Professional Documents
Culture Documents
Report
By
Madhurh Malhotra (PGDM)
Work carried out at Cholamandalam Investment and
Finance Company Limited, Chennai
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Signature:
Date:
Name:
Place:
Designation:
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at M/S____________________________________________________
located at _________________ from _______________ to
______________ to partially fulfil the requirements of the PGDM
program under my guidance.
Signature:
Date:
Name:
Designation:
Indian Institute for Management Development, Bangalore
Institutional Stamp
PGDM: 11028
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Acknowledgement
I take the opportunity to express my deep gratitude to Mr.
Kumaresh (Assistant Vice President-HR) for giving me an
opportunity to do my internship at Cholamandalam Investment
and Finance Company Limited belonging to the Murugappa
Group.
I am thankful to Major Pradeep Kumar Menon (Assistant vice
President and Head of Infrastructure, Cholamandalam) for
letting me do a Finance project in the Project Infrastructure
department and my sincere appreciation to his team members:
Mr M.A.Kattiresan, Mr V.Srinivasan, Mr. Anbarasan, Mr
Balachander,
Mr
Ramesh,
Mr
Shivanesan
and
Mr
Anandhaprabhu for their continuous guidance and providing me
immensely valuable inputs.
I am also thankful to Mr Sundar P (Sr. Manager-Marketing
Communication) and Mr Vignesh Murali (Manager-Business
Development and Marketing) for letting me do a Marketing
project in the field of Integrated Marketing Solutions.
Sincere appreciation is extended to Dr Mousumi Sengupta, the
internal faculty guide of IMD, for providing me with necessary
guidance for efficient execution of the project.
This opportunity was a great learning experience, which would
not have been possible without the support from the
management of IMD and I am indebted to them.
Vishal Malhotra
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Executive Summary
Dissertation Title: Cost Effective setting up and Branding
Branches of Chola
Supervisors: -------------------------Name: Vishal Malhotra
PGDM No: -----------Cholamandalam Investment & Finance Company Limited
(CIFCL) provides financial services that include vehicle finance,
corporate finance, home equity loans, stock broking and
distribution of financial products to its customers.
The Infrastructure Department of CIFCL is in charge of all the
structuring of the existing and new branches by taking
responsibility of preparing the necessary legal documents
related to the property and also providing the necessary assets
via requests from respective branch managers. The department
is responsible for preparing the required Comparison
Statements and the Capital Expenditure Proposals and then
forwarding the proposals to the Finance Department and the
Chief Financial Officer (CFO) for their approval.
The Integrated Marketing Solutions is to do with how various
marketing methodologies are implied round the clock that a
customer experiences in his/her day to day life and gets
attracted
towards
the
brand
being
marketed.
The
methodologies including the various forms of media,
telecommunication companies, billboards and so on.
Signature of the Student
Vishal Malhotra
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Contents
Acknowledgement.....................................................................5
Executive Summary................................................................... 6
List of Abbreviations Used:........................................................7
Chapter 1 Introduction............................................................10
1.1 Brief Profile of the Head of the Company........................10
1.2 Major Companies............................................................12
1.3 Brief Profile about CIFCL..................................................13
1.4 Journey of Chola..............................................................15
1.5 Values and Beliefs...........................................................16
1.6 Products of CIFCL............................................................17
Chapter 2 Stages for setting up a Branch................................20
2.1 Stage 1- Identification of Branch and Documents...........20
2.2 Stage 2- Scrutinising and Forwarding of Documents.......21
2.3 Stage 3- Role of Financial Analyst...................................22
2.4 Stage 4 Security Deposit and Rent Allocation...............23
2.5 Stage 5- Opening of Branch............................................23
Chapter 3 Capital Requirements of a Branch...........................24
3.1 Introduction..................................................................... 24
3.2 Templates Used...............................................................25
a) Comparison Statement...................................................25
b) Capital Expenditure Proposal..........................................27
c) Purchase Order...............................................................30
Chapter 4 Financial Performance and Analysis........................33
4.1 Performance Highlights 2011-2012.................................33
a) Disbursements of Chola..................................................34
b) Asset Under Management (AUM) of Chola......................35
c) Networth of Chola...........................................................36
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Chapter 1 Introduction
1.1 Brief Profile of the Head of the Company
Cholamandalam Investment and Finance Company Limited
(CIFCL) belong to the Murugappa Group.
