Professional Documents
Culture Documents
AT
ROOTS INDUSTRIES INDIA LIMITED
COIMBATORE
SUMMER PROJECT
Submitted by
N.Selvakumar
COIMBATORE
JULY 2014
ACKNOWLEDGEMENT
I am writing this final evaluation report as part of the Summer Internship Program of
the MBA department.This report includes the analysis of Roots Industries India Limited,
Coimbatore.
It has been a great challenge but a plenty of learning and opportunities to gain huge
knowledge on the way writing this report. I express my sincere Thanks to Dr.K.Chitra , our
amazing Director MBA department, who seemed to be with us always; and prepared to give
us feedback and guidelines whenever we needed it.
I would also like to express my gratitude to G.Lalithakumari, faculty guide MBA
depertment for guiding me through out the project.
I Would also like to express my Gratitude to Mr.N.Sampath Kumar, Associate head,
training & development, Roots Industries India Ltd. I also Thank Mr.Kavidasan, Director,
Roots Industries India Ltd for recognizing my prescence during the training period.
I also express my sincere Gratitude to Mr.Balasubramaniam of Roots Industries
India Ltd, who guided me throughout the inplant training to visit the various departments
successfully.
I would also Thank all the staff-members of the Roots Industries India Ltd whom I
met in this time period for all the feedback and help which they provided to me.
CONTENT
S. No
Title
Page Number
Industry Overview
Company Profile
2.1
Roots Family
2.2
Mission
10
2.3
Vision
10
2.4
Organization Structure
11
2.5
Organization Chart
12
2.6
Ownership Pattern
13
2.7
Product Mix
13
2.8
Exports
14
2.9
Quality Policy
15
2.10
HR Policies
16
2.11
18
Functional Departments
22
3.1
22
3.2
Department of Marketing
26
3.3
29
3.4
31
3.5
32
3.6
Department of Production
33
4.1
Overview
37
4.2
Department Structure
39
4.3
39
4.4
40
4.5
Techniques Used
45
Conclusion
48
ORGANISASTION PROFILE
1. INTRODUCTION
The Automobile industry in India is the seventh largest in the world with an annual
production of over 2.6 million units in 2013. In 2013, India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is
expected to top the world in car volumes with approximately 611 million vehicles on the
nation's roads.
Following economic liberalization in India in 1991, the Indian automotive industry
has demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki
and Mahindra and Mahindra, expanded their domestic and international operations. India's
robust economic growth led to the further expansion of its domestic automobile market which
attracted significant India-specific investment by multinational automobile manufacturers. In
February 2013, monthly sales of passenger cars in India exceeded 100,000 units.
Embryonic automotive industry emerged in India in the 1940s. Following the
independence, in 1947, the Government of India and the private sector launched efforts to
create an automotive component manufacturing industry to supply to the automobile industry.
However, the growth was relatively slow in the 1950s and 1960s due to nationalization and
the license raj which hampered the Indian private sector. After 1970, the automotive industry
started to grow, but the growth was mainly driven by tractors, commercial vehicles and
scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market
ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated
joint ventures with Indian companies.
2. COMPANY PROFILE
Roots Industries India Ltd. is a leading manufacturer of HORNS in India and the 11th
largest Horn Manufacturing Company in the world. Headquartered in Coimbatore - India,
ROOTS has been a dominant player in the manufacture of Horns and other products like
Castings and Industrial Cleaning Machines. Since its establishment in 1970, ROOTS has had
a vision and commitment to produce and deliver quality products adhering to International
Standards.
With a strong innovative base and commitment to Quality, Roots Industries India
Limited has occupied a key position in both international and domestic market as suppliers to
leading OEMs and after market. Similar to products, Roots has leading edge over competitors
on strong quality system base. Now, RIL is the first Indian Company and first horn
manufacturing company in the world to get ISO/TS 16949 certification based on effective
implementation of QS 9000 and VDA 6.1 system requirement earlier. RIL has entered into
technical collaboration with Robert Bosch, SA to further enhance the technical competence.
Roots' vision is to become a world-class company manufacturing world-class product,
excelling in human relation.
Roots Industries India Ltd as ISO9001:2000 firm and the parent company
manufacture electric horns currently holding 60% of the Indian Market Share. They are
suppliers to leading automobile manufacturers such as Hindustan Motors, Premier
Automobiles, Telco, Bajaj, Mahindra and Mahindra, Maruthi Suzuki, Unofiat, Hyundai, Hero
Honda, LML Vespa etc., are also the exclusive suppliers of the special type horns to defence.
