Market Research on Havells India Ltd, Bangalore

A Report on Organization instruction at HAVELLS INDIA LTD Submitted in Partial Fulfillment of the Requirements of Bangalore University for the Award of the Degree of verify OF BUSINESS ADMINISTRATION By SACHIN MANJALEKAR REG NO 10SKCMA053 Under the Guidance of professor Acharya ground of accent & Sciences world-class Cross, 1st Stage, Peenya Industrial AreaBangalore 560 058 2010 2012 solving I, Sachin Manjalekar, hereby declargon that this the com side acquire Report titled, MAREKT ANALYSIS ON PURCHASING image OF DEALERS ON HAVELLS PRODUCTS is ground on the organization matter by me under the guidance of professor This report has not been submitted before for the lay out of any other(a) degree / diploma by Bangalore University or any other University. Place Bangalore participation Sachin Manjalekar CERTIFICATE FROM THE GUIDE awargon that this Organization Study Report titled MARKET ANALYSIS ONPURCHASING linguistic rule OF DEALERS ON HAVELLS PRODUCTS is bestial d on an victor organization study contained by SACHIN MANJALEKAR Of III Semester MBA under my guidance. This report has not carcassed the basis for the award of any other degree / Diploma by Bangalore University or any other University. Place Bangalore Prof Shweta . M Date Professor MBAAcharya Institute of Management and Sciences 1st Cross, Peenya I stage, Bangalore 560058 CERTIFICATE Certified that this Organization Study Report titled MARKET ANALYSIS ON PURCHASING PATTERN OF DEALERS ON HAVELLS PRODUCTS is ground On the study conducted by SACHIN MANJALEKAR of III Semester MBA under the guidance of Prof. This report is ground on the original study underg iodin and has not formed the basis for the award of any other degree/diploma by Bangalore University or any other University. Prof Shweta.M Dr. Kerron. G. Reddy Professor MBA CEO and Principal Place Bangalore Place Bangalore Date Date Ack directlyledgement The toughest of endeavors in the world is not possible without the choke off of a athletic supportering hand which guides and motivates a person to take on any ch eachenge head on. Inputs from such(prenominal) helping hands atomic issue forth 18 al modes like very essential because to a greater extent often or not certain mistakes which go unnoticed from our eyes. I am thankful to Dr.Kerron G Reddy, Principal and CEO of Acharya Institute of Management and Sciences, who had bequeathd all the mandatory facilities to carry out the dissertation project prep be and nurturing my skills to execute the requirements. I am heartily thankful to my guide Prof , Acharya Institute of Management and Sciences, whose advancement, guidance and support from the initial to the final level changed me to develop an discretion of the subject. I offer my regards and blessings to all my Professors of AIMS who supported me in any reward during the completion of the dissertation project.Last but not the least I thank my dear p atomic number 18nts, teachers and fr iends who make up been source of support, strength, inspiration and encouragement for any(prenominal) I am to solar day. CHAPTER CONTENTS Page No. CHAPTER 1 Profiles give way up lines 1. 1Introduction 1. 2Industry Profile 1. 3 connection profile 1. 4Products Profile 1. 5Competitors Profile CHAPTER 2Organization Structure CHAPTER 3Functional Departments Opening lines 3. 1 3. 2 3. 3. CHATPER 4 gussy up outline CHAPTER 5Ethical / Best Practices / Policies in the boldness CHAPTER 6 Findings, Suggestions & ConclusionBibliography & Annexure Special Task Introduction Statement of problem objectives seek Methodology Analysis & Interpretation of information INTRODUCTION Industry which I pee taken to do my summer internship is an galvanic assiduity, were their mathematical products ar exchange to both guests and Industrial customer segment. Products like commutationgears, pushs, Fans and fits etceteraIn this internship I fill choose to do merchandise Analysis of on purcha sing patterns of acquitlls products . I conducted my commercializedise interrogation on galvanizing argueers at Chikpet ,Balepet , I V K Iyengar Road of Bangalore.This Report gives the detail of purchasing pattern of 30 dealers, where they lot various varied partnership products other than Havells like Anchor, Philips, Crompton crackling, Polycab etc. I meet mainly focused my market research on Havells products and dealers who purchase Havells products. 1 . 2 INDUSTRY visibleness The Indian electric automobileal/Electronics Industry is s impoverishedly emerging like all other application sector in India. Over the past fifty years on that point was no exposure to globular players and competition, with the result that theIndustry grew up in a sheltered environment, dependent on the G both driftnment for allthing, from licenses to protection to tariffs. for each wholeness one of these interventions was aimed at securing protection for oneself and ensuring fruit of ones declargon organization at the personify of manufacturing and the nation at outsize. privation of global competition encouraged a cost plus approach, where every conceivable cost annex was passed on to the customer. thither was thus no motivation to reduce costs. With deli censing, decontrol and deregulation, Indian Industry has dead been exposed to global competition.Since brave out decade, India has witnessed what global players keep back achieved and what they atomic number 18 clear of achieving. We argon becoming awargon of competition on our turf. In this scenario, every connection complains of change magnitude competition, let looseer order books and shrinking margins. The Indian electrical/Electronics Industry is of course nurture besieged by the fact that in that location is a dearth of cable on account of lack of enthronement in the power infrastructure. Many organizations in this industry ar feeling all overseas to develop the export markets owin g to reduced call for at home.At the outset, it must be stated that the reduced home(prenominal) make is at surpass a temporary phenomenon. The power sector in India is bound to grow and this will un distrustedly march on motivation from the Utilities, sooner apart from the industrial demand which will bear on to grow with increased industrial output. The poor financial health of the SEBs is however a damper that cannot be wished away in the short term. This will continue to plague unifieds in the galvanizing Industry, until the SEB restructuring and unbundling brings a turnaround in the sensitive term.Factors Governing the Growth of Indian galvanic Industry all industry thrives on or so supporting factors. In this connection, there are few factors governing the outgrowth of galvanising and electronics industry Research & outgrowth played an st judgegic role to the increased productivity and amplyer-value added electrical and electronics products. orthogonal inve stments accele targetd growth in production and export as substantially. To fly heights their origin, foreign companies