Headquartered in Chennai, the Rs. 22314 crores (USD 4.4
billion as on March 31, 2012) Murugappa Group is one of India's
leading business conglomerates. Market leaders in diverse
areas of business including Engineering, Abrasives, Finance,
General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers,
Plantations, Bio-products and Nutraceuticals, its 28 businesses
have manufacturing facilities spread across 13 states in India.
The organization fosters an environment of professionalism and
has a workforce of over 32,000 employees. The Group has
forged strong joint venture alliances with leading international
companies like Mitsui Sumitomo, Foskor, Cargill and Groupe
Chimique Tunisien has consolidated its status as one of the
fastest growing diversified business houses in India.
The group is a market leader in India across a spectrum of
products like fertilisers, abrasives, automotive chains, car door
frames and steel tubes. Neemazal, a neem-based organic
pesticide, is the market leader in bio-pesticides. Some of the
country's best-known brands like BSA and Hercules in bicycles,
Parrys Spirulina and Parrys Beta Carotene in nutraceuticals,
Ballmaster and Ajax in abrasives, Gromor and Paramfos in
fertilisers, and many more come from the Murugappa Group.
Its companies have tie-ups with Wendt gmbh of Germany,
Morgan Crucible Company plc of the UK, the China Engineering
and Exploration Bureau (CEEB), Cerdak Pty Ltd of South Africa,
Mitsui Tsumitomo Insurance Company Ltd of Japan, Borg Warner
Morsetec of USA, Foskor Ltd of South Africa, Groupe Chimique
Tunisien of Tunisia, and Cargill International SA of Geneva.
The group has grown consistently through its decisive and
visionary response to changing times. Its pioneering efforts,
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guiding
the
Murugappa
Group
and
its
INTEGRITY
We value professional and personal integrity above all
else. We achieve our goals by being honest and
straightforward with all our stakeholders. We earn trust
with every action, every minute of every day.
PASSION
We play to win. We have a healthy desire to stretch, to
achieve personal goals and accelerate business growth.
We strive constantly to improve and be energetic in
everything that we do.
QUALITY
We take ownership of our work. We unfailingly meet high
standards of quality in both what we do and the way we
do it. We take pride in excellence.
RESPECT
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b.
c.
d.
e.
f.
g.
Partition Deed
Deed of Settlement
Will
Court order
Ownership Certificate issued by Govt./Authority
Such other valid documents
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Reviewed by
Brand Name
MM Fire
Safety
Equipments
Seven
Hills Fire
and
Safety
Canex
Industry
Safety First
Vintex
Vintex
142
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Cost of Rs
Rs. 200/for
southern
states Rs.
300/other
states
extra
Rs. 346/-
Immediate
within 15
days
within 10 days
Through Local
Transport
Through
Courier
Through
Registered
Parcel
Against
Delivery
After
delivery
Against invoice
after dispatch of
Materials
5 years
2 years
5 years
Supply Area
Pan India
Pan India
Weight in Kg
14609
14609
14609
30
30
30
Shipment Cost
per Branch
Delivery
Period
Delivery
Payment
Warranty
IS MAP
Mono
Ammonium
Phosphate
Recommendation:
We can go with M/s Canex as their price is less than the other
two vendors for the same specifications.
Also M/s Canex will deliver the Fire Extinguishers through
Registered Parcel. Thus the delivery will be fast and also safety
will be ensured.
_____________
__________________
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Manager
(AVP &Head Infra)
removed
since
they
are
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(i) Contingency
A contingency of 5% is maintained by the organization while
preparing the CAPEX statement due to the difference in days
for getting the quotation and executing the same as per the
requirement
of
a
branch.
There is a possibility that the prices may go up and thus to be
on a safer side, the 5 % contingency plays a cover up role to
overcome such circumstances.
c) Purchase Order
A Purchase Order (PO) is prepared once the sanction is received
from the MD for the amount to be spent as per the branch
requirement on the Assets or the Branch requirement. The
purchase order needs to be sent to the vendor from whom the
assets are to be purchased. The vendor dispatches the goods to
the consignee after the payment terms are sought.
The following is a purchase order issued by the organization:
NOTE: The prices have been
confidential to the organization.
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removed
since
they
are
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1.