Their export market covers above 40 countries, which include United States, Japan, Germany,
Holland, far and Middle East, Latin American countries and South Africa, now the Roots has
expended and concentrated on industrial cleaning machines.
Roots Precision Products was established in 1987 to address the in-house tooling
needs of the diverse industries in Roots group. Owing to continuous improvement and
investment into better resources, the company has become self-sufficient. It is catering to the
needs of various industries. RPP acts as a one-stop solution for tooling and precision
machining. Specialized in design and manufacture of:
Press tools
Injection moulds
Die-casting dies
Jigs and fixtures
1)
2)
3)
4)
2.2. Mission
The mission of Roots has always been to locate and to mould exceptional leaders and
private with all the sincere effort that solid basics to extend organization solutions to
customers worldwide and there by enhance the Roots competitive advantage. The company
does so thought long team and deeply committed human relations based on the key values
like
Activity
focus,
Discipline,
Experience,
Innovation,
Integrity,
Introspection,
2.3.
Vision
2.4.
Organization Structure
Director Operations
Chief Marketing
Officer
Horn Divisions
2.5.
Organisation Chart
Vice President
Electro Plating
Metrology
Division
Roots Industries
(Malaysia) Sdn. Bhd
Director Operations
B. Bharathkumar
Roots Industries
India Limited
Roots Multiclean
Limited
Director
Vice President
S. Kavidasan
K. Guhan
2.6.
Roots Cast
Private Limited
Roots Polycraft
Chief Executive
Officer
O.A.
Balasubramaniam
Director Operations
K. Saravanasundaram
D. Sivaprakasam
Ownership Pattern
Board of Directors
Chairman
Company Secretary
Manager
Assistant Manager
Associates
The Roots Industries have a total paid up Shares of 4, 80,000 Equity Shares of 1 RM each.
2.7.
Product Mix
2.8. Exports
Roots Industries exports to more than 15 countries. Roots also supplies to Ford Motor
Company, North America. Original Equipment Manufacturers: - The horns manufactured by
Roots Industries Limited are employed as Original Equipment by a number of vehicle
manufacturers. It has Roots industries Malaysia Sdn. Bhd, Malaysia it has a separate
production unit over there. Roots Industries Exports to the following countries.
1) North America
2) Germany
3) UK
4) Trico
5) Zinser
6) South Africa
7) Canada
8) South Africa
9) Holland
10) Japan
11) Middle East Countries
Environment Policy
With due concern towards maintaining and improving the quality of life, Roots is
committed for sustainable development by minimizing pollution & concerning resources.
This will be achieved through continual improvement in Environment Awareness of
all employees & associates, Legal Compliance & objective towards Environmental
Protection.
2.10. HR Policies
Personal Culture
The management has been encouraging and promoting a very informal culture,
"Personal touch", sense of belonging, enabling employees to become involved and contribute
to the success of the company. The top management also conscientiously inculcates values in
the people.
Work Environment
Special and conscious efforts are directed towards house keeping of the highest order.
Renovation and modernization of office premises and office support systems are carried out
on an on going basis.
Training
Roots believe in systematic training for employees at all levels. As a part of the
Organizational Development efforts, training programmes are being conducted in-house, for
employees at all levels. In addition, staffs are also sponsored for need based training
programmes at leading Management Development Institutes.
Industries Limited has 3 operating Quality Circles having 24 members and some of them
have won awards at different conventions and competitions.
Through interaction with workmen in these sessions, a process of 2-way
communication has been initiated and valuable feedback has been received on worker
feelings, perception, problems and attitudes. Simultaneously management has communicated
the problems faced by them and the plans to overcome these problems.
2.11. Milestones
1970
1972
1984
1988
1990
1992
1992
Gmbh, Germany
Roots Industries Private Limited obtains the National Certification- ISI
1994
mark of quality
Production of floor cleaning equipment commences. Roots Industries
Private Limited wins American International Quality Award
1999
2000
Becomes the first horn manufacturer in Asia to obtain VDA 6.1 and the first
2000
2003
2003
Roots Industries LTD., upgraded its ISO/TS 16949 from 1999 version to
2004
2002 version
Roots Industries Limited(RIL) opens its 100% exclusive Export Oriented
Unit at their Horn Division, Thoppampatti, Coimbatore to cater the needs of
Ford, North America
2004
2004
2004
Kovilpalayam, Coimbatore
Roots Cast Private Limited(RCPL)
2004
Arugampalayam, Coimbatore
Roots Auto Products Private Limited(RAPPL) expands with its Machining
2004
2004
2005
9001:2000
Roots Industries Limited., is certified with MS 9000, a pre-requisite for Q1
2005
inaugurates
its
Unit
II
at
2005
These are the some companies which issue raw materials to the Roots Industries. And
also there are some more companies which collect some raw materials and produce the
product like Screw, Bolt and Trumplet. After producing those product it will again return to
the Roots Industries.
