Professional Documents
Culture Documents
A Project report submitted in partial fulfilment of requirement for the award of degree of Master of Business Administration of University of Kerala
Submitted by
NEETHA.K
Reg. No. MGT 1005364 UNDER THE GUIDANCE OF Mr. MANOJ KRISHNAN C.G CO-ORDINATOR, IMK ADOOR
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I declare that the project report entitled AN ORGANISATIONAL STUDY AT V- GUARD INDUTRIES submitted by me for the award of the degree of Master of Business Administration of the University of Kerala is my own work. The report has not been submitted for the award of any other degree, diploma, fellowship or any other similar title or prizes and that the work as such has not been published in any journal or magazine.
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I am deeply indebted to Dr. K.S. Chandrasekhar, Head, IMK for his valuable suggestions and me an over view on how to do the project.
for giving
Words can hardly express my gratitude to Mr. John, Hr manager, V GUARD for the valuable guidance and assistance in completing the work successfully. I wish to express my heartfelt thanks to Mr. Manoj Krishnan.C.G, Coordinator, IMK, Adoor permission to pursue my project work at V GUARD I take this opportunity to express my sincere gratitude and thanks to Mrs. SUMA S R Faculty, IMK ADOOR for providing me with adequate materials for doing the project work. I wish to place on record my gratitude to all others who have directly or indirectly helped me, my parents and my friends for their support. granting
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CONTENTS
CHAPTERS CHAPTER1 TOPIC INTRODUCTION OBJECTIVES OF THE STUDY KEY REGULATION AND POLICIES RESEARCH METHODOLOGY LIMITATIONS PAGE No: 08 09 09-11 11 12
CHAPTER2
14 18 14-15 15 15-16
REALIZATION OF GREAT DREAM : THEME 16-18 PARK FACTORS GOVERNING THE GROWTH OF THE INDUSTRY 18
CHAPTER3
COMPANY PROFILE COMPANY PROFILE HISTORY MAJOR EVENTS AND BREAKTHROUGH CERTIFICATE, AWARDS,
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CHAPTER4
DEPARTMENT PROFILE DEPARTMENT PROFILE ORGANIZATION CHART DEPARTMENT DETAILS CORPORATE SOCIAL RESPONSIBILITY
CHAPTER 5
CHAPTER 6
72-78
CHAPTER7
79-82 80
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BIBLIOGRAPHY
83
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CHAPTER 1
INTRODUCTION
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working and functioning of the company. This shows us how the different departments in an organisation work and wins as a single unit. I choose to do my project in v guard industries because it was a company which has created a niche for itself and has been nurtured by quality consciousness, passion for hard work and will to succeed. The period of study was from 25th JULY to 7th AUGUST and was conducted at head office at Vennala.
V GUARD industries being INDIA S prestigious electronically and manufacturing company was established in the year 1977 from the vision of one man KOCHOUSEPH CHITTILAPPILLY. It plays a vital role for the economic development of our country. Their untiring commitment for performance, cutting edge technology, innovative design , dependable service standards have lead to unrivalled product quality and trusted brand image. V GUARD S product range deals into various ranges of products which cater the requirements of consumer durable industry , agriculture and construction sectors of the country. It has a strong
distribution and marketing channel in small towns across India, which helps in tapping the rural and the interior market. India being aimed to convert her into developed nation has to make developments in all core sectors like infrastructure, power; consumer durables etc. and this in turn augment the growth of the
corporate sector of the country as a whole. As the economy is growing in a faster manner , the disposable income of the people are also increasing and most of the population is brought under the spectrum for spending for housing and white goods. The aspiration to own luxury goods is also
increasing and this has resulted in a revolution of consumer durables. The company is confident of capitalizing all these factors and increasing market presence across the country with focus on the penetrating the rural markets.
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plant machineries, raw materials. 3. To look after employees welfare 4. To contribute towards HRD
METHODOLOGY
Research methodology is a systematic analysis of a problem and reach a conclusion. It may be understood as a science of studying how research is done scientifically. The study is done through collecting primary data and secondary data. 1. PRIMARY DATA Primary data are those data which are directly collected or which are the first hand data. Primary data are accurate and reliable. These datas are collected by interaction of staffs, consumers, interviewing managers. Primary data are collected by direct interview with department heads.
