POWER CONTROLS & RAMBHAD ELECTROMAGNETIC PRODUCTS PVT. LTD.

Head Office: Plot No. 8, Ambazari Layout,Behind Dharampeth Science College,Nagpur. PIN – 440033

Phone: (07104) 237 511

Cell: 99237 01225

E-Mail: rahul_rambhad@yahoo.com

Table of Contents

ABOUT COMPANY...................................................................................................................................................... 2

Advantages of Being Organized......................................................................................................................3

Geographical Presence of Rambhad Electro-Magnetic Products Pvt. Ltd....................................3

Geographical Presence of Power Controls.................................................................................................4

INDUSTRY OVERVIEW.............................................................................................................................................4

OUR PRODUCTS & SERVICES................................................................................................................................6

Electrical Construction & Contracting..........................................................................................................6

Refurbishing of Distribution Transformers...............................................................................................6

Repairing of Distribution Transformers.....................................................................................................7

Manufacturing of Distribution Transformers...........................................................................................7

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ABOUT COMPANY

Power Controls is established in year 1972 and is in the business of Maintenance of Distribution Transformers, Electrical Contracting, and Manufacturing of Transformers. The main client of the company is Maharashtra State Electricity Distribution Company Ltd. We have already executed several contracts worth Crores of Rupees for MSEDCL. These projects include Refurbishing of Transformers, Repairs of Transformers, Commissioning of Distribution Transformers, Erection of Distribution Transformer Centre, Erection, Commissioning and Testing of HT Line of 33KV, 11KV, LT Lines and Street Lights, Commissioning of Pumps and DTC Meters. Currently we are executing orders for erection of 132KV Line, 33KV Line, 11KV Line, LT Line, and DTC Metering across state of Maharashtra.

In the year 1994, the proprietor of the company has also established another venture to concentrate on the business of Electrical Contracting in name of Rambhad Electro-Magnetic Products Pvt. Ltd. (REMPPL) Fifteen years hence, the company has established itself in the business and currently is executing bulk orders for repairs of transformers in Nashik and Kolhapur Zone of MSEDCL in addition to aforementioned Electrical Contracting projects across the Maharashtra.

Currently, Power Controls is registered with Maharashtra State Electricity Distribution Company Limited as Manufacturer-Vendor of Distribution Transformers of 63KVA, 100KVA and 200KVA capacities and voltage rating of 11000/433 Volts. This gives REMPPL ready access to MSEDCL approved distribution transformers thus rendering the cutting edge in field of Electrical Contracting.

The management committee of both of our companies is essentially the same. Even though the one of the company has a proprietary constitution, it works in true style of the corporate where all the major decisions are taken by the managers of the company called especially once every month. In addition to discussing the major issues, the management team also reviews the company’s performance over last 30 days and takes corrective actions if necessary. The managerial responsibilities of each branch of the company are divided primarily in two parts – Production and Operations. The Electrical Engineering Graduate takes care of the Production function and Operations function is executed by the commerce graduate. Additional technical manpower is assigned to the branch in event of execution of orders for Electrical Construction from our pool of Engineers or by way of fresh recruitment.

Together Rambhad Electro-Magnetic Products Pvt. Ltd. and Power Controls enjoy nearly 13% of the total market share in Maintenance of Distribution Transformers making it the largest in its field. Also association of these companies have geographical exposure of nearly 75% of state of Maharashtra which is being utilized effectively for Sales and Marketing of Distribution Transformers manufactured in captivity and accepting orders for execution of Electrical Construction work. In addition to Repairing of Transformers at 17 places, we are executing the work of Electrical Construction at 6 places in state of Maharashtra. All these sites have the average spatial distance of 100 kilometres. Though

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we have good sized orders for Manufacturing and Repairs of Transformers and Electrical Contracting, our market penetration integrated with effective use of localised manpower gives us enough spare capacity to advance ourselves further in all of our business lines. The following table summarizes the past financial performance of the companies:

Financial Year Power Controls REMPPL Total

2010-11 2,22,97,190.00 65,06,699.00 2,88,03,889.00

2009-10 2,94,56,222.00 97,51,178.00 3,92,07,400.00

2008-09 3,70,54,185.00 95,07,120.00 4,65,61,305.00

2007-08 2,58,79,525.50 73,21,333.40 3,32,00,858.90

2006-07 2,23,14,815.00 49,90,283.00 2,73,05,098.00

2005-06 2,20,15,169.00 37,75,273.00 2,57,90,442.00

2004-05 1,96,14,609.00 33,62,822.00 2,29,77,431.00

2003-04 1,60,78,972.00 23,06,852.00 1,83,85,824.00

ADVANTAGES OF BEING ORGANIZEDWe are listing down the important advantages of working in consortium with Power Controls –

Economies of Scale: The ‘A-grade’ raw material is procured in bulk which gives us the price advantage of around 10% as compared to other players in the industry which effectively lowers out production cost

Relationship Maintenance / Marketing: Since we are present at 18 places in state of Maharashtra which accounts for 70% of Maharashtra, the employees of Maharashtra State Electricity Distribution Company Ltd. often stay in touch with our Branch Heads and it becomes relatively easy for us to grow the quantum and profitability of business.