FUNCTIONAL DEARTMENTS
3. Functional Departments
1)
2)
3)
4)
5)
6)
7)
Human Resource
Finance
Information Technology
Marketing
Quality Engineering
Sales
Quality System
Department Structure
Head- Corporate HRD
AssociateSecurity
Associate Head
AssociateRecruitment
AssociateTransport & PR
Associate Head
Training &
Development
Associate HRD
RIL-CD
AssociateStatutory
Compliance
Associate HRD
Associate HRD
Associate HRD
RCPL-I, RPP
RMCL
Associate House
Keeping
Associate HRD
Associate Front
Office &
Communication
RIL-HD
RCPL-II,
Associate Training
QS & Secretarial
Assistance
Associate
Duties & Responsibilities
Communication
Receptionist
Telephone
Operators
Recruitment
Employee recruitment forms a major part of an organization's overall resourcing
strategies, which identify and secure people needed for the organization to survive and
succeed in the short to medium-term. Recruitment activities need to be responsive to the everincreasingly competitive market to secure suitably qualified and capable recruits at all levels.
Application Blank
Paper Advertisement
Campus Interview
Internal and External Sources
Manpower Consultants
Age
Communication Skills
Physical Stamina
Leadership Skills
Social & Human Relation Skills
Formal Education
Technical Education
Practical/Previous Experience
Social Status
Suitability to the post
Selection
Promotion
It is based on organisational needs
It is based on skills required
Communication Skills
Managerial Skills
Experience and knowledge about the work
Interpersonal Skills
Performance Appraisal
In order to improve performance on-the-job training / off-the-job, performance
improvement trainings are given. They help to improve potentiality and resources, to meet
future needs of the organisation also. In order to know training needs, performance appraisal
is done by reporting officer manually and analysed. The analysis identifies the workers who
need training then the training programs are organised. After completion of training the
concerned department head observes the worker, and gives the feedback after 3 months and
not less than 6 months. After the evaluation the Head-Corporate HRD will initiate them for
retaining if needed.
Performance Appraisal is done a all levels (Executives, Staff, Workers, Trainees and
Apprentices),
Periodical Appraisal
Reporting Officers
Head of Departments
HRD Intervention
Implementation
These are the procedures and the other type of appraisals
Department Structure
Chief Marketing
Officer
Marketing Manager
Assistant
Manager
Associates
Assistants
Functions
Procuring orders & ensuring that we have the capability to do things as
committed to the customers.
Preparing requirement plan and forwarding to production planning and control
department
Despatching the finished goods through the mode of transport as agreed in the
contract
Managerial Skills
Communication Skills
Interpersonal Skills
Good Social Relations with Employees and customers
Market Segmentation
In Roots Industries the market is segmented as Industrial and Institutional. The
following shows the market segmentation of this industry.
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Market Segmentation
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Public Sector
Government Agencies
Civic Bodies
Defence
Installation
Institutional
Hotels
Hospital
Airports
Railways Station
Road Transport
Ports
Competitors
The Competitors for this company are in a world level.
Competitors
Local
International
Karcher- Germany
Santoni
Delstar, TPS
Hafi- Electra
RCM- Italy
Department Structure
Information Technology
Head
Manager- IT
Manager- IT
(SAP)
(RIM)
Associates
Associates
Assistance
Assistance
Functions
Inventory.
Backups will be taken daily, weekly, monthly, half yearly and annually to
avoid the corruption to the software.
Software Used
a) ERP
b) SAP- System Application Software
c) RIMS Roots Integrated Management System
Before using SAP Software Roots Industries had used MRP 9000 Software. It is
RIMS are used in Roots Multiclean, Roots Polycraft, Roots Cast and Roots Precision
Industries.
Managerial Skills
Leadership Skills
Communication Skills
Domain Knowledge about the VB.NET, SQL SERVER, SGR, QGR, MM and
DOT NET.
For Employees
Employees in this department want to have certain skills. In this department they were
using both SAP and RIMS Soft wares.
3.4.
Quality System personnel are equipped with necessary skills to implement a system
and its maintenance. Functions are,
implemented.
Developing the subcontractors quality system.
Department Structure
Head- Quality
System
Assistant Manager
3.5.