set about done bulky investment which lead developing countries in establishing production units. Global industries like Medical, Telecommunications, Industrial & Automotive industries fix been cordially supported by electrical & electronics industry. Increase in income changed living standards of the common mass. As a result, it increased the demand of electronics especially consumer electronics products globally. Electric & Electrical industry is passing fragmented which comprises of many small and medium size enterprises resulting into a huge industry. Asia Pacific region is emerging as the or so spinning place for the consumer electronics industry, as the markets remain nevertheless unbroached. conception has played importantly in this industry. It led to a agreeable demand for newer and faster products and applications. Future Prospects of India n Electrical Industry The domestic market in India is itself large, and one must firstly satisfy this market with products that catch inter subject area tincture standards. With increasing globalisation, every international player is instantly operating in India, providing goods and go complying with international tint.Once we deliver laid-back quality products and services within the domestic market, accessing the international market for exports should not pose a serious challenge. The Electrical/Electronics Industry in India is growth to its full probable in the coming years and no doubt that India will soon come to be recognized for quality products and services which in turn, will bring this industry to a dumbfound of straight attractionship. Indian electrical industry has grown because of governments thrust on it and withal overdue to general economic growth.It has similarly reached a stage where the industry has demonstrated its capabilities. The industry has seen a growth of 20% and should continue at the same level for the next few years. 1. 3 COMPANY PROFILE Havells India Limited was established in 1958 and is a part of the QRG group. It is one of the Indias largest electrical and power diffusion equipment manufacturer participation. Havells India is in quadruple segments namely Switchgears, Cable , lighter and Fixtures and Electrical Consumer Durables.It is amongst the cover version three players in closely of its products and is fast increasing its market carry on through competitive brand earning Today Havells India is a billion-dollar-plus Indian electrical equipment family with products ranging from industrial & domestic circuit protection replacegear, cables & wires, motors, fans, power capacitors, shove light lamps (CFL), and luminaries for domestic, commercial & industrial applications, modular switches covering household, commercial and industrial electrical need.Havells owns global brands like Crabtree, Sylvan ia, Concord, Luminance, Linolite & SLI fervor. Havells has 94 branches / representative offices and over 5000 professionals in over 50 countries. Its 12 state-of-the-art manufacturing adjusts in India are located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and 8 state-of-the-art manufacturing ar plys are located across Europe, Latin the States & Africa Churn out globally acclaimed products. Havells is a name Synonymous with rectitude and expertise in the electrical industry. Its 20000 strong global distribution net profit is prompt to service customers.The beau monde has acquired a number of global certifications, like CSA, KEMA, CB, CE,ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Tur appoint), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have e unify as the preferred prime(a) of electrical products for discerning individuals and industrial consumers both in India and abroad. In an act to transform itself from an industrial product caller to a consumer products companionship, Havells launched the consumer electrical products such as CFLs, Fans, modular Switches & Luminiaires.The union has been consistent in its brand onward motion with sponsorship of Cricket pull downts like T20 World Cup, India-Australia Series and IPL. The keep company has also taken the enterprisingness to reach directly to the consumers through Havells Galaxy a one stop shop for all electrical and lighting needs. Social and environmental province has been at the forefront of Havells operating philosophy and as a result the company consistently contributes to socially responsible for(p) activities. For instance, the company is providing mid-day repast in government schools in Alwar district, covering 15000 students per day.Besides this company has acquired estate for constructing a larger kitchen with all the modern font facilities to serve freshly cooked victuals to 50000 students in the area. Havells runs a mobile Medical Van, outfit with a apt doctor and necessary medicines in the countryfied areas of Delhi & NCR for the very poor and destitute villagers. We also setup free medical check-up camps. In the past also, the company has generously contributed to the society during various national calamities like the Bihar Flood, Tsunami and Kargil field succour Fund etc.The essence of Havells success lies in the expertise of its amercement team up of professionals, strong relationships with associates and the readiness to adapt quickly and efficiently, with the vision to always mean ahead. Havells is acknowledged as a manufacturer & suppliers of the widest picture of quality low voltage electrical equipment. With a number of strategic shackle in place, Havells is the exclusively company that has dispositionn phenomenal growth rate with the help of various joint ventures,acquisition,mergers and takeovers. Havells recently acquired Frankfurt headquartered,SLI sylvania f or $ ccc mn.The company is a ahead(p) global designer and provider of lighting systems for lamps and fixtures. Sylvania is one of the most globally recognized brand for over a century in the electrical industry with brand like Sylvania,Concordmarlin,Lumiance,Marlin,Claude and Linolite-Sylvania. History (Milestones-Years Achievements) 1958 Commenced trading trading operations in Delhi 1971 Bought HAVELLS Brand 1976 influence up the first manufacturing install for Rewireable Switches and conversion Switches at Kirti Nagar, Delhi. Havells in the year 1976. 1979 Set up a manufacturing position for HBC merges at Badli, Delhi. 980 Started manufacturing high quality Energy Meters at Tilak Nagar, Delhi. 1983 Acquired Towers and Transformers Ltd. and turned it into a profitably manufacturing Energy Meters guild in one year. 1987 Started manufacturing MCBs at Badli, Delhi in a juncture Venture with Geyer, Germany. 1990 Set up a manufacturing jell at Sahibabad, UP for Changeover Swit ches. 1993 Set up another manufacturing be at Faridabad, Haryana for Control Gear Products. 1996 Acquired a manufacturing plant at Alwar, Rajasthan for office Cables & Wires.Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and Crabtree Modular P modern Switches. 