2. SECONDARY DATA Secondary data are those which have been collected by some other person for his purpose. They are usually in shape of finished products. Secondary data consist of catalogue, manuals, magazine, annual reports, and internets. Secondary data are collected by Annual reports of V guard industries ltd Periodical , books published by the company Official websites of v guard
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CHAPTER 2
INDUSTRY PROFILE
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In this scenario,
every company complains of increases competition, lower order books and shrinking margins The Indian electrical / electronic industry is of course further besieged by the fact that there is a dearth of business on account of lack of investment in the power infrastructure.
GLOBAL SCENARIO
There is a sizeable potential market for voltage regulators in Asia, South America, Africa and the Middle East since their electrical generations and distribution infrastructure is still nascent. While fluctuation in supply voltage in the United States is about 5 percent, it is around 20 percent in Mexico and South America and 10 to 15 percent in developing nations of Asia. Such fluctuations are very damaging, especially because most applications connected to the supply have many electric components Countries that lack a basic national power infrastructure generate power for individual establishments on a small scale using crude facilities. Such plants, especially the ones located near mines and oil wells, have substantial need for voltage regulation .The drive to modernize industrial
and telecommunications systems in developing countries has to be backed with investments in voltage regulators to protect the equipment and extend their lives.
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INDIAN SCENARIO
Voltage stabilizer are considered to be a necessity in most parts of India to protect consumer appliances like TV, refrigerators, air conditioners etc as many regions in India face problem of poor quality power supply fluctuation & high voltage. Though some models of these appliances are sold with built in stabilizer, many consumers still prefer to employ stabilizer for complete protection. The total market size for the consumer durables market is about Rs 13600 crore in which CTV is the largest contributor in this segment and the market has been estimated at 15.15 million units in the year 2009-2010 (Source: IMRB international survey august 2007) The consumer durable sector has witnessed an overall growth of 27.5%in 2009 compared to the corresponding previous year. The sectors which have recorded excellent growth rates in terms of quantity produced are air conditioners. Colour TV, and refrigerators which in turn lead to increase in the growth rate of stabilizers in the market tremendously.
intention was to set apart his time for creative conceptualization of new projects. Moreover, it enabled him to get out of the monotony in mundane and routine operations for which his management team is l lore thorough than Chittilappilly himself. It was his desire to do something unconventional and different from his main stream of business activity. He used to spend his leisure time in going to amusement parks than going for shopping. A visit with his family to many such amusement parks in India and abroad created so much passion for starting an amusement park in Cochin. He said a man to his desire not because of the 18 acres of beautiful land he possessed at Kakannad, the suburb of Cochin, but because he wanted to be truly creative and unconventional in his new endeavours. Moreover, he was confident that an amusement park of this kind would generate rich cash inflow due to its attractiveness to a vast majority of fun-loving Keralites. A market research by V-Guard team showed that more than 50 % of the visitors to parks located in neighbouring Tamil Nadu are Keralites. Chittilappilly's confidence was strengthened by the belief that this project with its comparatively lesser portion of variable expense and at current level of fixed cost can generate higher sales revenue and profit with reasonably higher margin. Without a second thought, he conveyed his new idea to his management team and separated a set of creative-minded subordinates for exploring and exploiting this opportunity. Eighteen acres of land was added to the existing property to convert the land into a beautiful landscape. The team was sent to different amusement parks in India and abroad and they were energized to go into action. It took two years of meticulous planning and action for Chittilappilly's team to open the floodgates of VGuard amusement park to the public in 2000. While selecting human resources for Veegaland, Chittilappilly was not particular not to pick up anyone having previous experience in water theme parks,
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HISTORY
. The foundation of the business was laid with the formation of a Partnership Concern viz. by their Promoter in the year1977 which was engaged in the business of manufacturing and marketing voltage stabilizers under the brand name V-Guard. In the year 1992, Premier Electronics, the partnership concern
was dissolved and Mr. Kochouseph Chittilappilly continued the business as a proprietary concern. Also, in the year, 1985, Mr. Kochouseph Chittilappilly started another proprietorship concern by the name of M/s Prompt India for marketing of the products under the brand name of V-Guard. Subsequently, M/s Prompt India changed its name to M/s V-Guard Industries. On February 12, 1996, our Company was incorporated under the name of V-Guard Industries Limited under the Companies Act, 1956, with the Registration No. 09-10010 of 1996 having its registered office at 44/1037, Little Flower Church Road, Kaloor , Cochin682017, Kerala,
India .With effect from 1st April, 1996, their company took over the business of the proprietary concern i.e. M/sV-Guard Industries, on going concern basis for a lump sum consideration of 234 lakhs and carried on
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Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables(House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way.