Associate
Head
Associate
Head
Assistants
Assistants
Department Structure
Department Head
Manager- Quality
Engineering
Manager- Quality
Assurance
Associates
Associates
Assistance
Assistance
Functions
to initiate action.
Analysing of customer returned goods/customer complaints
Providing input to product engineering for DFMEA and to manufacturing
3.6.
Department of Production
The production management team (often consisting of a production manager and any
number of assistants) is responsible for co-ordinating the various sub-disciplines
(scenic, wardrobe, lighting, sound, etc.) of any large theatrical presentation, as well as
overseeing the stage management team.
The production manager is the highest ranking person on the production staff and
answers directing to the general manager and or/artistic director.
The production manager's job is rather fluid, however, and may also include just about
anything an enterprising producer or director may dream up.
The production manager's job is mainly supervisory, although it requires excellent
'people skills' in order to smooth over disagreements that inevitably arise.
Department Structure
Head- Production/
Director
Horn Division
Roots Polycraft
Roots Cast
Coil Winding
Associates Head
Associates- Head
Press Shop
Assistance/
Operators
Assistance/
Operators
Application
Inspection
DEPARTMENT OF
FINANCE&ACCOUNTS
Finance Director
V.P. Finance
Associate Head
Finance
a)
b)
c)
d)
4.3.
Associate -1
Associate-2
Associate-3
Associate-4
Functions
Associate Head
Finance
a)
b)
c)
d)
Associate-1
Associate-2
Associate-3
Associate-4
All Banking action like Letter of Credit, Money Transaction and Normal Banking
activities are controlled and functioned.
In case of Long Term Expansion the Finance Department helps the organisation in
arranging a Term Loan.
The creditors payment are calculated and issued to them within the 60 days after
the material purchased.
The Collection from the Debtors are calculated and collected within the 60 days
from the date which material issued to them.
Duties like Central Excise, Sales & Income Tax and Insurance are calculated and
issued to the Government at the proper time and date.
Custody and safeguarding of Securities, Insurance Policies and other Valuable
Papers.
Taking care of the mechanical details of new outside financing
Record keeping and reporting
4.4.
Finance Manager is on of the members of the top management team, and his or
her role, day-by-day, is becoming more pervasive, intensive and significant in
solving the complex funds management problems.
The finance manager is now responsible for shaping the fortunes of the enterprise,
and is involved in the most vital decision of the allocation of capital.
The finance manager must have a clear understanding and a strong grasp of the
nature and scope of the finance functions.
The Finance Manager must realise that his action have far-reaching consequences
for the firm because they influence the size, profitability, growth, risk and survival
of the firm, and as a consequence, affect overall value of the firm.
4.5.
The companys financial risk management policy seeks to ensure that adequate
financial resources are available for the development of the Companys Business whilst
managing its risks. The company operates within clearly defined guidelines that are approved
by the Board and the Company Policy is not engage in the speculative transactions.
The main area of financial risk faced by the company and the policy in respect of the
major areas of treasury activity are set out as follows,
The company is exposed to foreign currency risk as a result of its normal trading
activities where the currency denominations differ from the local currency, Ringgit Malaysia
(RM
b) Credit Risk
The credit risk is controlled by monitoring procedures and by internal credit review
where credit risk is material.
Accounting Policies
1) Basis of Accounting
The financial statements of the Company have been prepared under the historical cost
convention, unless otherwise indicated
2) Revenue Recognition
Revenue is recognised on invoiced sale of goods;
Renovation
- 10%
4) Inventories
Inventories comprising raw materials, work- in- progress and finished goods are
stated at the lower of cost and net realisable value.
Cost is determined on a First- in- First- Out basis. Cost of finished goods and workin- progress includes the cost of raw materials, direct labour and an appropriate proportion of
production and other overheads.
6) Trade Receivables
Trade receivables are carried at anticipated realisable value. Bad Debts are written off
in the period in which they are identified. An estimate is made for doubtful debts based on a
review of all outstanding amount at the period end.
7) Related Parties
Related parties refer to person connected to the directors and/or shareholders of the
Company, and companies in which the directors and/or shareholders or persons connected to
the said directors and/or shareholders have substantial equity interest.
8) Provisions
Provisions are recognised when the company has a present legal and constructive
obligation as a result of past events, when it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation, and when a reliable
estimate can be made of the amount of the obligation.
9) Financial Instruments
Financial Instruments carried on the balance sheet include cash and bank balances,
trade and other receivables and payables and borrowings. The accounting policies on
recognition and measurement of these items are disclosed in the individual accounting
policies with each item.