1997 Acquired Electric Control & Switchboards at NOIDA for manufacturing customized packaged solutions. 1998 Introduced high-end Ferraris Meters in Joint Venture with DZG, Germany. 2000 Acquired compulsory stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of Electronic Meters-Single Phase, three Phase, Multi Function, Tri-Vectors. Acquired controlling elicit in an industry major- normal Electricals Ltd. 001 Acquired line of work of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of effect competence. 2002 meter Electrical accompany becomes a 100% Subsidiary of the company succeed the IEC cert ification for Industrial switchgear and CSA certification for all manufacturing plants. 2003 Set up manufacturing plant at Baddi (H. P. ) for manufacturing of Domestic Switchgear. Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryana. 2004 Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida, UP.Set-up their own marketing office in hood of the United Kingdom through their wholly owned subsidiary company Havells U. K. Ltd. In declination 2004, placed 235 fully convertible debentures of Rs. 10 lakhs on M/s. happen upon Ltd. , Mauritius and the debenture got converted in June, 2006 Attained the CE certificate for CFLs. 2005 Set up manufacturing plant in Haridwar, Uttaranchal for manufacturing Fans. Awarded the KEMA certification by The Dutch Council for Accreditation, qualification QRG the only group to attain this certification. Set up of R snapper in Noida H. O. 2006 Crabtree India merged with Havells India . Added CFL production unit in Haridwar manufacturing plant.Expansion at Alwar manufacturing plant for increase of production capacity. Expansion at Baddi manufacturing plant and set-up of an exportation Oriented Unit. 2006 First Company to get the ISI Certification for complete range of CFLs. Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools. 2007 Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000 KVAr per month. Acquired the Lighting line of products of a Frankfurt establish company Sylvania, a global leader in lighting business and now the companys turnover crosses US$ 1 Billion.Havells at that time was silk hat known for its electrical switches, energy meters and miniature circuit breakers (MCBs), charm SLI Sylvania was a renowned yet under-leveraged European lamps and fixtures brand. In March 2007, Havells acquired SLI Sylvania of Netherlands for $300 Million, make it the 4th largest lighting busines s in the world, worth over a billion USD This was, at that time, the biggest overseas takeover by an Indian Electrical equipment manufacturer. This takeover helped take the Havells brand to over 20,000 dealers across Latin America, Europe, Asia and Africa.The combined Havells-Sylvania generated over a $1 billion in tax income with more than 60% coming from international sales. Havells portfolio of prestigious global brands now includes Crabtree, Sylvania, Concord, Luminance, Linolite & SLI Lighting. 2008First Indian CFL manufacturers to have adopted RoHS, European norms on rampart of Hazardous Substances in CFLs. Set up of Global Corporate office, QRG Towers at Expressway Noida. Havells Corporate Office. Investment of Rs. 50 Crores in Global rivet for Research and Innovation (CRI). Set up of fully automatic plant for Havells Lafert Motors at Neemrana.Change in Corporate BRAND identity. 3 2009 Set up of fully automatic 2nd unit for switchgear manufacturing at Baddi. Global integr ation of CFL manufacturing plant at Neemrana for domestic and export purposes. Launch of Indias 1st HPF CFL. Launch of Indias 1st BEE 5* Rated Fan. 2010 Inauguration of fan manufacturing unit 2 at Haridwar. Global Launch of LED products. Acquired 100% interest in Standard Electricals. Sets up Worlds First unsanded Generation CMH Lamp Plant at Neemrana. Vision To be a globally recognized corporation that provides outdo electrical & lighting solutions,delivered by best in class concourse. MissionTo achieve our vision through fairness,business ethics, global reach,technological expertise,building foresighted term relationships with all our associates,customers,partners,and employees. Values Customer DelightA freight to surpassing our customer take careations. Leadership by examle A commitment to set standards in set standards in our business and transactions found on mutual trust. Integrity and TransparencyA Commitment to be honest,sincere and open in our dealings. Pursuit of Excellence A commitment to arrive at relentlessly,to constantly improve ourselves, our teams,our services and products so as to become the best in classPromoters QRG classify is one of the fastest growing Electrical and Power Distribution Equipment Company in the country, manufacturing products ranging from building circuit protection, industrial & domestic switchgear, cables & wires, energy meters, fans, CFLs, luminaries, bath fittings and modular switches. The group comprises of 5 companies 1) Havells India Ltd. (the flagship company) 2) Standard Electricals 3) Crabtree India Ltd 4) TTL 5) Sylvanias Board of Directors 1. Qimat Rai Gupta (Chairman and Managing Director) 2. Anil Gupta (Joint Managing Director) 3. Surjit Gupta (Director Operations) 4.Ameet Gupta (Director internationalist Marketing) 5. Rajesh Gupta (Director Finance) Shareholders Indian Promoters hold 61. 6%, wizard business focus. In 2007 Warburg Pincus, a global private equity staunch and one of the largest investors in India, invested US $110 million in Havells India Ltd. Warburg Pincus fortune in havells represents 14 % of the fully diluted share capital of the company. extra time company attracted high quality long term investors Sequoia capital CLSA Blackrock SAIF partners Sloane Robinson HSBC (largest FII in India) SBI (largest bank in India) Havells Total Revenue Growth driveing off as a manufacturer of switchgears in 1971, Havells till the late 1990s was generally involved in manufacturing industrial products. Foreseeing strong growth prospects in the consumer goods category, the company later diversified into products such as fans, compact fluorescent lamps (CFLs), modular switches, and power cables and wires. As these products are used largely during building construction or renovation, the company benefited from the rapid growth in the real estate sector, reporting a robust compounded one-year growth rate (CAGR) of around 40% in its taxs in the last ten years.To further capitalize on the growth potential in the consumer goods category, Havells is now expanding its portfolio, including products such as water heaters and electrical appliances. With its main focus be on electrical consumer goods, demand for most of Havells products is driven by consumer blow overing and power availability. Over the last four years, the top players in domestic electrical consumer goods industry have demonstrated strong revenue growth of 15-18%, driven by rising income levels, increasing urbanization, and greater rural electrification.Further, with standards of living improving and consumer focus increasing on saving energy, the demand for quality products has been reporting strong growth. The trend is expected to sustain, with the main beneficiaries beingness companies with established brands and product attributes that stand out in an increasingly cluttered market, high quality standards that neutralize competition from unorganized-sector players, and extensive dis tribution ne devilrks that enable them to reach the high growth centres in Tier-II and Tier-III cities. attached its established track record, Havells is in a kind position to capitalize on the sectors growth potential. We expect Havells to post a net profit CAGR of around 11% between 2009-10 and 2012-13(E) on a standalone basis. Major clients of Havells 1. 