of Rs 100000 and with just two employees. Two refrigerator stabilizer were manufacture each day 1980 1982 1983 1986 : Launched AC stabilizer : Started another unit called Universal Electronics : Started supreme Electronics : Started prompt India . Expanded operations outside Kerala by opening of Tamil Nadu branch, followed by a branch in Karnataka. Prompt India started Marketing stabilizer in the name of v guard 1987 1989 1992 1996 : Launched Servo-Controlled Stabilizers : Prompt India converted into v guard industries : Launched v guard pumps and started a new branch office in Andhra pradesh : v guard industries became a public limited company. Launched v guard Water heaters and wiring cables.
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PROMOTERS OF V-GUARD
Mr. Kochouseph Chittilappilly, Post graduate in Science majoring in Physics from Calicut University. Ms. Sheela Kochouseph, B.Sc, Home Science graduate from University of Calicut.
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Financial Analyst and Certified Financial Planner, Financial Planning Standards Board India. He was inducted to the Board of Directors of V-Guard as an Independent Director on 16th August, 2007.
Executive Director: Mr.Mithun Chittilappilly is a Post Graduate in Finance from University of Melbourne, Australia. Mr. Mithun after completing his Graduation in Commerce joined V-Guard to be trained in the various departments of the company.
Aged 48 years, is a Post Graduate in Commerce, Certified Financial Planner and a Research Scholar with School of Management Studies of Cochin University of Science and Technology. He joined the company as an Independent Director on 16th August 2007. Mr. A.K Nair
Appointed as the Non Executive Director of the Company on 27th May 2009 Mr. A.K.Nair holds a Bachelors degree in Mechanical Engineering with Masters in Business Administration and has over 45 years of Industry experience. COMMITIES Audit Committee Remuneration Committee Share transfer/ Shareholders Grievance Committee IPO Committee
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MISSION
1. To offer a range of products at affordable prices, which add to comfort of life through saving in manual labour time and energy or for entertainment 2. To make their products meet international quality standards and provide trouble free performance. 3. To adopt designs, which support timely brand efficient post sales service. 4. To continuously innovate and add value to their products, if needed with technical collaboration.
ISO9001
V-Guard's ISO 9001 certified factory for manufacturing electrical wiring cables is set up at Coimbatore, Tamil Nadu.
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PRODUCTS
Stabilizers
V-Guard is the largest selling brand of electronic voltage stabilizers across India.
5 Millions Of
customers were experienced the quality of protection of V-Guard stabilizers for their home appliances. Since 1977 onwards, V-Guard Stabilizer provides reliable and trusted protection from voltage fluctuations and used to safeguard the electronic home appliances like Television, DVD, and DTH Receiver, Music system, Home Theatre, Water cooler, Refrigerator, Deep Freezer, Air conditioner and Microwave oven. VGuard Stabilizers are designed with significant features like HMC Technology, Fail Safe circuit protection, High and Low voltage Protections, Time Delay Protection and Built In Thermal Overload Protection. Cables
These are manufactured in conformity with ISI standards at an ISO 9001 certified manufacturing plant located at Coimbatore in Tamil Nadu. V-GUARD PVC wiring cables are manufactured in conformity with ISI standards at an ISO 9001 certified manufacturing plant located at Coimbatore in Tamil Nadu. The HFT
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Pumps
V guard pumps are made according to ISI standards and specifications using high quality components and meet high performance standards. They are known for their sturdiness, durability and
dependability. The superior technology used in the construction ensures better efficiency and lower running costs. More than 150 different models are available with capacities ranging from 0.25 HP to 25 HP, and are ideal for domestic as well as for agricultural purposes.
