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PROJECT REPORT

ON

ORGANIZATION STUDY

SUBMITTED TO: SUBMITTED BY:


ACKNOWLEDGEMENT

First and foremost, I thank the Lord Almighty for his perpetual showers of blessings,
which led to the successful completion of my project.

I take this opportunity to express my deep sense of gratitude to all those who have helped
me throughout this organizational study. It gives me immense pleasure to acknowledge all those
who have rendered encouragement and support for the successful completion of this work.

I would like to convey my sincere thanks for giving me proper directions and suggestions
and make use of this opportunity to express my heartfelt gratitude to
Mr Subhas Tiwari, (HR manager, ESCORT) for providing me all the faculties for making my
project a successful one.

I express my deep sense of gratitude to Dr. Sudharshan the faculty member of MATS for
encouraging and inspiring me for developing the project.

Our project work involved many people at different stages. We would like to thank all those who
have directly or indirectly contributed to the success of our project.

We also take this opportunity to express profound gratitude to our parents, family members and
several people who have contributed for the successful completion of the project. It is our duty
and pleasure to acknowledge them.
DECLARATION

I hereby declare that the project report entitled “Organizational Study of ESCORT
Railway Division”. Submitted in partial fulfilment of the requirements for the award of the
degree of PGDM is a record of bonafide research carried out by me under the guidance of Dr
Sudharshan, MATS- Bangalore and no part of it has been submitted for any other degree or
diploma.

Place: Bangalore Ankit Bisht


Date:

CONTENT
1. INTRODUCTION TO THE STUDY AND INDUSTRY
PROFILE
• Global scenario
• Indian scenario
• Key players in the industry
• PEST analysis
• Porter 5 force analysis

1. COMPANY PROFILE
• Background and history
• The vision, mission, objectives, goals, SWOT analysis
• Products and markets

1. ORGANISATIONAL DESIGN

2. BUSINESS LEVEL FUNCTIONS


• Operation Department
• Human resource department
• Marketing department
• Personnel Department
• Finance department
• Technical and service department
• Materials department
• Engineering department

1. FINDINGS, SUGGESTION AND CONCLUSION

Chapter 1
Introduction

1.1 INTRODUCTION OF THE STUDY:

Organizational Functioning is an important factor for any Organization to achieve


the desired goals and Objectives. This requires Co-ordination at all levels to
smooth functioning. This report aims to understand the Function of ESCORT
relation to different departments.
As a part of two year MBA program at the end of 1 s t semester, we had to carry on
a project in an organization in order to understand the organization structure and
their functions. This was a great opportunity to get the first hand information and
understand the functioning of the various departments.
I did my Organization Study at ESCORT LTD,. It was a great learning experience
as it is quite necessary for all the management students. The main purpose of
doing the organization study was to study the various departments of the
organization and understand their basic functions, their purpose, achievements,
competitors and the mission and vision of the company and their progress towards
that.

All general information we get in course is all book knowledge, on which we


entirely cannot depend. It is very important to observe the actual working of an
organization and the overall structure of an organization. The actual
professionalism can be studied only through experience.

CONCEPT OF ORGANIZATION

Organization is the process of;


1. Identifying and grouping the work to be performed
2. Defining and delegating responsibility and authority
3. Establishing the relationship for the purpose of enabling people to work efficiency together in
accomplishing objectives.
PRINCIPLES OF ORGANIZATION
Principle means the theoretical basis on which something is built up. The theoretical
basis is formulated from fundamental truth. Some of the important principles to be followed for
developing round and efficient organizations are:
• Principle of unity of objective.
• Principle of specification.
• Principle of co-ordination.
• Principle of unity of command.
• Principle of span of control.
• Principle of exception.
• Principle of flexibility.
• Principle of simplicity.
• Principle of communication.
• Principle of efficiency.

REQUSITIES OF A GOOD ORGANISATION

• The objective are to be clear, candid and well defined and the organization must have
a capacity to achieve it.
• All activities therein must be implemented easily and effectively.
• All activities therein must be properly coordinated.
• Organization must be complete; it should include all essential activities.
• The communication system within the organization must be effective.
• The span of control at all level must be reasonable.
• There should be provisions for future expansion, whenever needed.
• All activities and functions should follow defined procedures.
• The organization must be such that it promotes the morality of employees.
• There should be a proper diversion of authority and responsibility.

Importance of an organization
Significance of the organization in any institution may be discussed as below:

(i) It ensures optimum use of human resources: It establishes persons with different
interest’s skills, knowledge and viewpoints.
(ii) It stimulates creativity: A sound and well conceived organization structure is the
source of creative thinking and initiation of new ideas.
(iii)Use of improved technology: A good organization provides for optimum use of
technological improvements.
(iv)Co-ordination in the enterprise: In a good organization, the different
departments perform their functions in a closely related manner.
(V)Executive development: The pattern of an organization structure has strong
influence on the development of executives.
(v) It ensures cooperation among workers: A good organization promotes mutual
goodwill and cooperation among workers also.

SCOPE OF ORGANISATIONAL STUDY

The study focus on the overall structure of the organization. In this study, the researcher
analyzed the overall functioning of the firm and also the financial performance of the enterprise.
The researcher made a moderate attempt to have the SWOT analysis of the study.
METHODOLOGY OF ORGANISATIONAL STUDY

1. PRIMARY DATA- Primary data were collected from discussions with the
Managerial head of the various departments.
2. SECONDARY DATA- Secondary data were obtained from the annual report, from
the website and other concerned books.

LIMITATIONS OF ORGANISATIONAL STUDY

➢ Difficulty in meeting with all the Top level Officials.


➢ Certain areas are restricted, so a detailed study is not possible.
➢ Time allotted for the study is insufficient.

INDUSTRY PROFILE:

GLOBAL SCENARIO

In the Global Market Place of today, Escorts is fast on the path of an internal transformation,
which will help it to be a key driver of excellence in manufacturing, globally. For this, it is going
beyond just adhering to the prevailing norms of today, but is instead setting its own standards
and is relentlessly pursuing them to achieve their desired benchmarks of excellence.

To consolidate their presence in the overseas markets, the company has acquired Long
Agribusiness LLC, a tractor distributing company in the USA, recently christened as Farmtrac
North America LLC. Over 5000 tractors have been exported to the USA in the last three years.

