Developing Thermal Power Oplant Businessplan
Developing Thermal Power Plants Service
Business Plan
Haluk Direskeneli Haluk Direskeneli printable version
5 June 2007
This commentary is from USAK’s Energy Review Newsletter http://www.turkishweekly.net/energy To subscribe email to energyreview@turkishweekly.net
This paper is prepared in order to explain how best to get prepared, what actions to be taken for “Developing Thermal Power Plants Service Business Plan" in Turkey and adjacent Countries. The plan could be implemented in 3Q07, however implementation of the specified measures is suggested for any time period.
Market Status
Although our local companies generally receive some percent of service business as part of their major boiler sales, percent of Service Orders is approximately 10% out of their total bookings. This figure is approximately more than 20% in USA since USA Company bookings also include major share in Utility Plant Service. In the world markets, Service Business or Field Engineering Services normally work in the captive market, therefore the profit margin is relatively high since one works with own existing clients plus competitors’ unsatisfied clients.
Currently industrial boiler market is shrinking in Turkey due to low industrial activity for upcoming general elections and service market could be a good alternative for fast cash earnings with relatively high gross margin.
However in the local market, Company has serious concerns for promotion of service business. Servicing the existing EUAS Utility plants is not feasible in the short run, since EUAS traditionally prefers to use their own resources and/or alternatively they work together with original boiler supplier(s). After “Privatizations” are implemented, the new owners may ask companies with experience to make the necessary upgrading of existing utility units.
On the other hand, the former managers, engineers, technicians of competitor boiler companies, formed new service companies to serve existing steam boilers in the local
Business Plan
Haluk Direskeneli Haluk Direskeneli printable version
5 June 2007
This commentary is from USAK’s Energy Review Newsletter http://www.turkishweekly.net/energy To subscribe email to energyreview@turkishweekly.net
This paper is prepared in order to explain how best to get prepared, what actions to be taken for “Developing Thermal Power Plants Service Business Plan" in Turkey and adjacent Countries. The plan could be implemented in 3Q07, however implementation of the specified measures is suggested for any time period.
Market Status
Although our local companies generally receive some percent of service business as part of their major boiler sales, percent of Service Orders is approximately 10% out of their total bookings. This figure is approximately more than 20% in USA since USA Company bookings also include major share in Utility Plant Service. In the world markets, Service Business or Field Engineering Services normally work in the captive market, therefore the profit margin is relatively high since one works with own existing clients plus competitors’ unsatisfied clients.
Currently industrial boiler market is shrinking in Turkey due to low industrial activity for upcoming general elections and service market could be a good alternative for fast cash earnings with relatively high gross margin.
However in the local market, Company has serious concerns for promotion of service business. Servicing the existing EUAS Utility plants is not feasible in the short run, since EUAS traditionally prefers to use their own resources and/or alternatively they work together with original boiler supplier(s). After “Privatizations” are implemented, the new owners may ask companies with experience to make the necessary upgrading of existing utility units.
On the other hand, the former managers, engineers, technicians of competitor boiler companies, formed new service companies to serve existing steam boilers in the local