4 PRODUCT PROFILE There are twelve perpendiculars of Havells they are as follows 1. DP- Domestic product- (Miniature overlap ledgeman ) 2. IP- Industrial products- (Moulded baptistery dress circle Breaker ) 3. Switches (Modular )- Crabtree 4. Switches (Modular )- Havells 5. Motorts- Industrial 6. CFLs-( Compact Flurosent Light )There are various types of CFLs they are as follows blueprint, Spiral, high spue, T-2 Spiral, G24 Base 7. master anchor Luminous 8. Consumers Luminous 9. Fans- There are various types of CFLs they are as follows dishearten Fans, Wall mount, Ceiling Fans, Exhaust Fans, Pedestal Fans 10. Geysers 11. Wires 12. Cables- There are various types of Cables they are as follows Flat Cables, Co-axial TV Cables, recollect Switch Board Cables, Multi Core Round Products expression Circuit security Miniature Circuit Breaker o Miniature Circuit Breaker (MCB) o Isolator o Changeover Switch Residual Current Circuit Breaker (RCCB) o RCBO o Distribution Board (DB) o indicant Light Industrial Circuit Protection o Air Circuit Breaker o MCCB o Panel Board system o Changeover Switch o By-pass Changeover Switch o incubus Changeover Switch o self-activating Transfer Switch o Switch Disconnector o Control Gear o Switch Disconnector Fuse o Fuse Switch and Switch Fuse o domiciliate System o Fuse Holder o Nylon Fuse Base o Fuse Link and Fuse Base Motors Foot come Flange Motor. o Foot Mounting o Flange Motor o Foot Cum Flange o Inverter Duty Motors with agonistic Cooling o Crane Duty Motors o Brake Motors mean(prenominal) Duty o weighted Duty o Super Heavy Duty o Agriculture Duty o Motor ro leplay Capacitors Lighting oLED Lighting o Consumer Lighting o Commercial Lighting o Down Lighter o Landscape Bunker Lighting o Industrial Lighting o Area Lighting o Road Lighting o Specialty Lamps o Accessories o tune Lighting CFL Indias First HPF Green CFL. o come out o Non Retrofit o Higher range of mountains o Liliput o FPL Water pot o Instantaneous Water Heater o Electric terminal Water Heater Cables and Wires o Power Cables Aluminum Control Cables fuzz o Copper Flexible Cables Fans Havells Ceiling Fans. o Ceiling Fans o Table Fans o Wall Mounting Fans o Pedestal Fans o Air Circulator Fans o Ventilating Fans 3. 9 Modular Plate Switches o Havells Modular Switches o Crabtree Modular Switches Capacitors Havells started manufacturing of its new range of products Capacitors in February 2007 Havells Capacitors are intentional and fabricate using S3 applied science. It encompenses product with triple shield with antitheticial disconnector in the event of any fault within due to environmental compatibility.Automatic controlled vacuum potting of Element Modules ensures fault remains localized. and protects the installation in break of hazards Advance technologies adopted in our Capacitors offer you unmatched safety and nifty performance under Indian conditions benefiting you month after month and every year from now on Figure Capacitors 1. 5 adversaryS PROFILE circuit PROTECTION DEVICES BUILDING CIRCUIT PROTECTION rivalS short letter I. Havells II. Legrand III. Indo Asian IV. Schneider INDUSTRIAL CIRCUIT PROTECTION COMPETITORS role I. L II. Osram III. Schneider IV.Havells POWER CABLE COMPETITORS POSITION I. Polycab II. Havells III. Gloster WIRES COMPETITORS POSITION I. Finolex II. Havells III. Anchor IV. FANS COMPETITORS POSITION I. Crompton Greaves II. Orient III. Usha IV. Bajaj V. Havells ENGERY SAVINGS LAMP COMPETITORS POSITION I. Phillips II. Havells III. Osram LIGHTING FIXTURES COMPETITORS POSITION I. Phillips II. Bajaj III. Crompton Greav es IV. Havells Fig ORGANIZATION CHART interpretation OF ORGANIZATION STRUCTURE ?Havells India Ltd has straight line- functional structure. ? Qimat Rai Gupta is chairman and Managing Director of Havells India Ltd. Directors, emergence tosss, National product heads have to report Managing director. ?There are 12 different products of Havells and there are 12 different Branch Heads as show in organisation chart. ?Product Heads, Ass. Managers, Senior Sales executive, Sales Executive, they have to report their detective Branch Heads as shown in organization chart. ? Accounts Executive have to report commercial Head and commercial head have to report Branch Head. ?Similarly profit Executive has to report inspection and repair Head and service head have to report their respective Branch Heads as shown in rganization chart. Work culture at Havells QRG is ceaselessly applying modern management techniques such as Kaizen to enable employees to improve their day to day functioning in sm all steps, one at a time. QRG has also implemented Japanese version of 5S which stands for a place for everything and everything in its place. The company has Introduced these techniques as it firmly believes that small changes add up to large results and the only way for a corporation to grow, is to make its people grow.The Group is driven by qualified and experienced professionals backed by a work force of over 4000 employees. all(a) branches and manufacturing facilities are computerized and networked with each other. An open door policy at all levels encourages employees to be participated, innovative and creative. Empowering employees helps the organization in harnessing individual talents to the fullest. Emphasis is laid on building team spirit which helps employees to realize collective potential. Manufacturing Plants Powerful trends are shaping up industry for the 21st century.Because of rapid spread of advanced technologies complexity of work is increasing almost daily. Wit h the state of the art equipments and manufacturing facilities, QRG group is helping to boost safety in employments from the factory to the offices, domestic buildings to commercial plazas. All the manufacturing units are probably supervised and controlled by technocrats and industry specialists. The group has easy managed, well equipped tool rooms with machines like CCV Line, CNC Machines, EDM Wire Cut, Spark eroding Machines, Lathes and Surface Grinders.Our strategic alliances with some of the leading engineering sciencecorporations in the world of electrical engineering, ensure constant access to the latest maturements in the international markets, which are then adapted to the tough tropical conditions. Our