Another overseas joint venture Pol-Mot Escorts Spolka Z.O.O., Poland, (between Escorts and
Pol-Mot Holding S.A., Poland), recently christened as Farmtrac Tractors Europe Sp. Z.o.o., takes
care of the assembly and marketing of tractors in Poland and other East European countries. Our
tractors in Europe have been homologated for marketing them in all EU nations besides others.

Besides USA and Poland, Escorts is firmly based in Turkey, Australia, Bangladesh, Sri Lanka,
Nepal, Tanzania, Chile, Ghana, Zambia, and Zimbabwe. Recently we have received a 3rd Time
Repeat Order for 400 tractors from Ghana, which would take the Farmtrac population to 1,000
nos. Similarly in Senegal, we have successfully executed an order of 410 Farmtrac tractors.

Escorts have very ambitious plans to expand the dealers network in other potential countries in
the current year. In this context, we seek to join hands with leading Agricultural Machinery /
Automotive Dealers to market our tractors in their respective countries.

Indigenously developed cost effective 65 HP & 75 HP engines meeting Tier-4 interim/Euro stage
3A emission norms applicable in USA/Europe and certifi ed by EPA/ VCA. Productionised
engine & parts sent to FTES, Poland for tractor Homologation for Europe. Opportunity for
export models manufactured at FTES Poland to be very competitive in the global market.
INDIAN SCENARIO:

The Escorts Group, is among India's leading engineering conglomerates operating in the
high growth sectors of agri-machinery, construction & material handling equipment,
railway equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the
agricultural growth of India for over five decades. One of the leading tractor manufacturers of
the country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from
25 to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands of
tractors from the house of Escorts.

A leading material handling and construction equipment manufacturer, we manufacture and


market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts
today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for nearly five
decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening systems,
composite brake blocks and vulcanized rubber parts.

In the auto components segment, Escorts is a leading manufacturer of auto suspension products
including shock absorbers and telescopic front forks. Over the years, with continuous
development and improvement in manufacturing technology and design, new reliable products
have been introduced.

Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In
the over six decades of our inception, Escorts has been much more than just being one of India's
largest engineering companies. It has been a harbinger of new technology, a prime mover on the
industrial front, at every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000 construction and material
handling equipment that have rolled out from the facilities of Escorts, complemented by a highly
satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the
globally accepted best manufacturing practices with relentless focus on research and
development, Escorts is today in the league of premier corporate entities in India.

Technological and business collaboration with world leaders over the years, Globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets and
footprints in over 40 countries have been instrumental in making Escorts the Indian
multinational. At a time when the world is looking at India as an outsourcing destination, Escorts
is rightly placed to be the dependable outsourcing partner of world's leading engineering
corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics,
implements and attachments to tractors, and shock absorbers for heavy trailers and armored
tanks.

In today's Global Market Place, Escorts is fast on the path of an internal transformation, which
will help it to be a key driver of manufacturing excellence in the global arena. For this we are
going beyond just adhering to prevailing norms, we are setting our own standards and
relentlessly pursuing them to achieve our desired benchmarks of excellence.

KEY PLAYERS IN THE INDUSTRY:


Building on the success that it reaped in the light-truck segment, TATA Motors introduced a
passenger vehicle version of its one-toner - “Ace”. The new Multi Purpose Vehicle (MPV) is
positioned against Maruti’s “Omni” and has been aggressively priced so as to open up the
competition in that domain. The Omni is priced between Rs. 2.3 lakh and Rs. 2.5 lakh (ex-
showroom Mumbai).

“TATA Motors is following almost the same strategy that it used with Indica - launching
multiple variants built-up on the same platform. The platform being used for “Ace” is versatile
and it is exploring innovations on that platform”, confirmed a source close to TATA Motors.

The source also indicated that the launch, of the same, was strategically slated for a year before
TATA Motors’ much-hyped people’s car gets on to the roads. The new MPV will target the
same market segments, semi-urban and rural, where the Rs. 1 lakh car is expected to make a big
uproar. The Ace will be used to test the potential of the market and the distribution network of
TATA Motors’ in these specific regions. A spokesperson was also found to say: “At any given
point in time TATA Motors is working on various innovations. We cannot comment any
further.”

Also spotting the potential in the MPV segment is - Bajaj Auto, which is also working on similar
lines, to attain faster-than-industry-average growth, BAL has identified MPVs as a potential
growth segment. Bajaj Auto’s managing director Rajiv Bajaj had said, “The middle ground
(between two and four-wheelers) can spawn a range of ‘lite’ vehicles — a diet version if you will
— and that’s something we will look at. We are intending to get into a family of ‘lite’ four
wheelers, both for people and goods. We will get into that business first with a goods carrier.”

Another possible player in the same segment could be “Hero”, which also plans to foray into the
four-wheeler segment. Hero Honda MD Pawan Kant Munjal said that – “The group would get
into four-wheelers as a natural extension of its bike business”, but he declined to specify whether
it would be passenger cars, light commercial vehicles or other passenger vehicles.

Maruti’s Omni, presently, the only player in the MPV segment, has sold around 65,350 units in
the April-January period, depicting an astounding growth of 27 percent. This pips the 21 to 22
percent growth in the overall passenger car segment. The Omni is popularly viewed as a people
mover in small towns and as a freight vehicle in cities. Maruti has also introduced some cheaper,
fuel-efficient versions of Omni that run on “Environment-friendly” gases - LPG and CNG,
considerably reducing the operational and maintenance costs to the consumer.

The success of “Ace” opened up a whole new segment in the market of commercial vehicles and
has led to other players like Bajaj Auto, Ashok Leyland and M&M queuing up to acquire a
chunk of the ultra-light truck market.

PEST ANALYSIS:
A PEST analysis is concerned with the environmental influences on a business. The acronym
stands for the
Political
Economic
Social
Technological
issues that could affect the strategic development of a business. Identifying PEST influences is a
useful way of summarizing the external environment in which a business operates.
Political Factors:
The major risk associated with the Tractor Industry continues to be dependence on monsoon and
availability of finance from the Banks. The second monsoon was lower than the normal in more
than half of the areas across India leading to reduced Rabi sowing by 3% in comparison to last
year. However, this is likely to be compensated by more productivity and better realization of the
produce in the coming months. Credit flow to the agricultural sector has been slow than
anticipated because of the settlement of the debt waiver cases by the Banks and the release of
fresh loans to the farmers. Govt. has directed the PSU Banks to increase their lending to achieve
the enhanced target of financing fixed for the agricultural sector. The continued slow down of
demand in the American and European countries may have ripple effect on export of tractors and
realisation of proceeds from these countries

Economic Factors:

The Company continues to focus on its Agri Business. However, it has changed its focus from
the high volume, low profit products to high margin products to create a niche in the higher HP
Models. At the same time, the Company is pursuing Value Engineering in the low margin
tractors to improve its margin and re-launch the same. AMG has constituted a Forward Planning
Group within the Company to envisage its strategy and vision for the next 5 years. Your
Company has an appropriate internal control system for business processes with regard to effi
ciencies of operations, financial reporting and compliance with applicable laws and regulations
etc. Your Company has appointed Grant Thornton International as our Internal Auditors which
works under the directions of an Audit Committee constituted as per the guidelines. The Internal
Audit Reports are reviewed by the senior management and placed before the Audit Committee of
the Board of Directors.

