the earliest. For a
sustained growth in theeconomy however, an increase in public sector spending and an
increase in demand and consumption is critical and the

Government will need to introduce measures to enable these.

During financial year 2015-16, New Orders were up by 20 percent at ` 121,199 million,
compared with ` 101,322 million in financial year 2014-15. Sales (excluding Other
Operating Revenues) were up by 3 percent to ` 105,442 million, compared with ` 102,831
million in financial year 2014-15, while Profit after Tax (PAT) was up by 144 percent at
28,880 million compared with ` 11,833 million in financial year 2014-15. During
financial year 2015-16 the exceptional items stood at ` 29,923, compared with ` 7,828 in
financial year 2014-15.

25
Operational Performance

The Company’s business is aligned into Divisions: Power and Gas, Energy
Management, Mobility, Building Technologies, Digital Factory, and Process Industries
& Drives. During the financial year, the Company completed the sale and transfer of its
Healthcare undertaking, as a going concern on a slump sale basis, for a sale
consideration of ` 30,500 million (Indian Rupees Thirty Thousand Five Hundred
million), to Siemens Healthcare Private Limited, a subsidiary of Siemens AG. The
Healthcare Undertaking contributed ` 12,708 million to the total income from operations
of the Company up to June 30, 2016.

26
 CHAPTER: 5
CONCLUSION & FINDINGS

27
Pioneering the future of manufacturing, Siemens supports industrial enterprises across India to reach a
higher level of advanced manufacturing and become more productive, efficient, and competitive.

Industry creates a lasting value and is an important motor of India’s economic growth.Our country sees
the need to make industrial production even more professional – to increase productivity, efficiency
(production efficiency and resource efficiency) and international competitiveness.

The future of manufacturing is made possible by Siemens by connecting the real and the virtual worlds
of production with industrial integration, innovative industry software and solutions for resource
efficiency. To increase productivity, Siemens looks at the entire value chain and ensures the seamless
integration of information, communications and automation technologies in all operating processes.
This helps customers optimize all process steps in the entire product development and production
process, making them more productive, efficient, and flexible.

Siemens is supporting its customers in India with pioneering concepts and technologies asthey advance
toward the future of manufacturing. Automotive manufacturers, for example, are being forced to
continually enhance their productivity and quality in the face of strong global competition and
increasing demands from their customers. In a future scenario, individual manufacturing elements are
able to communicate with one another and make decisions independently.

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BIBLIOGRAPHY

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The Business Environment - Francis Cherunilam

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