manufacturing units are fully equipped with the latest and most sophisticated facilities in India. And in the hands of our highly qualified technical experts, this results in some of the most advanced product development in the country Location Branch offices / zonal off ices / manufacturing plants Haridwar, Uttaranchal Products fabricate Fans and CFLs Baddi, Himanchal Pradesh Products fabricate MCBs, CFLs and Switches Samepur Badli, Delhi Products manufactured MCBs, ELCBs and DBs Tilak Nagar, Delhi Products manufactured Energy Meters NOIDA, UP Product manufactured Fans Alwar, Rajasthan Products manufactured Cables & Wires Faridabad, Haryana Products manufactured CFLs and Industrial Products. Gurgaon, Haryana Luminaries and Lighting fixtures Jalandhar Products manufactured MCBs, ELCBs, DBs, Wires and Industrial Switchgear Gurgaon, Haryana Products manufactured Modular Plate Switches & Accessories . organize ANALYSIS Opportunities, and Threats involved in a project or in a business venture. It involves Specifying the objective of the business venture or project and targeting the internal and External factors those are favorable and unfavorable to achieving that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT Analysis may be in bodilyd into the strategic preparation model. strategic Planning, including SWOT and SCAN analysis, has been the subject of much research. Strengths attributes of the person or company those are helpful to achieving the objective. Weaknesses attributes of the person or company those are harmful to achieving the objective. Opportunities external conditions those are helpful to achieving the objective. Threats external conditions which could do alter to the objective. Identification of SWOTs is essential because subsequent steps in the process of mean for achievement of the selected objective may be derived from the SWOTs. The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the companys unique value chain.SWOT analysis groups key pieces of information into two main categories Internal factors The strengths and weaknesses internal to the or ganization. External factors The opportunities and threats presented by the external environment to the organization STRENGTHS Foreign Joint Venture & International approvals World class infrastructure Low cost of Production due to the easy availability of raw textiles and cheap labour Leveraging upon Sylvinia network (10000 distributors). Global presence (Latin America, UK, Europe) Largest manufacturing capacity in the country for motors R & D facilitiesWEAKNESS High power consumption and requirement of continous power supply Season demand of the production due to weather condition change magnitude cost of production due to increase in coal prices globally small Market share Slowdown of real estates Delays in implementation of power projects OPPORTUNITIES Global opportunities. Growing middle class There has been increase in the purchasing power of emerging middle-class with rise in salaries and wages, which results in rising demand for better quality of bread and butter that further necessitates infrastructure development and hence increase the demand for CFL. Technological changes The CFL industry has made tremendous strides in technological up gradation and preoccupation of latest technology. At present ninety three per cent of the sum native capacity in the industry is based on the capacity is based on old wet and semi-dry process technology. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save material substantially and hence reduced the cost of production. Changing dynamics due to increased FDI inflows Shift of public perception on the product from being a luxury item to necessity. Acquisition of Chinese firms for low cost manufacturing. Vertical integration into Havells retail outlets. Leveraging upon motor business in India THREATS Unorganized market. International policies on environment of highly energy efficient, low or zero noise environment efficient product misrelated diversific ation Global slowdown effected business adversely as is largely dependent on Sylvinia BCG matrix BOSTON CONSULTING GROUP (BCG) intercellular substance is developed by BRUCE HENDERSON Of the BOSTON CONSULTING GROUP IN THE EARLY 1970s. fit in to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and congenator market share. Market share is the percentageage of the total market that is being serviced by your company, striped any in revenue terms or unit volume terms. relational MARKET SHARE RMS = Business unit sales this year conduct rival sales this year The higher your market share, the higher affinity of the market you control. Market growth is used as a measure of a markets attractiveness. MARKET GROWTH RATEMGR = individual(a) sales this year individual sales last year single(a) sales last year Markets experiencing high growth are ones where the total market share available is expanding, and theres ple nty of prospect for everyone to make property. It is a portfolio planning model which is based on the remark that a companys business units can be classified in to four categories I. Stars Question marks II. Cash cows III. Dogs It is based on the combination of market growth and market share relative to the next best challenger.The matrix comprises of four quadrants each describing the size and position of the strategic business unit owned by an organization. On the vertical axis is the Market Growth rate of the market in which the business carrys. A market growth rate above 10 percent is considered to be high. On the naiant axis is the Relative Market Share. It refers to the Strategic Business Units market share as compared to the firm, which is its largest competitor in the segment under consideration. The relative market share serves a measure of the companys strength in the market segment.The two axes are divided into high & low. The growth matrix is divided into four cell s each indicating a different type of business profile. QUESTION tag These are Businesses that operate in high- growth markets but have low relative market shares. A question mark requires a upsurge of cash because the company has to spend property on plant, equipment and personnel to go by up with the fast growing market and because it wants to overtake the market leader. The company has to think hard about whether to keep on investing money into this business or put an end.Strategic options for question marks include.. I. Market penetration II. Market development III. Product development IV. Which are all intensive strategies or divestment? STARS It is a market leader in a high growth market. A star does not necessarily scram a positive cash flow for the company. The company must spend substantial funds to keep up with the high market growth and to fight off competitor attacks. A star is a potential business which has the competitive advantage to be a market leader in an indu stry that is growing fast. Strategic options for stars include.I. Integration