Socio-Cultural Factors:

The Company, in its endeavor, to serve community continued to contribute in the various
activities around the Units. The Company, during the year, organized Eyes/Health Check up
Camps, Blood Donation Camps, sponsored Sports activities at the District and State level in the
State of Haryana. It carried out the Career Counseling Session for the children of the employees
of Escorts. The Company has a Scholarship Scheme for the deserving children of the Employees
of Escorts and gives scholarships. The Company has spent Rs. 68 lakhs on the same during the
year.
TECHNOLOGICAL FACTORS
To keep pace with competition and advances in technology, Escorts Knowledge Management
Center (KMC) established in 1976 is a world class R&D with facilities for design and product
evaluation to deliver quality and trouble-free products. The entire tractor system, from the engine
to transmission and hydraulic systems as also vehicle design from body work to controls and
accessories is developed at the KMC. We are the fi rst Indian company with in-house R&D
capabilities to certify engines for US EPA and EURO-VCA.
The quest for technological excellence is further proven through the modern R&D centre and
Quality and Testing laboratories set up at various plants of our Engineering Division deploying
latest servo-hydraulic testing systems (MTS) and cam drum rigs for durability and life tests

PORTER’S 5 FORCES ANALYSIS:


Five Forces Analysis helps the marketer to contrast a competitive environment. It tends to focus
on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product
or range of products. Five forces analysis looks at five key areas namely:

• THE THREAT OF ENTRY

• THE POWER OF BUYERS

• THE POWER OF SUPPLIERS

• THE THREAT OF SUBSTITUTES

• THE COMPETITIVE RIVALRY.


Rivalry among the Existing Firms:
THE POWER OF BUYERS
Chapter 2
Company
Profile
COMPANY PROFILE:

BACKGOUND AND HISTORY:

The founding Philosophy


Over 60 years ago, two young men set out on a journey together armed with little beyond
intelligence, business acumen and determination and dreams aplenty. They believed that India
could only achieve total freedom with a breakthrough in the field of agriculture and
mechanization would have to rule the fields. They wanted to establish a mark of their own and
leave behind their footprints in the dunes of history. They were in fact writing the first chapter of
what has come to be widely recognized as one of the greatest success stories in the Indian
industry.

Escorts came into being with a vision, one that avoided the easy paths to profitability, and sought
instead for ways to make a contribution. A vision that led two young brothers, Yudi and Hari
Nanda, to branch out of their family's prospering transport business and institute ventures that
were to become the foundations of Escorts Limited. On 17th of October 1944, Escorts Agents
Limited was born at Lahore (now in Pakistan) with Mr. Yudi Nanda as Managing Director and
Mr. Hari Nanda as Chairman. It was a trendsetting marketing house driven by the same business
philosophy, which had given their family enterprise an unparalleled reputation: Customer
Concern.
Not long after, this ambition to surpass the expected led the brothers to discover the great
business potential that lay in the rural parts of the country. This led to the establishment of
Escorts (Agriculture and Machines) Limited, in 1948, with Mr. Y. Nanda as the Director.
Even after the tragic demise of Mr. Y. Nanda, in an accident in 1952, the foundations of the
company remained embedded with his undying spirit. Mr. H P Nanda then took on the mantle to
realize the dreams which he had seen with his brother.
Escorts (Agents) Ltd. and Escorts (Agriculture and Machines) Ltd. merged in 1953 to create one
single entity - Escorts Agents Private Limited. Having initially started with a franchise for
Westinghouse domestic appliances, by this time the Company had already expanded its
marketing and service operations, representing internationally known German and American
organizations such as MAN, AEG, Haniel & Leug, Knorr Bremse, MIAG and BMA for
sophisticated electrical and mechanical engineering equipment and Minneapolis Moline and
Wisconsin for agricultural tractors, implements and engines.
Escorts made a major push into the agricultural arena by taking up the marketing and service
franchise for Massey Ferguson tractors in Northern India, which soon ended up comprising 75%
of Massey Ferguson's All-India Sales.
Its first industrial venture came in 1954, in the form of a partnership with Goetzewerke of
Germany for the manufacture of piston rings and cylinder liners. This partnership was followed
by the production of pistons in collaboration with MAHLE, also of Germany, in 1960. The
company's incorporation in its present name, Escorts Limited, came under effect from the 18th of
January, 1960.
Escorts' next major industrial activity was the assembly of tractors, in 1961, in technical
cooperation with URSUS of Poland. Subsequently this led to the manufacture of the country's
first set of indigenous tractors under Escorts' own brand name, which were to play a pivotal role
in the Indian Green Revolution. This went on to lay the foundation, which even today are the
Company's core strengths - relevant, world-standard technology through strategic international
alliances.
Mr. H. Nanda pioneered the revolutionary concept of 'interdependence' between the ancillary and
large industries, institutionalizing vendor development and, thereby, in the process building
Faridabad and the entire belt of townships in the same region. He also introduced the discipline
of service going before marketing, reassuring the customer that Escorts would stay with them
and that they were here, in the industry, for the long run. He built long lasting alliances with a
wide variety of the world's most respected names in tractors, industrial equipment, two-wheelers,
construction equipment and telecommunications. He also created institutions that were
specifically devoted to value engineering and training.
His concern extended to the society, as well, in which he worked, and he manifested it by
establishing the Escorts Medical Centre at Faridabad, Escorts Heart Institute and the Research
Centre at New Delhi. He also conducted numerous village development programs.
The present state of Escorts is testimony to the vision and leadership of the Nanda’s.

