Green Dot Electric: Redefining The Power Business

Mr. R K Dhawan - Managing Director, Mr. Nitin Dhawan- Executive Director
GREEN DOT ELECTRIC LIMITED

Q. Green Dot is being one of the leading name in power electronic sector & has a significant market share for power conditioning products, how did Green Dot managed this bounteous growth ?
SIMPLY HARDWORK & DEVOTION to the TASK –with Committed TEAM has been secret of our growth.  We applied Value Engineering  to every product  & its constituent & with BEST QUALITY – FIRST TIME  for  our Customers – we earned THEIR CONFIDENCE  & established a niche to our Brand that what so ever Green Dot will produce – will be the BEST Product – superlative over all Existing ones available. 
       The unit was promoted under Entrepreneur Scheme of State Bank of India in 1979 after the Promoter had 15 Years of Experience – 10 Years in Govt, of India  - Indian Inspection Services & Central Engineering Services  &  5 Years in Industry.  While in Industry, the Entrepreneur had unsatisfied desire while in Job to do R & D in the field he was working on. It was in perusal of the R & D Craving & to produce BEST in the line – that it was ventured to develop the unique & relatively new field at that time of Toroidal Transformers & Variable Transformers While Toroidals introduced Energy & Material Conservation ideologies, the Variable Transformers – a bit advanced variation of the same GENE,  were the HEART & LIFE LINE – a Sort of ENGINE – to any Power & Voltage Control equipment.   Started on 100 Sq. Ft Site – today the Unit spans more than 50000 Sq. Ft of Works facilities. Initially – our innovation was in LOW OVER HEAD START with manufacturing processes, assembled machinery  at one tenth the cost – by  removing the superfluous elements , and did not treat any work as `
       It was R & D that always steered us ahead of others. We in fact started  at a time when India’s engineering were dreaming a new reality and many were bitten by the entrepreneurship bug.    With very low resources high quality engineering - products were created . The approach was that the unit must always operate above the BREAK EVEN POINT & as production & demand went up – sophisticated & automated Machinery was introduced.  The  dream was that of hope and growth. So we called it - Green Dot , a humble endeavor that would motivate others to take the industry in an unprecedented direction.
       We decided to focus in the power conditioning industry and started with variable voltage transformers, which was the heart of the voltage stabilizers and had scope of application in many other industries.
       We always recognized that the strength of an NEW engineering product  develops after the weakest link of the existing running field product  is recognized & rectified & Improved.  So we began working on solutions for the weak links with out of the box ideas. We also identified critical success factors a began strengthening them. What worked in our favour was that the industry gave us a chance with all the innovations. They believed us. And in some time our products proved themselves as they turned out to be resilient with low failure rates. The industry grew at a steady pace. This gave us the confidence to increase our product range. We were amongst the market leader within the first 4 years of our inception. We were always - ably supported by our Bank - State Bank of India who  had quite liberal policies for Entrepreneurs . By late 80s we had expanded our product range, vertically integrated and introduced voltage stabilisers upto 500 KVA.
       Our markets in south India were expanding at  rapid pace. So we decided to expand our sales office in Bangalore to a manufacturing setup.
       We were already exporting to neighboring countries by early 90s.  By this time our products had created were being exported to many other countries by local agents.  Now we were directly approached by manufacturing companies in Australia and Malaysia.  This gave the whole organization a big morale boost, a pat on the back. Our quality philosophy was paying off. Within a few years we were export more than 45% of our production to these countries. 
       The Team was strengthened with entry of  Nitin Dhawan, joined  the team in 1996. He had specialized in Electronics and our R&D base & philosophy gave us the confidence introduce power electronics products – Home Inverters and UPSs. Within a year  we piloted Inverters . These inverters created a revolution in the industry & were envied for advanced Technology not hitherto used by any . People also begun to recognize the importance of quality in these products.  We were very well received by the consumers. But we recognized that focusing on consumer marketing and industrial marketing together were dividing our resources and would not help us in the long run. So we decided to withdraw. At the same time, our products have proven to be most resilient and battery friendly.  The Battery Maintenance circuitory was so much advanced  that people got Battery Life upto 9 Years out of these units & though now out of line- our old customers revert to us & insist us to start that field again. Our focus on voltage stabilisers helped us make strong inroads in high growth markets.  We became the preferred suppliers to the telecom infrastructure companies.  Our focus on manufacturing and process quality has also earned us ISO 9001, ISO 14000 as well as the CE mark.