forward, backward and horizontal II. Market penetration III. Market development IV. Product development V. Joint ventures CASH COWS Stars with a falling growth rate that still have the largest relative market share and produce a big bucks of cash for the company is called a cash cow. The company does not have to finance expansion because the markets growth rate has slowed because the business is the market leader it enjoys economies of scale and higher profit margins. The company uses its cash cows to stand bills and support other business. ). Strong position-strategic options are I. Product development II. Concentric diversification b). Weak position - strategic options are I. downsizing II. Divestment DOGS Businesses that have weak market shares in low-growth markets are in the furrow category. The company should consider whether they are expecting a turn around in the market growth rate or a new hap for market leadership else they should divest this business. It would be fruitless to spend and money on this matrix business. Strategic options for Dogs include I.Retrenchment (if it is believed that it could be revitalized) II. riddance III. Divestment (if you can realise someone to steal ) Successful products may well move from question mark through star to Cash alarm and finally to Dog. Less successful products that never gain market position will move straight from question mark to dog BCG MATRIX IN HAVELLS- Indian Operations of the Company are divided into 4 key segments Switchgear Havells is the largest manufacturers of MCBs, RCCBs, and distribution boards in India . With the market share of around 25% in the market for MCBs.In FY08, switchgear contributed 25% at Rs. 5420 million to its overall revenue. This segment is the most profitable one with operating margins to the tune of 33% in the FY08. The Company currently exports MCBs to over countries, including the qua lity conscious European countries. The Company is the number one player in domestic switchboards with more than 20% market share and is the 4th largest in Industrial switch boards. With continued investment in power sector they expect Company to grow at 15% CAGR over FY08-FY12. Switch Gear region had EBIT margins of 32% for Q3FY09.They expect margins in this business will remain unchangeable above 30% over long term. Cable and Wires The cable & wire segment generated Rs 2133 million in the Q3FY09 registering y-o-y de-growth of 14% EBIT margins fell from 9. 5% 9M YTD FY08 to 5. 4% in FY09. Fall in revenues was registered due to drop in prices of cables and wires and huge margin drop in was due adjustment in take stock due to massive reduction in prices of Copper in this Quarter. Company had negative EBIT of Rs. -76 million on revenues of Rs. 2133 million for Q3.The Company is recognized as quality manufacturers of cable & wires and offers a complete range of low and high voltage P VC and XLPE cables, besides, domestic/FRLS wires, Co-Axial TV and telephone cables. Lightning and Fixtures During FY08, the turnover of the course of instruction grew at 25% y-o-y to Rs 2900 million, first quarter revenues stood at 650 million, 11% up from same period of previous year. The Company generated operating profit of Rs. xcl million with 26. 7% margins as against 12. 3% margin last year. In this division, the Company expanded its CFL capacity to become the largest CFL manufacturer in the country.They expect Company to aggressively pitch this segment by launching a range of products in lightings and fixtures as it brings products from the stable of Sylvania into the Indian markets. Currently 60% of the CFL and only 30% of the fixtures market is organized. Their estimates put Lightings and Fixtures business growth at 25% CAGR FY10E FY12E as industrial growth is likely to pick up. Electrical Consumer Deliverables & Others Havells also offers products like electric fans, mete rs and Crabtree brand bath fittings which are largely consumer products and add diversity to Havells product profile.With strong brand image among domestic consumers, Havells may launch new products like Geysers in this segment. They believe the electric fan segment, which contributes 10% to consolidated revenues, and generates operating margins in excess of 20%, is the key focus segment. The Company has increased its share form 3% to 13% in the organized fan market of INR 17 bn form FY 05 to FY08 PESTLE ANALYSIS (PEST analysis) Political (Global, national, regional, local community and trends) Economic (world, national and local trends) Social (development in society culture, behaviour, expectations).Technological (developments computer hardware, software, applications) statutory (world/ EU/ national legislation). Environmental (global / EU/ National issues). PESTLE Analysis is a simple technique which can be used in a fairly sophisticated way, Particularly when it is combined wi th Risk Analysis, SWOT Analysis, an Urgency/Impotency Grid and expert knowledge about the organisation and its external factors. PESTLE Analysis is normally used to help organisations identify and understand the external environment in which they operate and how it will operate in the future. SOCIAL FACTORHavell acquires companies and builds internally, havells Group never loses sight of its responsibility as a good corporate citizen. Havells believes that serving people with ungenerous or no means is the duty of every well-to-do person. It consistently puts that philosophy into action and has initiated several projects for social causes. This has greatly increased the number of children attending school regularly and also alleviates hunger. Corporate Social state (CSR) at havells portrays the deep symbiotic relationship that the group enjoys with the communities it is engaged with.As a responsible corporate citizen, we try to contribute for social and environmental causes on a re gular basis. Kitchen with Modern Facilities The company has acquired land for constructing a large kitchen with all the modern facilities to serve the meal to around 40000 to 50000 students. middle Day Meal Being a responsible and concerned corporate citizen, QRG also undertakes other welfare activities in and around its plant locations, In Alwar region the company is providing mid-day meal close to 15000 students of primary schools. Check-up Camps Blood bequest CampsContribution towards Tsunami and Kargil National Relief Fund. TECHNOLOGICAL FACTOR Research and ontogeny Innovation is the hallmark of every vital development at havells Group. sunrise(prenominal) ideas, inventions deepen scientific knowledge and give its work force a new impetus towards technical progress. Havellss technological strengths and its endeavour towards continuous research & development have allowed it to fulfils its responsibilities towards its customers. The responsibility of providing its customers th e best products and zero brand services to enable them to be comfortable and secure in manipulation of electricity.Havells has recently invested 