History of Escorts:
The genesis of Escorts dates back to the 1940’s when two brothers, Mr. H. P. Nanda and Mr. Y.
Nanda launched a small agency house, Escorts Agents Ltd. in Lahore. Over the years, Escorts
has moved ahead of those times and has evolved into one of India’s largest conglomerates. In
this journey of over six decades, Escorts has had the privilege of being associated with some of
the world’s leading engineering and manufacturing spaces like Minneapolis Moline, Massey
Ferguson, Goetze, Mahle, URSUS, CEKOP, Ford Motor Company, J. C. Bamford Excavators,
Yamaha, Claas, Carraro, Lucky Goldstar, First Pacific Company, Hughes Communications,
Jeumont Schneider, Dynapac etc.. These valued relationships, be it technological or marketing,
are one of Escorts’ highly cherished experiences treasures, which have helped it inculcate best in
class manufacturing practices and also enabled it to emerge as a technologically independent
world class engineering organization.

The chronological events that took place over the years are highlighted as follows:

1944 - The launch of Escorts (Agents) Limited.

1948 - Pioneered farm mechanization in the country by launching Escorts Agricultural


Machines Limited, with a franchise from the U.S. based Minneapolis Moline, for
marketing tractors, implements, engines & other farm equipment.
The launch of Escorts (Agriculture and Machines) Limited.

1949 - Franchise of Massey Ferguson tractors for northern India

1951 - Escorts established India’s first private Institute of Farm Mechanization at Delhi.

1953 - Escorts (Agents) Limited and Escorts (Agriculture and Machines) Limited
merged to form Escorts Agents Private Limited.

1954 - First industrial venture of Escorts to manufacture piston rings in collaboration with
Goetze of Germany, in an era when joint ventures of Indian firms with foreign companies were
virtually unheard of.

1958 - Started importing Massey Ferguson tractors from Yugoslavia for marketing them
in India.

1959 - Collaboration with Mahle, of Germany, to manufacture pistons. Soon, Escorts


became the largest producer of piston assemblies in India.

1960 - Set up of Escorts Limited.

1961- Setting up of manufacturing base at Faridabad for manufacture of tractors in


collaboration with URSUS of Poland and 50% indigenous components.

Launch of Escort brand of tractors.

Collaboration with CEKOP, of Poland, for manufacture of motorcycles and scooters.


Escorts moves into high gear by nurturing the two wheeler culture. The first Rajdoot
motorcycle rolls off the assembly line.

1969 - Escorts Tractors Limited was instituted.

A technical and financial joint venture with the global giant Ford Motor Company, USA,
to manufacture Ford tractors in India. The years ahead saw Escorts grow as the largest
tractor manufacturer in India.

Escorts Institute of Farm Mechanization (EIFM) established at Bangalore.

Escorts Employees Ancillaries Ltd. (EEAL), a unique venture in industrial


democracy comes into being.

1971 - 1st February, the first tractor FORD 3000 rolled out of the Escorts factory.

Escorts diversify and start manufacturing construction equipment.

1974 - Crossing national boundaries, Escorts exports for the first time. After winning a
global tender, 400 tractors were exported to Afghanistan, which was perhaps the
worlds largest ever airlift of tractors.

1976 - FORD 3600, advancement in Farm Mechanization launched. Trial production


of in-plant manufacturing of engine parts (Block & Head).

1977 - Escorts enters the domain of self-developed technology by setting up its first
independent R&D Center.

Escorts Scientific Research Centre marked its beginning at Faridabad by developing its
own Engines for E-27 and E-37. Due to constant technology absorption, indigenization level
touched 72% for FORD tractors.

Second plant set up at Bangalore for manufacturing piston assemblies.

1979 - Collaboration with JCB Excavators Ltd., UK, for manufacture of excavators.

1980 - Forays into healthcare, Escorts Hospital and Research Center set up in Faridabad.

1983 - Escorts Tractors Limited (ETL) established a state-of-the-art research and


development centre to spearhead newer breakthroughs in Farm Mechanization.

Line concept introduced for engine block machining.

11,000 ton floating dry-dock Escorts I launched.

1984 - Signing of agreement with the Japanese bike giant Yamaha to manufacture
motorcycles with Yamaha technology.

Collaboration with Jeumont Schneider, France, to manufacture EPABX systems.

Collaboration with Dynapac of Sweden to manufacture vibratory road compactors

1985 - Escorts Tractors Limited (ETL) offered its first Bonus Issue (1:1).

1988 - Escorts Heart Institute and Research Centre (EHIRC), a world class cardiac care
facility launched in New Delhi.

1989 - Joint Venture with Claas of Germany to manufacture harvester combines.

1990-91 - First Public Issue in February 1991, over-subscribed four times. Shares listed
on Delhi and Bombay Stock Exchanges.

1993 - FORD 3620 tractor launched.

1996 - Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.

1997 - Joint Venture with Carraro of Italy for manufacturing and marketing of
transmission and axles.

Joint Venture with First Pacific Company of Hong Kong - Escotel Mobile
Communications.

1998 - POWERTRAC series of tractors launched.

Memorandum of Understanding (MoU) was signed with Long Manufacturing Company,


USA for setting up a Joint Venture in USA.

1999 - MoU for Joint Venture with a Polish Company POL-MOT was signed for
assembly, manufacturing and marketing of Farm Machinery.

2004 - Divested Escotel Mobile Telecommunications to Idea Cellular.

TS16949 certification for the Agri Machinery Group.

2005 - Divested Escorts Heart Institute and Research Centre (EHIRC) to Fortis
Healthcare.

2006 - Divested in Carraro India Limited.

Set up new manufacturing facility in Rudrapur for manufacture of new range of


railway equipment

THE VISION, MISSION, OBJECTIVES AND SWOT ANALYSIS:

VISION:
“GO GLOBAL”

The Escorts Group, is among India's leading engineering conglomerates operating in the
high growth sectors of agri-machinery, construction & material handling
equipment, railway equipment and auto components.

Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the
agricultural growth of India for over five decades. One of the leading tractor manufacturers of
the country, Escorts offers a comprehensive range of tractors, more than 45 variants starting
from 25 to 80 HP. Escort, Farmtrac and Powertrac are the widely accepted and preferred brands
of tractors from the house of Escorts.

A leading material handling and construction equipment manufacturer, we manufacture and


market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts
today is the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.

Escorts has been a major player in the railway equipment business in India for nearly five
decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening systems,
composite brake blocks and vulcanized rubber parts.