Self Prime & Mini Monobloc Pumps Centrifugal Pumps Open well Submersible Pumps Jet Pumps Compressor Pumps Single phase bore well submersible pumps 3 Phase Bore well Submersible 3 Phase Centrifugal Monobloc 3 Phase Open well Submersible
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Incredibly Intelligent! The trusted companion for the computer, driven by high end features like advanced PWM MOSFET Technology with PID Control, Zero Power Drain Technology to prevent Deep Discharge of battery, OFF-MODE battery charging and intelligent software shutdown to provide high quality in power management. Models available in OFFLINE UPS are:
UPS 60 Royal UPS 70 Vismaya Plus UPS 120 EB Online-UPS - Single Phase to Single Phase Online-UPS - Three Phase to Single Phase High frequency true online UPS
V-guard Electric Water Heaters (Geysers) are manufactured in the-state-of-the-art production set up and comes with ISI mark and Pentad Protection System (PPS). Its outer body is made of rust proof, shock proof ABS.
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Instant Water Heaters Instant Gas Water Heaters Storage Water Heaters
Solar water heaters were launched by the company in the year 2002. The manufacturing base of solar water heating systems has since been improved substantially with the total number of 49 manufactures securing Bureau of Indian Standards (BIS) certification for their products, V-Guard Solar Water Heaters, a truly International quality product manufactured at the use the highly efficient Evacuated Tube Collector system enabling optimal utilization of solar energy. The PUF insulated stainless steel storage tank prevents heat loss. V-Guard Solar Water Heaters dramatically cut electricity bills, help conserve energy and are environment friendly.
They are available in: 100 Lpd, 125 Lpd, 200 Lpd, 300 Lpd, 500 Lpd and 1000 Lpd for domestic use, and are
easy to install and last a life time. V-GUARD ETC solar water heaters are also manufactured for industrial applications that is for pool heating, large hotels, large hospitals, factories etc. and are available in 2000 Lpd,3000 Lpd,4000 Lpd and 5000 Lpd and also according to the requirements.
Electric Fans
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V-GUARD fans are sleek and elegant, provide excellent air circulation. Double ball bearings ensure they keep whirling smoothly for years. The hub and blades have a powder coated finish and rust resistant. HIGH ANGLE Technology used in blade design ensures wider coverage. The fans are available in a range of colours to suit the interior dcor. CW 1548 CW 2048 M CW 3348 CW 3124 M SF 4048 M SF 6148 M SF 7048 M
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Chapter 4
Department profile
DEPARTMENT PROFILE
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ORGANISATION STRUCTURE
s ORGANIZATION CHART
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Department chart
Head of Department
Manager
Zonal In charges
Branch in charger
Service in charge
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ii.
Customer care
As per the company policies, all the details regarding the service terms , warranty details , service charges etc are to be displayed in front of the service centre. After the service has been done , feedback from the customers is collected . this improves them in correcting their flaws in the service provided and to serve them better. Feedback regarding the quality of the products, after sales service etc is collected by visiting the dealers dealing with their products.
iii.
Customer delight
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Through dealers:
The customers are able to register their complaints with the company through the dealers dealing with their products.
This department is in charge of coming up with the new and innovative ideas, conducting a study on feasibility analysis. A total of 138 employees belong to this department. This included quality controllers who are appointed at various factories. These quality controllers ensure that the processes are being followed as instructed by the head office. They ensure that the quality of the product is uniform with that of the products of the other factories. The quality controller approves the components that are being used in the outsourced factories. They provide such works to charitable institutions like Cherupushpa electronics, Sengo Pauls .They produce 1.5lakh stabilizer a month. V guard has about 62 factories in all over India. systems
Department chart
Electronics And new product
Senior manager
p Production
Department
Product Developmen t
Product Engineering
CARC
MRP
New projects
Production:
The production dept is in charge of looking into the production patterns and the processes that is to be followed in all the factories. They make sure that the patterns and products are uniform and according to the requirements
Product development:
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Product engineering:
Product engineering department product standardizes the process that is supposed to follow and the work that is to be done in the factories. The processes that are formed at the head office are given to the quality controllers that are appointed at the various factories. They ensure that the processes are followed as per the orders from the head office.