Q.What is the overall outlook for Green Dot & brief us about Green Dot’s  global & domestic presence ?
Green Dot does not believe in boundaries. We believe that customer’s needs are what drive and that we should always strive to create the best value.  We are exploring some global alliances to bring in technology as well as to export the products. We are also exploring China to setup a manufacturing base.         Green Dots products have been trusted for power conditioning for CNC machines, Engineering Plastics Moulding Machines , shoe manufacturing, textile machines, air compressors, medical equipments  and Lightings units. With continual product innovations, Green Dot is also substituting many expensive alternatives in multiple domains.  Green Dot’s innovation in power factor correction is going to address many a gaps not resolved by world class expensive thyristor controlled stabilizer.  We are stepping into STEP LESS Power Factor correction device . The present Power Factor Correction devices have CAPACITOR SWITCHINGS on the MAIN LINE that are hidden generators of surges – most damaging for CNC Controls. New Technology is free from these surges.
       Our further TAGET is LARGE CAPACITY Air Cooled Stabilisers. Hither too – after just 30 KVA or so – the other mfrs. Shift to OIL Cooled.
       After UPHAR CINEMA FIRE in DELHI where lives were lost because of Transformer oil Fire in Basement, it has been imperative to avoid use of oil in units s[pecially in Commercial Establishments. But Technologically some limitation was there in getting to AIR COOLED UNITS in Large sizes. We have made a break through in bringing AIR COOLED UNITS upto 500 KVA & further work is going on for higher Capacity Units.  We are working for a big break through in this field with different technology.
       Our strength is also our channel partner network  that believes in our value and has helped us build a strong brand recall. Today we have  about 20 such main parners & above 100 SUB Partners & associates. all over the country. We also work closely with atleat 50 OEMs …  who have helped us identify areas to improve and innovate over the years.  Some of the customers who have a long term contracts with us for last 20 Years.
We have repeat buyers in SAARC, Australia , Malaysia , Middle East , Germany , US  for over a decade.  Today we have representatives in 15 countries over 4 continents who are also helping us build a strong international brand.

Q How about Green Dot’s initiatives in power electronic space? Which are your focus areas ?
We were amongst the first in India to create pure sine wave online UPSs and CVTs way back in early 90s. We were also amongst the first to use microprocessors in UPS and inverter technologies. We are eating, drinking & sleeping with DSPs these days & see REAL TIME correction & rectification technologies.
       The integration of Modems for Remote Signalling the faults, operation & maintenance has been done in Power, Telecom, Battery Management, Generator Contriols with Static stabilizers has been done to meet any Customers POWER Management Systems in MOST RELIABLE & RIGID WAYS at remote working points.

Q.What are the market opportunities for Green Dot products in India? How do you plan to position these products ? Market opportunities
The power conditioning industry is directly linked to industrial growth. India’s industrial output grew at its fastest year-on-year pace in almost two decades at 16.8% in December. Coupled with the 8% + GDP growth rate, opportunities for Green Dot will continue to expand.
       Green Dot plans to stay focused in the industrial conditioning domain.  We see huge potential in application of electronics and leverage on global developments in this field towards power electronics.
       Our strength has been sticking to our philosophy of continual innovation, pushing the wall and creating value for our customers. This has differentiated us over the years and has helped us keep our head up in an industry that keeps getting competitive and commoditized.

Q. What is your marketing strategy for Indian market?
We believe in product innovation to create higher value for our customers. Like many other manufacturing domains, this is also a field which is getting commoditized.
       Our strength is our experience and a deeper understanding of our customers environment. This gives us multiple opportunities to innovate and create value.  This has been our positioning as well – better value, reliability , value for money (not cheap).
       Our strategy has been to build a strong brand and deliver higher value. This creates the pull. We are also selective about our channel and build long lasting relationship with them. This coupled with international expansion covers our marketing strategy.