In the auto components segment, Escorts is a leading manufacturer of auto suspension products
including shock absorbers and telescopic front forks. Over the years, with continuous
development and improvement in manufacturing technology and design, new reliable products
have been introduced.

Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In
the over six decades of our inception, Escorts has been much more than just being one of India's
largest engineering companies. It has been a harbinger of new technology, a prime mover on the
industrial front, at every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000 construction and material
handling equipment that have rolled out from the facilities of Escorts, complemented by a highly
satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the
globally accepted best manufacturing practices with relentless focus on research and
development, Escorts is today in the league of premier corporate entities in India.

Technological and business collaboration with world leaders over the years, Globally
competitive indigenous engineering capabilities, over 1600 sales and service outlets and
footprints in over 40 countries have been instrumental in making Escorts the Indian
multinational. At a time when the world is looking at India as an outsourcing destination, Escorts
is rightly placed to be the dependable outsourcing partner of world's leading engineering
corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics,
implements and attachments to tractors, and shock absorbers for heavy trailers and armored
tanks.

In today's Global Market Place, Escorts is fast on the path of an internal transformation, which
will help it to be a key driver of manufacturing excellence in the global arena. For this we are
going beyond just adhering to prevailing norms, we are setting our own standards and
relentlessly pursuing them to achieve our desired benchmarks of excellence.

SWOT ANALYSIS:

STRENGTH:
Escorts Limited has proven through its performance in fi scal 2007-08 that the efforts to
strengthen the fundamentals of the company, sharpen focus on core strengths, build value for
customers and drive operational efficiencies have put the company on a profitable track. Of the
many initiatives that were undertaken, the biggest contributor has certainly been the initiatives in
revamping the economics of the business by focussing on cost compression.

A slew of initiatives has resulted in a saving of over Rs. 100 crore by eliminating waste, working
more efficiently, right-sizing the work force, reduction of held stock and negotiating better prices
from our suppliers. Company engineering strength built over several decades gives us this
competitive advantage to continuously develop new products, advance our processes and
develop customerfriendly solutions.

WEEKNESS:

1. Diversified Products on the list and the concentration each product receives
decreases accordingly.

2. Huge customer base has made the online services slow.


3. High reliance on imported raw material imports creating potential price / Quality
available issues.
4. Realization per metre is still lower than competition
5. Flexibility in organization.

Opportunity:

There is data available in case of registered motor vehicles, but for carts and bicycles, there is no
published information. Also, no reliable source of information is available regarding vehicle
penetration into rural areas. A few studies have been found to indicate the following:

a) 50% of villages have a population less than 500.


b) 60% of villages do not have access to AWRs.
c) Smaller the village, lesser the economic activity, and therefore, lesser the number of vehicles.

Carts ferry only about 15 percent of the tonne-km of goods whereas trucks carry about 83
percent. India is highly under-motorized. The penetration levels of cars, two-wheelers, buses and
other commercial vehicles stand at 7, 45, 0.7 and 4 per thousand persons, respectively. These
levels of penetration only signify an even lesser extent of the same in rural areas. Railways, good
roads and reasonably taxed vehicles, all together, would enable the transport of goods between
rural production bases and urban centers of consumption. It definitely is not a question of either
but is one that has to consider both.

Public transport needs to be enhanced and taxes need to be reduced. Taxes add to about 50
percent of the vehicle cost, in India. Export schemes have been withdrawn, Multi-Utility
Vehicles (MUVs) are taxed at a uniform rate of 16 percent and some other cars at 24 percent.

THREATS:

World Bank has projected world output to grow by a mere 0.9% in 2009 compared to 2.5% in
2008 and a high of 4% in 2006. Growth in the developing countries as a whole is expected to fall
from 6.3% in 2008 to 4.5% in 2009, only to recover to 6.1% in 2010. This is mainly due to China
and India. India, being largely domestic dependent economy, is expected to show a growth of 6%
to 7% during 2008-09 and 2009-10. Major effect of the decline in growth is coming in the
manufacturing sector and the services sector. It is expected that the decline in these sectors will
be compensated by high growth in the agricultural sector.

PRODUCT AND MARKET:


Farm Track
Farmtrac brand are the most powerful premium range of tractors that give maximum productivity
to the farmers.

Premium range - Powerful premium brand, 35 - 75 HP range

• Exported to the most advanced markets in the world.


• Well accepted internationally for its versatility.
• Designed for the demanding requirements of progressive farmers.
• Machine with powerful features for maximum efficiency.
• A status symbol.

FT HERO FT CHAMPION FT - 45
Superior technology Most powerful tractor Powerful performance
Enhanced in 39 Hp category Optimum cost
34 Hp. 42 Hp.

FT – 60 FT – 50 EPI FT – 60 DX
Versatile. Best in class for puddling Power pride and
World Class and soil ploughing performance
50 Hp. 45 Hp. 50 Hp.

FT – 65 EPI FT - 70
Toughest tractor for Unparalleled in his class
Hardest soil. 60 Hp.
55 Hp.

Power track

Powertrac brand of tractors are the most fuel-efficient tractors in their respective categories that
offer excellent value for money and have helped the farmers improve their quality of life.

Value range – Value for money, Fuel efficient, 30 - 55 HP range


• India's No.1 Economy Range - "Diesel Savers"
• Engineered to give spectacular diesel economy.
• The Diesel Saver technology - Great savings.

PT-434 PT-439 PT-445


Best fuel efficiency Best fuel efficiency, Utility and Economy
in its class. Lowest maintenance. 45 Hp category.
34 Hp category. 39 Hp category.

PT-455 Escort – 27 Hp. Escort – 35 Hp.


Fuel efficiency and Power
55 Hp category.

RAILWAY EQUIPMENT:
An ISO: 9001-20000 certified company, Escorts manufactures railway equipment as per
international standards specified by UIC, AAR and Indian Railways.
Asia’s largest manufacturer of air brake systems, the conversion of vacuum brake stocks to air
brakes and installation and commissioning of complete brake systems on new builds are also
undertaken by Escorts.