New projects
This department concentrates mainly on new and innovative ideas. They initiate new concepts and if found feasible, hands over it the production department foe making into reality. Home ups was such one product which was conceptualized couple of years back and is now one of their top selling product.
each product. They take the feedback and after analysing it, makes the necessary corrections. It looks after the production of pumps and motors. The total division consist of 102.they are engaged in the agriculture, domestic and industrial segment. This department consist of 85 employees
Department chart
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Deputy Manager
Senior Engineer
FINANCE DEPARTMENT Business as we know is concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as the financial statements. Financial statements refer to two statements which are prepared by a business concern at the end of the year. These are (i) income statement or trading and Profit and Loss Account which is prepared by a business concern in order to know the profit earned and loss sustained during a specified period; (ii) position statement or balance sheet which is prepared by a business concern on a particular date in order to know its financial position.
Department chart
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Head accounts
Secretarial
Inventory management
Internal audit
Costing
CURRENT RATIO
Current ratio may be defined as the relationship between current assets and current liabilities. This ratio, also known as working capital ratio, is a measure of general liquidity and is most widely used to make the analysis of a short term financial position or liquidity of a firm. It is calculated by dividing the total of current assets by total of current liabilities. Current ratio=current assets/current liabilities
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Current Ratio
Current Ratio
2.5 2 1.5
current ratio
1 0.5 0 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
As a convention the minimum of 2:1 is referred to as a rule of thumb or arbitrary standard of liquidity for a firm. A ratio equal to or near the rule of thumb is considered to be satisfactory.
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This ratio differs from the operating profit ratio in as much as it is calculated after deducting nonoperating expenses, such as loss on sale of fixed assets etc.,from operating profit and adding nonoperating income like interests or dividends on investments, profit on sale of investments or fixed assets, etc., to such profits. Higher the ratio, the better it is because it gives idea of improved efficiency of the concern.
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Series 1
NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. Here we find that net profit is sufficient enough for the company. Though in a low pace, the companies net profit if found to be increasing over the years. In the year 2005-2006 the net profit was 5.42; 8.20 in 2006-2007; 13.45 in 2007-2008; 5.45 in 2008-2009; 5.60 in 2009-2010.This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc.
9505.26
Fixed assets Land and building Plant and machinery Furnitures and fixtures Other fixed assets Capital work in progress 3687.06 2276.48 50.73 1113.95 2576.82 6001.86 3832.90 159.10 1235.43 288.75 +2314.8 +1556.42 +108.37 +121.48 -2288.07 +62.78 +68.36 +213.62 +10.90 -88.794
9705.04
1158.52
+1813.48
+18.68
Investments
1136.04
457.69
-678.35
-59.71
TOTAL ASSETS
20346.34
31016.55
+10670.21
+52.44
LIABILITIES& CAPITAL
1704.78 1831.75
2992.38 3909.74
+1287.6 +2077.99
+75.52 +113.44
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+9167.1 +1503.11
+119.03 +15.55
TOTAL
20346
s31016.55
+106070.21
+52.44
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Deputy GM
Senior officer
Officer
Senior executive
Executive
HR policy
The basic principles of V-Guard human resource policies include: Recruitment based solely on merit by following well-defined and systematic selection procedures without discrimination. Sustain motivated and quality work force through appropriate and fair performance evaluation, reward and recognition systems. Identify training needs within the organization and design and implement those need based training programmes resulting in continuous up gradation of knowledge, skill and attitudes of the employees. Maintain a quality human resource management system plan, design, and train, equip and motivate the dept staff to meet this standard of expectation.