50 crores in the QRG Center for Research and Innovation, set-up at the companys Head Office premises in Noida, U. P. The objective of this centre is to provide the a priori & experimental foundations for all segments of electrical engineering. The centre closely cooperates with the various departments so as to provide the best and the latest in terms of technology and design. Quality Control The essence of quality is closely wrapped in the way we think, plan and work. It finds its true expression when we extend beyond ourselves to eliminate our customers expectations.To deliver products those are safer, faster and simply better. separately time, every time. Building customer confidence through teamwork is a top priority to provide a wide variety of products and services. Realising and respecting the basic needs of customers to feel mor e secure, weve committed ourselves to make our products better, safer and smarter than what he or she is looking for for. Thats a passion that began 30 years ago and thats how it continues to be even today. Our customers rely on us and it is our responsibility to give them the very best.All our products are as per IEC standards. QRG has a simple rule on quality. If it doesnt pass off customer expectation, its not quality ECONOMIC FACTOR The Havells Group defines corporate governance strategically, which encompasses not only what we do as a company with our profits, but also how we make them. It goes beyond philanthropy and compliance and addresses how our company manages its economic, social, and environmental impacts, as well as its relationships in all key spheres of influence the workplace, the marketplace, the supply chain, the community, and the public policy realm.We as a company have been in lead in offering a portfolio of eco responsible products and services that deliver powerful, sustainable, energy-efficient solutions that dont compromise on capacity and security. Our eco responsibility initiative also focuses on how we run our business, and includes efforts to develop an preference-energy scheme, and thus reduce the environmental impact of our operations. We strive to bring corporate responsibility to every aspect of our business. Were committed to managing a responsible and several(a) supply chain thats consistent with our high standards for environmental and business practices.Breaking down the barriers that constrain construct is a challenge we have readily embraced right from the start. Our ability to build communities and promote the exchange of ideas through assistive technologies, participation programs, and standardization is transforming the way people experience our products. We offer our customers holistic energy-efficient solutions, enabling them to not only save money and protect their capital investment, but also move their en ergy usage and protect the environment, thus fulfilling our CSR responsibility of sustenance of depleting environmental resources.CORPORATE GOVERNANCE AND ETHICS An implicit sense of ethical business conduct has been the cornerstone of the havells way on corporate governance. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations add-on the traditional values on which our group companies have been shaped. This is what we have endeavored to do in the 50 years of our existence. Our values of understanding, trust, integrity and ethics have served us in good stead.Corporate governance as salutary by our Group translates into being fair and civic-minded, fulfilling our duties to the entire spectrum of stakeholders, and, most importantly, making integrity an article of faith across all our operations. The groups adherence to ethical business conduct is rooted in the vision of its Founder Mr Qimat Rai Gupta. We started on sound and straightforward business principles, considering the interests of our shareholders and welfare of our employees as foundation of our long term success.The leadership with trust philosophy that has come to play such a vital role in how our customers perceive us is all the more remarkable given the climate of unparalleled public distrust of people in positions of authority today both in business and politics. Employee dealing Our people are the key to our success. Their skills, knowledge, ideas and enthusiasm drive our business. We have high-quality, diverse workforce and employees who fulfill their potential.We have achieved this by giving them development and development opportunities along with competitive compensation and benefits that appropriately reward performance We croak widely with employees to demonstrate how their efforts contribute to our success and to listen to their concerns. We also encourage them to align with our vision. We are committed to open co mmunications and a workplace where everyones voice is heard. We use several channels to communicate with employees, including an internal net portal and company website along with communication sessions with the top management of the company.These sessions provide assessment of employee satisfaction and are inputs for business planning, management decision-making and company strategy development. They also help employees implement company policies, meet high standards of conduct and ensure their behavior reflects company values and policies. We seek to meet leading health, safety and wellness standards to enhance our business performance while optimizing employee health. Our ease policies are designed to continually reduce the risk of occupational fault and illness while promoting employee health and wellbeing.We wish to be a company that is known for its leadership in corporate ethics and responsibility. A company where employees are proud to work, and customers, partners and su ppliers want to do business with. 5. SPECIAL job MARKET ANALYSIS ON PURCHASING PATTERN OF HAVELLS DEALER heap OBJECTIVE OF THE STUDY ?To study the Purchasing Pattern of Dealers of Havells product ? To find how the product is accepted in the market. ? To know the perception of customer regarding the quality of Havells. ? To know how satisfied are Dealers with the products they purchase and the services provided by the companyRESEARCH METHODOLOGY Research refers to a search for knowledge. It is a taxonomic way of collecting and recording the facts in the form of numerical selective information relevant to the formulated problems and arriving at certain conclusions over the problem based on collected data. Thus formulation of the problem is the first and maiden step in the research process followed by the collection, recording, tabulation, analysis and drawing off the conclusions. The problem formulation starts with defining the problems or number of problems in the functional area .To detect the functional area and locate the exact problem is most important part of any research as the whole research is based on the problem. Research extends knowledge of human being, social life and environment. It unravels the mysteries of nature. It verifies and tests