Quality Control: The peripheral activities like HR and Accounting are outsourced to the Head Office to give enough scope to Branch Heads so that they can concentrate on Production and Marketing.

Liquidity Maintenance: Because of our geographical spread, we work in various Zones of MSEDCL and hence we are assured of payments from few Zones if not all.

To further substantiate our claims of being organized that we are present at 20 places in state of Maharashtra, we are listing the addresses of our branches.

GEOGRAPHICAL PRESENCE OF RAMBHAD ELECTRO-MAGNETIC PRODUCTS PVT. LTD.

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1) 1, Co-Operative Industrial Area, Sayane (B), Malegaon, District – Nashik. Pin – 423203

2) Shed No. W-20, MIDC Area, Avadhan, Dhule. Pin – 424311

3) Shed No. 30, Faizpur-Savada Industrial Area, Taluka - Raver, District – Jalgaon

4) Survey No. 413/1 at Post Korti, Tahsil – Pandharpur, District – Solapur

GEOGRAPHICAL PRESENCE OF POWER CONTROLS

Sr. Address

1) Shed No. W-22&23, MIDC Phase-III, Shivani, Akola. Pin – 444001

2) Shed No. G-39, MIDC Area, Ahmednagar. Pin – 414111

3) Shed No. BH/8, Opposite AK Ice Factory, MIDC Area, Beed. Pin – 431122

4) Shed No. W-19, MIDC Area, Avadhan, Dhule. Pin – 424311

5) Toranmal Development, Near Railway Crossing, Shahada Road, Dondaicha. Pin – 424408

6) Shed No. V-180, Ajantha Road, Additional MIDC Area, Jalgaon. Pin – 425001

7) Near Old Milk Dairy, Mondha Market, Kannad. Pin – 431103

8) Shed No. 33, Cooperative Industrial Estate, Sayane (Budruk), Malegaon. Pin – 423203

9) Shed No. A-32, MIDC Area, Dasarkhed, Malkapur. Pin – 443101

10) Near Sahakari Society, Telephone Exchange, Naigaon, Dist-Nanded. Pin – 431709

11) Shed No. A-32, MIDC Area, Ghatoli, At Post Dhundi, Pusad. Pin – 445001

12) Shed No. W-11&12, MIDC Area, Khanapur, Parbhani. Pin – 431401

13) Cooperative Industrial Estate, MIDC Area, Loni, Udgir. Pin – 413517

14) Shed No. 11&12, MIDC Area, Samudrapur, Dist – Wardha

15) Plot No. D-82, MIDC Area, Supe-Parner, Dist – Ahmednagar

16) Plot No. C-119, MIDC Area, Chincholi-Kati, Solapur.

17) Plot No. A-9&10, MIDC Area, Gadegaon, Dist-Bhandara

18) Plot No. A-17, MIDC Area, Umrer, Dist-Nagpur

INDUSTRY OVERVIEW

Primarily the market of maintenance and servicing of transformers came into existence because of the inability of erstwhile Maharashtra State Electricity Board (MSEB) to repair the transformers in the workshops it owns. The biggest contributor to this market is Maharashtra State Electricity Distribution Company Limited (MSEDCL) created by

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trifurcation of MSEB. Other noteworthy contributor to this market is Coal India Limited through its various subsidiaries like Western Coalfields Limited and South Eastern Coalfields Limited.

MSEDCL has its own chain of workshops to maintain and service the failed transformers workshops and are known as Transformer Repairing Workshops (TRW). But like the majority of Government Institutions, the efficiency of these TRW is very less and the MSEB / MSEDCL goes on outsourcing this function of maintenance and servicing of transformers to private parties on Item Rate Contract basis. This market of maintenance and servicing of transformers can be divided in two segments depending on the type of transformers i.e., Distribution Transformers Servicing & Maintenance segment and Power Transformers Servicing & Maintenance segment. Here we are focusing on Distribution Transformers Servicing & Maintenance segment.

Maharashtra State Electricity Distribution Company Ltd. has over 235,000 distribution transformers in service and the failure rate of transformers is nearly 10% per annum. Hence, the effective market size in state of Maharashtra is around 23,000 transformers or Rs.50 Crores per annum (as per the latest estimation in accordance with policies pronounced by MSEDCL) and is dominated by unorganized players.

The work of maintenance and servicing of transformers is allotted to the private parties by floating tenders and calling for sealed bids. Once these bids are called, the MSEDCL opens the bid and the large chunk of work is given to the lowest bidder(s) on Item Rate Contract basis. Till mid of this year the work was allotted in this manner with scant regard to standards proposed by Bureau of Indian Standard (BIS2026). But, after the trifurcation MSEDCL is trying very hard to bring the transformers at par with the standards proposed by BIS.