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Recruitment
V-Guard's greatest asset is its employees. It is committed to attracting, retaining, and developing the highest quality and most dedicated work force possible in today's market. It strives to hire and promote people on the basis of their qualifications, performance, and abilities, and is determined to provide a work environment free of any form of discrimination both direct and indirect, including sexual harassments. While recruiting new employees V-Guard takes adequate care to identify the right candidates guard focus on recruiting candidates who display a high degree of learn ability, i.e. candidates who are open to learn new things and supply the same in new situations we also place significant importance on professional competence, academic excellence, analytical ability, term work, leadership potential, communication and innovative skills, along with a practical and structured to problem solving.
Training
V-Guard human resource department believes that quality is the hallmark of any successful venture. Quality training and development of human resource is realized through Identifying training needs within the organization and designing and implementing those need based training programs to bring about continuous up gradation of knowledge, skill and employee attitudes.
The following brief highlights V-Guard's training methodology for the comprehensive development of its employees
Training plan
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Performance appraisal
The first step towards carrying out performance appraisal at V-Guard is the evaluation personal skills for the tasks assigned to an employee during of
performance ,different criteria like timeliness ,quality of work carried out by the employee, customer satisfaction .peer satisfaction and business potential is considered The personal skill of the employees are also evaluated based on their learning and analytical ability ,communication skills, decision making, planning and organizing skills. Each of these criteria is measured on a scale and then evaluated. A performance appraisal system is a strong tool in the development of human resources in the organisation. It is considered as a mutual feedback to the management and thereby help to decide the carrier growth, training needs and other human resources development, interventions required for each of them thereby aiding their self development. It is vitally important that every individual has a clear understanding of his or her work, objectives, and responsibilities, because performance will measure against these.
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Company Policy
All selected candidates are initially placed on probation for a period of 6 months On completion of probation period and upon recommendation by the head of the department, the employee shall be absorbed and confirmed onto the rolls Management cadre employees are directly appointed into the skills
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Non-Statutory Benefits
Reimbursement of travelling expenses Leave travel allowance Medical reimbursement Personal accident insurance and medi claim insurance Performance linked bonus Reimbursement of telephone/mobile rent Incentives to personnel Group saving linked performance Benevolent fund Expenses for purchase of suitcase Concessional loan Interest free vehicle loans Higher education loans for employees\ Education allowance to employees' children V-Guard award for excellence Veegaland /Wonder Ia passes Discount offer for V-Guard products Suggestion awards Reimbursement of credit card renewal fee Best Article Award (V and We)
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Types of Leave
Casual Leave Sick Leave Annual Leave Marriage leave Transfer leave Maternity leave
Salary components
Basic pay Dearness allowance House rent allowance Conveyance allowance . Compensatory allowance Special allowance (10% of basic pay and dearness allowance) Additional compensatory allowance (based on place of posting) Fixed allowance Stores allowance
Departmental tours
As part of the goal setting process for the next financial year departmental tours were organized which included term building and brain storming sessions. These tips helped the employees to think out of tile box and give new suggestions in their area.
Employee counselling
Counselling programs were organized for all employees with the help of experienced counsellors from the respective field.
Unique HR practices
As we all know requirements of training and experienced professional with the desired mindset is the need of the hour for any organization to survive and grow in this competitive environment .while there is no dearth of professionals in Indian industry and people are available in dime a dozen, but what is most important and difficult to get is the right mindset. This can be easily substantiated by the number of applications for every job listed on the famous jobsites needless to say that selection of the best candidate with the desired mindset out of such large no of applicants is a very tedious take. With the business goal being very high the pressure on HR to reduce the time lag for filling a position has substantially reduced. Normally a position, which was regd. a month to be filled up, has now got to be filled up in 10- 15 days time .this has made the job still more challenging. To cope with the growing expectations of business and in order to give the organization a competitive edge to the business we in v-guard have streamlined the whole system by integrating the HR fundamentals with information technology and have adopted some practices unique to v-guard.
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MARKETING DEPARTMENT
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V-Guard also gives priority to the service sector. Also in far off areas like Idukki and Wayanad, franchisees are present so as to reach out to their customers.
Department chart
VICE PRESIDENT
KERALA HEAD
There are 6 executives under each product in-charge. In case of distribution centers, a manager, sales persons, van drivers and unloading boys are present. Training to all these persons is given on the basis of the products they are handling.