Diverse product range:


Shock Absorbers (Oil Dampers) for coaches, locomotives, EMUs, MEMUs, DMUs, Metro
and Rail Cars

Air brakes for coaches, Freight cars, DMU and OHE Cars

Automatic/Semi Permanent Couplers for EMUs, DEMUs, MEMUs


Electro Pneumatic Brake Systems for EMUs and MEMUs

Composition brake blocks for coaches, locomotives, freight cars and EMUs

Rail fastening systems for wooden, steel and concrete sleepers

Direct Admission Valves for vacuum braked coaches

Testing equipment for brake systems and shock absorbers

Air brake accessories for passenger coaches, freight cars, locomotives and self propelled
vehicles

Metal to rubber bonded vulcanized components

Automatic twist locks for container freight cars

Air Brake Hose Angle Cocks Brake Beam Distributor Valves


Couplings Mounted Brake
System

Slack adjuster
Company analysis:
Chapter 3
Organization
Design

ORGANIZATION STRUCTURE:
An organization structure refers to the determination of organization system of the enterprise it
determines the programs and procedures by which the administrative relations of an enterprise
are defined and established. No activity of the organization can go out of this structure. As the
policy of the enterprise determines the limits within which the enterprise has to work. In the
same manner organization structure determines and defines the shape and size of the enterprise
according to which the administrative and organization decisions have to be taken. It is also the
framework of activities of the enterprise, it may also be considered as the map of the building to
be constructed. Organization structure can be defined, as the organization structure of an
organization deals with its organizational arrangements.

TYPES OF ORGANIZATIONS STRUCTURE

FORMAL ORGANIZATION:-

It refers to the planned structure of jobs and positions with clearly defined objectives and
functions. It is consciously created by top management for the accomplishment of enterprise
objectives. It is made up of official relationships and channels of communication. Formal
structure is governed by established rules and procedures. Formal organization tends to be stable
and predictable. Thus, it is represented in the organization chart and manual of the enterprise.

INFORMAL ORGANIZATION:-

Informal organization arises from the personal and social relations of people. It is not formally
designed but develops spontaneously out of interactions between persons. It is influenced by
personal attitudes, likes and dislikes. Informal relations cut across formal channels. People
working together in an enterprise frequently come into contact and develop personal or social
relations outside the formal structure.

Advantages of the organization structure:-

The organization structure has the following advantages in the enterprise:-


• Necessary for the management:- it is necessary for the management of the business and
industrial enterprise. In the absence of a clearly defined organization structure, the
management cannot discharge its duties properly because the structure defines and
defines the relation between all the departments of the enterprise and the rights and duties
of all the in the enterprise. It also tells us about the managerial approach.
• It reveals the drawback of an organization:- organization structure is an important
document of an enterprise. It serves as the guidelines to explain what should be done in
the enterprise. Actual performance of the enterprise is compared with this document. The
way it reveals the drawback of an organization
• Helpful in delegation:- it is also helpful in providing the suitable training to the
employees of the organization and defining their duties. It helps in delegating proper
authority to the employees so that they can discharge their duties effectively and
efficiently.
• Helpful in training:- It is also helpful in providing suitable training to the employees and
defining their duties like mentioned in the above. It defined the requirements of all the
suitable postages and it also determines the need, nature, and the from of the training
required.

Disadvantages of organization structure:-

The organization structure follows from the certain defects:-


• It is difficult to change it: - Management is a dynamic science. To make is a real science,
must be practical, no hard and fast line can be drawn in the activities of enterprise,
organization structure is the definite determination of activities. Therefore, it develops
rigid ness in the activities and becomes difficult to make any changes easily.
• It reveals only the formal relations:- A very important drawback of the organization
structure is that it is only a formal document. It defines only the formal relations among
the employees of an enterprise. But in practice, there are two types of relations among
them. Formal and informal and organization structure does not define informal relations.
• It creates conflicts:- Organization structure makes clear difference in the rights and
duties of all the employees of the enterprise. It is the feeling of boss and subordinate
among them. It also develops the feeling of superior and inferior. It also develops the
feeling of senior and junior.

TYPES
1. Pre-bureaucratic structure- This structure is most common in smaller organizations and
is best used to solve simple tasks. They follow a flat hierarchy system.
2. Bureaucratic structure- They are suited for complex or larger scale operations. Under
this structure:-
• Functional structure- This structure groups specialize in similar skills in separate
units. It is well suited to organizations with a single or dominant core product
because each subunit becomes extremely adept at performing its particular portion
of the portion.
• Divisional structure- It is formed when an organization is split up into a number
of self-contained business units, each operating as a profit centre.
3. Line organization- It is also known as scalar or military organization. In this structure,
there is a vertical line of authority running from the top to the bottom of the
organization. Here, the command is through a straight and unbroken line. All persons at
the same level are independent of each other. The authority and responsibility of each
position is specified. The man at the top has the highest authority and it is reduced at
each successive level down the hierarchy. Every person is in direct chain of command.
Line organization can be of two types. In pure line organization all individuals at a
given level perform the same type of work and they are grouped into divisions only to
facilitate effective supervision and control. In a departmental line organization work
performed in each department is of a different type.

4. Functional organization:-
Under functional organization, the organization is divided into a number of functional
areas. Each function is managed by an expert in that area. Every functional area
serves all other areas in the organization. Thus, an individual in the organization
receives instructions from several functional heads. Every functional expert enjoys
functional authority over subordinates in other departments. Within a functional
department every operating executive receives orders from several functional
specialists.

5. Line and staff organization-


Line and staff organization is a combination of line and functional structures. Under it,
line authority flows in a vertical line in the same manner as in the line organization. In
addition, staff specialists are attached to line positions to advise them on important
matters. These specialists do not have power of command over subordinates in other
departments. They are purely of advisory nature. Thus, staff positions are created to
support the line managers. Every staff specialist, however, has line authority over the
subordinates in his own department.