Financial Instruments are classified as liabilities or equity in accordance with the
substance of the respective contractual arrangements. Interest, Dividends, Gains and losses
relating to a financial instrument classified as a liability, are reported as expense or income.
Distributions to holders of financial instruments classified as equity are charged directly to
equity. Financial instruments are offset when the Company has a legally enforceable right to
offset and intends to settle either on a net basis or to realise the asset and settle the liability
simultaneously.
10) Foreign Currency transactions and balances
Transactions in foreign currencies are recorded in Ringgit Malaysia at rates of
exchange ruling at the time of the transactions. Foreign Currency monetary assets and
liabilities are translated at the exchange rate ruling at the balance sheet date.
transaction which is not a business combination and at the time of the transaction, affects
neither accounting profit nor taxable profit.
Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply to the period when the assets are realised or the liabilities are settled. The carrying
amount of a deferred tax asset is reviewed at each balance sheet date and is reduced to the
extent that it becomes probable that sufficient future taxable profit will be available.
Deferred tax is recognised in the income statement, except when it arises from a
transaction which is recognised directly in equity. In his case the deferred tax is charged or
credited directly in equity. When the company deferred tax arises from a business
combination that is an acquisition, t is included in the resulting goodwill or negative
goodwill.
12)Employee Benefits
Short Term Benefits
Wages, Salaries, Bonuses and Social Security contributions are recognised as an
expense in the year in which the associated services are rendered by employees of the
Company. Short Term accumulating compensated absences such as paid annual leave are
recognised when services are rendered by employees that increase their entitlement to future
compensated absences, and shot term non- accumulating compensated absences such as sick
leave are recognised when the absences occur.
Other Employees
Working and subject Knowledge
Interpersonal Skills
4.6.
Techniques Used
a) Capital Structure
In finance, capital structure refers to the way a corporation finances its assets
through some combination of equity, debt, or hybrid securities. A firm's capital structure is
then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion
in equity and $80 billion in debt is said to be 20% equity-financed and 80% debt-financed.
The firm's ratio of debt to total financing, 80% in this example is referred to as the firm's
leverage. In reality, capital structure may be highly complex and include tens of sources.
Gearing Ratio is the proportion of the capital employed of the firm which come from outside
of the business finance, e.g. by taking a short term loan etc.
Leverage
In finance, leverage is a general term for any technique to multiply gains and
losses. Common ways to attain leverage are borrowing money, buying fixed assets and using
derivatives. Important examples are: A public corporation may leverage its equity by
borrowing money. The more it borrows, the less equity capital it needs, so any profits or
losses are shared among a smaller base and are proportionately larger as a result.
Operating leverage is an attempt to estimate the percentage change in operating
income (earnings before interest and taxes or EBIT) for a one percent change in
revenue.
Financial leverage tries to estimate the percentage change in net income for a one
percent change in operating income.
The product of the two is called Total leverage, and estimates the percentage
change in net income for a one percent change in revenue.
This technique is mostly used at the time of annual report preparation. Capital
Structure technique is helps in calculating the leverage values and to calculate the Earning per
Share Amount it is used. In Roots Industries they were using this technique for those
purposes. It benefits the company to identify their Share value in the market.
b) Capital Budgeting
Capital budgeting (or investment appraisal) is the planning process used to determine
whether a firm's long term investments such as new machinery, replacement machinery, new
plants, new products, and research development projects are worth pursuing. It is budget for
major capital, or investment, expenditures. Many formal methods are used in capital
budgeting, including the techniques such as
Accounting rate of return
Net present value
Profitability index
Internal rate of return
Modified internal rate of return
Equivalent annuity
These methods use the incremental cash flows from each potential investment, or
project Techniques based on accounting earnings and accounting rules are sometimes used though economists consider this to be improper - such as the accounting rate of return, and
"return on investment." Simplified and hybrid methods are used as well, such as payback
period and discounted payback period.
In Roots Industries the Capital Budgeting technique is used at the time of new project
development only. This technique helps them to identify the Payback Period, Rate of Return
and to calculate the Net Present Value this type of technique is mostly used.
c) Dividend Policy
5. Conclusion
The inplant training is an essential academic requirement for all graduate
students.The training that I have under gone have helped me in fetching practical
knowledge about overall functioning of the organization.
Roots Industries India Limited is an Indian company which competes with
various international companies like RCM-Italy, Karcher- Germay and Nilfisk ForbesDenmark. Thus the company plays an vital role for the development of our country. Thus
the Roots Industries wants to starts various branches and Production plant in various
countries across the world. Through that it can become a leading Horn Manufacturing
company and also it want to create more employment opportunities for the coming
generation.