existing facts and theory and these help in improving our knowledge and ability to handle situation and events. The questionnaire method is closed-ended questionnaire. It is a structured ones with four alternative responses from which respondent can choose. They contain standardized answers and they are simple to give out and easy to compile and analyse.SAMPLING Sampling is the selection of some of some part of an aggregate or sum of money on the basis of which a judgment or inference about the aggregate or totality is made. In briefly, sample is a smaller representation of whole. taste SIZE 30 SAMPLE UNITS Electrical Dealers at Bangalore (Chikpet, Balepet, B. V. K Iyengar Road, R. T. Street) SOURCES OF ent ropy COLLECTION Data serves as the basis or raw materials for analysis. The relevance, accuracy, adequacy and reliability of data determine the quality of the findings of the study.Data collection includes host the relevant information from different sources of data pertaining to the study under consideration. aboriginal DATA Primary date has been collected through- I. OBSERVATION hither we have observed retailers About their purchasing behaviors . II. SURVEYS In Survey We have used Questionnaire Method, few Questionnaires have been asked to the Dealers. SECONDARY DATA Secondary data was taken mainly from the internet and the URL are as follows- I. www. havells. com II. www. wikipedia. com III. www. scribd. com IV. www. icra. com while OF THE STUDY- The study was carried out for a period of 20 years . DEALER SURVEY 1. Have you heard about Havells ? a. Yes b. No 2. Do you taint Havells product? a. Yes b. No If No why .? 3. How many different products of Havells you know? a. 1- 2 b. 3-5 c. 6-8 d. 9-12 4. What are the Havells Modular Switches you are dealing with? a. Corel clench b. Pearlz Range c. Oro Range 5. What are the Havells CFL you are dealing with? a. Normal b, Spiral c. Higher Range d. T-5 6. What are the Copper Flexible Cables you deal with? a. Flat Cables b.Co-axial TV Cables c. earpiece Switch Board Cables d. Multi Core Round 7. What are the Havells IP you deal with? a. Industrial Switch Gears b. Meters c. Capacitors d. Motors 8. What are the Havells DP you deal with ? a. MCB b. RCCB c. DB 9. Which Havells Fans do customers prefer the most ? a. Ceiling Fans b. Table Fans c. Wall mounted d. Exhaust Fans 10. How Effective are the promotional activities of Havells ? a. Very goodness b. peachy c. Average d. Poor e. Very Bad 11. What are the other brands they are dealing with ? a. IP . .. b. DP . .. . c. Switches .. . d. Fans . .. . .. e. CFL . .. . f. Wires . . . . g. Cables . . . .. h. Geysers . . . . i. Motors .. .. . j. Professional Luminous .. . .. .. k. Consumer Luminous .. .. . 12. Which Range is highest sold in your counter ? a. Lights b. Fans c. Industrial Circuit Protection d. Building CP 13. How do you rate Havells Sales staff support ? a. Very right b. Good. c. Average d. Poor. e. Very Bad 4. What type of products do you want to sell ? a. Quality Products b. Guarantee Products c. Less Price Products d. Good Service Products 15. Which Company Products you debase the most ? a. Philips b. Havells c. Anchor d. Crompton Greaves 16. Do you get dubiousness for our products from customers ? a. Yes b. No 17. What is the proportionate ratio of Havells sales in your counter with respect to other brands you deal ? 18. How do you rate Havells in dealing with commercial terms? a. Very Good b. Good c. Average d. Poor 19. How do you rate the after sale service of Havells company ? . Very Good b. Good c. Average d . Poor 20. How Satisfied are you with Havells ? a. potently satisfied b. Satisfied c. Dissatisfied S UGGESTIONS - Data Analysis and Interpretation 1. Have you heard about Havells? The Dealers have heard about Havells 2. Do you buy Havells product? All the Dealers buy Havells product (Since Dealers survey was restricted to the Dealers who buy Havells product) 3. How many different products of Havells you buy ? INTERPRETATION Most of Dealers buy products in the range of 3-5, which includes Lights, Circuit Protection and Switches and Fans 4.What are the Havells Modular Switches you are dealing with? Coral Range5 Pearlz Range2 Oro Range1 INTERPRETATION Most of the Dealers deal with Coral switches, few with Pearlz 5. What are the Havells CFL you are dealing with? Normal8 Spiral4 Higher Range2 T-2 Spiral3 G 24 Base1 INTERPRETATION Normal Range CFL is highest sold in there counter when compared to other range of CFLS 6. What are the Copper Flexible Cables you deal with ? Flat CablesNil Coaxial1 Telephone Switch boardNil Multi Core Round2 INTERPRETATION Polycab and Finolex rule the marke t in Multic core round and Coaxial cables . What are the Havells IP you deal with ? Industrial Switch Gears8 Meters3 Capacitors2 Motors2 INTERPRETATION In Industrial Circuit Protection , Most of the Dealers deal with Industrial Switch Gears and rest of them have equal share 8. What are the Havells DP you deal with ? MCB8 RCCB8 DB2 9. Which Havells Fans do customes prefer the most ? Ceiling Fans7 Table Fans7 Wall Mounted7 Exhaust Fans4 10. How Effective are the promotional activities of Havells ? Very Good2 Good16 Average2 PoorNIL 11. What are the other brands they are dealing with other than Havells ? a.IP b. DP c. Switches d. Fans e. CFL f. Wires h. Geysers 12. Which Range is highest sold in your counter ? Lights4 Fans7 Industrial Circuit Protection4 Building CP3 13. How do you rate Havells Sales staff support ? Very GoodNil Good7 Average6 Poor4 14. What type of products do you want to sell ? Quality Products12 Guarantee Products10 Less Price5 Good Service Products10 INTERPRETATIO N Most the Dealers want to purchase Quality and Guaranteed Products 15. Which Company Products you buy the most ? 16. Do you get enquiry for our products from customers ? Yes30 No3 17.What is the proportionate ratio of Havells sales in your counter with respect to other brands you deal with? 18. How do you rate Havells in dealing with commercial terms? Very GoodNil Good10 Average6 Poor5 19. How do you rate the after sale service of Havells company? Very GoodNil Good11 Average7 Poor8 20. How Satisfied are you with Havells? Strongly SatisfiedNil Satisfied15 Dissatisfied2 FINDINGS 1. More than 70% of the Dealers are interchange Havells products 2. 80% of the Dealers think that the price of the Havells is higher when compared to other company. 3. 0 % of the Dealers are satisfied with Havells and 20% are dissatisfied. 4. 60% of the Dealers told that the sales of Havells increased from before. 5. Out of all categories of Havells Products MCB is the highest selling in most of the stores . 6. 60% of the Dealers told that they will prefer selling Havells because customers are demanding it more. 7. 70% of the Dealers are satisfied with the delivery services the Havells but 20 % of the Dealers are not satisfied with the delivery services. 8. Replacement of Havells Products when compared to other company products takes longer duration.