6. Matrix organization-
Matrix organization is a hybrid grid structure wherein pure project organization is
superimposed on a functional structure. It is a two-dimensional pattern developed to
meet the problems of growing size and complexity of undertakings. Such undertakings
require an organization structure more flexible and technically oriented. Matrix
structure has been defined as “any organization that employs a multiple command
system that includes not only the multiple command structure but also related support
mechanism and an associated organizational culture and behavior pattern”. Thus, a
matrix organization is characterized by an overlapping of command, control and
behavior patterns. In this organization, there is a permanent functional set up. In
addition, temporary project groups are created to handle infrequent short-term
projects.
ABBREVIATIONS

MD - Managing director.
DF - Director Financer
GMT -General Manager Technical.
AGM HR -Asst.General Manager (HR)
AGM OP -Asst.General Manager operations.
CSO -Chief Security Officer.
M (P&W) - Manager (personnel and welfare)
APO -Assistant Personnel Officer.
PRO -Public Relations Officer.
DO - Duty Officer.
AGMM -Asst. General Manager Marketing.
SM - Sales Manager.
SSO - Senior Sales Officer.
DFC - Deputy Finance Controller.
SAO (GA&F) -Senior Accounts Officer (General Accounts & Finance)
SAO (CASH) -Senior Accounts Officer Cash.
SAO (E&EDP) - Senior Accounts Officer (Establishment & Electronic data
processing)
SAO (MA) - Senior Accounts Officer (marketing accounts).
SAO (Co) -Senior Accounts Officer (confidential)
SAO (PF) -Senior Accounts Officer (Provident fund)
AAO - Assistant Accounts Officer.
AGM MT - Asst. General Manager Materials
MP - Manager purchase.
MS - Manager Stores.
MIC - Manager Inventory Control.
SPO - Senior Purchase Officer.
APO - Assistant Purchase Officer.
SY&IA - Company Secretary and Internal Auditor.
DMIA - Deputy Manager Internal Audit.
SE - Senior Engineer.
MO - Medical officer
PLM - Plant Manager.
DMPR - Deputy Manager Production
AGMTS - Asst. general Manager (Technical Services).
CEPC - Chief Engineer Pollution Control.
DMTS - Deputy manager (Technical Services).
CE(S) - Chief Engineer Safety.
SE(PC) - Senior Engineer Pollution Control
OQC - Officer Quality Control
AGME - Asst. General Manager (Engineering).
CEM - Chief Engineer Maintenance
CE(U&S) - Chief Engineer Utilities & Statutes.
DGMP - Deputy general manager (Projects)
DME - Deputy Manager Engineering.
DM(U&S) - Deputy manager Utilities and Statutes.
AGMP - Asst. General Manager (Project).
AGP(S&P) - Asst. General Manager (Systems & Project).
DM(S) - Deputy Manager (Systems)
DGME&I - Deputy General Manager (Eletricals & instrumentation)
AGM(E&I) - Asst. General Manager (Eletricals & instrumentation)
CEE - Chief Engineer Eletricals
CEI - Chief Engineer Instrumentation
SEE - Senior Engineer Electrical
DM (HT) - Deputy Manager High Tension
DM (LT) - Deputy Manager Low Tension

Chapter 4
Level
Function
And Process

ORGANISATIONAL STRUCTURE:

The main functional departments of ESCORT are:-


➢ OPERATIONS DEPARTMENT
➢ HUMAN RESOURCE DEPARTMENT
➢ MARKETING DEPARTMENT
➢ FINANCE DEPARTMENT
➢ TECHNICAL and SERVICE DEPARTMENT

OPERATION DEPARTMENT

Operational department is the most important department of ESCORT. This department carries
out the manufacturing of all the products. The company carries out continuous production
system; hence this department plays a very crucial role in ESCORT.
DUTIES AND RESPONSIBILITIES OF OPERATIONS MANAGER
1. MOP is the head of the operation department.
2. MOP fixes the monthly target according to the market operations
3. MOP is responsible for the modification of the production process and is responsible for
efficient discharges.
4. MOP is the designated emergency controller during any hazardous incidents.
5. MOP has the administrative control over the operations department.

OBJECTIVES OF OPERATIONS DEPARTMENT


1. Reduce non confirming products.
2. Maximize the availability of electrolyze operation.
3. Optimizing the specific consumption of electricity, raw materials and resources.

DUTIES AND RESPONSIBILITY OF PLANT MANAGER


1. PLM is the custodian of the plant.
2. PLM plans production activities to meet the production target
3. PLM is responsible for the material consumption.
4. PLM plans the shutdown activities and carry maintenance work of the plant
5. PLM coordinates the operational functions with other departments for the smooth
functioning of the plan.

HUMAN RESOURCE DEPARTMENT


Human resource is considered as the most vital asset of an organization. ESCORT has a well
defined employee power. It helps the organization to perform well in the market. Human
resources department is headed by manager, HRD, who organizes the training programs for
workers and managerial staff. The manager HRD is responsible only for training and
development. MHRD does not come under the personnel department for workers and managerial
staff.

MAIN FUNCTION OF THE DEPARTMENT


• Identifying training needs
• Impacting the required training
• Maintaining the training records
HRD organizes training programs using internal faulty or engaging faculties from reputed
organizations. The department in consultation with concerned department heads to organize
house training programs.

VARIOUS TRAINING PROGRAMMES

GENERAL TRAINING
In order to provide this type of training, one has to determine what would be the trainee’s growth
potentials, up to what level he can grow in the organization etc. A performance appraisal has to
be done to evaluate his present performance. Training is given on the basis of appraisal.
NEED BASED TRAINING
Need based training will be done o the basis of determining the level of knowledge and skill one
requires for a particular job. Next is to find out how many employees have to be given this
training. On the basis of these needs training is given to the employees.

CUSTOMER TRAINING

Customers are given training on handling of machines and other equipments in various
situations.

INDUCTION TRAINING

It is the training provided to the newly recruited employees to familiarize with the activities,
rules, policies of the organization. It is also done to introduce the new employees to the other
employees of the organization.

TECHNOLOGY TRAINING
Company provides advanced training for workers to cope up with the technological changes.
Feed back is obtained from employees and the effectiveness of the training programme is
ascertained after a period of 2-3 months.

PERSONALITY DEVELOPMENT PROGRAMES

Personality development programmers are conducted in a regular time period for the
development of both workers and manager.
FINANCE DEPARTMENT

Escort Railway Division, Rudrapur has an efficient finance department headed by the finance
manager and he is assisted by the deputy manager. Finance manager is responsible for shaping
the fortunes of the company, preparing budgets, raising funds, keeping different accounts etc.
ESCORT is having management information system to assist the finance department. The
finance department itself is divided into different sections like general accounts, costing bills,
establishment and provident fund accounts sections each having its own functions.

FUNCTIONS OF FINANCE DEPARTMENT

● Purchase bills passing and payment to suppliers


● Sales invoice records
● Debt collection
● Budgeting and costing
● Statutory auditing
● Finance control
● Handle all auditing and taxes
● Sales accounting
● Generation and utilization of funds
● Treasury operations

TECHINCAL AND SERVICE DEPARTMENT

Technical service department is headed by MTS and has 4 sections,


1. Technical service section;
2. Fire and safety section;
3. Quality control section;
1. Technical service section
This section is headed by CETS and concerned with technical aspects of the plant.
The main functions of the technical services department are:

1. Daily production calculation and reporting.


2. Collection of daily data from plant control room.
3. Overtime calculation.
4. Feeding data to the computer regarding the plants.
5. Production slips at daily production report generation.
6. Monthly reports preparation, both internal and external.
7. Maintaining reports of production loss due to various reasons.
8. Calculation of monthly production bonus.