This Purchase / Works shall be valid for the period mentioned in the order, unless amended in writing or extended through
written communication.
2.
The goods as per the Purchase / Works shall be new, standard, off-the-shelf items of merchantable quality unless they are
made-to-order as per specifications laid down in the Purchase / Works and any amendments thereof in writing. It shall be
the responsibility of the Supplier to ensure that the purchase has been properly authorised on behalf of the Purchaser.
3.
The Price Stated on the face of the Purchase / Works Order is inclusive of all taxes and duties, present and future as
applicable to the transaction unless mentioned otherwise.
4.
The Price stated on the Purchase / Works Order is inclusive of cost of goods ordered, insurance, packing, and forwarding
and freight, unless specifically stated otherwise. Transit insurance, as applicable shall be the sole responsibility of the
Supplier.
5.
It shall be a term of this purchase that the goods ordered shall be delivered at the site address provided in the order
unless otherwise stated.
6.
The goods shall be supplied as per the delivery schedule stated on the Order. In case of non-delivery of the goods, for
whatever reason, the Purchaser shall be at liberty to recover penalty of such amount as may be suffered due to the nonsupply or delay in supply of the goods within the delivery schedule.
7.
The Purchaser reserves the right to cancel the Purchase / Works in case the Supplier does not meet the stated delivery
schedule or for any other reason the Purchaser deems proper.
8.
Installation and Commissioning of the goods shall be done as per the instructions of the Purchaser and any delay or loss
arising there from shall be the sole responsibility of the Supplier.
9.
Payment in terms of the Purchase / Works Order shall be made only after satisfactory installation and commissioning of
the goods and where necessary, testing / verification / approval of the goods by the Purchasers engineers / consultants /
authorized representatives.
10. All payments shall be made only by way of cheques favouring the supplier or his authorized banker, as the case may be.
In the normal course, cheques are processed for payment only within twenty-one days of receipt of all relevant documents
after satisfactory installation / commissioning, as the case may be.
11. WARRANTY: The Supplier shall warrant satisfactory performance of the goods in strict compliance with the specifications
given by the Purchaser for a period specified in the Purchase / Works Order. All defects arising out of faulty design,
manufacturing, workmanship, process, inferior material etc. shall be the sole responsibility of the Supplier. The Purchaser
shall have the unconditional right to reject the goods and cancel the Purchase / Works in the event of supply of goods of
quality, which is not acceptable to the Purchaser. The Purchaser shall also have the right to demand rectification / repair of
the goods, wherever he deems fit, at his own option, from the Supplier, at no extra cost, expense or time for ensuring that
the goods satisfy the desired need of the Purchaser. The Purchaser reserves the right to demand indemnity, liquidated
damages etc. of such amount as may be deemed appropriate by the Purchaser in case of any failure, non-performance,
non-commissioning etc. in relation to the goods.
12. Time is of essence to this Purchase / Works and all time lines stated in the Purchase / Works are to be strictly complied
with.
13. The Purchaser has a right to demand Pre-Delivery Inspection either at the premises of the Supplier or at the premises of
his sub-contractor, as the case may be and this shall be a strict condition prior to acceptance of the goods ordered.
14. Neither the Purchaser nor the Supplier shall be liable to meet the obligations under this Purchase / Works due to Force
Majeure.
15. The Supplier shall maintain strict confidentiality of the terms of this Purchase / Works as well as any details of the
Purchaser that he may come to know in the course of transaction.
16. Any non-standard term or condition shall not be applicable to this Purchase / Works unless specifically agreed to in writing
in this Purchase / Works.
17. In case of any dispute or differences, the matter shall be referred to arbitration under the Arbitration and Conciliation Act,
1996.
18. The jurisdiction for the purpose of this Purchase / Works shall be at CHENNAI.
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90000
15281
80000
70000
60000
50000
3180
541
40000
21260
30000
12346
Home Equity
5010
44961
8410
20000
Gold Loan
Personal Loan
Vehicle Finance
28613
25250
10000
73064
10044
15020
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300000
250000
134620
200000
Total
150000
100000
50000
91242
70710
60328
17128
53582
16760
43568
Assigned
12208
On Book
68505
7630
122412
16908
83612
51597
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
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c) Networth of Chola
Networth
16000
14000
12000
10000
Networth
8000
14327
6000
10720
4000
2000
7810
7850
5586
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
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PAT
2000
1800
1600
1400
1200
PAT
1000
1725
800
600
400
200
594
622
427
154
0
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
The Profit After Tax of Chola has increased drastically in the last
financial year due to the decrease in the provision and loan
losses. This has been possible due to the revised guidelines in
the Securitization transactions during September 2011.