Earlier, the work of maintenance and servicing of transformers used to be on per transformer basis regardless of the locale of transformer and was allotted to many private parties. Now the same work may be given for a Division / Circle of MSEDCL on Lump-Sum basis and the chances are that it will be given to either a single company or a consortium of companies. Such tenders for a particular Division of MSEDCL are estimated to Rs.2 Crores on an average. There are more than 100 divisions of MSEDCL in State of Maharashtra. This market of maintenance and servicing of transformers is a fragmented one with many players in the fray and majority of players enjoying a small pie of the entire market. None of the player enjoys absolute competitive advantage over others as the market is highly disorganized and technically incompetent players outnumber the technically sound players.

Currently MSEDCL is putting lots of efforts to improve upon the Distribution Losses. As a result of these efforts of MSEDCL, the process of repairing of transformers is getting more and more technical with MSEDCL demanding that the transformers should be repaired according to the standards prescribed by BIS2026 which are applicable to the manufacturing of transformers. This will weed out the technically incompetent players from the industry. This also provides a chance to get organized and guarantees growth for the technically and financially competent players.

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There are a few players in this industry who are exception to the characteristic fragmentation because these players enjoy a large chunk of business but do not exist outside a one or two Zones of MSEDCL. The sole reason of their survival is strong political nexus and not a strong business Model. The other exception to this fragmentation is us as we are the leaders in quality, we possess a strong business model and are spread over many Zones of MSEDCL; and hence our market share is good as compared to others i.e., around 10%.

OUR PRODUCTS & SERVICES

As mentioned earlier, we are in the business of “Maintenance of Distribution Transformers, Electrical Contracts and Construction”. Here, the standards applicable to repairing and manufacturing of the transformers are as per BIS2026.

ELECTRICAL CONSTRUCTION & CONTRACTINGAll through the years, we were undertaking the electrical consultation work and

from this year M/s Rambhad Electro-Magnetic Products Pvt. Ltd. has ventured in business of Electrical Construction and contracts by using the marketing network of M/s Power Controls in addition to our own network. Our biggest customer is Maharashtra State Electricity Distribution Company Limited.

We are specialise in setting up Distribution Transformers Centres, and Erection and Commissioning of HT / LT Lines up to 33,000 Volts capacity.

REFURBISHING OF DISTRIBUTION TRANSFORMERS We are the only company in state of Maharashtra to have successfully executed the

job of “Refurbishing of Distribution Transformers”. In Refurbishing of Distribution Transformers, we repair the transformers giving the special attention to controls the Load and No-Load Losses. This includes overhauling of transformer, cleaning of each Core Strip, reassembling the core, and changing the Design of the Windings so that the Losses are controlled. Special attention is also given to controlling No-Load Current, Reactance and Percentage Impedance.

In this process only the External Parts, MS Hardware, and Tank of the transformer is retained. Sometimes to controls the losses, we are required to change a portion of core which may be rusted, buckled or damaged. This changing of core is very time consuming job as each Core Strip is checked and if found buckled is replaced by another Core Strip of same dimensions.

Thus the Green Type and Gray Type distribution transformers, the performance of which is rarely as per BIS2026, after undergoing the process of Refurbishing as designed by us, works as per BIS2026. The energy efficiency of these transformers increases as the Load and No Load Losses are controlled to the level of BIS2026 specification resulting in huge profits for the Electricity Distribution Companies.

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We have implemented this Refurbishing of Distribution Transformers as a part of our duties towards the society.

REPAIRING OF DISTRIBUTION TRANSFORMERS Though all kinds of transformers are there for the repairs, we specialize ourselves in

servicing of Distribution transformers and Current and Potential transformers and in the essence works in the sector of distribution of electricity. Also, we manufacture the transformers on piece basis and are sold strictly to the private parties. At this point of time the manufacturing activity contributes very less to our turnover though the profit margin are good.

MSEDCL has around 235,000 transformers in the service and failure rate is approximately 13%. Out of the 22,000 distribution transformers which fail each year, our share is at nearly 3,000 transformers. This makes us the largest repairers in Maharashtra.

MANUFACTURING OF DISTRIBUTION TRANSFORMERSAmongst different types and capacities of transformers, we have specialised

ourselves with 11000/433 Volts Step-Down Distribution Transformers with ONAN cooling. We have registered ourselves with Maharashtra State Electricity Distribution Company Limited as Manufacturer-Vendor for aforementioned transformers of 63KVA, 100KVA and 200KVA capacities.

The process of the manufacturing of the transformer is nearly the same as the repairing of the transformer and as per BIS2026 with general exception that all the material to be used in manufacturing is new.

To sum up we most humbly bring your attention to the fact that we are the largest Repairers of Transformers in state of Maharashtra having maximum geographical spread and penetration. Also we are the only company which has the manpower and the technological prowess to not only repair the transformer but to convert the transformer from

least efficient to most efficient electrical equipment and further bring the transformers in service by erecting the HT/LT Line. All these activities are in addition to our facilities for manufacturing of the

energy efficient distribution transformers.

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