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In this, the products are available only through distributors. V-Guard has 36 distributors and 3248 dealers all over the country. The company provides their products to the retailers through the wholesalers. Stabilizers and cables are mainly distributed through this method.
In this, the products are made available to the consumers through authorized dealers. Products like fans and UPS are mainly distributed this way iii) Direct end user
In this, the products are distributed directly to the customers. There would be any intermediaries between the company and the customers. Products like online UPS, LT power cables and project coils are given directly to the customers.
Credit Policies
V-Guard extends credit policies when needed. Such services are mostly given to the old dealers who have been associated with the company for a long time. They allow such dealers to purchase products on credit. They also accept post dated cheques. Marketing strategies adopted
i.
In this strategy, the products are made available to the customers through distributors and retailers. The company provides the products to the distributors who provide them to the retailers at the price set by the company. Retailers provide the products to the customers as per their demand.
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In this, the products are marketed through direct marketing associations. Products like solar water heaters and digital UPS's are marketed this way. iii. Company--> Direct Dealers--> Customers
In this, the company markets their products among their customers only through authorized dealers all over the country.
Promotions
Every year a budget is set aside solely for advertising expenses. V-Guard gives a lot of importance in making their presence felt among the public and also making them aware of the various products that they have to offer. Some of the was in which they promote their products are: Electronic and print media Dealer meets, Plumber meets and Electricians meets. This is done for the purpose of product familiarity. Feedback is also collected at such events. Hoardings, lite and non- lite boards Acrylic boards Activities on radio station Exhibitions in campuses for products like online UPS s Exhibitions like Vanitha Ice, Vanitha Utsav, Paarpidam, and Thrissur Pooram Branding Dummy displays in showrooms Salesmen meet Offers and gifts during seasons eg. Towels gifted with water heaters Wall paintings e.g. Sabarimala routes
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Product strategy
V-Guard has different demand patterns for their products during the year. During the vacation time i.e. during April and May, the demand for air conditioners is high and so is the demand for stabilizers. From the month of November till May, the demand for pumps is high than during the other months of the year. In the months of June, July, November and December, the demand for water heaters is high. During the summer season the demand for freezers and coolers is high. During festival seasons like Onam and Christmas, demand for televisions is high.
Senior manager
Chief Officer
Deputy Engineer
Assistant
Engineers
This department consist of 50 employees which looks after the corporate planning and also by controlling its activities.
SYSTEMS DEPARTMENT
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Department chart
GM
Senior Manager
Assistant manager
Officers
Executives
Officers
Executives
. Employees working for companies like HCL and secure solutions are present in the organization .reports are collected from these companies on daily and monthly basis. Software development team present in the company handles the MIS activities. Updating format requirement etc are done by this team
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SCM chart
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PRODUCT DIVISION
PURCHASE
INVENTORY &LOGISTICS
SUPPLIER SELECTION
DISTRIBUTI ON
PO
DEALER
FOLLOW UP
CUSTOMER
TRANSPORTATION
It also conducts free health camps at villages and backward areas where the reach of proper health care is absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur and Ernakulum Districts in Kerala and Ramanagaram Taluk, Bangalore. The trust has also made substantial contributions to NGOs working for various social welfare causes like Udhavumkarangal and the SOS village. It has also donated generously to many national level causes and relief funds like the Prime Minister's Relief Fund, Kargil war victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa cyclone and the Tsunami Relief Fund of the Prime Minister as well as the Chief Minister.
Shantimandiram
An old age home for women, providing shelter and care for those who are unable to care of themselves in Parappur Village, Trissur, Kerala. It is managed by the Sisters of CMC Nirmala Province in whose able hands the inmates receive love and care irrespective of caste and community. The facility accommodates 60 inmates at a time and is recognised by the Board of Control for Orphanages and other Charitable Homes, Kerala. True to its name, all facilities are provided free of cost and it is a haven of peace and tranquility where the inmates spend the evening of their lives in dignity and comfort. Shanthimandiram celebrated its first anniversary on 29th May 2010 along with the Inmates. The function started with the blessings of Fr. Franko Kavalakkatt, Vicar, and Parappur Forona Church. Various cultural programmes have been performed by the inmates of Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and family. The sisters of Shanthimandiram also involved with the cultural programmes.