The major slump was during the year 2009- 2010 due to the
recession and the falling stock markets. However there was a
drastic growth in the year 2010-2011 with an increase of 304%
when the economy started doing well and recovering. In the
last financial year there was a growth of 177%.
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73064
44961
28610
25250
15020
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250000
200000
150000
98395
Total
Assigned
On Book
100000
60115
50000
33310
39130
2683
30600
7753
13218
10226
20092
20374
9854
88541
57432
31377
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
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etc.
The On Book amount denotes the brought forward amounts of
the previous year whereas the Assigned amount refers to the
Disbursements net of Run downs. Run Downs refer to the
repayment
of
loans
by
the
customers.
There has been a consistent growth in the Asset Under
Management (AUM) of Chola since the year 2008-2009. There is
an increase of 54% in the year 2010-2011 and an increase of
64% in the year 2011-2012 in the business of Chola AUM.
c) Income of Chola VF
Income
16000
14000
12000
10000
8000
6000
4000
2000
0
13340
8815
4230
5240
5800
Income
There has been a growth rate of 51% in the last financial year
due to the increase in business of Chola.
d) Profit Before Tax of Chola VF
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2500
1873
2000
1500
1000
500
740
380
The Profit Before Tax (PBT) has had a growth of 28% in the last
financial year as compared to 153% in the year before that.
4.4 Overview of Chola Vehicle Finance Position to
Industry
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4.5 Borrowings
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customer service, store design, direct marketing, word-ofmouth marketing, the internet, after-sales service, new media
etc.
2. More specialized media. It used to be that mass media
was enough to cover any advertisers needs. But with everincreasing ad clutter, shorter attention spans and greater
resistance to advertising, customers now tend to be a lot more
selective: they shut out the stuff they feel they dont need, and
go with the stuff that they want.
So media now tends to zero in on a particular niche market: you
now have a cable channel just for kids- 24/7; totally unheard of
few years back. There are magazines that cater to
entrepreneurs, pet owners, budget travellers, mothers and
sports fans.
Recently, weve seen even more specialized media: there are
podcasts now that talk about starting up a successful small
business, viral video clips of cats, and blogs on cheap hotels
and resorts in the Asia-Pacific.
3. More than ever, customers are king. The power has
shifted from the manufacturers (those who make a product) to
the retailers (those who actually sell the product). It is known:
its easier to keep an existing customer happy than it is to win
back a customer you lost. Retailers now place greater
emphasis on protecting their clientele- and take great pains in
whipping up the best possible experience for their patronsbefore, during and after the sale.
4. Marketing in now more data-based. When a client blows
US$10 million on a local TV ad campaign, does it know exactly
how many people watched his ad? Out of those who did see
the ad, how many of them actually remembered it was all
about? And of those who did manage to remember what it was
about, how many answered the call to action?
More advertisers are reluctant to shell out wads of cash for
media buy- and rightly so. How do you know youre getting
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d) Medium of Communication
Attractive billboards and posters on various food and tea
stalls on highways to attract the vision of truck drivers.
Distribution of mini pamphlets/cards at toll gates.
Visit of volunteers to the customers office and engage
directly to make them aware.
Advertisement in local newspapers to attract owners of the
commercial vehicles.
e) Justification
Volunteers should be appointed by Chola in both urban and
rural areas to interact with the customers in the field of
commercial vehicles.
The customers should be made aware of the existence and
schemes of Chola VF.
The volunteers visiting should have a list of existing and
satisfied customers and the same should be shared to the
prospective customers.
The owners of the commercial vehicles would definitely be
looking for advertisements in newspapers for VF and
expansion of business, thus an ad in the newspaper could
be effective.
By distributing mini pamphlets/cards of Chola VF at the toll
gate, there is every possibility for the truck driver to glance
through it and communicate the same to its owners.
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Weakness:
With the size and performance of the group, the focus on
PR quotient is low.
Despite being strong in south, the awareness in north
region is less.
Under utilization of the brand name that Murugappa Group
has in terms of capturing the market.
Opportunities:
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