Q. Can you please elucidate the contribution of R&D in the success of Green Dot products?
Innovation is a key value in Green Dots culture. We believe in product innovation directly related to higher customer value. Green Dot is known to have shaped the variable transformer industry by leading the R&D initiatives. For years Green Dot’s initiatives are keenly followed by its competitors and blindly followed.  Unfortunately, the design principles are not always understood, and they turn out to be imitations that do not perform the same function.
       The R&D over the years has given rise to a unique and valuable design. Many tests have proven that a lower rated product of Green Dot performs better than those of many of its competitors because of its superior design. This gives better value for money and has been the underpinning success.

Q. Brief us about the quality policy for the business?
For Green Dot , quality is customer value. It starts from the designs –that give customers better value for money, build in reliability and convenience. Any of Green Dot’s customer, who has experienced a competitor’s product will vouch for its longevity, resilience and relative ease of use and maintenance. Our quality philosophy is also about better supply chain management and the best person for the best job.   Our consultants like to call this TQM. We – the way ,it is our way of life.

Q.Can you brief us more about Green Dot system’s top line product range?
Voltage Stabilisers

• AIR COOLED  Servo Type  upto 1000 KVA
  
• STATIC  with Thrister Switching upto 500 KVA
  
• Variable Transformers 
  
• 3000 Amps  OIL COOLED
  
• Upto 500 Amps   Air Cooled
  
• Power Management system upto 50 KVA for telecom sector
  
• REAL TIME Voltage stabilizers DSP Based upto 100 KVA
  
• Ultra Isolation Transformers
  
• Energy Saving Transformers
  
• Electrical Safety Cut off Systems for Main Power Lines

Q. What do you think are the strengths of Indian power conditioning equipment industry & How it is positioning itself against the global market?
The power conditioning market is becoming more sensitive and mature to the evolving needs of businesses. With increased awareness for quality of power,  companies find it imperative to opt for protection against voltage fluctuations and low voltage. Increased penetration in B, C & D class cities has been another reason for this category’s growth. These findings reiterate the fact that tier II markets are a great opportunity.
       The strength of Indian power conditioning equipment is  that they are more robust & practically able to correct a much broader range of variations & and are designed to work at  higher ambient temperatures  - like those in African Countries,  Latin American Countries , Middle East , Cylon etc. and largely these markets are untapped by Indian Industry in Power Conditioning Field.  Last , but not the least is the pricing. The pricing of Indian products are also lower specially for Customer Designed products.

Q. Please highlight Global perspective of power electronic industry and what is the differentiating factor?
In Indian, there is not even a single company who is manufacturing the semi conductors, IGBT, etc.  We have to depend on imported raw material starting from CRGO SILICON Steel, IGBTs, Semi conductors, SMT components, etc.

Q. What are the key technological trends that are driving power electronic industry?
I would say that the drivers are market driven  than technology driven. It’s the market that drives the technology as well. The nature of power electronics requirement in every country is different. So is the nature of R&D.
       At the same time there are organizations that are exporting their solutions to third world economies while catering to the modern ones.  Such organisations are far ahead of any Indian organisation.
       They are supported by technological investments that they have made in R&D in many years . Besides being far ahead in manufacturing technology, the level of industry- institute collaboration supports their advancement greatly.

Q. According to you what is the forecast for the Indian power industry?
The Indian power industry is in the midst of a fundamental shift. Transformation is underway because of several large public and private investments. For the Indian power industry - Future power markets will present new set of opportunities and challenges One should expect more clean source of energy. Downstream efficiencies will be enhanced. There will be more harnessing of Solar Power.

Q. According you what are the factors affecting to your business?

• Non Uniform State Tax & Border Laws
  
• Large Labour Costs
  
• Power Shut Downs
  
• Higher Raw Material Prices
  
• Labour Laws
  
• Too many Enforcement agencies bothering with periodical inspec tions

Q. What are the issues you need to address that are related to power conditioning industry ?
Improve Power availability

• Ease norms for direct import of raw material
  
• Cut Down Import Duties on Basic Raw Materials to Transformer Indus tries to provide Cheaper Input of Silicon steel & Copper 
  
• Improve upon Export Incentives
  
• Better support for R&D, giving grants, loans etc.
  
• Better dissemination of knowledge between different stakeholders
  
• Infrastructural improvements and
  
• Indigenous manufacturing of more electronic components.