2. Fire and safety section


Functions:
1. Provide training regarding fire, safety and first aid.
2. Conducting safety mock drills.
3. Regular maintenance of fire, water pumps and tanks.
4. Issue of work permits.
5. Providing safety awareness programmes.
6. Providing safety incentives schemes.
7. Accident reporting and investigation.
8. To prepare for emergency situation.

3. Quality control section


The section is headed by SOQC and reporting to CETS. The main functions of quality control
section are to maintain the quality of the products in each stage of operations. Quality of raw
material, in process fluid and finished goods are also checked. The products have to satisfy ISO
specifications. Raw materials, mainly bushes, cover regular, control chamber railway parts,
P.T.O. nave, casine eye, tee block, MS-ring, socket flange and socket flange pipe fitting have to
meet certain requirements specified by the company itself.

MARKETING DEPARTMENT:
FINDINGS AND CONCLUSION:

FINDINGS:

Escorts Railway Division is on a steady growth path.


Escorts Engineering Division has played a significant role in the growth and modernisation of
rail transportation and continuously builds products to ensure comfort and safety using Indian
technology with global standards.
The Railways as a business opportunity was recognised way back in the early 60s by Escorts.
They were among the first to introduce products and technology for modernization of Indian
Railways to ensure safer and faster trains. They have been associated with the Indian Railways
since last 45 years, and are one of their oldest and most trusted partners.
Escorts in-house R&D and state-of-the-art manufacturing facility for advanced product design,
development, testing & validation all play a critical role in bringing about a high level of
customer satisfaction, reliability and safety of products that cater to the various needs of the
Indian Railways. Their fully equipped labs for complete testing of products have enabled us to
develop products in compliance with Indian and international standard specifications as laid out
by the Indian Railways. Escorts has been a pioneer in bringing technology from international
suppliers into India and indigenously developing products like Air Brakes, Couplers – EMU/
Semi-Permanent, and Shock Absorbers to name a few. Escorts was the first company to bring
international standard manufacturing to India. Escorts has also been the pioneer in changing over
from Vaccum Brakes to Air Brakes that ensure safe and reliable journeys. We were the first
supplier of the Air Brakes and made the largest number of installations of the Air Brakes. Today,
when the Indian Railway modernization is moving at a fast pace, we are not only able to
innovative and develop reliable products but also capable of developing new product mix.

Escorts latest and important rail projects are Main line Couplers, Panel Mounted Brake Systems,
Beam Mounted Brake Systems, Disc Brake systems, LHB Shock Absorbers, Bio Toilets, and
Fire retardant Vestibules. The focus is High Throughput Systems with ease of operation and
maintenance, and most of all reliability and service.
Escorts Railway Equipment Business has two manufacturing plants, one in Faridabad, Haryana
and another in Rudrapur, Uttaranchal. Shock Absorbers, Air Brakes, and Composite Brake
Blocks are manufactured both in Faridabad and Rudrapur. Electro-pneumatic brakes, bio-toilets
and rex-locks are exclusively manufactured in Faridabad. And assembly of Semi-permanent
couplers, manufacture of Rubber-parts and E-parts is wholly at Rudrapur. Escorts Railway
Equipment Business is on a steady growth path and in the short term (within two - three years)
we have a target of doubling growth. They plan to expand both our existing product portfolio and
add new ones too.

With a 40 per cent year-on-year growth, Escorts Railway Division is on a steady growth path.
Our order book position is healthy and with new projects in the pipeline it will look even better
over a period of time. As their Railway Business is expanding with more and more products
lines, there is no shortage of demand. To meet this demand, Escorts has augmented its
manufacturing facilities with latest technologies and skilled workmen.
We have increased capacities of all existing products by 50-100 percent in the last one year. We
have also built up capacities to roll out new projects in intended numbers.
Escorts in-house research, design and development competencies, world-class manufacturing
facilities, continuous training, skilled labour and professional management give them an edge
over competition. They are continuously investing in upgrading our quality systems and culture
to meet all international standards and requirements of manufacturing to be at par with
competition. International competition helps us understand global requirements and will give
them the window of opportunity for competing in wider global markets.

CONCLUSION:

Indian Railways is in need of world-class infrastructure to compete with other modes of


transportation. The need to move large volumes of freight through dedicated corridors is of
immense importance. They are happy that Indian Railway is working aggressively in this area.
Indian Railway needs to introduce innovative ways of technology to meet the requirements for
moving large volumes of freight and passenger traffic with highest priority on safety. Overall
connectivity within the country too is imperative. Connectivity is limited and there is a great
need to connect our rail link to newer areas and create multimodal transportation systems. This
will bring the development to remote and far flung areas of our vast country.

A leading manufacturer of critical railway components since 1964, Escorts is one of the oldest
and the most trusted partner of the Indian Railways. Over the last 45 years Escorts has built a
long term relationship and committed partnership with the Indian Railways, pioneering and
indigenizing many critical products. Certified for ISO:9001-2000, the Railway Equipment
Division (RED) under the Engineering Division of Escorts Ltd. is known for developing world-
class products with Indian Technology having Global Standards.
The Railway Division’s key focus is to develop products that provide High throughput for the
customer, Safety, Comfort and are Environment-friendly. Escorts’ fully equipped labs for
complete design, development and testing of products are in compliance with national and
international standard specifications as laid out by the Indian Railways. The in-house R&D,
state-of-the-art manufacturing facilities at Faridabad, Haryana and Rudrapur, Uttaranchal for
advanced product development, design, testing & validation play a critical role in bringing about
a high level of customer satisfaction, reliability and safety.
Air Brake Systems, Electro Pneumatic Brakes, Composite Brake Blocks, Semi Permanent
Couplers, shock absorbers, rail fastening systems are among the Safety products Escorts
manufactures.

Bibliography:
1. CMIE PROWESS
2. EBSCOHOST
3. http://www.escortsgroup.com
4. Unparalleled Reach & Access:
Network of 1212 Dealers, Sub - Dealers, Distributors & Stockists.
5. www.google.com
6. http://www.docstoc.com
7. http://insightory.com