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Chapter 5
ENVIRONMENT ANALYSIS
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Opportunities In India the penetration level of white goods is lower as compared to other developing countries Unexploited rural market Rapid urbanization Increase in income levels i.e., increase in purchasing power of consumers Easy availability of finance
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Threat High import duty on raw material imposed Chief imports from Singapore, China and other Asian countries
The Indian consumer remains one of the most upbeat globally. The Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company revealed that Indians are "the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months." In fact, it is widely believed that the Indian market will fuel the growth of multinational companies in the coming years. While most leading companies are cutting costs in the US and Europe, they see India as a strategic market, which can fuel their growth.
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CHAPTER 6
PORTERS FIVE FORCES MODEL ANALYSIS
Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very
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Porter's five forces include, three forces from 'horizontal' competition: Threat of substitute products,
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THE THREAT OF THE ENTRY OF NEW COMPETITORS Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards zero (perfect competition).
The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.
Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost advantages Learning curve advantages
Expected retaliation by incumbents Government policies Industry profitability; the more profitable the industry the more attractive it will be to new competitors
THE INTENSITY OF COMPETITIVE RIVALRY For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
Sustainable competitive advantage through innovation Competition between online and offline companies; Level of advertising expense Powerful competitive strategy
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Used by a company which can intensify competitive pressures on their rivals? How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. THE THREAT OF SUBSTITUTE PRODUCTS OR SERVICES The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives:
Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product.
(THE BARGAINING POWER OF CUSTOMERS BUYERS) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume
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Buyer switching costs relative to firm switching costs Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis
THE BARGAINING POWER OF SUPPLIERS The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources.
Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Supplier concentration to firm concentration ratio Employee solidarity (e.g. labour unions) Supplier competition - ability to forward vertically integrate and cut out the buyer
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COMPETITION ANALYSIS
Much of the market in which v guard operates in its unorganised and fragmented of each of the products from other manufactures in domestic or divisions of large multinational corporations as well as competitors .They compete with their manufacturers on the basis of product range, product quality, product price after sales service including factories based on repetition, regional needs and customer convenience. Their completion varies for each of the products and regions. They compete different players in different products in different regions. Companies major competitors for the stabilizers are vigil, premier, care, Shalimar, Everest, Safeguard etc. Major competitors for cables are Finolex , Polycab, anger etc. competitors for pumps are plays such as Racold, Bajaj, venus ,Kirloskar .Competitors for solar water heaters Tata, BT. They also face competition from Crompton greaves, Hawells, Polar, and Khaitan for electronic fans and APC for the products ups. Our competition levels vary from each of the product in each region. In addition, the market share keeps changing constantly with advent of new technologies and products. In present competitive environment companies which develop effective, improved or reliable appliances and have strong customer focus in the form of providing after sales service will be increasingly differentiated from other in the field.
THREATS OF SUBSTITUTES
In built stabilizer are innovated. So no need for buying separate stabilizers Current trend is the use of natural product which is more healthy. Zone valve can be used instead of pumps.
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FINDINGS
The company made public issue in the year 2008 Several energy conservation measures are undertaken by the company
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Continuous efforts are made by the R & D department for reducing the manufacturing costs. As a result of intensive R & D, the size of the products was reduced conveniently. Technology, which aids production, was imported in the year 2007 and 2009. Technology imported in 2007 was not fully absorbed. 39 % of the shares are held by the promoters of the company. The competition from the unorganized sector is severe
Improper coordination among the superiors and subordinates during certain situation Increase marketing strategies for the promotion of air conditioners
CONCLUSION
This organization study report is the result of my work and credible information I have gathered during my period of association with the organization. I hope that the reality shock which I expect has stimulated me to gather information to face the actual real time situations in the industry in the future which acts as an
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The details obtained from the company for organization study are very useful for a professional career and decision making. And the study was a great experience to know all about the working of an organization.
SUGGESTIONS
1) As the production is fast increasing, the energy conservation measures should be further improved.
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BIBLIOGRAPHY
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