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 1847.Since 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 : Wikipedia.org article

Companys Revenue Data : moneycontrol.com
Companys Competitors : Wikipedia.org
Images : google.com